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Originally Posted by iceman
CEO leaving. A big surprise. Very short notice and clear he has been pushed. . As I’ve said on this thread for awhile now, SAN's management has made some very bad decisions in the last couple of years and not really making any traction towards the ambitious goals Volker set. Maybe time for a big clean out in management to change the direction !
Must be a massive fallout between the CEO and the board for the last day to be 18 September or one weeks notice.
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Maybe they realised how much quota he was selling and needed to stop him selling an extremely valuable intangible asset. Quota they will never get back which they could have leased. I imagine it has taken years for Sanfords to slowly buy up quota and now it is gone. I say this with very little understanding of the business but can't for the life of me figure out why he would sell any.
Covid-19 would have also put a dampener on the sales to high end restaurants.
Last edited by Aaron; 11-09-2020 at 02:21 PM.
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Originally Posted by Aaron
Maybe they realised how much quota he was selling and needed to stop him selling an extremely valuable intangible asset. Quota they will never get back which they could have leased. I imagine it has taken years for Sanfords to slowly buy up quota and now it is gone. I say this with very little understanding of the business but can't for the life of me figure out why he would sell any.
Covid-19 would have also put a dampener on the sales to high end restaurants.
Agree Aaron. That as well as very bad decisions on vessel purchases with FV Granit and the plastic inshore trawler they bought from Canada. The former has been a total disaster with around $12-15 million (my estimate) spent on it so far and a budget request for another $12-14 million just to try to get it up to scratch. Still catching appallingly. That will take this old heap of ****e up to $60-65 m and they would never sell it for more than $20-25 m.
The plastic ****e they bought from Canada was so badly designed that it never even got licensed to fish in NZ and was quietly written off.
I fear their preliminary (MOU only as far as I know) decision on scampi replacement vessels is of similar quality.
Discl: Happy to be out
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Is it possible that some future re-thinking on the quota system might lead to a revaluation, downwards, of this asset? After all, NZ First may not be around the corridors of power to protect the fishers' interests for much longer!
Disc: Not holding SAN.
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Originally Posted by macduffy
Is it possible that some future re-thinking on the quota system might lead to a revaluation, downwards, of this asset? After all, NZ First may not be around the corridors of power to protect the fishers' interests for much longer!
Disc: Not holding SAN.
That would affect SAN and other industry players in a big way, depending on the changes obviously.
But I can not see that happening and why should it ? In my view NZ and Iceland have the best fisheries management systems in the World. To a large degree, they have managed to do what they set out to do when the QMS was introduced, sustainable fisheries management. No other countries have done it better.
Last edited by iceman; 13-09-2020 at 07:36 AM.
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Fair enough, iceman. I was thinking of the political aspect; the anti-fishing lobby that opposes the industry; the possibility of some tinkering that achieves little but appeases at the expense of quota holders.
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Originally Posted by macduffy
Fair enough, iceman. I was thinking of the political aspect; the anti-fishing lobby that opposes the industry; the possibility of some tinkering that achieves little but appeases at the expense of quota holders.
And you're totally correct. That anti fishing lobby is very strong and misinformed
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Here is a link to an article which is positive about future prospects for Green Lipped Mussel farming and mentions Sanford in passing;
https://www.interest.co.nz/rural-new...deavours-green
Boop boop de do
Marilyn
Diamonds are a girls best friend.
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A big downgrade and a terrible result. I'm glad I'm out. Hopefully they will announce soon who the new CEO will be and how they are going to reset the business !
SAN
05/11/2020 08:33
MKTUPDTE
PRICE SENSITIVE
REL: 0833 HRS Sanford Limited (NS)
MKTUPDTE: SAN: Update on 2020 Full Year Results
5 November 2020
NZX Continuous Disclosure
Update on Sanford 2020 Full Year Results
Sanford Limited (NZX: SAN) wishes to advise the market of certain key
unaudited metrics from its full year results for the year ended 30 September
2020. This is ahead of the release of its full results announcement on
Thursday 12 November, as previously communicated to the market.
Key unaudited metrics: Note 1
o Net Profit After Tax (NPAT): $22.4m, a 46% decrease on 2019 ($41.7m).
o Total Revenue: $468.8m, a 14% decrease on 2019 ($545.1m).
o Adjusted (underlying) Earnings Before Interest and Tax (EBIT): $38.3m, a
41% decrease on 2019 ($64.8m). Note 2
Our earnings reflect the ongoing impacts of the Covid-19 pandemic on
Sanford's sales channels, primarily to food service, as disclosed in our
market update on 2 September 2020.
This result is a continuation of the sales revenue trend which we advised the
market of in September. However, the fourth quarter profitability was
further impacted by the following factors:
o Poorer than expected wildcatch performance in September driven by a lower
than expected Patagonian toothfish catch.
o A lower fair value of salmon stock in water with expected future sales
pricing under pressure.
The result this year is disappointing, and our markets continue to be
challenging and difficult to predict because of the evolving Covid-19
situation. Despite this our cash collection remained satisfactory through
the year and our balance sheet is strong. We continue to assess and make
changes to re-position the business to be more adaptable and match our costs
to the new environment.
For information, please contact:
Fiona MacMillan
GM Corporate Communications
+64 (0)21 513 522
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05-11-2020, 09:10 AM
#100
At least they show remorse - They said The result this year is disappointing,
Seem to say that quite often
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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