clean seas wage bill jumps 35pc as scaleback o

Clean Seas wage bill jumps 35pc as scaleback of operations continues # October 27, 2010 1:52PM
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CLEAN Seas has had a "difficult'' year and has scaled back its Kingfish operation to cut losses but the bill for key management salaries has received a 35 per cent boost.

Clifford Ashby's appointment as managing director added another $276,000 to the company's wages bill while existing managers received wage increases of up to 10 per cent for the year.

No bonuses were awared for achieving key performance targets.

In its annual report, released today, the company also puts a dollar figure on the accidental poisoning of 80 tonnes of Kingfish.

The mistake will cost the company $700,000 in pre-tax profit next year but chairman John Ellice-Flint said Cleanseas had already reviewed its Kingfish operations with a view to becoming cashflow positive and viable this year.

"In simple terms our production was greater than our sales capacity at farmfgate prices that exceed our cost of production,'' he said.

"Management have reviewed our production levels and reduced our fingerling intake to a level which should result in revised annual production of some 2500-2800 tonnes.''

Mr Ashby said the ``extremely challenging'' year also had some good news for its southern bluefin tuna (SBT) program including a planned early spawning of fingerlings.

The company's $15.6 million loss and $20 million cash operating deficit also ensure it remains dependent on the support of capital markets and its bankers.

While the commercialisation of the SBT lifecycle would give the business a global edge, Mr Ellice-Flint said he was not yet forecasting when success would be achieved.

Shares remained unchanged at 12c at noon.


http://www.adelaidenow.com.au/business/clean-seas-wage-bill-gets-35pc-boost-despite-scaleback-of-operations/story-e6fredj3-1225944255114