Southampton ferry firm Red Funnel recorded a loss of nearly £200 million in 2023, the company's latest accounts show.

According to Companies House, the cross-Solent operator saw a total comprehensive loss for the year of £195.92 million.

Year on year, that is an 86 per cent decline. In 2022, the company had a loss of £27.7 million.

Accounts for Red Funnel Ltd show the firm's 2023 earnings to be £11.6 million — a 22.2 per cent fall on 2022, when £14.91 million was reported.

Turnover was up 10.4 per cent however, from £55.33 million to £61.1 million.

The publication of the accounts come after Red Funnel's parent company, Southampton Isle of Wight and South of England Royal Mail Steam Packet Company (SIOW), also filed its figures earlier this month.

They painted a similar picture, with profitability down by more than 20 per cent, as previously reported by the Echo's sister title, the Isle of Wight County Press.

Red Funnel boss Fran Collins has always vehemently denied rumours of administration and just last week stated the company was in a "strong" financial position.

She previously said: "I am pleased to confirm that, like the SIOW accounts, these have been filed on a going concern basis and that any rumours of administration are categorically incorrect".

Red Funnel has also secured financial backing from the firm's lenders for at least the next 18 months under the proviso that new investment is obtained by September 30, 2025.

If this milestone is not met this could require a demand for repayment, for which the group 'would have insufficient cash or available finance', the accounts state.

RF maintains it is 'confident' it can secure investment though, and is 'actively in discussions with several parties'.

A spokesperson for Red Funnel said: “The valuation of the business has been revised, reflecting today’s realities.

“It is important to recognise that this process is standard accounting practice and does not involve any cash flow or affect our day-to-day operations. 

“In recent years, we have navigated through numerous challenges, including the effects of COVID-19, fluctuating interest rates, the cost-of-living crisis, and rising costs.

“We remain in a strong position, with an increase in turnover of over 10 per cent and are optimistic about the future. 

“We are dedicated to continuing our efforts to serve the Island for generations to come.”