Sign up Australia
Proactive Investors - Run By Investors For Investors

Benchmark nudges higher as underlying earnings double in first half

The fish health and nutrition group has enjoyed a solid first half of its financial year, with revenues climbing and underlying earnings soaring
fish farm
The higher-margin nutrition and genetics divisions were the star performers

Shares in Benchmark Holdings PLC (LON:BMK) nudged higher on Tuesday after the fish health and nutrition group saw underlying earnings almost double in the first half.

Benchmark – which, among other things, makes vaccines for seabass – saw revenues climb 9% in the six months ended 31 March

2018 to £75.7mln (H1 17: £69.2mln).

The company recorded a narrower loss of £5.6mln for the period (H1 17: £8.9mln), although excluding various one-off costs, adjusted EBITDA (underlying earnings) soared 91% to £6.3mln (H1 17: £3.3mln).

The growth was driven by a strong performance in its higher-margin nutrition and genetics divisions, and despite a drop-off in animal health revenues.

“The group has delivered good organic revenue growth and improving profitability on an adjusted basis, while we continued to invest in our pipeline of new products and infrastructure,” said chief executive Richard Pye.

“The outlook for the group is positive as the drivers for our business are stronger than ever before, with continued growth in aquaculture and increasing recognition from consumers, producers and regulators of the need for sustainable solutions to enable future growth.”

READ: Benchmark pays US$16.25mln for 49% stake in Chilean joint venture

Pye said he also expects to reap the rewards from the Chilean joint venture with Empresas AquaChile which it unveiled earlier this month.

Chile is the world’s second largest salmon market and the tie-up will increase Benchmark’s presence there.

Pye added: “Overall, we remain on track to achieve our expectations for the current year, and are confident of Benchmark's capacity to generate attractive returns in the years to come.”

Shares rose 3% to 63p on Tuesday.


View full BMK profile View Profile

Benchmark Holdings PLC Timeline

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use