TIDMBMK
RNS Number : 8547L
Benchmark Holdings PLC
18 May 2022
18 May 2022
Benchmark Holdings plc
("Benchmark", the "Company" or the "Group")
Second Quarter and Interim results for the six months ended 31
March 2022
Excellent H1 and Q2 results building on strong FY21
performance
Benchmark (LSE: BMK), the aquaculture biotechnology company,
announces its unaudited interim results for the six months ended 31
March 2022 (the "Period"). The Company also announces its unaudited
results for the three months ended 31 March 2022 in compliance with
the terms of its senior secured bond.
Financial highlights
-- Excellent H1 FY22 performance:
o +33% growth in revenues (+32% at constant exchange rate (CER))
to GBP79.2m (H1 FY21:GBP59.5m)
o 100% increase in Adjusted EBITDA (+96% CER) ) to GBP15.9m (H1
FY21: GBP7.9m)
o 149% increase (143% CER) in Adjusted EBITDA excluding fair
value movement in biological assets to GBP14.8m (H1 FY21:
GBP6.0m)
o Adjusted EBITDA margin increased to 20% (H1 FY21: 13%)
o H1 FY22 operating cash inflow GBP2.0m (H1 FY21: cash outflow
of GBP1.5m)
-- Q2 performance:
o Represents fourth consecutive quarter of year-on-year and
quarter-on-quarter Adjusted EBITDA growth; Adjusted EBITDA rose by
72% (+68% CER) to GBP8.4m (Q2 FY21: GBP4.9m)
o Loss before tax significantly narrowed to (GBP1.5m) (Q2
FY21:(GBP2.7m))
-- Net debt excluding lease liabilities GBP50.6m (30 September 2021: GBP56.9m)
o Cash and cash equivalents of GBP46.3m after cash inflow of
GBP6.0m, including GBP20.1m raised from a successful cash placing
in the period to maintain growth momentum
Operating highlights
-- Good progress on roll-out of Ectosan(R) Vet and CleanTreat(R)
o Solution continues to operate effectively delivering 99%+
efficacy and good animal welfare
o Growing customer base, third CleanTreat(R) system ordered and
development of new system configuration underway
o Marketing Authorisation for second re-use of treatment water,
increasing operational efficiency and customer appeal, was granted
post period-end
-- Continued strong momentum in Advanced Nutrition with strong
growth in revenues and earnings for all product groups and
areas.
-- Continued growth in salmon egg sales in Genetics with
contracted sales underpinning a strong outlook for the year
-- Commercialisation of specific pathogen-resistant (SPR) shrimp
progressing well with good take-up in key markets including
India
-- Sustainability: investing in solar panels at main production
facility in Thailand which will contribute significantly towards
Net Zero targets
Current trading and outlook
-- Trading in line with expectations:
o Strong outlook for salmon egg sales for remainder of the
year
o Healthy outlook for the year in Advanced Nutrition, phased
towards Q4 due to seasonality and normal shift in revenues across
quarters
o Continued effort to embed Ectosan(R) Vet and CleanTreat(R)
into customers' sea lice strategies
-- Decision to pursue a listing on Euronext Growth Oslo in H2 calendar year 2022:
o As previously announced, the Company engaged DNB Markets and
Pareto Securities as Joint Global Coordinators in connection with
its assessment of a listing in Oslo
o Intention to uplist to the Oslo Stock Exchange (Oslo Børs)
within the following twelve months
o Listing subject to favourable market conditions
GBPm % CER % CER
H1 FY22 H1 FY21 H1 FY22 Q2 FY22 Q2 FY21 Q2 FY22
79.2 39.2
Revenue +33% 59.5 +32% +29% 30.4 +26%
Adjusted
15.9 8.4
Adjusted EBITDA(1) +100% 7.9 +96% +72% 4.9 +68%
Adj. EBITDA excluding 14.8 7.3
biological asset movements +149% 6.0 +143% +74% 4.2 +69%
Adjusted Operating 4.9 2.4
Profit(2) +11% 4.4 +3% -25% 3.2 -31%
Statutory
Operating loss (2.2) (4.6) (0.7) (1.4)
Loss before tax (5.1) (3.3) (1.5) (2.7)
Basic loss per share
(p) (1.32) (0.57) (0.54) (0.46)
Net debt(3) (81.4) (56.5) (81.4) (56.5)
Net debt(3) excluding
lease liabilities (50.6) (42.5) (50.6) (42.5)
Business Area summary
GBPm %CER* % CER*
H1 FY22 H1 FY21 H1 FY22 Q2 FY22 Q2 FY21 Q2 FY22
Revenue
42.0 23.0
Advanced Nutrition +20% 35.0 +19% +15% 19.9 +12%
26.6 11.4
Genetics +20% 22.1 +18% +20% 9.5 +18%
10.7 4.9
Animal Health +358% 2.3 +359% +371% 1.0 +372%
Adjusted EBITDA(1)
11.5 7.2
Advanced Nutrition +84% 6.2 +81% +36% 5.2 +32%
5.7 2.4
Genetics -5% 6.0 -7% +15% 2.1 +14%
- Net of fair value
movements in biological 4.7 1.3
assets +16% 4.0 +12% -7% 1.4 -9%
Animal Health 0.1 (2.6) (0.5) (1.4)
*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
-- Advanced Nutrition
o H1 FY22:
-- Revenue up 20%, with higher sales in all product areas and
geographical regions reflecting success of enhanced commercial
organisation and recovering shrimp market
-- Adjusted EBITDA up 84% driven by excellent cost control and
revenue growth
-- Adjusted EBITDA margin significantly increased to 27% (H1
FY21: 18%)
o Q2 FY22
-- Revenue +15% and Adjusted EBITDA +36% translated into an
Adjusted EBITDA margin of 31% for the quarter (Q2 FY21: 26%)
o Continue to launch new technologies
-- Launch of automatic Artemia separation tool "Sep-Art Automag"
delivering sustainability benefits
o Post period end, closure of Thailand trial facility as part of
ongoing optimisation of operations
-- Genetics
o H1 FY22:
-- Revenue up 20% from prior year as a result of higher harvest
income and egg revenues
-- Adjusted EBITDA up by 16% excluding fair value movements in
