The Scottish Salmon Company PLC Q3 2016 Results
Year on year performance stable with increased revenue and harvest volumes
Highlights
The Scottish Salmon Company PLC has issued its Q3 2016 results. Revenues for the quarter were £25.1m (Q3 2015: £18.0m) on harvested volumes of 5,486 tonnes (Q3 2015: 5,130 tonnes).
Year on year performance was stable with market prices remaining strong. Unprecedented mortalities and biological challenges have, however, impacted on expected harvest volumes with a lower mean weight of fish harvested. As a result, operating costs have increased and earnings have dipped, with exceptional costs resulting in an EBITDA loss of £1.4m.
The Company has continued to progress its long term growth strategy, commissioning a site at Maragay Mor in the Hebrides during the quarter, which will contribute an additional 2,000 tonnes of consent. Work is also progressing at a new harvest station at Ardyne in Argyll and Bute which will deliver operational efficiencies.
Capital investment in the quarter includes the commitment to purchase three new boats to service the Company's Northern sites. Alongside the new well-boat contract, these investments are core elements supporting the strategy for sustainable growth and will allow greater capacity and flexibility, maximising operational efficiencies and increasing speed to market.
In addition, SSC recently signed a preferred supplier contract for consumables which will yield both cost savings and efficiencies.
Craig Anderson, Managing Director at The Scottish Salmon Company, said:
"This quarter has been challenging and, like many other operators in the sector, results have been impacted by biological issues. We have been working for some time to develop effective long term solutions to tackle these industry wide issues, such as the use of cleaner fish to combat sea lice. In the shorter term, we are using a range of established best practice methods to manage the situation.
"We remain focused on growing our business and developing our export markets to enable us to capitalise on the continued demand for premium Scottish Salmon. Maragay Mor, our new site in the Hebrides has been commissioned and is an important element in delivering our strategy of long term sustainable growth."