Politics
Meats Company Posts £2m Loss
The figures have been released as part of its annual report which are due to go to Tynwald in March.
Isle of Man Meat Company Limited, which runs the island’s meat plant and sells Manx produce, has recorded an operating loss of £2.1m for the year 2020/21.
The figures have been released as part of its annual report which are due to go to Tynwald in March.
During the year, the taxpayer owned company made an operating loss of £2,112,272, which was partly met by the £2m subsidy from DEFA which was the shareholder of the company. As a result of this subvention, as well as other incomes, the audited accounts show the company’s final loss for the year was £96,246.
While these accounts were written when DEFA was the shareholder, Tynwald agreed last year that its position is conflicted as it operates as both regulator and marketer and so the Treasury will take over as the shareholder.
During the year, the company received a relocation grant totalling £7,047 in regards of the employment of one individual and grants for machinery totalling £23,276 which are being gradually written off over five years which relate to the life of the assets they relate to.
Figures
The accounts show that turnover rose to £9,110,761 in 2021, up from £8,406,445 in 2020. However, the cost of sales rose from £9,330,841 to £10,221,573 in the same period. Admin costs dropped from £1,084,949 to £1,001,460.
Going Concern
The directors’ report states that while DEFA (the taxpayer) has been partly meeting the company’s operating losses. It adds: ‘If the company were not to receive a subvention each year that covers the working capital and cash requirements of the company, the company would no longer be a going concern.’
However, while DEFA was able to assure that this will be paid for 2021/22, as noted in a Tynwald report last year, the company’s future funding is uncertain and we still don’t have all the answers for how it will be funded moving forward. This included looking at what lessons the island’s meat industry can learn from the dairy industry, which under Isle of Man Creamery, operates as a cooperative.Â
You can view the accounts below:
