Biological issues give SSC challenging Q3

THE Scottish Salmon Company (SSC) reported a stable third quarter, with revenues up on the same period last year to £25.1 million (Q3 2015: £18 million) on harvested volumes of 5,486 tonnes (Q3 2015: 5,130 tonnes).

Market prices remained strong but the company said ‘unprecedented mortalities and biological challenges’ impacted on expected harvest volumes, with a lower mean weight of fish harvested.

As a result, operating costs increased and earnings dipped, with exceptional costs resulting in an EBITDA loss of £1.4 million.

The company commissioned a site at Maragay Mor in the Hebrides during the quarter, which will contribute an additional 2,000 tonnes of consent.

Work is also progressing at a new harvest station at Ardyne in Argyll and Bute, which will deliver operational efficiencies.

Capital investment in the quarter includes the commitment to purchase three new boats to service the company’s northern sites.

Alongside the new well boat contract, these investments will allow greater capacity and flexibility, said the SSC, maximising operational efficiencies and increasing speed to market.

Craig Anderson, SSC managing director, said: ‘This quarter has been challenging and, like many other operators in the sector, results have been impacted by biological issues.

‘We have been working for some time to develop effective long term solutions to tackle these industry wide issues, such as the use of cleaner fish to combat sea lice.

‘In the shorter term, we are using a range of established best practice methods to manage the situation.

‘We remain focused on growing our business and developing our export markets to enable us to capitalise on the continued demand for premium Scottish salmon.

‘Maragay Mor, our new site in the Hebrides, has been commissioned and is an important element in delivering our strategy of long term sustainable growth.’