TIDMBMK
RNS Number : 8057P
Benchmark Holdings PLC
22 February 2021
22 February 2021
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")
Q1 Results
(3 months ended 31 December 2020)
Positive start to the year with good trading and strategic
progress across all business areas
Benefits from restructuring and focus on aquaculture
In compliance with the terms of the Company's senior secured
bond which requires it to publish quarterly financial information,
Benchmark, the aquaculture biotechnology business, announces its
unaudited results for the 3 months ended 31 December 2020 (the
"period") . All Q1 2021 and Q1 2020 figures quoted in this
announcement are based on unaudited accounts.
GBPm Q1 2021 Q1 2020 FY2020
(unaudited) Restated* (audited)
(unaudited)
--------------------------------------- ------------- ------------- -----------
Adjusted
--------------------------------------- ------------- ------------- -----------
Revenue from continuing operations 29.0 24.7 105.6
--------------------------------------- ------------- ------------- -----------
Adjusted EBITDA(2) from continuing
operations 3.0 0.4 14.5
--------------------------------------- ------------- ------------- -----------
Adjusted Operating Profit/(Loss)(3)
from continuing operations 1.3 (1.1) 7.9
--------------------------------------- ------------- ------------- -----------
Exceptional restructuring, disposal
and acquisition related items (0.6) (0.1) (2.1)
--------------------------------------- ------------- ------------- -----------
EBITDA(1) from continuing operations 2.4 0.3 12.4
--------------------------------------- ------------- ------------- -----------
Statutory
--------------------------------------- ------------- ------------- -----------
Loss before tax from continuing
operations (0.5) (3.2) (22.6)
--------------------------------------- ------------- ------------- -----------
Loss for the period from continuing
operations (0.2) (2.6) (22.8)
--------------------------------------- ------------- ------------- -----------
Loss for the period - total incl.
discontinued operations (0.2) (5.4) (31.9)
--------------------------------------- ------------- ------------- -----------
Basic loss per share (p) - continuing
operations (0.11) (0.51) (3.80)
--------------------------------------- ------------- ------------- -----------
Net debt(4) (51.9) (91.3) (37.6)
--------------------------------------- ------------- ------------- -----------
(1) EBITDA is earnings/(loss) before interest, tax, depreciation
and amortisation and impairment.
(2) Adjusted EBITDA is EBITDA(1) , before exceptional items
including disposal and acquisition related expenditure.
(3) Adjusted Operating Profit/(Loss) is operating loss before
exceptional items including disposal and acquisition related items
and amortisation of intangible assets excluding development
costs.
(4) Net debt is cash and cash equivalents less loans, borrowings
and lease obligations excluding balances held for sale.
* Q1 2020 results have been restated to reflect changes to the
ongoing continuing business since they were previously
reported.
Divisional summary (Continuing operations)
GBPm Q1 2021 Q1 2020 FY 2020
(unaudited) Restated* (audited)
(unaudited)
-------------------- ------------- ------------- -----------
Revenue
-------------------- ------------- ------------- -----------
Advanced Nutrition 15.1 11.4 59.4
-------------------- ------------- ------------- -----------
Genetics 12.6 12.1 41.5
-------------------- ------------- ------------- -----------
Health 1.3 1.4 5.2
-------------------- ------------- ------------- -----------
Adjusted EBITDA(2)
-------------------- ------------- ------------- -----------
Advanced Nutrition 1.0 (0.3) 6.4
-------------------- ------------- ------------- -----------
Genetics 3.9 3.5 14.4
-------------------- ------------- ------------- -----------
Health (1.1) (1.8) (3.7)
-------------------- ------------- ------------- -----------
(1) EBITDA is earnings/(loss) before interest, tax, depreciation
and amortisation and impairment.
(2) Adjusted EBITDA is EBITDA(1) , before exceptional, disposal
and acquisition related expenditure.
* Q1 2020 results have been restated to reflect changes to the
ongoing continuing business since they were previously
reported.
Financial Highlights - Significant increase in revenues and
Adjusted EBITDA
-- Revenues from continuing operations were 18% ahead of the prior year resulting from:
o 32% higher revenues in Advanced Nutrition following slight
improvement in certain markets where Covid-19 restrictions have
eased and timing of restocking at distributors year on year
o Continued good performance in Genetics with revenues 4% ahead
of prior year
o Health revenues in line with the prior year with solid sales
of Salmosan
-- Adjusted EBITDA from continuing operations was GBP3.0m
against GBP0.4m in Q1 2020 reflecting higher revenues, the benefit
from cost reduction measures taken in 2020 and ongoing control of
operating costs and R&D expenses
-- Net cash outflow in the quarter was GBP14.6m (Q1 2020: inflow
GBP2.2m) as a result of planned capex in the period and expected
higher investment in working capital from increased activity; prior
year benefitted from a GBP6.7m inflow from the dissolution of the
Chilean JV
-- Net debt was GBP51.9m at 30 December 2020 (30 September 2020:
GBP37.6m; 31 December 2019: GBP91.3m) as a result of planned
investments in capex and working capital
-- Liquidity (cash and available facility) of c.GBP67.4m (cash
and available facility (30 September 2020: GBP83.2m))
Market environment
-- The salmon industry continues to be resilient through the
ongoing pandemic with continued investment in the emerging
land-based salmon farming segment
-- The shrimp market remains challenging due to ongoing Covid-19
lockdown restrictions; there are partial signs of recovery in
certain Asian markets as restrictions are eased while conditions in
the Americas continue to be difficult
-- The Mediterranean sea bass / bream market is stable
-- The 2020/21 Artemia harvest is underway with normalised
volumes although oversupply from previous harvests remains
Operational highlights
-- BMK08/CleanTreat(R) on track for commercial launch in Q2 of
calendar year 2021 with progress towards regulatory approval and
firm customer interest
-- First local production of salmon eggs from new genetics facility in Chile
-- New client wins in land-based salmon farming segment
consolidating our leading position in this emerging sector
Current trading and outlook
-- Trading in line with market expectations
-- Resilient trading in Advanced Nutrition in continued challenging market conditions
-- Good visibility of revenues in Genetics for the year
underpinned by long production cycle in salmon and a resilient
salmon industry
Trond Williksen, CEO, commented:
"We have had a positive start to 2021 with good trading,
improved Q1 profitability and delivery against our strategic
priorities in each of our three business areas. The benefits of
operating as a streamlined, increasingly integrated aquaculture
business are starting to be realised. Our focus remains on becoming
sustainably profitable, maintaining financial strength through the
ongoing pandemic and continuing to invest selectively in our
business to deliver future growth."
