Loch Duart expansion plans hit 2024 profits

Independent salmon farmer Loch Duart Ltd saw a big drop in profits for the year to 31 March 2024 – but the company says this reflects the cost of its plans for growth.

Turnover for the Scottish-based company was £43.08m (2023: £52.5m) and operating profit was down to £1.29m from the previous year’s £4.67m.

The company’s accounting profit was £710,457 compared with £3.39m in 2023. The company said in its annual report that this was an anticipated decrease “…as a consequence of the plan to revise site structures in support of future growth.”

Interest payable and similar expenses went up to £284,585 (2023: £157,944). Group net assets were also up, from £38.3m in 2023 to £46.7m this year.

Directors’ remuneration was up to £786,687 (2023: £513,722) and the highest paid director received £320,404 not including pension contributions.

The directors said: “Focus on the year has been addressing the increasing biological challenges created by raising water temperatures and the company’s approach to farming, particularly farm size, allows it to apply less intensive solutions which put less strain on fish.

“The company continues to work on increasing production through new sites and to develop the potential of existing sites. Investments in infrastructure and operational capacity were made during the year and following the year end.”

Loch Duart is also “exploring” the potential for reopening operations in Canada. The company had planned to open three salmon farming sites in Canada more than 10 years ago, but its proposals were blocked by the Canadian government.