TIDMBMK
RNS Number : 5326J
Benchmark Holdings PLC
24 August 2021
24 August 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")
Q3 Results
(3 months ended 30 June 2021)
Strong quarter with continuing momentum and strong performance
across all business areas
Strategic milestone with successful launch of Ectosan(R) Vet and
CleanTreat(R) post period
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 30 June 2021 (the
"period") . All Q3 FY21, Q3 FY20, YTD Q3 2021 and YTD Q3 2020
figures quoted in this announcement are based on unaudited
accounts.
Highlights - strong Q3 2021 performance across all business
areas and continuing momentum
-- Revenues 17% ahead of the prior year (+25% CER) (continuing
operations) with strong performance across all business areas:
o Genetics revenues 21% above Q3 2020 driven by higher sales of
salmon eggs
o Advanced Nutrition revenues 15% above the prior year
reflecting growth across all product lines and continuing its good
performance
o Health revenues 20% above Q3 2020 benefitting from higher
Salmosan sales
-- Adjusted EBITDA more than doubled as a result of higher
revenues, operational improvements and continuous cost control
-- YTD Q3 2021, Group revenues were 9% higher than the prior
year (+15% CER) and Adjusted EBITDA 26% ahead (38% CER) (continuing
operations)
-- Liquidity of c.GBP51m (cash and available facility) as at 23 August 2021
GBPm YTD Q3 CER**
YTD Q3 2020 YTD Q3 Q3 2020 CER**
2021 Restated* 2021 Q3 2021 Restated* Q3 2021
------------------------------------ --------- ----------- -------- ---------- ----------- ---------
87.8 92.6 28.3 30.2
Revenue from continuing operations +9% 80.3 +15% +17% 24.1 +25%
------------------------------------ --------- ----------- -------- ---------- ----------- ---------
Adjusted
------------------------------------ --------- ----------- -------- ---------- ----------- ---------
Adjusted EBITDA(1) from continuing 12.4 13.5 4.4 4.7
operations +27% 9.8 +38% +110% 2.1 +123%
------------------------------------ --------- ----------- -------- ---------- ----------- ---------
Adj. EBITDA excluding biological 10.0 11.1 4.1 4.4
asset movements +23% 8.1 +37% +37% 3.0 +47%
------------------------------------ --------- ----------- -------- ---------- ----------- ---------
7.3 8.3 2.9 3.1
Adjusted Operating Profit(2) +40% 5.2 +60% +383% 0.6 +417%
------------------------------------ --------- ----------- -------- ---------- ----------- ---------
Statutory
------------------------------------ --------- ----------- -------- ---------- ----------- ---------
Operating loss (5.9) (8.1) (1.2) (4.2)
------------------------------------ --------- ----------- -------- ---------- ----------- ---------
Loss before tax from continuing
operations (5.9) (19.6) (2.7) (6.2)
------------------------------------ --------- ----------- -------- ---------- ----------- ---------
Loss for the Period - total
incl. discontinued operations (5.9) (23.2) (2.8) (4.4)
------------------------------------ --------- ----------- -------- ---------- ----------- ---------
Basic loss per share (p) (1.01) (3.83) (0.44) (0.66)
------------------------------------ --------- ----------- -------- ---------- ----------- ---------
Net debt(3) 76.1 54.7 76.1 54.7
------------------------------------ --------- ----------- -------- ---------- ----------- ---------
Net debt excluding lease
liabilities 52.7 45.3 52.7 45.3
------------------------------------ --------- ----------- -------- ---------- ----------- ---------
* YTD Q3 2020 and Q3 2020 numbers have been restated to reflect
changes to the ongoing continuing business since the figures were
originally reported (note 5).
** Constant exchange rate (CER) figures derived by retranslating
current year figures using previous year's foreign exchange
rates.
(1) Adjusted EBITDA is EBITDA (earnings before interest, tax,
depreciation and amortisation and impairment), before exceptional
items including acquisition related expenditure.
(2) Adjusted Operating Profit is operating loss before
exceptional items including acquisition related items and
amortisation of intangible assets excluding development costs.
(3) Net debt is cash and cash equivalents less loans and
borrowings.
Divisional summary (Continuing operations)
GBPm YTD Q3 CER** CER**
YTD Q3 2020 YTD Q3 Q3 2020 Q3
2021 Restated* 2021 Q3 2021 Restated* 2021
-------------------------------------------------------- ------- ---------- -------- -------- ---------- -------
Revenue
-------------------------------------------------------- ------- ---------- -------- -------- ---------- -------
53.4 57.3 18.4 20.6
Advanced Nutrition +13% 47.3 +21% +15% 16.0 +29%
-------------------------------------------------------- ------- ---------- -------- -------- ---------- -------
30.9 31.7 8.7 8.5
Genetics +4% 29.7 +7% +21% 7.2 +18%
-------------------------------------------------------- ------- ---------- -------- -------- ---------- -------
3.6 3.6 1.2 1.2
Health -8% 3.9 -8% +20% 1.0 +20%
-------------------------------------------------------- ------- ---------- -------- -------- ---------- -------
Adjusted EBITDA(1)
-------------------------------------------------------- ------- ---------- -------- -------- ---------- -------
10.2 11.0 3.9 4.4
Advanced Nutrition +65% 6.2 +77% +39% 2.8 +57%
-------------------------------------------------------- ------- ---------- -------- -------- ---------- -------
8.2 8.5 2.2 2.1
Genetics -16% 9.8 -13% +83% 1.2 +75%
-------------------------------------------------------- ------- ---------- -------- -------- ---------- -------
5.9 6.2 1.9 1.8
* Net of fair value movements in biological assets -27% 8.1 -23% -10% 2.1 -14%
-------------------------------------------------------- ------- ---------- -------- -------- ---------- -------
(3.8) (3.8) (1.2) (1.2)
Health +3% (3.9) +3% +8% (1.3) +8%
-------------------------------------------------------- ------- ---------- -------- -------- ---------- -------
* YTD Q3 2020 and Q3 2020 numbers have been restated to reflect
changes to the ongoing continuing business since the figures were
originally reported (note 5).
** Constant exchange rate (CER) figures derived by retranslating
current year figures using previous year's foreign exchange
rates.
(1) Adjusted EBITDA is EBITDA (earnings before interest, tax,
depreciation and amortisation and impairment), before exceptional
items including acquisition related expenditure.
Operational highlights - launch of Ectosan(R) Vet (formerly
BMK08) and CleanTreat(R) post period end; first sea lice treatments
delivered successfully
-- Post period end, the Group received Marketing Authorisation
in Norway for Ectosan(R) Vet and the MRL (Maximum Residue Limit)
was adopted into the Agreement of the European Economic Area,
completing the regulatory steps for commercialisation. The first
treatments were successfully delivered in August 2021. Ectosan(R)
Vet is the first new sea lice medicine to come to market in more
than a decade
-- Good commercial and operational momentum in Advanced
Nutrition continues with strong growth YoY
-- Expansion projects for salmon and shrimp Genetics in Iceland,
Fellsmere and Chile are progressing according to plan
-- Continue to win new contracts for future delivery in the emerging land-based salmon segment
Market environment - Reopening of hospitality sector creates
positive market outlook
-- The gradual reopening of the hospitality sector creates a
positive outlook for our end markets
-- Conditions in the salmon industry are positive with a
recovery in prices after a drop related to Covid-19; demand growth
continues to exceed global supply
-- The shrimp market is recovering with potential to bounce back
to pre-Covid-19 levels despite continued hardships due to the
pandemic in certain markets
-- The seabass and seabream market have substantially recovered
Current trading and Outlook
-- The Group is trading in line with market expectations for the
full year with good revenue visibility for the remainder of the
year
-- Looking forward to FY 2022, consistency in performance is
expected to continue in Genetics and Advanced Nutrition, while
Health starts benefitting from Ectosan(R) Vet and CleanTreat(R)
revenue stream
Trond Williksen, CEO, commented:
"We are very pleased with the results and progress in Q3 2021
and the subsequent period. Our three business areas performed
strongly, and we achieved a major strategic milestone with the
successful commercial launch of Ectosan(R) Vet and CleanTreat(R).
