TIDMBMK
RNS Number : 9068Y
Benchmark Holdings PLC
18 May 2021
18 May 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")
Second Quarter and Interim results for the six months ended 31
March 2021
Good performance in the first half of the year and strategic
progress in all business areas
Benchmark (LSE: BMK), the aquaculture biotechnology company,
announces its unaudited interim results for the six months ended 31
March 2021 (the "Period"). The Company also announces its unaudited
results for the three months ended 31 March 2021 in compliance with
the terms of its senior secured bond.
-- Good H1 2021 performance with growth in revenues (+11% CER)
and Adjusted EBITDA (+13% CER) reflecting a strong performance in
Advanced Nutrition and solid trading in Genetics and Health
-- Q2 2021 results reflect seasonal fluctuations in Genetics and
a lower contribution from biological asset movements due to
normalised biomass growth
-- Significant progress towards commercialisation of BMK08 and
CleanTreat(R) with first customer contracts and ratification of MRL
("Maximum Residue Level") opinion achieved in Q2
-- Positive outlook and trading in line with market
expectations, with good visibility of revenues for the second half
of the year
GBPm H1 2020 CER** Q2 2020
H1 2021 Restated* H1 2021 Q2 2021 Restated*
-------------------------------------- ---------- ----------- --------- ---------- -----------
Revenue from continuing operations 59.5 56.2 62.3 30.4 31.5
-------------------------------------- ---------- ----------- --------- ---------- -----------
Adjusted
-------------------------------------- ---------- ----------- --------- ---------- -----------
Adjusted EBITDA(1) from continuing
operations 7.9 7.7 8.7 4.9 7.3
-------------------------------------- ---------- ----------- --------- ---------- -----------
Adjusted EBITDA excluding biological
asset movements 6.0 5.1 6.7 4.2 5.9
-------------------------------------- ---------- ----------- --------- ---------- -----------
Adjusted Operating profit(2) 4.4 4.6 5.2 3.2 5.7
-------------------------------------- ---------- ----------- --------- ---------- -----------
Statutory
-------------------------------------- ---------- ----------- --------- ---------- -----------
Operating (loss)/profit (4.6) (3.9) (1.4) 1.7
-------------------------------------- ---------- ----------- --------- ---------- -----------
Loss before tax from continuing
operations (3.3) (13.4) (2.7) (10.3)
-------------------------------------- ---------- ----------- --------- ---------- -----------
Loss for the Period - total incl.
discontinued operations (3.1) (18.8) (2.8) (13.4)
-------------------------------------- ---------- ----------- --------- ---------- -----------
Basic loss per share (p) (0.57) (3.25) (0.46) (2.18)
-------------------------------------- ---------- ----------- --------- ---------- -----------
Net debt(3) 56.5 55.8 56.5 55.8
-------------------------------------- ---------- ----------- --------- ---------- -----------
Net debt excluding lease liabilities 42.5 46.4 42.5 46.4
-------------------------------------- ---------- ----------- --------- ---------- -----------
* H1 2020 and Q2 2020 numbers have been restated to reflect
changes to the ongoing continuing business since the previous
reporting date (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 and discontinued operations)
GBPm H1 2020 CER** Q2 2020 CER**
H1 Restated* H1 2021 Q2 Restated* Q2 2021
2021 2021
Revenue
------- ---------- -------- ------- ---------- --------
Advanced Nutrition 35.0 31.3 36.7 19.9 19.9 21.1
------- ---------- -------- ------- ---------- --------
Genetics 22.1 22.5 23.3 9.5 10.4 9.7
------- ---------- -------- ------- ---------- --------
Animal Health 2.3 2.5 2.3 1.0 1.4 1.0
------- ---------- -------- ------- ---------- --------
Adjusted EBITDA(1)
------- ---------- -------- ------- ---------- --------
Advanced Nutrition 6.2 3.4 6.6 5.2 3.7 5.6
------- ---------- -------- ------- ---------- --------
Genetics 6.0 8.6 6.4 2.1 5.2 2.1
------- ---------- -------- ------- ---------- --------
* Net of fair value movements in biological assets 4.0 6.0 4.4 1.4 3.8 1.5
------- ---------- -------- ------- ---------- --------
Animal Health (2.6) (2.7) (2.6) (1.4) (0.8) (1.4)
------- ---------- -------- ------- ---------- --------
* H1 2020 and Q2 2020 numbers have been restated to reflect
changes to the ongoing continuing business since the previous
reporting date (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.
-- Advanced Nutrition
o H1 2021: revenue 12% up (+17% CER) reflecting the success of
improved commercial effort and improvement in certain shrimp
markets
o H1 2021: Adjusted EBITDA 82% up (+93% CER) as a result of
revenue growth and reduced operating costs
o Q2 2021: revenue in line with prior year (+7% CER) and
Adjusted EBITDA 41% up (+51% CER)
-- Genetics
o H1 2021: revenue marginally below prior year but ahead on a
constant currency basis (+3% CER) with higher salmon egg sales
(+5%) offset by lower revenue from harvested fish and royalties;
drop in Adjusted EBITDA against prior year reflects lower
contribution from fair value movements in biological assets due to
normalised biomass growth
o Q2 2021: revenue down due to seasonal fluctuations affecting
the timing of egg deliveries against prior year and lower royalty
income. Adjusted EBITDA reflects lower sales and lower contribution
from fair value movements in biological assets
o Good visibility of revenues for H2 2021
-- Animal Health
o H1 2021: revenue and Adjusted EBITDA in line with prior
year
o Q2 2021: lower revenue and Adjusted EBITDA reflect normalised
sales against the same period in the prior year which benefitted
from customer stockpiling due to Covid-19 uncertainty
o Significant progress towards commercialisation of new sea lice
treatment BMK08 and CleanTreat â - first customer agreements signed
and ratification of MRL opinion achieved in Q2 2021
Cash generation; liquidity and net debt
-- H1 2021 operating cash outflow of GBP1.5m including GBP7.2m
from increase in working capital in line with expectations; net
cash outflow of GBP17.3m includes GBP9.1m outflow from investing
activities in the period and a GBP6.8m outflow from financing
activities
-- Liquidity (defined as cash and undrawn facility) as at 14 May
2021 was c.GBP62.5m (30 September 2020: GBP83.2m) against a
liquidity covenant of GBP10m
-- Net debt at the half year end was GBP56.5m (30 September
2020: GBP37.6m), including lease obligations of GBP14.0m (30
September 2020: GBP10.4m)
Good strategic progress
-- Significant progress towards commercialisation of new sea
lice treatment BMK08 and CleanTreat â - first customer agreements
signed and EU ratification of MRL opinion achieved in Q2
-- Land based salmon farming - new customer wins with selected
clients building a leading position in genetics
-- Construction of new incubation centre in Iceland to increase
genetics capacity progressing as planned
-- SPR shrimp - Expansion of breeder capacity in Fellsmere
progressing as planned, test market ongoing and construction of
multiplication centre in Thailand advancing after delays caused by
Covid-19
-- "One Benchmark"- further actions undertaken to integrate the
Group and streamline the organisation including co-location of
Genetics and Health activities in Norway and Chile
-- ESG (Environmental Social and Governance) continues to be an
important focus through the positive impact of our products and
solutions on the sustainability of aquaculture, and through our
commitment as a responsible operator to reduce greenhouse gas
emissions and improve the sustainability of our supply chain
Current trading and outlook
-- Current trading in line with management expectations with
good visibility of revenues for the second half of the year
-- Progress towards commercialisation of BMK08 & CleanTreat
â , subject to marketing authorisation in Norway
Trond Williksen, CEO, commented:
" Benchmark has performed well in the first half and has made
good strategic progress across our three business areas. This
reflects our successful restructuring and the new focus and
discipline on delivering on our strategic priorities to create
profitable growth.
