TIDMBMK
RNS Number : 1445X
Benchmark Holdings PLC
25 August 2022
25 August 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")
Q3 Results
(Three months ended 30 June 2022)
Continued business momentum and growth in Adjusted EBITDA
Trading in-line with expectations for FY22
Transition to new strategic model for Ectosan(R) Vet and
CleanTreat(R)
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 three months ended 30 June 2022 (the
"Period"), which constitutes the third quarter for the fiscal year
("FY") 2022 . All Q3 FY22, Q3 FY21, Q3 YTD FY22 and Q3 YTD FY21
figures quoted in this announcement are based on unaudited
accounts.
Financial highlights - Fifth consecutive quarter of year-on-year
and quarter-on-quarter growth in Adjusted EBITDA on a rolling
twelve month basis
-- Q3 FY22 revenues were GBP36.3m, 28% ahead of the prior year (+20% CER)
o Genetics delivered an excellent performance with revenues 50%
above Q3 FY21 driven primarily by higher sales of salmon eggs and
harvest revenues. Q3 YTD FY22 revenues up 29%
o Advanced Nutrition reported revenues 5% above the prior year
in-line with anticipated seasonal pattern. Q3 YTD FY22 revenues up
15%
o Health revenues were 213% above Q3 2021 driven by Ectosan(R)
Vet and CleanTreat(R) revenues. Q3 YTD FY22 revenues up 308%
-- Q3 FY22 Adjusted EBITDA excluding fair value movements from
biological assets increased 26% (+18% CER) as a result of higher
revenues, higher asset utilisation and cost discipline
o Adjusted EBITDA margin of 14% (excluding fair value movements
from biological assets) for the Period
-- Q3 YTD FY22, Group revenues were 32% higher (+28% CER) and
Adjusted EBITDA excluding fair value movements from biological
assets was 99% higher (+92% CER) than the prior year
o Increase in Adjusted EBITDA margin (excluding fair value
movements from biological assets) to 17% (Q3 YTD FY21: 11%) -
notable in a global inflationary environment
o Increase in operating loss due to depreciation and
amortisation from CleanTreat(R) units and leased vessels, and first
amortisation of Ectosan(R) Vet and CleanTreat(R) development
costs
o Increase in statutory loss before tax due to significant
GBP5.9m increase in net finance costs due to:
-- GBP3.1m forex loss (Q3 FY21: GBP0.7m gain) mainly driven by
the translation of USD denominated loan balances; and
-- GBP2.3m loss in the fair value of financial instruments (Q3
FY21: GBPnil) related to hedging of the Company's NOK bond.
-- The YTD impact of these caused a negative movement of
GBP10.7m increasing net finance costs to GBP10m YTD.
-- Cash of GBP37.3m and liquidity of c.GBP50.3m (cash and
available facility) as at 23 August 2022
-- Net debt excluding lease liabilities of GBP59.3m (31 March 2022: GBP50.6m)
Operational highlights
-- Advanced Nutrition - continued good performance
o Driven by commercial focus and cost discipline with good
resilience to inflationary environment through better productivity
and asset utilisation
o Positive market environment
-- Genetics - recent investments delivering growth in core areas
o Continued growth in salmon egg sales: 59.4m eggs sold in Q3
FY22 (Q3 FY21: 45.2m eggs) demonstrating success of investment in
incubation unit in Iceland
o Commercialisation of shrimp genetics (SPR shrimp) exceeding
plan in Q3 FY22 and Q3 YTD FY22
-- Health - Ectosan(R) Vet and CleanTreat(R)
o Capacity utilisation was low in Q3 FY22 after spring delousing
with less sea lice pressure faced by existing and potential
customers
o Post period end there has been significant and growing
customer interest ahead of the peak sea lice treatment season
o Progress in the development of a new configuration and
business model for CleanTreat(R)
-- New CleanTreat(R) configuration based on the next generation
of large wellboats which make it feasible to install CleanTreat(R)
systems onboard customer wellboats
-- Enables a new sale and licencing business model, eliminates
need for PSVs (platform supply vessels) and reduces capital
investment
-- Commercial discussions are ongoing
-- Transition in FY23 will result in limited growth in Adjusted
EBITDA for Health but will result in a less capital intensive
solution thereafter.
o Obtained v ariation to the Company's Marketing Authorisation
from the Norwegian Medicines Agency ("NoMA") enabling a second use
of treatment water
o Obtained Marketing Authorisation in the Faroe Islands
-- Group integration - enhanced customer-centric approach by
combining the commercial function across Genetics and Health for
salmon
Progress made towards the planned listing on Euronext Growth
Oslo in Q4 calendar year 2022
-- First step towards a listing on Oslo Børs, the leading
seafood and aquaculture listing venue globally
-- The Company plans to execute a limited share issue to satisfy
the regulatory requirements of a listing on Euronext Growth
Oslo
-- Intention to uplist to the Oslo Børs in H1 of calendar year
2023 from Euronext Growth Oslo. In tandem, the Board intends to
consult with shareholders on whether to maintain its admission of
the Company's shares to trading on AIM
-- The potential limited share issue and the timing of the
Company's intended listings on the Euronext Growth and the Oslo
Børs are subject to market conditions
Current trading and outlook
-- Trading in-line with expectations for FY22:
o Strong outlook for Genetics and Advanced Nutrition sales for
remainder of the year
o Continued effort to embed Ectosan(R) Vet and CleanTreat(R)
into customers' sea lice strategies and infrastructure
-- FY23 is expected to be a transitional year for the Health
business area as the Company assumes transfer of some CleanTreat(R)
capacity to the new business model, removing some supply from the
market for a period of time
-- Medium term targets for the Group and for Health remain unchanged
GBPm % CER
Q3 YTD Q3 YTD Q3 YTD % CER
FY22 FY21 FY22 Q3 FY22 Q3 FY21 Q3 FY22
----------------------------- ------- ------- -------- ---------- -------- ---------
115.5 36.3
Revenue +32% 87.8 +28% +28% 28.3 +20%
----------------------------- ------- ------- -------- ---------- -------- ---------
Adjusted
----------------------------- ------- ------- -------- ---------- -------- ---------