Details of analyst / investor call today
There will be a call at 10:00am UK time today for analysts and
investors. Please note this change of time from the Notice of
Results announcement on 9 February 2021. To register for the call
please contact MHP Communications on +44 (0)20 3128 8990 or 8742,
or by email on benchmark@mhpc.com
Enquiries
For further information, please contact:
Benchmark Holdings plc Tel: 020 3696 0630
Trond Williksen, CEO
Septima Maguire, CFO
Ivonne Cantu, Investor Relations
Numis (Broker and NOMAD) Tel: 020 7260 1000
James Black, Freddie Barnfield, Duncan Monteith
MHP Communications Tel: 020 3128 8742
Katie Hunt, Reg Hoare, Alistair de Kare-Silver benchmark@mhpc.com
About Benchmark
Benchmark's mission is to enable aquaculture producers to
improve their sustainability and profitability.
We bring together biology and technology, to develop innovative
products which improve yield, quality and animal health and welfare
for our customers. We do this by improving the genetic make-up,
health and nutrition of their stock - from broodstock and hatchery
through to nursery and grow out.
Benchmark has a broad portfolio of products and solutions,
including salmon eggs, live feed (Artemia), diets and probiotics
and sea lice treatments. Find out more at www.benchmarkplc.com
Management Report
The Company had a positive start to the year despite the ongoing
challenges from Covid-19, with trading in Q1 delivering a
significant 18% increase in revenues and an uplift in Adjusted
EBITDA from GBP0.4m in Q1 2020 to GBP3.0m in Q1 2021. This reflects
both the good trading performance and the benefits of our ongoing
cost control.
Operating costs of GBP9.3m in Q1 were 5% below the prior period
(Q1 2020: GBP9.8m) as a result of a groupwide effort to reduce
operating costs and a reduction in marketing and travel expenses in
the period as a result of Covid-19 restrictions.
R&D expenses of GBP1.7m were 43% down (Q1 2020: GBP3.0m) and
total R&D investment including capitalised development costs
(excluding discontinued operations) was GBP2.8m (Q1 2020: GBP3.9m).
By business area, total R&D saw a 28% reduction in Advanced
Nutrition and a 61% reduction in Health while Genetics was 5% below
the prior year. Genetics R&D spend includes the cost of
maintaining our breeding programmes which are fixed.
Overall, our main end markets saw a continuation of the trends
reported in our year end results with a resilient salmon industry,
stable sea bass/bream market and shrimp markets continuing to be
affected by the pandemic, particularly in the Americas. We expect
this scenario to continue with some recovery when restrictions ease
in the main shrimp consuming and producing countries which include
China, the US, India, Vietnam and Ecuador.
We continue to operate our business with the health, wellbeing
and safety of our employees as a priority while providing
continuity of supply and service to our customers. We recognise the
challenges on wellbeing from the prolonged pandemic and have given
additional focus to our wellbeing programme, an important element
of our ESG programme. We are maintaining our focus on cost and cash
management, which together with our tried and tested flexible
operating processes, give us resilience through the ongoing
pandemic.
Genetics
Genetics revenues in Q1 2021 were 4% (GBP0.5m) higher than the
prior year, reflecting higher egg sales volumes in Norway from our
Salten facility, partially offset by expected lower sales to
Scotland from our Icelandic facility and lower harvest revenues as
a result of lower salmon prices.
Adjusted EBITDA for Q1 2021 of GBP3.9m was 11% higher than prior
year (Q1 2020: GBP3.5m) due to higher overall sales, lower
operating costs and lower R&D expenses. Excluding fair value
movements of GBP1.3m in the period, Adjusted EBITDA was GBP2.6m,
10% above the prior year (Q1 2020: GBP2.4m).
Investment in our SPR shrimp production and commercial
capabilities continues ahead of full commercial launch. During the
period we continued to supply shrimp breeders from our US facility
in Fellsmere, Florida to markets in Asia as part of our test market
ahead of a gradual roll-out of our SPR shrimp in H2 FY2021. The
opening of the multiplication centre in Thailand has suffered
delays as a result of lockdown restrictions in the region which
slowed down construction. Capitalised development costs from shrimp
genetics amounted to GBP0.6m in the period (Q1 2020: GBP0.3m) and
Adjusted EBITDA loss was GBP0.1m in the shrimp segment (Q1 2020:
Adjusted EBITDA profit of GBP0.1m).
We continue to invest in our tilapia breeding programme with
operating costs of GBP0.4m, in line with Q1 2020.
Construction to increase incubation capacity in Iceland
commenced in Q1 2021. This investment will enable us to meet
seasonal peak demand and strengthen our ability to serve
international customers, including new land-based salmon farms,
delivering high biosecure eggs year round in the coming years. Post
period end, we recorded our first local production of salmon eggs
from our new facility in Chile.
Advanced Nutrition
Advanced Nutrition had a good quarter, reporting revenues of
GBP15.1m in Q1, 32% above the prior year (Q1 2020: GBP11.4m),
following a slight recovery in selected markets where Covid-19
restrictions are easing and reflecting our enhanced commercial
effort. Revenues grew against last year in all product areas:
Artemia (+69%), Diets (+14%) and Health (+10%). By region, sales in
Asia were ahead of last year partially offset by a drop in the
Americas which have been more significantly affected by Covid-19.
Revenues from Europe were in line with 2020.
Adjusted EBITDA in Q1 was GBP1.0m (Q1 2020: loss GBP0.3m) as a
result of increased sales volumes and lower operating costs from
reduced travel and marketing as a result of Covid-19
restrictions.
While we expect ongoing volatility in the shrimp markets, we are
encouraged by a partial recovery in certain markets which is
expected to continue as consumption levels improve with a lifting
of lockdowns.
Operational efficiencies which commenced during FY20 have been
completed, including formulation improvements to key product lines
and the installation of a new Artemia mixer at our US production
site to improve customer lead times.
Health
Revenues from continuing operations in Q1 2021 were marginally
below the previous year at GBP1.3m (Q1 2020: GBP1.4m). Sales of
Salmosan were solid, reflecting our ability to maintain strong
technical support through the pandemic. The restructuring of our
Health business area has resulted in a more agile, commercially
focused team.
Adjusted EBITDA from continuing operations in Q1 2021 was a loss
of GBP1.1m (Q1 2020: loss GBP1.8m). The reduced operating loss
reflects cuts in operating costs following the restructuring and
disposals, and lower R&D investment.
During the period we continued to prepare for the commercial
launch of BMK08 and CleanTreat(R) in Q2 calendar year 2021,
progressing through the regulatory approval process, building
operational strength and capacity, and continuing to implement our
commercial plan with firm interest from potential customers.
Construction of a second CleanTreat(R) system is expected to
complete in line with our planned launch positioning us for maximum
utilisation of capacity in the months following the launch. The
next milestones towards commercialisation are the ratification of
the Maximum Residue Level for food safety (MRL) in EU and Norwegian
law and the Marketing Authorisation grant in Norway. All are
progressing in line with expectations and we are planning to
generate revenues in H2 FY 2021.
Finance costs, cashflow and net debt
Net finance income for the quarter was GBP2.7m (Q1 2020:
GBP2.4m) primarily driven by interest expense of GBP1.8m (Q1 2020:
GBP1.7m) more than offset by foreign exchange gains of GBP2.6m (Q1
2020: GBP3.2m) and revaluation of financial derivatives of GBP2.3m
(Q1 2020: GBP0.9m).
