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Clean Seas Tuna Upbeat Despite $34M Loss

 

Clean Seas Tuna chief executive Dr. Craig Foster

Port Lincoln company Clean Seas Tuna says it’s on track to deliver a profit in FY15 despite a $34.5 million loss for the last financial year.

Revenues were down 35 per cent to $15.5 million with investors missing out on a dividend.

“The improved operating result was based on enhanced fish health and growth performance, and higher net farm gate returns from kingfish sales and better cost control,” Clean Seas said in a statement.

The loss was higher primarily due to a $29.8 million write down on the carrying value of assets association with its tuna research program, which was suspended in December last year.

Underlying operating loss came in at $4.6 million - improved from the loss of $15.3 million in the previous year.

The main drivers towards the improved result included reducing staff levels from 96 in June last year to 41 in June 2013.

“The company is now entering a new and positive era having overcome the health issues in our fish,” chief executive Craig Foster said in a statement.

“The recent progress of the company has increased our certainty that the fundamentals exist on which to build a significant farming and fresh fish sales business based on yellowtail kingfish production for Australian and international markets.”

In April, the company raised $3.6 million from new and existing shareholders and expects it will need additional capital to fund necessary increase in inventory levels to be profitable in FY15.

Clean Seas said the write down had cleaned its balance sheet, leading the company to “now grow with real value rather than anticipated value.”