TIDMBMK
RNS Number : 0030I
Benchmark Holdings PLC
30 November 2022
30 November 2022
Benchmark Holdings plc
("Benchmark", the "Company" or the "Group")
Q4 Results
(3 months ended 30 September 2022)
Strong end to FY22 continuing track record of consistent
delivery
In compliance with the terms of the Company's unsecured green
bond which requires it to publish quarterly financial information,
Benchmark, the aquaculture biotechnology business, announces its
unaudited results for the 3 months ended 30 September 2022 (the
"period") . All Q4FY22 and Q4FY21 figures quoted in this
announcement are based on unaudited accounts.
This morning the Company published its full year audited results
for the 12 months ended 30 September 2022
which can be found on https://www.benchmarkplc.com/investors .
Highlights - strong end to the year
-- Revenues GBP42.8m, 15% ahead of the prior year (+6% CER) with
growth across all business areas:
o Genetics - revenues 15% above Q4 2021 (+11% CER) driven by
higher sales of salmon eggs
o Advanced Nutrition - revenues 10% above the prior year (-6%
CER) driven by commercial focus and continued innovation
o Health - revenues +31% above Q4 2021 (+31% CER) driven by
increased sales of Ectosan (â) Vet and CleanTreat (â)
-- Adjusted EBITDA of GBP8.8m, 23% ahead of last year driven by
higher sales, operational efficiencies and continued financial
discipline
-- Adjusted EBITDA excluding fair value movements from biological assets 57% ahead
-- Refinancing of NOK850m secured bond through the issue of a NOK750m unsecured green bond
-- Post period end, refinancing of $15m RCF with a GBP20m RCF expiring in June 2025
-- Cash of GBP35.1m and Liquidity of c GBP51.1m (cash and
available facility) as at 29th November 2022
GBPm Q4 FY22 Q4 FY21 % AER % CER(**) FY22 FY21
(full
year)
Revenue 42.8 37.3 15% 6% 158.3 125.1
--------- --------- ------- ----------- -------- -------
Adjusted
--------- --------- ------- ----------- -------- -------
Adjusted EBITDA(1) 8.8 7.1 23% 15% 31.2 19.4
--------- --------- ------- ----------- -------- -------
Adj. EBITDA excluding
biological asset movements 9.6 6.1 57% 48% 29.6 16.1
--------- --------- ------- ----------- -------- -------
Adjusted Operating Profit(2) 3.5 3.5 0% -9% 9.1 10.8
--------- --------- ------- ----------- -------- -------
Statutory
--------- --------- ------- ----------- -------- -------
Operating (loss)/profit (1.7) 0.5 -460% -524% (7.9) (5.4)
--------- --------- ------- ----------- -------- -------
Loss before tax (6.8) (3.2) -109% -127% (23.2) (9.2)
--------- --------- ------- ----------- -------- -------
Loss for the Period (8.9) (5.7) -56% -58% (30.5) (11.6)
--------- --------- ------- ----------- -------- -------
Basic loss per share
(p) (1.36) (0.91) (4.60) (1.93)
--------- --------- ------- ----------- -------- -------
Net debt(3) (73.7) (80.9) (73.7) (80.9)
--------- --------- ------- ----------- -------- -------
Net debt excluding lease
liabilities (47.5) (56.9) (47.5) (56.9)
--------- --------- ------- ----------- -------- -------
** Constant exchange rate (CER) figures derived by retranslating
current year figures using previous year's foreign exchange
rates
(1) Adjusted EBITDA is EBITDA (earnings before interest, tax,
depreciation and amortisation and impairment), before exceptional
items including acquisition related expenditure.
(2) Adjusted Operating Profit is operating loss before
exceptional items including acquisition related items and
amortisation of intangible assets excluding development costs
(3) Net debt is cash and cash equivalents less loans and
borrowings
Business Area Summary
GBPm Q4 FY22 Q4 FY21 % AER % CER(**) FY22 FY21
(full
year)
Revenue
--------- --------- ------- ----------- -------- ------
Advanced Nutrition 18.9 17.1 10% -6% 80.3 70.5
--------- --------- ------- ----------- -------- ------
Genetics 18.3 15.9 15% 11% 58.0 46.8
--------- --------- ------- ----------- -------- ------
Health 5.6 4.3 31% 31% 20.1 7.8
--------- --------- ------- ----------- -------- ------
Adjusted EBITDA(1)
--------- --------- ------- ----------- -------- ------
Advanced Nutrition 4.7 3.6 29% 8% 19.0 13.8
--------- --------- ------- ----------- -------- ------
Genetics 5.5 3.3 65% 72% 16.0 11.5
--------- --------- ------- ----------- -------- ------
* Net of fair value movements in biological assets 6.3 2.3 173% 183% 14.4 8.2
--------- --------- ------- ----------- -------- ------
Health 0.6 1.1 -43% -45% 0.1 (2.7)
--------- --------- ------- ----------- -------- ------
** Constant exchange rate (CER) figures derived by retranslating
current year figures using previous year's foreign exchange
rates
(1) Adjusted EBITDA is EBITDA (earnings before interest, tax,
depreciation and amortisation and impairment), before exceptional
items including acquisition related expenditure.
