Clean Seas founder Hagen Stehr takes the blame for failed kingfish gamble

Clean Seas Tuna director Hagen Stehr at a feeding barge in Port Lincoln. Picture: Simon Cross Source: The Advertiser

Taking a back seat as a regular director for the first time at yesterday's annual general meeting in Adelaide, Mr Stehr was on the front foot when a shareholder criticised the board for its "inexcusable disconnect'' between kingfish sales and production levels.

"I take the blame of having too much money in this so I take the blame,'' he said.

"I just wanted to prove you could do more than 300 tonnes  we had 6000 tonnes. I am sorry and I should be crucified for it, but we will never do it again.''

Clean Seas said overproduction of kingfish was a significant factor in the company's $15.6 million after-tax loss last year and announced changes that would reduce its exposure.

Chairman John Ellice-Flint said in September the company was pegging back its production to 2500-2800 tonnes to ensure it avoided a repetition, but was yesterday saying the target was now only 2400-2600 tonnes for the "high premium end''.

Mr Stehr also said the person responsible for the accidental poisoning of 80 tonnes of kingfish  costing the company $700,000  ``should be shot''.

Managing director Clifford Ashby foreshadowed the need for a rights issue next financial year and said the company would take on additional debt in the interim.

"We have a capital management plan in place the board has come up with and no doubt we will be looking at a capital raise but our aim is not to dilute shareholdings  in other words, as very little dilution as possible,'' he said.
"That's one of the avenues.

"Another avenue we're looking at and that we've gone quite far down the path of is debt.

"I don't believe the company really should take on debt, but we are looking at a facility that will tide us over to any capital raisings and we will only be looking at a capital raise after a successful spawning season.''

Clean Seas unveiled a $54 million capital management plan in October last year, $12 million of which was to be used to cut debt levels.

The company reported $6.1 million of borrowings at June 30, but said it was debt-free in September.