The Scottish Salmon Company Ltd Report Q3 2010

 

The Scottish Salmon Company, Scotland's leading independent salmon farming business, has announced another good set of quarterly results, reflecting a strong year-to-date performance as the company's strategy takes effect.

During the three months from July through to September 2010, the company implemented planned investments including the restructuring of the company and its new listing on the Oslo Axess, commencing processing in Stornoway and the acquisition of West Minch Salmon Ltd, securing around 140 jobs in the Hebrides and West Coast of Scotland.

Revenues for the quarter were £20.6m (£20.5m, Q3 2009) achieved on sales volumes of 5,468 tonnes. Earnings before tax for Q3 were £8.5m, against £3.8m for the same period the previous year.

An increase in contracted sales and higher volumes of superior quality salmon helped to mitigate the seasonal softening of the market in this quarter.

Although slower growth of stocks in the first half of the year will impact unit costs in Q4, harvest volumes are anticipated to be in the region of 24,000 tonnes for 2010 (dependent on the severity of the weather over the winter months), with market conditions remaining favourable.

Overall, good fish health and a price premium for Scottish salmon have put The Scottish Salmon Company on course for a record year. Turnover for the year to date sits at £63.2m against £64.5m for the whole of 2009.

The company's cash position remains strong and its debt significantly reduced.

Mike Corbett, CEO of The Scottish Salmon Company, said:

"This has been a particularly busy quarter. As scheduled, processing trials in the Hebrides at the Stornoway plant started on 1st September with the introduction of Hebridean pre-rigor pin-bone-out fillets. While still in 'set up' phase, initial feedback from customers has been very positive and full production is planned to commence in Q1 2011. 

 

"The purchase of West Minch Salmon was also significant, as the Company continues to work to ensure there are sustainable volumes harvested to supply both Northern and Southern processing plants with consistent in-year and year on year volumes essential for efficiency and core for supporting the brand strategy. 

 

"The restructuring of the company has given us the flexibility and control over our investment plans. The overall outlook is positive and solid performance is anticipated going forward."

 

 

 

Contact:  Su Cox   Investor Relations                    

su.cox@lighthousecaledonia.com

 

 

 

www.scottishsalmon.com

 

The Scottish Salmon Company

is Scotland's leading independent producer of Scottish salmon, providing superior quality Scottish salmon to local and international markets, currently producing in the region of 24,000 tonnes per year, over 20% of the total Scottish salmon production.  The Company is engaged in all stages of the value chain of farming salmon, from smolt production to harvesting, processing and sales. It owns around 40 sites on the Hebrides and West Coast of Scotland along with regional processing plants in Stornoway and Cairndow to create two distinct areas of operation, north and south.  The head office is located in Edinburgh and the Company currently employs around 350 people.

 

The Scottish Salmon Company is committed to high standards of animal welfare, sustainable operations and promoting a responsible environmental policy. The company is committed to the communities in which it operates and maintaining value in Scotland.

 

Formerly Lighthouse Caledonia, the Company launched as The Scottish Salmon Company in July 2010, it is listed on the Oslo Axess and the turnover in 2009 was £64million.

 

 

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

SSC Q3 2010 Presentation
SSC Q3 2010 Report