SSC Ideanomics (delisted)

Strong market and improved operational performance drive growth

• Record half year revenue of £72m driven by higher prices and improved biological performance
• Cost per kilo impacted by prior year mortalities, but positive development in underlying operations
• Exports for first six months exceed 50% of sales with increased volumes to North America and the Far East
• The Hebridean Origin and Scottish Provenance offerings well received in North America
• Consent for additional 2,000 tonnes at Portree supports growth strategy
• Reiterate target of annual harvest volumes of 25,000 tonnes for 2017

The Scottish Salmon Company PLC has issued its H1 2017 results. Revenue grew 25% year on year providing the Company with record half year results of £72.0m (H1 2016: £57.6m). Harvest volumes were 11,617 tonnes (H1 2017: 13,123 tonnes). The lower volume was due to bringing harvests forward in H2 2016, reducing availability for 2017.

The strong performance was supported by the buoyant market, increased mean weights of harvested stock and a continued focus on improving operational efficiency. Growing demand for salmon, particularly of Scottish provenance, improved the price achieved and subsequently earnings have risen substantially year on year with EBIT/kg before fair value adjustment of £1.65 (H1 2016: £0.39). 

The biological situation remains challenging throughout the industry. However, the Scottish Salmon company remains focused on biological improvements, introducing a number of proactive and reactive strategies. The Company's ability to manage the situation has improved significantly compared to last year.

The Scottish Salmon Company continues to advance their export strategy, leveraging the value of its provenance and the continued demand for high quality Scottish produce. During H1 2017, SSC entered new markets in in the Far East and took actions to expand its presence in North America. Together with Label Rouge salmon, the Native Hebridean Brand is expected to be a key driver of export growth going forward. During the first six months of 2017, export sales accounted for 52% of value (H1 2016: 42%).

The Company continued its focus during this period on increasing capacity and improving operational efficiency. Consent was secured for an additional 2,000 tonnes at a site at Portree on the Isle of Skye with a number of other proposals for site development underway. The Portree site will be stocked in 2018 with first harvests anticipated in late 2019.

Investment in infrastructure progressed throughout the period including the purchase of the hatchery business, a longstanding supplier.

Craig Anderson, Chief Executive Officer at The Scottish Salmon Company, said:

"Demand for premium quality Scottish salmon across the globe has never been higher and we have maximised the opportunities this provides, evidenced by a record half year performance.

"Export sales have risen exponentially in key territories like Japan, where we have just exhibited at the Seafood Expo. The response to our products has been overwhelmingly positive, particularly our unique Native Hebridean Salmon which has such a strong provenance story.

"Our strategy for long term sustainable growth is paying dividends with another site expansion consented in the period and a robust pipeline in place. Our programme of site development and securing long-term customers relationships at home and overseas, are the fundamentals which underpin this growth strategy and remain our key focus for the remainder of 2017."

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