TIDMBMK
RNS Number : 2677A
Benchmark Holdings PLC
23 May 2023
Information within this announcement is deemed by the Company to
constitute inside information under the Market Abuse Regulations
(EU) No. 596/2014 and Article 7 of the UK version of EU Regulation
596/2014 which forms part of UK law by virtue of the European Union
(Withdrawal) Act 2018.
23 May 2023
Benchmark Holdings plc
("Benchmark", the "Company" or the "Group")
Second Quarter and Interim results for the six months ended 31
March 2023
Strong Q2 and H1 results continuing track record of quarterly
growth and strategic delivery
Benchmark (LSE: BMK), the aquaculture biotechnology company,
announces its unaudited interim results for the six months ended 31
March 2023 (the "Period" or "H1 FY23"). The Company also announces
its unaudited results for the three months ended 31 March 2023 ("Q2
FY23") in compliance with the terms of its unsecured Green
bond.
Financial highlights
-- Excellent H1 FY23 results driven by good performance in all business areas:
o 25% growth in revenues to GBP98.9m (H1 FY22: GBP79.2m)
o 39% increase in Adj. EBITDA to GBP22.1m (H1 FY22:
GBP15.9m)
o 47% increase in Adj. EBITDA excluding fair value ("FV")
movement in biological assets to GBP21.8m (H1 FY22: GBP14.8m):
-- Adj. EBITDA margin excluding FV movement in biological assets
increased to 22% (H1 FY22: 19%)
o 193% increase in Adj. Operating profit excluding FV movement
in biological assets to GBP11.4m (H1 FY22: GBP3.9m)
o Further reduction in loss before tax
o Operating cash inflow GBP9.5m (H1 FY22: cash inflow of
GBP2.0m)
-- Strong Q2 FY23 performance building on track record of continuous quarterly improvement:
o Revenues +13% to GBP44.4m (Q2 FY22: GBP39.2m)
o Adj. EBITDA +32% to GBP11.1m (Q2 FY22: GBP8.4m); Adj. EBITDA
margin of 25% in line with medium term target set in May 2022
o Adj. EBITDA excluding FV movement in biological assets +32% to
GBP9.7m (Q2 FY22: GBP7.3m); Adj. EBITDA margin excluding FV
movement in biological assets of 22% (Q2 2022: 19%)
o Adj. Operating profit excluding fair value movement in
biological assets +244% to GBP4.5m (Q2 FY22: GBP1.3m)
-- Net debt (excluding lease liabilities) continues to reduce to
GBP44.5m (30 September 2022: GBP47.5m; 31 March 2022:
GBP50.6m):
o Cash of GBP41.9m and liquidity (cash and available facility)
of GBP53.9m at 22 May 2023
Business Area highlights
-- Genetics - strong performance in core salmon business and strategic progress in growth areas:
o H1 FY23 Revenues +30% driven by higher salmon sales from
Norway and Iceland; 181m salmon eggs sold (H1 FY22: 134m)
o Continued commercial progress in Chile with new customer
wins
o Obtained "disease free compartment status" from the Chilean
regulator, an important biosecurity endorsement which will enable
the Company to export salmon eggs from Chile
o Completed configuration at Salten, Norway facility to reach
150m salmon eggs production capacity from FY24 (currently 140m),
ahead of plan
o Total salmon egg capacity now 400m eggs, comprising 150m in
Norway, 200m in Iceland and 50m in Chile
o Strengthened scientific team to progress positioning on new
technologies; enhanced genotyping capabilities
-- Advanced Nutrition - strong performance despite soft shrimp
markets demonstrates success of commercial focus and agile
operation:
o Marginally lower revenues in Q2 FY23 albeit 8% higher revenues
for H1 FY23 as a whole
o Strong performance in marine fish species which represent
c.25% of revenues
o Uplift in shrimp market expected as inventory levels normalise
along the global supply chain and consumer confidence improves
-- Health - strong result from combined sea lice product
portfolio and integrated commercial team:
o Continuing adoption of Ectosan(R) Vet and CleanTreat(R)
supported by excellent efficacy resulting in H1 FY23 sales of
GBP12.9m, up 50% on last year
o Progress on development of streamlined integrated
CleanTreat(R) infrastructure with partners MMC and Salt Ship
Design
o Strong sales of Salmosan(R) Vet driven by success of new
marketing label
Current trading and outlook
-- On track to deliver strong growth for the year in line with market expectations:
o Good visibility of salmon egg sales from Norway and
Iceland
o Market conditions in shrimp are expected to remain unchanged
in the short term; well positioned for resilience and market share
wins. Positive backdrop in the Mediterranean marine fish market
o Expect Q3 FY23 sales from Ectosan(R) Vet and CleanTreat(R) to
reflect low sea lice treatment season, thereafter increasing in Q4
FY23
-- Update on Oslo Børs uplisting:
o Consultation with shareholders regarding a potential delisting
from AIM and uplisting to Oslo Børs completed
o Plan to maintain a dual listing on Euronext Growth Oslo and on
AIM for the foreseeable future . Uplisting to Oslo Børs will be
reviewed as part of ongoing strategy to enhance Group positioning
and share performance
GBPm % CER % CER
H1 FY23 H1 FY22 H1 FY23 Q2 FY23 Q2 FY22 Q2 FY23
----------------------------- ---------- ---------- --------- ---------- -------- ---------
98.9 44.4
Revenue +25% 79.2 +19% +13% 39.2 +9%
----------------------------- ---------- ---------- --------- ---------- -------- ---------
Adjusted
----------------------------- ---------- ---------- --------- ---------- -------- ---------
22.1 11.1
Adjusted EBITDA(1) +39% 15.9 +36% +32% 8.4 +28%
----------------------------- ---------- ---------- --------- ---------- -------- ---------
Adj. EBITDA excluding
biological asset fair 21.8 9.7
value movements +47% 14.8 +42% +32% 7.3 +28%
----------------------------- ---------- ---------- --------- ---------- -------- ---------
Adjusted Operating 11.7 5.9
profit(2) +138% 4.9 +130% +145% 2.4 +134%
----------------------------- ---------- ---------- --------- ---------- -------- ---------
Adj. Operating profit
excluding biological 11.4 4.5
asset fair value movements +193% 3.9 180% +244% 1.3 220%
----------------------------- ---------- ---------- --------- ---------- -------- ---------
Statutory
----------------------------- ---------- ---------- --------- ---------- -------- ---------
0.3 0.4
Operating profit/(loss) +114% (2.2) +97% +159% (0.7) +122%
----------------------------- ---------- ---------- --------- ---------- -------- ---------
(1.9) (2.0)
Loss before tax +63% (5.1) +65% - 38% (1.5) -56%
----------------------------- ---------- ---------- --------- ---------- -------- ---------
Basic loss per share
(p) (0.57) (1.32) (0.40) (0.54)
----------------------------- ---------- ---------- --------- ---------- -------- ---------
Net debt(3) (66.3) (81.4) (66.3) (81.4)
----------------------------- ---------- ---------- --------- ---------- -------- ---------
Net debt(3) excluding
lease liabilities (44.5) (50.6) (44.5) (50.6)
----------------------------- ---------- ---------- --------- ---------- -------- ---------
Business Area summary
GBPm %CER* % CER*
H1 FY23 H1 H1 FY23 Q2 Q2 Q2
FY22 FY23 FY22 FY23
Revenue
--------- ------- -------- ------- -------- -----------
45.3 22.6
Advanced Nutrition +8% 42.0 -4% -1% 23.0 -10%
--------- ------- -------- ------- -------- -----------