"Our financial discipline including cost containment and strict
cash management enables us to invest selectively in our core
business, strengthen our position in our markets and deliver on the
growth opportunities ahead.
"As a leading aquaculture biotechnology company focused on
delivering sustainable solutions, we are well positioned to make a
positive impact on our industry and create value for all our
stakeholders."
Details of analyst / investor call today
There will be a call at 9:30am 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 benchmark@mhpc.com
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 are a leading aquaculture biotechnology company developing
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 with specialist genetic traits, shrimp
broodstock, tilapia fry, technology enhanced live feed (Artemia),
specialist diets, probiotics and sea lice treatments. Find out more
at www.benchmarkplc.com
Management Report
Benchmark performed well in the first half of the year with
revenue from continuing operations increasing by 6% to GBP59.5m
(11% in constant currency, i.e., retranslating current period
results using last year's foreign exchange rates), and Adjusted
EBITDA from continuing operations up 3% to GBP7.9m (+13% in
constant currency). Excluding biological asset movements, Adjusted
EBITDA increased by 17% (31% in constant currency).
Notably, Advanced Nutrition had a strong performance in Q2 2021
and H1 2021, showing the benefits of our enhanced commercial effort
and focus over the past 12 months, as well as improvement in
certain shrimp markets with lockdown easing. From the outset of the
Covid-19 pandemic we launched new digital means to communicate with
our customers, including webinars and technical briefings which
have proven effective and will continue. These initiatives,
together with our commercial focus and operational continuity in
the face of logistical challenges, have enabled us to maintain and
strengthen our position in the market. We intend to build on this
momentum to take advantage of the market recovery as we emerge from
the pandemic.
Our Genetics business area continues to perform well and make
good strategic progress. While Q2 results show a drop against last
year, this is the result of expected fluctuations in the order
profile of salmon eggs in Q2 and a lower contribution from the
movement in fair value of biological assets due to normalised
biomass growth. We have good revenue visibility for the remainder
of the year. During the period we continued to win new contracts
with selected clients in the emerging land-based salmon sector,
establishing a leading position in that market.
Following the restructuring conducted last year, results in
Health derive primarily from sales of Salmosan and the investment
in the launch of BMK08 and CleanTreat â . Salmosan revenues in the
first half were below H1 2020 which had benefitted from stockpiling
in certain high margin markets driven by the uncertainty of
Covid-19. In this context, Salmosan sales were normalised and in
line with management expectations.
We maintain our focus on cost containment, cash management and
disciplined investment. Operating expenses in H1 2021 of GBP18.7m
were 2% below the prior year and R&D expenses of GBP3.6m were
23% down. Total R&D investment was GBP5.8m (H1 2020:
GBP6.7m).
Our cash position at the end of the period of GBP53.6m reflects
a net cash outflow of GBP17.3m. Cash outflow from operating
activities in H1 2021 of GBP1.5m includes a GBP7.2m increase in
working capital to support growth and GBP2m tax payments. This
means our core established business is generating cash to invest in
organic growth.
We have a disciplined investment programme to support our new
growth vectors including BMK08 and CleanTreat â , the expansion of
our incubation capacity in Iceland and the roll-out of SPR shrimp
in Genetics. In addition, we are making investments to upgrade some
of our facilities which have been underinvested in recent years,
including installing new fire safety equipment in our main
production facility in Thailand. Under our new disciplined
approach, investments are made supported by a solid assessment of
commercial prospects and return on investment. During the period we
invested GBP9.1m including GBP6.6m in PPE capex and GBP2.2m in
capitalised R&D.
Net debt at the half year was GBP56.5m (FY 2020: GBP37.6m; H1
2020: GBP55.8m), including finance lease liabilities of GBP14.0m
under IFRS 16 (FY 2020: GBP10.4m; H1 2020: GBP9.4m).
The Group's operating loss was GBP4.6m (H1 2020: loss of
GBP3.9m) after depreciation and amortisation during the period of
GBP11.7m (H1 2020: GBP11.4m). Loss before taxation was GBP3.3m (H1
2020: GBP13.4m) after a significant reduction in net finance costs;
net finance income in H1 2021 was GBP1.4m (H1 2020: GBP9.6m cost)
with the main difference being a credit of GBP2.4m in the fair
value of financial derivatives (H1 2020: GBP3.7m charge) and forex
gains of GBP3.3m (H1 2020: GBP1.8m loss). The loss for the period
was GBP3.1m (H1 2020: GBP18.8m). Loss per share was 0.57p (H1 2020:
3.25p).
Q2 2021 Commentary
The Group reported revenue of GBP30.4m, 3% below prior year of
GBP31.5m, but 2% higher on a constant currency basis (GBP32.0m
CER). This was driven by revenue growth in Advanced Nutrition (+7%
CER) offset by a drop in Genetics and Health in the quarter. As
previously explained the drop in Genetics is the result of seasonal
fluctuations which drove the timing of delivery of salmon eggs into
H2 2021, whilst Health revenues were below last year's strong
result.
