TIDMBMK
RNS Number : 8023T
Benchmark Holdings PLC
29 November 2021
29 November 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")
Q4 Results
(3 months ended 30 September 2021)
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 September 2021 (the
"period") . All Q4FY21 and Q4FY20 figures quoted in this
announcement are based on unaudited accounts.
This morning the Company published its full year audited results
for the 12 months ended 30 September 2020
which can be found on https://www.benchmarkplc.com/investors
Highlights - strong performance
-- Revenues GBP37.3m, 48% ahead of the prior year (+51% CER)
(continuing operations) with strong performance across all business
areas:
o Genetics - revenues 35% above Q4 2020 (+34% CER) driven by
higher sales of salmon eggs and harvest income
o Advanced Nutrition - revenues 41% above the prior year (+49%
CER) continuing its strong performance
o Health revenues - +207% Q4 2020 (+215% CER) benefitting from
first sales of Ectosan (â) Vet and CleanTreat (â)
-- Adjusted EBITDA of GBP7.1m, 51% ahead driven by higher sales
partially offset by higher costs and R&D expenses as activities
normalise post Covid-19
-- Cash of GBP40.2m and Liquidity of c GBP51.4m (cash and
available facility) as at 26 November 2021
GBPm Q4 FY21 Q4 FY20 % AER % CER(**) FY21 FY20
(full year)
Revenue from continuing
operations 37.3 25.2 48% 51% 125.1 105.6
-------- -------- ------ ---------- ------------- -------
Adjusted
-------- -------- ------ ---------- ------------- -------
Adjusted EBITDA(1) from
continuing operations 7.1 4.7 51% 55% 19.4 14.5
-------- -------- ------ ---------- ------------- -------
Adj. EBITDA excluding
biological asset movements 6.1 3.1 97% 98% 16.1 11.2
-------- -------- ------ ---------- ------------- -------
Adjusted Operating Profit(2) 3.5 2.7 30% 35% 10.8 7.9
-------- -------- ------ ---------- ------------- -------
Statutory
-------- -------- ------ ---------- ------------- -------
Operating profit/(loss) 0.5 (2.8) (5.4) (10.9)
-------- -------- ------ ---------- ------------- -------
Loss before tax from
continuing operations (3.2) (2.9) (9.2) (22.6)
-------- -------- ------ ---------- ------------- -------
Loss for the Period
- total incl. discontinued
operations (5.7) (8.8) (11.6) (31.9)
-------- -------- ------ ---------- ------------- -------
Basic loss per share
(p) (0.91) (1.43) (1.93) (5.26)
-------- -------- ------ ---------- ------------- -------
Net debt(3) (80.9) (37.6) (80.9) (37.6)
-------- -------- ------ ---------- ------------- -------
Net debt excluding lease
liabilities (56.9) (27.1) (56.9) (27.1)
-------- -------- ------ ---------- ------------- -------
** 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
Business Area Summary (Continuing operations)
GBPm Q4 FY21 Q4 FY20 % AER % CER(**) FY21 FY20
(full year)
Revenue
-------- -------- ------ ---------- ------------- ------
Advanced Nutrition 17.1 12.1 41% 49% 70.5 59.4
-------- -------- ------ ---------- ------------- ------
Genetics 15.9 11.8 35% 34% 46.8 41.5
-------- -------- ------ ---------- ------------- ------
Health 4.3 1.4 207% 215% 7.8 5.2
-------- -------- ------ ---------- ------------- ------
Adjusted EBITDA(1)
-------- -------- ------ ---------- ------------- ------
Advanced Nutrition 3.6 0.2 1700% 1781% 13.8 6.4
-------- -------- ------ ---------- ------------- ------
Genetics 3.3 4.6 -28% -33% 11.5 14.4
-------- -------- ------ ---------- ------------- ------
* Net of fair value movements in biological assets 2.3 3.0 -23% -33% 8.1 11.2
-------- -------- ------ ---------- ------------- ------
Health 1.1 0.2 450% 633% (2.7) (3.7)
-------- -------- ------ ---------- ------------- ------
** 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
-- First Ectosan (R) Vet and CleanTreat (R) sea lice treatments
delivered showing excellent efficacy
-- CleanTreat(R) received the highest level of recognition for
environmental protection and sustainability by the Aquaculture
Stewardship Council
-- Ectosan(R) Vet patent grant approved giving 20 year protection
-- First SPR shrimp stocked at new JV multiplication centre in Thailand
-- Post period end, entered long-term strategic cooperation with
Regal Springs, the world's No.1 Premium Tilapia company to support
its breeding programmes for premium natural grown Tilapia
-- Post period end Advanced Nutrition launched Natura pRo and
ExL, a new feed protocol to substitute rotifers (live feed)
Market environment - positive outlook
-- Recovery in global shrimp markets with potential to bounce back to pre-COVID-19 levels
-- Stable salmon markets; demand growth continues to exceed global supply
-- The seabass and seabream market have substantially recovered
Current trading and outlook
-- Trading in line with FY22 expectations
o Consistency in performance continuing in Genetics and Advanced
Nutrition
o Health starts benefitting from Ectosan(R) Vet and
CleanTreat(R) revenue stream
-- Market environment
o Salmon markets are solid with positive outlook for continuous
growth
o Global shrimp markets showing recovery
o Sea bass and sea bream markets recovered and stable
Enquiries
For further information, please contact:
Benchmark Holdings plc Tel: 0114 240 9939
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's mission is to enable aquaculture producers to
improve their sustainability and profitability.
We bring together biology and technology to develop innovative
products which improve yield, quality and animal health and welfare
for our customers. We do this by improving the genetic make-up,
health and nutrition of their stock - from broodstock and hatchery
through to nursery and grow out.