22.4 6.6
Adjusted EBITDA(1) +82% 12.4 +76% +48% 4.4 +41%
----------------------------- ------- ------- -------- ---------- -------- ---------
Adj. EBITDA excluding 20.0 5.1
biological asset movements +99% 10.0 +92% +26% 4.1 +18%
----------------------------- ------- ------- -------- ---------- -------- ---------
Adjusted Operating 5.6 0.8
Profit(2) -23% 7.3 -30% -73% 2.9 -82%
----------------------------- ------- ------- -------- ---------- -------- ---------
Statutory
----------------------------- ------- ------- -------- ---------- -------- ---------
Operating loss (6.1) (5.9) (4.0) (1.2)
----------------------------- ------- ------- -------- ---------- -------- ---------
Loss before tax (16.4) (5.9) (11.2) (2.7)
----------------------------- ------- ------- -------- ---------- -------- ---------
Basic loss per share
(p) (3.24) (1.01) (1.90) (0.44)
----------------------------- ------- ------- -------- ---------- -------- ---------
Net debt(3) (89.1) (76.1) (89.1) (76.1)
----------------------------- ------- ------- -------- ---------- -------- ---------
Net debt(3) excluding
lease liabilities (59.3) (52.7) (59.3) (52.7)
----------------------------- ------- ------- -------- ---------- -------- ---------
Business Area summary
GBPm % CER
Q3 YTD Q3 YTD Q3 YTD % CER
FY22 FY21 FY22 Q3 FY22 Q3 FY21 Q3 FY22
Revenue
------- ------- -------- ---------- -------- ---------
61.4 19.4
Advanced Nutrition +15% 53.4 +11% +5% 18.4 -5%
------- ------- -------- ---------- -------- ---------
39.7 13.1
Genetics +29% 30.9 +26% +50% 8.7 +47%
------- ------- -------- ---------- -------- ---------
14.5 3.8
Animal Health +308% 3.6 +309% +213% 1.2 +214%
------- ------- -------- ---------- -------- ---------
Adjusted EBITDA(1)
------- ------- -------- ---------- -------- ---------
14.3 2.8
Advanced Nutrition +41% 10.2 +36% -28% 3.9 -35%
------- ------- -------- ---------- -------- ---------
Genetics 10.5 8.2 +26% 4.8 2.2 +115%
28% +116%
------- ------- -------- ---------- -------- ---------
8.0 5.9 +34% 3.4 1.9 81%
* Net of fair value movements in biological assets +37% 81%
------- ------- -------- ---------- -------- ---------
Animal Health (0.5) (3.8) n.m. (0.6) (1.2) n.m.
------- ------- -------- ---------- -------- ---------
*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
Trond Williksen, CEO, commented
"Q3 represents a continuation of the operational and financial
progress reported consistently by Benchmark over the quarters
following the 2020 restructuring. We continue our dedicated work to
realise the potential of the well invested and well positioned
platform that Benchmark has become.
"We are excited about the development of a new configuration and
business model for CleanTreat(R), which although reducing our
growth rate for next year, increases our confidence in the solution
and enhances Benchmark's long term prospects.
"Overall, we expect to continue to deliver further underlying
progress in the coming quarters, with the aim of becoming a
profitable company supporting the global aquaculture industry with
sustainable solutions."
Details of analyst / investor call today
There will be a call at 9.00am UK time today for analysts and
investors. To attend the call, please register via Investor Meet
Company:
https://www.investormeetcompany.com/benchmark-holdings-plc-analyst-meeting/register-investor
.
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: +44(0) 207 5093 7183
Katie Hunt, Reg Hoare
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
Q3 YTD FY22 Commentary
The Group continued to perform well in Q3 translating into a 32%
growth in revenue and 99% growth in Adjusted EBITDA excluding fair
value movements from biological assets for the first nine months of
the year. Performance was strong across all business areas, with
each business area reporting improved revenues and Adjusted EBITDA
when compared to the same period last year. On a constant exchange
rate basis, Group revenue and Adjusted EBITDA excluding fair value
movements were up 28% and 92% respectively.
Operating costs were GBP31.4m, a 12% increase from the prior
year (Q3 YTD FY21: GBP28.0m) due to higher activity levels, cost
inflation and the impact of forex movements, while R&D expenses
of GBP4.7m were 10% lower than the comparative period in the
previous year (Q3 YTD FY21: GBP5.2m). Total R&D investment
including capitalised development costs was GBP6.3m, GBP2.3m below
the prior year (Q3 YTD FY21: GBP8.6m) reflecting the transition to
the commercial phase of Ectosan(R) Vet and CleanTreat(R).
Adjusted EBITDA (excluding fair value movement from biological
assets) was GBP20.0m (Q3 YTD FY21: GBP10.0m) driven by higher
revenues, increased asset utilisation and ongoing cost control. As
a result, the Group achieved an Adjusted EBITDA margin (excluding
fair value movement from biological assets) of 17% (Q3 YTD FY21:
11%). Depreciation and amortisation increased from the comparative
period last year to GBP29.0m (Q3 YTD FY21: GBP17.2m) due to the
depreciation of the CleanTreat(R) units and the leased vessels used
in their operation, and the commencement of amortisation of the
capitalised development costs relating to Ectosan(R) Vet and
CleanTreat(R) following the commercial launch. These higher costs
offset the improved Adjusted EBITDA leaving a slightly higher
operating loss in the period of GBP6.1m (Q3 YTD FY21: operating
loss of GBP5.9m).
There was a significant increase in net finance costs for the
nine month period to GBP10.3m (Q3 YTD FY21: GBP0.1m), primarily due
to forex movements which resulted in a forex loss of GBP2.6m in the
first nine months compared to a GBP4.0m gain in the comparative
period - a GBP6.6m year-on-year adverse movement. In addition,
there has been a loss in the fair value of financial instruments
taken in the income statement of GBP1.7m, a year-on-year adverse
movement of GBP4.1m on last year's GBP2.4m gain. These increased
charges were slightly offset by a GBP0.5m improvement in net
interest charges following the listing of the NOK bond, leaving Q3
YTD FY22 loss before tax to be GBP10.5m higher than the previous
year at GBP16.4m (Q3 YTD FY21: loss before tax GBP5.9m).