biological assets
o Q2 FY22
-- Revenue 20% up from prior year
-- Adjusted EBITDA down 7% excluding fair value movements in
biological assets, reflecting ongoing investment in growth areas -
Chile, SPR shrimp and tilapia
o SPR shrimp sales ahead of expectations particularly in India
and Indonesia
o Obtained organic certification for salmon eggs in Chile
o First deliveries of eggs from new incubation centre in Iceland
showing excellent quality
o One Benchmark: the Group's cross-selling efforts delivered a
new contract post period end, with the largest sea bass/sea bream
producer in Turkey to provide genetic improvement services
-- Animal Health
o H1 FY22
-- Revenue +358% reflecting revenues from Ectosan(R) Vet and
CleanTreat(R)
-- Adjusted EBITDA showed profit of GBP0.1m (H1 FY21: (GBP2.6m)
loss)
o Q2 FY22
-- Revenue +371% reflecting revenues from Ectosan(R) Vet and
CleanTreat(R)
-- Adjusted EBITDA loss of (GBP0.5m) (Q2 FY21: GBP(1.4m)
loss)
-- Q2 FY22 adversely impacted by extreme weather conditions in
January which made it impractical to carry out Ectosan(R) Vet and
CleanTreat(R) treatments
o Progress on the roll-out of Ectosan(R) Vet and CleanTreat(R)
as mentioned above
o Post period end
-- Granted Marketing Authorisation ("MA") for re-use of
treatment water, increasing operational efficiency and customer
appeal
-- The Company submitted an MA application for Ectosan(R) Vet in
the Faroe Islands
Trond Williksen, CEO, commented:
" Benchmark delivered an excellent performance in the first half
of the year. Evidence continues of the benefits of a restructured
organisation with renewed commercial focus and financial discipline
driving growth and returns.
The Group delivered strong double digit revenue growth across
all our business areas, a doubling of Adjusted EBITDA and a
significant increase in Adjusted EBITDA margin. Q2 represented the
fourth consecutive quarter of substantial growth in the Group's
revenues and Adjusted EBITDA.
We have visible growth opportunities underpinned by existing
infrastructure and are uniquely positioned in an industry with
strong fundamentals driven by megatrends."
Details of analyst / investor call today
There will be a call at 9.00am UK time today for analysts and
investors. To register for the call please contact MHP
Communications on +44 (0)20 3128 8990 or 8742, or by email on
benchmark @mhpc.com
Enquiries
For further information, please contact:
Benchmark Holdings plc benchmark@mphc.com
Trond Williksen, CEO
Septima Maguire, CFO
Ivonne Cantu, Investor Relations
Numis (Broker and NOMAD) Tel: 020 7260 1000
James Black, Freddie Barnfield, Duncan Monteith
MHP Communications Tel: 020 3128 8990
Katie Hunt, Reg Hoare, Charlie Protheroe benchmark@mhpc.com
About Benchmark
Benchmark is a market leading aquaculture biotechnology company.
Benchmark's mission is to drive sustainability in aquaculture by
delivering products and solutions in genetics, advanced nutrition
and health which improve yield, growth and animal health and
welfare.
Through a global footprint in 26 countries and a broad portfolio
of products and solutions, Benchmark addresses many of the major
aquaculture species - salmon, shrimp, sea bass and sea bream, and
tilapia, in all the major aquaculture regions around the world.
Find out more at www.benchmarkplc.com
Management Report
The Group delivered an excellent performance in the first half
of the year reporting a 33% growth in revenue and 149% growth in
Adjusted EBITDA excluding fair value movements from biological
assets. Performance was strong across all business areas with each
business area reporting at least double digit growth in
revenues.
The commercial traction in Advanced Nutrition resulting from our
refocused commercial organisation continued, with growth in every
product area and geography. In Health the roll-out of Ectosan(R)
Vet and CleanTreat(R) resulted in a significant increase in
revenues and profit. Genetics continued to execute its strategy of
organic growth in well established markets achieving good revenue
growth, while expanding and investing in opex in new areas such as
SPR shrimp, salmon in Chile and tilapia.
Operating costs in H1 FY22 were GBP19.9m, a 6% increase from the
prior year due to higher activity levels, however the increase was
significantly below revenue growth, demonstrating the operational
leverage in the business alongside the well embedded cost
discipline across the Group.
R&D expenses at GBP3.2m, were 11% below H1 FY21. Total
R&D investment including capitalised development costs was
GBP4.6m, 21% below the prior year (H1 FY21: GBP5.8m) reflecting the
transition to the commercial phase of Ectosan(R) Vet and
CleanTreat(R).
Adjusted EBITDA excluding fair value movement from biological
assets was GBP14.8m, +149% up from GBP6.0m in H1 FY21 as a result
of higher revenues, increased asset utilisation and ongoing cost
control. As a result, the Group achieved an Adjusted EBITDA margin
of 20% (H1 FY21: 13%). Depreciation and amortisation increased from
the comparative period last year to GBP18.9m (H1 FY21: GBP11.7m)
due to the depreciation of the Cleantreat(R) units and 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 in the period by
more than half to (GBP2.2m) in the period (H1 FY21: operating loss
of (GBP4.6m)).