Benchmark has a broad portfolio of products and solutions,
including salmon eggs, live feed (artemia), diets and probiotics
and sea lice treatments. Find out more at www.benchmarkplc.com
Management Report
The Group continued its good performance in Q4 2021. Our three
business areas delivered strong results, with strong revenue growth
in Advanced Nutrition and Genetics and Health benefitting from
first sales of Ectosan (â) Vet and CleanTreat (â) .
Group revenues from continuing operations for the quarter at
GBP37.3m were 48% ahead of the prior year (+51% CER) reflecting
good performance across all business areas, adding to three
quarters of strong performance. The continuing good performance in
Q4 highlights the momentum achieved through the implementation of
our strategic priorities framework, culture change and renewed
commercial focus. Our performance continued to benefit from a
recovery in the shrimp markets and stable salmon and sea bass and
sea bream markets.
Operating costs in Q4 2021 were GBP10.2m, 48% above the prior
year. R&D expenses were GBP1.8m, 38% up reflecting a return to
normal activities and spend after a pause during the COVID-19
pandemic.
Adjusted EBITDA from continuing operations for the quarter was
GBP7.1m against GBP4.7m in Q4 2020 as a result of higher revenues
partially offset by an increase in operating costs. Loss before tax
for the quarter of GBP3.2m compared to the GBP2.9m for the same
period in FY20.
We continued to make good progress in our strategic priorities
achieving the highest level of recognition for environmental
protection and sustainability by the Aquaculture Stewardship
Council for our water purification system CleanTreat (â) , stocking
of the first shrimp in our JV multiplication centre in Thailand and
through continued innovation in Advanced Nutrition with the launch
of a new feed protocol to substitute rotifers (live feed).
Advanced Nutrition
Advanced Nutrition performed strongly in the quarter with
revenues of GBP17.1m up 41% and growth across all product areas -
Artemia, diets and health. Artemia sales grew by (+GBP1.5m), Diets
(+GBP2.6m) and Health (+GBP0.7m). Increase in sales to EMEA
(+GBP1.7m) Asia (+GBP2.5m), and Americas (+GBP0.8m).
The good performance is the result of a successful commercial
programme and continued recovering shrimp and seabass/seabream
markets. Adjusted EBITDA in Q4 2021 was GBP3.6m (Q4 2020: GBP0.2m).
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 region, Asia and Europe 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 GBP15.9m,
35% above the prior year (Q4 2020: GBP11.8m) driven by higher sales
of salmon eggs including the first sales from our new facility in
Chile and higher harvest revenues reflecting the first full year of
operation of our broodstock licence in Salten where we sell surplus
broodstock as harvested fish.
Adjusted EBITDA for Q4 2021 of GBP3.3m was 28% lower than prior
year (Q4 2020: GBP4.6m) as a result of an increase in operating
costs and R&D expenses as operations normalise post COVID-19,
expenses associated with the ramp up of operations in Chile and a
lower fair value uplift in biological assets of GBP1.0m, GBP0.6m
lower than the same period in FY20 (Q4 2020: uplift GBP1.6m), which
together offset the increased margin from higher sales.
The biological asset increase of GBP0.7m in the quarter (Q4
2020: GBP2.7m) was impacted by adverse foreign exchange movements
of GBP0.4m (Q4 2020: adverse GBP0.9m) and includes a lower fair
value increase than in Q4 2020 as noted above.
By species, salmon performed well, and we continued to win new
contracts for future delivery in the emerging land-based segment
where we have established a leading position. The expansion of the
incubation facility in Iceland is progressing according to plan. In
Chile, we continued our efforts to penetrate the market in a
disciplined manner, achieving first egg sales in the period.
In shrimp, test market sales of our SPR shrimp continued in the
period and the expansion of the Fellsmere facility in Florida is
now complete. We are planning a phased entry into the Asian markets
ensuring that we have an optimised product in each region. During
Q4 we capitalised GBP0.6m of development costs (YTD Q4 2021:
GBP1.9m) and incurred operating costs of GBP0.5m in this area (YTD
Q4 2021: GBP1.4m).
In Tilapia, our focus is on achieving profitability by seeking
new commercial opportunities and establishing the optimal scale for
a sustainably profitable business. In Q4 2021 we commenced a capex
project to significantly increase the capacity of our Miami
facility by installing heating to allow year-round production.
During the period we incurred GBP0.3m of operating costs in this
area (YTD Q4 2021: GBP0.9m).
Health
Revenues in Q4 FY21 from continuing operations of GBP4.3m were
significantly above the prior year (Q4 FY20 (restated): GBP1.4m)
due to first sales from our new Ectosan(R) Vet and CleanTreat(R)
solution commencing in August. We also had higher sales of Salmosan
in Canada, Norway and the Faroes. Adjusted EBITDA from continuing
operations in Q4 2021 was a profit of GBP1.1m (Q4 2020: profit of
GBP 0.2m) reflecting the higher revenues.
Operating costs associated with Ectosan(R) Vet and CleanTreat(R)
were GBP0.1m, and capex investment in CleanTreat(R) was GBP1.2m in
the quarter.
Ectosan (â) Vet has performed as expected with efficacy above
99%. CleanTreat (â) has performed above expectations on its
operational efficiency. During the period CleanTreat(R) received
the highest level of recognition for environmental protection and
sustainability by the Aquaculture Stewardship Council (ASC), the
world's leading certification scheme for farmed aquaculture.
Post period end the Ectosan(R) Vet patent grant was approved
giving 20 year protection.
