TIDMBMK
RNS Number : 3521C
Benchmark Holdings PLC
22 February 2022
22 February 2022
Information within this announcement is deemed by the Company to
constitute inside information under the Market Abuse Regulations
(EU) No. 596/2014.
Benchmark Holdings plc
("Benchmark", the "Company" or the "Group")
Q1 Results
(3 months ended 31 December 2021)
Excellent Q1 results with strong growth in revenues and Adjusted
EBITDA
Building momentum following strong FY21 performance
In compliance with the terms of the Company's senior secured
bond which requires it to publish quarterly financial information,
Benchmark, the aquaculture biotechnology business, announces its
unaudited results for the 3 months ended 31 December 2021 (the
"period") . All Q1 FY22 and Q1 FY21 figures quoted in this
announcement are based on unaudited accounts.
Highlights - Strong growth in revenues and Adjusted EBITDA; good
performance in all business areas
-- Group revenues 38% ahead of the prior year (+38% CER) with
good growth in all three business areas:
o Advanced Nutrition - revenues 26% above Q1 FY21 (+28% CER)
building upon the strong FY21 performance
o Genetics - revenues 20% above Q1 FY21 (+18% CER) driven by
higher harvest income, as well as higher salmon egg revenues
o Health - revenues 347% above Q1 FY21 (+348% CER) reflecting
sales of Ectosan (â) Vet and CleanTreat (â) (launched in August
2021)
-- Adjusted EBITDA of GBP7.4m, 145% ahead of Q1 FY22, with all business areas EBITDA profitable
-- Adjusted EBITDA margin increased from 10.4% to 18.6%
-- Operating loss halved, however net loss increased due to
negative GBP4.9m non-cash movement in net finance costs ( Q1 FY21
had benefitted from GBP2.5m forex gain and GBP2.3m revaluation of
hedging instrument associated with NOK bond)
-- Net debt reduced to GBP64.3m at 31 December 2021 (30
September 2021: GBP80.9m) following equity raise in November 2021;
Net debt excluding lease liabilities GBP43.1m (30 September 2021:
GBP56.9m)
-- Cash of GBP50.6m and Liquidity (cash and available facility)
of GBP61.6m as at 21 February 2022
GBPm Q1 FY22 Q1 FY21 % AER % CER(**) FY21
(full year)
Revenue 40.0 29.0 +38% +38% 125.1
-------- ---------- ------ ---------- -------------
Adjusted
-------- ---------- ------ ---------- -------------
Adjusted EBITDA(1) 7.4 3.0 +145% +142% 19.4
-------- ---------- ------ ---------- -------------
Adj. EBITDA excluding
fair value movement
in biological asset 7.5 1.8 +329% +321% 16.1
-------- ---------- ------ ---------- -------------
Adjusted Operating Profit(2) 2.5 1.3 +97% +89% 10.8
-------- ---------- ------ ---------- -------------
Statutory
-------- ---------- ------ ---------- -------------
Operating loss (1.5) (3.3) (5.4)
-------- ---------- ------ ---------- -------------
Loss before tax (3.7) (0.5) (9.2)
-------- ---------- ------ ---------- -------------
Loss for the period (5.1) (0.2) (12.9)
-------- ---------- ------ ---------- -------------
Basic loss per share
(p) (0.79) (0.11) (1.9)
-------- ---------- ------ ---------- -------------
Net debt(3) (64.3) (51.9) (80.9)
-------- ---------- ------ ---------- -------------
Net debt excluding lease
liabilities (43.1) (40.4) (56.9)
-------- ---------- ------ ---------- -------------
** 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
GBPm Q1 FY22 Q1 FY21 % AER % CER(**) FY21
(full year)
Revenue
-------- -------- ------ ---------- -------------
Advanced Nutrition 19.1 15.1 +26% +28% 70.5
-------- -------- ------ ---------- -------------
Genetics 15.2 12.6 +20% +18% 46.8
-------- -------- ------ ---------- -------------
Health 5.8 1.3 +347% +348% 7.8
-------- -------- ------ ---------- -------------
Adjusted EBITDA(1)
-------- -------- ------ ---------- -------------
Advanced Nutrition 4.3 1.0 +335% +337% 13.8
-------- -------- ------ ---------- -------------
Genetics 3.3 3.9 -16% -19% 11.5
-------- -------- ------ ---------- -------------
* Net of fair value movements in biological assets 3.4 2.6 +29% +23% 8.2
-------- -------- ------ ---------- -------------
Health 0.5 (1.1) +149% +149% (2.7)
-------- -------- ------ ---------- -------------
** 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
-- Advanced Nutrition
o Patrick Waty named new Head of Advanced Nutrition bringing
extensive commercial and industry expertise to business area
o C ontinued to strengthen our commercial footprint, enhancing
our distributor network and commercial team
o Obtained ISO 14001:2015 certification for main facility in
Thailand
o Benchmark's Frippak China Aquatic Feed named "Favourite
Brand"
-- Genetics
o First deliveries of salmon eggs from new incubation centre in
Iceland showing excellent quality, enhancing our ability to serve
all production systems including land-based farming
o Good progress in the roll-out of SPR shrimp, winning new
customers, import licence to India obtained and gaining commercial
traction
o Appointment of Professor Ross Houston, leading aquaculture
genetics scientist, as Director of Innovation, Genetics
-- Health
o Both CleanTreat(R) systems in operation from last part of
quarter onwards and treatments showing excellent results in line
with our expectations
o Order recently placed for third CleanTreat(R) system
o Collaboration with key customers on optimising future
configuration initiated
o Progress in trials to obtain extension of Marketing
Authorisation for Ectosan (â) Vet and CleanTreat (â) in Norway
o Ectosan (â) Vet patent grant approved providing 20-year
protection
-- One Benchmark integration - continued to integrate Group
functions to realise synergies, leverage capabilities and enhance
customer proposition
-- Sustainability - by working with our suppliers the soy beans
used in our feeds are sustainably certified
-- Consideration of a listing in Oslo is ongoing
Current trading and outlook
-- Following the good performance in Q1 we are trading in line with FY22 expectations
-- Positive market environment across our core species
-- Well positioned to reach sustainable profitability and
deliver growth, supported by leading market positions in all
business areas, a focused strategy and well embedded financial
discipline
Trond Williksen, CEO commented
"Benchmark has delivered an excellent Q1 performance, reporting
a 38% annual growth in revenue and 145% increase in Adjusted
EBITDA. This reflects an excellent performance in Advanced
Nutrition, continued good performance in Genetics and the benefit
of revenues from the recently launched Ectosan (â) Vet and
CleanTreat (â) in our Health business area.