34.5 13.0
Genetics +30% 26.6 +31% +14% 11.4 +16%
--------- ------- -------- ------- -------- -----------
19.1 8.7
Health +78% 10.7 +79% +77% 4.9 +78%
--------- ------- -------- ------- -------- -----------
Adjusted EBITDA(1)
--------- ------- -------- ------- -------- -----------
Advanced Nutrition 11.5 11.5 -9% 6.2 7.2 -21%
0% -14%
--------- ------- -------- ------- -------- -----------
Genetics 6.0 5.7 +16% 3.4 2.4 +51%
5% +41%
--------- ------- -------- ------- -------- -----------
5.7 2.0
* Net of fair value movements in biological assets +22% 4.7 +32% +52% 1.3 +67%
--------- ------- -------- ------- -------- -----------
6.6 2.6
Health +7,034% 0.1 +6,957% +669% (0.5) +663%
--------- ------- -------- ------- -------- -----------
*Constant exchange rate (CER) figures derived by retranslating
current year figures using previous year's foreign exchange
rates
(1) Adjusted EBITDA is EBITDA (earnings before interest, tax,
depreciation and amortisation and impairment), before exceptional
items including acquisition related expenditure
(2) Adjusted Operating Profit is operating loss before
exceptional items including acquisition related items and
amortisation of intangible assets excluding development costs
(3) Net debt is cash and cash equivalents less loans and
borrowings
Trond Williksen, CEO, commented:
"Benchmark had an excellent first half, delivering double digit
growth. We continue to focus on achieving profitability and cash
generation whilst making good progress towards our medium-term
objectives; we remain on track to deliver strong growth for the
year in line with market expectations .
" Our fundamentals are strong and we have significant
opportunities to continue building our track record of consistent
growth. Aquaculture is a growth industry, supported by robust
megatrends. Benchmark is well positioned to play an important role
in helping the aquaculture industry deliver sustainable growth and
meet the needs of a rising population."
Presentation for analysts and institutional investors at 08.00
UK time (09.00 CET)
Trond Williksen, Chief Executive Officer and Septima Maguire,
Chief Financial Officer will host a presentation for analysts and
institutional investors on the day at 08.00 UK time.
The presentation will be held in person at Pareto Securities
offices in Oslo at Dronning Mauds gate 3, N--0250 Oslo, Norway. If
you would like to attend in person, please contact Thea Naess at
thea.naess@paretosec.com.
A live webcast of the presentation will be available for
analysts and investors to join remotely at the following link:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20230523_3
A copy of the presentation can be found on the Company's website
https://www.benchmarkplc.com/investors/reports-presentations/
Equity Development webcast at 12.00 UK time
Trond Williksen, Chief Executive Officer and Septima Maguire,
Chief Financial Officer will host a second webcast for retail
investors and wealth managers on the day at 12.00 UK time. The
webcast is open to all existing and potential shareholders.
To register please visit:
https://www.equitydevelopment.co.uk/news-and-events/benchmark-
2qresults-presentation-23may2023
A recording of the presentation will be available after the
event on the Equity Development website .
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: 020 7260 1000
Freddie Barnfield, Duncan Monteith, Sher
Shah
MHP Tel: 020 3128 899
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, animal health and
welfare.
Through a global footprint in 26 countries and a broad portfolio
of products and solutions, Benchmark addresses the major
aquaculture species in all the major aquaculture regions around the
world. Find out more at www.benchmarkplc.com
Management Report
Benchmark delivered an excellent performance in the first half
of the year continuing to build on its track record of consistent
quarterly increase in revenues and underlying profitability.
Revenues were up 25% (19% at constant currency) reaching GBP98.9m,
and Adjusted EBITDA excluding fair value movements from biological
assets at GBP21.8m was up 47% (42% at constant currency) against H1
FY22, translating into an Adjusted EBITDA margin excluding fair
value movements of 22% (H1 FY22: 19%) . Adjusted EBITDA increased
by 39% (36% at constant currency) in the six-month period. The
increase in Adjusted EBITDA excluding fair value movements from
biological assets derives primarily from higher revenues, supported
by ongoing cost control and operational leverage.
Higher revenues were reported across all business areas with
Genetics revenues increasing by 30%, Advanced Nutrition 8% and
Health 78%. In Health and Genetics, the impact from foreign
currencies was not material, with revenue growth at constant
currency broadly in line with actual revenue growth. Advanced
Nutrition sales were aided by forex tailwinds, and revenue fell
slightly (-4%) in constant currency terms. Operating costs in H1
FY23 were GBP24.0m, a 21% increase from the prior year. The
increase reflects higher activity levels and inflationary pressure.
R&D expenses at GBP3.0m, were 7% below H1 FY22 and total
R&D investment including capitalised development costs was
GBP3.2m, 30% below the prior year (H1 FY22: GBP4.6m).
Depreciation and amortisation were marginally above the prior
year at GBP19.1m (H1 FY22: GBP18.9m). Together with the increase in
EBITDA, this led to an improvement at Operating Profit level to
GBP0.3m (H1 FY22: -GBP2.2m loss). Adjusted Operating Profit
excluding fair value movements from biological assets increased by
193% to GBP11.4m. Taking into consideration conditions in the end
markets, performance was strong across all business areas.
Net finance costs for H1 FY23 were GBP2.2m (H1 FY22: GBP3.0m).
The reduction arises due to a credit of GBP2.7m arising in H1
relating to the ineffective portion of the movement in the fair
value of derivative financial instruments, offset by higher forex
losses in the period.
Loss before tax in H1 FY23 was GBP1.9m (H1 FY22: GBP5.1m). This
included the impact of significant exceptional costs in the period
of GBP2.7m, largely incurred in legal and professional costs in
relation to the preparations for listing the Group on the Oslo
Børs. The figure contrasted with a GBP0.9m net credit in H1 FY22
which included a credit of GBP1.2m for additional contingent
consideration received from disposals in previous years.
Total tax charge in H1 FY23 was GBP1.5m (H1 FY22: GBP3.6m)
reflecting a change in the mix in the territories in which the
profits have been made, with losses available to shelter profits in
some territories. Loss after tax was GBP3.4m (H1 FY22: GBP8.8m
loss).
The Group reported a net operating cash inflow of GBP9.5m after
an increase in working capital of GBP4.2m (H1 FY22: GBP13.5m) and
tax payments of GBP4.1m (H1 FY22: GBP3.0m). The increase in working
capital is somewhat seasonal, but the much lower increase year on
year, in the context of increased activity, results from our strong
focus on managing our working capital closely towards our goal of
achieving positive cash generation.
