The Scottish Salmon Company PLC Q4 2013 Results
Highlights
· Revenues of £21.5m (Q4 2012: £27.8m) achieved on harvest volumes of 5,271 tonnes (8,336 tonnes)
· EBIT before Biomass Fair Value Adjustment was a loss of £1.0m in the quarter (loss of £0.4m in Q4 2012). EBITDA before Exceptional Items was £0.8m in the quarter (Q4 2012: £1.4m)
· Additional licence obtained in Greanamull in the Western Isles, with consent of 2,400 tonnes
· Full year EBIT before Biomass Fair Value Adjustment and exceptional items was £3.3m (2012:£0.5m) on 3,120 tonnes less volume. Harvest volume guidance for 2014 is 27,000 tonnes. Full year EBITDA before Biomass Fair Value Adjustments and Exceptional Items was £10.7m (Q4 2012: £7.6m)
The Scottish Salmon Company (SSC) finishes the year on target both in terms of harvest volumes and profit (EBIT), with a positive uplift on 2012 performance.
Revenues in the quarter amounted to £21.5m (Q4 2012 £27.8m) resulting in £82.4m for the year (2012: £79.5m).
This improvement is due to the significant increase in global salmon prices, albeit that the Company was unable to take full advantage of the superior spot prices as a result of previously contracted sales.
Contracted volume is an area that has been reviewed going into 2014 to ensure that SSC maximises its sales revenues, whilst maintaining a consistent revenue stream.
The main reason 2013 production decreased from the 2012 production was the even / odd year production imbalance, which will be materially decreased in 2014 due to site realignment. Other reasons are the impact on harvesting following AGD which affected juvenile fish in 2012, cancelled harvests during December 2013 as a result of poor weather and ongoing mortality issues at two sites which particularly hit Q4 results.
Production costs were subsequently higher than planned, although were an improvement on Q3. Improved operational efficiencies prevalent in Q4 incorporated into the business' harvesting processes, which included the use of a new well boat for on site harvesting, helped mitigate some of the overall impact in Q4.
As a result of stronger trading prices, improved harvesting efficiencies, and despite historical issues impacting volumes, the Company's EBIT before Biomass Fair Value Adjustment and exceptional items for 2013 rose to £3.3m from £0.5m in 2012.
Commenting on the company's performance and outlook, Craig Anderson, Managing Director, said:
"The past six months have been a transitional period for the Company, with developments in place ensuring that the Company can realise its potential going forward.
"With the successful development of new sites and production cycles coming into alignment for balanced year-round and year on year harvesting, the Company is able to realise its potential as a premium salmon producer.
"The provenance of our salmon, where it comes from, our feed regime and our husbandry, is core to the development of our strategy for Scottish salmon. Production of high end, premium quality, sustainable and authentically Scottish salmon, rich in Omega-3 and farmed responsibly, is fundamental to our business."
The Scottish Salmon Company
The Scottish Salmon Company PLC, through its UK subsidiary Scottish Salmon Company Ltd, is the leading independent producer of Scottish salmon, providing superior salmon to both local and international markets. The Scottish based and operated company is a fully-integrated seafood company, built around the provenance, taste, freshness, sustainability and health benefits of its salmon.
The Company is engaged in all stages of the value chain from smolt production to harvesting, processing and sales. Operating from over 46 sites on the Hebrides and West Coast of Scotland, the company currently employs over 400 staff. The Scottish Salmon Company currently produces about 24,000 tonnes of Scottish salmon annually, accounting for about 20% of Scottish production.