Biotech business records positive third quarter
Biotech business , Benchmark Holdings reported its results for the third quarter ending 30 June, with revenues from its continuing operations up 8% year-on-year to £25.5m, despite lower revenues that last year in its Animal Health division.
The Sheffield-based company said this could be attributed to continued good performance in its genetics work and a £2.4m increase in revenues from its Advance Nutrition business as a result of a catch-up on delayed orders as a result of Covid-19. It also highlights that it was continuing with its restructuring programme with the aim of delivering a £10m per year saving from next financial year.
Ultimately the business recorded a loss before tax of £8.5m for the quarter, an improvement on 2019’s figure. However it is continuing to focus on disposing of its non-core assets and exit loss making activities, this has so far see the sale of Improve International to RJD Partners in June for up to £12.75m, as well as the disposal of FishVet and the firm’s vaccine manufacturing facility.
The full disposal programme is expected to generate up to £44m, and when coupled with the firm’s restructuring is a significant step towards it becoming “sustainably profitable”.
Looking ahead, the firm believes the challenges within the shrimp market will continue into the 2021 financial year as will the the salmon industry’s resilience and the stability of the sea bass/bream market. Meaning it will deliver full year results inline with expectations.
Trond Williksen, Benchmark’s CEO, said, “We are very pleased with the significant progress made over the last few months towards the completion of the disposal of non-core assets and the cash proceeds generated. Following the restructuring we are well advanced to become a streamlined, financially strong business wholly focused on our core businesses: Genetics, Advanced Nutrition and Health. We continue to work on our restructuring programme which aims to deliver £10m in annual savings from FY21 taking us a step closer towards our goal of becoming sustainably profitable.
“While the shrimp market continues to experience challenges as a result of Covid-19 the salmon market which underpins our genetics and health businesses remains resilient and overall, we expect to deliver full year results in line with expectations.”
