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2015-08-31

The Scottish Salmon Company: The Scottish Salmon Company PLC Q2 2015 Results

Scottish Salmon Company reports stable Q2 and first half results

-Strong exports point to long term growth-

Highlights

* Net Q2 operating revenues of £31.2m (Q2 2014: £33.8m)
* EBIT/kg before fair value adjustments of £0.33 (Q2 2014: £0.61)
* Harvested 7,349 tonnes (Q2 2014: 8,027)
* Equity ratio 57% (Q2 2014: 49%)
* Highest export levels to date at 49% (Q2 2014: 42%).

The Scottish Salmon Company has reported a stable Q2 2015, with harvest
volumes comparable to the same period in 2014, with exports at record levels.

In Q2 2015 revenues were £31.2m (Q2 2014: £33.8m) on harvested volumes of
7,349 HOG tonnes (Q2 2014: 8,027 HOG tonnes). The results reflect the impact
of unprecedented price volatility, fluctuating exchange rates, and lower
harvest volumes.

Contract volumes remain steady and while spot prices were high at the start of
the year, they fluctuated significantly in Q2. In addition to the expected
seasonal price variance, increased volume available in the market had a
negative effect on price.

EBIT per kg before fair value adjustments decreased compared to the same
period in 2014. Logistical synergies achieved in the quarter have been
offset by a combination of market factors and biological challenges, which
will mean the originally forecasted annual harvest volume of 30,000 tonnes is
being revised downwards by approximately 10%.

The Scottish Salmon Company's international strategy and focused export drive
have been successful in Q2 with export levels reaching 49% for the first
time; while the number of countries exported to, has risen from 17 in 2013,
to 24 today. Growth continues in more established markets such as Europe (Q2
2015: 38% v Q2 2014: 35%), while North America has also shown a steady
increase (Q2 2015: 5% v Q2 2014: 3%), and sales to emerging markets across
the rest of the world have increased by a third compared to Q2 2014.

The Scottish Salmon Company's ability to deliver high quality, premium salmon
consistently year round is fundamental to this success and is the result of
an ongoing capital investment programme to balance production, introduce
husbandry improvements and continually develop all elements of the supply
chain.

Craig Anderson, Managing Director at The Scottish Salmon Company, said, "In
the face of challenging conditions, which are being felt across the wider
industry, these results reflect a stable performance in the second quarter of
2015.

"With greatly increased supply, fluctuating prices, a strong pound, and
biological challenges, Q2 proved to be a testing period, but our harvest
volumes remain on a par with last year and we are confident about long-term
future growth.

"Through a continued focus on building long term relationships with our
customers, increasing harvest volumes, and developing investment in
broodstock and infrastructure, we are confident our long term business plan
will continue to build on our recent momentum."

The Scottish Salmon Company is continuing to invest in the future. Preparatory
work for two new sites at Scadabay and Reibinish in the North has now been
completed and they are due to be stocked in Q3 2015. Plans are also
progressing for a new processing facility in Argyll&Bute; and in North Uist
the native Hebridean broodstock programme is taking a new approach to rear
salmon with 100% Scottish provenance - something which, in time, will provide
a unique selling point to global markets.

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
SSC PLC Q2 2015 Report
http://hugin.info/143286/R/1948853/708058.pdf
SSC PLC Q2 2015 Presentation
http://hugin.info/143286/R/1948853/708063.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: The Scottish Salmon Company via Globenewswire

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