Premier Fish­ing & Brands lands solid in­terim re­sult

Share price rises 5.13% on JSE in spite of tough trad­ing

The Mercury - - COMPANIES - Adri Senekal de Wet

THE SHARE price of JSElisted Premier Fish­ing and Brands rose 5.13 per­cent af­ter the black-owned and man­aged fish­ing com­pany de­liv­ered solid in­terim re­sults de­spite tough eco­nomic and en­vi­ron­men­tal con­di­tions.

For the in­terim pe­riod to Feb­ru­ary 28, profit af­ter tax in­creased 59 per­cent from R18 mil­lion to R29m, gross profit in­creased from R71m to R76m (7 per­cent), oper­at­ing profit in­creased from R18m to R20m (14 per­cent), and a gross div­i­dend of 15 cents per share was paid in Feb­ru­ary 2018.

Re­flect­ing on the pe­riod un­der review, Samier Sa­ban, the chief ex­ec­u­tive of Premier, said: “I am pleased with our in­terim re­sults and the progress Premier has made against our strat­egy to date. Since list­ing the group on the JSE last year, we faced tough trad­ing and en­vi­ron­men­tal con­di­tions, but, de­spite this, the com­pany has achieved pos­i­tive re­sults.

“We also look for­ward to the lat­ter half of the fi­nan­cial year where the bulk of our per­for­mance is achieved due to the sea­sonal na­ture of our busi­ness.”

He said the squid in­dus­try ex­pe­ri­enced ex­cep­tional catch rates dur­ing the pe­riod un­der review. The landed vol­umes (and sales vol­umes) for squid dou­bled when com­pared to the pre­vi­ous year.

Deputy chair­per­son Khalid Ab­dulla said: “As the global

appetite for fish grows, and the need to pro­tect over­fish­ing and the re­plen­ish­ment of the ma­rine pop­u­la­tion, aqua­cul­ture will re­main a key el­e­ment of Premier’s long-term strat­egy, com­ple­mented by fur­ther aligned ac­qui­si­tions to di­ver­sify its prod­uct of­fer­ing.”

Ab­dulla said Premier put sus­tain­able fish­ing at the core of its busi­ness ethos. It com­plied with all in­dus­try laws and reg­u­la­tions in South Africa, and its fish­ing meth­ods and stan­dards were in line with global stan­dards.

“As a black-owned and man­aged fish­ing busi­ness, Premier is com­mit­ted to im­ple­ment­ing the prin­ci­ples of trans­for­ma­tion and broad-based black eco­nomic em­pow­er­ment. It con­tin­ues to place this high on the agenda to pro­mote na­tion build­ing in South Africa,” Ab­dulla said.

Premier an­nounced ear­lier this week that it had con­cluded the ac­qui­si­tion of its con­trol­ling in­ter­est of 50.31 per­cent in the Tal­hado Group, one of the

largest squid op­er­a­tions in the South Africa. This strategic ac­qui­si­tion was made for its squid fish­ing rights, brand and pro­cess­ing fa­cil­i­ties, as well as to en­hance Premier’s foot­print in the squid sec­tor, to in­crease share­holder value.

Ini­tia­tives

Premier listed on the JSE in March 2017, rais­ing R527m for its growth ini­tia­tives. The cap­i­tal raised was used to in­vest in grow­ing the as­set base that in­cluded ex­pand­ing the op­er­a­tions of the Abalone farm in Gans­baai.

“Thirty tons of ad­di­tional an­i­mal rear­ing ca­pac­ity has been added to date; con­struc­tion is an­tic­i­pated to be com­pleted by the end of the first quar­ter next year. This will in­crease pro­duc­tion ca­pac­ity to 320 tons of cul­ti­vated abalone, mak­ing it one of the top three abalone farms in South Africa,” said Sa­ban.

Premier Fish­ing and Brands’ prime fish­ing prod­ucts in­clude rock lob­ster (south and west coast) – ex­ported to the US, China, Europe and the Far East – abalone (farmed and wild), oc­to­pus, squid, sword­fish, pilchards, an­chovy, hake, horse mack­erel, gen­eral food prod­ucts and en­vi­ron­men­tally friendly agri-biotech­nol­ogy prod­ucts such as Sea­gro fer­tiliser, a byprod­uct of fish­meal.

Premier em­ploys up to 1 500 peo­ple (in­clud­ing sea­son work­ers) on the coastal re­gions of South Africa and con­trib­utes tremen­dously to­wards job cre­ation for pre­vi­ously dis­ad­van­taged com­mu­ni­ties.

PHOTO: HENK KRUGER/AFRICAN NEWS AGENCY (ANA)

Samier Sa­ban, the chief ex­ec­u­tive of Premier Fish­ing and Brands, is pleased with his com­pany’s in­terim re­sults and the progress Premier has made.

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