We now have the basis to have three profitable business areas
moving the Group closer to overall profitability.
"There is good momentum in the business following the
streamlining exercise conducted in 2020 and the adoption of a new
commercial focus. O ur end markets are gradually recovering from
the impact of Covid-19, creating a positive environment for our
business. All this provides confidence in our ability to deliver
full year results in line with market expectations as well as
progress in future years."
Details of analyst / investor call today
There will be a call at 9:00am UK time today for analysts and
investors. 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 8990 / 8742
Katie Hunt, Reg Hoare, Alistair de Kare-Silver
benchmark@mhpc.com
About Benchmark
Benchmark is a leading aquaculture biotechnology company.
Benchmark's mission is to enable aquaculture producers to improve
their sustainability and profitability.
We bring together biology and technology to develop innovative
products and solutions 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), specialist diets and
probiotics and sea lice treatments. Find out more at
www.benchmarkplc.com
Management Report
We are very pleased with the Group's performance in Q3 2021. Our
three business areas delivered strong results, and we achieved a
major strategic milestone post period end with the completion of
all the regulatory steps required to commercialise Ectosan(R) Vet
(previously code named BMK08) and CleanTreat(R) in Norway, our main
target market for our new sea lice solution. The first sea lice
treatments were delivered successfully in August 2021 generating
the first commercial revenues from our new solution.
Group revenues from continuing operations for the quarter at
GBP28.3m were 17% ahead of the prior year (+25% CER) reflecting
good performance across all business areas. YTD group revenues from
continuing operations were 9% higher than the prior year at
GBP87.8m (+15% CER) (YTD Q3 2020 (restated): GBP80.3m). The drivers
behind our results are outlined in the business area commentary
below.
The continuing good performance in the year highlights the
benefits of a streamlined organisation with a clear commercial
focus. In addition, we have seen some recovery from Covid-19 in our
end markets, particularly in shrimp, as Covid-19 restrictions ease
and the hospitality sector reopens. While conditions in some shrimp
producing countries including India remain difficult there is
positive momentum and significant upside potential to reach pre
Covid-19 levels. The salmon market remains stable with price
recovery after a drop relating to Covid-19 and the Mediterranean
sea bass/sea bream market has substantially recovered.
We maintain our disciplined approach to cost control, cash
management and investment. Our goal is to maintain or improve the
margins in our established business, while investing in the launch
of new products including SPR shrimp, and in the expansion of our
core areas such as salmon genetics. Operating expenses in Q3 2021
of GBP9.3m were 25% above the prior year and R&D expenses of
GBP1.6m were up 27%. This expected increase is against a backdrop
of significant savings in Q3 2020 when, in response to the Covid-19
pandemic, we implemented cost containment and temporary salary
reductions for senior management and utilised government support
schemes. Total R&D investment including capitalised development
costs was GBP2.9m (Q3 2020: GBP2.6m). Total capex investment in the
period of GBP7.8m (Q3 2020: GBP3.7m) and GBP17.1m YTD (YTD Q3 2020:
GBP9.8m) includes investment in CleanTreat (R), in our Advanced
Nutrition facilities in Thailand and in the new incubation facility
in Iceland .
Adjusted EBITDA from continuing operations for the quarter was
110% up at GBP4.4m against GBP2.1m in Q3 2020 as a result of higher
revenues and ongoing cost control, partially offset by an increase
in operating costs as activity normalises post Covid-19. YTD
adjusted EBITDA at GBP12.4m was GBP2.6m, 27% up on the prior year
(YTD Q3 2020 (restated): GBP9.8m).
We continued to make good progress in our strategic priorities
which are aligned towards our goal of becoming the leading
aquaculture biotechnology company delivering sustainable
profitability.
Advanced Nutrition
Advanced Nutrition performed strongly in the quarter with growth
across all product areas - Artemia, diets and health. The good
performance is the result of a successful commercial programme to
regain market share in Artemia and strengthen our position in diets
and health, as well as recovering shrimp and seabass/seabream
markets. Revenues of GBP18.4m in Q3 were 15% above the prior year
(Q3 2020: GBP16.0m). YTD Q3 revenues of GBP53.4m were 13% above the
prior year (YTD Q3 2020: GBP47.3m). Adjusted EBITDA in Q3 2021 was
GBP3.9m (Q3 2020: GBP2.8m) and YTD Q3 Adjusted EBITDA was GBP10.2m,
64% above the prior year YTD (YTD Q3 2020: GBP6.2m). The increase
in Adjusted EBITDA margin reflects higher sales, as well as growth
in diets which have a higher margin and ongoing cost control.
By product, Artemia revenues were up 21%, Diets were up 27% and
Health was up 56% in the quarter. YTD Q3, Artemia revenues were up
19% versus prior year despite a strategic drop in price to regain
market share. Diets were up 26% and Health was up 7%. By region,
Asia performed strongly while the Americas remain challenging
partly because of the ongoing Covid-19 pandemic and logistical
difficulties.
Genetics
Genetics performed well in the period with revenues of GBP8.7m,
21% above the prior year (Q3 2020: GBP7.2m) driven by higher sales
of salmon eggs primarily from the Salten facility in Norway.
Current capacity from our Salten facility is sold out and we
continue to work on the operational optimisation and ramp up of
Salten to reach its full 150m egg capacity. Harvest income was
lower than the prior year due to lower salmon prices. YTD Q3
revenues at GBP30.9m were 4% ahead of the prior year (YTD Q3 2020:
GBP29.7m) reflecting the same drivers as in Q3.
Adjusted EBITDA for Q3 2021 of GBP2.2m was 83% higher than prior
year (Q3 2020: GBP1.2m) as a result of higher sales offsetting an
increase in operating costs as operations normalise post Covid-19.
Adjusted EBITDA for YTD Q3 of GBP8.2m was 16% below the prior year
(YTD Q3 2020: GBP9.8m) due to lower harvest income and lower JV
revenues.
Biological asset increase of GBP1.2m in the quarter (Q3 FY20:
GBP1.5m) was impacted by adverse foreign exchange movements of
GBP0.5m (Q3 FY20: favourable GBP1.0m) and includes a fair value
increase of GBP0.4m (Q3 2020: GBP0.9m decrease) as a result of
higher salmon egg sales and higher price. YTD Q3 increase in
biological assets of GBP5.3m (YTD Q3 2020: GBP1.3m) reflects a
favourable foreign exchange movement of GBP0.8m (YTD Q3 FY20:
adverse GBP2.6m) and includes a fair value increase of GBP2.3m (YTD
Q3 2020: GBP1.7m) as salmon egg production, sales and prices
increase.
