Increased harvesting impacted Scottish Salmon Company’s production in Q2

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Last financials before salmon farmer is sold is to the highest bidder.

In a financial statement, SSC posted its First Half 2019 Report (six months ended 30 June 2019) with an EBIT before fair value adjustments of GBP 31.4 million – a 5.7 per cent drop compared to the previous year.

It also recorded net operating revenues of GBP 111.8m (H1 2018: GBP 98.3), driven by a 17 per cent increase in harvest volumes to 18,463 tonnes (H1 2018: 15,777 tonnes).

CEO Craig Anderson said: “The business has delivered strong results in the first half of the year and we remain committed to responsible business growth through our well-defined strategy. Priorities are: to invest in our operations, enhance operating efficiencies and maximise value; further strengthen the position of our brands; and increase exposure into key export markets, which now account for 67% of sales.

“In the first half of the year, we delivered record revenues of £111.8m, despite a softening in market conditions and contending with localised operational and biological events that impacted production in Q2. Over the long-term, the aim remains to deliver steady and sustainable growth. We remain on track to achieve our target volume of 33,000 tonnes by the year-end and 45,000 tonnes by 2025 with planning consent being obtained for two sites.

“Our ongoing investment strategy continues to demonstrate results and support increased production. As we achieve greater scale, we continue to make significant investments in site development, operational capacity, biological innovations and infrastructure. The full benefit of this investment cycle will be realised going forward, ensuring we take advantage of an increasing share of global market potential as the demand for our Scottish salmon continues to grow.”

During the first half of the year, SSC commissioned a first-of-its-kind multi-purpose vessel that is expected to enter operation in early 2021. The versatility of the vessel will support harvesting activities as well as act as a treatment response unit.

And it also developed its Applecross freshwater facility, in line with the strategic objective to deliver increasingly larger-scale operations. SSC has invested £2.4m in this project year-to-date. Phase two is due to commence in August and the site is expected to be operational in early 2020.

SSC has set a long-term volume target of 45,000 tonnes by 2025.

The company is currently looking for bidders to purchase part or all of company  and the process is expected to be concluded by the end of September 2019.