Weak markets hit biotech firm’s quarterly results

AIM-listed biotech firm Benchmark Holdings has seen its Group revenues from continuing operations fall 15.5% below the prior year’s results.

The Sheffield-based aquaculture health, nutrition and genetics business has published its quarter one results for the three months ended 31 December 2019, noting that its figures have been hit by continuing market weakness in Advanced Nutrition.

The company reported revenue from continuing operations of £25m, compared to £29.6m the previous year. Adjusted EBITDA from continuing operations saw a loss of £2m.

Loss before tax from continuing operations is £5.9m, similar to the previous period.

Benchmark says it is accelerating its restructuring and cost savings plan to offset the continuing impact from adverse shrimp markets.

Overall it says it expects to deliver on expectations for the full year, and reports a positive performance and outlook in its Genetics division.

Peter George, executive chairman, said: “As expected, our first quarter saw a continuation of the trends reported at year end, with weak shrimp and Mediterranean seabass/bream markets affecting Advanced Nutrition and outweighing a good performance in Genetics.

“So far the impact from coronavirus has been minimal but we remain cautious given our exposure to the Asian end markets.

“The submission of our regulatory dossier for BMK08, our novel sea lice treatment is a significant milestone. Following the recent fundraise we are in a strong financial position to prepare for the commercial launch.”

Benchmark says it is monitoring the potential impact of the Coronavirus on its business.

Its update explain: “The coronavirus has led to a suspension of shrimp imports to China, affecting shrimp producers principally in Ecuador and India.

“In addition, shrimp production in Vietnam and Thailand has decreased as a result of preventative measures constraining activities and consumption across Asian markets has declined.”