Tasmanian-based salmon farmer Tassal expects strong growth after delivering record results in 2018-19.
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Tassal increased statutory net profit after tax by 2 per cent to $58.44 million, with operating net profit after tax shooting up by 12.5 per cent to $56.62 million.
Managing director Mark Ryan said Tassal had delivered another record result across all financial metrics and had successfully executed its salmon and prawn growth strategies.
"Tassal's focus on sustainable salmon growth, together with our strategic investment into the De Costi Seafoods distribution operation, and now our diversification into the higher returning prawn business, is expected to underpin strong growth in earnings over the short to medium term, with returns expected to be enhanced over the longer term," Mr Ryan said.
He said there were significant increases in salmon biomass and sales in 2018-19, with "positive pricing outcomes" offsetting increased cost of production.
"The favourable market dynamics have continued into financial year 2020," Mr Ryan said.
"With our salmon business, Tassal will continue to invest in state of the art technology that supports a more efficient business and infrastructure investment will allow Tassal to optimise existing leases, reduce costs and improve margins."
Tassal on Tuesday entered a share trading halt pending an announcement about capital raising.
It requested the trading halt in the lead-up to the announcement about the outcome of a placement of fully paid ordinary shares to institutional, sophisticated and other professional investors.
It intended to follow the placement with a share purchase plan.
"The purpose of the placement is to fund Tassal's strategic capital investment initiatives and strengthen its capacity to continue to invest in feeding and growing salmon to optimise biomass given current favourable growing conditions," Tassal said.
It asked that the trading halt remain until the earlier of the start of trading on Thursday or an announcement about the outcome of the placement.