Net cash outflow from investing activities was GBP11.5m (H1
FY22: GBP6.6m) of which GBP8.0m related to the acquisition of the
remaining minority stake in Benchmark Genetics Iceland completed in
February 2023. PPE capex was GBP3.3m (H1 FY22: GBP5.1m).
Net cash inflow from financing activities of GBP6.8m (H1 FY22:
GBP10.7m), includes an equity raise of (net) GBP13.0m, net proceeds
from debt refinancing of GBP4.2m, and GBP4.7m of lease payments (H1
FY22: GBP4.8m). Interest charges in the period were GBP4.0m (H1
FY22: GBP3.8m), as the higher cost of borrowing offset the lower
level of borrowings outstanding in the period. Our cash position at
the end of the period was GBP38.6m (H1 FY22: GBP46.3m), and net
debt including lease liabilities was GBP66.3m (H1 FY22:
GBP81.4m).
Advanced Nutrition
Advanced Nutrition delivered a strong result despite soft shrimp
markets in the first half of the year demonstrating the success of
a renewed commercial focus and agile operation. Revenues for the
first half were up 8% at GBP45.3m while Adjusted EBITDA was flat
against the same period in the previous year at GBP11.5m.
Softness in the shrimp markets resulted from subdued demand from
key import markets, inventory levels across the supply chain and
higher input costs, primarily in South East Asia, while Ecuador was
more robust. We expect an uplift in shrimp production as consumer
confidence picks up and inventory levels normalise. Conditions in
the marine fish sector were positive partially offsetting softness
in the shrimp market.
In transactional currency, by product area, Artemia sales were
up 3% and Health sales were up by 22% while Diets saw a 14%
decrease. On the same basis by region, Asia Pacific and South East
Asia were most affected by conditions in the shrimp market leading
to a reduction in sales of 13% and 19% respectively. Conversely,
the Americas reported growth of 8% while sales in Europe increased
6%.
With a leading position in the market, deep customer relations,
operational agility and commercial focus our Advanced Nutrition
business is well placed to mitigate the temporary weakness and take
every opportunity to strengthen our position in the market.
Genetics
Genetics delivered strong performance in the first half of the
year with revenues of GBP34.5m, 30% above the prior year (H1 FY22:
GBP26.6m) driven by higher salmon egg sales and harvest revenues.
Adjusted EBITDA for H1 FY23 excluding fair value movements of
biological assets was GBP5.7m, 22% ahead of the prior year (H1
FY22: GBP4.7m). Including fair value movements Adjusted EBITDA for
the first half was GBP6.0m, 5% ahead of the same period last
year.
Revenues from salmon eggs increased by 45% driven by Norway and
Iceland, while harvest revenues grew by 9%. We made commercial
progress in Chile with new customer wins. In addition, we obtained
"disease free compartment status" from the Chilean regulator,
Senapesca. This is an important biosecurity endorsement which will
enable the Company to export salmon eggs from Chile thereby opening
new avenues to utilise our installed capacity.
In Q2 we completed the configuration of the Salten facility, to
reach 150m salmon egg capacity (currently 140m eggs) which will be
in place from FY24 onwards. This marks the end of an investment
journey where the Company has increased its total salmon egg
capacity to 400m eggs, comprising 150m in Salten, Norway, 200m in
Iceland and 50m in Chile.
In shrimp we continued our efforts to enhance and tailor genetic
traits to local markets and trials in local markets are underway.
We have decreased the intensity of our commercial efforts while the
trials are ongoing. Shrimp sales were GBP0.7m in the period (H1
FY22: GBP0.8m).
Innovation is a core component of our Genetics strategy and we
continue to strengthen our capability in the team. We have also
enhanced our capacity for genotyping, reducing the costs for our
own programmes and enabling us to offer genotyping as part of our
offering in genetics services.
During the period the Company acquired the 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. Benchmark Genetics Iceland
represents c.50% of the Group's 400m salmon egg capacity.
Health
Revenues in H1 FY23 increased to GBP19.1m (H1 FY22: GBP10.7m)
with higher sales from both Ectosan(R) Vet and CleanTreat(R) and
Salmosan(R) Vet. Ectosan(R) Vet and CleanTreat(R) sales were
GBP12.9m (H1 FY22: GBP8.6m) of which GBP4.5m (H1 FY22: GBP2.2m)
related to recharging of vessel and fuel costs. There is growing
adoption of our highly efficacious sea lice solution and we
continue to work with our partners MMC and Salt Ship Design to
develop a streamlined infrastructure for CleanTreat(R) which will
further facilitate adoption in the market.
Salmosan(R) Vet sales were GBP6.2m, 192% ahead of the prior year
supported by the success of a new marketing label.
Adjusted EBITDA for the business area was GBP6.6m (H1 FY22:
GBP0.1m).
Q2 FY23 commentary
The Group reported revenue of GBP44.4m, 13% above prior year of
GBP39.2m. This was driven by revenue growth in Health and Genetics
which reported revenue +77% and +14% higher than Q2 FY22
respectively. Revenues in Advanced Nutrition were marginally down
-1% driven by low current demand in the shrimp markets as mentioned
above.
Adjusted EBITDA excluding fair value uplift from biological
assets was GBP9.7m, 32% ahead of the prior year and 28% higher on a
constant currency basis (Q2 FY22: GBP7.3m), reflecting higher
revenues, operational leverage and good cost control. By business
area, Health was up more than sixfold, Genetics was up 52% while
Advanced Nutrition reported a decrease in Adjusted EBITDA of 14%,
despite forex tailwinds mitigating the reduction.
Operating costs of GBP12.3m were 23% above last year (Q2 FY22:
GBP10.0m) driven by increased activity and inflationary pressure.
R&D expenses of GBP1.4m were 10% below the prior year (Q2 FY22:
GBP1.6m) and represented 3% of Group revenues (Q2 FY22: 4%).
Depreciation and amortisation was GBP9.0m (Q2 FY22: GBP10.0m),
leading to a Group operating profit of GBP0.4m (Q2 FY22: GBP0.7m
loss).
Net finance costs of GBP2.4m for the quarter were GBP1.6m higher
than the same period last year (Q2 FY22: GBP0.8m), mainly due to
forex losses of GBP0.7m (Q3 FY22: gain of GBP0.6m) in the
period.
The tax charge of GBP0.7m (Q2 FY22: GBP2.2m) reflects a change
in the mix of territories in which taxable profits were made,
leading loss after tax for the quarter at GBP2.7m (Q2 FY22: loss of
GBP3.7m).
Update on Oslo Børs listing
As previously announced, the Company conducted a consultation
with shareholders regarding a potential delisting from AIM and
uplisting to the Oslo B ø rs. Based on the feedback received the
Board has decided to maintain its current listings on Euronext
Growth Oslo and on AIM for the foreseeable future.
The Board continues to believe that in the medium term the
company could benefit from uplisting to the Oslo Børs as the
leading venue for seafood and aquaculture companies. An uplisting
will be reviewed as part of the Group's ongoing strategy to enhance
the Group's positioning and shareholder value.
