Salmon group revenue up but harvest misses target

HIGH mortality rates continue to impact harvest numbers at The Scottish Salmon Company, but an increase in market value has seen revenue leap 10 per cent to £110 million.

Harvest volume was down five per cent to 24,342 tonnes, missing guidance of 30,000 tonnes.

The company – which is Edinburgh based but listed on the Oslo stock exchange – said the industry-wide biological challenges and mortalities reported in the previous quarter continued to impact expected harvest volumes and drove up production and operating costs by 15 per cent to £26m.

The group said it had made good progress in treating these issues, adding that the global salmon market is strong and prices are forecast to remain high.

Trials on its new harvest station in Ardyne, Argyll, were completed during the last quarter of 2016 and the facility became fully operational last month, as part of £1.7m capital expenditure in the quarter. A new well boat also became operational, with both investments providing more flexibility during harvest and improve speed to market.

Chief executive officer Craig Anderson said: “Performance has remained stable but we recognise the effects of recent health issues have impacted on our projected growth in the short term.”

Guidance harvest volumes for 2017 is 25,000 tonnes.

In the last quarter of 2014, the group posted net operating revenue of £27.2m, down from £23.9m. Harvest volume fell to 5,733 tonnes from 6,059.

Export sales accounted for 44 per cent output, an increase of seven per cent and Mr Anderson said the group was making “good progress” in delivering its long term growth plan. Saturday, 25th February, 2017