There was a net cash outflow in the quarter of GBP14.6m (Q1
2020: inflow GBP2.2m) with the main impact on cashflow derived from
investing activities. Net cashflow from investing activities in the
period was an outflow of GBP4.2m (Q1 2020: inflow GBP4.5m),
primarily from investment in PPE related to the new facility in
Chile and fire safety equipment in Thailand, whereas there was a
GBP6.7m inflow in the prior year from the dissolution of the
Chilean JV. Net cash outflow from operating activities was GBP6.4m
(Q1 2020: GBP3.6m outflow) with higher investment in working
capital in the period from higher activity offsetting the improved
result for the year.
Net debt at the quarter end was GBP51.9m (December 2020:
GBP37.6m). Liquidity at the end of the period was GBP67.4m
providing GBP57.4m of headroom against our minimum liquidity
covenant.
Summary and Outlook
The Company has made a positive start to the year and is trading
in line with market expectations. We have good visibility of
revenues in Genetics for the full financial year with normal
seasonality, underpinned by a long production cycle in salmon and a
resilient salmon industry, together with the ramp up and expansion
of capacity. We expect the shrimp market to remain volatile through
the coming months with some recovery in the Asian markets likely
but challenging conditions continuing in the Americas. In Health,
we also expect to see the first revenues from BMK08/CleanTreat (R)
during H2 FY 2021 subject to regulatory approvals.
The benefits of operating as a streamlined, aquaculture focused,
increasingly integrated organisation are starting to be realised.
Our focus remains on becoming sustainably profitable, maintaining
financial strength through the ongoing pandemic and continuing to
invest selectively in our business to deliver future growth.
Benchmark Holdings plc
Consolidated Income Statement for the period ended 31 December
2020
Q1 2020
Q1 2021 Restated* FY 2020
All figures in GBP000's Notes (unaudited) (unaudited) (audited)
-------------------------------------------- ------ -------------- -------------- ------------
Revenue 4 29,030 24,691 105,565
Cost of sales (14,359) (11,752) (50,603)
-------------------------------------------- ------
Gross profit 14,671 12,939 54,962
Research and development costs (1,745) (2,972) (7,282)
Other operating costs (9,285) (9,778) (33,337)
Share of (loss)/profit of equity-accounted
investees, net of tax (611) 211 150
-------------------------------------------- ------ -------------- -------------- ------------
Adjusted EBITDA(2) 3,030 400 14,493
Exceptional - restructuring, disposal
and acquisition related items 6 (593) (134) (2,114)
-------------------------------------------- ------ -------------- -------------- ------------
EBITDA(1) 2,437 266 12,379
Depreciation and impairment (1,771) (1,453) (6,640)
Amortisation and impairment (3,918) (4,355) (16,613)
-------------------------------------------- ------ -------------- -------------- ------------
Operating loss (3,252) (5,542) (10,874)
Finance cost (2,149) (2,010) (12,779)
Finance income 4,886 4,368 1,082
-------------------------------------------- ------ -------------- -------------- ------------
Loss before taxation (515) (3,184) (22,571)
Tax on loss 7 290 600 (204)
-------------------------------------------- ------ -------------- ------------
Loss from continuing operations (225) (2,584) (22,775)
-------------------------------------------- ------ -------------- -------------- ------------
Discontinued operations
Loss from discontinued operations,
net of tax 5 - (2,858) (9,174)
-------------------------------------------- ------ -------------- -------------- ------------
(225) (5,442) (31,949)
-------------------------------------------- ------ -------------- -------------- ------------
Loss for the year attributable to:
- Owners of the parent (717) (5,716) (32,923)
- Non-controlling interest 492 274 974
-------------------------------------------- ------ --------------
(225) (5,442) (31,949)
-------------------------------------------- ------ -------------- -------------- ------------
Earnings per share
Basic loss per share (pence) 8 (0.11) (1.02) (5.26)
Diluted loss per share (pence) 8 (0.11) (1.02) (5.26)
Earnings per share - continuing
operations
Basic loss per share (pence) 8 (0.11) (0.51) (3.80)
Diluted loss per share (pence) 8 (0.11) (0.51) (3.80)
GBP000 GBP000 GBP000
-------------------------------------------- ------ -------------- -------------- ------------
Adjusted EBITDA from continuing
operations 3,030 400 14,493
Adjusted EBITDA from discontinued
operations 5 - (1,987) (8,726)
-------------------------------------------- ------ -------------- -------------- ------------
Total Adjusted EBITDA 3,030 (1,587) 5,767
-------------------------------------------- ------ -------------- -------------- ------------
1 EBITDA - Earnings/loss before interest, tax, depreciation,
amortisation and impairment
2 Adjusted EBITDA - EBITDA before exceptional, disposal and
acquisition related items
* Q1 2020 numbers have been restated to reflect changes to the
ongoing continuing business since it was previously reported (note
5)
Benchmark Holdings plc
Consolidated Statement of Comprehensive Income for the period
ended 31 December 2020
Q1 2020
Q1 2021 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (audited)
------------------------------------------- ---- -------------- -------------- ------------
Loss for the period (225) (5,442) (31,949)
Other comprehensive income
Items that are or may be reclassified
subsequently to profit or loss
Foreign exchange translation differences (8,714) (23,560) (20,327)
Cash flow hedges - changes in fair value 2,898 (1,660) (5,932)
Cash flow hedges - reclassified to profit
or loss 156 (75) (153)
Total comprehensive income for the period (5,885) (30,737) (58,361)
------------------------------------------------- -------------- -------------- ------------
Total comprehensive income for the period
attributable to:
- Owners of the parent (6,624) (30,810) (58,532)
- Non-controlling interest 739 73 171
------------------------------------------------- ------------
(5,885) (30,737) (58,361)
------------------------------------------------ -------------- -------------- ------------
Total comprehensive income for the period
attributable to owners of the parent:
- Continuing operations (6,624) (28,058) (50,604)
- Discontinued operations - (2,752) (7,928)
-------------------------------------------------
(6,624) (30,810) (58,532)
------------------------------------------------ -------------- -------------- ------------
* Q1 2020 numbers have been restated to reflect changes to the
ongoing continuing business since it was previously reported note
5)
Benchmark Holdings plc
Consolidated Balance Sheet for the period ended 31 December
2020
31 December 31 December 30 September
2020 2019 2020
All figures in GBP000's Notes (unaudited) (unaudited) (audited)
---------------------------------- ------ ------------- ------------- --------------
Assets
Property, plant and equipment 68,820 85,204 65,601
Right-of-use assets 11,371 4,421 10,347
Intangible assets 235,644 255,006 247,003
Equity-accounted investees 3,069 3,488 3,690
Other investments 24 24 23
Biological and agricultural
assets 15,929 10,090 16,621
Non-current assets 334,857 358,233 343,285
---------------------------------- ------ ------------- ------------- --------------
Inventories 17,197 23,544 18,926
Biological and agricultural
assets 19,118 17,483 15,848
Trade and other receivables 35,248 34,211 39,371
Cash and cash equivalents 56,428 17,020 71,605
---------------------------------- ------ ------------- ------------- --------------
127,991 92,258 145,750
Assets held for sale - 17,088 -
Current assets 127,991 109,346 145,750
---------------------------------- ------ ------------- ------------- --------------
Total assets 462,848 467,579 489,035
---------------------------------- ------ ------------- ------------- --------------
Liabilities
Trade and other payables (28,318) (27,054) (45,692)
Loans and borrowings 9 (4,209) (2,951) (5,339)
Corporation tax liability (3,919) (2,606) (4,344)
Provisions - (144) -
---------------------------------- ------ ------------- ------------- --------------
(36,446) (32,755) (55,375)
Liabilities directly associated - (12,757) -
with the assets held for sale
-------------
Current liabilities (36,446) (45,512) (55,375)