By species, salmon performed well maintaining a strong market
position in the northern hemisphere. We also continue to win new
contracts for future delivery in the emerging land-based segment
where we have established a leading position which will support
future growth. Delivery of land-based contracts will commence as
the new land-based facilities come on stream which we expect to be
gradual in the years to come. The expansion of the incubation
facility in Iceland will support future demand across all
production paradigms and is progressing according to plan. In
Chile, we continued our efforts to penetrate the market in a
disciplined manner, achieving first sales in the period. The
Chilean market is well established and we expect to build a market
position gradually over time.
In shrimp, test market sales of our SPR shrimp continued in the
period and the expansion of the Fellsmere facility in Florida
progressed according to plan. The additional capacity is expected
to come onstream by the end of the year. We are planning a phased
entry into the Asian markets ensuring that we have an optimised
product in each region. During Q3 we capitalised GBP0.4m from
development costs (YTD Q3 2021: GBP1.3m) and incurred operating
costs of GBP0.2m (YTD Q3 2021: GBP1.2m).
In Tilapia, our focus is on achieving profitability seeking new
commercial opportunities and establishing the optimal scale for a
sustainably profitable business. During the period we incurred
GBP0.2m operating costs (YTD Q3 2021: GBP0.7m).
Health
Post period-end the Health business area achieved a very
significant strategic milestone when marketing authorisation was
obtained in Norway for its new sea lice treatment, Ectosan(R) Vet
and CleanTreat(R), as well as ratification of the MRL (Maximum
Residue Limit) in Norway. Having concluded these steps, Benchmark
is now able to commercialise its novel sea lice solution in Norway.
Benchmark's solution which is highly efficacious, is good for
animal welfare and protects the environment from discharge of
medicine into the ocean is the first sea lice medicine to be
introduced in the market in more than a decade. We have two
CleanTreat(R) units in operation and have successfully delivered
the first sea lice treatments to our customers during August.
Revenues in Q3 2021 from continuing operations of GBP1.2m were
20% above the prior year (Q3 2020 (restated): GBP1.0m) due to
higher sales of Salmosan in Norway and the Faroes. YTD Q3 2021
revenues were GBP3.6m, 8% behind prior year (YTD Q3 2020
(restated): GBP3.9m).
Adjusted EBITDA from continuing operations in Q3 2021 was a loss
of GBP1.2m (Q3 2020 (restated): loss GBP1.3m) reflecting higher
revenues offset by continued investment in Ectosan(R) Vet and
CleanTreat(R). YTD Q3 Adjusted EBITDA was a loss of GBP3.8m (Q3 YTD
2020 (restated): loss GBP3.9m).
Operating costs associated with Ectosan(R) Vet and CleanTreat(R)
were GBP3.4m YTD Q3 2021, of which GBP1.7m have been capitalised
and capex investment in CleanTreat(R) YTD Q3 2021 was GBP3m.
Finance costs, cashflow and net debt
Net finance cost for the quarter of GBP1.4m is GBP0.6m lower
than the prior year (Q3 2020: GBP2.0m). Q3 2021 had forex gains of
GBP0.7m (Q3 2020: GBP1.4m loss) and no movement on the fair value
of the financial instrument used to hedge the currency and interest
risk on the NOK bond financing (Q3 2020: GBP1.6m gain). Interest
charge (including interest expense on right-of-use assets) of
GBP2.1m (Q3 2020: GBP2.2m) was slightly lower due to favourable
exchange rate movements, offset by GBP0.1m increase in interest on
right-of-use assets.
Net finance cost for the YTD Q3 at GBP0.1m is GBP11.4m lower
than the prior year (YTD 2020: GBP11.5m). The main reasons for the
lower net cost are a YTD gain of GBP2.4m on revaluation of
financial instruments mentioned above (YTD Q3 2020: GBP2.1m loss)
and forex gains of GBP4.0m (YTD Q3 2020: GBP3.2m loss). Interest
charge (including interest expense on right-of-use assets) of
GBP6.5m (Q3 2020: GBP6.4m) is broadly in line with the previous
year.
Net debt at the quarter end was GBP76.1m (30 June 2020:
GBP54.7m; 30 Sept 2020: GBP37.6m) and net debt excluding lease
liabilities was GBP52.7m (30 June 2020: GBP45.3m; 30 Sept 2020:
GBP27.1m). This is a result of a cash outflow from operations of
GBP0.1m (cash inflow YTD 2020: GBP0.5m) and capex of GBP13.5m. The
main areas of capex investment in the period include CleanTreat(R),
the fire prevention equipment in our facility in Thailand and the
new incubation centre in Iceland. Capitalised development costs
totalled GBP3.6m, mainly related to Ectosan(R) Vet and
CleanTreat(R) and SPR shrimp.
We continue to maintain tight control of costs and working
capital across the Group. Our priority is to maintain a strong
balance sheet in the business to maintain momentum and support the
execution of our growth opportunities. Liquidity at the end of the
period was GBP54.1m providing GBP44.1m of headroom against our
minimum liquidity covenant.
Current Trading and Outlook
The Group is performing well across its three business areas and
is trading in line with market expectations for the full year.
Looking forward, our end markets are gradually recovering from
the impact of Covid-19 as restrictions ease in certain territories,
creating a more positive trading environment for our businesses.
This, together with the successful commercial launch of Ectosan(R)
Vet and CleanTreat(R), the continuing good performance in Genetics
and Advanced Nutrition and our ongoing cost and cash management
discipline, are expected to benefit our financial performance going
forward.
Longer term, the opportunities in our end markets remain
significant with an increasing need for sustainable solutions in
the aquaculture industry. As a focused aquaculture biotechnology
company and proactive industry leader, with a clear commercial
focus and capital allocation priorities, we are well positioned to
improve sustainability across the aquaculture and deliver
profitable growth in future years.