Finance costs, cashflow and net debt
Net finance cost for the quarter of GBP3.7m is significantly
higher than the prior year (Q4 2020: GBP0.2m). Interest charge
(including interest expense on right-of-use assets) of GBP2.2m (Q4
2020: GBP2.0m) was slightly higher due to GBP0.2m increase in
interest on right-of-use assets. Q4 2021 had forex losses of
GBP1.2m (Q4 2020: GBP1.0m gain) and an adverse movement on the fair
value of the financial instrument used to hedge the currency and
interest risk on the NOK bond financing of GBP0.3m (Q4 2020: GBP0.8
gain).
Net debt at the quarter end was GBP80.9m (30 June 2021:
GBP54.7m; 30 Sept 2020: GBP37.6m) and Net debt excluding lease
liabilities was GBP56.9m (30 June 2021: GBP45.3m; 30 Sept 2020:
GBP27.1m). This is a result of a net cash flow generated from
operating activities of GBP5.8m and capex and capitalised
development costs of GBP23.1m in the year.
We have maintained financial discipline across the Group. Our
priority is to retain strength in our balance sheet to keep
momentum and support the execution of our growth opportunities.
Liquidity at the end of the period was GBP50.6m providing GBP40.6m
of headroom against our minimum liquidity covenant.
Outlook
The Group is performing in line with market expectations for the
full year, with consistency in performance continuing in Genetics
and Advanced Nutrition and Health starting to benefit from
Ectosan(R) Vet and CleanTreat(R) revenue stream. Conditions in our
markets are good with solid salmon markets and the shrimp market
showing recovery.
Benchmark Holdings plc
Consolidated Statement of Comprehensive Income for the period
ended 30 September 2021
Q4 2021 Q4 2020 FY 2020
FY 2021
All figures in GBP000's Notes (unaudited) (unaudited) (audited) (audited)
------------------------------------------------- ------ -------------- -------------- ----------- ------------
Revenue 4 37,261 25,239 125,062 105,565
Cost of sales (17,831) (12,317) (59,477) (50,603)
------------------------------------------------- ------
Gross profit 19,430 12,922 65,585 54,962
Research and development
costs (1,838) (1,307) (7,010) (7,282)
Other operating costs (10,195) (6,909) (38,221) (33,337)
Share of profit/(loss)
of equity-accounted investees,
net of tax (299) (55) (905) 150
------------------------------------------------- ------ -------------- -------------- ----------- ------------
Adjusted EBITDA(2) 7,098 4,651 19,449 14,493
Exceptional - restructuring/acquisition-related
items 6 871 (1,356) (184) (2,114)
------------------------------------------------- ------ -------------- -------------- ----------- ------------
EBITDA(1) 7,969 3,295 19,265 12,379
Depreciation and impairment (3,309) (1,984) (8,359) (6,640)
Amortisation and impairment (4,174) (4,108) (16,283) (16,613)
------------------------------------------------- ------ -------------- -------------- ----------- ------------
Operating profit/(loss) 486 (2,797) (5,377) (10,874)
Finance cost (3,771) (1,934) (7,987) (12,779)
Finance income 40 1,782 4,185 1,082
------------------------------------------------- ------ -------------- -------------- ----------- ------------
Loss before taxation (3,245) (2,949) (9,179) (22,571)
Tax on loss 7 (2,455) (426) (2,397) (204)
------------------------------------------------- ------ -------------- ------------
Loss from continuing operations (5,700) (3,375) (11,576) (22,775)
------------------------------------------------- ------ -------------- -------------- ----------- ------------
Discontinued operations
Loss from discontinued
operations, net of tax 5 - (5,379) - (9,174)
------------------------------------------------- ------ -------------- -------------- ----------- ------------
(5,700) (8,754) (11,576) (31,949)
------------------------------------------------- ------ -------------- -------------- ----------- ------------
Loss for the period attributable
to:
- Owners of the parent (6,101) (9,541) (12,891) (32,923)
- Non-controlling interest 401 787 1,315 974
------------------------------------------------- ------ -------------- -----------
(5,700) (8,754) (11,576) (31,949)
------------------------------------------------- ------ -------------- -------------- ----------- ------------
Earnings per share
Basic loss per share (pence) 8 (0.91) (1.43) (1.93) (5.26)
Diluted loss per share
(pence) 8 (0.91) (1.43) (1.93) (5.26)
Earnings per share - continuing
operations
Basic loss per share (pence) 8 (0.91) (0.62) (1.93) (3.80)
Diluted loss per share
(pence) 8 (0.91) (0.62) (1.93) (3.80)
All figures in GBP000's GBP000 GBP000 GBP000 GBP000
------------------------------------------------- ------ -------------- -------------- ----------- ------------
Adjusted EBITDA from continuing
operations 7,098 4,651 19,449 14,493
Adjusted EBITDA from discontinued
operations 5 - (2,452) - (8,726)
------------------------------------------------- ------ -------------- -------------- ----------- ------------
Total Adjusted EBITDA 7,098 2,199 19,449 5,767
------------------------------------------------- ------ -------------- -------------- ----------- ------------
1 EBITDA - Earnings/loss before interest, tax, depreciation,
amortisation and impairment
2 Adjusted EBITDA - EBITDA before exceptional and acquisition
related items
Q4 2021 Q4 2020 FY 2020
FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
--------------------------------------- --- -------------- -------------- ----------- ------------
Loss for the period (5,700) (8,754) (11,576) (31,949)
Other comprehensive income
Items that are or may be reclassified
subsequently to profit or
loss
Foreign exchange translation
differences 4,113 (11,858) (9,929) (20,327)
Cash flow hedges - changes
in fair value 760 (1,029) 3,054 (5,932)
Cash flow hedges - reclassified
to profit or loss 164 10 709 (153)
Total comprehensive income
for the period (663) (21,631) (17,742) (58,361)
-------------------------------------------- -------------- -------------- ----------- ------------
Total comprehensive income
for the period attributable
to:
- Owners of the parent (1,026) (22,250) (19,329) (58,532)
- Non-controlling interest 363 619 1,587 171
-------------------------------------------- ------------
(663) (21,631) (17,742) (58,361)
------------------------------------------- -------------- -------------- ----------- ------------
Total comprehensive income
for the period attributable
to owners of the parent:
- Continuing operations (1,026) (17,099) (19,329) (50,604)
- Discontinued operations - (5,151) - (7,928)
--------------------------------------------
(1,026) (22,250) (19,329) (58,532)
------------------------------------------- -------------- -------------- ----------- ------------
