Cornelis Vrolijk's UK arm sees profit surge 19%

North Atlantic Holdings, the UK arm of Dutch pelagic giant Cornelis Vrolijk, posted an operating profit of €8 million ($9.3 million) in 2017, up 19 percent from €6.7 million ($7.8 million) in the previous year, on the back of strong fish prices and a brand-new vessel starting operations.

The company’s turnover during the year increased to €27.8 million ($32.4 million), up from €24 million ($28 million) in 2016, while group profit after tax was €6.3 million ($7.3 million) up from €5.2 million ($6.1 million) in 2016.

The group’s fishing vessel Cornelis Vrolijk Fzn had a good operating year fishing exclusively in UK/EU waters, while its new vessel, Northern Joy, started operations midway through the year following a longer period of refit than was first anticipated.

This vessel started fishing in July and continued through the remainder of 2017, and the purchase of the beam trawler has enabled North Atlantic Fishing Company to diversify into the whitefish sector, said the company.

Overall pelagic quota allocations in UK and EU waters were similar to 2016 with increases in WC mackerel, however reductions were seen in “certain key, profitable stocks” such as NS mackerel and WC horse mackerel.

“Pelagic fish prices were good during 2017,” the group said in its latest financial results, “however, marketing conditions remained difficult during the year due to the continued closure of the Russian market to UK-caught fish.”

On the other hand, marketing in Nigeria has become easier with relaxations on quota restrictions for imports, the company added.

Fuel prices have increased slightly during 2017 but have not had a significantly adverse effect on profitability.

The directors expect that the main activity of North Atlantic Holdings will continue in a similar way to 2017, said the financial statements.

“Even with some problems in the important Nigerian market and the Russian market the global demand frozen pelagic fish remains good," directors wrote.

“Prices of demersal species show positive signs and will most likely continue to prove profitable for North Atlantic in 2018.”

Meanwhile, the group said it continues to follow Brexit developments that could affect the UK fishing industry and seafood trade with the EU and other markets “very carefully."

It has generally welcomed the agreement between the UK and EU for a transition period from March 29, 2019, for a period of up to 21 months, where no major changes will be made.

“The group is carrying out various scenario planning exercises in preparation for leaving the EU, although issues surrounding the fishing industry and seafood trade with the EU remain unclear,” it said.

“However, as the majority of the final markets for the group’s catches are outside the EU we have no major concerns about future business.”

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