Although loss before tax is higher in the YTD period in FY22
than in FY21, the Group's tax charge has increased to GBP5.2m for
YTD FY22 (YTD FY21: GBP0.1m credit) due to higher profits in the
Advanced Nutrition and Genetics business areas in territories where
there are no available losses to be utilised. The credit in the
prior period was a result of the deferred tax credits on
amortisation of acquired intangible assets arising on
consolidation, more than offsetting lower income tax charges on
lower profits. Loss after tax was GBP21.6m (Q3 YTD FY21: loss after
tax GBP5.9m)
Year to date, the Group reported a net operating cash outflow of
GBP2.2m after an increase in working capital of GBP22.1m related to
the growth in sales in Advanced Nutrition and Genetics and increase
of inventory levels in Health and Advanced Nutrition, and tax
payments of GBP6.1m in the period. Net cash outflow from investing
activities was GBP8.9m of which capex was GBP7.2m primarily in
Genetics (GBP4.1m) and Health (GBP1.8m) and capitalised R&D was
GBP1.7m (mainly in SPR Shrimp) both of which were offset by
receipts of deferred consideration from earlier year disposals of
divested businesses of GBP0.9m. Net cash inflow from financing
activities of GBP6.5m, included an equity raise of (net) GBP20.1m,
GBP6.9m of lease payments and the NOK bond coupon payments. Our
cash position at the end of the period was GBP38.2m and l iquidity
of GBP50.5m .
Q3 FY22 commentary
The Group reported revenue of GBP36.3m, 28% above prior year of
GBP28.3m. This was driven by revenue growth in all business areas
with Advanced Nutrition reporting revenue +5%, Genetics +50% and
Health +213% respectively, higher than the comparative period in
the prior year. The Group's reported revenue performance was aided
by forex tailwinds and, on a constant currency basis, Genetics and
Health improved by 47% and 214% while Advanced Nutrition reported a
small decrease of 5%, mainly due to the timing of orders.
Adjusted EBITDA (excluding fair value uplift from biological
assets) was GBP5.1m, 26% ahead of the prior year (18% higher on a
constant currency basis) (Q3 FY21: GBP4.1m), reflecting higher
revenues, operational leverage and good cost control as well as
forex movements. Operating costs of GBP11.5m were 24% above last
year (Q3 FY21: GBP9.3m), primarily driven by an increase in
operating costs in Health associated with the Ectosan(R) Vet and
CleanTreat(R) operations and the impact of forex in Advanced
Nutrition. R&D expenses of GBP1.4m were 13% below the prior
year (Q3 FY21: GBP1.6m) and represented 4% of Group revenues (Q3
FY21: 6%). After an increase in depreciation and amortisation to
GBP10.1m (Q3 YTD FY21: GBP5.5m), Group operating loss for the
quarter increased to GBP4.0m (Q3 FY21: GBP1.2m).
Net finance costs of GBP7.3m were significantly higher than the
comparative period (Q3 FY21: GBP1.4m). As with the YTD position,
this is due to a combination of the movement in the fair value of
the derivative instrument and forex movements. There was a loss in
the fair value of the derivative in the period of GBP2.3m (Q3 YTD
FY21: GBPnil) and the group incurred forex losses of GBP3.1m (Q3
FY21: gain GBP0.7m). As a result of these large adverse
year-on-year movements, loss before tax in the quarter increase to
GBP11.2m (Q3 FY21: GBP2.7m).
The tax charge of GBP1.6m was higher than last year (Q3 FY21:
GBP0.1m) due to higher profits in Advanced Nutrition and Genetics
in the quarter in territories where no loss relief was available.
The resulting loss after tax for the quarter was GBP12.8m (Q3 FY21:
loss GBP2.8m).
We continue our efforts to enhance our commercial focus and
integrate the Group to drive synergies. In the period we combined
our salmon commercial organisation across Health and Genetics.
Advanced Nutrition
Advanced Nutrition revenues were up 5% with all product areas
aided by favourable forex rates in the period, with CER revenues
decreasing 5% due to timing of orders. By product area, sales of
Artemia were +8%, Diets +1% and Health +6% higher than Q3 2021.
Timing differences in sales pattern, together with a change in
product mix in the period compared to last year, and higher
operating costs from increased activity resulted in a decrease in
Adjusted EBITDA in Q3 FY22 to GBP2.8m (Q3 FY21 GBP3.9m). However,
as noted earlier Q3YTD FY22 Adjusted EBITDA is up by 41% and the
business area continues to perform strongly with good visibility to
the end of the year. In the YTD, all sales regions were up on the
prior year except China, and overall, conditions in the shrimp
markets are positive.
Genetics
Genetics delivered an excellent performance in Q3 FY22 with
revenues of GBP13.1m, 50% above the prior year (Q3 FY21: GBP8.7m)
(+47% CER) driven by higher revenues across all products and
genetics services. Sales of salmon eggs were +39% higher than the
prior year while sales from shrimp were +164% and revenues from
tilapia were 57% higher albeit shrimp and tilapia were from a small
base. These results reflect the success of our recent investments
in our new land-based incubation centre in Iceland, and in our
shrimp and tilapia facilities in the US to expand capacity. Harvest
income from our broodstock licence benefitted from a timing
difference with income received earlier this year resulting in an
increase to GBP2.1m in the quarter (Q3 FY21: GBP0.7m).
Commercialisation of our SPR shrimp is also progressing ahead of
plan, with encouraging marketing synergies with Advanced Nutrition
materialise.
Adjusted EBITDA for Q3 FY22 (excluding fair value movements of
biological assets) was GBP3.4m, 81% ahead of the prior year (Q3
FY21: GBP1.9m). Including fair value movements Adjusted EBITDA for
Q3 FY22 was GBP4.8m, 116% above the same period last year.
Revenue YTD at GBP39.7m was 29% better than the prior year (Q3
YTD FY21: GBP30.9m) and Adjusted EBITDA excluding fair value
movements in biological assets was 37% higher than the prior year
at GBP8.0m (Q3 YTD FY21: GBP5.9m).
