Angel Seafood Holdings Ltd (ASX: AS1) has released its activities update for the period ending 31 December 2018. The company reported sales of $1,376,591 in the Q2 FY19 which is 240 percent higher than the previous corresponding year. Following this news, the share price of the company increased by 8 percent as on 25 January 2019.
In CY 2018, the company reported total sales of over $3 million which is around 64% higher than the sales achieved in CY17 and close to a 700 percent increase on the CY16 sales. While commenting on the strong sales outcome of the company, Angel’s CEO and founder Mr. Zac Halman said that the company’s team have delivered a fantastic sales result in the Company’s first year since listing on the ASX, exceeding all expectations. He further told that, despite operating in a challenging farming environment, the company has demonstrated the scalability of its business model that continues to gain momentum through the company’s multi-bay farming model.
During the quarter, the company completed the processing facility enhancements and lease expansion in Coffin Bay. The company also completed the delivery of the new large oyster-tender and extension of the export facility in Port Lincoln to include a Head Office. During the quarter, the company also expanded its operations in Coffin Bay by acquiring 3.5 Hectares (ha) of prime water. The company’s water holdings increased to 70 Ha across the Eyre Peninsula, which has increased the growing capacity of the company to 20 million oysters per annum and the ability to condition over 9 million oysters per annum.
In Q3 FY 2019, the company is going focus on husbandry of stock in the water and maintenance of the lease infrastructure. Oysters generally become unfit for sale throughout January and February due to the natural cycle of oysters (spawning), which is why the company is expecting its sales to start in March and then strengthen into the Q4 of the financial year.
During the quarter, the company received an excellent supply of spat, and it is expecting the spat market will continue to improve throughout CY19. After completing the Port Lincoln and Cowell facilities, the company will be focusing on growing as many oysters as possible for both the domestic and export markets throughout the remainder of FY 2019 and into FY 2020.
While commenting on the outlook for the company, Mr. Halman told that the company will continue to sell its products into the domestic market while there are strong demand and buoyant prices. He also informed that the company has already started exporting oyster samples to various destinations. Now the company will focus on the meticulous execution of its business plan as it builds the foundations of a very strong oyster business to capitalize on the significant market opportunities.
Today, the company also announced regarding the Vesting of Performance Rights. At the time of initial ASX listing of the company, Mr. Zac Halman, was granted 4,000,000 Performance Rights. Based on management accounts to 31 December 2018, the Company’s Board has determined that the required Milestone has now been triggered and the Board has directed the Company’s auditor to conduct audit tests to verify the relevant revenue. As per the Company’s Replacement Prospectus dated 13 December 2017, the Performance Rights shall vest on achievement sales revenue of at least $3,000,000 for any rolling 12-month period.
Meanwhile, in the past six months, the share price of the company decreased by 19.35 percent as on 24 January 2019. AS1’s shares traded at $0.135 with a market capitalization of circa $15.77 million as on 25 January 2019 (AEST 4:00 PM).
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