SSC stung by Q3 results
The Scottish Salmon Company reports a poor Q3, with biological issues – including jellyfish – leading to the average size of harvested fish decreasing, while the strength of the pound had a particularly large impact given the company’s emphasis on exports.
Revenues were £18m (Q3 2014: £33.6m) on harvested volumes of 5,130 tonnes (Q3 2014: 8,779 HOG tonnes). Although harvest volumes are lower than the same period in 2014, when SSC realised its highest quarterly volumes to date, they are broadly comparable with Q3: 2013 (£18.4m from 4,531 tonnes).
The company’s quarterly report, which was published today, reveals that harvesting was focused on more disparate sites in northern Scotland, which do not provide the same level of logistical and processing synergies.
Other issues included:
- Constrained growth and increased mortality following a number of biological issues including, as previously reported, the jellyfish incident at one of the Northern sites which has continued to impact on fish health.
- Essential wellboat maintenance operations for 3 weeks prior to the preparations for the festive season. This left one wellboat operational, reducing operations in one plant for 10 days.
- 7 further harvest days were lost due to unseasonal stormy weather and breakdown.
The company’s growth drive continues with the stocking of two new sites at Scadabay and Reibinish in Q3, adding an additional 4,000 tonnes harvest volumes in future cycles. In addition there has been further development in the site optimisation plan through organic growth, increasing site consent by 500 tonnes.
Development continues at the group’s new hatchery in North Uist to ensure it is fully operational in 2016, supporting the production of the Native Hebridean Salmon programme, which will provide the business with a new platform for growth.
Exports represent 48% of revenue compared to 36% in 2014. SSC now exports to 24 countries around the globe, this year it has focused its efforts on new emerging territories, including Asia and the Middle East to complement existing contracts in Europe and North America. Its activity across these new territories has contributed 27% of export revenue during the quarter.
Craig Anderson, Managing Director at The Scottish Salmon Company, said: "Despite the challenging conditions experienced this quarter, we remain committed to delivering our long term strategy of sustainable business growth with the focus on the provenance of our premium quality Scottish salmon both in the UK and internationally."