"We are performing in line with market expectations for the full
year, with building momentum in our commercial, operating and
financial performance in all business areas. The positive market
environment in our core species, our leading market positions,
together with our focused strategy and financial discipline
positions the Group well to reach profitability and deliver
growth."
Details of analyst / investor call today
There will be a call at 9:00am UK time today for analysts and
investors. To register for the call please contact MHP
Communications on +44 (0)20 3128 8990 or by email on
benchmark@mhpc.com
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
Katie Hunt, Reg Hoare, Charlie Protheroe benchmark@mphc.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 delivered an excellent performance in the quarter
reporting a 38% growth in revenue and 145% growth in Adjusted
EBITDA. These strong results reflect an excellent performance in
Advanced Nutrition, continued good performance in Genetics and the
benefit of early revenues from the recently launched Ectosan (â)
Vet and CleanTreat (â) in our Health business area. The Group's
performance is particularly pleasing in the context of the
logistics challenges and increased transportation costs affecting
industries worldwide. Conditions in our core markets have improved
and are positive with a solid, growing salmon sector, recovery in
the global shrimp markets and stability in the sea bass and sea
bream market.
Operating costs in Q1 FY22 were GBP9.9m, 7% above the prior year
as a result of increased activity, but significantly below our
revenue growth demonstrating the operational leverage in our
business. R&D expenses at GBP1.6m were broadly in line with the
comparative quarter (Q1 FY21: GBP1.7m). Total R&D investment
including capitalised development costs was GBP2.3m (Q1 FY21:
GBP2.8m) reflecting the lower level of capitalised development
costs following the launch of Ectosan(R) Vet and CleanTreat(R) in
Q4 FY21.
Adjusted EBITDA for the quarter was GBP7.4m, +145% up from
GBP3.0m in Q1 FY21 as a result of higher revenues, ongoing
financial discipline and operational improvements across the Group.
Importantly our Adjusted EBITDA margin increased to 18.6% (Q1 FY21:
10.4%). Depreciation and amortisation in the quarter increased
significantly from the comparative period last year to GBP8.9m (Q1
FY21: GBP5.7m) due to both the depreciation of the leased vessels
used in the CleanTreat(R) operation and the commencement of
amortisation of the capitalised Ectosan(R) Vet and CleanTreat(R)
development costs following the launch at the end of FY21. These
higher costs were more than offset by the better Adjusted EBITDA
and as a result, the Group reported a significant improvement in
its operating result, reducing the operating loss to GBP1.5m in the
period (Q1 FY21: operating loss of GBP3.3m).
Although Operating Loss halved, the Loss before tax, and Loss
for the period, increased due to a negative GBP4.9m non-cash
movement in net finance costs (Q1 FY21 benefitted from GBP2.5m
forex gain and GBP2.3m revaluation of hedging instrument associated
with NOK bond).
Advanced Nutrition
Advanced Nutrition delivered excellent results in the quarter
building on a strong performance in FY21 with revenues up 26% and
Adjusted EBITDA increasing more than four-fold. As the shrimp
markets recover post COVID-19 we are profiting from our leading
market position, an enhanced commercial function and new digital
tools. Overall, we are emerging from the pandemic in a stronger
position.
Revenue in the quarter was GBP19.1m (Q1 FY21: GBP15.1m) with
good growth across all product areas - Artemia (+23%), Diets (+31%)
and Health (+13%). By region the Americas were up 41%, Asia +45%
and Europe +1%.
Adjusted EBITDA was GBP4.3m (Q1 FY21: GBP1.0m). The increase in
Adjusted EBITDA reflects higher sales and gross profit margin and
ongoing cost discipline. As a result, adjusted EBITDA margin
increased from 6.5% to 22.7%.
The shrimp markets continued to recover in the period which
together with the strategic focus on our commercial organisation
contributed to our strong performance. Examples of our commercial
focus and success include receiving an Aquatic Feed Favourite Brand
Award in China for one of our lead products, Frippak, expanding our
network of distributors in Latin America and developing new digital
tools in local languages to better serve our Asian and Latin
American markets. The most recent Artemia harvest was below recent
record years which, together with increased sales, will allow us to
reach normal inventory levels over time.
During the period we obtained ISO 14001 Environmental Management
System certification for our facility in Thailand. This is an
important milestone in our sustainability programme. We are also
evaluating greener energy alternatives for our facility in Thailand
as we work towards our Net Zero targets.
Genetics
Genetics performed well in the period with revenues of GBP15.2m,
20% above the prior year (Q1 FY21: GBP12.6m) driven by higher
harvest revenues from our broodstock licence in Salten, where we
sell surplus broodstock as harvested fish, as well as higher
revenues from salmon eggs and SPR shrimp.
