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Poultry giant 2 Sisters Food Group posts £36m loss

Farm leaders have called for a halt to the talks
Farm leaders have called for a halt to the talks

Scotland’s biggest poultry processor – 2 Sisters Food Group – plunged further into the red last year.

Accounts filed with Companies House reveal the firm, whose interests include the McIntosh Donald lamb and beef processing business at Portlethen and chicken processing site in Coupar Angus, posted a pre-tax loss of £36.310million for the 52 weeks ended August 1, 2015.

This compares with a pre-tax loss of £21.871million for the previous accounting period, which was the 53 weeks ended 2 August, 2014.

Turnover at the Birmingham-based company was also down in the year to £944.774million, from £992.725million previously.

Sales within the UK reduced, while sales to the rest of Europe increased by 256% to £2.528million, from £709,000 previously. Sales to non-European markets were worth £619,000.

In a statement accompanying the accounts, the firm said: “The company has continued to feel the effects of the Avian Influenza outbreaks, negative consumer sentiment following FSA campylobacter reporting and the impact of food deflation throughout 2015. However, positive volume trends experienced in the latter half of the year indicate progress in mitigating these market-wide issues.”

Exceptional costs at the firm were £1.039million in the year, as a result of closure and redundancy costs arising from the closure of two sites, including one at Letham in Angus.

The accounts also reveal that the highest paid director at the firm took home a pay cheque of £1.701million – this is up 170% on the year before when they were paid £628,000.