TIDMBMK
RNS Number : 2203R
Benchmark Holdings PLC
28 February 2023
28 February 2023
Information within this announcement is deemed by the Company to
constitute inside information under the Market Abuse Regulations
(EU) No. 596/2014
Benchmark Holdings plc
("Benchmark", the "Company" or the "Group")
Q1 Results
(Three months ended 31 December 2022)
Excellent start to the year with growth in all business areas
and significant uplift in Health
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 three months ended 31 December 2022 (the
"Period"), which constitute the first quarter for the fiscal year
("FY") 2023 . All Q1 FY22 and Q1 FY23 figures quoted in this
announcement are based on unaudited accounts.
Financial highlights
Continuation of consistent year-on-year growth in Revenue and
Adjusted EBITDA on a rolling twelve month basis
-- Q1 FY23 revenues were GBP54.5m, 36% ahead of the prior year (+29% CER)
o Genetics delivered strong revenue growth 41% above Q1 FY22,
driven primarily by higher sales of salmon eggs and harvest
revenues
o Advanced Nutrition also reported strong growth with revenues
19% above Q1 FY22, benefitting from continued positive trading and
forex movements
o Health reported excellent growth with revenues 80% above Q1
FY22, driven by increased adoption of Ectosan(R) Vet and
CleanTreat(R) and significantly higher sales of Salmosan(R) Vet
-- Q1 FY23 Adjusted EBITDA excluding fair value movements from
biological assets increased 61% (+56% CER) to GBP12.1m as a result
of higher revenues, higher asset utilisation and continued cost
discipline
o Notably, Adjusted EBITDA in Health increased substantially to
GBP4.1m in the quarter (Q1 FY22: GBP0.5m) demonstrating the
potential of this business area to deliver good profitability
o Group Adjusted EBITDA margin of 22% excluding fair value
movements from biological assets (Q1 FY22:19%)
-- Net operating loss of GBP0.1m (Q1 FY22: GBP1.5m loss)
-- Net loss of -GBP0.7m significantly reduced from prior year (Q1 FY22: -GBP5.1m)
-- Cash inflow from operating activities of GBP8.1m (Q1 FY22: inflow GBP1.1m)
-- Cash, liquidity and net debt all improved compared to the year end position :
o Cash of GBP42.8m and liquidity of GBP62.8m (cash and available
facility)
o Reduced net debt excluding lease liabilities of GBP37.9m (30
September 2022: GBP47.5m)
o Includes benefit of net proceeds from the fundraise in
December 2022 of GBP11.6m
Operational highlights
-- Advanced Nutrition - continued good performance despite
relative softness in the shrimp market
o Growth in all product areas
o Adjusted EBITDA margin in line with prior year at 23% (Q1
FY22: 23%) benefitting from success of new commercial focus, cost
discipline and ongoing actions to improve efficiency and asset
utilisation offsetting cost inflation
o Continued innovation with pre-launch of new artemia tool which
counts hatched Artemia
-- Genetics - Continued growth in salmon egg sales with record number of eggs sold
o 118m eggs sold in Q1 FY23 (Q1 FY22: 76m eggs) demonstrating
continued success in meeting increased customer demand supported by
recent investment in incubation unit in Iceland
o Temporary slowdown in commercialisation of shrimp genetics
(SPR shrimp) in order to refine product offering based on customer
feedback from first commercial cycle. Expect to relaunch commercial
effort in H2
o Post period end, acquisition of remaining 10.52% minority
interest in its subsidiary Benchmark Genetics Iceland, ensuring
Benchmark receives the full benefit from its successful salmon
genetics business in Iceland which represents 50% of the Group's
salmon egg capacity
o Exploring strategic alternatives for tilapia breeding
activities
-- Health - Significant increase in customer adoption of Ectosan(R) Vet and CleanTreat(R)
o Significant growth in customer adoption of Ectosan(R) Vet and
CleanTreat(R) with repeat orders and new client wins which resulted
in improved capacity utilisation and strong profitability
o Progress made towards development of new business model for
Ectosan(R) Vet and CleanTreat(R) aimed at reducing infrastructure
costs and capex
-- Timing of commercial launch of integrated wellboat projects
subject to availability and adoption of new large wellboats by
customers
-- Progress being made around Customer owned PSV's which
represent a viable alternative in the medium to long term
Oslo Børs listing
-- Progress towards listing on the Oslo Børs, the leading
seafood and aquaculture listing venue globally; ongoing shareholder
consultation on whether to maintain an AIM listing
Current trading and outlook
-- Strong Q1 FY23 performance and continued positive trading
post period end. Encouraging outlook for the full year
o Genetics - good visibility of revenues
o Advanced Nutrition - continuing positive performance despite
some softness in the shrimp market
o Health - increasing evidence of customer growing adoption of
Ectosan(R) Vet and CleanTreat(R)
Financial Summary
GBPm Q1 FY23 Q1 FY22 % AER % CER(**) FY22
(full
year)
Revenue 54.5 40.0 +36% +29% 158.3
--------- ---------- ------- ----------- --------
Adjusted
--------- ---------- ------- ----------- --------
Adjusted EBITDA(1) 11.0 7.4 +48% +44% 31.2
--------- ---------- ------- ----------- --------
Adj. EBITDA excluding
fair value movement
in biological asset 12.1 7.5 +61% +56% 29.6
--------- ---------- ------- ----------- --------
Adjusted Operating Profit(2) 5.7 2.5 +131% +127% 9.1
--------- ---------- ------- ----------- --------
Statutory
--------- ---------- ------- ----------- --------
Operating loss (0.1) (1.5) +92% +86% (7.9)
--------- ---------- ------- ----------- --------
Profit/(loss) before
tax 0.1 (3.7) +103% +114% (23.2)
--------- ---------- ------- ----------- --------
Loss for the period (0.7) (5.1) +87% +96% (30.5)
--------- ---------- ------- ----------- --------
Basic loss per share
(p) (0.18) (0.79) (4.60)
--------- ---------- ------- ----------- --------
Net debt(3) (61.4) (64.3) (73.7)
--------- ---------- ------- ----------- --------
Net debt excluding lease
liabilities (37.9) (43.1) (47.5)
--------- ---------- ------- ----------- --------
Business Area summary
GBPm Q1 FY23 Q1 FY22 % AER % CER(**) FY22
(full
year)
Revenue
