Record for Scottish Salmon Company
EBIT per kilo for Q2 2010 of £1.11(£0.37) and for H1 2010 £1.06 (£0.26) * Strong market conditions continued in Q2 but due to the lower volumes relative to Q1, the percentage of fixed price contracts was higher * EBITDA margin before biomass fair value adjustment at 35% (18%) NIBD at £16.8m (£31.3m) with an equity ratio of 51.7% (39.3%) * Year to date results show EBT of £13.2m (£1.9m) on turnover of £42.6m (£21.0m), continuing the pattern from a strong Q1 * On 20(th) July 2010, all of the shares in West Minch Salmon Ltd were acquired which is a significant tep forward in the regional strategy of brand development
The Scottish Salmon Company, Scotland's leading independent salmon farming business, has announced good results for the second quarter of 2010. The Company made £5.5m profit before tax and adjustments for Q2 2010, against £1.7m for the same period the previous year.
Turnover during the period was £19m against £14.8m in the previous year, with the Company producing 4,916 tonnes of salmon, putting production well within reach of the anticipated 24,000 tonnes for 2010. The Company said favourable market conditions prevailed throughout the first half of 2010 and that the strong demand for Scottish salmon continued ensuring that the Scottish price premium was maintained. It is anticipated that these conditions will continue for the remainder of the year.
These are the first results since the Company launched as The Scottish Salmon Company on July 8(th) 2010. The Company was renamed to build on the premium reputation of Scotland and Scottish salmon. The half year figures present a turnover of £42.6m, compared to £21m for the same period last year and a profit of £12.1m compared to £1.7m before tax and adjustments. Cash flow remains strong and the Company's debt position is significantly improved.
The principle of stocking single year class in the loch systems, where possible, has proved to be beneficial in biological performance, although low temperatures have resulted in slower growth. Initiatives are being developed to bring the company in line with customer requirements and to secure the leading position in the Scottish salmon market. The focus is to develop the Hebridean brand and introduce pre-rigour pin-bone-out fillets from its processing facility in Stornoway which is due to open in the Autumn with the creation of 70 jobs. Mike Corbett, Chief Executive of The Scottish Salmon Company, said: "We are happy to report another successful quarter, the first quarter we have reported as The Scottish Salmon Company. Overall performance has continued to be strong and the demand for a premium Scottish product remains high. "This quarter and the first half of the year have continued to build upon the significant progress that has been made over the past 18 months. As we continue to invest in the business, we expect that this solid performance will continue throughout the second half of 2010."
