Information within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014 and Article 7 of the UK version of EU Regulation 596/2014 which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018.
23 May 2023
Benchmark Holdings plc
(“Benchmark”, the “Company” or the “Group”)
Second Quarter and Interim results for the six months ended 31 March 2023
Strong Q2 and H1 results continuing track record of quarterly growth and strategic delivery
Benchmark (LSE: BMK), the aquaculture biotechnology company, announces its unaudited interim results for the six months ended 31 March 2023 (the “Period” or “H1 FY23”). The Company also announces its unaudited results for the three months ended 31 March 2023 (“Q2 FY23”) in compliance with the terms of its unsecured Green bond.
Financial highlights
• Excellent H1 FY23 results driven by good performance in all business areas:
o 25% growth in revenues to £98.9m (H1 FY22: £79.2m)
o 39% increase in Adj. EBITDA to £22.1m (H1 FY22: £15.9m)
o 47% increase in Adj. EBITDA excluding fair value (“FV”) movement in biological assets to £21.8m (H1 FY22: £14.8m):
Adj. EBITDA margin excluding FV movement in biological assets increased to 22% (H1 FY22: 19%)
o 193% increase in Adj. Operating profit excluding FV movement in biological assets to £11.4m (H1 FY22: £3.9m)
o Further reduction in loss before tax
o Operating cash inflow £9.5m (H1 FY22: cash inflow of £2.0m)
• Strong Q2 FY23 performance building on track record of continuous quarterly improvement:
o Revenues +13% to £44.4m (Q2 FY22: £39.2m)
o Adj. EBITDA +32% to £11.1m (Q2 FY22: £8.4m); Adj. EBITDA margin of 25% in line with medium term target set in May 2022
o Adj. EBITDA excluding FV movement in biological assets +32% to £9.7m (Q2 FY22: £7.3m); Adj. EBITDA margin excluding FV movement in biological assets of 22% (Q2 2022: 19%)
o Adj. Operating profit excluding fair value movement in biological assets +244% to £4.5m (Q2 FY22: £1.3m)
• Net debt (excluding lease liabilities) continues to reduce to £44.5m (30 September 2022: £47.5m; 31 March 2022: £50.6m):
o Cash of £41.9m and liquidity (cash and available facility) of £53.9m at 22 May 2023
Business Area highlights
• Genetics – strong performance in core salmon business and strategic progress in growth areas:
o H1 FY23 Revenues +30% driven by higher salmon sales from Norway and Iceland; 181m salmon eggs sold (H1 FY22: 134m)
o Continued commercial progress in Chile with new customer wins
o Obtained “disease free compartment status” from the Chilean regulator, an important biosecurity endorsement which will enable the Company to export salmon eggs from Chile
o Completed configuration at Salten, Norway facility to reach 150m salmon eggs production capacity from FY24 (currently 140m), ahead of plan
o Total salmon egg capacity now 400m eggs, comprising 150m in Norway, 200m in Iceland and 50m in Chile
o Strengthened scientific team to progress positioning on new technologies; enhanced genotyping capabilities
• Advanced Nutrition – strong performance despite soft shrimp markets demonstrates success of commercial focus and agile operation:
o Marginally lower revenues in Q2 FY23 albeit 8% higher revenues for H1 FY23 as a whole
o Strong performance in marine fish species which represent c.25% of revenues
o Uplift in shrimp market expected as inventory levels normalise along the global supply chain and consumer confidence improves
• Health – strong result from combined sea lice product portfolio and integrated commercial team:
o Continuing adoption of Ectosan® Vet and CleanTreat® supported by excellent efficacy resulting in H1 FY23 sales of £12.9m, up 50% on last year
o Progress on development of streamlined integrated CleanTreat® infrastructure with partners MMC and Salt Ship Design
o Strong sales of Salmosan® Vet driven by success of new marketing label
Current trading and outlook
• On track to deliver strong growth for the year in line with market expectations:
o Good visibility of salmon egg sales from Norway and Iceland
o Market conditions in shrimp are expected to remain unchanged in the short term; well positioned for resilience and market share wins. Positive backdrop in the Mediterranean marine fish market
o Expect Q3 FY23 sales from Ectosan® Vet and CleanTreat® to reflect low sea lice treatment season, thereafter increasing in Q4 FY23
• Update on Oslo Børs uplisting:
o Consultation with shareholders regarding a potential delisting from AIM and uplisting to Oslo Børs completed
o Plan to maintain a dual listing on Euronext Growth Oslo and on AIM for the foreseeable future. Uplisting to Oslo Børs will be reviewed as part of ongoing strategy to enhance Group positioning and share performance
Trond Williksen, CEO, commented:
“Benchmark had an excellent first half, delivering double digit growth. We continue to focus on achieving profitability and cash generation whilst making good progress towards our medium-term objectives; we remain on track to deliver strong growth for the year in line with market expectations.
“Our fundamentals are strong and we have significant opportunities to continue building our track record of consistent growth. Aquaculture is a growth industry, supported by robust megatrends. Benchmark is well positioned to play an important role in helping the aquaculture industry deliver sustainable growth and meet the needs of a rising population.”
Presentation for analysts and institutional investors at 08.00 UK time (09.00 CET)
Trond Williksen, Chief Executive Officer and Septima Maguire, Chief Financial Officer will host a presentation for analysts and institutional investors on the day at 08.00 UK time.
The presentation will be held in person at Pareto Securities offices in Oslo at Dronning Mauds gate 3, N 0250 Oslo, Norway. If you would like to attend in person, please contact Thea Naess at thea.naess@paretosec.com.
A live webcast of the presentation will be available for analysts and investors to join remotely at the following link: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20230523_3
A copy of the presentation can be found on the Company’s website https://www.benchmarkplc.com/investors/reports-presentations/
Equity Development webcast at 12.00 UK time
Trond Williksen, Chief Executive Officer and Septima Maguire, Chief Financial Officer will host a second webcast for retail investors and wealth managers on the day at 12.00 UK time. The webcast is open to all existing and potential shareholders.
To register please visit: https://www.equitydevelopment.co.uk/news-and-events/benchmark-
2qresults-presentation-23may2023
A recording of the presentation will be available after the event on the Equity Development website.
Enquiries
For further information, please contact:
Benchmark Holdings plc benchmark@mphgroup.com
Trond Williksen, CEO
Septima Maguire, CFO
Ivonne Cantu, Investor Relations
Numis (Broker and NOMAD) Tel: 020 7260 1000
Freddie Barnfield, Duncan Monteith, Sher Shah
MHP Tel: 020 3128 8990
Katie Hunt, Reg Hoare, Veronica Farah benchmark@mhpgroup.com