Adjusted EBITDA for Q1 FY22 of GBP3.3m was 16% lower than prior
year (Q1 FY21: GBP3.9m) as a result of adverse fair value movements
in biological assets and an increase in operating costs as
operations normalise post COVID-19. Excluding the reduction in fair
value of biological assets of GBP0.1m (Q1 FY21 GBP1.3m uplift),
Adjusted EBITDA was GBP3.4m, 29% above the prior year (Q1 FY21:
GBP2.6m).
We continued to make strategic progress during the period, with
the first deliveries of salmon eggs from the new incubation centre
in Iceland as planned. In Chile, we continued the operational ramp
up of our facilities to enable us to deliver a steady supply to the
market, and we obtained organic certification for our salmon eggs.
While still in the early phase of commercialisation entering an
established market, we are growing sales in line with our
expectations and building our customer base.
In SPR shrimp we are gaining commercial traction. Sales of
breeders in the first quarter were 245% ahead of last year, in line
with our commercial roll-out plan. During the quarter we also
obtained an import license in India and secured our first customers
in this important market.
We are delighted to have appointed Professor Ross Houston as
Director of Innovation, Genetics. Professor Houston has an
international reputation where his work includes the discovery of a
genetic marker associated with resistance to Infectious Pancreatic
Necrosis and he leads several high-profile aquaculture research
projects focussing on the application of genomics and genome
editing technologies.
Health
Revenues in Q1 FY22 of GBP5.8m were significantly above the
prior year (Q1 FY21: GBP1.3m) due to sales from Ectosan(R) Vet and
CleanTreat(R) following the launch in Q4 FY21, together with
slightly higher sales of Salmosan. Adjusted EBITDA was a profit of
GBP0.5m (Q1 FY21: loss of GBP1.1m) as a result of the higher
revenues. GBP1.0m of the revenue in the period (Q1 FY21: GBPnil)
derived from recharged vessel and fuel costs associated with the
Ectosan(R) Vet/CleanTreat(R) operations.
We have two CleanTreat(R) systems in operation and treatments
continue to show excellent results with efficacy above 99% and good
operational efficiency. Delivery of treatments post period end
slowed down as anticipated due to seasonal adverse weather
conditions. Post period end we have placed an order for our third
CleanTreat(R) system, and we are working closely with customers to
optimise the future configuration of the system.
We are making progress in the trials to obtain extension of
Marketing Authorisation for Ectosan(R) Vet and CleanTreat(R) in
Norway is continuing as planned. In the period, the patent for
Ectosan(R) Vet was approved and granted giving 20 year
protection.
Depreciation and Amortisation
Depreciation and amortisation charges increased from GBP5.7m to
GBP8.9m in the period as a result of the depreciation associated
with the CleanTreat(R) infrastructure and the commencement of the
amortisation of the development costs associated with Ectosan(R)
Vet and CleanTreat(R).
Finance costs, cashflow and net debt
Net finance cost for the quarter of GBP2.2m is significantly
higher than the prior year (Q1 FY21: credit of GBP2.7m), with the
increase as a result of minimal revaluation movements on financial
instruments (GBPnil) and forex movements (GBP0.2m loss) compared to
much larger movements in the prior year (Q1 FY21: GBP2.3m gain and
GBP2.5m gain respectively). Interest charges (including interest
expense on right-of-use assets) of GBP2.2m are broadly in line with
the prior year (Q1 FY21: GBP2.1m).
The Group reported a cash inflow of GBP13.4m in the quarter,
driven by an equity raise of GBP20m (net proceeds) completed in
November 2021. This, added to a net cash inflow from operating
activities of GBP1.1m was partially offset by cash outflow from
capex of GBP2.6m (including GBP0.6m of capitalised R&D) and
with tangible fixed asset additions primarily related to
investments in Genetics and cash outflow in financing activities
(finance charges and repayment of lease liabilities) of GBP4.6m.
Net debt including lease liabilities at the quarter end was
GBP64.3m (30 September 2021: GBP80.9m). Liquidity at the end of the
period was GBP63.8m providing GBP53.8m of headroom against our
minimum liquidity covenant. Net debt excluding lease liabilities
was GBP43.1m (30 September 2021: GBP56.9m).
Outlook
The Group is performing in line with market expectations for the
full year, with continuing good performance and revenue visibility
in Genetics and Advanced Nutrition, and Health starting to benefit
from the Ectosan(R) Vet and CleanTreat(R) revenue stream. The
roll-out of Ectosan Vet and CleanTreat is progressing as expected,
reflecting the anticipated challenges caused by the winter weather.
Conditions and outlook in our markets are positive with solid
salmon markets and the shrimp market showing recovery.
With a streamlined Group and leading market positions in each of
our business areas, as well as building commercial, operating and
financial momentum, we are well positioned to build on our FY21
track record and continue to deliver improved performance,
profitability and growth.