Health
Revenues in Q3 FY22 increased to GBP3.8m (Q3 FY21: GBP1.2m) due
to sales from Ectosan(R) Vet and CleanTreat(R) which were launched
in Q4 FY21. Salmosan sales for the quarter were 38% up on the prior
year despite a fall in the volumes sold as a result of a change in
the mix of markets supplied. Adjusted EBITDA was a loss of GBP0.6m
(Q3 FY21: loss of GBP1.2m) as a result of the higher revenues,
albeit reflecting a low utilisation rate of the CleanTreat(R)
assets in the quarter. GBP0.2m of the revenue in the period (Q3
FY21: GBPnil) was derived from recharging vessel and fuel costs
associated with the Ectosan(R) Vet and CleanTreat(R) operations.
YTD revenue was GBP14.5m (Q3 YTD FY21: GBP3.6m) due to the
introduction of Ectosan(R) Vet and CleanTreat(R), and GBP2.4m of
the revenue was derived from recharging vessel and fuel costs.
Treatments performed with Ectosan(R) Vet and CleanTreat(R)
reported efficacy above 99%. The end of Q3 was a slow period for
sea lice treatments due to lower sea lice pressure, however going
into Q4, we are entering a season with high sea lice challenges
driving customer interest and increased operational activity.
During the period we obtained Marketing Authorisation for
Ectosan(R) Vet and CleanTreat(R) in the Faroe Islands. We are
accelerating the development of a new configuration of the Group's
CleanTreat(R) systems based on the next generation of large
wellboats, which form a core part of our customers' infrastructure.
This will also enable a new business model, with customers buying
CleanTreat systems with the right to use and operate the systems
under license. Benchmark will oversee the operation to ensure
compliance with pharmacovigilance. In order to satisfy customers'
different operating models, the Group plans to offer both
configurations. This assumes transitioning some of the existing
CleanTreat(R) capacity to the new wellboat model. While this will
result in lower revenues in FY23 and will result in limited growth
in Adjusted EBITDA for Health in FY23, it will be of strategic
importance for the ongoing commercial roll-out of Ectosan(R) Vet
and CleanTreat(R).
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 is
pursuing a listing on Euronext Growth Oslo (operated by the Oslo
Stock Exchange) during the fourth quarter of the calendar year
subject to market conditions. The Company plans to execute a
limited share issue to satisfy the regulatory requirements of a
listing on Euronext Growth Oslo.
The Board then intends to uplist the Company to the Oslo Stock
Exchange (Oslo Børs) from Euronext Growth Oslo in H1 CY 2023. In
tandem, the Board intends to consult with shareholders on whether
to maintain its admission of the Company's shares to trading on
AIM.
The potential limited share issue and the timing of the intended
listings on Euronext Growth and the Oslo Børs are subject to market
conditions.
Outlook
The Group has completed another quarter of financial and
operational delivery post its restructuring. There is continued
momentum in the business and the Group is trading in line with
expectations for FY22. Conditions in our core markets remain
favourable.
The outlook for Genetics and Advanced Nutrition is strong for
the remainder of the year and beyond. In Health, we continue to
make progress in the roll-out of Ectosan(R) Vet and CleanTreat(R)
and are accelerating the development of a new configuration and
business model adapted to our customers' infrastructure. This is a
positive strategic development which will facilitate adoption while
reducing capital investment for Benchmark and improving quality of
earnings. The transition to a new business model will require
transferring some capacity taking one CleanTreat(R) system off the
market for a period of time in FY23 with a consequent impact on our
sales and Adjusted EBITDA. However, our medium-term targets are
unchanged for Health and for the Group, and this development
increases our confidence in the potential of our solution.
Benchmark Holdings plc
Consolidated Income Statement for period ended 30 June 2022
YTD Q3 YTD Q3
Q3 2022 Q3 2021 2022 2021 FY 2021
All figures in GBP000's Notes (unaudited) (unaudited) (unaudited) (unaudited) (audited)
-------------------------------- ------ -------------- -------------- -------------- -------------- ------------
Revenue 4 36,272 28,336 115,519 87,801 125,062
Cost of sales (16,799) (13,024) (56,524) (41,646) (59,477)
-------------------------------- ------
Gross profit 19,473 15,312 58,995 46,155 65,585
Research and development
costs (1,426) (1,590) (4,663) (5,172) (7,010)
Other operating costs (11,464) (9,329) (31,371) (28,026) (38,221)
Share of loss of
equity-accounted
investees, net of tax (10) 35 (538) (606) (905)
-------------------------------- ------ -------------- -------------- -------------- -------------- ------------
Adjusted EBITDA(2) 6,573 4,428 22,423 12,351 19,449
Exceptional - restructuring,
disposal and acquisition
related items 5 (469) (187) 439 (1,055) (184)
-------------------------------- ------ -------------- -------------- -------------- -------------- ------------
EBITDA(1) 6,104 4,241 22,862 11,296 19,265
Depreciation and impairment (5,206) (1,555) (15,258) (5,050) (8,359)
Amortisation and impairment (4,849) (3,931) (13,721) (12,109) (16,283)
-------------------------------- ------ -------------- -------------- -------------- -------------- ------------
Operating loss (3,951) (1,245) (6,117) (5,863) (5,377)
Finance cost (7,409) (2,110) (10,674) (6,495) (7,987)
Finance income 122 674 409 6,424 4,185
-------------------------------- ------ -------------- -------------- -------------- -------------- ------------
Loss before taxation (11,238) (2,681) (16,382) (5,934) (9,179)
Tax on loss 6 (1,584) (128) (5,200) 58 (2,397)
-------------------------------- ------ -------------- ------------
Loss for the period (12,822) (2,809) (21,582) (5,876) (11,576)
-------------------------------- ------ -------------- -------------- -------------- -------------- ------------
Loss for the period
attributable to:
- Owners of the parent (13,394) (2,972) (22,526) (6,790) (12,891)
- Non-controlling interest 572 163 944 914 1,315
-------------------------------- ------ --------------
(12,822) (2,809) (21,582) (5,876) (11,576)
-------------------------------- ------ -------------- -------------- -------------- -------------- ------------
Earnings per share
Basic loss per share
(pence) 7 (1.90) (0.44) (3.24) (1.01) (1.93)
Diluted loss per share
(pence) 7 (1.90) (0.44) (3.24) (1.01) (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.