--------- --------- ------- ----------- --------
Advanced Nutrition 22.7 19.1 +19% +4% 80.3
--------- --------- ------- ----------- --------
Genetics 21.4 15.2 +41% +42% 58.0
--------- --------- ------- ----------- --------
Health 10.4 5.8 +80% +80% 20.1
--------- --------- ------- ----------- --------
Adjusted EBITDA(1)
--------- --------- ------- ----------- --------
Advanced Nutrition 5.3 4.3 +23% +9% 19.0
--------- --------- ------- ----------- --------
Genetics 2.6 3.3 -21% -10% 16.0
--------- --------- ------- ----------- --------
* Genetics net of fair value movements in biological
assets 3.7 3.4 +11% +19% 14.4
--------- --------- ------- ----------- --------
Health 4.1 0.5 +643% +635% 0.1
--------- --------- ------- ----------- --------
*Constant exchange rate (CER) figures derived by retranslating
current year figures using previous year's foreign exchange
rates
(1) Adjusted EBITDA is EBITDA (earnings before interest, tax,
depreciation and amortisation and impairment), before exceptional
items
(2) Adjusted Operating Profit is operating gain or loss before
exceptional 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:
"Benchmark has had an excellent start to the year, again showing
a continuation of the consistent growth we have seen in revenues
and net operating profit on a twelve month rolling basis. This is
the result of a good performance in all our business areas. In
particular, it is pleasing to see traction in our Health business
driven by significantly higher adoption of our sea lice solutions,
contributing to a positive financial performance for the
quarter."
"We are making progress towards our goal of up-listing to the
Oslo Børs , the preeminent listing venue for aquaculture and
seafood companies globally. This will enable us to increase our
visibility with a dedicated group of analysts and investors."
"We are grateful to our existing shareholders for their support
through the years and we are committed to continuing to deliver
improved financial performance and strategic progress for the
benefit of all our stakeholders."
Analyst / investor presentation and webcast being held today
Trond Williksen, Chief Executive Officer and Septima Maguire,
Chief Financial Officer will host an in-person presentation for
analysts and institutional investors today at 9.00 am CET/8.00 am
UK time. The presentation will take place at Hotel Continental,
Stortingsgata 24/26, 0117 Oslo.
A live webcast of the presentation is available for analysts and
investors to join remotely at the following link:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20230228_7
Enquiries
For further information, please contact:
Benchmark Holdings plc benchmark@mhpgroup.com
Trond Williksen, CEO
Septima Maguire, CFO
Ivonne Cantu, Investor Relations
Numis (Broker and NOMAD) Tel: +44(0) 20 7260 1000
James Black, Freddie Barnfield, Duncan Monteith
MHP Tel: +44(0) 20 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 delivered excellent performance in the first three
months of the year translating into a 36% growth in revenue and 61%
growth in Adjusted EBITDA excluding fair value movements from
biological assets. Performance was good across all business areas,
with each business area reporting improved revenues and Adjusted
EBITDA excluding fair value movements from biological assets 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 29% and 56% respectively.
Other operating costs were GBP11.8m, a 18% increase from the
prior year (Q1 FY22: GBP9.9m) due to cost inflation and the impact
of forex movements. By business area, operating costs increased
more significantly in Genetics reflecting the investment in growth
vectors including SPR shrimp, tilapia and salmon in Chile. R&D
expenses for the Group of GBP1.6m were in line with the prior year.
Total R&D investment including capitalised development costs
was GBP1.6m (Q1 FY22: GBP2.3m), reflecting commercialisation of SPR
shrimp during the previous year for which costs are no longer
capitalised.
Adjusted EBITDA (excluding fair value movement from biological
assets) was GBP12.1m (Q1 FY22: GBP7.5m) 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 22% (Q1 FY22: 19%).
Depreciation and amortisation increased 13% from the comparative
period last year to GBP10.1m (Q1 FY22: GBP8.9m) as a result of
investment in the businesses and GBP0.5m impairment of intangible
assets in the Health business area which are no longer being
utilised. Exceptional costs incurred in the period of GBP1.0m (Q1
FY22: GBPnil) related to costs associated with the listing on
Euronext Growth Oslo and preparation for up-listing on the Oslo
stock exchange. However, despite these increased costs, the Group
reported only a small operating loss of GBP0.1m, a significant
improvement from the GBP1.5m loss in Q1 FY22.
Net finance income in the period was GBP0.2m (Q1 FY22: GBP2.2m
expense), with a GBP2.5m credit relating to the ineffectively
hedged portion of the movement in the fair value of derivate
instruments and a lower amortisation charge on capitalised
borrowing fees of GBP0.1m (Q1 FY22: GBP0.3m charge) offsetting the
increased interest charges (-GBP0.3m) following the refinancing
exercise.
The Group reported a small profit before tax of GBP0.1m (Q1
FY22: loss before tax GBP3.7m); the loss after tax for the period
was GBP0.7m (Q1 FY22: loss after tax GBP5.1m).
The Group's improved result translated in a significantly higher
net operating cash inflow from operating activities for the period
at GBP8.1m (Q1 FY22: inflow GBP1.1m). This was after an increase in
working capital of GBP0.8m and tax payments of GBP1.5m in the
period. Net cash used in investing activities was GBP2.2m (Q1 FY22:
GBP2.6m) of which capex was GBP1.9m (Q1 FY22: GBP2.5m). Capex in
the period related to investment in Genetics (GBP1.3m), Nutrition
(GBP0.4m) and in Health (GBP0.2m). Net cash inflow from financing
activities was GBP2.2m, with net proceeds from the fundraise in
December 2022 of GBP11.6m being offset by GBP4.4m repayment of
debt, GBP0.6m of capitalised borrowing fees, GBP2.2m of interest
paid and GBP2.2m of lease payments. Net increase in cash in the
quarter was GBP8.1m to leave the period end cash position at
GBP42.8m and l iquidity of GBP62.8m .
