Benchmark reports marginal revenue growth amid challenges

Published 12/12/2024, 06:04 pm

LONDON - Benchmark Holdings PLC, an aquaculture biotechnology company, reported a slight increase in total revenue for the fourth quarter of the fiscal year 2024, ending September 30. The company announced unaudited quarterly results, showing revenues of £36.8 million, a 1% increase year-over-year at actual exchange rates, and a 7% increase at constant exchange rates (CER).

The Advanced Nutrition business saw a 9% revenue increase (17% CER), despite tough global shrimp market conditions. However, the Health business experienced a 66% revenue drop compared to the same quarter last year, attributed to a pause in Ectosan® Vet and CleanTreat® activities and the decommissioning of two CleanTreat® systems.

The Genetics business, which is considered discontinued following its post-period end disposal, reported a 2% revenue increase (7% CER). This was partly due to the early harvest of the Spring '23 generation, which helped offset lower salmon egg volumes sold.

The company's revenue from continuing operations was £19.6 million, slightly down by 1% from the previous year, but up 6% on a CER basis. Adjusted EBITDA from continuing operations increased by 20% to £1.6 million, but when including discontinued operations, total adjusted EBITDA, excluding fair value movements from biological assets, decreased by 22% to £6.9 million.

Benchmark also reported a statutory operating loss from continuing operations of £20.8 million, a significant decline from the £6.8 million loss in the same quarter of the previous year. The loss before tax from continuing operations also widened to £25.1 million, compared to £10.9 million in the prior year. The loss for the period, including discontinued operations, was £20.4 million.

As of December 11, 2024, the company's cash and cash equivalents stood at £15.2 million, with available liquidity at £26.5 million. Net debt was reported at £49.0 million after transferring £22.3 million into assets and liabilities held for sale.

Looking forward, Benchmark's Advanced Nutrition sector anticipates improvement throughout the year, supported by a higher quality Artemia harvest and actions taken to strengthen commercial efforts and operational efficiency. The Health business has started the year well, with Salmosan® Vet positioned to address sea lice challenges in the aquaculture industry. The company also plans to focus on simplifying and streamlining its Group structure, which could lead to significant cost savings.

This financial summary is based on a press release statement from Benchmark Holdings PLC.

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