Outlook and current trading
The Group had an excellent first half, delivering 25% growth in
revenues and trading in line with market expectations. We continued
to focus on achieving profitability and cash generation whilst
making good progress towards our medium-term objectives.
The Group communicated its medium term (3-5 year) financial
objectives in May 2022 and since then has reported significant
progress as shown in the table below:
Medium term FY21 FY22 H123
objective
Revenue Growth
per annum 15-18% 18% 27% 25%
-------------- ------ ----- -----
Adj. EBITDA
Margin 25-30% 16% 20% 22%
(period end)
-------------- ------ ----- -----
Cashflow conversion
ratio(1) 70-80% 30% 35% 43%
-------------- ------ ----- -----
Free cashflow
as % of sales(2) 10-15% (17%) (8%) 1%
-------------- ------ ----- -----
1. Cash generated from operations after working capital and
taxes as percentage of Adj. EBITDA
2. Free cash flow: Net cash from operating activities less capex
and lease payments (excluding cash interest)
Looking forward to the second half of the year there is good
visibility of salmon egg sales in Genetics and we will continue to
progress our growth vectors of salmon in Chile and shrimp genetics,
which will be key areas of focus in the coming periods. In Advanced
Nutrition we expect conditions in the shrimp market to remain
unchanged in the short term and while this poses a challenge to
growth, we are confident that we have a leading and dynamic
organisation capable of mitigating the impact from market
conditions whilst taking advantage to increase our market share
where possible. In Health, we expect Q3 sales to reflect the
seasonally low sea lice treatment season, thereafter increasing in
Q4.
Our fundamentals are strong and we have significant
opportunities to continue building our track record of consistent
growth. Since completing the Group's restructuring in 2020 we have
delivered a 62% increase in revenue and 117% increase in Adj.
EBITDA, whilst steadily reducing net debt. Aquaculture is a growth
industry, supported by robust megatrends. As a leading aquaculture
biotechnology company, Benchmark is well positioned to play an
important role in helping the aquaculture industry deliver
sustainable growth and meet the needs of a rising population.
Benchmark Holdings plc
Consolidated Income Statement for the period ended 31 March
2023
YTD Q2 YTD Q2
Q2 2023 Q2 2022 2023 2022 FY 2022
All figures in GBP000's Notes (unaudited) (unaudited) (unaudited) (unaudited) (audited)
------------------------------ ------ -------------- -------------- -------------- -------------- ------------
Revenue 4 44,367 39,233 98,862 79,247 158,277
Cost of sales (19,549) (19,210) (49,817) (39,725) (75,149)
------------------------------ ------
Gross profit 24,818 20,023 49,045 39,522 83,128
Research and development
costs (1,435) (1,590) (2,998) (3,237) (6,691)
Other operating costs (12,290) (9,984) (24,043) (19,907) (44,661)
Share of (loss)/profit
of equity-accounted
investees, net of
tax - (24) 56 (528) (595)
------------------------------ ------ -------------- -------------- -------------- -------------- ------------
Adjusted EBITDA(2) 11,093 8,425 22,060 15,850 31,181
Exceptional - restructuring,
disposal and acquisition
related items 5 (1,716) 908 (2,688) 908 16
------------------------------ ------ -------------- -------------- -------------- -------------- ------------
EBITDA(1) 9,377 9,333 19,372 16,758 31,197
Depreciation and impairment (4,551) (5,557) (9,166) (10,052) (19,897)
Amortisation and impairment (4,410) (4,484) (9,912) (8,872) (19,161)
------------------------------ ------ -------------- -------------- -------------- -------------- ------------
Operating profit/(loss) 416 (708) 294 (2,166) (7,861)
Finance cost (3,223) (2,684) (10,353) (4,747) (20,057)
Finance income 791 1,930 8,143 1,769 4,741
------------------------------ ------ -------------- -------------- -------------- -------------- ------------
Loss before taxation (2,016) (1,462) (1,916) (5,144) (23,177)
Tax on loss 6 (704) (2,189) (1,483) (3,616) (7,274)
------------------------------ ------ -------------- --------------
Loss for the period (2,720) (3,651) (3,399) (8,760) (30,451)
------------------------------ ------ -------------- -------------- -------------- -------------- ------------
Loss for the period
attributable to:
- Owners of the parent (2,858) (3,775) (4,141) (9,132) (32,087)
- Non-controlling
interest 138 124 742 372 1,636
------------------------------ ------ --------------
(2,720) (3,651) (3,399) (8,760) (30,451)
------------------------------ ------ -------------- -------------- -------------- -------------- ------------
Earnings per share
Basic loss per share
(pence) 7 (0.40) (0.54) (0.57) (1.32) (4.60)
Diluted loss per share
(pence) 7 (0.40) (0.54) (0.57) (1.32) (4.60)
------------------------------ ------ -------------- -------------- -------------- -------------- ------------
1 EBITDA - Earnings before interest, tax, depreciation,
amortisation, and impairment
2 Adjusted EBITDA - EBITDA before exceptional items including
acquisition related items
Benchmark Holdings plc
Consolidated Statement of Comprehensive Income for the period
ended 31 March 2023
YTD Q2 YTD Q2
Q2 2023 Q2 2022 2023 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------------- --- -------------- -------------- -------------- -------------- ------------
Loss for the period (2,720) (3,651) (3,399) (8,760) (30,451)
Other comprehensive income
Items that are or may
be reclassified subsequently
to profit or loss
Foreign exchange translation
differences (5,973) 9,812 (24,013) 7,201 47,606
Cash flow hedges - changes
in fair value 217 3,082 (299) 2,948 2,627
Cash flow hedges - reclassified
to profit or loss (179) 63 (292) 178 2,546
Total comprehensive income
for the period (8,655) 9,306 (28,003) 1,567 22,328
-------------------------------------- -------------- -------------- -------------- -------------- ------------
Total comprehensive income
for the period attributable
to:
- Owners of the parent (8,295) 8,784 (28,046) 836 20,326
- Non-controlling interest (360) 522 43 731 2,002
--------------------------------------
(8,655) 9,306 (28,003) 1,567 22,328
------------------------------------- -------------- -------------- -------------- -------------- ------------
The accompanying notes are an integral part of this consolidated
financial information.