---------------------------------- ------ ------------- ------------- --------------
Loans and borrowings 9 (104,077) (105,366) (103,819)
Other payables (1,822) (1,952) (1,754)
Deferred tax (30,450) (34,742) (32,647)
Non-current liabilities (136,349) (142,060) (138,220)
---------------------------------- ------ ------------- ------------- --------------
Total liabilities (172,794) (187,572) (193,595)
---------------------------------- ------ ------------- ------------- --------------
Net assets 290,053 280,007 295,440
---------------------------------- ------ ------------- ------------- --------------
Issued capital and reserves
attributable to owners of the
parent
Share capital 10 668 559 668
Additional paid-in share capital 399,803 358,044 399,601
Capital redemption reserve 5 5 5
Retained earnings (142,591) (116,354) (142,170)
Hedging reserve (6,596) (5,301) (9,651)
Foreign exchange reserve 31,716 36,843 40,678
Equity attributable to owners
of the parent 283,005 273,796 289,131
Non-controlling interest 7,048 6,211 6,309
---------------------------------- ------
Total equity and reserves 290,053 280,007 295,440
---------------------------------- ------ ------------- ------------- --------------
The notes to these statements are an integral part of this
consolidated financial information
Benchmark Holdings plc
Consolidated Statement of Changes in Equity for the period ended
31 December 2020
Total
attributable
Additional to equity
paid-in holders Non-
Share share Other Hedging Retained of controlling Total
capital capital* reserves reserve earnings parent interest equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
As at 1
October 2020
(audited) 668 399,601 40,683 (9,651) (142,170) 289,131 6,309 295,440
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Comprehensive
income for
the period
(Loss)/profit
for the
period - - - - (717) (717) 492 (225)
Other
comprehensive
income - - (8,962) 3,055 - (5,907) 247 (5,660)
Total
comprehensive
income
for the
period - - (8,962) 3,055 (717) (6,624) 739 (5,885)
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Contributions
by and
distributions
to owners
Share issue - 202 - - - 202 - 202
Share-based
payment - - - - 296 296 - 296
Total
contributions
by
and
distributions
to owners - 202 - - 296 498 - 498
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Total
transactions
with
owners of the
Company - 202 - - 296 498 - 498
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
As at 31
December 2020
(unaudited) 668 399,803 31,721 (6,596) (142,591) 283,005 7,048 290,053
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
As at 1
October 2019
(audited) 559 358,044 60,207 (3,566) (110,916) 304,328 6,138 310,466
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Comprehensive
income for
the period
(Loss)/profit
for the
period - - - - (5,716) (5,716) 274 (5,442)
Other
comprehensive
income - - (23,359) (1,735) - (25,094) (201) (25,295)
Total
comprehensive
income
for the
period - - (23,359) (1,735) (5,716) (30,810) 73 (30,737)
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Contributions
by and
distributions
to owners
Share-based
payment - - - - 278 278 - 278
Total
contributions
by
and
distributions
to owners - - - - 278 278 - 278
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Total
transactions
with
owners of the
Company - - - - 278 278 - 278
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
As at 31
December 2019
(unaudited) 559 358,044 36,848 (5,301) (116,354) 273,796 6,211 280,007
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
As at 1
October 2019
(audited) 559 358,044 60,207 (3,566) (110,916) 304,328 6,138 310,466
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Comprehensive
income for
the period
(Loss)/profit
for the
period - - - - (32,923) (32,923) 974 (31,949)
Other
comprehensive
income - - (19,524) (6,085) - (25,609) (803) (26,412)
Total
comprehensive
income
for the
period - - (19,524) (6,085) (32,923) (58,532) 171 (58,361)
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Contributions
by and
distributions
to owners
Share issue 109 42,869 - - - 42,978 - 42,978
Share issue
costs
recognised
through
equity - (1,312) - - - (1,312) - (1,312)
Share-based
payment - - - - 1,669 1,669 - 1,669
Total
contributions
by
and
distributions
to owners 109 41,557 - - 1,669 43,335 - 43,335
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Total
transactions
with
owners of the
Company 109 41,557 - - 1,669 43,335 - 43,335
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
As at 30
September
2020
(audited) 668 399,601 40,683 (9,651) (142,170) 289,131 6,309 295,440
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
*Other reserves in this statement is an aggregation of capital
redemption reserve and foreign exchange reserve
Benchmark Holdings plc
Consolidated Statement of Cash Flows for the period ended 31
December 2020
Q1 2021 Q1 2020 FY 2020
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------------------------------------- ---- -------------- -------------- ------------
Cash flows from operating activities
Loss for the year (225) (5,442) (31,949)
Adjustments for:
Depreciation and impairment of
property, plant and equipment 1,772 1,910 9,138
Amortisation and impairment of
intangible fixed assets 3,918 4,389 19,402
Gain on sale of property, plant
and equipment (68) (3) (1,140)
Gain on sale of subsidiaries - - (14,120)
Finance income (22) (963) (111)
Finance costs (165) 2,049 9,695
Other adjustments for non-cash
items - - 200
Share of loss/(profit) of equity-accounted
investees, net of tax 611 (211) (150)
Foreign exchange gains (3,480) (4,351) (132)
Share based payment expense 296 278 1,669
Tax credit (291) (571) 314
-------------------------------------------------- -------------- -------------- ------------
2,346 (2,915) (7,184)
Decrease in trade and other receivables 4,563 10,606 4,202
Decrease/(increase) in inventories 1,799 (1,810) 3,741
Increase in biological and agricultural
assets (2,038) (373) (7,474)
(Decrease)/increase in trade and
other payables (11,846) (8,301) 5,006
Decrease in provisions (10) (18) (260)
-------------------------------------------------- -------------- -------------- ------------
(5,186) (2,811) (1,969)
Income taxes paid (1,241) (827) (2,087)
-------------------------------------------------- -------------- -------------- ------------
Net cash flows used in operating
activities (6,427) (3,638) (4,056)
-------------------------------------------------- -------------- -------------- ------------
Investing activities
Proceeds from sale of subsidiaries,
net of cash disposed of - - 17,487
Purchase of investments - - (522)
Receipts from disposal of investments - 6,932 6,932
Purchases of property, plant and
equipment (3,424) (1,576) (5,851)
Proceeds from sales of intangible
assets - - 261
Purchase of intangibles (1,128) (952) (5,563)
Purchase of held for sale assets - - (402)
Proceeds from sale of fixed assets 286 - 16,147
Proceeds from sales of other long-term
assets - - 1,776
Interest received 21 69 111
-------------------------------------------------- -------------- -------------- ------------
Net cash flows (used in)/from
investing activities (4,245) 4,473 30,376
-------------------------------------------------- -------------- -------------- ------------
Financing activities
Proceeds of share issues 203 - 42,978
Share-issue costs recognised through
equity - - (1,312)
Proceeds from bank or other borrowings - 4,174 8,387
Repayment of bank or other borrowings (1,664) (201) (10,141)
Interest and finance charges paid (1,800) (2,100) (7,659)
Repayments of lease liabilities (689) (535) (2,120)
-------------------------------------------------- -------------- -------------- ------------
Net cash (outflow)/inflow from
financing activities (3,950) 1,338 30,133
-------------------------------------------------- -------------- -------------- ------------
Net (decrease)/increase in cash
and cash equivalents (14,622) 2,173 56,453
Cash and cash equivalents at beginning
of year 71,605 16,051 16,051
Effect of movements in exchange
rate (555) (960) (899)
-------------------------------------------------- -------------- -------------- ------------
Cash and cash equivalents at end
of year 56,428 17,264 71,605
-------------------------------------------------- -------------- -------------- ------------
The Consolidated Statement of Cash Flows presents cash flows
from both Continuing and Discontinued operations in the
comparatives.
