The loss of a £600,000-plus annual subsidy from the Scottish Government tore a hole in the profits of Aberdeen firm Streamline Shipping Group (SSG) in 2014.
Accounts for the company show pre-tax profits fell to £2.22million last year, from £2.9million in 2013, despite a 15% rise in turnover to £42.5million.
A six-year public service obligation (PSO) contract for a “lifeline” container shipping service operated by SSG’s Shetland Line subsidiary between Aberdeen, Kirkwall and Lerwick ended last May.
It was not renewed and SSG’s 2014 accounts show a £226,842 government grant credit for the unexpired contract period, compared with £610,158 for the whole of 2013.
But the PSO ending did not stop Shetland Line running cargo services to the north isles.
And SSG owner Stuart Roberts said in his review of 2014 that a satisfactory overall financial performance showed the group had withstood the subsidy withdrawal.
He added: “Prospects for several of the market segments in which the company operates continue to offer potential for growth.
“Transport and forwarding operations continue to develop, while ships agency activity has proved resilient.”
SSG’s activities cover shipping, haulage, distribution, freight forwarding, ship agency and stevedoring services.
The accounts – released by Companies House yesterday – also show SSG employed 265 people on average last year, up from 214 in 2013.
Meanwhile, 2014 accounts for Aberdeen ship repair and maintenance specialist Dales Marine Services show profits soared to £5.67million, from £3.28million previously, after last year’s takeover of Grangemouth-based Forth Group.
Turnover grew by more than £12.3million to £36.34million.
Dales, which has operations in Aberdeen, Montrose, Leith, Grangemouth, Greenock and Troon, now claims the mantle of Scotland’s largest privately owned ship repairing company.