Arbroath’s RR Spink Invests For GrowthNeil Hardie
Arbroath-based fish firm RR Spink & Sons saw its sales rise by 24% last year after substantial investment in its production facilities.
The firm, which was founded in 1717 and specialises in smoked fish, is part of the Dawnfresh group owned by the Salvesen family.
Newly filed company accounts show RR Spink & Sons (Arbroath) Limited generated revenues of £31.7 million for the year ending March 31 2019, a rise of more than £6m from 2018
However, the firm’s pre-tax loss increased from £298,000 in 2018 to £752,000 last year.
In his strategic report, Alastair Salvesen said the loss was due to an increasing cost base as the company “prepared for growth”.
He said: “The focus for the business during the year was the onboarding of new business with a key UK retailer.
“Significant investment was undertaken on site to generate additional production capacity whilst also seeking to maximise operational efficiency.
“Focus remains on maintaining and improving quality standards.
“Turnover increased by 24% in the year. Sales increased significantly during the period with no material loss of business to the existing customer base.
“Full year net loss has increased from the prior year. The overall cost base increased within the period as the company prepared for growth while the benefit from additional volume was only in the second half of the year.”
Mr Salvesen said the full benefits of the new business will translate to stronger bottom line results moving forward.
He added: “New product development remains a key focus for the business with a number of new lines added to the product portfolio.
“The companies continues to invest in its production facilities with the aim of driving greater automation and operational efficiency within our production and packing facilities.”
The firm said it was satisfied in the progress being made across a series of key performance indicators, including productivity, yields, revenues, staff attendance and health and safety.
Separately filed accounts for the wider Dawnfresh group, show sales increased from £64m to £73m for the year ending March 31.
Pre-tax losses increased from £7.3m to £8.9m over the period.
Dawnfresh said its £8m capital investment during the year was three to four times its norm.