Mørenot Aquaculture aims to cut costs

Industry supplier Mørenot Aquaculture has embarked on a cost reduction programme after announcing higher losses for 2022.

The company, which has bases in Scotland, saw its turnover dip from NOK 532.2m (£318m) in 2021 to NOK 478.2m (£35m) last year. This led to a higher operating loss or EBIT of NOK 58.5m (£4.2m) against a loss of NOK 13.8m (around £1m) in 2021.

The pre-tax loss was NOK 73.2m (£5.3m) compared with NOK 28.6m 12 months earlier.

The company said in its annual report that the board had decided at the end of last year to carry out a reorganisation of its business. The aim was  to significantly reduce cost levels within the fish farming division.

That work is now ongoing, the report said, and is likely to include the merging of a number of functions and adding activities from other group companies.

Mørenot Aquaculture was acquired by the Icelandic company Hampidjan in November last year for around £90m.

The two are broadly similar businesses – both manufacture, sell and service fishing gear and equipment for fish farming as well as producing high performance ropes for the oil industry and offshore wind turbine installations.

However, their product ranges are different in other areas and the acquisition announcement said the companies complement each other in several areas.

At the time, Mørenot and Hampidjan said the consolidation would enable significant synergy potential due to increased product availability, optimisation of production, integration and a stronger position within core markets.