UK: Young's Seafood sees benefits of "simplification"
Youngs has announced its annual results
Young's Seafood said that profitability improved during 2013 thanks to a "corporate simplification project" and rising sales.
The company said that operating profit in the 12 months to 30 September rose to GBP20.4m. Changes to the firm's financial calendar mean that the prior fiscal was only nine-months long. During the 2012 financial year operating profit totalled just GBP7m.
2013 EBITDA totalled GBP31.8m, up from GBP17.4m in the nine month period of 2012. This, the company said, represented an increase in margins to 11.0% for 2013, up from 9.3% in 2012.
"This improvement reflects underlying business progress and was achieved through comprehensive restructuring and operational rigour," Young's said. "The bottom line profit of the company also benefited from a number of intercompany transactions relating to the next phase of a corporate simplification project."
Sales during the 12 months rose to GBP582.7m, compared to GBP425m in the nine-months of 2012. Revenue gains were driven by a "strong" performance in chilled fish sales, the integration of trade from Ocean Pure Limited, previously Cumbrian Seafoods, and the introduction of various newly developed product lines such as Young's branded Gastro range.
Young’s Seafood Limited (“Young’s” or “the Company”) Progress achieved following successful consolidation and change programme Financial highlights
§ Increase in operating profit up to £20.4m for the 12 months to end September 2013, versus £7m in 2012 (2012 was a 9 month financial year) § Increase in turnover upto £582.7m for the 12 months to end September 2013, versus £425m in 2012 (2012 was a 9 month financial year)
§ Increase in EBITDA upto £31.8m for the 12 months to end September 2013, versus £17.4m in 2012 (2012 was a 9 month financial year)
§ Increase in margins to 11.0% for 2013, up from 9.3% in 2012
Young’s Seafood Limited, a leading UK processor of chilled and frozen, branded and own-label fish, today reports its results for the year to 30th September 2013. The results show improvements in sales, profit and margin and reflect the progress achieved by the Company following its recent (footprint) consolidation and change programme.
Young’s Seafood Limited’s turnover in the 12 month period was £582.7m (compared to turnover of £425.0m for the 9 month accounting period of 2012). This increase in turnover reflects strong performance in chilled fish sales, the integration of trade from Ocean Pure Limited (previously Cumbrian Seafoods) and the introduction of various newly developed product lines such as Young’s branded Gastro range.
Operating profit before exceptional operating costs and amortisation for the 12 month period was £20.4m and EBITDA £31.8m (compared to an operating profit of £7.0m and EBITDA of £17.4m for the 9 month period of 2012). This improvement reflects underlying business progress and was achieved through comprehensive restructuring and operational rigour. Gross margins increased to 11%, from 9.3% in 2012.
The bottom line profit of the company also benefitted from a number of intercompany transactions relating to the next phase of a corporate simplification project. This project re-aligns the reserves from other group undertakings with the trade which had previously transferred. These transactions are non-recurring and of a non-trading nature.
NB. The Company changed its year end in 2012 resulting in a 9 month accounting period from January to end September. The Company advises that care should be taken when comparing the results of the 9 month accounting period for 2012 with the 12 month accounting period for 2013.
Commenting on the 2013 results, the CEO of Young’s Seafood Limited, Leendert den Hollander, said:
“In 2011 we brought together the chilled and frozen business units as Young’s Seafood Limited and defined a strategy around encouraging consumers to eat responsibly sourced fish at least twice a week.”
“We have made considerable progress during 2013. Market conditions remain tough and adapting to changing retailer and consumer dynamics is crucial. We have gone through a comprehensive cost and footprint restructuring, fully integrating the production volume from acquisitions, and launched various new product lines to stimulate top line growth.”
“The Company’s relentless focus will remain on customer service, driving growth in close partnership with our customers, food integrity & ethical supply chains and insight driven innovation. The category has huge scope for growth as we inspire more and more people to eat fish more often.”
Some Key Facts
In 2011 Young’s Seafood Limited was created by putting together the chilled (The Seafood Company) and frozen Young’s businesses and creating a business with a portfolio covering chilled, frozen, branded and own label fish and seafood production. Together, as Young’s Seafood Limited, the Company is focussed on inspiring people to eat responsibly sourced fish two times a week, in line with Government guidance on healthy eating.
In May 2012 the Company acquired 100% of the issued share capital of Ocean Pure Ltd, a manufacturer of chilled seafood products formerly known as Cumbrian Seafoods, from the receiver.
A change programme to improve the overall performance of the Company, in challenging market conditions was subsequently implemented following a comprehensive review of operations to define the most robust operating model for the long term. The integration of production volume from Ocean Pure into Young’s Seafood Limited’s existing manufacturing sites, and the subsequent consolidation, have had a positive impact on the Company’s Turnover and overall performance.
James Hill is to take on the role of CEO for Young’s from 1st April, in addition to his role as CEO of parent company Findus Group.
Leendert den Hollander announced his resignation as CEO of Young’s in February 2014 having accepted a senior leadership role with a large FMCG organisation operating outside the fish category.
Original source: Young's Seafood
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