Operational highlights
-- Opening of new salmon egg incubation centre in Iceland
-- Salmon egg capacity in Norway and Iceland sold out
-- Progress in commercialisation of SPR shrimp - client wins in Indonesia and Vietnam
-- Continued positive commercial momentum in Advanced Nutrition
and focus on operational optimisation
-- Increased customer use and adoption of Ectosan(R) Vet and CleanTreat(R)
Current trading and outlook - good momentum in line with our
expectations
-- Good start to the year and positive momentum in the business
-- Diversified business and proactive commercial approach create
resilience to ongoing macroeconomic pressures
-- Recently announced change in tax regime for aquaculture
producers in Norway expected to have a marginal direct effect
-- Continue to progress towards a dual listing on Euronext
Growth Oslo with intention to uplist to the Oslo Børs in H1
2023
Enquiries
For further information, please contact:
Benchmark Holdings plc Tel: 020 3696 0630
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 Tel: 020 3128 8004
Katie Hunt, Reg Hoare, Veronica Farah benchmark@mhpgroup.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 reported a strong Q4, continuing the good performance
delivered throughout the year. Group revenues at GBP42.8m were 15%
ahead of the prior year (+6% CER) reflecting good trading across
all business areas despite the ongoing macroeconomic challenges and
price pressure in some of our end markets. Our three business areas
delivered revenue growth, with Advanced Nutrition growing by 10%,
Genetics by 15% and Health by 31%. Advanced Nutrition continued to
capitalise on its renewed commercial focus, Genetics benefitted
from peak demand for its specialist salmon eggs and in Health our
growth reflects the increased customer uptake of our sea lice
solution Ectosan (â) Vet and CleanTreat (â) .
Operating costs in Q4 2022 were 30% higher at GBP13.3m (Q4 2021:
GBP10.2m) driven by higher activity levels and a strong dollar in
the quarter. The increase was 21% at constant exchange rates.
R&D expenses were GBP2.0m, 10% up driven by small increases in
Health and Genetics with R&D spend in Advanced Nutrition
remaining flat against the prior year.
Adjusted EBITDA from continuing operations for the quarter was
GBP8.8m, 23% ahead of the prior year (Q4FY21: GBP7.1m) reflecting
increased sales, operational leverage and financial discipline.
Excluding fair value movements from biological assets, Adjusted
EBITDA was GBP9.6m, 57% ahead of the prior year.
As noted in our full year announcement released today, our net
result was impacted by an increased depreciation charge associated
with the leases on the vessels for our CleanTreat(R) operation, and
higher finance costs due to a higher interest charge and costs
associated with movements of hedging instruments as well as costs
associated with the refinancing of our NOK bond.
Advanced Nutrition
Revenues from Advanced Nutrition were GBP18.9m, up 10% (-6%
CER). By product area Artemia sales were up 5%, Diets up 20% and
sales from Health products increased by 25% compared to the same
period last year. The gross profit margin grew slightly from 60% to
61%.
Operating costs and R&D totalled GBP6.8m, up 10% compared to
the prior year. Continued cost discipline and operational
improvements resulted in an increase in Adjusted EBITDA of 29% (+8%
CER) to GBP4.7m. As a result, the Adjusted EBITDA margin reached
25% (Q4FY21:21%).
Genetics
Genetics performed well in the period with revenues of GBP18.3m,
15% above the prior year (Q4 2021: GBP15.9m) driven by higher sales
of salmon eggs resulting in all of our capacity in our Norway and
Iceland facilities being sold out. Harvest revenues were also
higher, and we benefitted from first commercial revenues of our SPR
shrimp compared to last year. The gross profit margin was 55%
(Q4FY21: 42%)
Adjusted EBITDA of GBP5.5m in the period was 65% higher than the
prior year (Q4 2021: GBP3.3m) primarily from higher sales together
with cost discipline resulting in operational leverage. Excluding
the fair value movements from biological assets Adjusted EBITDA was
GBP6.3m, 173 % ahead of the prior year (Q4 FY21: GBP2.3m). As a
result, the Adjusted EBITDA margin excluding biological asset
movements was 35% (Q4 FY21: 15%).
By species, salmon delivered an excellent performance
benefitting from peak demand for our biosecure, specialist eggs
available year round and capacity and quality enhancements from our
new incubation centre in Iceland . In shrimp, we continued to
progress in our commercialisation of our recently launched SPR
shrimps with client wins in Indonesia and Vietnam. We continue to
work on developing our product range to the specific needs of the
key shrimp markets.
Health
Health delivered a good performance in Q4, reflecting increased
use and adoption of our sea lice solution Ectosan Vet and
CleanTreat. Revenues in the quarter were GBP5.6m, up 30% reflecting
progress in use and adoption of our solution. Adjusted EBITDA in
the period was GBP0.6m (Q4FY21: GBP1.1m). This reflects the costs
associated with having two CleanTreat(R) units in operation against
one in the same period last year. Operating costs and R&D were
GBP1.9m in the period (Q4 FY21: GBP1.5m). Costs associated with the
leases of the vessels for the CleanTreat units amounted to
GBP1.8m.
Finance costs, cashflow and net debt
During the quarter, the existing NOK 850m was refinanced through
the issue of an unsecured NOK 750m green bond with a maturity date
in September 2025 and is to be listed on the Oslo Stock Exchange.
The company also extended and increased its RCF facility from $15m
to GBP20m with maturity in June 2025.
