The Scottish Salmon Company PLC First Half and Q2 2011 Results
THE SCOTTISH SALMON COMPANY DELIVERS RECORD Q2 RESULTS, AS IT PLANS FOR CONTINUED STRONG GROWTH
Highlights
· Record turnover and EBIT for the Quarter
· Awarded 'Best Aquaculture Company' in Scotland
· High percentage of volume sold through contracts, to secure long term partnership with targeted partner customers, protects company from impact of price volatility
· Listed on Main Oslo Bors 29 April 2011
· Reduction in market price of salmon at end of Q2 resulted in £10.0m decrease in biological fair value of stock
The Scottish Salmon Company PLC, has reported a record second quarter and half year results, as plans to increase production signal strong future performance.
Net operating revenue for Q2 totalled £31.7m (£19.0) achieved on sales of 7,582 tonnes (4,916 tonnes) of harvested salmon. Profits were £8.5m for the quarter (£5.5m). Revenues for the half year amounted to £57.1m (£43.0m) with profits hitting £15.1m (£12.1m).
Continuing good biological performance into Q2 was a key factor, while the Company's strategy for contracting with trusted partners for the high volumes of product has protected it from the current softening of market price.
Q2 saw the completion of the transfer of all West Minch Salmon (WMS) interests to The Scottish Salmon Company, following the smooth integration of site operations.
Increasing volumes to meet the demand for high quality salmon continues to be an important focus for the Company, which is committed to building a sustainable business within Scotland's rural communities. Due to stock cycles and while investment plans are implemented, harvest volumes are expected to be in the region of 23,000 tonnes for 2011 and 2012 with volumes rising through 2013, 2014 and 2015.
The Scottish Salmon Company is a principal player in the Scottish aquaculture industry responsible for approximately 20% of Scottish salmon production. In June, it was awarded Best Aquaculture Company in Scotland by the Crown Estates, recognising the Company's sustainable practice, business performance, investment, staff management practices and local community involvement.
Bill Hazeldean, Chief Executive of The Scottish Salmon Company said:
"The successes of Q2 are an endorsement of the hard work and dedication of the staff at The Scottish Salmon Company. We are committed to building a sustainable business in Scotland that delivers value to all stakeholders and to that end we have been highly diligent in every aspect of our operations, from investing in sites through to working with local and supply chain partners. This is reaping results now and will underpin our future growth."
Further Information
The Scottish Salmon Company is the leading producer of salmon, providing superior quality Scottish salmon to local and international markets. It currently produces more than 20,000 tonnes per year, over 20% of the total Scottish salmon production.
The Company is engaged in all stages of the value chain of farming Scottish salmon, from smolt production to harvesting, processing and sales, in Scotland. It owns over 40 sites on the Hebrides and West Coast of Scotland along with two processing plants.
The UK Head Office is located in Edinburgh and the company currently employs over 350 people, many of whom live in remote rural communities.
As a principal player in the Scottish aquaculture industry, 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 keeping value in Scotland.
Formerly Lighthouse Caledonia, the Company launched as The Scottish Salmon Company in July 2010. It is listed on the Oslo Bors stock exchange.
25th August 2011
Further Information:
www.scottishsalmon.com
Su Cox su.cox@scottishsalmon.com