Comment posted on Has Loch Fyne Oysters been shucked by the right partner? by john in kintyre
Like school defender I can not understand nor see the reasoning in this article.
In the original press release it was quite clearly stated that one, if not the major reason for the tie-up with Scottish Seafood Investments was that Loch Fyne Oysters found it increasingly difficult to secure funding/investment from conventional sources (probably their bankers) to expand the business because of the way it was structured.
It was and is a case of the owner/employees being willing sellers to Scottish Seafood Investments as willing buyers to secure and expand the business.
Can only be good for Argyll.
john in kintyre also commented
- What has your comment to do with the merger?
Recent comments by john in kintyre
- Democratic deficit as Government ignores Information Commission ruling
Mark,please stop peddling lies, The mobile fishing sector does not or has ever shot seals, it does not do your creditability any good when you use unsubstansiated tosh in your arguements.
Please present facts - The reality of living as a Clyde fisherman: Scottish government must act
A comment by SIFT by any chance? - The reality of living as a Clyde fisherman: Scottish government must act
Ron for your information, this is what the anti-fishing lobby do not want highlighted.
Go to www.nafc.ac.uk/Fisheries-Policy-Notes.aspx look at Trends in Scottish Fish Stocks published by NAFC University of the Highlands and Islands on 26th March 2013, especially page 20 and you will see the major target species of the West Coast Fishermen ie. Prawns (Nethrops)has increased in abundance by 70% since 2007.
The TAC (Total Allowable Catch) for Nethrops, or quota in laymen’s terms was increased this year 2013 on the recommendation of ICES but effort (the time allowed at sea) has been reduced since 2011 when boats were allowed 200 x 24 hour days to a projected 100 days 2013.
This is due to the Cod Recovery Plan which is inflexible in that it must reduce fishing effort year by year even though the the West Coast Fleet catches less than 1.5% Cod as a bycatch and therefore should, by the rules governing the Cod Recovery Plan, be exempt from the effort rules.
The “Giant Floating Factories” you quote must be Dutch vessels as the mean average length of a traditional West Coast Nethrop Trawler is between 10 to 16 metres crewed on average by 3 to 4 local men landing locally every day to Scottish Processors.
John ex-skipper now retired - Politicians’ responses to the Kintyre and Arran power emergency
Well explain how the battery is lasting in I presume your laptop or I-pad? 5 days is rather remarkable I would suggest without a recharge.
Or is it a case of being frugal with usage or perchance a small generator or some solar come wind turbine device.
Another query, did you not beleive the forecasts and heed the SNP Goverment’s advice to fuel the car and take measures to make sure essentials were to hand to alleviate any hardship. - Kintyre suffering badly from impact of snow and high winds
Gossip, gossip from an old embittered tory.
Name and shame if you have any balls IfO
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Well done FA for reporting on this- it’s a good news story and it is directly relevant to Argyll.
The future of Loch Fyne Oysters has been secured by the intervention of The Scottish Salmon Company.
Between them these companies bring employment, significant revenue, and tourists to Argyll, and export ‘Argyll’ all over the world.
So The Scottish Salmon Company has reported a dip in profits?- no surprise given the downturn in salmon prices, but a £14.4m profit is not to be sniffed at, especially since most of this was generated in Argyll.
Your analysis of the salmon market is amateurish and merely an attempt to criticise the industry, and as for your attempt to play the Norwegian bogeyman card, you have been praising Norway to the heavens as a role model for an independant Scotland for long enough so what exactly is your point?
And hurrah for The Scottish Salmon Company for announcing massive capital investment plans in rural Scotland with the attendant job creation. How many other businesses are expressing such positivity in the current economic climate?
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But how many anglers are we losing from the tourism economy who spend a lot of money in all areas? I take it you’ve read the reports on the effects on wild fish.
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What has your comment to do with the merger?
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Like school defender I can not understand nor see the reasoning in this article.
In the original press release it was quite clearly stated that one, if not the major reason for the tie-up with Scottish Seafood Investments was that Loch Fyne Oysters found it increasingly difficult to secure funding/investment from conventional sources (probably their bankers) to expand the business because of the way it was structured.
It was and is a case of the owner/employees being willing sellers to Scottish Seafood Investments as willing buyers to secure and expand the business.
Can only be good for Argyll.
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Being an analyst and having reviewed the Q4 accounts, i find it disturbing no news outlet covering this story has noticed the comments hidden away at the back of the accounts on page 8. I will paraphrase but essentially due to lower volumes coming through due to world salmon supply recovering from the chilean farms coming back online, higher feed costs, stocks killed by sea lice and committed capex requirements, the company forecasted a breach of the gearing ratio and NIBD to EBITDA ratio in Q2 & Q3 in 2012. They did however successfully gain waivers from the banks for the forecast breaches plus the covenant ratios were loosened. Interestingly however they state that the covenants may have to be re-visted should revenues & costs not act as assumed. Essentially the banks now hold the cards here after the shocking Q4 results. I also find it interesting that the company has recently signed up the use of Ballan Wasse in salmon cages in order to reduce sea lice on salmon. Perhaps a chilean style outbreak of sea lice is on the cards given the ever more concentration of cages in order to drive towards lower costs and higher profits???
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Posting at 1.08am? If you need a cure for insomnia, can I suggest you simply read what you wrote?
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BFM- I am sorry for my comment, it was uncalled for and quite rude (as evidenced by the number of no votes). I blame a long hard day at the coalface with unruly youngsters, but that’s probably just an excuse for a hint of envy at your financial analysis, plus a little irritation that the FA story and your response tries to use a good news story to attack a valuable Scottish industry.
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We know just what you’re talking about. There’s nothing like an all-nighter – of which we do too many – to make one snappish in the morning.
And we understand your irritation. But the business risk tightrope is a difficult one and a white knight means handing control to something which may not deliver.
A 36% drop in pre-tax and pre-interest trading profits is not a sneeze. And investment in the means for LFO to develop its export market will come from profits.
There is no one who would not fervently wish to see LFO grow securely but this has not been the start to the relationship any of the partners would have wished for.
Having said that, Northern Link is an investment company and it is part of Scottish Seafood Investments. That may buffer the hit on the Scottish Salmon Company.
But the LFO employee-owners who were given shares in the Scottish Salmon Company in the sale, will not be able to look forward to much of a dividend in these circumstances.
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Agreed then. Let’s watch this space closely and we’ll no doubt have a discussion in a year’s time when the 2012 accounts are published. Personally, and without detailed knowledge of the Scottish Salmon Company’s financial aspirations, I believe that this will be a positive move for LFO, Scottish Salmon Company, and most importantly, Argyll.
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