Benchmark Holdings plc
Consolidated Balance Sheet as at 30 September 2021
30 September 30 September
2021 2020
All figures in GBP000's Notes (unaudited) (audited)
------------------------------------------ ------ ------------- --------------
Assets
Property, plant and equipment 78,780 65,601
Right-of-use assets 25,531 10,347
Intangible assets 229,040 247,003
Equity-accounted investees 3,354 3,690
Other investments 15 23
Biological and agricultural assets 21,244 16,621
Non-current assets 357,964 343,285
------------------------------------------ ------ ------------- --------------
Inventories 20,947 18,926
Biological and agricultural assets 17,121 15,848
Trade and other receivables 46,498 39,371
Cash and cash equivalents 39,460 71,605
------------------------------------------ ------ ------------- --------------
Current assets 124,026 145,750
------------------------------------------
Total assets 481,990 489,035
------------------------------------------ ------ ------------- --------------
Liabilities
Trade and other payables (46,668) (45,692)
Loans and borrowings 9 (10,654) (5,339)
Corporation tax liability (5,634) (4,344)
Provisions (563) -
------------------------------------------ ------ ------------- --------------
Current liabilities (63,519) (55,375)
------------------------------------------ ------ ------------- --------------
Loans and borrowings 9 (109,737) (103,819)
Other payables (911) (1,754)
Deferred tax (28,224) (32,647)
Non-current liabilities (138,872) (138,220)
------------------------------------------ ------ ------------- --------------
Total liabilities (202,391) (193,595)
------------------------------------------ ------ ------------- --------------
Net assets 279,599 295,440
------------------------------------------ ------ ------------- --------------
Issued capital and reserves attributable
to owners of the parent
Share capital 10 670 668
Additional paid-in share capital 10 400,682 399,601
Capital redemption reserve 5 5
Retained earnings (154,231) (142,170)
Hedging reserve (5,876) (9,651)
Foreign exchange reserve 30,465 40,678
Equity attributable to owners of the
parent 271,715 289,131
Non-controlling interest 7,884 6,309
------------------------------------------ ------
Total equity and reserves 279,599 295,440
------------------------------------------ ------ ------------- --------------
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 September 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 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
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Comprehensive
income
for the period
(Loss)/profit
for
the period - - - - (12,891) (12,891) 1,315 (11,576)
Other
comprehensive
income - - (10,213) 3,775 - (6,438) 272 (6,166)
Total
comprehensive
income for
the period - - (10,213) 3,775 (12,891) (19,329) 1,587 (17,742)
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Contributions
by
and
distributions
to owners
Share issue 2 1,081 - - - 1,083 - 1,083
Share-based
payment - - - - 830 830 - 830
Total
contributions
by and
distributions
to owners 2 1,081 - - 830 1,913 - 1,913
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Changes in
ownership
Acquisition of
NCI
without a
change
in control - - - - - - (12) (12)
Total changes
in
ownership
interests - - - - - - (12) (12)
Total
transactions
with owners
of the
Company 2 1,081 - - 830 1,913 (12) 1,901
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
As at 30
September
2021
(audited) 670 400,682 30,470 (5,876) (154,231) 271,715 7,884 279,599
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
*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 year ended 30
September 2021
FY 2020
FY 2021
(audited) (audited)
GBP000 GBP000
--------------------------------------------- ----------- ------------
Cash flows from operating activities
Loss for the year (11,576) (31,949)
Adjustments for:
Depreciation and impairment of property,
plant and equipment 5,017 6,995
Depreciation and impairment of right-of-use
assets 3,342 2,143
Amortisation and impairment of intangible
fixed assets 16,283 19,402
Loss on sale of property, plant and
equipment 46 (1,140)
Gain on sale of subsidiaries - (14,120)
Finance income (1,442) (111)
Finance costs 7,987 9,695
Other adjustments for non-cash items - 200
Share of (loss)/profit of equity-accounted
investees, net of tax 905 (150)
Foreign exchange gains (1,800) (132)
Share-based payment expense 830 1,669
Tax credit 2,397 314
--------------------------------------------- ----------- ------------
21,989 (7,184)
(Increase)/decrease in trade and other
receivables (8,178) 4,202
(Increase)/decrease in inventories (3,554) 3,741
Increase in biological and agricultural
assets (5,427) (7,474)
Increase in trade and other payables 5,547 5,006
Decrease in provisions - (260)
--------------------------------------------- ----------- ------------
10,377 (1,969)
Income taxes paid (4,587) (2,087)
--------------------------------------------- ----------- ------------
Net cash flows generated from/(used
in) operating activities 5,790 (4,056)
--------------------------------------------- ----------- ------------
Investing activities
Proceeds from sale of subsidiaries,
net of cash disposed of - 17,487
Purchase of investments (578) (522)
Receipts from disposal of investments 9 6,932
Purchases of property, plant and equipment (17,683) (5,851)
Proceeds from sales of intangible
assets - 261
Purchase of intangibles (5,038) (5,563)
Purchase of held for sale assets - (402)
Proceeds from sale of fixed assets 112 16,147
Proceeds from sales of other long-term
assets - 1,776
Interest received 88 111
Net cash flows (used in)/generated
from investing activities (23,090) 30,376
--------------------------------------------- ----------- ------------
Financing activities
Proceeds of share issues 750 42,978
Share-issue costs recognised through
equity - (1,312)
Acquisition of NCI (12) -
Proceeds from bank or other borrowings - 8,387
Repayment of bank or other borrowings (3,106) (10,141)
Interest and finance charges paid (7,699) (7,659)
Repayments of lease liabilities (4,602) (2,120)
--------------------------------------------- ----------- ------------
Net cash flows (used in)/generated
from financing activities (14,669) 30,133
--------------------------------------------- ----------- ------------
Net (decrease)/increase in cash and
cash equivalents (31,969) 56,453
Cash and cash equivalents at beginning
of period 71,605 16,051
Effect of movements in exchange rate (176) (899)
--------------------------------------------- ----------- ------------
Cash and cash equivalents at end of
period 39,460 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.