Adjusted EBITDA of GBP4.9m (GBP5.3m CER) was lower than the
prior year (Q2 2020: GBP7.3m) reflecting a strong performance in
Advanced Nutrition offset by a lower contribution from Genetics and
Health. This was partially driven by lower sales and a lower
contribution from biological assets in Genetics and increased
expenditure in Health related to the preparations for the
commercial launch of BMK08 and CleanTreat â .
Operating costs including R&D expenses of GBP11.2m were up
3% on the prior year (Q2 2020: GBP10.9m).
Net finance costs for the quarter of GBP1.4m were GBP10.5m lower
than the same quarter last year (Q2 2020: GBP11.9m). The main
reasons for the significant reduction were smaller movements in
fair value of financial derivatives (Q2 2021: GBP0.1m credit; Q2
2020: GBP4.6m charge) and forex gains in the period of GBP0.7m
versus forex losses of GBP5.0m in the comparative quarter.
Progress on strategic priorities
At the beginning of the year we established five strategic
priorities for the Group. These form part of a Group-wide strategic
priority framework which allows us to prioritise, allocate
resources and manage performance. Delivery against strategic
priorities in the first half of the year has been good with
particular progress towards the delivery of our top priority - the
launch of BMK08 and CleanTreat â .
-- Launch of BMK08 and CleanTreat â - significant progress with
signing of first customer agreements and ratification under
European Law of the MRL (Maximum Residue Level), an important food
safety standard
-- Launch of Specific Pathogen Resistant shrimp - expansion of
production capacity in Fellsmere, US progressing to plan; ongoing
test market in Asia; progress towards completion of multiplication
centre in Thailand after delays caused by Covid-19
-- Maintain leadership in hatchery by regaining Artemia position
- +18.3% Artemia revenues in H1 2021 driven by targeted marketing
and technical support activities, enhanced commercial effort which
has been upskilled, and adjustment of pricing strategy
-- Implement simplified structure toward further integration as
"One Benchmark" - organisation streamlining including co-location
of Genetics and Health activities in Norway and Chile
-- Align culture, values and people processes towards delivery
of strategy - development of new company values to drive change in
culture from R&D centric to commercially focused, and
implementation of new remuneration policy aligning incentives to
delivery of targets across the Group
Covid-19
Many of the countries in which we operate continue to be
affected by the Covid-19 pandemic. We continue to operate remotely
where possible and have rigorous protocols in place to safeguard
our employees. Mindful of the overall wellbeing of our people,
during H1 2021 we delivered a wellbeing programme to support our
people and trained additional mental health first aiders. Our teams
around the world have shown great commitment and dedication which
have allowed us to maintain operational continuity and service for
our customers and to continue to make progress on our strategic
priorities. We recognise each individual contribution and extend
our gratitude on behalf of the Board.
Outlook
The salmon market is expected to remain stable with salmon
prices having recovered in recent months. There has been some
improvement in certain shrimp markets and this is expected to
continue through the remainder of the year as restrictions ease in
many territories, although a high level of uncertainty remains as
currently seen in India. The sea bass and bream markets have also
shown some recovery and are expected to remain stable for the rest
of the year.
We have had a positive start to Q3 2021 to date and have good
visibility of revenues for H2 2021 which, together with our ongoing
cost and cash management discipline, supports a positive outlook
for the year. We therefore expect to deliver results in line with
management expectations for the full year.
Longer term our fundamentals are strong and our opportunities
are significant. Aquaculture is a growth industry supported by
strong megatrends. Like in most industries growth creates
sustainability challenges and the focus on these challenges is
growing as the industry expands. The answer to sustainability lies
in innovation - bringing forward new sustainable solutions. As a
focused aquaculture biotechnology company and proactive industry
leader, Benchmark is well positioned to play an important role,
helping to improve sustainability across the aquaculture value
chain from genetics to grow-out and the quality of the end
product.
Divisional Commentary
Advanced Nutrition
Advanced Nutrition reported significant growth in H1 2021 with
revenues of GBP35.0m, 12% ahead of the prior year (H1 2020:
GBP31.3m) and Q2 2021 revenues of GBP19.9m in line with the prior
year (Q2 2020: GBP19.9m) Q2 2021 but up in constant currency (+7%
CER).
The strong H1 2021 performance reflects the initial benefits of
our enhanced commercial effort and some improvement in certain
shrimp markets. By product area, revenues from Artemia in H1 2021
were 18% higher than the prior year mainly driven by India, Vietnam
and Turkey. Diet sales were up 26% driven by India and Indonesia
while sales from Health products were down 11%.
Adjusted EBITDA in H1 was GBP6.2m (H1 2020: GBP3.4m) and
Adjusted EBITDA in Q2 was GBP5.2m (Q2 2020: GBP3.7m) reflecting
increased sales and successful cost containment.
Genetics
Genetics revenues in H1 2021 were GBP22.1m, broadly in line with
the prior year (H1 2020: GBP22.5m) and GBP9.5m in Q2 2021, 8% below
the same period in the prior year (Q2 2020: GBP10.4m). By source of
income, egg sales in H1 2021 were higher than the prior year, but
these were offset by lower revenue from harvested fish due to lower
salmon prices in the period and lower royalty income. Lower
revenues in Q2 2021 were driven by lower egg sales due to expected
fluctuations in the order profile against prior year and lower
royalty income.
The lower Adjusted EBITDA in H1 2021 of GBP6.0m against prior
year (H1 2020: GBP8.6m) reflect a smaller contribution from fair
value movements of biological assets due to normalised biomass
growth and lower margin from a different sales mix. Q2 2021
Adjusted EBITDA of GBP2.1m (Q2 2020: GBP5.2m) reflects lower sales
due to normal seasonal fluctuations and lower contribution from
biological assets as above.
R&D investment (expensed and capitalised) in the division
was in line with the prior year at GBP3.5m (H1 2020: GBP3.5m) as
investment continues in our breeding programmes in Chile and SPR
shrimp.
Health
Health revenues in H1 2021 of GBP2.3m were below the prior year
(H1 2020: GBP2.5m) which benefitted from customer stockpiling of
Salmosan due to the uncertainty caused by Covid-19. Adjusted EBITDA
was in line with the prior year with a loss of GBP2.6m (H2 2020:
GBP2.7m). Q2 2021 results show a similar trend in revenues and the
impact of investment associated with the launch of CleanTreat(R)
and BMK08.