Benchmark Holdings plc
Consolidated Statement of Comprehensive Income for the period
ended 30 June 2022
YTD Q3 YTD Q3
Q3 2022 Q3 2021 2022 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------------- --- -------------- -------------- -------------- -------------- ------------
Loss for the period (12,822) (2,809) (21,582) (5,876) (11,576)
Other comprehensive income
Items that are or may be
reclassified subsequently
to profit or loss
Foreign exchange translation
differences 17,180 (385) 24,381 (14,054) (9,929)
Cash flow hedges - changes
in fair value (2,368) (514) 580 2,306 3,054
Cash flow hedges - reclassified
to profit or loss (19) 257 159 544 709
Total comprehensive income
for the period 1,971 (3,451) 3,538 (17,080) (17,742)
-------------------------------------- -------------- -------------- -------------- -------------- ------------
Total comprehensive income
for the period attributable
to:
- Owners of the parent 1,381 (3,645) 2,217 (18,304) (19,329)
- Non-controlling interest 590 194 1,321 1,224 1,587
-------------------------------------- -------------- ------------
1,971 (3,451) 3,538 (17,080) (17,742)
------------------------------------- -------------- -------------- -------------- -------------- ------------
The accompanying notes are an integral part of this consolidated
financial information.
Benchmark Holdings plc
Consolidated Balance Sheet as at 30 June 2022
30 June 30 June 30 September
2022 2021 2021
All figures in GBP000's Notes (unaudited) (unaudited) (audited)
------------------------------------------ ------ ------------ ------------ --------------
Assets
Property, plant and equipment 81,478 74,995 78,780
Right-of-use assets 29,060 25,306 25,531
Intangible assets 235,175 228,156 229,040
Equity-accounted investees 3,086 3,289 3,354
Other investments 15 15 15
Biological and agricultural assets 20,927 17,119 21,244
Non-current assets 369,741 348,880 357,964
------------------------------------------ ------ ------------ ------------ --------------
Inventories 27,228 20,260 20,947
Biological and agricultural assets 23,636 20,610 17,121
Trade and other receivables 51,105 34,462 46,498
Cash and cash equivalents 38,179 43,187 39,460
------------------------------------------ ------ ------------ ------------ --------------
Current assets 140,148 118,519 124,026
------------------------------------------
Total assets 509,889 467,399 481,990
------------------------------------------ ------ ------------ ------------ --------------
Liabilities
Trade and other payables (41,243) (32,798) (46,668)
Loans and borrowings 8 (14,226) (10,481) (10,654)
Corporation tax liability (7,408) (4,439) (5,634)
Provisions (543) - (563)
------------------------------------------ ------ ------------ ------------ --------------
Current liabilities (63,420) (47,718) (63,519)
------------------------------------------ ------ ------------ ------------ --------------
Loans and borrowings 8 (113,094) (108,829) (109,737)
Other payables (1,055) (1,803) (911)
Deferred tax (28,116) (28,582) (28,224)
Non-current liabilities (142,265) (139,214) (138,872)
------------------------------------------ ------ ------------ ------------ --------------
Total liabilities (205,685) (186,932) (202,391)
------------------------------------------ ------ ------------ ------------ --------------
Net assets 304,204 280,467 279,599
------------------------------------------ ------ ------------ ------------ --------------
Issued capital and reserves attributable
to owners of the parent
Share capital 9 704 670 670
Additional paid-in share capital 9 420,824 400,622 400,682
Capital redemption reserve 5 5 5
Retained earnings (175,866) (147,876) (154,231)
Hedging reserve (5,137) (6,800) (5,876)
Foreign exchange reserve 54,469 26,313 30,465
Equity attributable to owners of
the parent 294,999 272,934 271,715
Non-controlling interest 9,205 7,533 7,884
------------------------------------------ ------
Total equity and reserves 304,204 280,467 279,599
------------------------------------------ ------ ------------ ------------ --------------
The accompanying notes are an integral part of this consolidated
financial information.
Benchmark Holdings plc
Consolidated Statement of Changes in Equity for the period ended
30 June 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 - - - - (22,526) (22,526) 944 (21,582)
Other
comprehensive
income - - 24,004 739 - 24,743 377 25,120
Total
comprehensive
income for
the period - - 24,004 739 (22,526) 2,217 1,321 3,538
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
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 - - - - 891 891 - 891
Total
contributions
by and
distributions
to owners 34 20,142 - - 891 21,067 - 21,067
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Total
transactions
with
owners of the
Company 34 20,142 - - 891 21,067 - 21,067
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
As at 30 June
2022
(unaudited) 704 420,824 54,474 (5,137) (175,866) 294,999 9,205 304,204
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
As at 1
October 2020
(audited) 668 399,601 40,683 (9,651) (142,170) 289,131 6,309 295,440
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Comprehensive
income
for the period
(Loss)/profit
for the
period - - - - (6,790) (6,790) 914 (5,876)
Other
comprehensive
income - - (14,365) 2,851 - (11,514) 310 (11,204)
Total
comprehensive
income for
the period - - (14,365) 2,851 (6,790) (18,304) 1,224 (17,080)
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Contributions
by and
distributions
to owners
Share issue 2 1,021 - - - 1,023 - 1,023
Share-based
payment - - - - 1,084 1,084 - 1,084
Total
contributions
by and
distributions
to owners 2 1,021 - - 1,084 2,107 - 2,107
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
Total
transactions
with
owners of the
Company 2 1,021 - - 1,084 2,107 - 2,107
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
As at 30 June
2021
(unaudited) 670 400,622 26,318 (6,800) (147,876) 272,934 7,533 280,467
--------------- --------- ------------ ----------- --------- ---------- -------------- ------------- ---------
As at 1
October 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.