Net finance cost for the quarter of GBP5.1m was higher than the
prior year (Q4 2021: GBP3.7m). Movements in the quarter in the fair
value of our financial instruments taken out to hedge our external
borrowings caused a charge of GBP5.3m, (Q4 2021: charge of
GBP0.4m). Interest charges for the period of GBP5.3m (Q4 2021:
GBP1.9m) included one-off early bond settlement fees of GBP1.6m and
accelerated amortisation of previously deferred borrowing fees of
GBP0.9m following the refinancing of the old bond. These charges
were offset in the quarter by foreign exchange gains of GBP5.6m (Q4
2021: loss GBP1.2m) due to movements in exchange rates towards the
end of the year.
Positive operating cashflows from strong trading in the quarter,
together with repayment of some of the borrowings in the
refinancing exercise, left net debt at the quarter end at GBP73.7m
(30 June 2022: GBP89.1m; 30 Sept 2021: GBP80.9m). Net debt
excluding lease liabilities was GBP47.5m (30 June 2022: GBP59.3m;
30 Sept 2021: GBP56.9m).
Outlook
We have had a good start to the year and there is good momentum
in the business. Cost inflation and other macroeconomic pressures
will continue to be a feature across the world in 2023 and we are
not immune. However, we have a well-diversified, balanced business
which creates resilience to challenges in individual markets as
well as opportunities. In addition, we will continue to proactively
mitigate potential pressure on our business and our margins through
pricing, supplier management and operational improvements. The
recently announced change in the tax regime for aquaculture
producers in Norway is expected to have a marginal direct effect on
our business.
Looking further into the future, Benchmark is uniquely
positioned in an industry that is structurally growing and driven
by multiple megatrends. This creates significant opportunity for
growth and increasing returns for shareholders in the near and
medium term and for many years to come.
Consolidated Income Statement for the period ended 30 September
2022
Q4 2022 Q4 2021 FY 2022 FY 2021
All figures in GBP000's Notes (unaudited) (unaudited) (audited) (audited)
----------------------------------- ------ -------------- -------------- ------------ ------------
Revenue 4 42,758 37,261 158,277 125,062
Cost of sales (18,625) (17,831) (75,149) (59,477)
----------------------------------- ------
Gross profit 24,133 19,430 83,128 65,585
Research and development
costs (2,028) (1,838) (6,691) (7,010)
Other operating costs (13,290) (10,195) (44,661) (38,221)
Share of loss of equity-accounted
investees, net of tax (57) (299) (595) (905)
----------------------------------- ------ -------------- -------------- ------------ ------------
Adjusted EBITDA(2) 8,758 7,098 31,181 19,449
Exceptional - restructuring,
disposal and acquisition
related items 5 (423) 871 16 (184)
----------------------------------- ------ -------------- -------------- ------------ ------------
EBITDA(1) 8,335 7,969 31,197 19,265
Depreciation and impairment (4,639) (3,309) (19,897) (8,359)
Amortisation and impairment (5,440) (4,174) (19,161) (16,283)
----------------------------------- ------ -------------- -------------- ------------ ------------
Operating (loss)/profit (1,744) 486 (7,861) (5,377)
Finance cost (11,547) (3,771) (20,057) (7,987)
Finance income 6,496 40 4,741 4,185
----------------------------------- ------ -------------- -------------- ------------ ------------
Loss before taxation (6,795) (3,245) (23,177) (9,179)
Tax on loss 6 (2,074) (2,455) (7,274) (2,397)
----------------------------------- ------ -------------- ------------
Loss for the period (8,869) (5,700) (30,451) (11,576)
----------------------------------- ------ -------------- -------------- ------------ ------------
Loss for the period
attributable to:
- Owners of the parent (9,561) (6,101) (32,087) (12,891)
- Non-controlling interest 692 401 1,636 1,315
----------------------------------- ------ --------------
(8,869) (5,700) (30,451) (11,576)
----------------------------------- ------ -------------- -------------- ------------ ------------
Earnings per share
Basic loss per share
(pence) 7 (1.36) (0.91) (4.60) (1.93)
Diluted loss per share
(pence) 7 (1.36) (0.91) (4.60) (1.93)
----------------------------------- ------ -------------- -------------- ------------ ------------
1 EBITDA - Earnings before interest, tax, depreciation,
amortisation, and impairment
2 Adjusted EBITDA - EBITDA before exceptional items including
acquisition related items
Consolidated Statement of Comprehensive Income for the period
ended 30 September 2022
Q4 FY
Q4 2022 2021 FY 2022 2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
------------------------------------------ --- -------------- -------------- ------------ ------------
Loss for the period (8,869) (5,700) (30,451) (11,576)
Other comprehensive income
Items that are or may be reclassified
subsequently to profit or loss
Foreign exchange translation differences 23,225 4,113 47,606 (9,929)
Cash flow hedges - changes in fair
value 2,047 760 2,627 3,054
Cash flow hedges - reclassified to
profit or loss 2,387 164 2,546 709
Total comprehensive income for the
period 18,790 (663) 22,328 (17,742)
----------------------------------------------- -------------- -------------- ------------ ------------
Total comprehensive income for the
period attributable to:
- Owners of the parent 18,109 (1,026) 20,326 (19,329)
- Non-controlling interest 681 363 2,002 1,587
----------------------------------------------- ------------
18,790 (663) 22,328 (17,742)
---------------------------------------------- -------------- -------------- ------------ ------------
The accompanying notes are an integral part of this consolidated
financial information.
