Source: The Australian
Cost-cutting at Clean Seas Tuna, especially in the kingfish business, has helped the seafood company stem its losses in the first half.
In a market update yesterday, directors said the company was anticipating “a reduction in the order of 25 per cent to 35 per cent in the level of the after-tax loss†for the six months to December 31.
Clean Seas booked an after-tax loss of $14.16 million in the six months to December 31, 2009.
It is now forecasting an after-tax loss of between $9.2m and $10.6m.
Clean Seas is the largest farmer of yellowtail kingfish and mulloway in Australia and also produces southern bluefin tuna.
Clean Seas chief executive Clifford Ashby attributed the improved first-half result to a combination of an efficiency drive and management increasing “what we refer to as our farm gate (in the kingfish business), which is effectively the sales price, less processing and sales costsâ€.
In addition, the company said that winter was normally a time of slow growth for kingfish.
“While this impacts on the first half-year results, the sell-down of inventory, price increases and cost-saving initiatives have resulted in the company’s kingfish business being cashflow-positive for the latest half,†the company said.
The positive first-half update coincided with news from the company that its southern bluefin tuna (SBT) broodstock had started spawning last week.
SBT larval rearing trials are under way at its Arno Bay operations in South Australia.
However, Mr Ashby said it was difficult to forecast when the company’s first-half result would be back in the black, as it largely depended on the success of SBT breeding.
Management said its SBT lifecycle research and development program was ongoing.
It was not possible at this stage to anticipate the likely outcomes or the start and end dates for each season.
Management said in the 2010 financial year, spawning started in mid-January and stopped in mid-April.
Shares in the company closed flat at 10c.