Net finance costs for H1 FY22 were GBP3.0m (H1 FY21: income
GBP1.4m). The main year on year movements were lower gains on fair
value of financial instruments and forex gains of GBP0.6m (H1 FY21:
GBP2.4m) and GBP0.5m (H1 FY21: 3.3m) respectively, but there was
also a reduction in borrowing costs on the NOK bond of GBP0.4m due
to the higher interest rates suffered in the previous year before
the NOK bond was listed. These were offset by higher interest
charges on right of use assets from the two CleanTreat vessels in
operation this year. This left loss before tax in H1 FY22 GBP1.8m
higher than the previous year at GBP5.1m (H1 FY21: GBP3.3m).
Although loss before tax is higher in H1 FY22 than H1 FY21, the
tax charge has increased to GBP3.6m (H1 FY21: GBP0.2m credit) due
to higher profits in the Advanced Nutrition business area in
territories where there is no opportunity for losses to be
utilised. Loss after tax was GBP8.8m (H1 FY21: GBP3.1m)
The Group reported a net operating cash inflow of GBP2.0m after
an increase in working capital of GBP13.5m related to the growth of
sales and increase of associated inventory levels in Ectosan(R) Vet
and Advanced Nutrition, and tax payments of GBP3.0m. Net cash
outflow from investing activities was GBP6.6m of which PPE capex
was GBP5.1m primarily in Genetics (GBP2.8m) and Health (GBP1.7m)
and capitalised R&D was GBP1.5m (mainly in SPR Shrimp). Net
cash inflow from financing activities of GBP10.7m, includes an
equity raise of (net) GBP20.1m, GBP4.8m of lease payments and the
NOK bond coupon payments. Our cash position at the end of the
period was GBP46.3m.
Advanced Nutrition
Advanced Nutrition delivered an excellent result in the first
half of the year continuing the strong performance in FY21 and in
Q1 FY22, with revenues up 20% and Adjusted EBITDA increasing by
84%. All product areas and geographic regions achieved growth -
Artemia (+19%), Diets (+18%) and Health (+11%). By region the
Americas were up 23%, Asia +7% and Europe +9%. The shrimp markets
continue to show recovery creating a positive outlook for this area
of our business.
With the growth in sales, asset utilisation increased, driving
operational leverage and leading to Adjusted EBITDA of GBP11.5m (H1
FY21: GBP6.2m), and an Adjusted EBITDA margin of 27% (H1 FY21:
18%).
During the period we completed an energy efficiency study at our
main production facility in Thailand identifying significant
opportunities to reduce our carbon footprint towards our Net Zero
targets. As a result we took the decision to invest in a solar
panel installation which is expected to significantly reduce the
carbon footprint of the facility once complete.
Post period end, as part of our ongoing efforts to optimise our
operations, we closed our trial facilities in Thailand, which
increases our flexibility and removes the investment associated
with maintaining state of the art facilities.
Genetics
Genetics delivered a good performance in the first half of the
year with revenues of GBP26.6m, 20% above the prior year (H1 FY21:
GBP22.1m) driven by higher harvest revenues from our broodstock
licence, as well as higher revenues from salmon eggs and SPR
shrimp.
Revenues from salmon eggs increased by 2% while SPR shrimp
revenues grew more than three-fold reflecting the success of our
commercial launch post test market in FY21. SPR shrimp sales were
ahead of expectations particularly in India and Indonesia. We won
new genetics services contracts with major sea bass/bream and
tilapia producers. We completed the expansion of our Tilapia
facility in Miami, following some delays due to global supply
shortages, meaning that we now have the infrastructure in place to
produce tilapia year-round.
Adjusted EBITDA for H1 FY22 excluding fair value movements of
biological assets was GBP4.7m, 16% ahead of the prior year (H1
FY21: GBP4.0m). Including fair value movements Adjusted EBITDA for
the first half was GBP5.7m, 5% below the same period last year.
We continued to make progress in our growth areas with the first
deliveries of salmon eggs from the new incubation centre in Iceland
showing excellent quality. We completed expansion projects in the
US for our SPR shrimp and tilapia. 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.
Looking forward to the second half of FY22 we already have
contracted sales for salmon eggs underpinning a strong FY22
performance.
Health
Revenues in H1 FY22 increased to GBP10.7m (H1 FY21: GBP2.3m) due
to sales from Ectosan(R) Vet and CleanTreat(R) which were launched
in Q4 FY21. Salmosan sales were 7% below the prior year primarily
as a result of lower sales in Chile offset by improved sales in
Canada. Adjusted EBITDA was a profit of GBP0.1m (H1 FY21: loss of
GBP(2.6)m) as a result of the higher revenues. GBP2.2m of the
revenue in the period (H1 FY21: GBPnil) was derived from recharging
vessel and fuel costs associated with the Ectosan(R) Vet and
CleanTreat(R) operations.
Treatments performed with Ectosan(R) Vet and CleanTreat(R)
reported efficacy above 99% and the period for the fish to return
to feed was nil days, an important indicator of animal welfare. The
roll-out of our transformational sea lice solutions is progressing,
with an increasing number of customers and growing customer
interest. This led us to move ahead with commencing the build of a
third CleanTreat(R) system. In addition we are exploring
alternative system configurations tailored to specific customer
needs.
