The Scottish Salmon Company Ltd Report Q3 2010

November 25, 2010 11:34

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, reports with reference to Scottish Salmon Company.

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."

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