Benchmark Holdings plc
Consolidated Income Statement for the period ended 31 March
2021
Q2 2020 YTD Q2 YTD Q2
Q2 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's Notes (unaudited) (unaudited) (unaudited) (unaudited) (audited)
------------------------- ------ -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Revenue 4 30,435 31,486 59,465 56,177 105,565
Cost of sales (14,263) (13,405) (28,622) (25,157) (50,603)
------------------------- ------
Gross profit 16,172 18,081 30,843 31,020 54,962
Research and development
costs (1,837) (1,755) (3,582) (4,727) (7,282)
Other operating costs (9,411) (9,194) (18,696) (18,972) (33,337)
Share of (loss)/profit
of equity-accounted
investees,
net of tax (30) 180 (641) 391 150
------------------------- ------ -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Adjusted EBITDA(2) 4,894 7,312 7,924 7,712 14,493
Exceptional -
restructuring,
disposal and
acquisition
related items 6 (275) (44) (868) (178) (2,114)
------------------------- ------ -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
EBITDA(1) 4,619 7,268 7,056 7,534 12,379
Depreciation and
impairment (1,723) (1,635) (3,494) (3,089) (6,640)
Amortisation and
impairment (4,260) (3,977) (8,178) (8,333) (16,613)
------------------------- ------ -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Operating (loss)/profit (1,364) 1,656 (4,616) (3,888) (10,874)
Finance cost (2,466) (11,918) (4,395) (9,636) (12,779)
Finance income 1,092 3 5,758 79 1,082
------------------------- ------ -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Loss before taxation (2,738) (10,259) (3,253) (13,445) (22,571)
Tax on loss 7 (104) (958) 186 (357) (204)
------------------------- ------ -------------------------- --------------------------
Loss from continuing
operations (2,842) (11,217) (3,067) (13,802) (22,775)
------------------------- ------ -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Discontinued operations
Loss from discontinued
operations, net of tax 5 - (2,140) - (4,998) (9,174)
------------------------- ------ -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
(2,842) (13,357) (3,067) (18,800) (31,949)
------------------------- ------ -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Loss for the year
attributable
to:
- Owners of the parent (3,101) (13,253) (3,818) (18,970) (32,923)
- Non-controlling
interest 259 (104) 751 170 974
------------------------- ------ -------------------------- --------------------------
(2,842) (13,357) (3,067) (18,800) (31,949)
------------------------- ------ -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Earnings per share
Basic loss per share
(pence) 8 (0.46) (2.18) (0.57) (3.25) (5.26)
Diluted loss per share
(pence) 8 (0.46) (2.18) (0.57) (3.25) (5.26)
Earnings per share -
continuing
operations
Basic loss per share
(pence) 8 (0.46) (1.83) (0.57) (2.40) (3.80)
Diluted loss per share
(pence) 8 (0.46) (1.83) (0.57) (2.40) (3.80)
All figures in GBP000's
------------------------- ------ -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Adjusted EBITDA from
continuing
operations 4,894 7,312 7,924 7,712 14,493
Adjusted EBITDA from
discontinued
operations 5 - (2,462) - (4,451) (8,726)
------------------------- ------ -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
Total Adjusted EBITDA 4,894 4,850 7,924 3,261 5,767
------------------------- ------ -------------------------- -------------------------- -------------------------- -------------------------- --------------------------
1 EBITDA - Earnings/loss before interest, tax, depreciation,
amortisation and impairment
2 Adjusted EBITDA - EBITDA before exceptional and acquisition
related items
* Q2 2020 and YTD Q2 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 March 2021
Q2 2020 YTD Q2 YTD Q2
Q2 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
------------------------------ ---- -------------- -------------- -------------- ---------------- ------------
Loss for the period (2,842) (13,357) (3,067) (18,800) (31,949)
Other comprehensive income
Items that are or may be
reclassified subsequently
to profit or loss
Foreign exchange translation
differences (4,955) 6,210 (13,669) (17,324) (20,327)
Cash flow hedges - changes
in fair value (77) (8,226) 2,821 (9,886) (5,932)
Cash flow hedges - reclassified
to profit or loss 132 (87) 288 (162) (153)
Total comprehensive income
for the period (7,742) (15,460) (13,627) (46,172) (58,361)
------------------------------------ -------------- -------------- -------------- ---------------- ------------
Total comprehensive income
for the period attributable
to:
- Owners of the parent (8,033) (16,137) (14,657) (45,422) (58,532)
- Non-controlling interest 291 677 1,030 (750) 171
------------------------------------ ------------
(7,742) (15,460) (13,627) (46,172) (58,361)
----------------------------------- -------------- -------------- -------------- ---------------- ------------
Total comprehensive income
for the period attributable
to owners of the parent:
- Continuing operations (8,033) (14,431) (14,657) (40,964) (50,604)
- Discontinued operations - (1,706) - (4,458) (7,928)
------------------------------------
(8,033) (16,137) (14,657) (45,422) (58,532)
----------------------------------- -------------- -------------- -------------- ---------------- ------------
* Q2 2020 and YTD Q2 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 as at 31 March 2021
31 March 31 March 30 September
2021 2020 2020
All figures in GBP000's Notes (unaudited) (unaudited) (audited)
---------------------------------- ------ ------------ ------------ --------------
Assets
Property, plant and equipment 70,160 81,420 65,601
Right-of-use assets 14,102 8,968 10,347
Intangible assets 230,739 259,552 247,003
Equity-accounted investees 3,271 3,742 3,690
Other investments 15 22 23
Biological and agricultural
assets 15,293 7,485 16,621
Non-current assets 333,580 361,189 343,285
---------------------------------- ------ ------------ ------------ --------------
Inventories 19,469 22,369 18,926
Biological and agricultural
assets 21,111 20,746 15,848
Trade and other receivables 31,008 34,559 39,371
Cash and cash equivalents 53,630 51,563 71,605
---------------------------------- ------ ------------ ------------ --------------
125,218 129,237 145,750
Assets held for sale - 17,258 -
Current assets 125,218 146,495 145,750
---------------------------------- ------ ------------ ------------ --------------
Total assets 458,798 507,684 489,035
---------------------------------- ------ ------------ ------------ --------------
Liabilities
Trade and other payables (29,960) (39,379) (45,692)
Loans and borrowings 9 (7,279) (3,786) (5,339)
Corporation tax liability (3,971) (3,430) (4,344)
Provisions - (386) -
---------------------------------- ------ ------------ ------------ --------------
(41,210) (46,981) (55,375)
Liabilities directly associated - (13,432) -
with the assets held for sale
------------
Current liabilities (41,210) (60,413) (55,375)
