Biotech firm narrows losses as it focuses on innovation and sustainability
AIM-listed biotech firm Benchmark Holdings has seen its half-year financial results improve on last year due to improved trading over a period where it has invested in a new facility and new technologies to focus on sustainability and innovation.
The Sheffield-based aquaculture health, nutrition and genetics business this morning announced half-year results to 31 March 2018. Revenue increased by 9% to £75.7m, up from £69.2m in H2017. Its pre-tax losses narrowed from £8.9m to £5.6m.
The firm has seen growth in its nutrition and genetics divisions; increasing sales of higher margin, technical products. Benchmark said it had seen a reduction in finance costs in the period as a result of foreign exchange movements in USD denominated borrowing. It also received a £9.2m tax credit (H1 2017: £700,000) due to reduction in the tax rates in Belgium.
Net debt increased to £41.3m, primarily due to £15.1m capital expenditure. This included a £8.6m investment in its Salten facility in Norway and investment associated with the field trials of the new sea lice treatment.
Speaking to TheBusinessDesk.com this morning, Peter George, chairman of Benchmark, said the firm was currently bringing a “revolutionary” new sea life product through a route to market, which it expects will generates £45m in sales annually once it has a licence in place around 2020.
Malcolm Pye, CEO of Benchmark, said the firm was very pleased with the results, which indicated a growth trajectory that was heading to net profitability in the coming two years. He said: “The global market is growing and it is one of the most exciting markets to be working in. We are a technical provider and that’s a market that has seen long-term growth.
“Fundamentally, the growth in healthy eating and the growing population are drivers for our business”
Pye added that demand for healthy products and vaccines with fish egg ingredients was outstripping natural supply and therefore a growing need for aquaculture. He said: “The Group has delivered good organic revenue growth and improving profitability on an adjusted basis, while we continued to invest in our pipeline of new products and infrastructure.”
“The outlook for the Group is positive as the drivers for our business are stronger than ever before, with continued growth in aquaculture and increasing recognition from consumers, producers and regulators of the need for sustainable solutions to enable future growth.”
Benchmark said that during the period, its commercial scale field trials of Benchmark’s new products was continuing in Norway; increasing interest from leading producers and it saw a 16% revenue growth in Advanced Nutrition driven by high demand for specialist diets and health products in most markets and particularly in India.
On 8 June 2018, Benchmark announced a breeding and genetics joint venture with Empresas AquaChile and placing to raise £19m. Pye added that contracts were now agreed and venture would be live this week.
