Sykes Seafood sales soar, but inflation eats into profits

Sykes Seafood has reported a £100m plus rise in turnover in the last financial year.

But inflation meant that profits fell sharply for the UK-based company during the period ended 1 April 2023,

Based in Warrington, Cheshire, Sykes is now one of the UK’s largest seafood companies, supplying a wide range of farmed and wild caught fish.

It grew impressively during the period, acquiring the Big Prawn Co (taking the business out of administration) and Ruskim Seafood of Shropshire. Both have been fully integrated into the main business.

Posted on Companies House this week, Sykes’ accounts show that turnover rose from £150m during the previous financial year to £251.5m.

Pre-tax profits fell, however, from £5m to £1.4m. The company said this was due to inflationary pressures and higher interest rates.

Inflation has been a major factor in reducing profits at two other large seafood businesses, Young’s Seafood and the Hilton group.

Sykes said: “The company has grown significantly in the year, both organically and via acquisition.

“The year benefits from the full-year effect of the Ruskim Seafood acquisition in October 2021 and the acquisition of The Big Prawn Co in January 2023.

“The operations of the acquired entities have been successfully integrated into the Sykes business post-year end and our distribution network consolidated into our new purpose-built, state-of-the-art UK distribution hub in Warrington.

“Underlying EBITDA has increased 42%, however, inflationary pressures and increased interest rates have lowered reported profit before taxation.

Sykes added: “The company continues to monitor and carefully navigate in the volatility in the global political and economic environment, and all factors that could impact on the company, in order to take prompt mitigating actions, if necessary.”