SSC results impacted by biological issues

The company revenues for the quarter were £25.1m (Q3 2015: £18.0m) on  harvested volumes of 5,486 tonnes (Q3 2015: 5,130 tonnes).

Year  on  year  performance  was  stable  with  market  prices remaining strong.  Unprecedented  mortalities and biological challenges  have, however, impacted on expected  harvest  volumes  with  a  lower  mean  weight of fish harvested. As a result, operating   costs  have  increased  and  earnings  have  dipped,  with exceptional costs resulting in an EBITDA loss of £1.4m.

The   Company  says that they have  continued  to  progress  its  long  term  growth  strategy, commissioning  a site at Maragay  Mor in the Hebrides  during the quarter, which will  contribute an additional 2,000 tonnes of consent. Work is also progressing at  a  new  harvest  station  at  Ardyne  in  Argyll and Bute which will deliver operational efficiencies.

Capital  investment in the quarter includes the commitment to purchase three new  boats  to service  the Company's  Northern sites.   Alongside the  new well-boat contract,  these  investments  are  core  elements  supporting  the strategy for  sustainable  growth and will allow  greater capacity and flexibility, maximising  operational efficiencies and increasing speed to market.

In  addition, SSC recently signed a  preferred supplier contract for consumables  which will yield both cost savings and efficiencies.

Craig Anderson, Managing Director at The Scottish Salmon Company, said:

"This quarter has been challenging and, like many other operators in the sector,  results  have been impacted by biological issues.  We have been working for some  time  to develop  effective long  term solutions  to tackle  these industry wide  issues, such as the use of cleaner fish to combat sea lice. In the shorter term,  we  are  using  a  range  of  established  best  practice  methods to manage the  situation.

"We  remain focused on growing our business and developing our export markets to enable  us to  capitalise on  the continued  demand for premium Scottish Salmon. Maragay  Mor,  our  new  site  in  the  Hebrides has been commissioned and is an important element in delivering our strategy of long term sustainable growth."

Highlights

* Net Q3 operating revenues of £25.1m (Q3 2015: £18.0m)

* EBIT/kg before fair value adjustment of -£0.62 (Q3 2015: -£0.67)

* 5,486 tonnes harvested (Q3 2015: 5,130 tonnes)

* Exceptional levels of mortality in the quarter of 1,300T

* New site commissioned at Maragay Mor (2,000T) and capital investment in new boats to support growth