Salmon price plunge hits SCC’s profits

A SHARP drop in global spot prices for salmon caused by too many fish flooding the market has led to profits floundering at the Edinburgh-based Scottish Salmon Company (SCC).

The third-quarter surplus slumped from £4.8 million to just £700,000 year-on-year, but the Oslo-listed company said it remained on track to hit full-year profit forecasts thanks to its long-term contracts, which account for 70 per cent of sales.

Revenues fell from £20.6m to £17.8m year-on-year after the amount of salmon sold dropped from 5,468 tonnes to 4,686 tonnes due to “an imbalance in production cycles”.

SCC, which farms more than 20 per cent of Scotland’s salmon and employs some 350 staff across 40 sites, said it was continuing with its £40m investment plan to expand production to smooth out such imbalances.

Chief executive Bill Hazeldean said: “The key focus for SCC is to grow and develop production volumes to ensure consistent supply, year on year, through all stages of the farming cycle.”

The group, which was promoted from Oslo’s junior exchange to the main “bors” in April, was formerly known as Lighthouse Caledonia before being restructured.

PETER RANSCOMBE