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Clean Seas Tuna Yellowtail Kingfish Production Proceeding Well

11 November 2013

AUSTRALIA - Clean Seas Tuna has reported that its programme to increase annual yellowtail kingfish production to in excess of 1,500 tonnes by the 2015 financial year is proceeding well, with Year Class 2013 production growing more strongly than forecast and with continued excellent survival rates.

The company confirmed Year Class 2014 Yellowtail Kingfish fingerling production is also on target for the production and transfer to sea of some 650,000 fingerlings this season compared to YC 2013 fingerling production of some 225,000 fingerlings.

Anticipated First Half FY 2014 Results

With the continuing operational improvement in the Yellowtail Kingfish division and as a direct consequence of the receipt of $6.157 million as a R&D rebate claim announced to the market on 21 October 2013, the company expects to report an after tax profit for the first half of 2014.

The company’s after tax loss of $34.1 million for the prior corresponding first half 2013 period included an impairment charge of $29.7 million primarily due to the write down of investment in our Southern Bluefin Tuna (“SBT”) lifecycle assets and program, leaving a $4.4 million underlying loss from Yellowtail Kingfish operations. The company does not expect any impairment charges in the current year.

For the current first half 2014 period, based on current performance, the company expects an
improvement in underlying earnings. Including the $6.157 million R&D tax rebate, after tax profit is expected to be in the range $1.5 million to $3.0 million for first half FY2014. 

The company’s earnings are seasonal, with higher earnings recorded in the second half of each financial year due to higher fish growth rates during Summer and Autumn when the seawater
is warmer.

Anticipated FY2014 Results

The full year FY2014 results will include the $6.157 million R&D rebate received in October 2013, and an allowance for an additional smaller R&D rebate claim for 2014. The anticipated R&D rebate for 2014 will be included in the current year results now that the company has formalised its R&D accounting and with turnover below $20 million.

The FY2014 results are also expected to include an abnormal non-cash income item in February 2014 arising from a $3.9 million credit for deferred income. This deferred income is expected to arise on completion of reporting and other obligations in relation to an AusIndustry grant received in respect of the establishment of its SBT program, the costs of which were written off in 1st Half FY2013.

Cash Position & Requirements

As at 30 September 2013 the company’s cash position was $3.23million. Since that date, the
company has received the $6.157 million R&D rebate and anticipates receipt of at least a further net $5.5 million from the underwritten Share Purchase Plan issue which is due to close on 26 November 2013.

The company is now in a sound financial position and is continuing to benefit from materially
improved operating performance from its Yellowtail Kingfish division.

The anticipated cash position at 31 December 2013 is forecast to be adequate to fully fund the company’s increased Yellowtail Kingfish production targets.

The company is pleased to be able to confirm to shareholders these positive developments arising from improved performance strategy.

TheFishSite News Desk

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