---------------------------------- ------ ------------ ------------ --------------
Loans and borrowings 9 (102,867) (103,535) (103,819)
Other payables (1,787) (1,851) (1,754)
Deferred tax (29,442) (35,303) (32,647)
Non-current liabilities (134,096) (140,689) (138,220)
---------------------------------- ------ ------------ ------------ --------------
Total liabilities (175,306) (201,102) (193,595)
---------------------------------- ------ ------------ ------------ --------------
Net assets 283,492 306,582 295,440
---------------------------------- ------ ------------ ------------ --------------
Issued capital and reserves
attributable to owners of the
parent
Share capital 10 670 667 668
Additional paid-in share capital 10 400,574 399,601 399,601
Capital redemption reserve 5 5 5
Retained earnings (145,282) (129,263) (142,170)
Hedging reserve (6,543) (13,614) (9,651)
Foreign exchange reserve 26,729 43,798 40,678
Equity attributable to owners
of the parent 276,153 301,194 289,131
Non-controlling interest 7,339 5,388 6,309
---------------------------------- ------
Total equity and reserves 283,492 306,582 295,440
---------------------------------- ------ ------------ ------------ --------------
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
31 March 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 - - - - (3,816) (3,816) 751 (3,065)
Other
comprehensive
income - - (13,949) 3,108 - (10,841) 279 (10,562)
Total
comprehensive
income
for the
period - - (13,949) 3,108 (3,816) (14,657) 1,030 (13,627)
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Contributions
by and
distributions
to owners
Share issue 2 973 - - - 975 - 975
Share-based
payment - - - - 704 704 - 704
Total
contributions
by
and
distributions
to
owners 2 973 - - 704 1,679 - 1,679
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Total
transactions
with
owners of the
Company 2 973 - - 704 1,679 - 1,679
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
As at 31 March
2021
(unaudited) 670 400,574 26,734 (6,543) (145,282) 276,153 7,339 283,492
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
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 - - - - (18,970) (18,970) 170 (18,800)
Other
comprehensive
income - - (16,404) (10,048) - (26,452) (920) (27,372)
Total
comprehensive
income
for the
period - - (16,404) (10,048) (18,970) (45,422) (750) (46,172)
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Contributions
by and
distributions
to owners
Share issue 108 40,245 - - - 40,353 - 40,353
Share issue
costs
recognised
through
equity - 1,312 - - - 1,312 - 1,312
Share-based
payment - - - - 623 623 - 623
Total
contributions
by
and
distributions
to
owners 108 41,557 - - 623 42,288 - 42,288
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Total
transactions
with
owners of the
Company 108 41,557 - - 623 42,288 - 42,288
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
As at 31 March
2020
(unaudited) 667 399,601 43,803 (13,614) (129,263) 301,194 5,388 306,582
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
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
March 2021
YTD Q2
2021 YTD Q2 2020 FY 2020
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------------------------------------- -------------- -------------- ------------
Cash flows from operating activities
Loss for the year (3,067) (18,800) (31,949)
Adjustments for:
Depreciation and impairment of property,
plant and equipment 3,882 3,835 9,138
Amortisation and impairment of intangible
fixed assets 7,790 8,401 19,402
Gain on sale of property, plant
and equipment - (1,349) (1,140)
Gain on sale of subsidiaries - - (14,120)
Gain on sale of other investments (91) - -
Finance income (43) (79) (111)
Finance costs 1,976 4,180 9,695
Other adjustments for non-cash items - - 200
Share of loss/(profit) of equity-accounted
investees, net of tax 641 (391) (150)
Foreign exchange (gains)/losses (3,809) 5,516 (132)
Share based payment expense 704 623 1,669
Tax (credit)/charge (186) 440 314
-------------------------------------------- -------------- -------------- ------------
7,797 2,376 (7,184)
Decrease in trade and other receivables 8,037 8,338 4,202
(Increase)/decrease in inventories (1,424) (657) 3,741
Increase in biological and agricultural
assets (3,517) (3,304) (7,474)
(Decrease)/increase in trade and
other payables (10,327) (7,240) 5,006
Decrease in provisions (22) (18) (260)
-------------------------------------------- -------------- -------------- ------------
544 (505) (1,969)
Income taxes paid (2,025) (1,307) (2,087)
-------------------------------------------- -------------- -------------- ------------
Net cash flows used in operating
activities (1,481) (1,812) (4,056)
-------------------------------------------- -------------- -------------- ------------
Investing activities
Proceeds from sale of subsidiaries,
net of cash disposed of - - 17,487
Purchase of investments (247) (228) (522)
Proceeds from disposal of investments 99 6,932 6,932
Purchases of property, plant and
equipment (6,632) (4,005) (5,851)
Proceeds from sales of intangible
assets - 59 261
Purchase of intangibles (2,337) (2,116) (5,563)
Purchase of held for sale assets - - (402)
Proceeds from sale of fixed assets 19 117 16,147
Proceeds from sales of other long-term
assets - 1,347 1,776
Interest received 42 79 111
-------------------------------------------- -------------- -------------- ------------
Net cash flows used in investing
activities (9,056) 2,185 30,376
-------------------------------------------- -------------- -------------- ------------
Financing activities
Proceeds of share issues 641 42,977 42,978
Share-issue costs recognised through
equity - (1,312) (1,312)
Proceeds from bank or other borrowings - 8,083 8,387
Repayment of bank or other borrowings (2,405) (9,265) (10,141)
Interest and finance charges paid (3,892) (3,444) (7,659)
Repayments of lease liabilities (1,114) (1,224) (2,120)
-------------------------------------------- -------------- -------------- ------------
Net cash inflow from financing activities (6,770) 35,815 30,133
-------------------------------------------- -------------- -------------- ------------
Net (decrease)/increase in cash
and cash equivalents (17,307) 36,188 56,453
Cash and cash equivalents at beginning
of year 71,605 16,051 16,051
Effect of movements in exchange
rate (668) (676) (899)
-------------------------------------------- -------------- -------------- ------------
Cash and cash equivalents at end
of year 53,630 51,563 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 31 March 2021
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 six months ended 31 March
2021 represents that 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 31 March 2021 the Group had net assets of GBP283.5m (30
September 2020: GBP295.4m), including cash of GBP53.6m (30
September 2020: GBP71.6m) as set out in the consolidated balance
sheet. The Group made a loss for the period of GBP2.8m (30
September 2020: GBP31.9m).