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 three months and year ended
30 September 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 2021. 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. Statutory accounts for the year ended 30 September
2021 were approved by the Directors on 29 November 2021 and will be
delivered to the Registrar of Companies to the Registrar of
Companies after the AGM on 10 February 2022. The audit report
received on those accounts was (i) unqualified, (ii) contained a
material uncertainty in respect of going concern to which the
auditor drew attention by way of emphasis without modifying their
report and (iii) did not contain a statement under section 498(2)
or (3) 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 September 2021 the Group had net assets of GBP279.6m
(2020: GBP295.4m), including cash of GBP39.5m (2020: GBP71.6m) as
set out in the Consolidated Balance Sheet. The Group made a loss
for the year of GBP11.6m (2020: GBP31.9m).
As noted in the Strategic Report, we have seen some recovery in
our end markets as the COVID-19 vaccine programmes across the world
were rolled out in key markets and the hospitality sector reopened.
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 year has been
positive and has given cause for optimism. The Directors recognise
that full recovery could take time and remain cautious of the
possibility of a return of restrictions while a return following
the pandemic is managed across the globe. Available market analysis
continues to be monitored to ensure appropriate mitigating actions
can be taken as necessary.
The uncertainty relating to any lasting 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. The Directors have reviewed forecasts and cash flow
projections covering the period to September 2023 including
downside sensitivity assumptions in relation to trading performance
across the Group to assess the impact on the Group's trading and
cash flow forecasts and on the forecast compliance with the
covenants included within the Group's financing arrangements. 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 slower ramp up of the commercialisation of
Benchmark's new sea lice treatment in the Health business area.
Other key downside sensitivities modelled included assumptions on
slower than expected recovery in global shrimp markets (affecting
demand for Advanced Nutrition products), and slower
commercialisation of SPR shrimp. As noted in the Strategic Report,
the Directors have observed recovery in the shrimp markets in the
strong performance of the Advanced Nutrition business during the
year. Nevertheless, mitigating measures within the control of
management were implemented early in the pandemic and a number of
these 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.
It is difficult to predict the overall outcome and impact of the
pandemic, but under all of the above scenario analysis, the Group
has sufficient liquidity and resources throughout the period under
review whilst still maintaining adequate headroom against the
borrowing covenants. However, it should be noted that the Group's
main borrowing facilities are set to expire within the next 19
months - the $15m RCF is set to expire in December 2022, and the
NOK 850m bond is due to expire in June 2023. The cashflow forecasts
reviewed rely on these borrowing facilities being in place. The
Directors have commenced a review of the capital structure
including certain short term actions and also longer term financing
options, and are confident that these facilities can be renewed or
replaced before they expire, with trading going well despite the
headwinds of the pandemic and relationships with finance providers
strong. Cash resources continue to remain strong with the group
managing discretionary spend closely as recovery from the pandemic
progresses.
Based on their assessment, the Directors believe it remains
appropriate to prepare the financial statements on a going concern
basis. However, while the Directors remain confident that the
current facilities will be renewed or replaced in the next 19
months, the requirement to renew represents a material uncertainty
that may cast significant doubt on the Group's and Company's
ability to continue as a going concern and therefore to continue
realising their assets and discharging their liabilities in the
normal
1. Basis of preparation (continued)
course of business. The financial statements do not include any
adjustments that would result from the basis of preparation being
inappropriate.
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 2021.
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 defined by
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 2021.
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 - following the divestment programme completed in the
previous year the segment now focuses 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 previous two years.
In order to reconcile the segmental analysis to the consolidated
income statement, corporate and inter-segment sales are also shown.