Of the cash balance at 31 December 2019 of GBP17,264,000,
GBP244,000 was classified as held for sale
Benchmark Holdings plc
Unaudited notes to the interim financial statements for period
ended 31 December 2020
1. Basis of preparation
Benchmark Holdings plc (the 'Company') is a company incorporated
domiciled in the United Kingdom. These consolidated quarterly
financial statements as at and for the three months ended 31
December 2020 represents that of the Company and its subsidiaries
(together referred to as the 'Group').
These quarterly financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting and should be
read in conjunction with the Group's consolidated financial
statements as at and for the year ended 30 September 2020. They do
not include all of the information required for a complete set of
IFRS financial statements. However, selected explanatory notes are
included to explain events and transactions that are significant to
an understanding of the changes in the Group's financial position
and performance since the last annual financial statements.
Statutory accounts for the year ended 30 September 2020 were
approved by the Directors on 27 November 2020 and will be delivered
to the Registrar of Companies. The audit report received on those
accounts was unqualified and did not make a statement under section
498 of the Companies Act 2006.
Going concern
The Group's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Management Report.
As at 31 December 2020 the Group had net assets of GBP290.1m (30
September 2020: GBP295.4m), including cash of GBP56.4m (30
September 2020: GBP71.6m) as set out in the consolidated balance
sheet. The Group made a loss for the period of GBP0.2m (30
September 2020: GBP31.9m).
As noted in the Management Report, the impact of the Covid-19
pandemic continues to affect parts of the Group's businesses to
varying degrees. The ultimate impact of the pandemic on industry,
the economy, Benchmark's markets and its businesses remains to some
extent uncertain. Our main markets have experienced mixed fortunes,
with weak shrimp markets, resilient salmon markets and sea
bass/bream markets which have experienced modest impact from
Covid-19. The Directors monitor available market analysis as this
situation continues into 2021. Whilst the outlook for the shrimp
market retains some uncertainty, the outlook for the salmon sector
(underpinning the Genetics and Health businesses) remains positive
and the Directors therefore believe that large parts of the Group
are well placed to deal with the uncertain global economic future
ahead.
The Directors prepared cash flow projections covering the period
to September 2022 to assess the Group's trading and cash flow
forecasts and the forecast compliance with the covenants included
within the Group's financing arrangements and year to date
performance is in line with these forecasts. Cash resources were
boosted by non-core business disposals during the previous year and
the ongoing cost base following these transactions has been
significantly reduced.
The uncertainty relating to the future impact on the Group of
the pandemic has been considered as part of the Directors'
assessment of the going concern assumption. The positive
preventative measures implemented by the Directors at an early
stage in response to the pandemic continue to be in force where
necessary. In the downside scenario analysis performed, the
Directors considered severe but plausible impacts of Covid-19 on
the Group's trading and cash flow forecasts, modelling reductions
in the revenues and cash flows in Advanced Nutrition, being the
segment most impacted by Covid-19 because of its exposure to global
shrimp markets, alongside modelling delays to new product launches
in the Health business area. Key downside sensitivities modelled
include assumptions that there is limited recovery in global shrimp
markets in FY21, affecting demand for Advanced Nutrition products
and a three-month potential delay in the launch of BMK08, pushing
commercial launch back to September 2021. Mitigating measures
within the control of management were implemented early in the
pandemic and remain in place and have been factored into the
downside analysis performed. These measures include reductions in
areas of discretionary spend, temporary furlough of certain staff
or reduced working hours, deferral of capital projects and
temporary hold on R&D for non-imminent products.
It remains difficult to predict the overall outcome and impact
of the pandemic, but under the severe but plausible downside
scenarios modelled, the Group has sufficient liquidity and
resources throughout the period under review whilst still
maintaining adequate headroom against the borrowing covenants. The
Directors therefore remain confident that the Group has adequate
resources to continue to meet its liabilities as and when they fall
due within the period of 12 months from the date of approval of
these financial statements. Accordingly, the financial statements
have been prepared on a going concern basis.
2. Accounting policies
The accounting policies adopted are consistent with those used
in preparing the consolidated financial statements for the
financial year ended 30 September 2020.
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total earnings.
Alternative performance measures ('APMs')
The Directors measure the performance of the Group based on a
range of financial measures, including measures not recognised by
EU-adopted IFRS. These APMs may not be directly comparable with
other companies' APMs and the Directors do not intend these as a
substitute for, or superior to, IFRS measures.
Directors have presented the performance measures Adjusted
EBITDA, Adjusted Operating Profit and Adjusted Profit Before Tax
because it monitors performance at a consolidated level using these
and believes that these measures are relevant to an understanding
of the Group's financial performance (see note 11).
Use of estimates and judgements
The preparation of quarterly financial information requires
management to make certain judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
amounts may differ from these estimates.
In preparing these quarterly financial statements the
significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty
were the same as those applied to the consolidated financial
statements for the year ended 30 September 2020.
3. Segment information
Operating segments are reported in a manner consistent with the
reports made to the chief operating decision maker. It is
considered that the role of chief operating decision maker is
performed by the Board of Directors.