Consolidated Balance Sheet as at 30 September 2022
30 September 30 September
2022 2021
All figures in GBP000's Notes (audited) (audited)
------------------------------------------ ------ -------------- --------------
Assets
Property, plant and equipment 81,900 78,780
Right-of-use assets 27,034 25,531
Intangible assets 245,264 229,040
Equity-accounted investees 3,113 3,354
Other investments 15 15
Biological and agricultural assets 20,878 21,244
Non-current assets 378,204 357,964
------------------------------------------ ------ -------------- --------------
Inventories 29,813 20,947
Biological and agricultural assets 25,780 17,121
Trade and other receivables 56,377 46,498
Cash and cash equivalents 36,399 39,460
------------------------------------------ ------ -------------- --------------
Current assets 148,369 124,026
------------------------------------------ ------ -------------- --------------
Total assets 526,573 481,990
------------------------------------------ ------ -------------- --------------
Liabilities
------------------------------------------ ------ -------------- --------------
Trade and other payables ( 44,324) ( 46,668)
Loans and borrowings 8 (17,091) (10,654)
Corporation tax liability (10,211) (5,634)
Provisions (1,631) (563)
------------------------------------------ ------ -------------- --------------
Current liabilities (73,257) (63,519)
------------------------------------------ ------ -------------- --------------
Loans and borrowings 8 (93,045) (109,737)
Other payables (8,996) (911)
Deferred tax (27,990) (28,224)
------------------------------------------ ------ -------------- --------------
Non-current liabilities (130,031) (138,872)
------------------------------------------ ------ -------------- --------------
Total liabilities (203,288) (202,391)
------------------------------------------ ------ -------------- --------------
Net assets 323,285 279,599
------------------------------------------ ------ -------------- --------------
Issued capital and reserves attributable
to owners of the parent
Share capital 9 704 670
Additional paid-in share capital 9 420,824 400,682
Capital redemption reserve 5 5
Retained earnings (185,136) (154,231)
Hedging reserve (703) (5,876)
Foreign exchange reserve 77,705 30,465
------------------------------------------ ------ -------------- --------------
Equity attributable to owners of
the parent 313,399 271,715
Non-controlling interest 9,886 7,884
------------------------------------------ ------ -------------- --------------
Total equity and reserves 323,285 279,599
------------------------------------------ ------ -------------- --------------
The accompanying notes are an integral part of this consolidated
financial information.
Consolidated Statement of Changes in Equity for the period ended
30 September 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) for the
period - - - - (32,087) (32,087) 1,636 (30,451)
Other
comprehensive
income - - 47,240 5,173 - 52,413 366 52,779
Total
comprehensive
income for
the period - - 47,240 5,173 (32,087) 20,326 2,002 22,328
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
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 - - - - 1,182 1,182 - 1,182
Total
contributions
by and
distributions
to owners 34 20,142 - - 1,182 21,358 - 21,358
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Changes in
ownership
Total changes
in ownership
interests - - - - - - - -
Total
transactions
with owners
of the
Company 34 20,142 - - 1,182 21,358 - 21,358
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
As at 30
September
2022
(audited) 704 420,824 77,710 (703) (185,136) 313,399 9,886 323,285
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
As at 1
October 2020
(audited) 668 399,601 40,683 (9,651) (142,170) 289,131 6,309 295,440
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Comprehensive
income
for the period
(Loss) 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 issue
costs
recognised
through equity - - - - - - - -
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
September
2021
(audited) 670 400,682 30,470 (5,876) (154,231) 271,715 7,884 279,599
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
*Other reserves in this statement is an aggregation of capital
redemption reserve and foreign exchange reserve.
Consolidated Statement of Cash Flows for the period ended 30
September 2022
FY 2022 FY 2021
(audited) (audited)
GBP000 GBP000
Cash flows from operating activities
Loss for the period (30,451) (11,576)
Adjustments for:
Depreciation and impairment of property, plant
and equipment 8,602 5,017
Depreciation and impairment of right-of-use
assets 11,295 3,342
Amortisation and impairment of intangible fixed
assets 19,161 16,283
Loss on sale of property, plant and equipment (43) 46
Finance income (319) (1,442)
Finance costs 18,437 7,987
Increase in fair value of contingent consideration
receivable (1,203) -
Share of loss of equity-accounted investees,
net of tax 595 905
Foreign exchange losses (3,985) (1,800)
Share-based payment expense 1,182 830
Other adjustments for non-cash items (276) -
Tax credit 7,274 2,397
Increase in trade and other receivables (8,511) (8,178)
Increase in inventories (5,406) (3,554)
Increase in biological and agricultural assets (6,099) (5,427)
Increase in trade and other payables 6,946 5,547
Increase in provisions 1,058 -
18,257 10,377
Income taxes paid (7,447) (4,587)
Net cash flows generated from operating activities 10,810 5,790
Investing activities
Purchase of investments (378) (578)
Receipts from disposal of investments 1,544 9
Purchases of property, plant and equipment (10,808) (17,683)
Purchase of intangibles (205) (5,038)
Capitalised research and development costs (1,708) -
Proceeds from sale of fixed assets 220 112
Interest received 119 88
Net cash flows used in investing activities (11,216) (23,090)
Financing activities
Proceeds of share issues 20,737 750
Share-issue costs recognised through equity (562) -
Acquisition of NCI - (12)
Proceeds from bank or other borrowings 67,939 -
Repayment of bank or other borrowings (74,874) (3,106)
Interest and finance charges paid (9,629) (7,699)
Repayments of lease liabilities (10,533) (4,602)
Net cash outflow from financing activities (6,922) (14,669)
Net decrease in cash and cash equivalents (7,328) (31,969)
Cash and cash equivalents at beginning of period 39,460 71,605
Effect of movements in exchange rate 4,267 (176)
Cash and cash equivalents at end of period 36,399 39,460
Unaudited notes to the quarterly financial statements for the
period ended 30 September 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 three months and year ended
30 September 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 consolidated financial
statements as at and for the year ended 30 September 2022. 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 2022 were
approved by the Directors on 30 November 2022 and will be delivered
to the Registrar of Companies after the AGM on 16 February 2023.