Consolidated Income Statement for period ended 31 December
2021
Q1 2022 Q1 2021 FY 2021
All figures in GBP000's Notes (unaudited) (unaudited) (audited)
--------------------------------------- ------ -------------- -------------- ------------
Revenue 4 40,014 29,030 125,062
Cost of sales (20,515) (14,359) (59,477)
--------------------------------------- ------
Gross profit 19,499 14,671 65,585
Research and development costs (1,647) (1,745) (7,010)
Other operating costs (9,923) (9,285) (38,221)
Share of loss of equity-accounted
investees, net of tax (504) (611) (905)
--------------------------------------- ------ -------------- -------------- ------------
Adjusted EBITDA(2) 7,425 3,030 19,449
Exceptional - restructuring, disposal
and acquisition related items 5 - (593) (184)
--------------------------------------- ------ -------------- -------------- ------------
EBITDA(1) 7,425 2,437 19,265
Depreciation and impairment (4,495) (1,771) (8,359)
Amortisation and impairment (4,388) (3,918) (16,283)
--------------------------------------- ------ -------------- -------------- ------------
Operating loss (1,458) (3,252) (5,377)
Finance cost (2,343) (2,149) (7,987)
Finance income 119 4,886 4,185
--------------------------------------- ------ -------------- -------------- ------------
Loss before taxation (3,682) (515) (9,179)
Tax on loss 6 (1,427) 290 (2,397)
--------------------------------------- ------ -------------- ------------
Loss for the period (5,109) (225) (11,576)
--------------------------------------- ------ -------------- -------------- ------------
Loss for the period attributable to:
- Owners of the parent (5,357) (717) (12,891)
- Non-controlling interest 248 492 1,315
--------------------------------------- ------ --------------
(5,109) (225) (11,576)
--------------------------------------- ------ -------------- -------------- ------------
Earnings per share
Basic loss per share (pence) 7 (0.79) (0.11) (1.93)
Diluted loss per share (pence) 7 (0.79) (0.11) (1.93)
--------------------------------------- ------ -------------- -------------- ------------
1 EBITDA - Earnings before interest, tax, depreciation,
amortisation and impairment
2 Adjusted EBITDA - EBITDA before exceptional items including
acquisition related items
The accompanying notes are an integral part of this consolidated
financial information.
Consolidated Statement of Comprehensive Income for period ended
31 December 2021
Q1 2022 Q1 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited)
------------------------------------------ ---- -------------- -------------- ------------
Loss for the period (5,109) (225) (11,576)
Other comprehensive income
Items that are or may be reclassified
subsequently to profit or loss
Foreign exchange translation differences (2,611) (8,714) (9,929)
Cash flow hedges - changes in fair
value (134) 2,898 3,054
Cash flow hedges - reclassified to
profit or loss 115 156 709
Total comprehensive income for the
period (7,739) (5,885) (17,742)
------------------------------------------------ -------------- -------------- ------------
Total comprehensive income for the
period attributable to:
- Owners of the parent (7,948) (6,624) (19,329)
- Non-controlling interest 209 739 1,587
------------------------------------------------ ------------
(7,739) (5,885) (17,742)
----------------------------------------------- -------------- -------------- ------------
The accompanying notes are an integral part of this consolidated
financial information.
Consolidated Balance Sheet as at 31 December 2021
31 December 31 December 30 September
2021 2020 2021
All figures in GBP000's Notes (unaudited) (unaudited) (audited)
------------------------------------------ ------ ------------ ------------- --------------
Assets
Property, plant and equipment 78,082 68,820 78,780
Right-of-use assets 23,062 11,371 25,531
Intangible assets 224,192 235,644 229,040
Equity-accounted investees 2,815 3,069 3,354
Other investments 15 24 15
Biological assets 21,206 15,929 21,244
Non-current assets 349,372 334,857 357,964
------------------------------------------ ------ ------------ ------------- --------------
Inventories 21,343 17,197 20,947
Biological assets 17,137 19,118 17,121
Trade and other receivables 43,267 35,248 46,489
Cash and cash equivalents 52,705 56,428 39,460
------------------------------------------ ------ ------------ ------------- --------------
Current assets 134,452 127,991 124,026
------------------------------------------
Total assets 483,824 462,848 481,990
------------------------------------------ ------ ------------ ------------- --------------
Liabilities
Trade and other payables (39,001) (28,318) (46,668)
Loans and borrowings 8 (6,872) (4,209) (10,654)
Corporation tax liability (6,936) (3,919) (5,634)
Provisions (557) - (563)
------------------------------------------ ------ ------------ ------------- --------------
Current liabilities (53,366) (36,446) (63,519)
------------------------------------------ ------ ------------ ------------- --------------
Loans and borrowings 8 (110,119) (104,077) (109,737)
Other payables (895) (1,822) (911)
Deferred tax (27,159) (30,450) (28,224)
Non-current liabilities (138,173) (136,349) (138,872)
------------------------------------------ ------ ------------ ------------- --------------
Total liabilities (191,539) (172,795) (202,391)
------------------------------------------ ------ ------------ ------------- --------------
Net assets 292,285 290,053 279,599
------------------------------------------ ------ ------------ ------------- --------------
Issued capital and reserves attributable
to owners of the parent
Share capital 9 704 668 670
Additional paid-in share capital 9 420,754 399,803 400,682
Capital redemption reserve 5 5 5
Retained earnings (159,269) (142,591) (154,231)
Hedging reserve (5,895) (6,596) (5,876)
Foreign exchange reserve 27,893 31,716 30,465
Equity attributable to owners of
the parent 284,192 283,005 271,715
Non-controlling interest 8,093 7,048 7,884
------------------------------------------ ------
Total equity and reserves 292,285 290,053 279,599
------------------------------------------ ------ ------------ ------------- --------------
The accompanying notes are an integral part of this consolidated
financial information.