The Group operates globally and for management purposes is
organised into reportable segments based on the following business
areas:
-- Genetics - harnesses industry leading salmon breeding
technologies combined with state-of-the-art production facilities
to provide a range of year-round high genetic merit ova;
-- Advanced Nutrition - manufactures and provides technically
advanced nutrition and health products to the global aquaculture
industry.
-- Health - provided veterinary services, environmental services
diagnostics and health products to the global aquaculture market,
and manufactures licenced veterinary vaccines and vaccine
components; following the divestment programme the segment now
focusses on providing health products to the global aquaculture
market.
In addition to the above, reported as "all other segments" is
the Knowledge Services business area, the operations of which were
disposed of or discontinued in the two previous years. The business
area provided sustainable food production consultancy, technical
consultancy and assurance services and promotes sustainable food
production and ethics through online news and technical
publications for the international agriculture and food processing
sectors and through delivery of training courses to the
industries.
In order to reconcile the segmental analysis to the Consolidated
Income Statement, Corporate and Inter-segment sales are also shown.
C orporate represents revenues earned from recharging certain
central costs to the operating divisions, together with unallocated
central costs.
Measurement of operating segment profit or loss
Inter-segment sales are priced along the same lines as sales to
external customers, with an appropriate discount being applied to
encourage use of Group resources at a rate acceptable to local tax
authorities. This policy was applied consistently throughout the
current and prior period.
3. Segment information (continued)
Segmental Revenue
Q1 2021 Q1 2020 FY 2020
All figures in GBP000's (unaudited) (unaudited) (audited)
--------------------------- --------------- --------------- -------------
Genetics 12,616 12,120 41,504
Advanced Nutrition 15,132 11,396 59,362
Health 1,293 3,420 10,799
All other segments - 3,373 9,257
Corporate 1,205 1,538 4,939
Inter-segment sales (1,216) (1,793) (5,469)
Total 29,030 30,054 120,392
--------------------------- --------------- --------------- -------------
Segmental Adjusted EBITDA
Q1 2021 Q1 2020 FY 2020
All figures in GBP000's (unaudited) (unaudited) (audited)
---------------------------- --------------- --------------- -------------
Genetics 3,879 3,455 14,442
Advanced Nutrition 993 (405) 6,266
Health (1,117) (4,021) (12,886)
All other segments - 196 244
Corporate (725) (812) (2,299)
Total 3,030 (1,587) 5,767
---------------------------- --------------- --------------- -------------
Reconciliations of segmental information to IFRS measures
Revenue
Q1 2020
Q1 2021 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (audited)
-------------------------------------------- --------------- --------------- -------------
Total revenue per segmental information 29,030 30,054 120,392
Less: revenue from discontinued operations
(note 5) - (5,363) (14,827)
--------------------------------------------
Consolidated revenue 29,030 24,691 105,565
-------------------------------------------- --------------- --------------- -------------
Reconciliation of Reportable Segments Adjusted EBITDA to
Loss before taxation from continuing operations
----------------------------------------------------------------------------------------------
Q1 2020
Q1 2021 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (audited)
--------------------------------------------- --------------- --------------- -------------
Total reportable segment Adjusted
EBITDA 3,755 (971) 7,822
Other Segment and Corporate Adjusted
EBITDA (725) (616) (2,055)
--------------------------------------------- --------------- --------------- -------------
3,030 (1,587) 5,767
Less: Adjusted EBITDA from discontinued
operations (note 5) - 1,987 8,726
--------------------------------------------- --------------- --------------- -------------
Adjusted EBITDA from continuing operations 3,030 400 14,493
Exceptional including disposal and
acquisition related items (593) (134) (2,114)
Depreciation and impairment (1,771) (1,453) (6,640)
Amortisation and impairment (3,918) (4,355) (16,613)
Net finance costs 2,737 2,358 (11,697)
Loss before taxation from continuing
operations (515) (3,184) (22,571)
--------------------------------------------- --------------- --------------- -------------
*See note 5.
4. Revenue
The Group's operations and main revenue streams are those
described in its financial statements to 30 September 2020. The
Group's revenue is derived from contracts with customers.
Disaggregation of revenue
In the following tables, revenue is disaggregated by primary
geographical market and by sales of goods and services. The table
includes a reconciliation of the disaggregated revenue with the
Group's reportable segments (see note 3).
Sale of goods and provision of services
3 months ended 31 December 2020 (unaudited)
---------------- -------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
Sale of
goods 11,489 15,127 1,278 - - - 27,894 - 27,894
Provision
of services 1,121 - 15 - - - 1,136 - 1,136
Inter-segment
sales 6 5 - - 1,205 (1,216) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
12,616 15,132 1,293 - 1,205 (1,216) 29,030 - 29,030
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
3 months ended 31 December 2019 (unaudited)
---------------- -------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment Discontinued Continued
in GBP000's Genetics Nutrition Health segments Corporate sales Total Restated* Restated*
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
Sale of
goods 10,939 11,388 1,612 197 - - 24,136 620 23,516
Provision
of services 1,125 - 1,610 3,166 17 - 5,918 4,743 1,175
Inter-segment
sales 56 8 198 10 1,521 (1,793) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
12,120 11,396 3,420 3,373 1,538 (1,793) 30,054 5,363 24,691
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
12 months ended 30 September 2020 (audited)
---------------- -------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
Sale of
goods 37,555 59,301 6,529 547 - - 103,932 2,551 101,381
Provision
of services 3,909 - 3,846 8,683 22 - 16,460 12,276 4,184
Inter-segment
sales 40 61 424 27 4,917 (5,469) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
41,504 59,362 10,799 9,257 4,939 (5,469) 120,392 14,827 105,565
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
*See note 5.