Benchmark Holdings plc
Consolidated Statement of Cash Flows for the period ended 30
June 2022
Q3 2021
Q3 2022 FY 2021
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
--------------------------------------------- ------------- -------------- -----------
Cash flows from operating activities
Loss for the period (21,582) (5,876) (11,576)
Adjustments for:
Depreciation and impairment of property,
plant and equipment 6,324 3,545 5,017
Depreciation and impairment of right-of-use
assets 8,934 1,505 3,342
Amortisation and impairment of intangible
fixed assets 13,721 12,109 16,283
Loss on sale of property, plant and
equipment (43) 47 46
Gain on sale of other investments - (91) -
Finance income (238) (2,460) (1,442)
Finance costs 7,913 6,495 7,987
Increase in fair value of contingent
consideration receivable (1,203) - -
Share of loss of equity-accounted
investees, net of tax 538 606 905
Foreign exchange losses 5,607 (4,237) (1,800)
Share-based payment expense 891 1,084 830
Tax credit 5,200 (58) 2,397
--------------------------------------------- ------------- -------------- -----------
26,062 12,669 21,989
(Increase)/decrease in trade and other
receivables (4,456) 4,579 (8,178)
Increase in inventories (7,314) (2,559) (3,554)
Increase in biological and agricultural
assets (4,144) (4,418) (5,427)
(Decrease)/increase in trade and other
payables (6,228) (7,760) 5,547
Decrease in provisions (21) (29) -
--------------------------------------------- ------------- -------------- -----------
3,899 2,482 10,377
Income taxes paid (6,100) (2,625) (4,587)
--------------------------------------------- ------------- -------------- -----------
Net cash flows (used in)/generated
from operating activities (2,201) (143) 5,790
--------------------------------------------- ------------- -------------- -----------
Investing activities
Purchase of investments (108) (247) (578)
Receipts from disposal of investments 919 99 9
Purchases of property, plant and equipment (7,169) (12,789) (17,683)
Payments for initial costs of right-of-use
assets - (586) -
Purchase of intangibles (1,757) (3,629) (5,038)
Proceeds from sale of fixed assets 194 88 112
Interest received 34 48 88
Net cash flows used in investing
activities (7,887) (17,016) (23,090)
--------------------------------------------- ------------- -------------- -----------
Financing activities
Proceeds of share issues 20,782 689 750
Share-issue costs recognised through
equity (607) - -
Acquisition of NCI - - (12)
Repayment of bank or other borrowings (1,333) (2,696) (3,106)
Interest and finance charges paid (5,381) (5,685) (7,699)
Repayments of lease liabilities (6,928) (2,884) (4,602)
--------------------------------------------- ------------- -------------- -----------
Net cash inflow/(outflow) from financing
activities 6,533 (10,576) (14,669)
--------------------------------------------- ------------- -------------- -----------
Net decrease in cash and cash equivalents (3,555) (27,735) (31,969)
Cash and cash equivalents at beginning
of period 39,460 71,605 71,605
Effect of movements in exchange rate 2,274 (683) (176)
--------------------------------------------- ------------- -------------- -----------
Cash and cash equivalents at end
of period 38,179 43,187 39,460
--------------------------------------------- ------------- -------------- -----------
The accompanying notes are an integral part of this consolidated
financial information.
Benchmark Holdings plc
Unaudited notes to the quarterly financial statements for the
period ended 30 June 2022
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 nine months ended 30 June
2022 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 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 30 June 2022 the Group had net assets of GBP304.2m (30
September 2021: GBP279.6m), including cash of GBP38.2m (30
September 2021: GBP39.5m) as set out in the consolidated balance
sheet. The Group made a loss for the nine months of GBP21.6m (year
ended 30 September 2021: loss GBP11.6m).
As noted in the Management Report, we have seen greater
stability in our end markets after the varying, but advanced,
degrees of recovery across the world from the COVID-19 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. This has given cause for
optimism about any lasting impact, but the Directors have remained
cautious throughout of any possibility of return of restrictions
should there be any relapse in the recovery, 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 strong
performance of the Advanced Nutrition business during the quarter
as the market stabilises following recovery from the pandemic.
Nevertheless, a number of mitigating measures within the control of
management which were implemented early in the pandemic remain in
place and have been factored into the downside analysis performed.
These measures include reductions in areas of discretionary spend,
deferral of capital projects and temporary hold on R&D for
non-imminent products.
The group ended the quarter with strong cash balances of
GBP38.2m after the GBP20.1m equity raise (net of costs) in Q1 and
the Group continues to have 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 10
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 refinancing process is ongoing and the Directors 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 10 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 Q3 YTD Q3
Q3 2022 Q3 2021 2022 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
---------------------------- --------------- --------------- --------------- --------------- -------------
Genetics 13,091 8,735 39,694 30,865 46,797
Advanced Nutrition 19,381 18,410 61,414 53,437 70,530
Health 3,840 1,226 14,533 3,563 7,832
Corporate 1,406 1,207 4,218 3,611 4,820
Inter-segment sales (1,446) (1,242) (4,340) (3,675) (4,917)
Total 36,272 28,336 115,519 87,801 125,062
---------------------------- --------------- --------------- --------------- --------------- -------------
Segmental Adjusted EBITDA
YTD Q3 YTD Q3
Q3 2022 Q3 2021 2022 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
---------------------------- --------------- --------------- --------------- --------------- -------------
Genetics 4,816 2,232 10,507 8,219 11,528
Advanced Nutrition 2,837 3,919 14,311 10,158 13,802
Health (610) (1,226) (517) (3,789) (2,685)
Corporate (470) (497) (1,878) (2,237) (3,196)
Total 6,573 4,428 22,423 12,351 19,449
---------------------------- --------------- --------------- --------------- --------------- -------------
Reconciliations of segmental information to IFRS measures
Reconciliation of Reportable Segments Adjusted EBITDA to Loss before
taxation
----------------------------------------------------------------------------------------------------------------------
YTD Q3 YTD Q3
Q3 2022 Q3 2021 2022 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
----------------------------------- --------------- --------------- --------------- --------------- -------------
Total reportable segment
Adjusted EBITDA 7,043 4,925 24,301 14,588 22,645
Corporate Adjusted EBITDA (470) (497) (1,878) (2,237) (3,196)
----------------------------------- --------------- --------------- --------------- --------------- -------------