Benchmark Holdings plc
Consolidated Balance Sheet as at 31 March 2023
31 March 31 March 30 September
2023 2022 2022
All figures in GBP000's Notes (unaudited) (unaudited) (audited)
------------------------------------------ ------ ------------ ------------ --------------
Assets
Property, plant and equipment 76,414 81,568 81,900
Right-of-use assets 22,365 31,360 27,034
Intangible assets 215,077 226,912 245,264
Equity-accounted investees 3,136 2,821 3,113
Other investments 14 15 15
Biological and agricultural assets 20,605 17,089 20,878
Non-current assets 337,611 359,765 378,204
------------------------------------------ ------ ------------ ------------ --------------
Inventories 27,129 22,140 29,813
Biological and agricultural assets 22,550 24,294 25,780
Trade and other receivables 48,433 47,275 56,377
Cash and cash equivalents 38,647 46,294 36,399
------------------------------------------ ------ ------------ ------------ --------------
Current assets 136,759 140,003 148,369
------------------------------------------ ------ ------------ --------------
Total assets 474,370 499,768 526,573
------------------------------------------ ------ ------------ ------------ --------------
Liabilities
Trade and other payables (29,723) (33,284) (44,324)
Loans and borrowings 8 (22,115) (13,546) (17,091)
Corporation tax liability (8,413) (7,733) (10,211)
Provisions (1,574) (551) (1,631)
------------------------------------------ ------ ------------ ------------ --------------
Current liabilities (61,825) (55,114) (73,257)
------------------------------------------ ------ ------------ ------------ --------------
Loans and borrowings 8 (82,878) (114,185) (93,045)
Other payables (6,257) (936) (8,996)
Deferred tax (24,293) (27,524) (27,990)
------------
Non-current liabilities (113,428) (142,645) (130,031)
------------------------------------------ ------ ------------ ------------ --------------
Total liabilities (175,253) (197,759) (203,288)
------------------------------------------ ------ ------------ ------------ --------------
Net assets 299,117 302,009 323,285
------------------------------------------ ------ ------------ ------------ --------------
Issued capital and reserves attributable
to owners of the parent
Share capital 9 739 704 704
Additional paid-in share capital 9 37,924 420,824 420,824
Capital redemption reserve 5 5 5
Retained earnings 201,962 (162,696) (185,136)
Hedging reserve (1,294) (2,750) (703)
Foreign exchange reserve 54,391 37,307 77,705
------------
Equity attributable to owners
of the parent 293,727 293,394 313,399
Non-controlling interest 5,390 8,615 9,886
------------------------------------------ ------ ------------
Total equity and reserves 299,117 302,009 323,285
------------------------------------------ ------ ------------ ------------ --------------
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 March 2023
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/(loss)
for the period
Profit/(loss) for
the
period - - - - (4,141) (4,141) 742 (3,399)
Other
comprehensive
income/(loss) - - (23,314) (591) - (23,905) (699) (24,604)
Total
comprehensive
income/(loss)
for the
period - - (23,314) (591) (4,141) (28,046) 43 (28,003)
------------------ --------- ------------ ---------- --------- ---------- -------------- ------------- ---------
Contributions by
and
distributions to
owners
Share issue 35 12,985 - - - 13,020 - 13,020
Share issue costs
recognised
through equity - (1,650) - - - (1,650) - (1,650)
Cancellation of
part
of share premium
account
(note 9) - (394,235) - - 394,235 - - -
Share-based
payment - - - - 475 475 - 475
Total
contributions
by and
distributions
to owners 35 (382,900) - - 394,710 11,845 - 11,845
------------------ --------- ------------ ---------- --------- ---------- -------------- ------------- ---------
Changes in
ownership
Acquisition of
NCI - - - - (3,470) (3,470) (4,539) (8,009)
Total changes in
ownership
interests - - - - (3,470) (3,470) (4,539) (8,009)
Total
transactions
with
owners of the
Company 35 (382,900) - - 391,240 8,375 (4,539) 3,836
------------------ --------- ------------ ---------- --------- ---------- -------------- ------------- ---------
As at 31 March
2023
(unaudited) 739 37,924 54,396 (1,294) 201,963 293,728 5,390 299,118
------------------ --------- ------------ ---------- --------- ---------- -------------- ------------- ---------
As at 1 October
2021
(audited) 670 400,682 30,470 (5,876) (154,231) 271,715 7,884 279,599
------------------ --------- ------------ ---------- --------- ---------- -------------- ------------- ---------
Comprehensive
income/(loss)for
the period
Profit/(loss) for
the
period - - - - (9,132) (9,132) 372 (8,760)
Other
comprehensive
income/(loss) - - 6,842 3,126 - 9,968 359 10,327
Total
comprehensive
income/(loss)
for the
period - - 6,842 3,126 (9,132) 836 731 1,567
------------------ --------- ------------ ---------- --------- ---------- -------------- ------------- ---------
Contributions by
and
distributions to
owners
Share issue 34 20,704 - - - 20,738 - 20,738
Share issue costs
recognised
through equity - (562) - - - (562) - (562)
Share-based
payment - - - - 667 667 - 667
Total
contributions
by and
distributions
to owners 34 20,142 - - 667 20,843 - 20,843
------------------ --------- ------------ ---------- --------- ---------- -------------- ------------- ---------
Changes in
ownership
Total changes in
ownership
interests - - - - - - - -
Total
transactions
with
owners of the
Company 34 20,142 - - 667 20,843 - 20,843
------------------ --------- ------------ ---------- --------- ---------- -------------- ------------- ---------
As at 31 March
2022
(unaudited) 704 420,824 37,312 (2,750) (162,696) 293,394 8,615 302,009
------------------ --------- ------------ ---------- --------- ---------- -------------- ------------- ---------
As at 1 October
2021
(audited) 670 400,682 30,470 (5,876) (154,231) 271,715 7,884 279,599
------------------ --------- ------------ ---------- --------- ---------- -------------- ------------- ---------
Comprehensive
income/(loss)
for the period
Profit/(loss) for
the
period - - - - (32,087) (32,087) 1,636 (30,451)
Other
comprehensive
income/(loss) - - 47,240 5,173 - 52,413 366 52,779
Total
comprehensive
income/(loss)
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
------------------ --------- ------------ ---------- --------- ---------- -------------- ------------- ---------
*Other reserves in this statement is an aggregation of capital
redemption reserve and foreign exchange reserve
Benchmark Holdings plc
Consolidated Statement of Cashflows for the period ended 31
March 2023
31 March 31 March 30 September
2023 2022 2022
Notes (unaudited) (unaudited) (audited)
--------------------------------------------- ------ ------------ ------------ --------------
Cash flows from operating activities
Loss for the period (3,399) (8,760) (30,451)
Adjustments for:
Depreciation and impairment of property,
plant and equipment 4,248 4,187 8,602
Depreciation and impairment of right-of-use
assets 4,918 5,865 11,295
Amortisation and impairment of intangible
fixed assets 9,912 8,872 19,161
Loss on sale of property, plant and
equipment (36) - (43)
Finance income (320) (225) (319)
Finance costs 1,715 3,714 18,437
Increase in fair value of contingent
consideration receivable - (909) (1,203)
Share of profit/(loss) of equity-accounted
investees, net of tax (55) 528 595
Foreign exchange losses (1,104) 841 (3,985)
Share-based payment expense 475 667 1,182
Other adjustments for non-cash items - - (276)
Tax charge 1,482 3,616 7,274
Decrease/(increase) in trade and
other receivables 6,071 108 (8,511)
Decrease/(increase) in inventories 2,517 (1,610) (5,406)
Decrease/(increase) in biological
and agricultural assets 893 (1,635) (6,099)
(Decrease)/increase in trade and
other payables (13,673) (10,317) 6,946
(Decrease)/increase in provisions (13) (12) 1,058
--------------------------------------------- ------ ------------ ------------ --------------
13,631 4,930 18,257
Income taxes paid (4,141) (2,975) (7,447)
--------------------------------------------- ------ ------------ ------------ --------------
Net cash flows generated from operating
activities 9,490 1,955 10,810
--------------------------------------------- ------ ------------ ------------ --------------
Investing activities
Acquisition of minority interests
in subsidiaries, net of cash acquired 12 (8,009) - -
Purchase of investments (307) (48) (378)
Receipts from disposal of investments - - 1,544
Purchases of property, plant and
equipment (3,254) (5,084) (10,808)
Purchase of intangibles (77) (1,523) (205)
Capitalised research and development
costs (197) - (1,708)
Proceeds from sale of fixed assets 77 3 220
Interest received 319 25 119
Net cash flows used in investing
activities (11,448) (6,627) (11,216)
--------------------------------------------- ------ ------------ ------------ --------------
Financing activities
Proceeds of share issues 13,020 20,782 20,737
Share-issue costs recognised through
equity (1,650) (607) (562)
Proceeds from bank or other borrowings 21,393 - 67,939
Repayment of bank or other borrowings (16,560) (939) (74,874)
Capitalised borrowing costs (591) - -
Interest and finance charges paid (4,082) (3,757) (9,629)
Repayments of lease liabilities (4,689) (4,769) (10,533)
--------------------------------------------- ------------ --------------
Net cash inflow/(outflow) from financing
activities 6,841 10,710 (6,922)
--------------------------------------------- ------ ------------ ------------ --------------
Net increase/(decrease) in cash
and cash equivalents 4,883 6,038 (7,328)
Cash and cash equivalents at beginning
of period 36,399 39,460 39,460
Effect of movements in exchange rate (2,634) 796 4,267
--------------------------------------------- ------------ --------------
Cash and cash equivalents at end
of period 38,648 46,294 36,399
--------------------------------------------- ------ ------------ ------------ --------------
Benchmark Holdings plc
Unaudited notes to the quarterly financial statements for the
period ended 31 March 2023
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 six months ended 31 March
2023 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 six months ended 31 March 2022. 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 23 May
2023.