Benchmark Holdings plc
Consolidated Income Statement for the period ended 30 June
2021
Q3 2020 YTD Q3 YTD Q3
Q3 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's Notes (unaudited) (unaudited) (unaudited) (unaudited) (audited)
------------------------------ ------ -------------- -------------- -------------- ---------------- ------------
Revenue 4 28,336 24,149 87,801 80,326 105,565
Cost of sales (13,024) (13,131) (41,646) (38,288) (50,603)
------------------------------ ------
Gross profit 15,312 11,018 46,155 42,038 54,962
Research and development
costs (1,590) (1,248) (5,172) (5,975) (7,282)
Other operating costs (9,329) (7,455) (28,026) (26,427) (33,337)
Share of profit/(loss)
of equity-accounted
investees,
net of tax 35 (186) (606) 205 150
------------------------------ ------ -------------- -------------- -------------- ---------------- ------------
Adjusted EBITDA(2) 4,428 2,129 12,351 9,841 14,493
Exceptional - restructuring,
disposal and acquisition
related items 6 (187) (581) (1,055) (759) (2,114)
------------------------------ ------ -------------- -------------- -------------- ---------------- ------------
EBITDA(1) 4,241 1,548 11,296 9,082 12,379
Depreciation and impairment (1,555) (1,567) (5,050) (4,656) (6,640)
Amortisation and impairment (3,931) (4,173) (12,109) (12,506) (16,613)
------------------------------ ------ -------------- -------------- -------------- ---------------- ------------
Operating loss (1,245) (4,192) (5,863) (8,080) (10,874)
Finance cost (2,110) (1,999) (6,495) (11,635) (12,779)
Finance income 674 11 6,424 90 1,082
------------------------------ ------ -------------- -------------- -------------- ---------------- ------------
Loss before taxation (2,681) (6,180) (5,934) (19,625) (22,571)
Tax on loss 7 (128) 580 58 223 (204)
------------------------------ ------ -------------- ------------
Loss from continuing
operations (2,809) (5,600) (5,876) (19,402) (22,775)
------------------------------ ------ -------------- -------------- -------------- ---------------- ------------
Discontinued operations
Profit/(loss) from
discontinued
operations, net of tax 5 - 1,204 - (3,794) (9,174)
------------------------------ ------ -------------- -------------- -------------- ---------------- ------------
(2,809) (4,396) (5,876) (23,196) (31,949)
------------------------------ ------ -------------- -------------- -------------- ---------------- ------------
Loss for the period
attributable
to:
- Owners of the parent (2,972) (4,413) (6,790) (23,383) (32,923)
- Non-controlling interest 163 17 914 187 974
------------------------------ ------ -------------- --------------
(2,809) (4,396) (5,876) (23,196) (31,949)
------------------------------ ------ -------------- -------------- -------------- ---------------- ------------
Earnings per share
Basic loss per share (pence) 8 (0.44) (0.66) (1.01) (3.83) (5.26)
Diluted loss per share
(pence) 8 (0.44) (0.66) (1.01) (3.83) (5.26)
Earnings per share -
continuing
operations
Basic loss per share (pence) 8 (0.44) (0.84) (1.01) (3.20) (3.80)
Diluted loss per share
(pence) 8 (0.44) (0.84) (1.01) (3.20) (3.80)
All figures in GBP000's
------------------------------ ------ -------------- -------------- -------------- ---------------- ------------
Adjusted EBITDA from
continuing
operations 4,428 2,129 12,351 9,841 14,493
Adjusted EBITDA from
discontinued
operations 5 - (1,822) - (6,273) (8,726)
------------------------------ ------ -------------- -------------- -------------- ---------------- ------------
Total Adjusted EBITDA 4,428 307 12,351 3,568 5,767
------------------------------ ------ -------------- -------------- -------------- ---------------- ------------
1 EBITDA - Earnings/loss before interest, tax, depreciation,
amortisation and impairment
2 Adjusted EBITDA - EBITDA before exceptional and acquisition
related items
* Q3 2020 and YTD Q3 2020 numbers have been restated to reflect
changes to the ongoing continuing business since the figures were
originally reported (note 5)
Benchmark Holdings plc
Consolidated Statement of Comprehensive Income for the period
ended 30 June 2021
Q3 2020 YTD Q3 YTD Q3
Q3 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
------------------------- ---- -------------- -------------- -------------- --------------- ------------
Loss for the period (2,809) (4,396) (5,876) (23,196) (31,949)
Other comprehensive
income
Items that are or may
be reclassified
subsequently
to profit or loss
Foreign exchange translation
differences (385) 8,886 (14,054) (8,438) (20,327)
Cash flow hedges - changes
in fair value (514) 4,982 2,306 (4,904) (5,932)
Cash flow hedges -
reclassified
to profit or loss 257 (1) 544 (163) (153)
Total comprehensive income
for the period (3,451) 9,471 (17,080) (36,701) (58,361)
------------------------------- -------------- -------------- -------------- --------------- ------------
Total comprehensive
income
for the period
attributable
to:
- Owners of the parent (3,645) 9,169 (18,304) (36,253) (58,532)
- Non-controlling interest 194 302 1,224 (448) 171
------------------------------- --------------- ------------
(3,451) 9,471 (17,080) (36,701) (58,361)
------------------------------ -------------- -------------- -------------- --------------- ------------
Total comprehensive income
for the period attributable
to owners of the parent:
- Continuing operations (3,645) 7,523 (18,304) (33,441) (50,604)
- Discontinued operations - 1,646 - (2,812) (7,928)
-------------------------------
(3,645) 9,169 (18,304) (36,253) (58,532)
------------------------------ -------------- -------------- -------------- --------------- ------------
* Q3 2020 and YTD Q3 2020 numbers have been restated to reflect
changes to the ongoing continuing business since the figures were
originally reported (note 5).
Benchmark Holdings plc
Consolidated Balance Sheet as at 30 June 2021
30 June 30 September
2021 30 June 2020 2020
All figures in GBP000's Notes (unaudited) (unaudited) (audited)
---------------------------------- ------ ------------ ------------- --------------
Assets
Property, plant and equipment 74,995 86,021 65,601
Right-of-use assets 25,306 8,743 10,347
Intangible assets 228,156 260,158 247,003
Equity-accounted investees 3,289 3,884 3,690
Other investments 15 24 23
Biological and agricultural
assets 17,119 9,328 16,621
Non-current assets 348,880 368,158 343,285
---------------------------------- ------ ------------ ------------- --------------
Inventories 20,260 23,323 18,926
Biological and agricultural
assets 20,610 20,435 15,848
Trade and other receivables 34,462 31,505 39,371
Cash and cash equivalents 43,187 54,492 71,605
---------------------------------- ------ ------------ ------------- --------------
118,519 129,755 145,750
Assets held for sale - 9,812 -
Current assets 118,519 139,567 145,750
---------------------------------- ------ ------------ ------------- --------------
Total assets 467,399 507,725 489,035
---------------------------------- ------ ------------ ------------- --------------
Liabilities
Trade and other payables (32,798) (37,489) (45,692)
Loans and borrowings 9 (10,481) (4,809) (5,339)
Corporation tax liability (4,439) (3,553) (4,344)
Provisions - (386) -
---------------------------------- ------ ------------ ------------- --------------
(47,718) (46,237) (55,375)
Liabilities directly associated - (3,799) -
with the assets held for sale
------------
Current liabilities (47,718) (50,036) (55,375)
---------------------------------- ------ ------------ ------------- --------------
Loans and borrowings 9 (108,829) (104,335) (103,819)
Other payables (1,803) (2,020) (1,754)
Deferred tax (28,582) (34,915) (32,647)
Non-current liabilities (139,214) (141,270) (138,220)
---------------------------------- ------ ------------ ------------- --------------
Total liabilities (186,932) (191,306) (193,595)
---------------------------------- ------ ------------ ------------- --------------
Net assets 280,467 316,419 295,440
---------------------------------- ------ ------------ ------------- --------------
Issued capital and reserves
attributable to owners of the
parent
Share capital 10 670 668 668
Additional paid-in share capital 10 400,622 399,601 399,601
Capital redemption reserve 5 5 5
Retained earnings (147,876) (133,311) (142,170)
Hedging reserve (6,800) (8,633) (9,651)
Foreign exchange reserve 26,313 52,399 40,678
Equity attributable to owners
of the parent 272,934 310,729 289,131
Non-controlling interest 7,533 5,690 6,309
---------------------------------- ------
Total equity and reserves 280,467 316,419 295,440
---------------------------------- ------ ------------ ------------- --------------
The accompanying notes are an integral part of this consolidated
financial information.