Adjusted EBITDA 6,573 4,428 22,423 12,351 19,449
Exceptional - restructuring,
disposal and acquisition related
items (469) (187) 439 (1,055) (184)
Depreciation and impairment (5,206) (1,555) (15,258) (5,050) (8,359)
Amortisation and impairment (4,849) (3,931) (13,721) (12,109) (16,283)
Net finance costs (7,287) (1,436) (10,265) (71) (3,802)
Loss before taxation (11,238) (2,681) (16,382) (5,934) (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 30 June 2022 (unaudited)
------------------------- --------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------
Sale of goods 12,148 19,346 3,598 - - 35,092
Provision of services 938 - 242 - - 1,180
Inter-segment sales 5 35 - 1,406 (1,446) -
------------------------- ---------- ------------ -------- ----------- --------------- --------
13,091 19,381 3,840 1,406 (1,446) 36,272
------------------------- ---------- ------------ -------- ----------- --------------- --------
3 months ended 30 June 2021 (unaudited)
------------------------- --------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------
Sale of goods 6,991 18,371 1,225 - - 26,587
Provision of services 1,748 - 1 - - 1,749
Inter-segment sales (4) 39 - 1,207 (1,242) -
------------------------- ---------- ------------ -------- ----------- --------------- --------
8,735 18,410 1,226 1,207 (1,242) 28,336
------------------------- ---------- ------------ -------- ----------- --------------- --------
9 months ended 30 June 2022 (unaudited)
------------------------- --------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------
Sale of goods 36,529 61,339 9,443 - - 107,311
Provision of services 3,118 - 5,090 - - 8,208
Inter-segment sales 47 75 - 4,218 (4,340) -
------------------------- ---------- ------------ -------- ----------- --------------- --------
39,694 61,414 14,533 4,218 (4,340) 115,519
------------------------- ---------- ------------ -------- ----------- --------------- --------
9 months ended 30 June 2021 (unaudited)
------------------------- --------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------
Sale of goods 27,022 53,381 3,542 - - 83,945
Provision of services 3,835 - 21 - - 3,856
Inter-segment sales 8 56 - 3,611 (3,675) -
------------------------- ---------- ------------ -------- ----------- --------------- --------
30,865 53,437 3,563 3,611 (3,675) 87,801
------------------------- ---------- ------------ -------- ----------- --------------- --------
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
------------------------- ---------- ------------ -------- ----------- --------------- --------
Norway 41,947 70,458 6,135 - - 118,540
India 4,825 - 1,697 - - 6,522
Singapore 25 72 - 4,820 (4,917) -
------------------------- ---------- ------------ -------- ----------- --------------- --------
46,797 70,530 7,832 4,820 (4,917) 125,062
------------------------- ---------- ------------ -------- ----------- --------------- --------
3 months ended 30 June 2022 (unaudited)
------------------------- --------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------
Norway 7,721 328 2,411 - - 10,460
India 181 3,208 - - - 3,389
Singapore - 2,772 - - - 2,772
Greece 2 1,795 - - - 1,797
Faroe Islands 1,325 1 101 - - 1,427
Turkey - 1,173 - - - 1,173
UK 363 39 48 - - 450
Ecuador 18 1,575 - - - 1,593
Chile 429 2 96 - - 527
Rest of Europe 1,591 631 - - - 2,222
Rest of World 1,456 7,822 1,184 - - 10,462
Inter-segment sales 5 35 - 1,406 (1,446) -
------------------------- ---------- ------------ -------- ----------- --------------- --------
13,091 19,381 3,840 1,406 (1,446) 36,272
------------------------- ---------- ------------ -------- ----------- --------------- --------
3 months ended 30 June 2021 (unaudited)
------------------------- --------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------
Norway 4,340 178 356 - - 4,874
India - 2,870 3 - - 2,873
Singapore - 2,240 - - - 2,240
Greece - 1,650 - - - 1,650
Faroe Islands 1,094 7 168 - - 1,269
Turkey - 1,423 - - - 1,423
UK 911 31 462 - - 1,404
Ecuador - 1,009 - - - 1,009
Chile - 2 604 - - 606
Rest of Europe 1,825 645 - - - 2,470
Rest of World 569 8,316 (367) - - 8,518
Inter-segment sales (4) 39 - 1,207 (1,242) -
------------------------- ---------- ------------ -------- ----------- --------------- --------
8,735 18,410 1,226 1,207 (1,242) 28,336
------------------------- ---------- ------------ -------- ----------- --------------- --------
4. Revenue (continued)
Primary geographical markets (continued)
9 months ended 30 June 2022 (unaudited)
------------------------- --------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------
Norway 23,515 651 11,367 - - 35,533
India 581 10,927 - - - 11,508
Singapore - 6,923 - - - 6,923
Greece 2 5,266 - - - 5,268
Faroe Islands 3,926 7 378 - - 4,311
Turkey - 5,105 - - - 5,105
UK 3,219 67 166 - - 3,452
Ecuador 18 3,866 - - - 3,884
Chile 769 7 649 - - 1,425
Rest of Europe 4,952 3,212 - - - 8,164
Rest of World 2,665 25,308 1,973 - - 29,946
Inter-segment sales 47 75 - 4,218 (4,340) -
------------------------- ---------- ------------ -------- ----------- --------------- --------
39,694 61,414 14,533 4,218 (4,340) 115,519
------------------------- ---------- ------------ -------- ----------- --------------- --------
9 months ended 30 June 2021 (unaudited)
------------------------- --------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------
Norway 16,603 435 791 - - 17,829
India - 9,137 3 - - 9,140
Singapore - 5,590 - - - 5,590
Greece 25 5,122 - - - 5,147
Faroe Islands 4,465 16 168 - - 4,649
Turkey - 4,868 - - - 4,868
UK 3,567 97 477 - - 4,141
Ecuador - 3,009 - - - 3,009
Chile 37 6 2,039 - - 2,082
Rest of Europe 4,575 3,445 26 - - 8,046
Rest of World 1,585 21,656 59 - - 23,300
Inter-segment sales 8 56 - 3,611 (3,675) -
------------------------- ---------- ------------ -------- ----------- --------------- --------
30,865 53,437 3,563 3,611 (3,675) 87,801
------------------------- ---------- ------------ -------- ----------- --------------- --------
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
Q3 2022 Q3 2021 Q3 2022 Q3 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
---------------------------- --- -------------- -------------- -------------- -------------- ------------
Acquisition related items - - - - (850)
Exceptional restructuring
and disposal items 469 187 (439) 1,055 1,034
--------------------------------- -------------- -------------- -------------- -------------- ------------
Total exceptional items 469 187 (439) 1,055 184
--------------------------------- -------------- -------------- -------------- -------------- ------------
Exceptional restructuring and disposal items in Q3 2022 include:
GBP570,000 of legal and professional costs relating to costs in
connection with the Group's assessment of a potential listing in
Oslo, costs relating to a legal dispute within a divested business,
and other restructuring costs, together with GBP50,000 of staff
costs and GBP143,000 of other costs relating to the closure of the
Thai research centre in Advanced Nutrition. These costs were offset
by a credit of GBP294,000 relating to additional contingent
consideration received in the period following the disposal of
Aquaculture UK on 7 February 2020.