Corporate sales represent revenues earned from recharging certain
central costs to the operating business areas, 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
Q4 2021 Q4 2020 FY 2020
FY2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
--------------------------- --------------- --------------- ------------ -------------
Genetics 15,932 11,833 46,797 41,504
Advanced Nutrition 17,093 12,094 70,530 59,362
Health 4,269 1,371 7,832 10,799
All other segments - 382 - 9,257
Corporate 1,209 947 4,820 4,939
Inter-segment sales (1,242) (989) (4,917) (5,469)
Total 37,261 25,638 125,062 120,392
--------------------------- --------------- --------------- ------------ -------------
Segmental Adjusted EBITDA
Q4 2021 Q4 2020 FY 2020
FY2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
---------------------------- --------------- --------------- ------------ -------------
Genetics 3,309 4,648 11,528 14,442
Advanced Nutrition 3,644 181 13,802 6,266
Health 1,104 (2,353) (2,685) (12,886)
All other segments - 103 - 244
Corporate (959) (380) (3,196) (2,299)
Total 7,098 2,199 19,449 5,767
---------------------------- --------------- --------------- ------------ -------------
Reconciliations of segmental information to IFRS measures
Q4 2021 Q4 2020 FY 2020
FY2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
----------------------------------------- --------------- --------------- ------------ -------------
Total revenue per segmental information 37,261 25,638 125,062 120,392
Less: revenue from discontinued
operations - (399) - (14,827)
-----------------------------------------
Consolidated revenue 37,261 25,239 125,062 105,565
----------------------------------------- --------------- --------------- ------------ -------------
Reconciliation of Reportable Segments Adjusted EBITDA to Loss
before taxation from continuing operations
-----------------------------------------------------------------------------------------------------------------
Q4 2021 Q4 2020 FY 2020
FY2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
-------------------------------------------------- --------------- --------------- ------------ -------------
Total reportable segment Adjusted
EBITDA 8,057 2,476 22,645 7,822
All other segments and Corporate
Adjusted EBITDA (959) (277) (3,196) (2,055)
-------------------------------------------------- --------------- --------------- ------------ -------------
7,098 2,199 19,449 5,767
Less: Adjusted EBITDA from discontinued
operations - 2,452 - 8,726
-------------------------------------------------- --------------- --------------- ------------ -------------
Adjusted EBITDA from continuing
operations 7,098 4,651 19,449 14,493
Exceptional - restructuring/acquisition-related
items 871 (1,356) (184) (2,114)
Depreciation and impairment (3,309) (1,984) (8,359) (6,640)
Amortisation and impairment (4,174) (4,108) (16,283) (16,613)
Net finance costs (3,731) (152) (3,802) (11,697)
Loss before taxation from continuing
operations (3,245) (2,949) (9,179) (22,571)
-------------------------------------------------- --------------- --------------- ------------ -------------
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 September 2021 (unaudited)
---------------- -----------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
Sale of
goods 14,925 17,077 2,593 - - - 34,595 - 34,595
Provision
of services 990 - 1,676 - - - 2,666 - 2,666
Inter-segment
sales 17 16 - - 1,209 (1,242) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
15,932 17,093 4,269 - 1,209 (1,242) 37,261 - 37,261
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
3 months ended 30 September 2020 (unaudited)
---------------- --- -----------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- --- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -------------
Sale of
goods 11,149 12,081 1,323 116 - - 24,669 123 24,546
Provision
of services 646 - 47 276 - - 969 276 693
Inter-segment
sales 38 13 1 (10) 947 (989) - - -
--------------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -------------
11,833 12,094 1,371 382 947 (989) 25,638 399 25,239
-------------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -------------
12 months ended 30 September 2021 (unaudited)
---------------- ------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------
Sale of goods 41,947 70,458 6,135 - - - 118,540 - 118,540
Provision
of services 4,825 - 1,697 - - - 6,522 - 6,522
Inter-segment
sales 25 72 - - 4,820 (4,917) - - -
-------------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------
46,797 70,530 7,832 - 4,820 (4,917) 125,062 - 125,062
------------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------
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
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -----------
4. Revenue (continued)
Sale of goods and provision of services (continued)
Primary geographical markets
3 months ended 30 September 2021 (unaudited)
---------------- -----------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
Norway 10,526 135 2,898 - - - 13,559 - 13,559
UK 276 20 145 - - - 441 - 441
Faroe Islands 1,171 2 180 - - - 1,353 - 1,353
Ecuador - 1,057 - - - - 1,057 - 1,057
India - 3,029 - - - - 3,029 - 3,029
Greece - 986 - - - - 986 - 986
Singapore - 1,954 - - - - 1,954 - 1,954
Chile 400 1 296 - - - 697 - 697
Turkey - 1,109 - - - - 1,109 - 1,109
Rest of
Europe 2,347 763 - - - - 3,110 - 3,110
Rest of
World 1,195 8,021 750 - - - 9,966 - 9,966
Inter-segment
sales 17 16 - - 1,209 (1,242) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
15,932 17,093 4,269 - 1,209 (1,242) 37,261 - 37,261
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
3 months ended 30 September 2020 (unaudited)
---------------- -----------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
Norway 5,735 187 180 - - - 6,102 - 6,102
UK 818 49 42 354 - - 1,263 356 907
Faroe Islands 1,797 - 80 - - - 1,877 - 1,877
Ecuador - 1,410 - - - - 1,410 - 1,410
India - 1,810 - - - - 1,810 - 1,810
Greece - 641 - - - - 641 - 641
Singapore - 1,099 - - - - 1,099 - 1,099
Chile 95 5 827 - - - 927 2 925
Turkey - 402 - - - - 402 - 402
Rest of
Europe 2,098 684 17 - - - 2,799 - 2,799
Rest of
World 1,252 5,794 224 38 - - 7,308 41 7,267
Inter-segment
sales 38 13 1 (10) 947 (989) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
11,833 12,094 1,371 382 947 (989) 25,638 399 25,239