Advanced Nutrition
Advanced Nutrition revenues were GBP22.7m, up 19% with sales
higher in all product areas, also aided by favourable forex rates
in the period (revenues increased at CER by 4%). By product area,
sales of Artemia were +23%, Diets +10% and Health +27% higher than
Q1 FY22. Q1 FY23 Adjusted EBITDA was GBP5.3m, up by 23% reflecting
improved asset utilisation and ongoing cost discipline. Adjusted
EBITDA margin was consistent at 23% (Q1 FY22: 23%). Notably, the
Company's good performance in Advanced Nutrition was delivered
against a backdrop of soft market conditions entering into FY23
affected by weather conditions in Thailand, the presence of SHIV
virus in Indonesia and in Latin America by high fuel costs combined
with low farm gate prices.
Our continued growth in Advanced Nutrition revenues is a
reflection of our focused commercial effort which brings together
our market leading, high performing product portfolio, experienced
technical support and a quality oriented, reliable supply chain. We
continue to innovate both in our existing range and development of
new products and during the period we carried out a pre-launch of
our Artemia counter, adding to our suite of Artemia technologies to
improve customer experience. Examples of our customer-centric
commercial effort in the period include trials of our specialist
diets conducted by our global and regional technical experts
working together to optimise customer performance in Indonesia, and
artemia workshops conducted by our regional technical support and
local sales teams aimed at tailoring the use of artemia tools and
hatching protocols to individual customer needs.
Genetics
Genetics delivered revenues of GBP21.4m in Q1 FY23 (Q1 FY22:
GBP15.2m), reflecting a strong growth of 41% (+42% CER). This was
driven primarily by sales of salmon eggs and harvest income which
increased by 57% and 31%, respectively. Revenues from genetic
services, our consulting business were 14% ahead of Q1 FY22. There
was a slowdown in the commercial roll-out of the SPR shrimp as we
refine our product offering based on customer feedback in our first
year of trading. As a result, sales from SPR shrimp were 20% below
the prior year.
Adjusted EBITDA for Q1 FY23 (excluding fair value movements of
biological assets) was GBP3.7m, 11% ahead of the prior year (Q1
FY22: GBP3.4m), and at constant exchange rates, was 19% higher than
the prior year. The fair value movements on biological assets in
the quarter was a GBP1.1m reduction in value (Q1 FY22: GBP0.1m
reduction), so Adjusted EBITDA including fair value movements for
Q1 FY23 was GBP2.6m (Q1 FY22: GBP3.3m).
Post period end the Company announced the retirement of Jan-Emil
Johannessen, Head of Benchmark Genetics who will be succeeded by
Geir Olav Melingen, currently Commercial Director Salmon at
Benchmark, with effect from 1 June 2023. During his tenure Jan-Emil
has built a talented and experienced team capable of taking
Benchmark Genetics through the next phase of growth. Geir Olav
Melingen has extensive experience from leading roles in the
aquaculture industry including at MSD, as CEO of Fishguard and CEO
of the Bergen Aquarium. He has deep experience in fish health and
the salmon industry with a PhD in fish health from the University
of Bergen.
Health
Revenues in Q1 FY23 were GBP10.4m (Q1 FY22: GBP5.8m) as a result
of significantly increased customer uptake and sales of Ectosan(R)
Vet and CleanTreat(R) and significant growth in Salmosan Vet - our
well established sea lice treatment. Revenues from Ectosan(R) Vet
and CleanTreat(R) were GBP7.5m of which GBP1.7m was derived from
recharging vessel and fuel costs associated with the Ectosan(R) Vet
and CleanTreat(R) operations.
Revenues from Salmosan(R) Vet, our long-established sea lice
treatment were GBP2.9m (Q1 FY22: GBP1.3m) with significant growth
achieved in Canada, Norway and the Faroe Islands. Growth was driven
by a variation to the marketing label which supports a longer
product exposure, as well as enhanced engagement with customers
through our portfolio of sea lice solutions which can be used in
combination to address our customers' sea lice challenge.
The significant increase in revenues resulted in Adjusted EBITDA
of GBP4.1m in the quarter (Q1 FY22: GBP0.5m) demonstrating the
potential of this business area to deliver good profitability.
Operationally we continue to make improvements in the efficiency
of the delivery of our Ectosan(R) Vet and CleanTreat(R) solution
achieving a new record in the speed of water transfer between the
treatment wellboat and the CleanTreat(R) units, a key parameter for
our customers. Speed of water transfer is now approximately double
what it was at launch.
In the period we made progress towards a new business model for
Ectosan(R) Vet and CleanTreat(R) aimed at lowering the Company's
exposure to infrastructure costs by lowering capital intensity and
capital investment. The Company has established a partnership with
leading specialist wellboat equipment provider MMC and ship
designer SALT to capture opportunities to integrate its
CleanTreat(R) systems into new wellboats coming to the market. The
speed of adoption of a fully integrated solution on wellboats is
reliant on the availability and customer adoption of new large
wellboats. Customer owned PSV's/platforms are a viable alternative
to large wellboats in the medium to long term.
Oslo B ø rs uplisting and delisting from AIM
As previously announced at the end of FY22, the Company intends
to up-list from Euronext Growth Oslo to the Oslo Børs and we are
making progress towards this goal. Oslo is the leading listing
venue for aquaculture and seafood companies. There are 27 listed
companies in the seafood sector in Oslo while Benchmark is the only
pure play aquaculture company listed on the London Stock Exchange.