Consolidated Statement of Changes in Equity for the period ended
31 December 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 2021
(audited) 670 400,682 30,470 (5,876) (154,231) 271,715 7,884 279,599
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Comprehensive
income
for the period
(Loss)/profit
for the
period - - - - (5,357) (5,357) 248 (5,109)
Other
comprehensive
income - - (2,572) (19) - (2,591) (39) (2,630)
Total
comprehensive
income
for the
period - - (2,572) (19) (5,357) (7,948) 209 (7,739)
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Contributions
by and
distributions
to owners
Share issue 34 20,634 - - - 20,668 - 20,668
Share issue
costs
recognised
through
equity - (562) - - - (562) - (562)
Share-based
payment - - - - 319 319 - 319
Total
contributions
by
and
distributions
to
owners 34 20,072 - - 319 20,425 - 20,425
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Total
transactions
with
owners of the
Company 34 20,072 - - 319 20,425 - 20,425
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
As at 30
December 2021
(unaudited) 704 420,754 27,898 (5,895) (159,269) 284,192 8,093 292,285
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
As at 1
October 2020
(audited) 668 399,601 40,683 (9,651) (142,170) 289,131 6,309 295,440
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Comprehensive
income
for the period
(Loss)/profit
for the
period - - - - (717) (717) 492 (225)
Other
comprehensive
income - - (8,962) 3,055 - (5,907) 247 (5,660)
Total
comprehensive
income
for the
period - - (8,962) 3,055 (717) (6,624) 739 (5,885)
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Contributions
by and
distributions
to owners
Share issue 202 - - - 202 - 202
Share-based
payment - - - - 296 296 - 296
Total
contributions
by
and
distributions
to
owners - 202 - - 296 498 - 498
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Total
transactions
with
owners of the
Company - 202 - - 296 498 - 498
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
As at 31
December 2020
(unaudited) 668 399,803 31,721 (6,596) (142,591) 283,005 7,048 290,053
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
As at 1
October 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
Disposal of
subsidiary
with NCI - - - - - - (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 31 Sept
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.
The accompanying notes are an integral part of this consolidated
financial information.
Consolidated Statement of Cash Flows for the period ended 31
December 2021
Q1 2021
Q1 2022 FY 2021
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
--------------------------------------------- ------------- -------------- -----------
Cash flows from operating activities
Loss for the period (5,109) (225) (11,576)
Adjustments for:
Depreciation and impairment of property,
plant and equipment 2,022 1,272 5,017
Depreciation and impairment of right-of-use
assets 2,473 499 3,342
Amortisation and impairment of intangible
fixed assets 4,388 3,918 16,283
(Gain)/loss on sale of property, plant
and equipment - (68) 46
Finance income (119) (2,336) (1,442)
Finance costs 2,247 2,149 7,987
Share of loss of equity-accounted
investees, net of tax 504 611 905
Foreign exchange gains (9) (3,480) (1,800)
Share-based payment expense 319 296 830
Tax credit/(charge) 1,427 (290) 2,397
--------------------------------------------- ------------- -------------- -----------
8,143 2,346 21,989
Decrease/(increase) in trade and other
receivables 2,683 4,563 (8,178)
(Increase)/decrease in inventories (880) 1,799 (3,554)
Increase in biological assets (138) (2,038) (5,427)
(Decrease)/increase in trade and other
payables (7,687) (11,846) 5,547
Decrease in provisions (6) (10) -
--------------------------------------------- ------------- -------------- -----------
2,115 (5,186) 10,377
Income taxes paid (981) (1,241) (4,587)
--------------------------------------------- ------------- -------------- -----------
Net cash flows generated from/(used
in) operating activities 1,134 (6,427) 5,790
--------------------------------------------- ------------- -------------- -----------
Investing activities
Purchase of investments - - (578)
Receipts from disposal of investments - - 9
Purchases of property, plant and equipment (1,914) (3,424) (17,683)
Purchase of intangibles (680) (1,128) (5,038)
Proceeds from sale of fixed assets - 286 112
Interest received 19 21 88
Net cash flows used in investing activities (2,575) (4,245) (23,090)
--------------------------------------------- ------------- -------------- -----------
Financing activities
Proceeds of share issues 20,712 203 750
Share-issue costs recognised through
equity (607) - -
Acquisition of NCI - - (12)
Repayment of bank or other borrowings (638) (1,664) (3,106)
Interest and finance charges paid (1,882) (1,800) (7,699)
Repayments of lease liabilities (2,730) (689) (4,602)
--------------------------------------------- ------------- -------------- -----------
Net cash inflow/(outflow) from financing
activities 14,855 (3,950) (14,669)
--------------------------------------------- ------------- -------------- -----------
Net increase/(decrease) in cash and
cash equivalents 13,414 (14,622) (31,969)
Cash and cash equivalents at beginning
of period 39,460 71,605 71,605
Effect of movements in exchange rate (169) (555) (176)
--------------------------------------------- ------------- -------------- -----------
Cash and cash equivalents at end of
period 52,705 56,428 39,460
--------------------------------------------- ------------- -------------- -----------
The accompanying notes are an integral part of this consolidated
financial information
Unaudited notes to the quarterly financial statements for the
period ended 31 December 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 three months ended 31
December 2021 represents that of the Company and its subsidiaries
(together referred to as the 'Group').
These quarterly financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting and should be
read in conjunction with the Group's last annual consolidated
financial statements as at and for the year ended 30 September 2021
('last annual financial statements'). 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 2021 were approved by the
Directors on 29 November 2021 and will be delivered to the
Registrar of Companies. The audit report received on those accounts
was unqualified and did not make a statement under section 498 of
the Companies Act 2006 but did contain an emphasis of matter
paragraph in relation to going concern.
Going concern
The Group's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Management Report.
As at 31 December 2021 the Group had net assets of GBP292.3m (30
September 2021: GBP279.6m), including cash of GBP52.7m (30
September 2021: GBP39.5m) as set out in the consolidated balance
sheet. The Group made a loss for the quarter of GBP5.1m (year ended
30 September 2021: loss GBP11.6m).
As noted in the Management Report, we have continued to see
recovery in our end markets as the COVID-19 vaccine programmes
across the world gain momentum against the pandemic, and strong
performance particularly in our Advanced Nutrition business area,
being the segment most impacted by COVID-19 because of its exposure
to global shrimp markets, has given cause for optimism about any
lasting impact. Even with this, the Directors remain cautious of
any possibility of return of restrictions before market recovery is
fully complete and available market analysis continues to be
monitored to ensure appropriate mitigating actions can be taken
where 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, 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
Management Report, the Directors have continued to observe good
recovery in the shrimp markets in the strong performance of the
Advanced Nutrition business during the quarter. 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.