Post period end, on 3rd May, we announced the grant of a
variation to the Marketing Authorisation of Ectosan(R) in Norway,
which enables the re-use of treatment water on a second batch of
fish. This is an important step towards our goal of optimising the
efficiency of our treatments, improving the appeal of the solution
to more customers. Further trials to support the multiple re-use of
treatment water are ongoing.
Q2 FY22 commentary
The Group reported revenue of GBP39.2m, 29% above prior year of
GBP30.4m. This was driven by revenue growth in all business areas
with Advanced Nutrition reporting revenue +15%, Genetics +20% and
Health +371% higher than the comparative period in the prior
year.
Adjusted EBITDA excluding fair value uplift from biological
assets was GBP7.3m, 74% ahead of the prior year and 69% higher on a
constant currency basis (Q2 FY21: GBP4.2m), reflecting higher
revenues, operational leverage and good cost control. By business
area, Advanced Nutrition reported an increase in Adjusted EBITDA of
36%, and Health was up +64%, while Genetics was -7% down. Including
fair value movements from biological assets Genetics was up
16%.
Operating costs of GBP10m were 6% above last year (Q2 FY21:
9.4m) primarily driven by an increase in Health associated with the
launch and roll-out of Ectosan(R) Vet and CleanTreat(R). R&D
expenses of GBP1.6m were 11% below the prior year (Q2 FY21:
GBP1.8m) and represented 4% of Group revenues (Q2 FY21: 6%). After
an increase in depreciation and amortisation to GBP10.0m (Q2 FY21:
GBP6.0m), Group operating loss halved to GBP0.7m (Q2
FY21:GBP1.4m).
Net finance costs of GBP0.8m were lower than the comparative
period (Q2 FY21: GBP1.4m) due to lower interest rates following the
listing of the NOK bond in the prior year and a higher gain on the
fair value of financial instruments, offset by lower FX gains in Q2
FY22, leaving loss before tax at GBP1.5m for the quarter (Q2 FY21:
GBP2.7m).
The tax charge of GBP2.2m was higher than last year (Q2 FY21:
GBP0.1m) due to higher profits in Advanced Nutrition in the quarter
in territories where no loss relief was available. Loss after tax
for the quarter was GBP3.7m (Q2 FY21: GBP2.8m).
Oslo Listing
As previously announced, the Company engaged DNB Markets and
Pareto Securities as Joint Global Coordinators in connection with
its assessment of a potential listing in Oslo. The Company has
decided to pursue a listing on Euronext Growth Oslo (operated by
the Oslo Stock Exchange) during the second half of the calendar
year (subject to favourable market conditions). Although no final
decision has been made, the Company then has an intention to uplist
to the Oslo Børs Stock Exchange within the following twelve
months.
Outlook
The Group had an excellent start to the year and is trading in
line with market expectations.
Our fundamentals are strong and our opportunities are
significant. Aquaculture is a growth industry, supported by robust
megatrends with an increasing focus on sustainability challenges as
it expands. The answer to sustainability lies in innovation -
bringing forward new sustainable solutions. As a focused
aquaculture biotechnology company, Benchmark is well positioned to
play an important role, helping to improve sustainability across
the aquaculture value chain.
Medium term objectives
In 2020, following a management change, the Group completed a
restructuring programme to reduce the cash burn, right-size the
cost base and strengthen the Group's balance sheet, moving the
Group from an R&D investment phase towards profitability and
returns. In addition, the new management team put in place a new
commercial culture and performance framework, as well as financial
processes to control costs and investments. This has resulted in
consistent and significant growth in Revenue and Adjusted EBITDA,
and an improvement in cashflow management, narrowing the Group's
net loss. This positive momentum is anchored by solid foundations
with two well established, market leading profitable business units
with good financial visibility, and significant growth
opportunities which enable the Group to set medium term financial
objectives that would translate into attractive cash generation and
returns.
The Group's medium term objectives are to achieve the following
within three to five years:
-- to generate revenue growth of 15%-18% per annum
-- to deliver an Adjusted EBITDA margin ranging from 25%-30%.
-- to deliver cashflow conversion ratio(1) of 70-80% from
Adjusted EBITDA, creating the ability for significant organic
deleveraging of the business by reducing net debt while increasing
Adjusted EBITDA.
-- to produce free cash flow(2) as a percentage of sales of between 10% and 15%.
-- to earn an Adjusted Return on Capital Employed(3) of more
than 15% within three to five years.
Our medium term Group objectives are underpinned by objectives
of 10%-15% annual revenue growth and 22-27% Adjusted EBITDA margin
in Genetics and 7%-10% annual revenue growth and 20-25% Adjusted
EBITDA margin in Advanced Nutrition. These are two well
established, market leading businesses which provide good financial
visibility. Growth in the Company's third business unit, Health, is
driven by the roll-out of its sea lice solution Ectosan(R) Vet and
CleanTreat(R) from which the Company aims to generate GBP50 to
GBP75m annual revenue within three to five years. Adjusted EBITDA
margin in this area is dependent on a number of factors including
obtaining an extended MA for multiple re-use of treatment water,
geographic expansion and on embedding the solution in our
customers' infrastructure through tailored configuration. The Group
aims to achieve a 60% Adjusted EBITDA margin in Health when
Ectosan(R) Vet and CleanTreat(R) are fully commercialised in the
outer years of the period.