A listing on the Oslo Børs provides natural access to an important
pool of specialist investors best equipped to recognise the
Company's added value and growth potential. The Company is
conducting a consultation with shareholders on whether to maintain
a listing on AIM. The potential up-listing to the Oslo Børs and
delisting from AIM are subject to shareholder approval and market
conditions.
Current Trading and Outlook
Post period end the Company continues to perform well across all
business areas and the outlook for the full year is encouraging.
This reflects good visibility of revenues in Genetics, a positive
performance in Advanced Nutrition despite soft shrimp markets, and
increasing evidence of customer adoption for Ectosan(R) Vet and
CleanTreat(R) in Health.
Benchmark Holdings plc
Consolidated Income Statement for the period ended 31 December
2022
Q1 2023 Q1 2022 FY 2022
All figures in GBP000's Notes (unaudited) (unaudited) (audited)
-------------------------------------------- ------ -------------- -------------- ------------
Revenue 4 54,495 40,014 158,277
Cost of sales (30,268) (20,515) (75,149)
-------------------------------------------- ------
Gross profit 24,227 19,499 83,128
Research and development costs (1,563) (1,647) (6,691)
Other operating costs (11,753) (9,923) (44,661)
Share of profit/(loss) of equity-accounted
investees, net of tax 56 (504) (595)
-------------------------------------------- ------ -------------- -------------- ------------
Adjusted EBITDA(2) 10,967 7,425 31,181
Exceptional items 5 (972) - 16
-------------------------------------------- ------ -------------- -------------- ------------
EBITDA(1) 9,995 7,425 31,197
Depreciation and impairment (4,615) (4,495) (19,897)
Amortisation and impairment (5,502) (4,388) (19,161)
-------------------------------------------- ------ -------------- -------------- ------------
Operating loss (122) (1,458) (7,861)
Finance cost (7,286) (2,343) (20,057)
Finance income 7,508 119 4,741
-------------------------------------------- ------ -------------- -------------- ------------
Profit/(loss) before taxation 100 (3,682) (23,177)
Tax on loss 6 (779) (1,427) (7,274)
-------------------------------------------- ------ --------------
Loss for the period (679) (5,109) (30,451)
-------------------------------------------- ------ -------------- -------------- ------------
Loss for the period attributable
to:
- Owners of the parent (1,283) (5,357) (32,087)
- Non-controlling interest 604 248 1,636
-------------------------------------------- ------ --------------
(679) (5,109) (30,451)
-------------------------------------------- ------ -------------- -------------- ------------
Earnings per share
Basic loss per share (pence) 7 (0.18) (0.79) (4.60)
Diluted loss per share (pence) 7 (0.18) (0.79) (4.60)
-------------------------------------------- ------ -------------- -------------- ------------
1 EBITDA - Earnings before interest, tax, depreciation,
amortisation, and impairment
2 Adjusted EBITDA - EBITDA before exceptional items
Benchmark Holdings plc
Consolidated Statement of Comprehensive Income for the period
ended 31 December 2022
FY
Q1 2023 Q1 2022 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
------------------------------------------ --- -------------- -------------- ------------
Loss for the period (679) (5,109) (30,451)
Other comprehensive income
Items that are or may be reclassified
subsequently to profit or loss
Foreign exchange translation differences (18,040) (2,611) 47,606
Cash flow hedges - changes in fair
value (516) (134) 2,627
Cash flow hedges - reclassified
to profit or loss (113) 115 2,546
Total comprehensive income for
the period (19,348) (7,739) 22,328
----------------------------------------------- -------------- -------------- ------------
Total comprehensive income for
the period attributable to:
- Owners of the parent (19,751) (7,948) 20,326
- Non-controlling interest 403 209 2,002
-----------------------------------------------
(19,348) (7,739) 22,328
---------------------------------------------- -------------- -------------- ------------
The accompanying notes are an integral part of this consolidated
financial information.
Benchmark Holdings plc
Consolidated Balance Sheet as at 31 December 2022
31 December 31 December 30 September
2022 2021 2022
All figures in GBP000's Notes (unaudited) (unaudited) (audited)
------------------------------------------ ------ ------------- ------------- --------------
Assets
Property, plant and equipment 80,505 78,082 81,900
Right-of-use assets 23,883 23,062 27,034
Intangible assets 224,606 224,192 245,264
Equity-accounted investees 3,041 2,815 3,113
Other investments 15 15 15
Biological and agricultural assets 24,930 21,206 20,878
Trade and other receivables 422 - -
Non-current assets 357,402 349,372 378,204
------------------------------------------ ------ ------------- ------------- --------------
Inventories 28,222 21,343 29,813
Biological and agricultural assets 17,154 17,137 25,780
Trade and other receivables 51,159 43,267 56,377
Cash and cash equivalents 42,782 52,705 36,399
------------------------------------------ ------ ------------- ------------- --------------
Current assets 139,317 134,452 148,369
------------------------------------------ ------ ------------- --------------
Total assets 496,719 483,824 526,573
------------------------------------------ ------ ------------- ------------- --------------
Liabilities
Trade and other payables (35,254) (39,001) (44,324)
Loans and borrowings 8 (16,227) (6,872) (17,091)
Corporation tax liability (10,349) (6,936) (10,211)
Provisions (1,587) (557) (1,631)
------------------------------------------ ------ ------------- --------------
Current liabilities (63,417) (53,366) (73,257)
------------------------------------------ ------ ------------- ------------- --------------
Loans and borrowings 8 (87,958) (110,119) (93,045)
Other payables (4,369) (895) (8,996)
Deferred tax (25,105) (27,159) (27,990)
Non-current liabilities (117,432) (138,173) (130,031)
------------------------------------------ ------ ------------- ------------- --------------
Total liabilities (180,849) (191,539) (203,288)
------------------------------------------ ------ ------------- ------------- --------------
Net assets 315,870 292,285 323,285
------------------------------------------ ------ ------------- ------------- --------------
Issued capital and reserves attributable
to owners of the parent
Share capital 9 739 704 704
Additional paid-in share capital 9 432,423 420,754 420,824
Capital redemption reserve 5 5 5
Retained earnings (186,120) (159,269) (185,136)
Hedging reserve (1,332) (5,895) (703)