Benchmark Holdings plc
Consolidated Statement of Changes in Equity for the period ended
30 June 2021
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 - - - - (6,790) (6,790) 914 (5,876)
Other
comprehensive
income - - (14,365) 2,851 - (11,514) 310 (11,204)
Total
comprehensive
income
for the
period - - (14,365) 2,851 (6,790) (18,304) 1,224 (17,080)
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Contributions
by and
distributions
to owners
Share issue 2 1,021 - - - 1,023 - 1,023
Share-based
payment - - - - 1,084 1,084 - 1,084
Total
contributions
by
and
distributions
to
owners 2 1,021 - - 1,084 2,107 - 2,107
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Total
transactions
with
owners of the
Company 2 1,021 - - 1,084 2,107 - 2,107
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
As at 30 June
2021
(unaudited) 670 400,622 26,318 (6,800) (147,876) 272,934 7,533 280,467
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
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 - - - - (23,383) (23,383) 187 (23,196)
Other
comprehensive
income - - (7,803) (5,067) - (12,870) (635) (13,505)
Total
comprehensive
income
for the
period - - (7,803) (5,067) (23,383) (36,253) (448) (36,701)
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
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 - - - - 988 988 - 988
Total
contributions
by
and
distributions
to
owners 109 41,557 - - 988 42,654 - 42,654
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Total
transactions
with
owners of the
Company 109 41,557 - - 988 42,654 - 42,654
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
As at 30 June
2020
(unaudited) 668 399,601 52,404 (8,633) (133,311) 310,729 5,690 316,419
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
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 30
June 2021
YTD Q3 YTD Q3
2021 2020 FY 2020
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
--------------------------------------------- -------------- -------------- ------------
Cash flows from operating activities
Loss for the period (5,876) (23,196) (31,949)
Adjustments for:
Depreciation and impairment of property,
plant and equipment 5,050 6,353 9,138
Amortisation and impairment of intangible
fixed assets 12,109 13,259 19,402
(Loss)/gain on sale of property, plant
and equipment 47 75 (1,140)
Gain on sale of subsidiaries - (5,564) (14,120)
Gain on sale of other investments (91) - -
Finance income (2,460) (89) (111)
Finance costs 6,495 6,394 9,695
Other adjustments for non-cash items - (1,776) 200
Share of loss/(profit) of equity-accounted
investees, net of tax 606 (205) (150)
Foreign exchange (gains)/losses (4,237) 4,015 (132)
Share based payment expense 1,084 988 1,669
Tax (credit)/charge (58) (113) 314
--------------------------------------------- -------------- -------------- ------------
12,669 141 (7,184)
Decrease in trade and other receivables 4,579 9,790 4,202
(Increase)/decrease in inventories (2,559) (648) 3,741
Increase in biological assets (4,418) (3,931) (7,474)
(Decrease)/increase in trade and other
payables (7,760) (3,175) 5,006
Decrease in provisions (29) (18) (260)
--------------------------------------------- -------------- -------------- ------------
2,482 2,159 (1,969)
Income taxes paid (2,625) (1,667) (2,087)
--------------------------------------------- -------------- -------------- ------------
Net cash flows used in operating activities (143) 492 (4,056)
--------------------------------------------- -------------- -------------- ------------
Investing activities
Proceeds from sale of subsidiaries,
net of cash disposed of - 5,025 17,487
Purchases of investments (247) (373) (522)
Proceeds from disposal of investments 99 6,932 6,932
Purchases of property, plant and equipment (12,789) (5,235) (5,851)
Payments for initial costs of right-of-use
assets (586) - -
Proceeds from sales of intangible
assets - 207 261
Purchases of intangibles (3,629) (3,249) (5,563)
Purchases of held for sale assets - - (402)
Proceeds from sale of fixed assets 88 123 16,147
Proceeds from sales of other long-term
assets - 1,776 1,776
Interest received 48 89 111
--------------------------------------------- -------------- -------------- ------------
Net cash flows used in investing activities (17,016) 5,295 30,376
--------------------------------------------- -------------- -------------- ------------
Financing activities
Proceeds of share issues 689 42,978 42,978
Share-issue costs recognised through
equity - (1,312) (1,312)
Proceeds from bank or other borrowings - 7,925 8,387
Repayments of bank or other borrowings (2,696) (9,614) (10,141)
Interest and finance charges paid (5,685) (5,309) (7,659)
Repayments of lease liabilities (2,884) (1,914) (2,120)
Net cash inflow from financing activities (10,576) 32,754 30,133
--------------------------------------------- -------------- -------------- ------------
Net (decrease)/increase in cash and
cash equivalents (27,735) 38,541 56,453
Cash and cash equivalents at beginning
of period 71,605 16,051 16,051
Effect of movements in exchange rate (683) (100) (899)
--------------------------------------------- -------------- -------------- ------------
Cash and cash equivalents at end of
period 43,187 54,492 71,605
--------------------------------------------- -------------- -------------- ------------
The Consolidated Statement of Cash Flows presents cash flows
from both Continuing and Discontinued operations in the
comparatives. There were no Discontinued operations in the current
period.
Benchmark Holdings plc
Unaudited notes to the interim financial statements for period
ended 30 June 2021
1. Basis of preparation
Benchmark Holdings plc (the 'Company') is a company incorporated
domiciled in the United Kingdom. These consolidated interim
financial statements as at and for the nine months ended 30 June
2021 represent those of the Company and its subsidiaries (together
referred to as the 'Group').
These interim 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 have been
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 30 June 2021 the Group had net assets of GBP280.5m (30
September 2020: GBP295.4m), including cash of GBP43.2m (30
September 2020: GBP71.6m) as set out in the consolidated balance
sheet. The Group made a loss for the period of GBP5.9m (30
September 2020: GBP31.9m).
As noted in the Management Report, we have seen some recovery in
our end markets as the Covid-19 vaccine programmes across the world
are rolled out in key markets and the hospitality sector reopens.
The ultimate lasting impact of the pandemic on industry, the
economy, Benchmark's markets and its businesses remains to some
extent uncertain, but strong performance in the quarter and year to
date has been positive and has given cause for optimism.
The Directors prepared cash flow projections covering the period
to September 2022 as part of the budgeting process for 2021, and
these were used to assess the Group's trading and cash flow
forecasts and the forecast compliance with the covenants included
within the Group's financing arrangements. Year to date performance
has been in line with these forecasts. Cash resources were boosted
by non-core business disposals during 2020 and the ongoing cost
base following these transactions was significantly reduced.
The uncertainty relating to the future impact on the Group of
the pandemic continues to be considered as part of the Directors'
assessment of the going concern assumption, and 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
included assumptions on slower than expected recovery in global
shrimp markets, affecting demand for Advanced Nutrition products
and a three-month potential delay in the launch of Ectosan(R) Vet
(formerly referred to as BMK08) and CleanTreat(R), pushing
commercial launch back to September 2021. As noted in the
Management Report, the Directors have observed some recovery in the
shrimp markets in the performance of the Advanced Nutrition
business during the period and also announced receipt of the
marketing authorisation for its new sea lice treatment (Ectosan(R)
Vet and CleanTreat(R)) as well as and ratification of the MRL in
Norway. The latter has allowed Benchmark to commercialise this
novel treatment with first sales in August 2021, so the group
outperformed the downside sensitivity scenario noted above.