---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
4. Revenue (continued)
Primary geographical markets (continued)
12 months ended 30 September 2021 (unaudited)
---------------- ------------------------------------------------------------------------------------------------------------------
All
All figures Advanced other Inter-segment
in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -----------
Norway 27,129 570 3,689 - - - 31,388 - 31,388
UK 3,843 117 622 - - - 4,582 - 4,582
Faroe Islands 5,636 18 348 - - - 6,002 - 6,002
Ecuador - 4,066 - - - - 4,066 - 4,066
India - 12,166 3 - - - 12,169 - 12,169
Greece 25 6,108 - - - - 6,133 - 6,133
Singapore - 7,544 - - - - 7,544 - 7,544
Chile 437 7 2,335 - - - 2,779 - 2,779
Turkey - 5,977 - - - - 5,977 - 5,977
Rest of
Europe 6,922 4,208 26 - - - 11,156 - 11,156
Rest of
World 2,780 29,677 809 - - - 33,266 - 33,266
Inter-segment
sales 25 72 - - 4,820 (4,917) - - -
----------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -----------
46,797 70,530 7,832 - 4,820 (4,917) 125,062 - 125,062
---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -----------
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 - 3,236 - - - - 3,236 - 3,236
Rest of
Europe 5,421 4,554 1,566 2,549 - - 14,090 4,071 10,019
Rest of
World 2,791 26,434 1,040 532 - - 30,797 936 29,861
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
Q4 2021 Q4 2020 FY 2020
FY2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
----------------------------------- --- --------------- -------------- ----------- ------------
Revenue - 399 - 14,827
Cost of sales - (1,918) - (13,000)
----------------------------------------
Gross profit - (1,519) - 1,827
Research and development costs - (263) - (2,725)
Other operating costs - (670) - (7,828)
---------------------------------------- -------------- -------------- ----------- ------------
Adjusted EBITDA - (2,452) - (8,726)
Exceptional items - (34) - 5,086
---------------------------------------- -------------- -------------- ----------- ------------
EBITDA - (2,486) - (3,640)
Depreciation and impairment - (803) - (2,498)
Amortisation and impairment - (2,035) - (2,789)
---------------------------------------- -------------- -------------- ----------- ------------
Operating loss - (5,324) - (8,927)
Finance costs - (55) - (137)
---------------------------------------- -------------- -------------- ----------- ------------
Loss before taxation - (5,379) - (9,064)
Tax on loss - - - (110)
---------------------------------------- -------------- -------------- ----------- ------------
Loss from discontinued operations - (5,379) - (9,174)
---------------------------------------- -------------- -------------- ----------- ------------
Results from discontinued operations by segment
Advanced All other Total
Nutrition Health segments Corporate Discontinued
Q4 2021 Q4 2021 Q4 2021 Q4 2021 Q4 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
Q4 2020 Q4 2020 Q4 2020 Q4 2020 Q4 2020
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
------------------------- --- -------------- -------------- -------------- -------------- --------------
Revenue - 8 391 - 399
Adjusted EBITDA (25) (2,516) 120 (31) (2,452)
Operating loss (25) (4,379) (889) (31) (5,324)
------------------------------ -------------- -------------- -------------- -------------- --------------
5. Discontinued activities (continued)
Results from discontinued operations by segment (continued)
Advanced All other Total
Nutrition Health segments Corporate Discontinued
FY2021 FY2021 FY2021 FY2021 FY2021
All figures in GBP000's (audited) (audited) (audited) (audited) (audited)
------------------------- --- ------------ ------------ ------------ ------------ --------------
Revenue - - - - -
Adjusted EBITDA - - - - -
Operating loss - - - - -
------------------------- --- ------------ ------------ ------------ ------------ --------------
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/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.
Q4 2021 Q4 2020 FY 2020
FY2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
-------------------------------- --- -------------- -------------- ----------- ------------
Acquisition related items (850) 586 (850) 586
Exceptional restructuring
and disposal items 110 770 480 1,528
Cost in relation to disposals (131) - 554 -
------------------------------------- -------------- -------------- ----------- ------------
Total exceptional items (871) 1,356 184 2,114
------------------------------------- -------------- -------------- ----------- ------------
Acquisition related items are costs incurred in investigating
and acquiring new businesses. In Q4 2021 contingent consideration
of GBP850,000 was released in relation to the purchase of Benchmark
Genetics (USA) Inc.
Exceptional restructuring and disposal items in Q4 2021 include
GBP110,000 of staff costs relating to the Board's decision to make
significant changes to the Group's management team and bring in new
management.
Costs in relation to disposals include credits of GBP94,000 of
legal fees, GBP17,000 of lease costs, and GBP20,000 of other
disposal items. These relate to accrual releases relating to
disposals that occurred in the prior year.
7. Taxation
Q4 2021 Q4 2020 FY 2020
FY2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
-------------------------------- --- -------------- -------------- ----------- ------------
Analysis of charge in period
Current tax:
Current income tax expense
on profits for the period 2,716 506 5,383 3,141
Adjustment in respect of prior
periods 502 836 502 836
------------------------------------- -------------- -------------- ----------- ------------
Total current tax charge 3,218 1,342 5,885 3,977
Deferred tax:
Origination and reversal of
temporary differences (768) (634) (3,228) (3,490)
Deferred tax movements in
respect of prior periods 5 (282) (260) (283)
------------------------------------- -------------- -------------- ----------- ------------
Total deferred tax credit (763) (916) (3,488) (3,773)
------------------------------------- -------------- -------------- ----------- ------------
Total tax charge on continuing
operations 2,455 426 2,397 204
------------------------------------- -------------- -------------- ----------- ------------
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.