As noted in the Management Report, the impact of the Covid-19
pandemic has continued to affect parts of the Group's businesses to
varying degrees. The ultimate lasting 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 which have experienced modest impact from
Covid-19. The Directors monitor available market analysis as this
situation has continued into 2021. Whilst the outlook for the
shrimp market retains some uncertainty in certain territories still
suffering from the ongoing pandemic, 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. Year to date performance
has been 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. 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 have noted significant and expected
progress towards the commercialisation of BMK08 and CleanTreat.
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, 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 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.
1. 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.
2. 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 Q2 YTD Q2 FY
Q2 2021 Q2 2020 2021 2020 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------- --------------- --------------- --------------- --------------- -------------
Genetics 9,514 10,384 22,130 22,504 41,504
Advanced Nutrition 19,895 19,899 35,027 31,295 59,362
Health 1,044 3,302 2,337 6,722 10,799
All other segments - 3,548 - 6,921 9,257
Corporate 1,199 1,246 2,404 2,784 4,939
Inter-segment sales (1,217) (1,476) (2,433) (3,269) (5,469)
Total 30,435 36,903 59,465 66,957 120,392
--------------------------- --------------- --------------- --------------- --------------- -------------
Segmental Adjusted EBITDA
YTD Q2 YTD Q2 FY
Q2 2021 Q2 2020 2021 2020 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
---------------------------- --------------- --------------- --------------- --------------- -------------
Genetics 2,108 5,154 5,987 8,609 14,442
Advanced Nutrition 5,247 3,705 6,240 3,299 6,266
Health (1,446) (3,666) (2,563) (7,688) (12,886)
All other segments - 244 - 439 244
Corporate (1,015) (587) (1,740) (1,398) (2,299)
Total 4,894 4,850 7,924 3,261 5,767
---------------------------- --------------- --------------- --------------- --------------- -------------
Reconciliations of segmental information to IFRS measures
Revenue
Q2 2020 YTD YTD Q2
Q2 2021 Restated* Q2 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------------- --------------- --------------- --------------- ----------------- -------------
Total revenue per segmental
information 30,435 36,903 59,465 66,957 120,392
Less: revenue from discontinued
operations - (5,417) - (10,780) (14,827)
---------------------------------
Consolidated revenue 30,435 31,486 59,465 56,177 105,565
--------------------------------- --------------- --------------- --------------- ----------------- -------------
Reconciliation of Reportable Segments Adjusted EBITDA to Loss
before taxation from continuing operations
----------------------------------------------------------------------------------------------------------------------
Q2 2020 YTD Q2 YTD Q2
Q2 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------------- --------------- --------------- --------------- ----------------- -------------
Total reportable segment
Adjusted EBITDA 5,909 5,193 9,664 4,220 7,822
Other Segment and Corporate
Adjusted EBITDA (1,015) (343) (1,740) (959) (2,055)
--------------------------------- --------------- --------------- --------------- ----------------- -------------
4,894 4,850 7,924 3,261 5,767
Less: Adjusted EBITDA
from discontinued operations - 2,462 - 4,451 8,726
--------------------------------- --------------- --------------- --------------- ----------------- -------------
Adjusted EBITDA from continuing
operations 4,894 7,312 7,924 7,712 14,493
Exceptional including
acquisition related items (275) (44) (868) (178) (2,114)
Depreciation and impairment (1,723) (1,635) (3,494) (3,089) (6,640)
Amortisation and impairment (4,260) (3,977) (8,178) (8,333) (16,613)
Net finance costs (1,374) (11,915) 1,363 (9,557) (11,697)
Loss before taxation from
continuing operations (2,738) (10,259) (3,253) (13,445) (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 March 2021 (unaudited)
---------------- ----------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
Sale of
goods 8,542 19,883 1,039 - - - 29,464 - 29,464
Provision
of services 966 - 5 - - - 971 - 971
Inter-segment
sales 6 12 - - 1,199 (1,217) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
9,514 19,895 1,044 - 1,199 (1,217) 30,435 - 30,435
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
3 months ended 31 March 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 9,011 19,875 1,612 57 - - 30,555 419 30,136
Provision
of services 1,317 - 1,545 3,481 5 - 6,348 4,998 1,350
Inter-segment
sales 56 24 145 10 1,241 (1,476) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
10,384 19,899 3,302 3,548 1,246 (1,476) 36,903 5,417 31,486
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
6 months ended 31 March 2021 (unaudited)
---------------- ----------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
Sale of
goods 20,031 35,010 2,317 - - - 57,358 - 57,358
Provision
of services 2,087 - 20 - - - 2,107 - 2,107
Inter-segment
sales 12 17 - - 2,404 (2,433) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
22,130 35,027 2,337 - 2,404 (2,433) 59,465 - 59,465
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
6 months ended 31 March 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 19,950 31,263 3,224 254 - - 54,691 1,039 53,652
Provision
of services 2,442 - 3,155 6,647 22 - 12,266 9,741 2,525
Inter-segment
sales 112 32 343 20 2,762 (3,269) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
22,504 31,295 6,722 6,921 2,784 (3,269) 66,957 10,780 56,177
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
*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 31 March 2021 (unaudited)
---------------- -----------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
Norway 4,553 191 272 - - - 5,016 - 5,016
UK 1,226 40 (220) - - - 1,046 - 1,046
Faroe Islands 1,563 5 - - - - 1,568 - 1,568
Ecuador - 1,041 - - - - 1,041 - 1,041
India - 3,041 - - - - 3,041 - 3,041
Greece 25 1,642 - - - - 1,667 - 1,667
Singapore - 2,409 - - - - 2,409 - 2,409
Chile 31 4 598 - - - 633 - 633
Turkey - 1,702 - - - - 1,702 - 1,702
Rest of
Europe 1,590 1,362 24 - - - 2,976 - 2,976
Rest of
World 520 8,446 370 - - - 9,336 - 9,336
Inter-segment
sales 6 12 - - 1,199 (1,217) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
9,514 19,895 1,044 - 1,199 (1,217) 30,435 - 30,435
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
3 months ended 31 March 2020 (unaudited)
---------------- ------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment Discontinued Continued
in GBP000's Genetics Nutrition Health segments Corporate sales Total Restated* Restated*
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
Norway 5,062 129 564 - - - 5,755 405 5,350
UK 2,015 35 559 2,348 5 - 4,962 2,745 2,217
Faroe Islands 1,406 1 9 - - - 1,416 - 1,416
Ecuador - 1,877 - - - - 1,877 - 1,877
India - 1,601 3 - - - 1,604 3 1,601
Greece 41 2,499 - - - - 2,540 - 2,540
Singapore - 1,186 7 - - - 1,193 7 1,186
Chile 10 16 983 - - - 1,009 410 599
Turkey - 1,650 - - - - 1,650 - 1,650
Rest of
Europe 1,224 1,608 474 1,041 - - 4,347 1,490 2,857
Rest of
World 570 9,273 558 149 - - 10,550 357 10,193
Inter-segment
sales 56 24 145 10 1,241 (1,476) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
10,384 19,899 3,302 3,548 1,246 (1,476) 36,903 5,417 31,486
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
*See note 5.
