Loch Duart Salmon nets new customers in tough quarter

The Sutherland based company’s financial year runs from 1 April to 31 March the following year.

 

The operating loss, the directors said, was driven largely by a low market price environment and the fact that only 11% of the year’s total harvest fell within the quarter.

 

Loch Duart said: “The group continued to achieve a handsome premium to market of 30% relative to its reference market price in the quarter, in line with prior years.”

 

The operating result was helped by a £1.733m biomass insurance claim settlement related to the material mortality reported in the in third quarter.

 

The report added: “The company’s operational focus is currently on maximising average weight and tonnage for the current financial year – full year 2026-27.”

 

The year also saw 8,142 metric tons harvested, a rise from 5,620 tons. During the quarter the company received additional equity from its sole shareholder, amounting to £8.3m.

 

Loch Duart said prices were 15% lower for the full financial year because of market conditions, driven by a higher supply.

 

On a brighter note it said the company: “….managed to open trade with new customers in several markets which enabled it to increase its premium relative to its reference price to 30% in the last quarter”.

 

The report added: “The position improved in Q4 relative to the earlier part of the year. The year saw increased output from the company’s investment in increased production, with 8,142 tons harvested, a rise from 5,620 tons in the prior year.

 

“Ex-farm costs in the quarter, although lower than the prior quarter, were 19.5% higher than prior year because of the material adverse mortality events, predominantly at one site.”

 

“Biomass at the quarter end was aided by good fish health and improved survival, on the basis of which indicative tonnage for 2026-2027 is around 11,000 tons.”

 

But the company does say the continuing deterioration of the Sterling (GBP) to NOK rate has resulted in the recognition of significant foreign exchange losses in relation to the GBP value of the NOK-denominated bond in Other Comprehensive Income.