Profits at the firm which runs Caledonian MacBrayne ferries were cut in half after losing a contract to run services to Orkney and Shetland.
David Macbrayne saw pre-tax profits fall to £2million in the year to the end of March 2013 from £4million in the prior year. Revenues also fell from £201.6million to £157million.
The Scottish Government-owned ferry firm lost a £40million contract for ferry services to Orkney and Shetland to private firm Serco after its NorthLink subsidiary failed to retain the service in 2012.
Group chairman, David McGibbon, who took over from Peter Timms in 2012, said the firm had experienced “a year of major milestones”.
“Last May we introduced our first new service for 20 years between Ardrossan and Campbeltown and followed it up with a new winter service linking Lochboisdale in South Uist and Mallaig both introduced directly after consultation with these communities.”
The firm’s accounts revealed that the company’s chief executive, Martin Dorchester, was paid £34,000 in the period after being appointed in November 2012. His predecessor, Archie Robertson, had received £244,000 in the year, including a £28,000 pension contribution. This was an increase from £189,000 in 2011/12. Mr Robertson resigned in August 2012.
The figures showed that government funding for the group fell to £87million in the year from £121.8million the year before.
Calmac said it maintained 1,300 employees – the same as the prior year – and has been serving the Highlands and Islands off the west coast for more than 160 years.