4. Revenue (continued)
Primary geographical markets (continued)
6 months ended 31 March 2021 (unaudited)
---------------- -----------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
Norway 12,263 257 435 - - - 12,955 - 12,955
UK 2,656 66 15 - - - 2,737 - 2,737
Faroe Islands 3,371 9 - - - - 3,380 - 3,380
Ecuador - 2,000 - - - - 2,000 - 2,000
India - 6,267 - - - - 6,267 - 6,267
Greece 25 3,472 - - - - 3,497 - 3,497
Singapore - 3,350 - - - - 3,350 - 3,350
Chile 37 4 1,435 - - - 1,476 - 1,476
Turkey - 3,445 - - - - 3,445 - 3,445
Rest of
Europe 2,750 2,800 26 - - - 5,576 - 5,576
Rest of
World 1,016 13,340 426 - - - 14,782 - 14,782
Inter-segment
sales 12 17 - - 2,404 (2,433) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
22,130 35,027 2,337 - 2,404 (2,433) 59,465 - 59,465
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
6 months ended 31 March 2020 (unaudited)
---------------- ------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment Discontinued Continued
in GBP000's Genetics Nutrition Health segments Corporate sales Total Restated* Restated*
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
Norway 10,876 241 1,107 - - - 12,224 829 11,395
UK 4,358 54 1,252 4,454 22 - 10,140 5,439 4,701
Faroe Islands 3,566 1 34 - - - 3,601 - 3,601
Ecuador - 3,862 - - - - 3,862 - 3,862
India - 2,557 3 - - - 2,560 3 2,557
Greece 41 3,994 - - - - 4,035 - 4,035
Singapore - 1,865 7 - - - 1,872 7 1,865
Chile 24 16 2,172 - - - 2,212 674 1,538
Turkey - 2,606 - - - - 2,606 - 2,606
Rest of
Europe 2,433 3,095 1,012 2,040 - - 8,580 3,028 5,552
Rest of
World 1,094 12,972 792 407 - - 15,265 800 14,465
Inter-segment
sales 112 32 343 20 2,762 (3,269) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
22,504 31,295 6,722 6,921 2,784 (3,269) 66,957 10,780 56,177
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------
*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 31 March 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 31 March 2020 to reflect
these changes.
Results from discontinued operations
Q2 2020 YTD Q2 YTD Q2
Q2 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
----------------------------- ---- --------------- -------------- -------------- ---------------- ------------
Revenue - 5,417 - 10,780 14,827
Cost of sales - (4,170) - (8,117) (13,000)
-----------------------------------
Gross profit - 1,247 - 2,663 1,827
Research and development
costs - (1,029) - (2,077) (2,725)
Other operating costs - (2,680) - (5,037) (7,828)
----------------------------------- -------------- -------------- -------------- ---------------- ------------
Adjusted EBITDA - (2,462) - (4,451) (8,726)
Exceptional items - 720 - 408 5,086
----------------------------------- -------------- -------------- -------------- ---------------- ------------
EBITDA - (1,742) - (4,043) (3,640)
Depreciation and impairment - (291) - (746) (2,498)
Amortisation and impairment - (35) - (68) (2,789)
----------------------------------- -------------- -------------- -------------- ---------------- ------------
Operating loss - (2,068) - (4,857) (8,927)
Finance costs - (19) - (58) (137)
----------------------------------- -------------- -------------- -------------- ---------------- ------------
Loss before taxation - (2,087) - (4,915) (9,064)
Tax on loss - (53) - (83) (110)
----------------------------------- -------------- -------------- -------------- ---------------- ------------
Loss from discontinued
operations - (2,140) - (4,998) (9,174)
----------------------------------- -------------- -------------- -------------- ---------------- ------------
Results from discontinued operations by segment
Advanced All other Total
Nutrition Health segments Corporate Discontinued
Q2 2021 Q2 2021 Q2 2021 Q2 2021 Q2 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
Q2 2020 Q2 2020 Q2 2020 Q2 2020 Q2 2020
All figures in Restated* Restated* Restated* Restated* Restated*
GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
----------------- ---- --------------- -------------- -------------- -------------- --------------
Revenue - 1,874 3,538 5 5,417
Adjusted EBITDA - (2,841) 436 (57) (2,462)
Operating loss - (3,342) 1,402 (128) (2,068)
----------------------- -------------- -------------- -------------- -------------- --------------
5. Discontinued activities (continued)
Results from discontinued operations by segment (continued)
Advanced All other Total
Nutrition Health segments Corporate Discontinued
YTD Q2 YTD Q2 YTD Q2 YTD Q2 YTD Q2
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 Q2 YTD Q2 YTD Q2 YTD Q2 YTD Q2
2020 2020 2020 2020 2020
All figures in Restated* Restated* Restated* Restated* Restated*
GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
----------------- ---- -------------- -------------- -------------- -------------- --------------
Revenue 2 3,854 6,901 23 10,780
Adjusted EBITDA (118) (5,017) 825 (141) (4,451)
Operating loss (381) (5,938) 1,691 (229) (4,857)
----------------------- -------------- -------------- -------------- -------------- --------------
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.
Q2 2020 YTD Q2 YTD Q2
Q2 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
---------------------------- ---- -------------- -------------- -------------- ---------------- ------------
Acquisition related items - - - - 586
Exceptional restructuring
and disposal items 275 44 868 178 1,528
Total exceptional items 275 44 868 178 2,114
---------------------------------- -------------- -------------- -------------- ---------------- ------------
*See note 5.