1. Cash generated from operations after working capital and taxes as percentage of Adj. EBITDA
2. Free cash flow: Net cash from operating activities less capex
and lease payments (excluding cash interest)
3. Adj. ROCE calculated as adjusted operating profit as a % of
average capital employed excluding goodwill and acquired intangible
assets
Consolidated Income Statement for period ended 31 March 2022
YTD Q2 YTD Q2
Q2 2022 Q2 2021 2022 2021 FY 2021
All figures in GBP000's Notes (unaudited) (unaudited) (unaudited) (unaudited) (audited)
Revenue 4 39,233 30,435 79,247 59,465 125,062
Cost of sales (19,210) (14,263) (39,725) (28,622) (59,477)
Gross profit 20,023 16,172 39,522 30,843 65,585
Research and development
costs (1,590) (1,837) (3,237) (3,582) (7,010)
Other operating costs (9,984) (9,411) (19,907) (18,696) (38,221)
Share of loss of equity-accounted
investees, net of tax (24) (30) (528) (641) (905)
Adjusted EBITDA(2) 8,425 4,894 15,850 7,924 19,449
Exceptional - restructuring,
disposal and acquisition
related items 5 908 (275) 908 (868) (184)
EBITDA(1) 9,333 4,619 16,758 7,056 19,265
Depreciation and impairment (5,557) (1,723) (10,052) (3,494) (8,359)
Amortisation and impairment (4,484) (4,260) (8,872) (8,178) (16,283)
Operating loss (708) (1,364) (2,166) (4,616) (5,377)
Finance cost (2,684) (2,466) (4,747) (4,395) (7,987)
Finance income 1,930 1,092 1,769 5,758 4,185
Loss before taxation (1,462) (2,738) (5,144) (3,253) (9,179)
Tax on loss 6 (2,189) (104) (3,616) 186 (2,397)
Loss for the period (3,651) (2,842) (8,760) (3,067) (11,576)
Loss for the period
attributable to:
- Owners of the parent (3,775) (3,101) (9,132) (3,818) (12,891)
- Non-controlling interest 124 259 372 751 1,315
(3,651) (2,842) (8,760) (3,067) (11,576)
Earnings per share
Basic loss per share
(pence) 7 (0.54) (0.46) (1.32) (0.57) (1.93)
Diluted loss per share
(pence) 7 (0.54) (0.46) (1.32) (0.57) (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 the period
ended 31 March 2022
YTD Q2 YTD Q2
Q2 2022 Q2 2021 2022 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
Loss for the period (3,651) (2,842) (8,760) (3,067) (11,576)
Other comprehensive income
Items that are or may be
reclassified subsequently
to profit or loss
Foreign exchange translation
differences 9,812 (4,955) 7,201 (13,669) (9,929)
Cash flow hedges - changes
in fair value 3,082 (77) 2,948 2,821 3,054
Cash flow hedges - reclassified
to profit or loss 63 132 178 288 709
Total comprehensive income
for the period 9,306 (7,742) 1,567 (13,627) (17,742)
Total comprehensive income
for the period attributable
to:
- Owners of the parent 8,784 (8,033) 836 (14,657) (19,329)
- Non-controlling interest 522 291 731 1,030 1,587
9,306 (7,742) 1,567 (13,627) (17,742)
The accompanying notes are an integral part of this consolidated
financial information.
Consolidated Balance Sheet as at 31 March 2022
31 March 31 March 30 September
2022 2021 2021
All figures in GBP000's Notes (unaudited) (unaudited) (audited)
Assets
Property, plant and equipment 81,568 70,160 78,780
Right-of-use assets 31,360 14,102 25,531
Intangible assets 226,912 230,739 229,040
Equity-accounted investees 2,821 3,271 3,354
Other investments 15 15 15
Biological and agricultural assets 17,089 15,293 21,244
Non-current assets 359,765 333,580 357,964
Inventories 22,140 19,469 20,947
Biological and agricultural assets 24,294 21,111 17,121
Trade and other receivables 47,275 31,008 46,498
Cash and cash equivalents 46,294 53,630 39,460
Current assets 140,003 125,218 124,026
Total assets 499,768 458,798 481,990
Liabilities
Trade and other payables (33,284) (29,960) (46,668)
Loans and borrowings 8 (13,546) (7,279) (10,654)
Corporation tax liability (7,733) (3,971) (5,634)
Provisions (551) - (563)
Current liabilities (55,114) (41,210) (63,519)
Loans and borrowings 8 (114,185) (102,867) (109,737)
Other payables (936) (1,787) (911)
Deferred tax (27,524) (29,442) (28,224)
Non-current liabilities (142,645) (134,096) (138,872)
Total liabilities (197,759) (175,306) (202,391)
Net assets 302,009 283,492 279,599
Issued capital and reserves attributable
to owners of the parent
Share capital 9 704 670 670
Additional paid-in share capital 9 420,824 400,574 400,682
Capital redemption reserve 5 5 5
Retained earnings (162,696) (145,284) (154,231)
Hedging reserve (2,750) (6,543) (5,876)
Foreign exchange reserve 37,307 26,731 30,465
Equity attributable to owners of
the parent 293,394 276,153 271,715
Non-controlling interest 8,615 7,339 7,884
Total equity and reserves 302,009 283,492 279,599
The accompanying notes are an integral part of this consolidated
financial information.