While it is difficult to predict the overall outcome and impact
of the pandemic, the group ended the first quarter with strong cash
balances of GBP52.7m after the GBP20.1 equity raise (net of costs)
in November 2021 and the Group has sufficient liquidity and
resources throughout the period under review under all of the above
scenario analysis, 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 16 months - the undrawn $15m RCF is set to expire in December
2022, and the NOK 850m bond is due to expire in June 2023. The cash
flow 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, cash resources remaining strong and
relationships with finance providers positive.
Based on their assessment, the Directors believe it remains
appropriate to prepare the financial statements on a going concern
basis. However, as disclosed in the last annual financial
statements, while the Directors remain confident that the current
facilities will be renewed or replaced in the next 16 months, the
requirement to do this represents a material uncertainty that may
cast significant doubt on the Group's ability to continue as a
going concern and therefore to continue realising its assets and
discharging its liabilities in the normal course of business. The
financial statements do not include any adjustments that would
result from the basis of preparation being inappropriate.
These financial statements have been prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006 and International Financial
Reporting Standards adopted pursuant to Regulation (EC) No
1606/2002 as it applies in the European Union. The Group reports
earnings before interest, depreciation and amortisation ('EBITDA')
and EBITDA before exceptional and acquisition related items
('Adjusted EBITDA') to enable a better understanding of the
investment being made in the Group's future growth and provide a
better measure of our underlying performance.
The preparation of financial statements in compliance with
adopted IFRSs requires the use of certain critical accounting
estimates. It also requires Group management to exercise judgement
in applying the Group's accounting policies. The areas where
significant judgements and estimates have been made in preparing
the financial statements and their effect are disclosed in Note
2.
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 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 they monitor performance at a consolidated level using
these and believe that these measures are relevant to an
understanding of the Group's financial performance (see note 10). 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 - the segment provides health products and services to
the global aquaculture market.
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.
Segmental Revenue
Q1 2022 Q1 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited)
---------------------------- --------------- --------------- -------------
Genetics 15,195 12,616 46,797
Advanced Nutrition 19,059 15,132 70,530
Health 5,777 1,293 7,832
Corporate 1,406 1,205 4,820
Inter-segment sales (1,423) (1,216) (4,917)
Total 40,014 29,030 125,062
---------------------------- --------------- --------------- -------------
Segmental Adjusted EBITDA
Q1 2022 Q1 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited)
---------------------------- --------------- --------------- -------------
Genetics 3,263 3,879 11,528
Advanced Nutrition 4,320 993 13,802
Health 547 (1,117) (2,685)
Corporate (705) (725) (3,196)
Total 7,425 3,030 19,449
---------------------------- --------------- --------------- -------------
Reconciliations of segmental information to IFRS measures
Reconciliation of Reportable Segments Adjusted EBITDA
to Loss before taxation
-------------------------------------------------------------------------------------
Q1 2022 Q1 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited)
------------------------------------ --------------- --------------- -------------
Total reportable segment Adjusted
EBITDA 8,130 3,755 22,645
Corporate Adjusted EBITDA (705) (725) (3,196)
------------------------------------ --------------- --------------- -------------
Adjusted EBITDA 7,425 3,030 19,449
Exceptional - restructuring,
disposal and acquisition related
items - (593) (184)
Depreciation and impairment (4,495) (1,771) (8,359)
Amortisation and impairment (4,388) (3,918) (16,283)
Net finance costs (2,224) 2,737 (3,802)
Loss before taxation (3,682) (515) (9,179)
------------------------------------ --------------- --------------- -------------
4. Revenue
The Group's operations and main revenue streams are those
described in its financial statements to 30 September 2021. The
Group's revenue is derived from contracts with customers.
Disaggregation of revenue
In the following tables, revenue is disaggregated by primary
geographical market and by sales of goods and services. The table
includes a reconciliation of the disaggregated revenue with the
Group's reportable segments (see note 3).