Going concern
The Group's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Management Report.
As at 31 March 2023 the Group had net assets of GBP299.1m (30
September 2022: GBP323.3m), including cash of GBP38.6m (30
September 2022: GBP36.4m) as set out in the consolidated balance
sheet. The Group made a loss for the six months of GBP3.4m (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 demand for artemia
feeds in certain territories. 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, tight control over new hires, and deferral
of capital projects.
The refinancing exercise which commenced in FY22 was completed
in Q1 FY23, so that adequate finance facilities are in place, and
with financial instruments in place to fix interest rates and
opportunities available to mitigate globally high inflation rates,
the Group continues to show resilience against the global economic
pressures, caused mainly by the conflict in Eastern Europe. The
Directors are therefore confident 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 and
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 or UK-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).
Furthermore, 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
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.
Segmental Revenue
--------------- --------------- -------------- --------------- -------------
YTD Q2 YTD Q2
Q2 2023 Q2 2022 2023 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
---------------------------- --------------- --------------- -------------- --------------- -------------
Genetics 13,042 11,408 34,481 26,603 58,008
Advanced Nutrition 22,644 22,974 45,324 42,033 80,286
Health 8,692 4,916 19,077 10,693 20,135
Corporate 1,436 1,406 2,873 2,812 5,120
Inter-segment sales (1,447) (1,471) (2,893) (2,894) (5,272)
Total 44,367 39,233 98,862 79,247 158,277
---------------------------- --------------- --------------- -------------- --------------- -------------
Segmental Adjusted EBITDA
--------------
YTD Q2 YTD Q2
Q2 2023 Q2 2022 2023 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
---------------------------- --------------- --------------- -------------- --------------- -------------
Genetics 3,420 2,428 5,983 5,691 15,980
Advanced Nutrition 6,169 7,154 11,466 11,474 19,017
Health 2,583 (454) 6,650 93 108
Corporate (1,079) (703) (2,039) (1,408) (3,924)
Total 11,093 8,425 22,060 15,850 31,181
---------------------------- --------------- --------------- -------------- --------------- -------------
Reconciliations of segmental information to IFRS measures
Reconciliation of Reportable Segments Adjusted EBITDA to Loss before
taxation
-----------------------------------------------------------------------------------------------------------------
YTD Q2 YTD Q2
Q2 2023 Q2 2022 2023 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
------------------------------- --------------- --------------- -------------- --------------- -------------
Total reportable segment
Adjusted EBITDA 12,172 9,128 24,099 17,258 35,105
Corporate Adjusted EBITDA (1,079) (703) (2,039) (1,408) (3,924)
------------------------------- --------------- --------------- -------------- --------------- -------------
Adjusted EBITDA 11,093 8,425 22,060 15,850 31,181
Exceptional - restructuring,
disposal and acquisition
related items (1,716) 908 (2,688) 908 16
Depreciation and impairment (4,551) (5,557) (9,166) (10,052) (19,897)
Amortisation and impairment (4,410) (4,484) (9,912) (8,872) (19,161)
Net finance costs (2,432) (754) (2,210) (2,978) (15,316)
Loss before taxation (2,016) (1,462) (1,916) (5,144) (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 March 2023 (unaudited)
------------------------- ---------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- -------
Sale of goods 11,083 22,635 6,115 - - 39,833
Provision of services 1,957 - 2,577 - - 4,534
Inter-segment sales 2 9 - 1,436 (1,447) -
13,042 22,644 8,692 1,436 (1,447) 44,367
------------------------- ---------- ------------ -------- ----------- --------------- -------
3 months ended 31 March 2022 (unaudited)
------------------------- ---------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- -------
Sale of goods 9,872 22,945 2,594 - - 35,411
Provision of services 1,500 - 2,322 - - 3,822
Inter-segment sales 36 29 - 1,406 (1,471) -
------------------------- ---------- ------------ -------- ----------- --------------- -------
11,408 22,974 4,916 1,406 (1,471) 39,233
------------------------- ---------- ------------ -------- ----------- --------------- -------
6 months ended 31 March 2023 (unaudited)
------------------------- ---------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- -------
Sale of goods 32,204 45,307 13,564 - - 91,075
Provision of services 2,274 - 5,513 - - 7,787
Inter-segment sales 3 17 - 2,873 (2,893) -
34,481 45,324 19,077 2,873 (2,893) 98,862
------------------------- ---------- ------------ -------- ----------- --------------- -------
6 months ended 31 March 2022 (unaudited)
------------------------- ---------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- -------
Sale of goods 24,381 41,993 5,845 - - 72,219
Provision of services 2,180 - 4,848 - - 7,028
Inter-segment sales 42 40 - 2,812 (2,894) -
------------------------- ---------- ------------ -------- ----------- --------------- -------
26,603 42,033 10,693 2,812 (2,894) 79,247
------------------------- ---------- ------------ -------- ----------- --------------- -------
4. Revenue (continued)
Sale of goods and provision of services (continued)
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
------------------------- ---------- ------------ -------- ----------- --------------- --------------
Primary geographical markets
3 months ended 31 March 2023 (unaudited)
------------------------- -------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- -------
Norway 6,177 252 6,157 - - 12,586
India - 2,822 - - - 2,822
Turkey - 2,528 - - - 2,528
Greece - 2,002 - - - 2,002
Faroe Islands 2,224 - 119 - - 2,343
Ecuador 9 1,832 - - - 1,841
United Kingdom 814 8 - - - 822
Chile 1,121 9 88 - - 1,218
Vietnam - 2,330 - - - 2,330