Consolidated Statement of Changes in Equity for the period ended 31 March 2022
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 - - - - (9,132) (9,132) 372 (8,760)
Other
comprehensive
income - - 6,842 3,126 - 9,968 359 10,327
Total
comprehensive
income for the
period - - 6,842 3,126 (9,132) 836 731 1,567
Contributions by
and
distributions to
owners
Share issue 34 20,704 - - - 20,738 - 20,738
Share issue costs
recognised
through equity - (562) - - - (562) - (562)
Share-based
payment - - - - 667 667 - 667
Total
contributions
by and
distributions
to owners 34 20,142 - - 667 20,843 - 20,843
Total
transactions
with
owners of the
Company 34 20,142 - - 667 20,843 - 20,843
As at 30 March
2022
(unaudited) 704 420,824 37,312 (2,750) (162,696) 293,394 8,615 302,009
As at 1 October
2020
(audited) 668 399,601 40,683 (9,651) (142,170) 289,131 6,309 295,440
Comprehensive
income
for the period
(Loss)/profit for
the
period - - - - (3,818) (3,818) 751 (3,067)
Other
comprehensive
income - - (13,947) 3,108 - (10,839) 279 (10,560)
Total
comprehensive
income for the
period - - (13,947) 3,108 (3,818) (14,657) 1,030 (13,627)
Contributions by
and
distributions to
owners
Share issue 2 973 - - - 975 - 975
Share-based
payment - - - - 704 704 - 704
Total
contributions
by and
distributions
to owners 2 973 - - 704 1,679 - 1,679
Total
transactions
with
owners of the
Company 2 973 - - 704 1,679 - 1,679
As at 31 March
2021
(unaudited) 670 400,574 26,736 (6,543) (145,284) 276,153 7,339 283,492
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
Acquisition of
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 30 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 March 2022
Q2 2021
Q2 2022 FY 2021
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Cash flows from operating activities
Loss for the period (8,760) (3,067) (11,576)
Adjustments for:
Depreciation and impairment of property,
plant and equipment 4,187 2,457 5,017
Depreciation and impairment of right-of-use
assets 5,865 1,037 3,342
Amortisation and impairment of intangible
fixed assets 8,872 8,178 16,283
Loss on sale of property, plant and
equipment - - 46
Gain on sale of other investments - (91) -
Finance income (225) (43) (1,442)
Finance costs 3,714 1,976 7,987
Increase in fair value of contingent
consideration receivable (909) - -
Share of loss of equity-accounted
investees, net of tax 528 641 905
Foreign exchange losses 841 (3,809) (1,800)
Share-based payment expense 667 704 830
Tax credit 3,616 (186) 2,397
18,396 7,797 21,989
Decrease/(increase) in trade and other
receivables 108 8,037 (8,178)
Increase in inventories (1,610) (1,424) (3,554)
Increase in biological and agricultural
assets (1,635) (3,517) (5,427)
(Decrease)/increase in trade and other
payables (10,317) (10,327) 5,547
Decrease in provisions (12) (22) -
4,930 544 10,377
Income taxes paid (2,975) (2,025) (4,587)
Net cash flows generated from/(used
in) operating activities 1,955 (1,481) 5,790
Investing activities
Purchase of investments (48) (247) (578)
Receipts from disposal of investments - 99 9
Purchases of property, plant and equipment (5,084) (6,632) (17,683)
Purchase of intangibles (1,523) (2,337) (5,038)
Proceeds from sale of fixed assets 3 19 112
Interest received 25 42 88
Net cash flows used in investing
activities (6,627) (9,056) (23,090)
Financing activities
Proceeds of share issues 20,782 641 750
Share-issue costs recognised through
equity (607) - -
Acquisition of NCI - - (12)
Repayment of bank or other borrowings (939) (2,405) (3,106)
Interest and finance charges paid (3,757) (3,892) (7,699)
Repayments of lease liabilities (4,769) (1,114) (4,602)
Net cash inflow/(outflow) from financing
activities 10,710 (6,770) (14,669)
Net increase/(decrease) in cash and
cash equivalents 6,038 (17,307) (31,969)
Cash and cash equivalents at beginning
of period 39,460 71,605 71,605
Effect of movements in exchange rate 796 (668) (176)
Cash and cash equivalents at end
of period 46,294 53,630 39,460
The accompanying notes are an integral part of this consolidated
financial information.
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 six months ended 31 March
2022 represents that of the Company and its subsidiaries (together
referred to as the 'Group').
These interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting and should be
read in conjunction with the Group's 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 have been delivered to the
Registrar of Companies. The audit report received on those accounts
was unqualified and did not make a statement under section 498 of
the Companies Act 2006 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 March 2022 the Group had net assets of GBP302.0m (30
September 2021: GBP279.6m), including cash of GBP46.3m (30
September 2021: GBP39.5m) as set out in the consolidated balance
sheet. The Group made a loss for the six months of GBP8.8m (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 GBP43.6m after the GBP20.1m equity raise (net of costs)
in Q1 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 13
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 the refinancing process 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 13 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.
1. Basis of preparation (continued)
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 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.