The audit report received on those accounts was (i) unqualified and
(ii) did not contain a statement under section 498(2) or (3) of the
Companies Act 2006.
Going concern
The Group's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Management Report.
As at 30 September 2022 the Group had net assets of GBP323.3m
(30 September 2021: GBP279.6m), including cash of GBP36.4m (30
September 2021: GBP39.5m) as set out in the consolidated balance
sheet. The Group made a loss for the year of GBP30.5m (year ended
30 September 2021: loss GBP11.6m).
As noted in the Strategic Report, we have seen a year of strong
performance following an extended period impacted by COVID-19, with
improvements throughout the year in all of our three business
areas. The Directors have reviewed forecasts and cash flow
projections for a period of at least 12 months 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 analysis performed, the Directors considered
severe but plausible scenarios on the Group's trading and cash flow
forecasts, firstly in relation to continued roll out of the
Ectosan(R)Vet and CleanTreat offering. Sensitivities considered
included modelling slower ramp up of the commercialisation of
Ectosan(R) Vet and CleanTreat(R) through delayed roll-out of the
revised operating model for the service, together with reductions
in expected biomass treated and reduced treatment prices. Key
downside sensitivities modelled in other areas included assumptions
on slower commercialisation of SPR shrimp, slower salmon egg sales
growth both in Chile and to land-based farms in Genetics, along
with sensitivities on sales price increases and potential supply
constraints on CIS artemia in Advanced Nutrition. Mitigating
measures within the control of management have been identified
should they be required in response to these sensitivities,
including reductions in areas of discretionary spend, deferral of
capital projects and temporary hold on R&D for non-imminent
products.
The year ended with the successful refinancing of its NOK 850
million bond which was due to mature in June 2023 with the issue of
a NOK 750 million unsecured green bond maturing in 2025. This was
achieved against a backdrop of challenging macroeconomic and market
conditions and places the Group in a much stronger position in
light of the ongoing market environment. Additionally, following
the year end, the USD15m RCF was refinanced with the agreement of a
new GBP20m RCF on 21 November 2022 with a maturity of June 2025
maturity. Furthermore, our NOK 216m loan facility (which had NOK
165.6m outstanding at the year end) which was set to mature in
October 2023 was combined with our NOK 17.5m overdraft facility
into a new loan facility of NOK 179.5m on 1 November 2022, with a
new maturity date in a further 5 years no later than 15 January
2028. Following all of these refinancing transactions, the
Directors are satisfied there are sufficient facilities in place
during the assessment period.
The global economic environment has recently experienced
turbulence largely as a result of the conflict in Eastern Europe
with supply issues in a number of industries impacted and inflation
at high levels. Against this backdrop, the Group shows resilience
against these pressures in its forecasts, with financial
instruments in place to fix interest rates and with opportunities
available to mitigate globally high inflation rates, such that even
under all of the above scenario analysis, the Group has sufficient
liquidity and resources throughout the period under review whilst
still maintaining adequate headroom against the borrowing
covenants.
The Directors therefore remain confident that the Group has
adequate resources to continue to meet its liabilities as and when
they fall due within the period of 12 months from the date of
approval of these financial statements. Based on their assessment,
the Directors believe it remains appropriate to prepare the
financial statements on a going concern basis.
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 2022.
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 2022.
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.
Reconciliations of segmental information to IFRS measures
Segmental Revenue
Q4 2022 Q4 2021 FY 2022 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
---------------------------- --------------- --------------- ------------- -------------
Genetics 18,314 15,932 58,008 46,797
Advanced Nutrition 18,872 17,093 80,286 70,530
Health 5,602 4,269 20,135 7,832
Corporate 902 1,209 5,120 4,820
Inter-segment sales (932) (1,242) (5,272) (4,917)
Total 42,758 37,261 158,277 125,062
---------------------------- --------------- --------------- ------------- -------------
Segmental Adjusted EBITDA
Q4 2022 Q4 2021 FY 2022 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
---------------------------- --------------- --------------- ------------- -------------
Genetics 5,473 3,309 15,980 11,528
Advanced Nutrition 4,706 3,644 19,017 13,802
Health 625 1,104 108 (2,685)
Corporate (2,046) (959) (3,924) (3,196)
Total 8,758 7,098 31,181 19,449
---------------------------- --------------- --------------- ------------- -------------
Reconciliation of Reportable Segments Adjusted
EBITDA to Loss before taxation
--------------------------------------------------------------------- -------------
Q4 2022 Q4 2021 FY 2022 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
----------------------------------- --------------- --------------- ------------- -------------
Total reportable segment Adjusted
EBITDA 10,804 8,057 35,105 22,645
Corporate Adjusted EBITDA (2,046) (959) (3,924) (3,196)
----------------------------------- --------------- --------------- ------------- -------------
Adjusted EBITDA 8,758 7,098 31,181 19,449
Exceptional - restructuring,
disposal and acquisition related
items (423) 871 16 (184)
Depreciation and impairment (4,639) (3,309) (19,897) (8,359)
Amortisation and impairment (5,440) (4,174) (19,161) (16,283)
Net finance costs (5,051) (3,731) (15,316) (3,802)
Loss before taxation (6,795) (3,245) (23,177) (9,179)
----------------------------------- --------------- --------------- ------------- -------------
4. Revenue
The Group's operations and main revenue streams are those
described in its financial statements to 30 September 2022. The
Group's revenue is derived from contracts with customers.