Foreign exchange reserve 59,866 27,893 77,705
Equity attributable to owners
of the parent 305,581 284,192 313,399
Non-controlling interest 10,289 8,093 9,886
------------------------------------------ ------
Total equity and reserves 315,870 292,285 323,285
------------------------------------------ ------ ------------- ------------- --------------
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
31 December 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 2022
(audited) 704 420,824 77,710 (703) (185,136) 313,399 9,886 323,285
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Comprehensive
income
for the period
(Loss)/profit
for the
period - - - - (1,283) (1,283) 604 (679)
Other
comprehensive
income - - (17,839) (629) - (18,468) (201) (18,669)
Total
comprehensive
income for
the period - - (17,839) (629) (1,283) (19,751) 403 (19,348)
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Contributions
by and
distributions
to owners
Share issue 35 12,985 - - - 13,020 - 13,020
Share issue
costs
recognised
through
equity - (1,386) - - - (1,386) - (1,386)
Share-based
payment - - - - 299 299 - 299
Total
contributions
by and
distributions
to owners 35 11,599 - - 299 11,933 - 11,933
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Total
transactions
with owners
of the
Company 35 11,599 - - 299 11,933 - 11,933
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
As at 31
December 2022
(unaudited) 739 432,423 59,871 (1,332) (186,120) 305,581 10,289 315,870
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
As at 1
October 2021
(audited) 670 400,682 30,470 (5,876) (154,231) 271,715 7,884 279,599
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Comprehensive
income
for the period
(Loss)/profit
for the
period - - - - (5,357) (5,357) 248 (5,109)
Other
comprehensive
income - - (2,572) (19) - (2,591) (39) (2,630)
Total
comprehensive
income for
the period - - (2,572) (19) (5,357) (7,948) 209 (7,739)
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Contributions
by and
distributions
to owners
Share issue 34 20,634 - - - 20,668 - 20,668
Share issue
costs
recognised
through
equity - (562) - - - (562) - (562)
Share-based
payment - - - - 319 319 - 319
Total
contributions
by and
distributions
to owners 34 20,072 - - 319 20,425 - 20,425
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
Total
transactions
with owners
of the
Company 34 20,072 - - 319 20,425 - 20,425
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
As at 31
December 2021
(unaudited) 704 420,754 27,898 (5,895) (159,269) 284,192 8,093 292,285
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
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 - - - - (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
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
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
--------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
*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 31
December 2022
Q1 2023 Q1 2022 FY 2022
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
---------------------------------------------------- ------------- ------------- -----------
Cash flows from operating activities
Loss for the period (679) (5,109) (30,451)
Adjustments for:
Depreciation and impairment of property, plant
and equipment 2,033 2,022 8,602
Depreciation and impairment of right-of-use
assets 2,582 2,473 11,295
Amortisation and impairment of intangible
fixed assets 5,502 4,388 19,161
Loss on sale of property, plant and equipment (37) - (43)
Finance income (7,508) (119) (319)
Finance costs 7,010 2,247 18,437
Increase in fair value of contingent consideration
receivable - - (1,203)
Share of (profit)/loss of equity-accounted
investees, net of tax (56) 504 595
Foreign exchange losses/(gains) 418 (9) (3,985)
Share-based payment expense 299 319 1,182
Other adjustments for non-cash items - - (276)
Tax charge 779 1,427 7,274
Decrease/(increase) in trade and other receivables 4,011 2,683 (8,511)
Decrease/(increase) in inventories 1,571 (880) (5,406)
Decrease/(increase) in biological and agricultural
assets 3,294 (138) (6,099)
(Decrease)/increase in trade and other payables (9,633) (7,687) 6,946
(Decrease)/increase in provisions (9) (6) 1,058
---------------------------------------------------- ------------- ------------- -----------
9,577 2,115 18,257
Income taxes paid (1,509) (981) (7,447)
---------------------------------------------------- ------------- ------------- -----------
Net cash flows generated from operating activities 8,068 1,134 10,810
---------------------------------------------------- ------------- ------------- -----------
Investing activities
Purchase of investments (63) - (378)
Receipts from disposal of investments - - 1,544
Purchases of property, plant and equipment (1,829) (1,914) (10,808)
Purchase of intangibles (30) (53) (205)
Capitalised research and development costs (54) (627) (1,708)
Cash advances and loans made to other parties (415) - -
Proceeds from sale of fixed assets 75 - 220
Interest received 160 19 119
Net cash flows used in investing activities (2,156) (2,575) (11,216)
---------------------------------------------------- ------------- ------------- -----------
Financing activities
Proceeds of share issues 13,020 20,712 20,737
Share-issue costs recognised through equity (1,386) (607) (562)
Proceeds from bank or other borrowings - - 67,939
Repayment of bank or other borrowings (4,397) (638) (74,874)
Interest and finance charges paid (2,211) (1,882) (9,629)
Capitalised borrowing costs (600) - -
Repayments of lease liabilities (2,200) (2,730) (10,533)
---------------------------------------------------- ------------- -----------
Net cash inflow/(outflow) from financing
activities 2,226 14,855 (6,922)
---------------------------------------------------- ------------- ------------- -----------
Net increase/(decrease) in cash and cash
equivalents 8,138 13,414 (7,328)
Cash and cash equivalents at beginning of
period 36,399 39,460 39,460
Effect of movements in exchange rate (1,755) (169) 4,267
---------------------------------------------------- ------------- -----------
Cash and cash equivalents at end of period 42,782 52,705 36,399
---------------------------------------------------- ------------- ------------- -----------
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 31 December 2022
1. Basis of preparation
Benchmark Holdings plc (the 'Company') is a company incorporated
and domiciled in the United Kingdom. These consolidated quarterly
financial statements as at and for the three months ended 31
December 2022 comprises those of the Company and its subsidiaries
(together referred to as the 'Group').