3. Segment information (continued)
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
YTD Q2 YTD Q2
Q2 2022 Q2 2021 2022 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
Genetics 11,408 9,514 26,603 22,130 46,797
Advanced Nutrition 22,974 19,895 42,033 35,027 70,530
Health 4,916 1,044 10,693 2,337 7,832
Corporate 1,406 1,199 2,812 2,404 4,820
Inter-segment sales (1,471) (1,217) (2,894) (2,433) (4,917)
Total 39,233 30,435 79,247 59,465 125,062
Segmental Adjusted EBITDA
YTD Q2 YTD Q2
Q2 2022 Q2 2021 2022 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
Genetics 2,428 2,108 5,691 5,987 11,528
Advanced Nutrition 7,154 5,247 11,474 6,240 13,802
Health (454) (1,446) 93 (2,563) (2,685)
Corporate (703) (1,015) (1,408) (1,740) (3,196)
Total 8,425 4,894 15,850 7,924 19,449
Reconciliations of segmental information to IFRS measures
Reconciliation of Reportable Segments Adjusted EBITDA to Loss before
taxation
YTD Q2 YTD Q2
Q2 2022 Q2 2021 2022 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
Total reportable segment
Adjusted EBITDA 9,128 5,909 17,258 9,664 22,645
Corporate Adjusted EBITDA (703) (1,015) (1,408) (1,740) (3,196)
Adjusted EBITDA 8,425 4,894 15,850 7,924 19,449
Exceptional - restructuring,
disposal and acquisition related
items 908 (275) 908 (868) (184)
Depreciation and impairment (5,557) (1,723) (10,052) (3,494) (8,359)
Amortisation and impairment (4,484) (4,260) (8,872) (8,178) (16,283)
Net finance costs (754) (1,374) (2,978) 1,363 (3,802)
Loss before taxation (1,462) (2,738) (5,144) (3,253) (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 March 2022 (unaudited)
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
Sale of goods 9,872 22,945 2,594 - - 35,411
Provision of services 1,500 - 2,322 - - 3,822
Inter-segment sales 36 29 - 1,406 (1,471) -
11,408 22,974 4,916 1,406 (1,471) 39,233
3 months ended 31 March 2021 (unaudited)
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
Sale of goods 8,542 19,883 1,039 - - 29,464
Provision of services 966 - 5 - - 971
Inter-segment sales 6 12 - 1,199 (1,217) -
9,514 19,895 1,044 1,199 (1,217) 30,435
6 months ended 31 March 2022 (unaudited)
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
Sale of goods 24,381 41,993 5,845 - - 72,219
Provision of services 2,180 - 4,848 - - 7,028
Inter-segment sales 42 40 - 2,812 (2,894) -
26,603 42,033 10,693 2,812 (2,894) 79,247
6 months ended 31 March 2021 (unaudited)
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
Sale of goods 20,031 35,010 2,317 - - 57,358
Provision of services 2,087 - 20 - - 2,107
Inter-segment sales 12 17 - 2,404 (2,433) -
22,130 35,027 2,337 2,404 (2,433) 59,465
4. Revenue (continued)
Sale of goods and provision of services (continued)
Primary geographical markets
12 months ended 30 September 2021 (audited)
Advanced Inter-segment
All figures 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
3 months ended 31 March 2022 (unaudited)
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
Norway 6,115 211 4,288 - - 10,614
India 260 3,711 - - - 3,971
Singapore - 3,013 - - - 3,013
Greece - 1,832 - - - 1,832
Faroe Islands 1,709 5 147 - - 1,861
Turkey - 2,238 - - - 2,238
UK 899 14 30 - - 943
Ecuador - 1,227 - - - 1,227
Chile 224 5 150 - - 379
Rest of Europe 1,590 1,278 - - - 2,868
Rest of World 575 9,411 301 - - 10,287
Inter-segment sales 36 29 - 1,406 (1,471) -
11,408 22,974 4,916 1,406 (1,471) 39,233
3 months ended 31 March 2021 (unaudited)
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
Norway 4,553 191 272 - - 5,016
India - 3,041 - - - 3,041
Singapore - 2,409 - - - 2,409
Greece 25 1,642 - - - 1,667
Faroe Islands 1,563 5 - - - 1,568
Turkey - 1,702 - - - 1,702
UK 1,226 40 (220) - - 1,046
Ecuador - 1,041 - - - 1,041
Chile 31 4 598 - - 633
Rest of Europe 1,590 1,362 24 - - 2,976
Rest of World 520 8,446 370 - - 9,336
Inter-segment sales 6 12 - 1,199 (1,217) -
9,514 19,895 1,044 1,199 (1,217) 30,435
4. Revenue (continued)
Primary geographical markets (continued)
6 months ended 31 March 2022 (unaudited)
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
Norway 15,794 323 8,956 - - 25,073
India 400 7,719 - - - 8,119
Singapore - 4,151 - - - 4,151
Greece - 3,471 - - - 3,471
Faroe Islands 2,601 6 277 - - 2,884
Turkey - 3,932 - - - 3,932
UK 2,856 28 118 - - 3,002
Ecuador - 2,291 - - - 2,291
Chile 340 5 553 - - 898
Rest of Europe 3,361 2,581 - - - 5,942
Rest of World 1,209 17,486 789 - - 19,484
Inter-segment sales 42 40 - 2,812 (2,894) -
26,603 42,033 10,693 2,812 (2,894) 79,247
6 months ended 31 March 2021 (unaudited)
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
Norway 12,263 257 435 - - 12,955
India - 6,267 - - - 6,267
Singapore - 3,350 - - - 3,350
Greece 25 3,472 - - - 3,497
Faroe Islands 3,371 9 - - - 3,380
Turkey - 3,445 - - - 3,445
UK 2,656 66 15 - - 2,737
Ecuador - 2,000 - - - 2,000
Chile 37 4 1,435 - - 1,476
Rest of Europe 2,750 2,800 26 - - 5,576
Rest of World 1,016 13,340 426 - - 14,782
Inter-segment sales 12 17 - 2,404 (2,433) -
22,130 35,027 2,337 2,404 (2,433) 59,465
4. Revenue (continued)
Primary geographical markets (continued)
12 months ended 30 September 2021 (audited)
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
Norway 27,129 570 3,689 - - 31,388
India - 12,166 3 - - 12,169
Singapore - 7,544 - - - 7,544
Greece 25 6,108 - - - 6,133
Faroe Islands 5,636 18 348 - - 6,002
Turkey - 5,977 - - - 5,977
UK 3,843 117 622 - - 4,582
Ecuador - 4,066 - - - 4,066
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.