Disaggregation of revenue
In the following tables, revenue is disaggregated by primary
geographical market and by sales of goods and services. The table
includes a reconciliation of the disaggregated revenue with the
Group's reportable segments (see note 3).
Sale of goods and provision of services
3 months ended 30 September 2022 (unaudited)
------------------------- --------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------
Sale of goods 17,449 18,852 4,085 - - 40,386
Provision of services 855 - 1,517 - - 2,372
Inter-segment sales 10 20 - 902 (932) -
------------------------- ---------- ------------ -------- ----------- --------------- --------
18,314 18,872 5,602 902 (932) 42,758
------------------------- ---------- ------------ -------- ----------- --------------- --------
3 months ended 30 September 2021 (unaudited)
------------------------- --------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------
Sale of goods 14,925 17,077 2,593 - - 34,595
Provision of services 990 - 1,676 - - 2,666
Inter-segment sales 17 16 - 1,209 (1,242) -
------------------------- ---------- ------------ -------- ----------- --------------- --------
15,932 17,093 4,269 1,209 (1,242) 37,261
------------------------- ---------- ------------ -------- ----------- --------------- --------
12 months ended 30 September 2022 (audited)
------------------------- --------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------
Sale of goods 53,978 80,191 13,528 - - 147,697
Provision of services 3,973 - 6,607 - - 10,580
Inter-segment sales 57 95 - 5,120 (5,272) -
------------------------- ---------- ------------ -------- ----------- --------------- --------
58,008 80,286 20,135 5,120 (5,272) 158,277
------------------------- ---------- ------------ -------- ----------- --------------- --------
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
------------------------- ---------- ------------ -------- ----------- --------------- --------
4. Revenue (continued)
Sale of goods and provision of services (continued)
Primary geographical markets
3 months ended 30 September 2022 (unaudited)
------------------------- -------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- -------
Norway 11,151 314 4,204 - - 15,669
India 38 1,074 - - - 1,112
Singapore - 121 - - - 121
Turkey - 1,314 - - - 1,314
Ecuador - 2,606 - - - 2,606
Greece - 931 - - - 931
Faroe Islands 1,539 2 209 - - 1,750
UK 1,099 26 33 - - 1,158
Chile 237 8 222 - - 467
Rest of Europe 2,158 844 - - - 3,002
Rest of World 2,082 11,612 934 - - 14,628
Inter-segment sales 10 20 - 902 (932) -
18,314 18,872 5,602 902 (932) 42,758
------------------------- ---------- ------------ -------- ----------- --------------- -------
3 months ended 30 September 2021 (unaudited)
------------------------- -------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- -------
Norway 10,526 135 2,898 - - 13,559
India - 3,029 - - - 3,029
Singapore - 1,954 - - - 1,954
Greece - 986 - - - 986
Faroe Islands 1,171 2 180 - - 1,353
Turkey - 1,109 - - - 1,109
UK 276 20 145 - - 441
Ecuador - 1,057 - - - 1,057
Chile 400 1 296 - - 697
Rest of Europe 2,347 763 - - - 3,110
Rest of World 1,195 8,021 750 - - 9,966
Inter-segment sales 17 16 - 1,209 (1,242) -
15,932 17,093 4,269 1,209 (1,242) 37,261
------------------------- ---------- ------------ -------- ----------- --------------- -------
4. Revenue (continued)
Primary geographical markets (continued)
12 months ended 30 September 2022 (audited)
------------------------- --------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------
Norway 34,666 965 15,571 - - 51,202
India 619 12,001 - - - 12,620
Singapore - 7,044 - - - 7,044
Turkey - 6,419 - - - 6,419
Ecuador 18 6,472 - - - 6,490
Greece 2 6,197 - - - 6,199
Faroe Islands 5,465 9 587 - - 6,061
UK 4,318 93 199 - - 4,610
Chile 1,006 15 871 - - 1,892
Rest of Europe 7,110 4,056 - - - 11,166
Rest of World 4,747 36,920 2,907 - - 44,574
Inter-segment sales 57 95 - 5,120 (5,272) -
58,008 80,286 20,135 5,120 (5,272) 158,277
------------------------- ---------- ------------ -------- ----------- --------------- --------
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.
Q4 2022 Q4 2021 FY 2022 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
--------------------------------- --- -------------- -------------- ------------ ------------
Acquisition related items - (850) - (850)
Exceptional restructuring costs 1,668 110 1,229 480
Cost in relation to disposals (1,245) (131) (1,245) 554
Total exceptional items 423 (871) (16) 184
-------------------------------------- -------------- -------------- ------------ ------------
Acquisition-related items are costs incurred in investigating
and acquiring new businesses. In 2021 contingent consideration of
GBP850,000 was released in relation to the purchase of Benchmark
Genetics (USA) Inc.
Exceptional costs include: GBP843,000 (2021: GBPnil) of legal
and professional costs in relation to preparing for listing the
Group on the Oslo stock exchange, and GBP276,000 (2021: GBP480,000)
relating to restructuring costs.