Nevertheless, 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, deferral of
capital projects and temporary hold on R&D for non-imminent
products.
The budgeting process is well underway for 2022, and while this
is not yet finalised, the projections show adequate resources and
liquidity to continue to support the going concern assertion.
It remains difficult to predict the overall outcome and lasting
impact of the pandemic, but under the severe but plausible downside
scenarios modelled, which the Group has so far outperformed, 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 interim financial
statements. Accordingly, these interim 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, Adjusted Profit Before Tax and
Adjusted EBITDA excluding fair value movement on biological assets
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). F urthermore,
the Directors also refer to current period results using constant
currency, which are derived by retranslating current period results
using prior year's foreign exchange rates.
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
YTD Q3 YTD Q3
Q3 2021 Q3 2020 2021 2020 FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------- --------------- --------------- --------------- --------------- -------------
Genetics 8,735 7,168 30,865 29,672 41,504
Advanced Nutrition 18,410 15,972 53,437 47,267 59,362
Health 1,226 2,706 3,563 9,428 10,799
All other segments - 1,953 - 8,874 9,257
Corporate 1,207 1,209 3,611 3,993 4,939
Inter-segment sales (1,242) (1,211) (3,675) (4,480) (5,469)
Total 28,336 27,797 87,801 94,754 120,392
--------------------------- --------------- --------------- --------------- --------------- -------------
Segmental Adjusted
EBITDA
YTD Q3 YTD Q3
Q3 2021 Q3 2020 2021 2020 FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------- --------------- --------------- --------------- --------------- -------------
Genetics 2,232 1,185 8,219 9,794 14,442
Advanced Nutrition 3,919 2,787 10,158 6,086 6,266
Health (1,226) (2,847) (3,789) (10,535) (12,886)
All other segments - (299) - 140 244
Corporate (497) (519) (2,237) (1,917) (2,299)
Total 4,428 307 12,351 3,568 5,767
--------------------------- --------------- --------------- --------------- --------------- -------------
Reconciliations of segmental information to IFRS measures
Q3 2020 YTD Q3 YTD Q3 FY
Q3 2021 Restated* 2021 2020 Restated* 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------------- --------------- --------------- --------------- ----------------- -------------
Total revenue per segmental
information 28,336 27,797 87,801 94,754 120,392
Less: revenue from discontinued
operations - (3,648) - (14,428) (14,827)
---------------------------------
Consolidated revenue 28,336 24,149 87,801 80,326 105,565
--------------------------------- --------------- --------------- --------------- ----------------- -------------
Reconciliation of Reportable Segments Adjusted EBITDA to Loss
before taxation from continuing operations
----------------------------------------------------------------------------------------------------------------------
Q3 2020 YTD Q3 YTD Q3
Q3 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------------- --------------- --------------- --------------- ----------------- -------------
Total reportable segment
Adjusted EBITDA 4,925 1,125 14,588 5,345 7,822
All other segments and
Corporate Adjusted EBITDA (497) (818) (2,237) (1,777) (2,055)
--------------------------------- --------------- --------------- --------------- ----------------- -------------
4,428 307 12,351 3,568 5,767
Less: Adjusted EBITDA
from discontinued operations - 1,822 - 6,273 8,726
--------------------------------- --------------- --------------- --------------- ----------------- -------------
Adjusted EBITDA from continuing
operations 4,428 2,129 12,351 9,841 14,493
Exceptional - restructuring,
disposal and acquisition
related items (187) (581) (1,055) (759) (2,114)
Depreciation and impairment (1,555) (1,567) (5,050) (4,656) (6,640)
Amortisation and impairment (3,931) (4,173) (12,109) (12,506) (16,613)
Net finance costs (1,436) (1,988) (71) (11,545) (11,697)
Loss before taxation from
continuing operations (2,681) (6,180) (5,934) (19,625) (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 30 June 2021 (unaudited)
---------------- ------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
Sale of goods 6,991 18,371 1,225 - - - 26,587 - 26,587
Provision
of services 1,748 - 1 - - - 1,749 - 1,749
Inter-segment
sales (4) 39 - - 1,207 (1,242) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
8,735 18,410 1,226 - 1,207 (1,242) 28,336 - 28,336
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
3 months ended 30 June 2020 (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 6,457 15,956 1,983 177 - - 24,573 1,271 23,302
Provision
of services 822 - 643 1,759 - - 3,224 2,377 847
Inter-segment
sales (111) 16 80 17 1,209 (1,211) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
7,168 15,972 2,706 1,953 1,209 (1,211) 27,797 3,648 24,149
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
9 months ended 30 June 2021 (unaudited)
---------------- ------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
Sale of goods 27,022 53,381 3,542 - - - 83,945 - 83,945
Provision
of services 3,835 - 21 - - - 3,856 - 3,856
Inter-segment
sales 8 56 - - 3,611 (3,675) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
30,865 53,437 3,563 - 3,611 (3,675) 87,801 - 87,801
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
9 months ended 30 June 2020 (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 26,407 47,219 5,207 431 - - 79,264 2,310 76,954
Provision
of services 3,264 - 3,798 8,406 22 - 15,490 12,118 3,372
Inter-segment
sales 1 48 423 37 3,971 (4,480) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
29,672 47,267 9,428 8,874 3,993 (4,480) 94,754 14,428 80,326
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
*See note 5.
4. Revenue (continued)
Sale of goods and provision of services (continued)
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
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -----------
Primary geographical markets
3 months ended 30 June 2021 (unaudited)
---------------- -----------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
Norway 4,340 178 356 - - - 4,874 - 4,874
UK 911 31 462 - - - 1,404 - 1,404
Faroe Islands 1,094 7 168 - - - 1,269 - 1,269
Ecuador - 1,009 - - - - 1,009 - 1,009
India - 2,870 3 - - - 2,873 - 2,873
Greece - 1,650 - - - - 1,650 - 1,650
Singapore - 2,240 - - - - 2,240 - 2,240
Chile - 2 604 - - - 606 - 606
Turkey - 1,423 - - - - 1,423 - 1,423
Rest of
Europe 1,825 645 - - - - 2,470 - 2,470
Rest of
World 569 8,316 (367) - - - 8,518 - 8,518
Inter-segment
sales (4) 39 - - 1,207 (1,242) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
8,735 18,410 1,226 - 1,207 (1,242) 28,336 - 28,336
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
3 months ended 30 June 2020 (unaudited)
---------------- ------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment Discontinued Continued
in GBP000's Genetics Nutrition Health segments Corporate sales Total Restated* Restated*
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
Norway 3,098 205 321 - - - 3,624 316 3,308
UK 1,226 21 657 1,341 - - 3,245 1,711 1,534
Faroe Islands 1,598 2 - - - - 1,600 - 1,600
Ecuador - 1,550 - - - - 1,550 - 1,550
India - 2,085 3 - - - 2,088 - 2,088
Greece 20 1,031 - - - - 1,051 - 1,051
Singapore - 2,392 - - - - 2,392 - 2,392
Chile - - 1,084 - - - 1,084 483 601
Turkey - 681 - - - - 681 - 681
Rest of
Europe 890 775 537 509 - - 2,711 1,043 1,668
Rest of
World 447 7,214 24 86 - - 7,771 95 7,676
Inter-segment
sales (111) 16 80 17 1,209 (1,211) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
7,168 15,972 2,706 1,953 1,209 (1,211) 27,797 3,648 24,149
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
*See note 5.