Q4 2021 Q4 2020 FY 2020
FY2021
(unaudited) (unaudited) (audited) (audited)
------------------------------------- -------------- -------------- ----------- ------------
Loss attributable to equity holders
of the parent (GBP000)
Continuing operations (6,101) (4,162) (12,891) (23,749)
Discontinued operations - (5,379) - (9,174)
Total (6,101) (9,541) (12,891) (32,923)
------------------------------------- -------------- -------------- ----------- ------------
Weighted average number of shares
in issue (thousands) 670,141 667,654 669,459 625,466
Basic loss per share (pence)
Continuing operations (0.91) (0.62) (1.93) (3.80)
Discontinued operations - (0.82) - (1.46)
Total (0.91) (1.43) (1.93) (5.26)
------------------------------------- -------------- -------------- ----------- ------------
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 September 2021, a total of 4,615,712 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 September
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
Exercise of share options 2,152,600 2 748
Shares issued as contingent consideration
for a previous acquisition 536,272 - 333
Balance at 30 September 2021 670,374,484 670 400,682
------------------------------------------- ------------ --------- -----------
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 of 0.1p each on 13 January 2021 to settle
this liability.
During the period ended 30 September 2021, the Group issued a
total of 2,152,600 shares of 0.1p each to certain employees of the
Group relating to share options, of which 426,182 were exercised at
a price of 0.1 pence, 1,626,436 were exercised at a price of 42.5
pence and 99,982 were exercised at a price of 58.5 pence.
11. Alternative performance measures and other metrics
Management has presented the performance measures EBITDA,
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 performance measures and other metrics (continued)
Reconciliation of adjusted operating profit to operating
profit/(loss)
Continuing operations
Q4 2021 Q4 2020 FY 2020
FY2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
------------------------------------------------- --- -------------- -------------- ----------- ------------
Revenue 37,261 25,239 125,062 105,565
Cost of sales (17,831) (12,317) (59,477) (50,603)
------------------------------------------------------ -------------- -------------- ----------- ------------
Gross profit 19,430 12,922 65,585 54,962
Research and development costs (1,838) (1,307) (7,010) (7,282)
Other operating costs (10,195) (6,909) (38,221) (33,337)
Depreciation and impairment (3,309) (1,984) (8,359) (6,640)
Amortisation of capitalised
development costs (299) - (299) -
Share of (loss)/profit of
equity accounted investees
net of tax (299) (55) (905) 150
------------------------------------------------------ -------------- -------------- ----------- ------------
Adjusted operating profit 3,490 2,667 10,791 7,853
Exceptional - restructuring/acquisition-related
items 871 (1,356) (184) (2,114)
Amortisation and impairment
of intangible assets excluding
development costs (3,875) (4,108) (15,984) (16,613)
------------------------------------------------------ -------------- -------------- ----------- ------------
Operating profit/(loss) 486 (2,797) (5,377) (10,874)
------------------------------------------------------ -------------- -------------- ----------- ------------
Reconciliation of loss before taxation to adjusted profit/(loss)
before tax
Continuing operations
Q4 2021 Q4 2020 FY 2020
FY2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
--------------------------------- --- -------------- -------------- ----------- ------------
Loss before taxation (3,245) (2,949) (9,179) (22,571)
Exceptional - restructuring,
disposal and acquisition
related items (871) 1,356 184 2,114
Amortisation and impairment
of intangible assets excluding
development costs 3,875 4,108 15,984 16,613
-------------------------------------- -------------- -------------- ----------- ------------
Adjusted (loss)/profit before
tax (241) 2,515 6,989 (3,844)
-------------------------------------- -------------- -------------- ----------- ------------
Other metrics
Q4 2021 Q4 2020 FY 2020
FY2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
---------------------------------- --- -------------- -------------- ----------- ------------
Total R&D Investment
Research and development
costs
- Continuing operations 1,838 1,307 7,010 7,282
- Discontinued operations - 263 - 2,725
--------------------------------------- -------------- -------------- ----------- ------------
1,838 1,570 7,010 10,007
Internal capitalised development
costs 1,351 1,624 4,813 4,583
----------- ------------
Total R&D investment 3,189 3,194 11,823 14,590
--------------------------------------- -------------- -------------- ----------- ------------
11. Alternative performance measures and other metrics (continued)
Q4 2021 Q4 2020 FY 2020
FY2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
------------------------------------ --- --------------- --------------- ------------ -------------
Adjusted EBITDA excluding
fair value movement in biological
assets
Adjusted EBITDA 7,098 4,651 19,449 14,493
Exclude fair value movement
in biological assets (996) (1,555) (3,323) (3,253)
--------------- --------------- ------------ -------------
Adjusted EBITDA excluding
fair value movement in biological
assets 6,102 3,096 16,126 11,240
----------------------------------------- --------------- --------------- ------------ -------------
Liquidity
Following the refinancing in June 2019 a key financial covenant
is a minimum liquidity of GBP10m, defined as cash plus undrawn
facilities.
30 September
2021
All figures in GBP000's (audited)
--------------------------- -------------
Cash and cash equivalents 39,460
Undrawn bank facility 11,138
50,598
--------------------------- -------------
12. Net debt
Net debt is cash and cash equivalents less loans and
borrowings.
30 September 30 September
2021 2020
All figures in GBP000's (unaudited) (audited)
--------------------------------------- ------------- --------------
Cash and cash equivalents 39,460 71,605
Loans and borrowings (excluding lease
liabilities) - current (1,612) (2,856)
Loans and borrowings (excluding lease
liabilities) - non-current (94,792) (95,863)
Net debt excluding lease liabilities (56,944) (27,114)
---------------------------------------- ------------- --------------
Lease liabilities - current (9,042) (2,483)
Lease liabilities - non-current (14,945) (7,956)
---------------------------------------- ------------- --------------
Net debt (80,931) (37,553)
---------------------------------------- ------------- --------------
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