Costs in relation to disposals includes a credit of GBP1,203,000
(2021: GBPnil) in relation to additional contingent consideration
received and receivable from disposals in previous years
(GBP294,000 relating to the disposal of Aquaculture UK on 7
February 2020, and GBP909,000 relating to the disposal of Improve
International Limited and its subsidiaries on 23 June 2020)
together with legal fees, lease costs and disposal items (net of
proceeds received) totaling GBP42,000 relating to additional costs
and disposals proceeds relating to disposals that occurred in
2020.
6. Taxation
Q4 2022 Q4 2021 FY 2022 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
----------------------------------- --- -------------- -------------- ------------ ------------
Analysis of charge in period
Current tax:
Current income tax expense on
profits for the period 4,124 2,716 11,727 5,383
Adjustment in respect of prior
periods (39) 502 (39) 502
---------------------------------------- -------------- -------------- ------------ ------------
Total current tax charge 4,085 3,218 11,688 5,885
Deferred tax:
Origination and reversal of
temporary differences (2,011) (768) (4,414) (3,228)
Deferred tax movements in respect
of prior periods - 5 - (260)
---------------------------------------- -------------- -------------- ------------ ------------
Total deferred tax credit (2,011) (763) (4,414) (3,488)
Total tax charge 2,074 2,455 7,274 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.
Q4 2022 Q4 2021 FY 2022 FY 2021
(unaudited) (unaudited) (audited) (audited)
------------------------------------- -------------- -------------- ------------ ------------
Loss attributable to equity holders
of the parent (GBP000) (9,561) (6,101) (32,087) (12,891)
Weighted average number of shares
in issue (thousands) 703,961 670,141 698,233 669,459
Basic loss per share (pence) (1.36) (0.91) (4.60) (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.
A total of 6,240,304 potential ordinary shares have not been
included within the calculation of statutory diluted loss per share
for the year (30 September 2021: 4,615,712). These potential
ordinary shares could dilute earnings/loss per share in the
future.
8. Loans and borrowings
FY 2022 FY 2021
All figures in GBP000's (audited) (audited)
---------------------------- --- ------------ ------------
Non-Current
2025 750m NOK Loan notes 61,054 -
2023 850m NOK Loan notes - 75,478
Bank borrowings 17,226 19,314
Lease liabilities 14,765 14,945
--------------------------------- ------------ ------------
93,045 109,737
-------------------------------- ------------ ------------
Current
Bank borrowings 5,569 1,612
Lease liabilities 11,522 9,042
--------------------------------- ------------ ------------
17,091 10,654
-------------------------------- ------------ ------------
Total loans and borrowings 110,136 120,391
--------------------------------- ------------ ------------
At 30 September 2022 the fair value of the unsecured floating
rate listed green bond of NOK 750m was not materially different to
the nominal value and has not been separately disclosed. At 30
September 2021 the fair value of 2023 850m NOK Loan notes was
GBP73,981,000.
On 27 September 2022, the Group successfully issued a new
unsecured floating rate listed green bond of NOK 750m. The bond
which matures in September 2025, has a coupon of three-month NIBOR
+ 6.50% p.a. with quarterly interest payments, and is to be listed
on the Oslo Stock Exchange. The proceeds were used to repay the NOK
850m floating rate listed bond, originally raised in June 2019.
A USD 15m Revolving Credit Facility ("RCF") has been provided by
DNB Bank ASA (50%) and HSBC UK Bank PLC (50%). At 30 September 2022
GBP4,000,000 was drawn on this facility. The facility was undrawn
at 30 September 2021.
8. Loans and borrowings (continued)
Benchmark Genetics Salten AS (formerly SalmoBreed Salten AS) had
the following loans (which are ring-fenced debt without recourse to
the remainder of the Group) at 30 September 2022:
- Term loan with a balance of NOK 165.6m (2021: NOK 180.0m)
provided by Nordea Bank Norge Abp. The loan is a five-year term
loan ending November 2023 at an interest rate of 2.5% above
three-month NIBOR.
- NOK 20.0m 12-month working capital facility provided by Nordea
Bank Norge Abp. This was undrawn at 30 September 2022 (2021:
undrawn).
- An additional NOK 17.5m overdraft facility was provided by
Nordea Bank Norge Abp during the year with maturity in December
2022. This facility was undrawn at 30 September 2022.
- Term loan with a balance of NOK 40.1m (2021: NOK 44.7m)
provided by Innovasjon Norge. The loan is a 12-and-a-half-year term
loan maturing in March 2031. The interest rate on this loan at 30
September 2022 was 4.95%. The interest rate on this loan is
variable.
- NOK 21.75m loan provided by Salten Aqua ASA (the minority
shareholder). The loan attracts interest at 2.5% above three-month
NIBOR and is repayable on maturity of the Nordea term loan
above.
Subsequent to the year end on 1 November 2022, the Nordea Bank
term loan above was refinanced together with an existing undrawn
overdraft facility into a new loan facility of NOK 179.5m with a
new maturity date in a further five years no later than 15 January
2028. Other terms remain the same.
Furthermore on 21 November 2022, the Group refinanced the USD15m
RCF with a secured GBP20m RCF provided by DNB Bank ASA, maturing on
27 June 2025. The margin on this facility is a minimum of 2.75% and
a maximum of 3.25%, dependent upon the leverage of the Group above
the relevant risk free reference or IBOR rates depending on which
currency is drawn.
The lease liabilities are secured on the assets to which they
relate.