YTD YTD
Q2 2022 Q2 2021 Q2 2022 Q2 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
Acquisition related items - - - - (850)
Exceptional restructuring
and disposal items (908) 275 (908) 868 1,034
Total exceptional items (908) 275 (908) 868 184
Exceptional restructuring and disposal items in Q2 2022 is a
credit of GBP909,000 (YTD Q2 2022: GBP909,000) relating to an
increase in the fair value of contingent consideration to be
received following the disposal of Improve International Limited
and its subsidiaries on 23 June 2020.
6. Taxation
YTD Q2 YTD Q2
Q2 2022 Q2 2021 2022 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
Analysis of charge in period
Current tax:
Current income tax expense
on profits for the period 2,642 875 5,007 1,631 5,383
Adjustment in respect of prior
periods - - - - 502
Total current tax charge 2,642 875 5,007 1,631 5,885
Deferred tax:
Origination and reversal of
temporary differences (453) (506) (1,391) (1,552) (3,228)
Deferred tax movements in
respect of prior periods - (265) - (265) (260)
Total deferred tax credit (453) (771) (1,391) (1,817) (3,488)
Total tax charge/(credit) 2,189 104 3,616 (186) 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.
YTD YTD
Q2 2022 Q2 2021 Q2 2022 Q2 2021 FY 2021
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
Loss attributable to equity
holders of the parent (GBP000) (3,775) (3,101) (9,132) (3,818) (12,891)
Weighted average number of shares
in issue (thousands) 703,926 669,425 692,474 668,667 669,459
Basic loss per share (pence) (0.54) (0.46) (1.32) (0.57) (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 March 2022 , a total of 5,184,054 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 March 2021: 3,581,820 ). 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 March 2022
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 paid GBP000 GBP000
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 184,694 - 73
Balance at 31 March 2022 703,960,798 704 420,824
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 March 2022, the Group issued a total
of 184,694 ordinary shares of 0.1 pence each to certain employees
of the Group relating to share options, of which 12,509 were
exercised at a price of 0.1 pence and 172,185 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
YTD YTD
Q2 2022 Q2 2021 Q2 2022 Q2 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
Revenue 39,233 30,435 79,247 59,465 125,062
Cost of sales (19,210) (14,263) (39,725) (28,622) (59,477)
Gross profit 20,023 16,172 39,522 30,843 65,585
Research and development costs (1,590) (1,837) (3,237) (3,582) (7,010)
Other operating costs (9,984) (9,411) (19,907) (18,696) (38,221)
Depreciation and impairment (5,557) (1,723) (10,052) (3,494) (8,359)
Amortisation of capitalised
development costs (448) - (896) - (299)
Share of loss of equity accounted
investees net of tax (24) (30) (528) (641) (905)
Adjusted operating profit 2,420 3,171 4,902 4,430 10,791
Exceptional - restructuring,
disposal and acquisition related
items 908 (275) 908 (868) (184)
Amortisation and impairment
of intangible assets excluding
development costs (4,036) (4,260) (7,976) (8,178) (15,984)
Operating loss (708) (1,364) (2,166) (4,616) (5,377)
10. Alternative performance measures and other metrics
(continued)
Reconciliation of Loss Before Taxation to Adjusted Profit Before
Tax
YTD YTD
Q2 2022 Q2 2021 Q2 2022 Q2 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
Loss before taxation (1,462) (2,738) (5,144) (3,253) (9,179)
Exceptional - restructuring,
disposal and acquisition
related items (908) 275 (908) 868 184
Amortisation and impairment
of intangible assets excluding
development costs 4,036 4,260 7,976 8,178 15,984
Adjusted profit before tax 1,666 1,797 1,924 5,793 6,989
Other Metrics
YTD YTD
Q2 2022 Q2 2021 Q2 2022 Q2 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
Total R&D Investment
Research and development costs 1,590 1,837 3,237 3,582 7,010
Internal capitalised development
costs 777 1,121 1,404 2,181 4,813
Total R&D investment 2,367 2,958 4,641 5,763 11,823
YTD YTD
Q2 2022 Q2 2021 Q2 2022 Q2 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
Adjusted EBITDA excluding
fair value movement in biological
assets
Adjusted EBITDA 8,425 4,894 15,850 7,924 19,449
Exclude fair value movement (1,101) (682) (1,005) (1,958) (3,323)
Adjusted EBITDA excluding
fair value movement in biological
assets 7,324 4,212 14,845 5,966 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 March
2022
All figures in GBP000's (unaudited)
Cash and cash equivalents 46,294
Undrawn bank facility 11,405
57,699
11. Net debt
Net debt is cash and cash equivalents less loans and
borrowings.
31 March 31 March 30 September
2022 2021 2021
All figures in GBP000's (unaudited) (unaudited) (audited)
Cash and cash equivalents 46,294 53,630 39,460
Loans and borrowings (excluding lease
liabilities) - current (1,647) (1,517) (1,612)
Loans and borrowings (excluding lease
liabilities) - non-current (95,270) (94,639) (94,792)
Net debt excluding lease liabilities (50,623) (42,526) (56,944)
Lease liabilities - current (11,899) (5,762) (9,042)
Lease liabilities - non-current (18,915) (8,228) (14,945)
Net debt (81,437) (56,516) (80,931)
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR SFUFUWEESEFI
(END) Dow Jones Newswires
May 18, 2022 10:07 ET (14:07 GMT)
Benchmark (LSE:BMK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Benchmark (LSE:BMK)
Historical Stock Chart
From Jul 2023 to Jul 2024