Listed biotech firm’s performance ‘below expectations’
Revenues from continuing operations at Sheffield-based biotech firm Benchmark Holding are expected to be around £127m, 3% below the prior year (2018: £131.6m).
The company, which specialises in aquaculture health, nutrition and genetics, has released its quarter four and full year trading update, as well as its Notice of Results.
These show that total revenues, including continuing and discontinued operations, are expected to be about £148m, down 2% (2018: £151.5m).
Benchmark said its performance in the year was “significantly affected” by conditions in the shrimp and Mediterranean sea bass/bream markets, as well as by changes and delays in its programme of commercial scale trials for some of its pipeline products.
Its update notes: “2019 was a challenging year for Advanced Nutrition.
“Our main customers faced challenges in their shrimp business with declining prices and negative margin development, leading to reduced production, with an impact on demand for our products.
“Production in all major shrimp markets contracted in 2019, with the exception of Ecuador which showed strong growth, and shrimp prices fell to their lowest in 30 years (in real terms, inflation adjusted).
“As a result, revenues in Advanced Nutrition are expected to be down about 10% to £77m (2018: £85.7m). Margins in the division are also expected to be lower than the previous year.”
Peter George, executive chairman, said: “It is disappointing to report a performance which is below that expected at the beginning of the financial year largely due to market conditions in Advanced Nutrition.
“Following the management changes announced in August, the company has accelerated its programme of efficiencies including the disposal and exit from non-core businesses and the implementation of a cost saving plan.
“The market has a growing need for solutions that improve the sustainability of food production in aquaculture. Benchmark’s focus on delivering products and solutions that improve animal health and welfare, and that reduce environmental impact, positions it as a leader in improving sustainability standards in aquaculture.
“While the timing of the recovery in the shrimp and seabass/seabream markets is uncertain, I remain confident the actions we are taking and the products we are launching will move the Group from its R&D investment phase into commercial profitability.”
Benchmark will announce its full results for the year ended 30 September 2019 in the week ending 20 December 2019.
