The Scottish Salmon Company PLC releases Q1 2014 Results
The Scottish Salmon Company (SSC) has reported a highly successful first quarter to 2014, boosted by a new and exclusive two year contract with a top London foodie outlet and a growing export market.
The results for Q1 in a strong market, including significant increases in both turnover and profitability over the same period last year, are a direct consequence of the shift from a production focus to a more market led business strategy introduced by new Managing Director Craig Anderson.
Revenues for January to March 2014 were £27.7m (Q1 2013, £18.7m) and EBIT £4.1m (Q1 2013, £1.8m). With good biological performance, these results were achieved on harvested volumes of 6,004 tonnes (Q1 2013, 5,092 tonnes).
Exports for the quarter were up, representing 48% of revenue in Q1 (Q1 2013: 35%), as demand rises in Europe, America and in the Far East, where new markets are developing. The overseas customer base is also expanding in the high-end marketplace, with another new contract with the top Swiss food retailer, allowing the company to capitalise on current strong market prices
On the domestic market, the deal to supply a chain of 48 restaurants and food shops that have built their reputation on healthy food and sustainability, with salmon for sushi reinforces SSC's market position for quality and freshness.
SSC's ability to deliver high quality, premium salmon consistently year round is fundamental to this success at home and overseas and is the result of an ongoing capital investment programme to balance production, introduce husbandry improvements and continually develop all elements of the supply chain.
Craig Anderson said:
"SSC is a re-energised company, open for business, establishing new markets and moving forward with quality fish, at the right size and delivered on time.
"Having made positive moves towards balancing production cycles through organic changes and new consents, we have shifted our focus. Through an intense process of market and client engagement we are building our customer relationships on solid principles of knowledge and understanding of their priorities and requirements. It is making a tangible difference. The new deals with and top tier Swiss and London retail brands are testament to that.
"Last month, as sole supplier to our sister company, Loch Fyne Oysters, consistent high quality was also an important factor behind its success in winning the Queen's Award for Enterprise, in the category for international trade.
"To support the company's new focus, we are strengthening our management team with outward looking skills that will support our aspirations as a leading producer of premium salmon for a growing domestic and export market."
Capital investment for the year ahead is estimated at around £12m, while the Company has committed further investment in the project to develop farmed Ballan Wrasse, or 'cleaner fish', for use in the salmon pens as a compliment to conventional treatment strategies.
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 60 sites on the Hebrides and West Coast of Scotland, the company currently employs over 400 staff. The Scottish Salmon Company currently produces about 25,000 tonnes of Scottish salmon annually, accounting for about 20% of Scottish production.