TIDMBMK
RNS Number : 5406G
Benchmark Holdings PLC
07 November 2018
7 November 2018
Information within this announcement is deemed by the Company to
constitute inside information under the Market Abuse Regulations
(EU) No. 596/2014.
Benchmark Holdings plc
("Benchmark", the "Company" or the "Group")
Trading Update and Notice of Results
Significant growth and earnings ahead of expectations
Delivery on strategic projects that will drive future growth and
profitability
Benchmark, the aquaculture health, genetics and specialist
nutrition business, is pleased to provide the following trading
update for the year ended 30 September 2018.
Highlights:
Significant growth in revenues and underlying profit ahead of
market expectations*:
-- Revenues above GBP150m (unaudited) (2017: GBP140.2m), a growth of c.7%
-- Adjusted EBITDA** above GBP16.5m (2017: GBP10.0m), a growth of 65%
*Company compiled consensus of revenues of GBP156m and EBITDA of
GBP15.8m
**Adjusted EBITDA is earnings before interest, tax,
depreciation, amortisation, exceptional items and acquisition
related expenditure
Trading
2018 was a successful year for Benchmark with underlying
earnings ahead of market expectations and delivery of strategic
projects that will drive future growth and profitability. In
addition, during the period, the Company strengthened its Board and
management team and implemented a new operational structure that
has significantly enhanced integration and development of synergies
across the Group.
Our results reflect strong performances in Advanced Nutrition
and Genetics driven by increased sales of our innovative products,
and very encouraging progress in AquaHealth:
-- In Advanced Nutrition, earnings growth was driven by sales of
our premium specialist diets for shrimp and sea bass and sea bream.
Our increased trading required a higher level of working capital, a
feature of our growing business.
-- In Genetics, our investment in developing disease resistant
salmon eggs has translated into our continued market penetration
and growth, with demand for our sea lice resistant eggs
outstripping supply. Our recently completed Salten facility is
designed to address this demand and allow for further growth.
-- In Health, the Group achieved significant milestones towards
the full commercial launch of Ectosan Cleantreatâ, our next
generation sea lice treatment. We have now conducted 14 very
successful trials in Norway with three of the world's leading
salmon producers showing 100% efficacy and no environmental impact.
Sea lice continues to be the single largest recognised challenge in
the salmon industry, and feedback from customers point to the
potential for broad adoption of our solution.
Progress on Strategic Projects
During the period we concluded and progressed a number of
strategic projects which underpin future growth and place us in a
stronger position to capture the large opportunities in our
markets. These projects included:
-- Chile JV - In June, we announced a JV with AquaChile, the
largest salmon producer in Chile, to accelerate and de-risk
Benchmark's strategy in Chile, the world's second largest salmon
market. The JV, which was immediately earnings enhancing, is
progressing well with team integration complete and operational
progress as planned.
-- Salten - in September we announced commencement of production
at Salten, our new state of the art, bio-secure, salmon egg
production facility in Norway. It increases Benchmark's in-house
production capacity by 75%, enables an increase in our ability to
deliver year-round supply of salmon eggs, an important advantage in
the market, and is expected to enhance profitability.
-- Additionally, we have reviewed our operations and pipeline of
new products which resulted in the re-prioritisation of R&D
spend and the rationalisation of certain non-core activities,
including closure of two sites in our veterinary services business
and disposal of certain technical titles in our publishing
business.
Outlook
Market conditions in our core salmon and shrimp markets remain
favourable and the outlook is positive, with strong demographic and
sustainability drivers, and an increasing trend towards
professionalisation and consolidation amongst customers. This,
combined with an increasing recognition of the role that our
innovative products can play in boosting yield, quality and
sustainability, provides us with confidence in the future
outlook.
Notice of Results
Benchmark will announce its full year results for the year ended
30 September 2018 on Thursday, 24 January 2019. An analyst meeting
will be held on that day at 9.30am at the offices of MHP
Communications, 6 Agar Street, London WC2N 4HN. To register your
interest, please contact benchmark@mhpc.com.
Malcolm Pye, Chief Executive of Benchmark, said:
"We performed well during the year. We have delivered revenue
and profit growth, while undertaking significant strategic projects
that have enhanced our position in our key markets and provide a
strengthened platform for the future.
"This together with the continued progress in our pipeline and
corporate structure leaves us well placed to address the
significant opportunities in our markets, which have stronger
drivers than ever before amid increasing recognition from
consumers, producers and regulators of the need for sustainable
aquaculture solutions."
For further information, please contact:
Benchmark Holdings plc Tel: 020 7920 3150
Malcolm Pye, CEO
Mark Plampin, CFO
Ivonne Cantu, Investor Relations
Numis
Michael Meade / Freddie Barnfield (NOMAD) Tel: 020 7260 1000
James Black (Corporate Broking)
MHP
Katie Hunt / Reg Hoare / Alistair de Tel: 020 3128 8742
Kare-Silver
benchmark@mhpc.com
Notes to Editors:
Benchmark challenges the status quo in aquaculture. Since 2000,
Benchmark has consistently worked to build a technology-rich
platform in the areas of genetics, advanced nutrition, animal
health and knowledge services to serve its customers, helping them
improve yield and efficiency in a sustainable way.
The Company has leading positions in its core markets and
established R&D, manufacturing and distribution capabilities to
serve all the major aquaculture markets. Benchmark operates in 27
countries and as at 31 March 2018 employed 1,028 people.
For further information on Benchmark please visit
www.benchmarkplc.com/ @WeAreBenchmark
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END
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