A Fraserburgh business thought to run the last fish cannery in the UK has raised £12.5million to fund its expansion.
International Fish Canners (IFC) and its sister company Nor-Sea Foods aim to use the bank loan to help it meet rising demand for mackerel, herring and sardines.
The finance package will be used to support the expansion of the firm’s facilities, and includes backing for an extension to its Nor-Sea factory in Fraserburgh to provide improved storage of chilled products plus an enlarged dispatch area.
The firm, which also has operations in Aberdeen, said the funds also “assists the continued employment” of the groups’ 550 employees.
Owned by the Aberdeenshire-based Clark family, the group produces for 40 brand names in 17 countries in addition to the catering sector, plus it continues to develop successful own brand products through the cannery as well as Nors-Sea, which specialises in smoked fish.
The group processes in the region of 18,000 tonnes of pelagic fish per year, most of this being mackerel form the Atlantic Ocean, but also herring and sardines.
The firm aims to capitalise on the resurgence in popularity of these fish as their Omega-3 oil content – double the popular alternatives of tuna and salmon – is being promoted as part of a healthy eating regime.
According to its latest accounts, the cannery made a small loss £610,497 to the year ended 31 March 2014, due mainly to the “largest capital spend” made on a new mackerel processing line. Turnover in the period fell about £2million to £12.5milion. Meanwhile, Nor-Sea turnover rose £2million to a “record” £28.2million, with a pre-tax profit of £933, 143.
The company changed its bank to HSBC for the package.
Francis Clark, Director of IFC and Nor-Sea said: “We are an ambitious business, looking to grow whilst maintaining the highest industry standards. An important part of our strategy is to have the right finance partner who appreciates our international presence and can help us grow, and HSBC is able to do that.”
John Caldwell, HSBC’s Relationship Director, Corporate Banking, Aberdeen said: “International Fish Canners and Nor-Sea recognise the importance of maintaining investment in their business. They are beacons for Scottish business with products that are seen and eaten around the world.”