For a sector that has heaped heartbreak on investors over the years, ASX-listed seafood exposures now present an ocean of choice to investors. Most of the expanding school of piscatorial plays are export-oriented – or aspire to be – and leverage Australia’s image of having pristine waters.
Salmon farmer Tassal (TGR) is looking to raise up to $100 million to expand its Tasmanian operations as it moves away from a strong retail bias towards developing a bigger presence in the more profitable wholesale markets (food service businesses). The fund raising comes after the company has self-financed a $135 million spending spree on acquisitions and new facilities since 2015.
Atlantic Salmon producer, Tassal Group (ASX: TGR) has caught our eye recently. Although the business does not have a great economic track record, it appears that performance has been steadily progressing, following a period of substantial capital investment and management focus, and the half year result just released shows a continuing improvement trend.
Full year earnings guidance calls for a result of around $21m and the broker sees meeting this expectation as a solid step for the company, particularly as the second half of the year will show a stronger result than the first half.