Trout farm firm plans to expand to drive return to profit in 2012

Fish processing firm Dawnfresh has bought additional sites for its trout farms and recruited a new management team in an attempt to get back into profit following the 2008 takeover of Scot Trout.

The firm, chaired and majority owned by Alastair Salvesen, made pre-tax losses of £6.9 million in the year to 31 March.

In the latest accounts for the Uddingston-based company, Salvesen described the financial results as “very disappointing”, although the bottom line was an improvement on the £9m it lost in the previous year.

He said the firm was under pressure from rising costs, the “extremely competitive” retail market, and the effects of two successive cold winters on rates of growth and mortality in its fish stocks.

Salvesen said a strategic review of the enlarged business following the acquisition of Scot Trout found that significant price increases were necessary. These were agreed with retailers in the latter part of 2010 but led to a fall in volumes sold.

The group’s turnover was down slightly on the previous year at £48.5m. It paid £3.3m for “key sites” and plans to invest further to bring its trout farms up to higher standards.

Salvesen, who led a management buy-out of Dawnfresh in 1983 and built up the company through a series of acquisitions, said that under a new senior management team the firm expects “significantly improved” results in the current year.

“The focus on reducing costs and expanding our product offerings has positioned the business to return to profit in 2012,” he added.