Rest of Europe 1,680 1,716 - - - 3,396
Rest of World 1,015 9,136 2,328 - - 12,479
Inter-segment sales 2 9 - 1,436 (1,447) -
13,042 22,644 8,692 1,436 (1,447) 44,367
------------------------- ---------- ------------ -------- ----------- --------------- -------
3 months ended 31 March 2022 (unaudited)
------------------------- -------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- -------
Norway 6,115 211 4,288 - - 10,614
India 260 3,711 - - - 3,971
Turkey - 2,238 - - - 2,238
Greece - 1,832 - - - 1,832
Faroe Islands 1,709 5 147 - - 1,861
Ecuador - 1,227 - - - 1,227
United Kingdom 899 14 30 - - 943
Chile 224 5 150 - - 379
Vietnam - 3,014 - - - 3,014
Rest of Europe 1,590 1,278 - - - 2,868
Rest of World 575 9,410 301 - - 10,286
Inter-segment sales 36 29 - 1,406 (1,471) -
11,408 22,974 4,916 1,406 (1,471) 39,233
------------------------- ---------- ------------ -------- ----------- --------------- -------
4. Revenue (continued)
Primary geographical markets (continued)
6 months ended 31 March 2023 (unaudited)
------------------------- ------------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------------
Norway 23,061 342 14,452 - - 37,855
India - 7,025 - - - 7,025
Turkey 2 4,732 - - - 4,734
Greece - 4,271 - - - 4,271
Faroe Islands 3,319 - 348 - - 3,667
Ecuador 29 3,572 - - - 3,601
United Kingdom 1,551 27 42 - - 1,620
Chile 1,133 11 342 - - 1,486
Vietnam - 5,025 - - - 5,025
Rest of Europe 3,742 3,338 - - - 7,080
Rest of World 1,641 16,964 3,893 - - 22,498
Inter-segment sales 3 17 - 2,873 (2,893) -
34,481 45,324 19,077 2,873 (2,893) 98,862
------------------------- ---------- ------------ -------- ----------- --------------- --------------
6 months ended 31 March 2022 (unaudited)
------------------------- ------------------------------------------------------------------------------
Advanced Inter-segment
All figures in GBP000's Genetics Nutrition Health Corporate sales Total
------------------------- ---------- ------------ -------- ----------- --------------- --------------
Norway 15,794 323 8,956 - - 25,073
India 400 7,719 - - - 8,119
Turkey - 3,932 - - - 3,932
Greece - 3,471 - - - 3,471
Faroe Islands 2,856 28 118 - - 3,002
Ecuador - 2,291 - - - 2,291
United Kingdom 2,601 6 277 - - 2,884
Chile 340 5 553 - - 898
Vietnam - 6,009 - - - 6,009
Rest of Europe 3,361 2,581 - - - 5,942
Rest of World 1,209 15,628 789 - - 17,626
Inter-segment sales 42 40 - 2,812 (2,894) -
26,603 42,033 10,693 2,812 (2,894) 79,247
------------------------- ---------- ------------ -------- ----------- --------------- --------------
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
Turkey - 6,419 - - - 6,419
Greece 2 6,197 - - - 6,199
Faroe Islands 5,465 9 587 - - 6,061
Ecuador 18 6,472 - - - 6,490
United Kingdom 4,318 93 199 - - 4,610
Chile 1,006 15 871 - - 1,892
Vietnam - 10,512 - - - 10,512
Rest of Europe 7,110 4,056 - - - 11,166
Rest of World 4,747 33,452 2,907 - - 41,106
Inter-segment sales 57 95 (0) 5,120 (5,272) (0)
58,008 80,286 20,135 5,120 (5,272) 158,277
------------------------- ---------- ------------ -------- ----------- --------------- --------
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.
All figures in GBP000's Q2 2023 Q2 2022 YTD YTD FY 2022
Q2 2023 Q2 2022
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
------------------------- --- -------------- --------------------- -------------- --------------------- ------------
Exceptional restructuring
costs 1,716 - 2,688 - 1,229
Income in relation to
disposals - (908) - (908) (1,245)
Total exceptional items 1,716 (908) 2,688 (908) (16)
------------------------------ -------------- --------------------- -------------- --------------------- ------------
Exceptional restructuring costs for the quarter include
GBP1,666,000 (YTD 2023: GBP2,553,000; FY 2022: GBP843,000) of legal
and professional costs in relation to preparing for listing the
Group on the Oslo stock exchange, and GBP50,000 (YTD 2023:
GBP135,000; FY 2022: GBP276,000) relating to other restructuring
costs.
Income in relation to disposals for Q2 2022 and YTD Q2 2022 of
GBP908,000 relate to an increase in the fair value of contingent
consideration receivable following the disposal of Improve
International Limited in 2020. Further to this, the balance in FY
2022 includes GBP294,000 of additional contingent consideration
received relating to the disposal of Aquaculture UK in 2020.
6. Taxation
YTD Q2 YTD Q2
Q2 2023 Q2 2022 2023 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
-------------------------------- --- -------------- -------------- -------------- -------------- ------------
Analysis of charge in period
Current tax:
Current income tax expense
on profits for the period 997 2,642 2,835 5,007 11,727
Adjustment in respect of prior
periods - - - - (39)
------------------------------------- -------------- -------------- -------------- -------------- ------------
Total current tax charge 997 2,642 2,835 5,007 11,688
Deferred tax:
Origination and reversal of
temporary differences (293) (453) (1,352) (1,391) (4,414)
Deferred tax movements in
respect of prior periods - - - - -
-------------------------------- --- -------------- -------------- -------------- -------------- ------------
Total deferred tax credit (293) (453) (1,352) (1,391) (4,414)
- -
-------------------------------- --- -------------- -------------- -------------- -------------- ------------
Total tax charge 704 2,189 1,483 3,616 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.
YTD YTD
Q2 2023 Q2 2022 Q2 2023 Q2 2022 FY 2022
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
----------------------------------- -------------- -------------- -------------- -------------- ------------
Loss attributable to equity
holders of the parent (GBP000) (2,858) (3,775) (4,141) (9,132) (32,087)
Weighted average number of shares
in issue (thousands) 723,173 703,926 724,505 692,474 698,233
Basic loss per share (pence) (0.40) (0.54) (0.57) (1.32) (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 4,312,880 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 March 2022:
5,184,054). These potential ordinary shares could dilute
earnings/loss per share in the future.
