The loss attributable to underlying operations for the year was A$13.043 Million (2011 loss A$14.731).
This result is extremely disappointing especially given the positive expectations from moving to new sites for grow-out. It is equally disappointing in that the results are similar to last financial year, but calls for new and challenging initiatives to profitably reposition the Company.
The losses are not sustainable and the Company has previously reported that it undertook a review of its operations and overall strategic direction in response.
Based on this extensive review, the Board has concluded the need to progress securing new partners and/or rationalisation of assets to ensure support for our primary objective of Southern Bluefin Tuna propagation.
Action plans now underway include seeking a joint venturing arrangement (“JV”) or partial sale of our yellowtail Kingfish operations, sales of surplus assets, a consolidation of our Kingfish activity with consequent right-sizing of operational needs and an accelerated advancement of our projected SBT spawning timing to October 2012. These activities are underpinned by cost reduction strategies across the business resulting in an unfortunate but necessary reduction in numbers of people in our workforce.
To facilitate the partial sale or JV of the Kingfish business and to assess a range of financing strategic initiatives for Clean Seas Tuna, the Company has appointed a specialist Investment advisor, BBY Limited, to assist us in this task. This process is underway and is anticipated to be completed by the end of the calendar year.
The Company had A$3.855 million cash as of 30 June, 2012 and has sufficient cash to conduct the business into calendar year 2013. We expect to use further surplus asset sales and existing cash reserves to support the Company to the point when we have restructured and refinanced the Company.
Our ongoing cash requirement will be reduced by the targeted JV or partial sale of the Kingfish business and further reductions in operational costs. We may also seek to extend our business activities further into tuna “catch and grow” to provide further opportunities to improve the Company’s financial performance.
We believe that the Company will move through these difficult times to realize the initial goal of commercially producing propagated Southern Bluefin Tuna. The major risk that may influence the chance of realizing our restructure will be the ongoing health of the remaining Kingfish stock.