These consolidated quarterly financial statements do not
comprise statutory accounts within the meaning of section 434 of
the Companies Act 2006 and are unaudited. These financial
statements 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. The Group's last annual statutory financial
statements as at and for the year ended 30 September 2022 were
prepared in accordance with UK adopted international accounting
standards in conformity with the requirements of the Companies Act
2006 as it applies to companies reporting under those standards
("Adopted IFRS") and are available from the Company's website at
www.benchmarkplc.com .
The prior year comparatives are derived from audited financial
information for Benchmark Holdings PLC Group as set out in the
Annual Report and Accounts for the year ended 30 September 2022 and
the unaudited financial information in the Quarterly Financial
Report for the three months ended 31 December 2021. The comparative
figures for the financial year ended 30 September 2022 are not the
Company's statutory accounts for that financial year. Those
accounts were approved by the Directors on 30 November 2022 and
have been delivered to the Registrar of Companies. The audit report
received on those accounts was (i) unqualified and (ii) did not
include a reference to any matters to which the external auditor
drew attention by way of emphasis without qualifying their report,
and (iii) did not contain a statement under section 498(2) or (3)
of the Companies Act 2006.
Statement of Compliance
These consolidated quarterly financial statements have been
prepared in accordance with UK and EU adopted IAS 34 'Interim
Financial Reporting'. These financial statements do not include all
of the information required for the full annual financial
statements and should be read in conjunction with the Group's last
annual consolidated financial statements as at and for the year
ended 30 September 2022. These consolidated quarterly financial
statements were approved by the Board of Directors on 28 February
2022.
Going concern
The Group's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Management Report.
As at 31 December 2022 the Group had net assets of GBP315.9m (30
September 2022: GBP323.3m), including cash of GBP42.8m (30
September 2022: GBP36.4m) as set out in the consolidated balance
sheet. The Group made a loss for the period of GBP0.7m (year ended
30 September 2022: loss GBP30.5m).
As noted in the Management Report, the business has continued to
perform well on the back of a good year in FY22. All of the
business areas have performed in line with or ahead of management
expectations. 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.
Following the refinancing of its NOK 850 million bond with the
issue of a NOK 750 million unsecured green bond maturing in 2025 in
FY22, which was due to mature in June 2023, the USD15m RCF was
refinanced in the quarter with a new GBP20m RCF with a maturity of
June 2025. Also in the quarter, 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, 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 is experiencing 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 continues to show
resilience against these pressures, 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 sensitivity 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.
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 the 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 critical
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 and
technical services.
-- Advanced Nutrition - manufactures and provides technically
advanced nutrition and health products to the global aquaculture
industry.
-- Health - provides health products and services to the global aquaculture market.
In order to reconcile the segmental analysis to the consolidated
income statement, corporate and inter-segment sales are also shown.
Corporate sales represent revenues earned from recharging certain
central costs to the operating business areas, together with
unallocated central costs.
Measurement of operating segment profit or loss
Inter-segment sales are priced along the same lines as sales to
external customers, with an appropriate discount being applied to
encourage use of Group resources at a rate acceptable to local tax
authorities. This policy was applied consistently throughout the
current and prior period.
Reconciliations of segmental information to IFRS measures
Segmental Revenue
Q1 2023 Q1 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
---------------------------- --------------- --------------- -------------
Genetics 21,439 15,195 58,008
Advanced Nutrition 22,680 19,059 80,286
Health 10,385 5,777 20,135
Corporate 1,437 1,406 5,120
Inter-segment sales (1,446) (1,423) (5,272)
Total 54,495 40,014 158,277
---------------------------- --------------- --------------- -------------
Segmental Adjusted EBITDA
Q1 2023 Q1 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
---------------------------- --------------- --------------- -------------
Genetics 2,563 3,263 15,980
Advanced Nutrition 5,297 4,320 19,017
Health 4,067 547 108
Corporate (960) (705) (3,924)
Total 10,967 7,425 31,181
---------------------------- --------------- --------------- -------------
Reconciliation of Reportable Segments Adjusted
EBITDA to Loss before taxation
------------------------------------------------- --------------- ------------------------------
Q1 FY
2023 Q1 2022 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
------------------------------------------------- --------------- --------------- -------------
Total reportable segment Adjusted EBITDA 11,927 8,130 35,105
Corporate Adjusted EBITDA (960) (705) (3,924)
------------------------------------------------- --------------- --------------- -------------
Adjusted EBITDA 10,967 7,425 31,181
Exceptional items (972) - 16
Depreciation and impairment (4,615) (4,495) (19,897)
Amortisation and impairment (5,502) (4,388) (19,161)
Net finance income/(costs) 222 (2,224) (15,316)
Profit/(loss) before taxation 100 (3,682) (23,177)
------------------------------------------------- --------------- --------------- -------------
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 31 December 2022 (unaudited)
---------------- --------------------------------------------------------------------------
All figures Advanced Inter-segment
in GBP000's Genetics Nutrition Health Corporate sales Total
---------------- ---------- ------------ -------- ----------- --------------- --------
Sale of goods 21,121 22,672 7,449 - - 51,242
Provision of
services 317 - 2,936 - - 3,253
Inter-segment
sales 1 8 - 1,437 (1,446) -