Exceptional restructuring and disposal items in Q2 2021 include
GBP53,000 (YTD Q2 2021: GBP297,000) of staff costs relating to the
Board's decision to make significant changes to the Group's
management team and bring in new management, GBP313,000 (YTD Q2
2021: GBP662,000) of costs (including staff costs of GBP120,000
(YTD Q2 2021: GBP238,000)) relating to disposals completed in the
prior year and a credit of GBP91,000 (YTD Q2 2021: GBP91,000)
relating to the sale of shares in an investment.
7. Taxation
Q2 2020 YTD Q2 YTD Q2
Q2 2021 Restated* 2021 2020 Restated* 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 875 1,443 1,631 2,306 3,141
Adjustment in respect of prior
periods - - - - 836
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
Total current tax charge 875 1,443 1,631 2,306 3,977
Deferred tax expense
Origination and reversal of
temporary differences (506) (485) (1,552) (1,949) (3,490)
Deferred tax movements in
respect of prior periods (265) - (265) - (283)
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
Total deferred tax credit (771) (485) (1,817) (1,949) (3,773)
Total tax charge/(credit)
on continuing operations 104 958 (186) 357 204
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
*See note 5.
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.
Q2 2020 YTD Q2 YTD Q2
Q2 2021 Restated* 2021 2020 Restated* FY 2020
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------------- -------------- -------------- -------------- ---------------- ------------
Loss attributable to equity
holders of the parent (GBP000)
Continuing operations (3,101) (11,113) (3,818) (13,972) (23,749)
Discontinued operations - (2,140) - (4,998) (9,174)
Total (3,101) (13,253) (3,818) (18,970) (32,923)
--------------------------------- -------------- -------------- -------------- ---------------- ------------
Weighted average number of
shares in issue (thousands) 669,425 607,993 668,667 583,308 625,466
Basic loss per share (pence)
Continuing operations (0.46) (1.83) (0.57) (2.40) (3.80)
Discontinued operations - (0.35) - (0.85) (1.46)
Total (0.46) (2.18) (0.57) (3.25) (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 31 March 2021, a total of 3,581,820 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 March 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 1,853,672 2 640
Balance at 31 March 2021 670,075,556 670 400,574
------------------------------------------- ------------ --------- -----------
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 31 March 2021, the Group issued a total
of 1,853,672 shares of 0.1p each to certain employees of the Group
relating to share options. Of which, 354,229 were exercised at a
price of 0.1 pence, 1,475,943 were exercised at a price of 42.5
pence and 23,500 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, 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
Q2 2020 YTD Q2 YTD Q2
Q2 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
-------------------------------- ---- -------------- -------------- -------------- ---------------- ------------
Revenue 30,435 31,486 59,465 56,177 105,565
Cost of sales (14,263) (13,405) (28,622) (25,157) (50,603)
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
Gross profit 16,172 18,081 30,843 31,020 54,962
Research and development
costs (1,837) (1,755) (3,582) (4,727) (7,282)
Other operating costs (9,411) (9,194) (18,696) (18,972) (33,337)
Depreciation and impairment (1,723) (1,635) (3,494) (3,089) (6,640)
Amortisation of capitalised - - - - -
development costs
Share of (loss)/profit
of equity accounted investees
net of tax (30) 180 (641) 391 150
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
Adjusted operating profit 3,171 5,677 4,430 4,623 7,853
Exceptional - restructuring
acquisition related items (275) (44) (868) (178) (2,114)
Amortisation and impairment
of intangible assets excluding
development costs (4,260) (3,977) (8,178) (8,333) (16,613)
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
Operating (loss)/profit (1,364) 1,656 (4,616) (3,888) (10,874)
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
* see note 5.
Reconciliation of Loss Before Taxation to Adjusted Profit/Loss
Before Tax
Continuing operations
Q2 2020 YTD Q2 YTD Q2
Q2 2021 Restated* 2021 2020 Restated* FY 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
-------------------------------- ---- -------------- -------------- -------------- ---------------- ------------
Loss before taxation (2,738) (10,259) (3,253) (13,445) (22,571)
Exceptional -
restructuring/acquisition
related items 275 44 868 178 2,114
Amortisation and impairment
of intangible assets
excluding development
costs 4,260 3,977 8,178 8,333 16,613
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
Adjusted profit/(loss)
before tax 1,797 (6,238) 5,793 (4,934) (3,844)
-------------------------------------- -------------- -------------- -------------- ---------------- ------------
* See note 5.
Other Metrics
Q2 2020 YTD Q2 YTD Q2
Q2 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 1,837 1,755 3,582 4,727 7,282
- Discontinued operations - 1,029 - 2,077 2,725
--------------------------------- -------------- -------------- -------------- ---------------- ------------
1,837 2,784 3,582 6,804 10,007
Internal capitalised
development costs 1,121 1,109 2,181 2,005 4,583
-------------- ---------------- ------------
Total R&D investment 2,958 3,893 5,763 8,809 14,590
--------------------------------- -------------- -------------- -------------- ---------------- ------------
* see note 5.
11. Alternative profit measures and other metrics (continued)
Q2 2020 YTD Q2 YTD Q2
Q2 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 4,894 7,312 7,924 7,712 14,493
Exclude fair value movement (682) (1,402) (1,957) (2,590) (3,253)
-------------- -------------- -------------- ---------------- ------------
Adjusted EBITDA excluding
fair value movement 4,212 5,910 5,967 5,122 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.
31 March 2021
All figures in GBP000's (unaudited)
--------------------------- --------------
Cash and cash equivalents 53,630
Undrawn bank facility 10,871
64,501
--------------------------- --------------
12. Net debt
Net debt is cash and cash equivalents less loans and borrowings
excluding balances held for sale.
31 March 31 March 30 September
2021 2020 2020
All figures in GBP000's (unaudited) (unaudited) (audited)
-------------------------------------- ------------ ------------ --------------
Cash and cash equivalents 53,630 51,563 71,605
Loans and borrowings (excluding
lease liabilities) - current (1,517) (2,256) (2,856)
Loans and borrowings (excluding
lease liabilities) - non-current (94,639) (95,673) (95,863)
Net debt excluding lease liabilities (42,526) (46,366) (27,114)
--------------------------------------- ------------ ------------ --------------
Lease liabilities - current (5,762) (1,530) (2,483)
Lease liabilities - non-current (8,228) (7,862) (7,956)
--------------------------------------- ------------ ------------ --------------
Net debt (56,516) (55,758) (37,553)
--------------------------------------- ------------ ------------ --------------
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