9. Share capital and additional paid-in share capital
Additional
paid-in
Number Share Capital share capital
Allotted, called up and GBP000 GBP000
fully paid
------------------------------- ------------ -------------- ---------------
Ordinary shares of 0.1 pence
each
Balance at 30 September 2021 670,374,484 670 400,682
Shares issued through placing
and open offer 33,401,620 34 20,069
Exercise of share options 184,694 - 73
Balance at 30 September
2022 703,960,798 704 420,824
------------------------------- ------------ -------------- ---------------
During the year ended 30 September 2022, the Group issued a
total 184,694 ordinary shares of 0.1p 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
42.5p.
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 year ended 30 September 2021, the Group issued a
total of 2,152,600 ordinary shares of 0.1p each to certain
employees of the Group relating to share options, of which 426,182
were exercised at a price of 0.1 pence, 1,626,436 were exercised at
a price of 42.5 pence and 99,982 were exercised at a price of 58.5
pence.
During the prior year, contingent consideration totalling USD
450,000 (GBP333,000) became payable following the acquisition of
aquaculture breeding programmes centred on shrimp from Centro de
Investigación de la Acuicultura de Colombia Ceniacua on 11 August
2016. At the Group's discretion, the contingent consideration was
paid in ordinary shares in the Group and the Group therefore issued
536,272 ordinary shares of 0.1p each on 13 January 2021 to settle
this liability.
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
Q4 2022 Q4 2021 FY 2022 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
--------------------------------- --- -------------- -------------- ------------ ------------
Revenue 42,758 37,261 158,277 125,062
Cost of sales (18,625) (17,831) (75,149) (59,477)
-------------------------------------- -------------- -------------- ------------ ------------
Gross profit 24,133 19,430 83,128 65,585
Research and development
costs (2,028) (1,838) (6,691) (7,010)
Other operating costs (13,290) (10,195) (44,661) (38,221)
Depreciation and impairment (4,639) (3,309) (19,897) (8,359)
Amortisation of capitalised
development costs (615) (299) (2,165) (299)
Share of loss of equity
accounted investees net
of tax (57) (299) (595) (905)
-------------------------------------- -------------- -------------- ------------ ------------
Adjusted operating profit 3,504 3,490 9,119 10,791
Exceptional - restructuring,
disposal and acquisition
related items (423) 871 16 (184)
Amortisation and impairment
of intangible assets excluding
development costs (4,825) (3,875) (16,996) (15,984)
-------------------------------------- -------------- -------------- ------------ ------------
Operating (loss)/profit (1,744) 486 (7,861) (5,377)
-------------------------------------- -------------- -------------- ------------ ------------
Reconciliation of Loss Before Taxation to Adjusted Profit Before
Tax
Q4 2022 Q4 2021 FY 2022 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
--------------------------------- --- -------------- -------------- ------------ ------------
Loss before taxation (6,795) (3,245) (23,177) (9,179)
Exceptional - restructuring,
disposal and acquisition
related items 423 (871) (16) 184
Amortisation and impairment
of intangible assets excluding
development costs 4,825 3,875 16,996 15,984
-------------------------------------- -------------- -------------- ------------ ------------
Adjusted (loss)/profit
before tax (1,547) (241) (6,197) 6,989
-------------------------------------- -------------- -------------- ------------ ------------
10. Alternative performance measures and other metrics
(continued)
Other Metrics
Q4 2022 Q4 2021 FY 2022 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
---------------------------------- --- -------------- -------------- ------------ ------------
Total R&D Investment
Research and development
costs 2,028 1,838 6,691 7,010
Internal capitalised development
costs 112 1,351 1,708 4,813
-------------- ------------ ------------
Total R&D investment 2,140 3,189 8,399 11,823
--------------------------------------- -------------- -------------- ------------ ------------
Q4 2022 Q4 2021 FY 2022 FY 2021
All figures in GBP000's (unaudited) (unaudited) (audited) (audited)
---------------------------------- --- --------------- --------------- ------------- -------------
Adjusted EBITDA excluding fair
value movement in biological
assets
Adjusted EBITDA 8,758 7,098 31,181 19,449
Exclude fair value movement 848 (996) (1,595) (3,323)
--------------- --------------- ------------- -------------
Adjusted EBITDA excluding
fair value movement in biological
assets 9,606 6,102 29,586 16,126 16,126
--------------------------------------- --------------- --------------- ------------- -------------
Liquidity
A key financial covenant is a minimum liquidity of GBP10m,
defined as cash plus undrawn facilities.
30 September
2022
All figures in GBP000's (audited)
--------------------------- --------------
Cash and cash equivalents 36,399
Undrawn bank facility 9,398
45,797
--------------------------- --------------
The undrawn bank facility relates to the RCF facility. At 30
September 2022, GBP4,000,000 (2021: GBPnil) of the RCF was drawn,
leaving GBP9.4m undrawn (2021: GBP11.1m).
11. Net debt
Net debt is cash and cash equivalents less loans and
borrowings.
30 September 30 September
2022 2021
All figures in GBP000's (audited) (audited)
--------------------------------------- -------------- --------------
Cash and cash equivalents 36,399 39,460
Loans and borrowings (excluding lease
liabilities) - current (5,569) (1,612)
Loans and borrowings (excluding lease
liabilities) - non-current (78,280) (94,792)
Net debt excluding lease liabilities (47,450) (56,944)
---------------------------------------- -------------- --------------
Lease liabilities - current (11,522) (9,042)
Lease liabilities - non-current (14,765) (14,945)
---------------------------------------- -------------- --------------
Net debt (73,737) (80,931)
---------------------------------------- -------------- --------------
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