---------------- ---------- ------------ -------- ----------- --------------- --------
21,439 22,680 10,385 1,437 (1,446) 54,495
---------------- ---------- ------------ -------- ----------- --------------- --------
3 months ended 31 December 2021 (unaudited)
---------------- --------------------------------------------------------------------------
All figures Advanced Inter-segment
in GBP000's Genetics Nutrition Health Corporate sales Total
---------------- ---------- ------------ -------- ----------- --------------- --------
Sale of goods 14,509 19,048 3,251 - - 36,808
Provision of
services 680 - 2,526 - - 3,206
Inter-segment
sales 6 11 - 1,406 (1,423) -
---------------- ---------- ------------ -------- ----------- --------------- --------
15,195 19,059 5,777 1,406 (1,423) 40,014
---------------- ---------- ------------ -------- ----------- --------------- --------
12 months ended 30 September 2022 (audited)
---------------- --------------------------------------------------------------------------
All figures Advanced Inter-segment
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
---------------- ---------- ------------ -------- ----------- --------------- --------
Sale of goods and provision of services (continued)
Primary geographical markets
3 months ended 31 December 2022 (unaudited)
----------------- -------------------------------------------------------------------------
All figures Advanced Inter-segment
in GBP000's Genetics Nutrition Health Corporate sales Total
----------------- ---------- ------------ -------- ----------- --------------- -------
Norway 16,884 90 8,295 - - 25,269
India - 4,203 - - - 4,203
Singapore - 39 - - - 39
Turkey 6 2,204 - - - 2,210
Ecuador 20 1,740 - - - 1,760
Greece - 2,269 - - - 2,269
Faroe Islands 1,095 - 229 - - 1,324
UK 737 19 42 - - 798
Chile 12 2 254 - - 268
Rest of Europe 2,062 1,622 - - - 3,684
Rest of World 622 10,484 1,565 - - 12,671
Inter-segment
sales 1 8 - 1,437 (1,446) -
21,439 22,680 10,385 1,437 (1,446) 54,495
----------------- ---------- ------------ -------- ----------- --------------- -------
3 months ended 31 December 2021 (unaudited)
----------------- -------------------------------------------------------------------------
All figures Advanced Inter-segment
in GBP000's Genetics Nutrition Health Corporate sales Total
----------------- ---------- ------------ -------- ----------- --------------- -------
Norway 9,679 112 4,668 - - 14,459
India 140 4,008 - - - 4,148
Singapore - 1,138 - - - 1,138
Turkey - 1,694 - - - 1,694
Ecuador - 1,064 - - - 1,064
Greece - 1,639 - - - 1,639
Faroe Islands 892 1 130 - - 1,023
UK 1,957 14 88 - - 2,059
Chile 116 - 403 - - 519
Rest of Europe 1,771 1,303 - - - 3,074
Rest of World 634 8,075 488 - - 9,197
Inter-segment
sales 6 11 - 1,406 (1,423) -
15,195 19,059 5,777 1,406 (1,423) 40,014
----------------- ---------- ------------ -------- ----------- --------------- -------
Primary geographical markets (continued)
12 months ended 30 September 2022 (audited)
----------------- --------------------------------------------------------------------------
All figures in Advanced Inter-segment
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
----------------- ---------- ------------ -------- ----------- --------------- --------
5. Exceptional items
Items that are material because of their size or nature,
non-recurring and whose significance is sufficient to warrant
separate disclosure and identification within the consolidated
financial statements are referred to as exceptional items. The
separate reporting of exceptional items helps to provide an
understanding of the Group's underlying performance.
Q1 2023 Q1 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
----------------------------- --- -------------- -------------- ------------
Exceptional restructuring
costs 948 - 1,229
Costs/(credit) in relation
to disposals 24 - (1,245)
Total exceptional items 972 - (16)
---------------------------------- -------------- -------------- ------------
Exceptional restructuring costs include GBP863,000 of legal and
professional costs in relation to preparing for listing the Group
on the Oslo stock exchange, and GBP85,000 relating to other
restructuring costs. The comparative figure for FY 2022 figure
includes GBP843,000 of legal and professional costs in relation to
preparing for listing the Group on the Oslo stock exchange, and
GBP276,000 relating to other restructuring costs.
Costs in relation to disposals totaling GBP24,000 are additional
costs relating to disposals that occurred in 2020. The comparative
figure for FY 2022 figure includes a credit of GBP1,203,000 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) totalling GBP42,000
relating to additional costs and disposals proceeds relating to
disposals that occurred in 2020.
6. Taxation
Q1 2023 Q1 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
--------------------------------------- --- -------------- -------------- ------------
Analysis of charge in period
Current tax:
Current income tax expense on profits
for the period 1,838 2,359 11,727
Adjustment in respect of prior
periods - 5 (39)
-------------------------------------------- -------------- -------------- ------------
Total current tax charge 1,838 2,364 11,688
Deferred tax:
Origination and reversal of temporary
differences (1,059) (937) (4,414)
Deferred tax movements in respect
of prior periods - - -
--------------------------------------- --- -------------- -------------- ------------
Total deferred tax credit (1,059) (937) (4,414)
-
--------------------------------------- --- -------------- -------------- ------------
Total tax charge 779 1,427 7,274
-------------------------------------------- -------------- -------------- ------------
7. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary equity holders of the Company by the
weighted average number of ordinary shares in issue during the
period.
Q1 2023 Q1 2022 FY 2022
(unaudited) (unaudited) (audited)
---------------------------------------- -------------- -------------- ------------
Loss attributable to equity holders of
the parent (GBP000) (1,283) (5,357) (32,087)
Weighted average number of shares in
issue (thousands) 710,087 681,271 698,233
Basic loss per share (pence) (0.18) (0.79) (4.60)
---------------------------------------- -------------- -------------- ------------
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 4,053,469 potential ordinary shares have not been
included within the calculation of statutory diluted loss per share
for the year (30 September 2022: 6,240,304 and 31 December 2021:
5,782,581). These potential ordinary shares could dilute
earnings/loss per share in the future.