4. Revenue (continued)
Primary geographical markets
3 months ended 31 December 2020 (unaudited)
---------------- -------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
Norway 7,710 66 163 - - - 7,939 - 7,939
UK 1,430 26 235 - - - 1,691 - 1,691
Faroe Islands 1,808 4 - - - - 1,812 - 1,812
Ecuador - 959 - - - - 959 - 959
India - 3,226 - - - - 3,226 - 3,226
Greece - 1,830 - - - - 1,830 - 1,830
Singapore - 941 - - - - 941 - 941
Chile 6 - 837 - - - 843 - 843
Rest of
Europe 1,160 1,438 2 - - - 2,600 - 2,600
Rest of
World 496 6,637 56 - - - 7,189 - 7,189
Inter-segment
sales 6 5 - - 1,205 (1,216) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
12,616 15,132 1,293 - 1,205 (1,216) 29,030 - 29,030
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
3 months ended 31 December 2019 (unaudited)
---------------- -------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment Discontinued Continued
in GBP000's Genetics Nutrition Health segments Corporate sales Total Restated* Restated*
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
Norway 5,814 112 543 - - - 6,469 424 6,045
UK 2,343 19 693 2,106 17 - 5,178 2,694 2,484
Faroe Islands 2,160 - 25 - - - 2,185 - 2,185
Ecuador - 1,985 - - - - 1,985 - 1,985
India - 956 - - - - 956 - 956
Greece - 1,495 - - - - 1,495 - 1,495
Singapore - 679 - - - - 679 - 679
Chile 14 - 1,189 - - - 1,203 264 939
Rest of
Europe 1,209 1,487 538 999 - - 4,233 1,538 2,695
Rest of
World 524 4,655 234 258 - - 5,671 443 5,228
Inter-segment
sales 56 8 198 10 1,521 (1,793) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
12,120 11,396 3,420 3,373 1,538 (1,793) 30,054 5,363 24,691
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
12 months ended 30 September 2020 (audited)
---------------- -------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
Norway 19,709 633 1,608 - - - 21,950 1,145 20,805
UK 6,402 124 1,951 6,149 22 - 14,648 7,506 7,142
Faroe Islands 6,961 3 114 - - - 7,078 - 7,078
Ecuador - 6,822 - - - - 6,822 - 6,822
India - 6,452 6 - - - 6,458 3 6,455
Greece 61 5,666 - - - - 5,727 - 5,727
Singapore - 5,356 7 - - - 5,363 7 5,356
Chile 119 21 4,083 - - - 4,223 1,159 3,064
Rest of
Europe 5,421 4,554 1,566 2,549 - - 14,090 4,071 10,019
Rest of
World 2,791 29,670 1,040 532 - - 34,033 936 33,097
Inter-segment
sales 40 61 424 27 4,917 (5,469) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
41,504 59,362 10,799 9,257 4,939 (5,469) 120,392 14,827 105,565
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ------------
*See note 5.
5. Discontinued activities
In June 2019, the Group announced a programme of structural
efficiencies which focused on the disposal and discontinuation of
non-core activities. This programme primarily included the
businesses within Knowledge Services (reported within 'all other
segments') and the veterinary services business within Health.
These operations were presented as discontinued and the sales of
the disposal group were completed during the previous year and
therefore continue to be shown as discontinued. During Q1 of the
prior year, as a continuation of the above programme, a small
non-core business within Advanced Nutrition was put up for sale and
sold and a business within the Corporate category was closed.
During the prior year but after 31 December 2019, a
restructuring of the Health business area saw the closure of the
research and development operations at two sites, the sale of the
Group's vaccine manufacturing facility and exit from non-core
vaccine development collaborations. Consequently, these operations
have been classified as discontinued with a corresponding
restatement of the consolidated income statement and consolidated
statement of comprehensive income for the quarter ended 31 December
2019 to reflect these changes.
Results from discontinued operations
Q1 2020
Q1 2021 Restated FY 2020
All figures in GBP000's (unaudited) (unaudited) (audited)
----------------------------------- ---- --------------- -------------- ------------
Revenue - 5,363 14,827
Cost of sales - (3,947) (13,000)
-----------------------------------------
Gross profit - 1,416 1,827
Research and development costs - (1,048) (2,725)
Other operating costs - (2,355) (7,828)
----------------------------------------- -------------- -------------- ------------
Adjusted EBITDA - (1,987) (8,726)
Exceptional items - (312) 5,086
----------------------------------------- -------------- -------------- ------------
EBITDA - (2,299) (3,640)
Depreciation and impairment - (457) (2,498)
Amortisation and impairment - (34) (2,789)
----------------------------------------- -------------- -------------- ------------
Operating loss - (2,790) (8,927)
Finance costs - (39) (137)
----------------------------------------- -------------- -------------- ------------
Loss before taxation - (2,829) (9,064)
Tax on loss - (29) (110)
----------------------------------------- -------------- -------------- ------------
Loss from discontinued operations - (2,858) (9,174)
----------------------------------------- -------------- -------------- ------------
5. Discontinued activities (continued)
Results from discontinued operations by segment
Advanced All other Total
Nutrition Health segments Corporate Discontinued
Q1 2021 Q1 2021 Q1 2021 Q1 2021 Q1 2021
All figures in
GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
----------------- ---- -------------- -------------- -------------- -------------- --------------
Revenue - - - - -
Adjusted EBITDA - - - - -
Operating loss - - - - -
----------------- ---- -------------- -------------- -------------- -------------- --------------
Advanced All other Total
Nutrition Health segments Corporate Discontinued
Q1 2020 Q1 2020
Q1 2020 Restated Q1 2020 Q1 2020 Restated
All figures in
GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
----------------- ---- -------------- -------------- -------------- -------------- --------------
Revenue 2 1,980 3,363 18 5,363
Adjusted EBITDA (118) (2,174) 389 (84) (1,987)
Operating loss (381) (2,597) 289 (101) (2,790)
----------------------- -------------- -------------- -------------- -------------- --------------
Advanced All other Total
Nutrition Health segments Corporate Discontinued
FY 2020 FY 2020 FY 2020 FY 2020 FY 2020
All figures in
GBP000's (audited) (audited) (audited) (audited) (audited)
----------------- ---- -------------- -------------- -------------- -------------- --------------
Revenue 2 5,573 9,230 22 14,827
Adjusted EBITDA (143) (9,151) 749 (181) (8,726)
Operating loss (394) (11,914) 3,818 (437) (8,927)
----------------------- -------------- -------------- -------------- -------------- --------------
6. Exceptional - restructuring, disposal and acquisition related items
Items that are material because of their size or nature,
non-recurring and whose significance is sufficient to warrant
separate disclosure and identification within the consolidated
financial statements are referred to as exceptional items. The
separate reporting of exceptional items helps to provide an
understanding of the Group's underlying performance.
Q1 2021 Q1 2020 FY 2020
All figures in GBP000's (unaudited) (unaudited) (audited)
----------------------------------------- ---- -------------- -------------- ------------
Acquisition related items - - 586
Exceptional disposal and restructuring
costs 593 134 1,528
Total exceptional items 593 134 2,114
----------------------------------------------- -------------- -------------- ------------
Exceptional restructuring expenses in Q1 2021 include GBP244,000
of staff costs relating to the Board's decision to make significant
changes to the Group's management team and bring in new management
, and GBP349,000 of costs including staff costs of GBP118,000
relating to disposals completed in the prior year.
7. Taxation
Q1 2021 Q1 2020 FY 2020
All figures in GBP000's (unaudited) (unaudited) (audited)
----------------------------------------- ---- -------------- -------------- ------------
Current tax expense
Analysis of charge in period
Current tax:
Current income tax expense on profits
for the period 755 864 3,141
Adjustment in respect of prior
periods - - 836
----------------------------------------------- -------------- -------------- ------------
Total current tax charge 755 864 3,977
Deferred tax expense
Origination and reversal of temporary
differences (1,045) (1,464) (3,490)
Deferred tax movements in respect
of prior periods - - (283)
----------------------------------------------- -------------- -------------- ------------
Total deferred tax credit (1,045) (1,464) (3,773)
Total tax (credit)/charge on continuing
operations (290) (600) 204
----------------------------------------------- -------------- -------------- ------------
8. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary equity holders of the Company by the
weighted average number of ordinary shares in issue during the
period.
