Angel Seafood's (ASX: AS1) multi-bay approach to oyster farming has paid off in the first half, with the sustainability-focused group achieving record sales in the period.
AS1 sold a record 5.1 million oysters in the half, up 55 per cent on the previous corresponding period, with the lift driving a 52 per cent boost in revenue to $3.8 million.
But the best might be yet to come for Angel Seafood, with the company now aiming to double production capacity to 20 million oysters per annum at its South Australian farms and improve profitability.
The company's net profit after tax (NPAT) also spiked, up 85 per cent to $718,543 in the half.
Angel Seafood CEO and founder Zac Halman said the results came after a period of significant progress and development for the company.
"Despite the challenging trading conditions that continued over this period, we delivered record sales and a positive bottom-line result. This is a fantastic outcome and demonstrates the underlying strength of our business and the continued demand for oysters," Halman said.
"In November we unveiled what the next phase of growth will look like for Angel. Over time we will aim to double production capacity to meet the growing demand and improve our profitability.
"We have already started the work towards these growth ambitions by acquiring additional water leases and launching a number of innovative farming methods to improve farming efficiencies."
Those ambitions are already coming to fruition, with the company having made a $380,000 investment in oyster spats (the structures on which oysters grow) during the six-month period.
In addition to purchasing traditional spats, Angel has procured and begun trials with a spawnless triploid spat that would be available during summer, extending the sales season to be year-round and potentially adding 10-15 per cent to annual sales revenue.
At the end of the half Angel embarked on a successful $4 million placement to accelerate the group's growth plans.
The company also secured an increase of $1 million to its working capital facility with NAB with the limit now standing at $3 million.
The company says it is entering 2021 in a strong position with growth plans in place.
"The 2021 sales season is expected to commence around March and Angel anticipates a sound supply of oyster sizes available to cater for restaurant and retail demand," says Angel.
"Following an early than usual spawning season experienced in Coffin Bay, some stock has started regaining condition ahead of schedule, resulting in some sales in the first quarter, albeit at a reduced scale."
Shares in AS1 are up 3.45 per cent to $0.15 per share at 11.10am AEDT.Never miss a news update, subscribe here. Follow us on LinkedIn, Instagram and Twitter.
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