Iceland Seafood UK (IS UK) will continue its operations as part of the Iceland Seafood Group following the announcement that the Icelandic company is not selling its subsidiary in the United Kingdom. "After careful considerations, the board of Iceland Seafood has decided to put the sale process on hold and continue to operate the UK subsidiary", the company reported today.
In the second quarter of 2022, Iceland Seafood International (ISI) announced that it would review its strategy in the UK and on November 17 made public its intention to exit the UK market from a value-added perspective. On December 5, it announced that it had signed a Letter of Intent ('LOI') "with a respected industry player" to proceed with the sale of its subsidiary Iceland Seafood UK Ltd. A week later, on December 12, the company announced the cancellation of negotiations with the anonymous British buyer. There was a second LOI, but no negotiations were successful.
"In an industry where consolidation is needed, Iceland Seafood made it public late last year it was interested in selling the UK business. It is however the conclusion of the board of Directors that the proposals received didn't reflect the value of the company, as external conditions for the industry have been challenging", said the company in today's announcement.
In the stock exchange announcement, the company also claims that, recently, its UK subsidiary "has made significant progress with its strategic partners recovering unprecedented inflationary cost and adding a significant new business". As a consecuence, the company anticipates improved results, as well as returns on equipment investments, which will increase its capacity for growth and reduce unit costs. "Markets are stabilising, after the high volatility and constant upward cost pressure experienced throughout last year, which severely impacted the results of IS UK in 2022", they say.
In addition, the Icelandic company has assured that it will review its strategy on an ongoing basis and that it remains interested in supporting further consolidation of the UK business at the right time and on the right terms. "IS UK will continue to cooperate closely with its loyal customers and suppliers", they added. Finally, Iceland Seafood has reported that it will publish its 2022 consolidated financial statement next February 22 after the markets close.
With a team of over 620 people, Iceland Seafood International is one of the largest exporters of fish products from Iceland. The company is an industry-leading supplier of North Atlantic seafood and a leading service provider in its markets, moreover a key processor of high-quality seafood in the Spanish and UK markets.
