September 7, 2010

Scottish Salmon Company posts robust H1 profits

Robust H1 demands have helped Scottish Salmon Company (SCC) to increase their profits.

Disease outbreaks that led to reduced production in Chile and international shortages have allowed Scotland's salmon farms to thrive even further.

Previously, Lighthouse Caledonia, SCC, which makes up 20% of Scotland's production, said demand for Scottish salmon remained up and that customers considered the fish a premium product, which lets the firm keep its profit margins up.

SCC expects these conditions to continue for the rest of 2010. Revenue in H1 doubled from GBP21 million (US$32.3 million) to GBP42.6 million (US$65.5 million) as production grew and interim profits rocketed from GBP1.7 million (US$2.61 million) to GBP12.1 million (US$18.61 million).

In December 2008, Lighthouse Caledonia closed its Marybank facility in Stornoway, Lewis. A private equity investor, Northern Link, then acquired a stake of over 50% in the company last year and, in March 2010, SCC announced it would reopen the Stornoway site and hire 70 workers.

Chief Executive Mike Corbett anticipates the company will farm 24,000 tonnes of salmon for the year.

SCC said it intends to focus on creating its Hebridean brand and launch pin-bone-out fillets from its processing plant in Stornoway, due to open shortly, according to reports.

Earlier, SCC bought over West Minch, the last important and independent fish farming operation remaining in the Western Isles. SCC is reviewing its dividend policy, it said, after net debt dropped from GBP31.3 million (US$48.1 million) to GBP16.8 million (US$25.8 million).