4. Revenue (continued)
Primary geographical markets (continued)
9 months ended 30 June 2021 (unaudited)
---------------- -----------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
Norway 16,603 435 791 - - - 17,829 - 17,829
UK 3,567 97 477 - - - 4,141 - 4,141
Faroe Islands 4,465 16 168 - - - 4,649 - 4,649
Ecuador - 3,009 - - - - 3,009 - 3,009
India - 9,137 3 - - - 9,140 - 9,140
Greece 25 5,122 - - - - 5,147 - 5,147
Singapore - 5,590 - - - - 5,590 - 5,590
Chile 37 6 2,039 - - - 2,082 - 2,082
Turkey - 4,868 - - - - 4,868 - 4,868
Rest of
Europe 4,575 3,445 26 - - - 8,046 - 8,046
Rest of
World 1,585 21,656 59 - - - 23,300 - 23,300
Inter-segment
sales 8 56 - - 3,611 (3,675) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
30,865 53,437 3,563 - 3,611 (3,675) 87,801 - 87,801
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
9 months ended 30 June 2020 (unaudited)
---------------- ------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment Discontinued Continued
in GBP000's Genetics Nutrition Health segments Corporate sales Total Restated* Restated*
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
Norway 13,974 446 1,428 - - - 15,848 1,145 14,703
UK 5,584 75 1,909 5,795 22 - 13,385 7,150 6,235
Faroe Islands 5,164 3 34 - - - 5,201 - 5,201
Ecuador - 5,412 - - - - 5,412 - 5,412
India - 4,642 6 - - - 4,648 3 4,645
Greece 61 5,025 - - - - 5,086 - 5,086
Singapore - 4,257 7 - - - 4,264 7 4,257
Chile 24 16 3,256 - - - 3,296 1,157 2,139
Turkey - 3,287 - - - - 3,287 - 3,287
Rest of
Europe 3,323 3,870 1,549 2,549 - - 11,291 4,071 7,220
Rest of
World 1,541 20,186 816 493 - - 23,036 895 22,141
Inter-segment
sales 1 48 423 37 3,971 (4,480) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
29,672 47,267 9,428 8,874 3,993 (4,480) 94,754 14,428 80,326
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
*See note 5.
4. Revenue (continued)
Primary geographical markets (continued)
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
Turkey - 6,452 6 - - - 6,458 - 6,458
Rest of Europe 5,421 4,554 1,566 2,549 - - 14,090 4,071 10,019
Rest of World 2,791 23,218 1,034 532 - - 27,575 936 26,639
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
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -----------
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 30 June 2020, 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 30 June 2020 to reflect
these changes.
Results from discontinued operations
Q3 2020 YTD Q3 YTD Q3
Q3 2021 Restated 2021 2020 Restated FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
-------------------------------- ---- --------------- -------------- -------------- --------------- ------------
Revenue - 3,648 - 14,428 14,827
Cost of sales - (2,964) - (11,081) (13,000)
--------------------------------------
Gross profit - 684 - 3,347 1,827
Research and development
costs - (385) - (2,462) (2,725)
Other operating costs - (2,121) - (7,158) (7,828)
-------------------------------------- -------------- -------------- -------------- --------------- ------------
Adjusted EBITDA - (1,822) - (6,273) (8,726)
Exceptional items - 4,713 - 5,121 5,086
-------------------------------------- -------------- -------------- -------------- --------------- ------------
EBITDA - 2,891 - (1,152) (3,640)
Depreciation and impairment - (951) - (1,697) (2,498)
Amortisation and impairment - (685) - (753) (2,789)
-------------------------------------- -------------- -------------- -------------- --------------- ------------
Operating profit/(loss) - 1,255 - (3,602) (8,927)
Finance costs - (24) - (82) (137)
-------------------------------------- -------------- -------------- -------------- --------------- ------------
Profit/(loss) before
taxation - 1,231 - (3,684) (9,064)
Tax on profit/(loss) - (27) - (110) (110)
-------------------------------------- -------------- -------------- -------------- --------------- ------------
Profit/(loss) from discontinued
operations - 1,204 - (3,794) (9,174)
-------------------------------------- -------------- -------------- -------------- --------------- ------------
Results from discontinued operations by segment
Advanced All other Total
Nutrition Health segments Corporate Discontinued
Q3 2021 Q3 2021 Q3 2021 Q3 2021 Q3 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
Q3 2020 Q3 2020
Q3 2020 Restated Q3 2020 Q3 2020 Restated
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
------------------------- ---- -------------- -------------- -------------- -------------- --------------
Revenue - 1,711 1,937 - 3,648
Adjusted EBITDA - (1,578) (234) (10) (1,822)
Operating profit/(loss) 12 (2,421) 3,841 (177) 1,255
------------------------------- -------------- -------------- -------------- -------------- --------------
5. Discontinued activities (continued)
Results from discontinued operations by segment (continued)
Advanced All other Total
Nutrition Health segments Corporate Discontinued
YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3
2021 2021 2021 2021 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
YTD Q3
YTD Q3 2020 YTD Q3 YTD Q3 YTD Q3
2020 Restated 2020 2020 2020 Restated
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
------------------------- ---- -------------- -------------- -------------- -------------- ---------------
Revenue 2 5,565 8,838 23 14,428
Adjusted EBITDA (118) (6,595) 591 (151) (6,273)
Operating (loss)/profit (369) (8,359) 5,532 (406) (3,602)
------------------------------- -------------- -------------- -------------- -------------- ---------------
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)/profit (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.
YTD Q3 YTD Q3
Q3 2021 Q3 2020 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
---------------------------- ---- -------------- -------------- -------------- ---------------- ------------
Acquisition related items - - - - 586
Exceptional restructuring
and disposal items 187 581 1,055 759 1,528
Total exceptional items 187 581 1,055 759 2,114
---------------------------------- -------------- -------------- -------------- ---------------- ------------
*See note 5.
Exceptional restructuring and disposal items in Q3 2021 include
GBP74,000 of staff costs relating to the Board's decision to make
significant changes to the Group's management team and bring in new
management, GBP22,000 of costs (including staff costs of GBP19,000)
relating to disposals completed in the prior year and a charge of
GBP91,000 relating to the sale of shares in an investment.
7. Taxation
YTD Q3 YTD Q3
Q3 2021 Q3 2020 2021 2020 FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
------------------------------ ---- -------------- -------------- -------------- -------------- ------------
Current tax expense
Analysis of charge in period
Current tax:
Current income tax expense
on profits for the period 1,037 328 2,667 2,634 3,141
Adjustment in respect of
prior periods - - - - 836
------------------------------------ -------------- -------------- -------------- -------------- ------------
Total current tax charge 1,037 328 2,667 2,634 3,977
Deferred tax expense
Origination and reversal
of temporary differences (909) (908) (2,460) (2,857) (3,490)
Deferred tax movements
in respect of prior periods - - (265) - (283)
------------------------------------ -------------- -------------- -------------- -------------- ------------
Total deferred tax credit (909) (908) (2,725) (2,857) (3,773)
Total tax charge/(credit)
on continuing operations 128 (580) (58) (223) 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.