6. Taxation
YTD Q3 YTD Q3
Q3 2022 Q3 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 2,596 1,037 7,603 2,667 5,383
Adjustment in respect of prior
periods - - - - 502
------------------------------------- -------------- -------------- -------------- -------------- ------------
Total current tax charge 2,596 1,037 7,603 2,667 5,885
Deferred tax:
Origination and reversal of
temporary differences (1,012) (909) (2,403) (2,460) (3,228)
Deferred tax movements in
respect of prior periods - - - (265) (260)
------------------------------------- -------------- -------------- -------------- -------------- ------------
Total deferred tax credit (1,012) (909) (2,403) (2,725) (3,488)
Total tax charge/(credit) 1,584 128 5,200 (58) 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
Q3 2022 Q3 2021 Q3 2022 Q3 2021 FY 2021
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
----------------------------------- -------------- -------------- -------------- -------------- ------------
Loss attributable to equity
holders of the parent (GBP000) (13,394) (2,972) (22,526) (6,790) (12,891)
Weighted average number of shares
in issue (thousands) 703,961 670,158 696,303 669,164 669,459
Basic loss per share (pence) (1.90) (0.44) (3.24) (1.01) (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 30 June 2022 , a total of 5,066,469 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 30 June 2021: 4,138,057 ). 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 30 June 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 30 June 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).
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
Q3 2022 Q3 2021 Q3 2022 Q3 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
----------------------------------- --- -------------- -------------- -------------- -------------- ------------
Revenue 36,272 28,336 115,519 87,801 125,062
Cost of sales (16,799) (13,024) (56,524) (41,646) (59,477)
---------------------------------------- -------------- -------------- -------------- -------------- ------------
Gross profit 19,473 15,312 58,995 46,155 65,585
Research and development costs (1,426) (1,590) (4,663) (5,172) (7,010)
Other operating costs (11,464) (9,329) (31,371) (28,026) (38,221)
Depreciation and impairment (5,206) (1,555) (15,258) (5,050) (8,359)
Amortisation of capitalised
development costs (605) - (1,550) - (299)
Share of loss of equity accounted
investees net of tax (10) 35 (538) (606) (905)
---------------------------------------- -------------- -------------- -------------- -------------- ------------
Adjusted operating profit 762 2,873 5,615 7,301 10,791
Exceptional - restructuring,
disposal and acquisition related
items (469) (187) 439 (1,055) (184)
Amortisation and impairment
of intangible assets excluding
development costs (4,244) (3,931) (12,171) (12,109) (15,984)
---------------------------------------- -------------- -------------- -------------- -------------- ------------
Operating loss (3,951) (1,245) (6,117) (5,863) (5,377)
---------------------------------------- -------------- -------------- -------------- -------------- ------------
10. Alternative performance measures and other metrics
(continued)
Reconciliation of Loss Before Taxation to Adjusted Profit Before
Tax
YTD YTD
Q3 2022 Q3 2021 Q3 2022 Q3 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------------- --- -------------- -------------- -------------- -------------- ------------
Loss before taxation (11,238) (2,681) (16,382) (5,934) (9,179)
Exceptional - restructuring,
disposal and acquisition
related items 469 187 (439) 1,055 184
Amortisation and impairment
of intangible assets excluding
development costs 4,244 3,931 12,171 12,109 15,984
-------------------------------------- -------------- -------------- -------------- -------------- ------------
Adjusted profit before tax (6,525) 1,437 (4,650) 7,230 6,989
-------------------------------------- -------------- -------------- -------------- -------------- ------------
Other Metrics
YTD YTD
Q3 2022 Q3 2021 Q3 2022 Q3 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
---------------------------------- --- -------------- -------------- -------------- -------------- ------------
Total R&D Investment
Research and development costs 1,426 1,590 4,663 5,172 7,010
Internal capitalised development
costs 192 1,281 1,596 3,462 4,813
-------------- -------------- ------------
Total R&D investment 1,618 2,871 6,259 8,634 11,823
--------------------------------------- -------------- -------------- -------------- -------------- ------------
YTD YTD
Q3 2022 Q3 2021 Q3 2022 Q3 2021 FY 2021
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
------------------------------ --- --------------- --------------- --------------- --------------- -------------
Adjusted EBITDA excluding
fair value movement in
biological
assets
Adjusted EBITDA 6,573 4,428 22,423 12,351 19,449
Exclude fair value movement (1,437) (368) (2,442) (2,327) (3,323)
--------------- --------------- --------------- --------------- -------------
Adjusted EBITDA excluding
fair value movement in biological
assets 5,136 4,060 19,981 10,024 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.
30 June
2022
All figures in GBP000's (unaudited)
--------------------------- ------------
Cash and cash equivalents 38,179
Undrawn bank facility 12,335
50,514
--------------------------- ------------
11. Net debt
Net debt is cash and cash equivalents less loans and
borrowings.
30 June 30 June 30 September
2022 2021 2021
All figures in GBP000's (unaudited) (unaudited) (audited)
--------------------------------------- ------------ ------------ --------------
Cash and cash equivalents 38,179 43,187 39,460
Loans and borrowings (excluding lease
liabilities) - current (1,583) (1,595) (1,612)
Loans and borrowings (excluding lease
liabilities) - non-current (95,943) (94,278) (94,792)
Net debt excluding lease liabilities (59,347) (52,686) (56,944)
---------------------------------------- ------------ ------------ --------------
Lease liabilities - current (12,643) (8,886) (9,042)
Lease liabilities - non-current (17,151) (14,551) (14,945)
---------------------------------------- ------------ ------------ --------------
Net debt (89,141) (76,123) (80,931)
---------------------------------------- ------------ ------------ --------------
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