Record results for Scottish Salmon Company

HIGHER harvests and strong market prices have combined with a market-led strategy and good export sales to drive a record-breaking half-year for The Scottish Salmon Company (SSC).

SSC has reported a successful first half of 2014, with record revenue levels in both quarters; Q1 revenues were 48% higher than the previous year, and this continued in Q2, with a 43% increase over the same quarter in 2013.

Total revenue for the six months was £61.5m, up from £42.4m for the first half of 2013.

The results reflect SSC’s strong biological performance during Q2. Warm waters encouraged growth and increased harvest volumes – with 8,027 tonnes harvested in Q2 2014 compared with 5,976 the previous year – and high market prices dominated the first six months of 2014.

Costs per kg were higher, solely due to the logistics of the locations being harvested. SSC’s average costs actually continued to fall during Q2 due to careful management, lower feed prices, good husbandry and vigilant health control.

The strong performance follows a change in focus over the past year, with new Managing Director Craig Anderson of the SSC Ltd moving the company from a production-led to a market-led strategy, and an emphasis on Scottish Salmon’s provenance and premium quality.

Export sales have continued to rise, accounting for 42% of revenue in Q2.

SSC’s ability to deliver high quality, premium salmon consistently year round is fundamental to this success at home and overseas and is the result of an ongoing capital investment programme to balance production, introduce husbandry improvements and continually develop all elements of the supply chain.

The company has committed to £11m of capital expenditure during 2014, and achieved additional consents at three sites, which will result in another 2,380 tonnes of product a year.

Craig Anderson said: ‘The Scottish Salmon Company has continued its strong performance as a reinvigorated company, delivering a high quality, Scottish salmon to growing domestic and international markets.

‘In the first half of this year we have focused on market and client engagement and on understanding our customers’ priorities and needs.

‘Two consecutive quarters of record revenues and the continuing growth of our export sales show that this strategy is having tangible results.

‘Our continuing success and growing strength is based on the quality of our product and our guarantee of its provenance and Scottish origins.

‘To further this, we’ve committed to significant capital expenditure over the rest of the year, including our Hebridean broodstock programme in Uist.

‘This investment also mirrors our commitment to the local communities in the areas where our operations are based.

‘We support many events that are significant in the lives of our local communities, such as games and festivals, and we recently confirmed our sponsorship of Judo Scotland, the governing body of the Commonwealth Games medal-winning sport.’