We know just what you’re talking about. There’s …

Comment posted Has Loch Fyne Oysters been shucked by the right partner? by newsroom.

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.

Recent comments by newsroom

  • State Guardians / Named Persons a situation out of control
    We accept that this latest story is correct.
    However, an earlier one – that of a family fleeing the Highlands and movong to Edinburgh had so many questions – like the age of the boy concerned; and the fact that Edinburgh is nor necessarily free of state guardians as local authorities in that area were licensed to conduct pilot implementations of the system. Since the government intention is to implement the measure across Scotland, Edinburgh – if the family are not currently living in a place where pilot state guardianships are in train, Edinburgh can offer only short term sanctuary. The boy, we understand may have now reached normal maturity. Given that the state guardian measure was introduced by statute in 2014, the family’s move cannot have taken place much before this time.
    Examples with no more than a peripheral – and even questionable – relationship to the generality of the impact of the state guardian imposition cannot serve to clarify the core abuses this system inflicts on the great majority of safe, loving and responsible families.
    We had first nighlioghtd the ‘Edinburgh move’ story but when we interrogated fully its detail e withdrew the article and made our position clear.
    Nothing gains from insecure tactical claims.
    This is not a tactical issue. It is a moral and political one and its hits at the heart of the sort of family life most of us have been fortunate to enjoy.
    There are far less needlessly damaging, more easily and less expensively achievable means of protecting the fewer [but not few children] who are at risk.
    The Scottish Government introduced covert pilot implementations of this measure despite having assured the concerned Scottish Parliament that there would be no implementations without further consultation.
    It is to the Parliament’s profound discredit that, on so serious a socially transformative matter, it did not make a sustained attempt to hold the government to account on this.
  • State Guardians / Named Persons a situation out of control
    We have used the word ‘fascist’ on some occasions to describe similar undemocratic interventions achieved by force majeure.
    People object to that as well – because everyone imagines fascism and fascists only exist elsewhere, somewhere else.
    However, you might find ‘fascist’ a more accurate and wholly defensible descriptor of your judgment of this particular intervention.
    The OED says of ;fasism’:
    ‘Fascism tends to include a belief in the supremacy of one national or ethnic group, a contempt for democracy, an insistence on obedience to a powerful leader, and a strong demagogic approach.’
  • Oban Bay Marine – and its 52 paid-up business supporters – go public for Oban’s marina
    The plan for the transit marina has kayak steps built into the town-facing shoreside rock armour, to support local kayak teaching and expedition businesses.
  • Oban Bay Marine – and its 52 paid-up business supporters – go public for Oban’s marina
    It is indeed a very serious issue.
    With public funding about to tighten again for a few years and with Argyll’s falling population and inept economic development unable to attract more substantial state funding, getting that ¬£2m spent on the transit marina and seeing it up and working for the 2016 season really is Oban’s last chance for a decade to get new energy and an earner to carry it over and build for the future.
  • Scotland’s Big Voice and the ‘One Vote’ fight for the Union
    http://news.nationalpost.com/2014/09/22/alex-salmond-suggests-scotland-can-unilaterally-declare-independence-without-another-referendum-claims-no-voters-were-tricked/

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9 Responses to We know just what you’re talking about. There’s …

  1. 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?

    Like or Dislike: Thumb up 0 Thumb down 0

  2. 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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  3. 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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  4. 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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      • 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.

        Like or Dislike: Thumb up 0 Thumb down 0

        • 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.

          Like or Dislike: Thumb up 0 Thumb down 0

          • 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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