Scottish salmon farming giant sees profits leap

Published on Monday 30 August 2010 21:10

Strong demand in the first half helped Oslo-listed Scottish Salmon Company (SCC), previously Lighthouse Caledonia, to post a leap in profits.

Scotland's salmon farms have benefited from the collapse of production in Chile, where disease forced the closure of farms and created a vacuum in the international market.

SCC, which accounts for about 20 per cent of Scottish production, said demand for Scottish salmon was high and that customers saw the fish as a premium product, allowing the firm to maintain profit margins.

These conditions are expected to continue for the rest of the year, the company said, with revenue in the first half doubling from 21 million to 42.6m as production rose. Interim profits soared from 1.7m to 12.1m.

SCC, which has its head office in Edinburgh but is listed on Norway's Axess junior stock exchange, owns about 50 sites and employs some 300 staff.

Lighthouse Caledonia had shut its Marybank facility in Stornoway, Lewis, in December 2008 with the loss of 130 posts.

But a rescue came from a private equity investor, Northern Link, which took a stake of more than 50 per cent in the firm last year and, in March this year, SCC unveiled plans to reopen the Stornoway site and hire 70 staff.

Chief executive Mike Corbett said: "Performance has continued to be strong and the demand for a premium Scottish product remains high. As we continue to invest in the business, we expect that this solid performance will continue throughout the second half of 2010."

SCC said it is reviewing its dividend policy after net debt fell from 31.3m to 16.8m. No interim dividend was declared.