Q1 2020
Q1 2021 Restated* FY 2020
(unaudited) (unaudited) (audited)
--------------------------------- -------------- -------------- ------------
Loss attributable to equity
holders of the parent (GBP000)
Continuing operations (717) (2,858) (23,749)
Discontinued operations - (2,858) (9,174)
Total (717) (5,716) (32,923)
--------------------------------- -------------- -------------- ------------
Weighted average number of
shares in issue (thousands) 667,926 558,891 625,466
Basic loss per share (pence)
Continuing operations (0.11) (0.51) (3.80)
Discontinued operations - (0.51) (1.47)
Total (0.11) (1.02) (5.26)
--------------------------------- -------------- -------------- ------------
* see note 5.
Diluted earnings/loss per share is calculated by adjusting the
weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares. This is done
by calculating the number of shares that could have been acquired
at fair value (determined as the average market price of the
Company's shares for the period) based on the monetary value of the
subscription rights attached to outstanding share options and
warrants. The number of shares calculated above is compared with
the number of shares that would have been issued assuming the
exercise of the share options and warrants.
Therefore, the Company is required to adjust the earnings per
share calculation in relation to the share options that are in
issue under the Company's share-based incentive schemes, and
outstanding warrants. However, as any potential ordinary shares
would be anti-dilutive due to losses being made there is no
difference between Basic loss per share and Diluted loss per share
for any of the periods being reported.
At 31 December 2020, a total of 2,944,955 potential ordinary
shares have not been included within the calculation of statutory
diluted loss per share for the period (30 September 2020:
1,426,663) as they are anti-dilutive. These potential ordinary
shares could dilute earnings/loss per share in the future.
9. Loans and borrowings
The Group's borrowing facilities includes a USD 15m RCF provided
by DNB Bank ASA (50%) and HSBC UK Bank PLC (50%). At 31 December
2020 the whole facility (USD 15m) was undrawn.
10. Share capital and share premium
Additional
paid-in
Share share
Number Capital capital
Allotted, called up and fully paid GBP000 GBP000
------------------------------------ ------------ --------- -----------
Ordinary shares of 0.1p each
Balance at 30 September 2019 667,685,612 668 399,601
Exercise of share options 705,887 - 202
Balance at 30 September 2020 668,391,499 668 399,803
------------------------------------ ------------ --------- -----------
During the period ended 31 December 2020, the Company issued a
total of 705,887 shares of 0.1p each to certain employees of the
Group relating to share options. Of which, 228,366 were exercised
at a price of 0.1 pence and 477,521 were exercised at a price of
42.5 pence.
11. Alternative profit measures and other metrics
Management has presented the performance measures Adjusted
EBITDA, Adjusted Operating Profit and Adjusted Profit Before Tax
because it monitors performance at a consolidated level using these
and believes that these measures are relevant to an understanding
of the Group's financial performance.
Adjusted EBITDA which reflects underlying profitability, is
earnings before interest, tax, depreciation, amortisation,
impairment, exceptional items including disposal and acquisition
related expenditure and is shown on the Income Statement.
Adjusted Operating Profit/Loss is operating loss before
exceptional items including disposal and acquisition related items
and amortisation and impairment of intangible assets excluding
development costs as reconciled below.
Adjusted Profit/Loss Before Tax is earnings before tax,
amortisation and impairment of intangibles assets excluding
development costs, exceptional items including disposal and
acquisition related expenditure as reconciled below. These measures
are not defined performance measures in IFRS. The Group's
definition of these measures may not be comparable with similarly
titled performance measures and disclosures by other entities.
Reconciliation of Adjusted Operating Profit/Loss to Operating
Loss
Continuing operations
FY 2020
Q1 2020
Q1 2021 Restated* Restated
All figures in GBP000's (unaudited) (unaudited) (audited)
------------------------------------------ ---- -------------- -------------- ------------
Revenue 29,030 24,691 105,565
Cost of sales (14,359) (11,752) (50,603)
------------------------------------------------ -------------- -------------- ------------
Gross profit 14,671 12,939 54,962
Research and development costs (1,745) (2,972) (7,282)
Other operating costs (9,285) (9,778) (33,337)
Depreciation and impairment (1,771) (1,453) (6,640)
Amortisation of capitalised development - - -
costs
Share of profit of equity accounted
investees net of tax (611) 211 150
------------------------------------------------ -------------- -------------- ------------
Adjusted Operating Profit/(Loss) 1,259 (1,053) 7,853
Exceptional - restructuring,
disposal and acquisition related
items (593) (134) (2,114)
Amortisation and impairment of
intangible assets excluding development
costs (3,918) (4,355) (16,613)
------------------------------------------------ -------------- -------------- ------------
Operating loss (3,252) (5,542) (10,874)
------------------------------------------------ -------------- -------------- ------------
Reconciliation of Loss Before Taxation to Adjusted Profit/Loss
Before Tax
Continuing operations
FY 2020
Q1 2020
Q1 2021 Restated* Restated
All figures in GBP000's (unaudited) (unaudited) (audited)
------------------------------------------ ---- -------------- -------------- ------------
Loss before taxation (515) (3,184) (22,571)
Exceptional - restructuring,
disposal and acquisition related
items 593 134 2,114
Amortisation and impairment of
intangible assets excluding development
costs 3,918 4,355 16,613
------------------------------------------------ -------------- -------------- ------------
Adjusted Profit/(Loss) Before
Tax 3,996 1,305 (3,844)
------------------------------------------------ -------------- -------------- ------------
* See note 5.
Other Metrics
FY 2020
Q1 2020
Q1 2021 Restated* Restated
All figures in GBP000's (unaudited) (unaudited) (audited)
---------------------------------- ---- -------------- -------------- ------------
Total R&D Investment
Research and development costs
- Continuing operations 1,745 2,972 7,282
- Discontinued operations - 1,048 2,725
---------------------------------------- -------------- -------------- ------------
1,745 4,020 10,007
Internal capitalised development
costs 1,060 897 4,583
------------
Total R&D investment 2,805 4,917 14,590
---------------------------------------- -------------- -------------- ------------
Liquidity
Following the refinancing in June 2019 a key financial covenant
is a minimum liquidity of GBP10m, defined as cash plus undrawn
facilities.
31 December
2020
All figures in GBP000's (unaudited)
--------------------------- -------------
Cash and cash equivalents 56,428
Undrawn bank facility 10,978
67,406
--------------------------- -------------
12. Net debt
Net debt is cash and cash equivalents less loans and borrowings
excluding balances held for sale.
31 December 31 December 30 September
2020 2019 2020
All figures in GBP000's (unaudited) (unaudited) (audited)
------------------------------------ ------------- ------------- --------------
Cash and cash equivalents 56,428 17,020 71,605
Loans and borrowings - current (4,209) (2,951) (5,339)
Loans and borrowings - non-current (104,077) (105,366) (103,819)
(51,858) (91,297) (37,553)
------------------------------------ ------------- ------------- --------------
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