Sale of goods and provision of services
3 months ended 31 December 2021 (unaudited)
---------------- --------------------------------------------------------------------------
All figures Advanced Inter-segment
in GBP000's Genetics Nutrition Health Corporate sales Total
---------------- ---------- ------------ -------- ----------- --------------- --------
Sale of
goods 14,509 19,048 3,251 - - 36,808
Provision
of services 680 - 2,526 - - 3,206
Inter-segment
sales 6 11 - 1,406 (1,423) -
---------------- ---------- ------------ -------- ----------- --------------- --------
15,195 19,059 5,777 1,406 (1,423) 40,014
---------------- ---------- ------------ -------- ----------- --------------- --------
3 months ended 31 December 2020 (unaudited)
---------------- --------------------------------------------------------------------------
All figures Advanced Inter-segment
in GBP000's Genetics Nutrition Health Corporate sales Total
---------------- ---------- ------------ -------- ----------- --------------- --------
Sale of
goods 11,489 15,127 1,278 - - 27,894
Provision
of services 1,121 - 15 - - 1,136
Inter-segment
sales 6 5 - 1,205 (1,216) -
---------------- ---------- ------------ -------- ----------- --------------- --------
12,616 15,132 1,293 1,205 (1,216) 29,030
---------------- ---------- ------------ -------- ----------- --------------- --------
12 months ended 30 September 2021 (unaudited)
---------------- --------------------------------------------------------------------------
All figures Advanced Inter-segment
in GBP000's Genetics Nutrition Health Corporate sales Total
---------------- ---------- ------------ -------- ----------- --------------- --------
Sale of
goods 41,947 70,458 6,135 - - 118,540
Provision
of services 4,825 - 1,697 - - 6,522
Inter-segment
sales 25 72 - 4,820 (4,917) -
---------------- ---------- ------------ -------- ----------- --------------- --------
46,797 70,530 7,832 4,820 (4,917) 125,062
---------------- ---------- ------------ -------- ----------- --------------- --------
Sale of goods and provision of services (continued)
Primary geographical markets
3 months ended 31 December 2021 (unaudited)
---------------- -------------------------------------------------------------------------
All figures Advanced Inter-segment
in GBP000's Genetics Nutrition Health Corporate sales Total
---------------- ---------- ------------ -------- ----------- --------------- -------
Norway 9,679 112 4,668 - - 14,459
India 140 4,008 - - - 4,148
UK 1,957 14 88 - - 2,059
Turkey - 1,694 - - - 1,694
Greece - 1,639 - - - 1,639
Singapore - 1,138 - - - 1,138
Ecuador - 1,064 - - - 1,064
Faroe Islands 892 1 130 - - 1,023
Chile 116 - 403 - - 519
Rest of
Europe 1,771 1,303 - - - 3,074
Rest of
World 634 8,075 488 - - 9,197
Inter-segment
sales 6 11 - 1,406 (1,423) -
---------------- ---------- ------------ -------- ----------- --------------- -------
15,195 19,059 5,777 1,406 (1,423) 40,014
---------------- ---------- ------------ -------- ----------- --------------- -------
3 months ended 31 December 2020 (unaudited)
---------------- -------------------------------------------------------------------------
All figures Advanced Inter-segment
in GBP000's Genetics Nutrition Health Corporate sales Total
---------------- ---------- ------------ -------- ----------- --------------- -------
Norway 7,710 66 163 - - 7,939
India - 3,226 - - - 3,226
UK 1,430 26 235 - - 1,691
Turkey - 1,743 - - - 1,743
Greece - 1,830 - - - 1,830
Singapore - 941 - - - 941
Ecuador - 959 - - - 959
Faroe Islands 1,808 4 - - - 1,812
Chile 6 - 837 - - 843
Rest of
Europe 1,160 1,438 2 - - 2,600
Rest of
World 496 4,894 56 - - 5,446
Inter-segment
sales 6 5 - 1,205 (1,216) -
---------------- ---------- ------------ -------- ----------- --------------- -------
12,616 15,132 1,293 1,205 (1,216) 29,030
---------------- ---------- ------------ -------- ----------- --------------- -------
Primary geographical markets (continued)
12 months ended 30 September 2021 (unaudited)
---------------- --------------------------------------------------------------------------
All figures Advanced Inter-segment
in GBP000's Genetics Nutrition Health Corporate sales Total
---------------- ---------- ------------ -------- ----------- --------------- --------
Norway 27,129 570 3,689 - - 31,388
India - 12,166 3 - - 12,169
UK 3,843 117 622 - - 4,582
Turkey - 5,977 - - - 5,977
Greece 25 6,108 - - - 6,133
Singapore - 7,544 - - - 7,544
Ecuador - 4,066 - - - 4,066
Faroe Islands 5,636 18 348 - - 6,002
Chile 437 7 2,335 - - 2,779
Rest of
Europe 6,922 4,208 26 - - 11,156
Rest of
World 2,780 29,677 809 - - 33,266
Inter-segment
sales 25 72 - 4,820 (4,917) -
---------------- ---------- ------------ -------- ----------- --------------- --------
46,797 70,530 7,832 4,820 (4,917) 125,062
---------------- ---------- ------------ -------- ----------- --------------- --------
5. Exceptional - restructuring, disposal, and acquisition related items
Items that are material because of their size or nature,
non-recurring and whose significance is sufficient to warrant
separate disclosure and identification within the consolidated
financial statements are referred to as exceptional items. The
separate reporting of exceptional items helps to provide an
understanding of the Group's underlying performance.
Q1 2022 Q1 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited)
-------------------------------- ---- --------------- -------------- ------------
Acquisition related items - - (850)
Exceptional restructuring
and disposal items - 593 480
Cost in relation to disposals - - 554
-------------------------------------- -------------- -------------- ------------
Total exceptional items - 593 184
-------------------------------------- -------------- -------------- ------------
There were no exceptional items in the quarter.
6. Taxation
Q1 2022 Q1 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited)
--------------------------------------- ---- -------------- -------------- ------------
Analysis of charge in period
Current tax:
Current income tax expense on profits
for the period 2,359 755 5,383
Adjustment in respect of prior
periods 5 - 502
--------------------------------------------- -------------- -------------- ------------
Total current tax charge 2,364 755 5,885
Deferred tax:
Origination and reversal of temporary
differences (937) (1,045) (3,228)
Deferred tax movements in respect
of prior periods - - (260)
--------------------------------------------- -------------- -------------- ------------
Total deferred tax credit (937) (1,045) (3,488)
Total tax charge/(credit) 1,427 (290) 2,397
--------------------------------------------- -------------- -------------- ------------
7. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary equity holders of the Company by the
weighted average number of ordinary shares in issue during the
period.
Q1 2022 Q1 2021 FY 2021
(unaudited) (unaudited) (audited)
------------------------------------- -------------- -------------- ------------
Loss attributable to equity holders
of the parent (GBP000) (5,357) (717) (12,891)
Weighted average number of shares
in issue (thousands) 681,271 667,926 669,459
Basic loss per share (pence) (0.79) (0.11) (1.93)
------------------------------------- -------------- -------------- ------------
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 December 2021, a total of 5,782,581 potential ordinary
shares have not been included within the calculation of statutory
diluted loss per share for the period as they are anti-dilutive (30
September 2021: 4,621,300 and 31 December 2020: 2,944,955). These
potential ordinary shares could dilute earnings/loss per share in
the future.