Q3 2020 YTD Q3 YTD Q3
Q3 2021 Restated* 2021 2020 Restated* FY 2020
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------------- -------------- -------------- -------------- ---------------- ------------
Loss attributable to equity
holders of the parent (GBP000)
Continuing operations (2,972) (5,617) (6,790) (19,589) (23,749)
Discontinued operations - 1,204 - (3,794) (9,174)
Total (2,972) (4,413) (6,790) (23,383) (32,923)
--------------------------------- -------------- -------------- -------------- ---------------- ------------
Weighted average number of
shares in issue (thousands) 670,158 667,596 669,164 611,301 625,466
Basic loss per share (pence)
Continuing operations (0.44) (0.84) (1.01) (3.20) (3.80)
Discontinued operations - 0.18 - (0.63) (1.46)
Total (0.44) (0.66) (1.01) (3.83) (5.26)
--------------------------------- -------------- -------------- -------------- ---------------- ------------
* see note 5.
Diluted 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 30 June 2021, a total of 4,138,057 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 30 June 2021
the whole facility (USD 15m) was undrawn.
10. Share capital and additional paid-in share capital
Additional
paid-in
Share share
Number Capital capital
Allotted, called up and fully paid GBP000 GBP000
------------------------------------------- ------------ --------- -----------
Ordinary shares of 0.1 penny each
Balance at 30 September 2020 667,685,612 668 399,601
Shares issued as contingent consideration
for a previous acquisition 536,272 - 333
Exercise of share options 1,979,916 2 688
Balance at 30 June 2021 670,201,800 670 400,622
------------------------------------------- ------------ --------- -----------
During the period contingent consideration totalling USD 450,000
(GBP333,000) became payable following the acquisition of
aquaculture breeding programmes centred on shrimp from Centro de
Investigación de la Acuicultura de Colombia Ceniacua on 11 August
2016. At the Group's discretion, the contingent consideration was
paid in ordinary shares in the Group and the Group therefore issued
536,272 ordinary shares on 13 January 2021 to settle this
liability.
During the period ended 30 June 2021, the Group issued a total
of 1,979,916 shares of 0.1p each to certain employees of the Group
relating to share options, of which 391,601 were exercised at a
price of 0.1 pence, 1,497,933 were exercised at a price of 42.5
pence and 90,382 were exercised at a price of 58.5 pence.
11. Alternative profit measures and other metrics
Management has presented the performance measures Adjusted
EBITDA, Adjusted EBITDA before fair value movement in biological
assets, 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 and acquisition related expenditure
and is shown on the Income Statement.
Adjusted EBITDA before fair value movements in biological
assets, which is Adjusted EBITDA before the non-cash fair value
movements in biological assets arising from their revaluation in
line with International Accounting Standards.
Adjusted Operating Profit/Loss is operating loss before
exceptional items including 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 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.
11. Alternative profit measures and other metrics (continued)
Reconciliation of Adjusted Operating Profit to Operating
Loss/Profit
Continuing operations
Q3 2020 YTD Q3 YTD Q3
Q3 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
-------------------------------- ---- -------------- -------------- -------------- ---------------- ------------
Revenue 28,336 24,149 87,801 80,326 105,565
Cost of sales (13,024) (13,131) (41,646) (38,288) (50,603)
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
Gross profit 15,312 11,018 46,155 42,038 54,962
Research and development
costs (1,590) (1,248) (5,172) (5,975) (7,282)
Other operating costs (9,329) (7,455) (28,026) (26,427) (33,337)
Depreciation and impairment (1,555) (1,567) (5,050) (4,656) (6,640)
Amortisation of capitalised - - - - -
development costs
Share of (loss)/profit of
equity accounted investees
net of tax 35 (186) (606) 205 150
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
Adjusted operating profit 2,873 562 7,301 5,185 7,853
Exceptional - restructuring,
disposal and acquisition
related items (187) (581) (1,055) (759) (2,114)
Amortisation and impairment
of intangible assets excluding
development costs (3,931) (4,173) (12,109) (12,506) (16,613)
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
Operating loss (1,245) (4,192) (5,863) (8,080) (10,874)
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
* see note 5.
Reconciliation of Loss Before Taxation to Adjusted Profit/Loss
Before Tax
Continuing operations
Q3 2020 YTD Q3 YTD Q3
Q3 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
-------------------------------- ---- -------------- -------------- -------------- ---------------- ------------
Loss before taxation (2,681) (6,180) (5,934) (19,625) (22,571)
Exceptional - restructuring,
disposal and acquisition
related items 187 581 1,055 759 2,114
Amortisation and impairment
of intangible assets excluding
development costs 3,931 4,173 12,109 12,506 16,613
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
Adjusted profit/(loss) before
tax 1,437 (1,426) 7,230 (6,360) (3,844)
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
* See note 5.
Other Metrics
Q3 2020 YTD Q3 YTD Q3
Q3 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------- ---- -------------- -------------- -------------- ---------------- ------------
Total R&D Investment
Research and development
costs
- Continuing operations 1,590 1,248 5,172 5,975 7,282
- Discontinued operations - 385 - 2,462 2,725
--------------------------------- -------------- -------------- -------------- ---------------- ------------
1,590 1,633 5,172 8,437 10,007
Internal capitalised
development costs 1,281 954 3,462 2,959 4,583
-------------- ---------------- ------------
Total R&D investment 2,871 2,587 8,634 11,396 14,590
--------------------------------- -------------- -------------- -------------- ---------------- ------------
* see note 5.
11. Alternative profit measures and other metrics (continued)
Q3 2020 YTD Q3 YTD Q3
Q3 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------- ---- --------------- --------------- --------------- ----------------- -------------
Adjusted EBITDA excluding
fair value movement in
biological
assets
Adjusted EBITDA 4,428 2,129 12,351 9,841 14,493
Exclude fair value movement (368) 892 (2,327) (1,698) (3,253)
--------------- --------------- --------------- ----------------- -------------
Adjusted EBITDA excluding
fair value movement 4,060 3,021 10,024 8,143 11,240
--------------------------------- --------------- --------------- --------------- ----------------- -------------
* see note 5.
Liquidity
Following the refinancing in June 2019 a key financial covenant
is a minimum liquidity of GBP10m, defined as cash plus undrawn
facilities.
30 June 2021
All figures in GBP000's (unaudited)
--------------------------- -------------
Cash and cash equivalents 43,187
Undrawn bank facility 10,864
54,051
--------------------------- -------------
12. Net debt
Net debt is cash and cash equivalents less loans and borrowings
excluding balances held for sale.
30 June 30 June 30 September
2021 2020 2020
All figures in GBP000's (unaudited) (unaudited) (audited)
-------------------------------------- ------------ ------------ --------------
Cash and cash equivalents 43,187 54,492 71,605
Loans and borrowings (excluding
lease liabilities) - current (1,595) (3,279) (2,856)
Loans and borrowings (excluding
lease liabilities) - non-current (94,278) (96,473) (95,863)
Net debt excluding lease liabilities (52,686) (45,260) (27,114)
--------------------------------------- ------------ ------------ --------------
Lease liabilities - current (8,886) (1,530) (2,483)
Lease liabilities - non-current (14,551) (7,862) (7,956)
--------------------------------------- ------------ ------------ --------------
Net debt (76,123) (54,652) (37,553)
--------------------------------------- ------------ ------------ --------------
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