PROFILE

Premier Fishing and Brands Ltd (Premier or Premier Group) listed on the JSE in March 2017. Premier has been in existence since 1952 and is the largest 100% black-owned and managed fishing company in South Africa. The Premier Group holds medium to long-term fishing rights in south coast rock lobster, west coast rock lobster, small pelagics, hake deep sea trawl, hake longline and squid. It also owns an abalone farm, invests in organic agriculture and processes wild abalone. In addition, Premier owns 50.31% in Talhado Fishing Enterprises (Pty) Ltd (Talhado), the largest squid company in the country, which is based in Port Elizabeth. The Premier Group also invests in organic agriculture through the Seagro range of products.

Premier aims to:

• implement innovative procedures within the value chain to increase efficiency in line with environmental best practices, thereby reducing its carbon footprint;
• invest in reliable technology which allows it to reduce mortalities of live lobster reserved for the export market, therefore contributing to achieving the best market price;
• develop all its employees by offering training and development and bursary programmes;
• assist small businesses to grow and achieve their full potential; and
• ultimately deliver sustainable returns to all stakeholders.

2018 OPERATIONAL PERFORMANCE

When Premier listed on the main board of the JSE on 2 March 2017, the Premier Group raised capital of R526m by issuing 117 million new shares. The capital raising strengthened Premier’s balance sheet with additional cash reserves which are being utilised on major capital projects, being the abalone farm expansion and acquisitions of other fishing companies.

During the year under review, Premier delivered excellent growth in operating earnings. Despite the strengthening of the rand against the US dollar, Premier managed to increase its operating profits by 41% compared to the prior year. This increase was as a result of tighter cost controls in all of its operations as well as improved operational efficiencies through more efficient catch planning and improved pricing across all the Premier Group’s divisions.

The abalone division maintained its operating profits for the year under review and significantly augmented its stock holding, which positions it well for the further expansion of the farm going forward. The abalone farm increased its production capacity to 145 tons from 130 tons in the prior year.

VISION 2020 VISION – PREMIER’S CONTRIBUTION

Following the strategic planning session held in 2015, it was agreed that Premier’s primary objective is to focus and align efforts across the business to deliver on its long-term goals and a five-year strategic plan to the year 2020 was implemented. The strategic plan has clear deliverables, strategic actions for each strategic lever, as well as detailed clear time frames.

Below is the high-level outline of the Vision 2020 Vision strategic goals:

• Expansion of the abalone farm and capital expenditure to improve production and revenue
• Drive an efficient cost base
• Construct/acquire a processing facility
• Acquire a canning facility
• Product diversification to further penetrate foreign markets which includes the procurement of fish species for local and international markets and enhanced marketing capacity
• Continuous growth of outside quota holders
• Increase enterprise development initiatives
• Acquire another fishing business
• Explore new green energy alternatives, with emphasis on the efficient use of water and electricity while exploring green alternatives

2018 Achievements:

• The acquisition of a 50.31% stake in Talhado Fishing Enterprises (Pty) Ltd
• The construction of Premier’s new hatchery at the abalone farm was completed and it is anticipated to produce six million animals per year.
• Premier doubled its spat production on the existing hatchery from an average monthly production of 100 000 animals per month to 200 000 animals per month
• 40 tons of additional holding capacity was installed for the farmed abalone increasing the stock holding by 20 tons from the previous financial year
• Increased factory utilisation through the newly established trading operation
• Implemented a centralised procurement for the entire Group
• Revenue increased to R491m from R411m in 2017
• Profit after tax increased to R95m from R68m in 2017

PROSPECTS AND FUTURE OUTLOOK

The following prospects have been identified:

• Acquisition of additional fishing companies as part of the Vision 2020 Vision strategy
• The procurement of fish species for local and international markets
• The enhancement of the Premier Group’s marketing capacity
• An exploration of other growth opportunities that exist in the market
• Product diversification to further penetrate foreign markets
• Employment for 200 additional employees to be created at the abalone farm
• Further expansion of the abalone farm through a phased approach
• Further increase the abalone spat production once the expansion of the abalone farm is completed
• Increase partnerships with outside quota holders
• Continue to explore innovative fishing and production techniques
• Premier is well positioned for growth over the next two years to further unlock shareholder value.

FOOTPRINT

Premier has operations in Western Cape, Overberg Region, Saldanha Bay, Hout Bay, Eastern Cape, Humansdorp, the USA, Asia, and Europe.

PRODUCTS AND BRANDS

Through its various business activities, Premier offers the following products and services: sales, marketing and production of west coast rock lobster, south coast rock lobster, abalone, small pelagics, longline hake, squid and Seagro (organic fertiliser).