8. Loans and borrowings
The Group's borrowing facilities include a USD 15m RCF provided
by DNB Bank ASA (50%) and HSBC UK Bank PLC (50%). At 31 December
2021 the whole facility (USD 15m) was undrawn.
9. Share capital and additional paid-in share capital
Additional
paid-in
Share share
Number Capital capital
Allotted, called up and fully GBP000 GBP000
paid
------------------------------- ------------ --------- -----------
Ordinary shares of 0.1 pence
each
Balance at 30 September 2021 670,374,484 670 400,682
Shares issued through placing
and open offer 33,401,620 34 20,069
Exercise of share options 10,910 - 3
Balance at 31 December 2021 703,787,014 704 420,754
------------------------------- ------------ --------- -----------
On 29 November 2021, the Company issued 33,401,620 new ordinary
shares of 0.1 pence each by way of a placing and subscriptions at
an issue price of 62.0 pence per share. Gross proceeds of GBP20.7m
were received for the placing and subscription shares.
Non-recurring costs of GBP0.6m were in relation to the share issues
and this has been charged to the share premium account (presented
within Additional paid-in share capital).
During the period ended 31 December 2021, the Group issued a
total of 10,910 ordinary shares of 0.1 pence each to certain
employees of the Group relating to share options, of which 3,000
were exercised at a price of 0.1 pence and 7,910 were exercised at
a price of 42.5 pence.
10. 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, and exceptional items including acquisition related
items 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 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 Before Tax is earnings before tax, amortisation
and impairment of intangibles assets excluding development costs,
and exceptional items including acquisition related items as
reconciled below.
These measures are not defined performance measures in IFRS. The
Group's definition of these measures may not be comparable with
similarly titled performance measures and disclosures by other
entities.
Reconciliation of Adjusted Operating Profit to Operating
Loss
Q1 2022 Q1 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited)
------------------------------------------- ---- -------------- -------------- ------------
Revenue 40,014 29,030 125,062
Cost of sales (20,515) (14,359) (59,477)
------------------------------------------------- -------------- -------------- ------------
Gross profit 19,499 14,671 65,585
Research and development costs (1,647) (1,745) (7,010)
Other operating costs (9,923) (9,285) (38,221)
Depreciation and impairment (4,495) (1,771) (8,359)
Amortisation of capitalised development
costs (448) - (299)
Share of loss of equity accounted
investees net of tax (504) (611) (905)
------------------------------------------------- -------------- -------------- ------------
Adjusted operating profit 2,482 1,259 10,791
Exceptional - restructuring, disposal
and acquisition related items - (593) (184)
Amortisation and impairment of intangible
assets excluding development costs (3,940) (3,918) (15,984)
------------------------------------------------- -------------- -------------- ------------
Operating loss (1,458) (3,252) (5,377)
------------------------------------------------- -------------- -------------- ------------
10. Alternative performance measures and other metrics (continued)
Reconciliation of Loss Before Taxation to Adjusted Profit Before
Tax
Q1 2022 Q1 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited)
------------------------------------------- ---- -------------- -------------- ------------
Loss before taxation (3,682) (515) (9,179)
Exceptional - restructuring, disposal
and acquisition related items - 593 184
Amortisation and impairment of intangible
assets excluding development costs 3,940 3,918 15,984
------------------------------------------------- -------------- -------------- ------------
Adjusted profit before tax 258 3,996 6,989
------------------------------------------------- -------------- -------------- ------------
Other Metrics
Q1 2022 Q1 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited)
---------------------------------------- ---- -------------- -------------- ------------
Total R&D Investment
Research and development costs 1,647 1,745 7,010
Internal capitalised development costs 627 1,060 4,813
------------
Total R&D investment 2,274 2,805 11,823
---------------------------------------------- -------------- -------------- ------------
Q1 2022 Q1 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited)
-------------------------------------- ---- --------------- --------------- -------------
Adjusted EBITDA excluding fair value
movement in biological assets
Adjusted EBITDA 7,425 3,030 19,449
Exclude fair value movement 96 (1,276) (3,323)
--------------- --------------- -------------
Adjusted EBITDA excluding fair value
movement in biological assets 7,521 1,754 16,126
-------------------------------------------- --------------- --------------- -------------
Liquidity
Following the refinancing in June 2019 a key financial covenant
is a minimum liquidity of GBP10m, defined as cash plus undrawn
facilities.
31 December
2021
All figures in GBP000's (unaudited)
--------------------------- ------------
Cash and cash equivalents 52,705
Undrawn bank facility 11,082
63,787
--------------------------- ------------
11. Net debt
Net debt is cash and cash equivalents less loans and
borrowings.
31 December 31 December 30 September
2021 2020 2021
All figures in GBP000's (unaudited) (unaudited) (audited)
--------------------------------------- ------------ ------------- --------------
Cash and cash equivalents 52,705 56,428 39,460
Loans and borrowings (excluding lease
liabilities) - current (1,592) (1,620) (1,612)
Loans and borrowings (excluding lease
liabilities) - non-current (94,170) (95,244) (94,792)
Net debt excluding lease liabilities (43,057) (40,436) (56,944)
---------------------------------------- ------------ ------------- --------------
Lease liabilities - current (5,280) (2,589) (9,042)
Lease liabilities - non-current (15,949) (8,833) (14,945)
---------------------------------------- ------------ ------------- --------------
Net debt (64,286) (51,858) (80,931)
---------------------------------------- ------------ ------------- --------------
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