8. Loans and borrowings
Q1 2023 Q1 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
---------------------------- -------------- -------------- ------------
Non-Current
2025 750m NOK Loan notes 61,866 - 61,054
2023 850m NOK Loan notes - 75,592 -
Bank borrowings 17,201 18,578 17,226
Lease liabilities 8,891 15,949 14,765
---------------------------- ------------
87,958 110,119 93,045
---------------------------- -------------- -------------- ------------
Current
Bank borrowings 1,603 1,592 5,569
Lease liabilities 14,624 5,280 11,522
---------------------------- ------------
16,227 6,872 17,091
---------------------------- -------------- -------------- ------------
Total loans and borrowings 104,185 116,991 110,136
---------------------------- -------------- -------------- ------------
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 its
existing NOK 850m floating rate listed bond, originally raised in
June 2019.
On 21 November 2022, the Group refinanced its USD15m RCF, which
was provided by DNB Bank ASA (50%) and HSBC UK Bank PLC (50%), 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 facility was undrawn at 31 December
2022.
Additionally, during the period, on 1 November 2022, the Group's
Nordea Bank term loan of NOK 165.6m, which had a term loan of five
years ending in November 2023 and interest rate of 2.5% above three
month NIBOR, 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 of this facility remain the same.
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 2022 703,960,798 704 420,824
Shares issued through placing and open offer 35,189,350 35 11,599
Exercise of share options 45,000 - -
Balance at 31 December 2022 739,195,148 739 432,423
---------------------------------------------- ------------ --------- -----------
On 15 December 2022, the Company issued 35,189,350 new ordinary
shares of 0.1 pence each by way of a placing and subscriptions at
an issue price of 37.0 pence per share. Gross proceeds of GBP13.0m
were received for the placing and subscription shares.
Non-recurring costs of GBP1.4m 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 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 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 as reconciled below. These measures are not
defined performance measures in IFRS. The Group's definition of
these measures may not be comparable with similarly titled
performance measures and disclosures by other entities.
Reconciliation of Adjusted Operating Profit to Operating
Loss
Q1 2023 Q1 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
------------------------------------------- --- -------------- -------------- ------------
Revenue 54,495 40,014 158,277
Cost of sales (30,268) (20,515) (75,149)
------------------------------------------------ -------------- -------------- ------------
Gross profit 24,227 19,499 83,128
Research and development costs (1,563) (1,647) (6,691)
Other operating costs (11,753) (9,923) (44,661)
Depreciation and impairment (4,615) (4,495) (19,897)
Amortisation of capitalised development
costs (617) (448) (2,165)
Share of loss of equity accounted
investees net of tax 56 (504) (595)
------------------------------------------------ -------------- -------------- ------------
Adjusted operating profit 5,735 2,482 9,119
Exceptional items (972) - 16
Amortisation and impairment of intangible
assets excluding development costs (4,885) (3,940) (16,996)
------------------------------------------------ -------------- -------------- ------------
Operating loss (122) (1,458) (7,861)
------------------------------------------------ -------------- -------------- ------------
Reconciliation of Loss Before Taxation to Adjusted Profit Before
Tax
Q1 2023 Q1 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
------------------------------------------ --- -------------- -------------- ------------
Profit/(loss) before taxation 100 (3,682) (23,177)
Exceptional items 972 - (16)
Amortisation and impairment of
intangible assets excluding development
costs 4,885 3,940 16,996
----------------------------------------------- -------------- -------------- ------------
Adjusted profit before tax 5,957 258 (6,197)
----------------------------------------------- -------------- -------------- ------------
Other Metrics
Q1 2023 Q1 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
---------------------------------- --- -------------- -------------- ------------
Total R&D Investment
Research and development costs 1,563 1,647 6,691
Internal capitalised development
costs 54 627 1,708
-------------- ------------
Total R&D investment 1,617 2,274 8,399
--------------------------------------- -------------- -------------- ------------
Q1 2023 Q1 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
-------------------------------------- --- --------------- --------------- -------------
Adjusted EBITDA excluding fair value
movement in biological assets
Adjusted EBITDA 10,967 7,425 31,181
Exclude fair value movement 1,154 96 (1,595)
--------------- --------------- -------------
Adjusted EBITDA excluding fair value
movement in biological assets 12,121 7,521 29,586
------------------------------------------- --------------- --------------- -------------
Liquidity
A key financial covenant is a minimum liquidity of GBP10m,
defined as cash plus undrawn facilities.
31 December
2022
All figures in GBP000's (unaudited)
--------------------------- -------------
Cash and cash equivalents 42,782
Undrawn bank facility 20,000
62,782
--------------------------- -------------
The undrawn bank facility relates to the RCF facility. At 31
December 2022, GBPnil of the RCF was drawn (30 September 2022:
GBP4m and 31 December 2021: GBPnil), leaving GBP20m undrawn (30
September 2022: GBP9.4m and 31 December 2021: GBP11.1m).
11. Net debt
Net debt is cash and cash equivalents less loans and
borrowings.
31 December 31 December 30 September
2022 2021 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
-------------------------------------- ------------- ------------- --------------
Cash and cash equivalents 42,782 52,705 36,399
Loans and borrowings (excluding
lease liabilities) - current (1,603) (1,592) (5,569)
Loans and borrowings (excluding
lease liabilities) - non-current (79,067) (94,170) (78,280)
Net debt excluding lease liabilities (37,888) (43,057) (47,450)
--------------------------------------- ------------- ------------- --------------
Lease liabilities - current (14,624) (5,280) (11,522)
Lease liabilities - non-current (8,891) (15,949) (14,765)
--------------------------------------- ------------- ------------- --------------
Net debt (61,403) (64,286) (73,737)
--------------------------------------- ------------- ------------- --------------
12. Post balance sheet events
On 15 February 2023, the Group purchased the minority interest's
shareholding of 14,981,272 shares in Benchmark Genetics Iceland HF
for EUR9,000,000. Following this acquisition, Benchmark Genetics
Limited, a subsidiary of Benchmark Holdings PLC, now owns 100% of
the share capital of Benchmark Genetics Iceland HF.
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