8. Loans and borrowings
YTD YTD
Q2 2023 Q2 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
---------------------------- ------------ ------------ ----------
Non-Current
2025 750m NOK Loan notes 56,756 - 61,054
2023 850m NOK Loan notes - 76,353 -
Bank borrowings 16,974 18,917 17,226
Lease liabilities 9,148 18,915 14,765
---------------------------- ----------
82,878 114,185 93,045
---------------------------- ------------ ------------ ----------
Current
Bank borrowings 9,421 1,648 5,569
Lease liabilities 12,694 11,899 11,522
---------------------------- ----------
22,115 13,546 17,091
---------------------------- ------------ ------------ ----------
Total loans and borrowings 104,993 127,732 110,136
---------------------------- ------------ ------------ ----------
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. The proceeds were
used to repay its existing NOK 850m floating rate listed bond,
originally raised in June 2019. The bond was listed on the Oslo
Stock Exchange during the current period on 12 April 2023.
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.
On 15 February 2023, the Group drew down EUR9,000,000 on the
GBP20,000 RCF leaving GBP12,110,000 undrawn as at 31 March
2023.
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 11,335
Cancellation of part of the share premium
account - - (394,235)
Exercise of share options 127,321 - -
Balance at 31 March 2023 739,277,469 739 37,924
---------------------------------------------- ------------ --------- -----------
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 GBP1.7m were in relation to the share issues
and this has been charged to the share premium account (presented
within additional paid-in share capital).
The share premium account is used to record the aggregate amount
of value of the premiums paid when the Company's shares are
issued/redeemed at a premium. On 20 March 2023, part of the
Company's share premium account was cancelled following the
confirmation of the capital reduction by the High Court of England
and Wales on 14 March 2023 and the subsequent registration of the
court order with the Registrar of Companies. The capital reduction
created additional distributable reserves to the value of
GBP394,235,072.
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 profit/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.
10. Alternative performance measures and other metrics
(continued)
Reconciliation of Adjusted Operating Profit to Operating
Loss
YTD Q2 YTD Q2
Q2 2023 Q2 2022 2023 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
----------------------------------- --- -------------- -------------- -------------- -------------- ------------
Revenue 44,367 39,233 98,862 79,247 158,277
Cost of sales (19,549) (19,210) (49,817) (39,725) (75,149)
---------------------------------------- -------------- -------------- -------------- -------------- ------------
Gross profit 24,818 20,023 49,045 39,522 83,128
Research and development costs (1,435) (1,590) (2,998) (3,237) (6,691)
Other operating costs (12,290) (9,984) (24,043) (19,907) (44,661)
Depreciation and impairment (4,551) (5,557) (9,166) (10,052) (19,897)
Amortisation of capitalised
development costs (610) (448) (1,227) (896) (2,165)
Share of loss of equity accounted
investees net of tax - (24) 56 (528) (595)
---------------------------------------- -------------- -------------- -------------- -------------- ------------
Adjusted operating profit 5,932 2,420 11,667 4,902 9,119
Exceptional - restructuring,
disposal and acquisition related
items (1,716) 908 (2,688) 908 16
Amortisation and impairment
of intangible assets excluding
development costs (3,800) (4,036) (8,685) (7,976) (16,996)
---------------------------------------- -------------- -------------- -------------- -------------- ------------
Operating profit/(loss) 416 (708) 294 (2,166) (7,861)
---------------------------------------- -------------- -------------- -------------- -------------- ------------
Reconciliation of Loss Before Taxation to Adjusted Profit Before
Tax
YTD YTD
Q2 2023 Q2 2022 Q2 2023 Q2 2022 FY 2022
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
--------------------------------- --- -------------- -------------- -------------- -------------- ------------
Loss before taxation (2,016) (1,462) (1,916) (5,144) (23,177)
Exceptional - restructuring,
disposal and acquisition
related items 1,716 (908) 2,688 (908) (16)
Amortisation and impairment
of intangible assets excluding
development costs 3,800 4,036 8,685 7,976 16,996
-------------------------------------- -------------- -------------- -------------- -------------- ------------
Adjusted profit before tax 3,500 1,666 9,457 1,924 (6,197)
-------------------------------------- -------------- -------------- -------------- -------------- ------------
Other Metrics
YTD Q2 YTD Q2 FY
Q2 2023 Q2 2022 2023 2022 2022
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
---------------------------------- --- -------------- -------------- -------------- -------------- ------------
Total R&D Investment
Research and development
costs 1,435 1,590 2,998 3,237 6,691
Internal capitalised development
costs 144 777 198 1,404 1,708
-------------- -------------- ------------
Total R&D investment 1,579 2,367 3,196 4,641 8,399
--------------------------------------- -------------- -------------- -------------- -------------- ------------
YTD YTD FY
Q2 2023 Q2 2022 Q2 2023 Q2 2022 2022
All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (audited)
------------------------------- --- --------------- --------------- -------------- --------------- -------------
Adjusted EBITDA excluding
fair value movement in biological
assets
Adjusted EBITDA 11,093 8,425 22,060 15,850 31,181
Exclude fair value movement (1,401) (1,101) (247) (1,005) (1,595)
--------------- --------------- -------------- --------------- -------------
Adjusted EBITDA excluding
fair value movement in biological
assets 9,692 7,324 21,813 14,845 29,586
------------------------------------ --------------- --------------- -------------- --------------- -------------
10. Alternative performance measures and other metrics
(continued)
Liquidity
A key financial covenant is a minimum liquidity of GBP10m,
defined as cash plus undrawn facilities.
31 March
2023
All figures in GBP000's (unaudited)
--------------------------- ------------
Cash and cash equivalents 38,647
Undrawn bank facility 12,110
50,757
--------------------------- ------------
The undrawn bank facility relates to the RCF facility. At 31
March 2023, GBP7.9m of the RCF was drawn (30 September 2022:
GBP4.0m and 31 March 2022: GBPnil), leaving GBP12.1m undrawn (30
September 2022: GBP9.4m and 31 March 2022: GBPnil).
11. Net debt
Net debt is cash and cash equivalents less loans and
borrowings.
31 March 31 March 30 September
2023 2022 2022
All figures in GBP000's (unaudited) (unaudited) (audited)
--------------------------------------- ------------ ------------ --------------
Cash and cash equivalents 38,647 46,294 36,399
Loans and borrowings (excluding lease
liabilities) - current (9,421) (1,647) (5,569)
Loans and borrowings (excluding lease
liabilities) - non-current (73,730) (95,270) (78,280)
Net debt excluding lease liabilities (44,504) (50,623) (47,450)
---------------------------------------- ------------ ------------ --------------
Lease liabilities - current (12,694) (11,899) (11,522)
Lease liabilities - non-current (9,148) (18,915) (14,765)
---------------------------------------- ------------ ------------ --------------
Net debt (66,346) (81,437) (73,737)
---------------------------------------- ------------ ------------ --------------
12. Purchase of minority interests in subsidiary companies
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.
On 6 February 2023, the Group exercised the put/call option in
place to purchase the final 20% of Benchmark Genetics USA Inc for 1
NOK. Following this acquisition, Benchmark Genetics Limited, a
subsidiary of Benchmark Holdings PLC, now owns 100% of the share
capital of Benchmark Genetics USA Inc.
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END
IR SEIESEEDSEII
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May 23, 2023 02:00 ET (06:00 GMT)
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