Full Year Results for the Financial Year ended 30 September 2024

12 Dec 2024 08:00 CET

Resilient performance in a year of change and market headwinds
Completion of strategic review resulting in disposal of Genetics business

Benchmark, the aquaculture biotechnology company, announces its full year
audited results for the year ended 30 September 2024 (the "period").

The Genetics business which is the subject of a post period end disposal has
been treated as held for sale and discontinued in the Annual Report. The 2024
results for Genetics have been included to enable our shareholders to evaluate
the performance and development of the Group as a whole before this disposal
took place

Financial highlights

• Total revenues (continuing and discontinued operations) were 7% below the
prior year at constant currency (CER) (-13% reported) resulting from:
o Advanced Nutrition: revenues +5% CER demonstrating resilient performance in
challenging shrimp markets.
o Health: revenues -41% CER following restructuring steps to transition to new
business model for Ectosan® Vet and CleanTreat® including decommissioning of the
two platform supply vessels and CleanTreat® units
o Genetics (discontinued): revenues -8% CER against a strong FY23 comparator,
which benefitted from supply constraints in the market and due to a shift from
direct egg sales to indirect sales through the Company’s JV in Norway (which
delivers an improved Adjusted EBITDA margin).
• Revenue from continuing operations was £90.4m was 6% below the prior year at
constant currency (-13% reported)
• Operating costs from continuing operations decreased by 20% (£7.2m) with the
savings resulting from restructuring actions across the Group
• Total Adjusted EBITDA excluding fair value movements in biological assets was
£28.9m, 10% below the prior year at constant currency (-16% reported, FY23:
£34.3m)
• Adjusted EBITDA from continuing operations was 24% below the prior year at
constant currency (-30% reported) driven by lower revenues in Health and lower
margin in Advanced Nutrition due to change in product mix in the year, and
higher logistic costs caused by trade route disruptions
• Total loss for the period was £39.1m (FY23: £21.6m) due to lower revenues and
margin, higher finance costs, higher exceptional costs primarily arising from
the strategic review process, and the impairment of capitalised development
costs in Health
• Net debt3 reduced to £49.0m (FY23: £65.5m) following transfer of £22.3m of
Genetics loans and borrowings into liabilities held for sale
• Cash and cash equivalents of £23.1m and liquidity of £34.3m at year end
• At 11 December 2024, cash and cash equivalents of £15.2m and available
liquidity of £26.5m

Conclusion of Strategic Review and Disposal of Genetics business
Post period end, on 25 November the Company announced the conclusion of the
strategic review initiated in January 2024 and the proposed Disposal of the
Genetics business to Novo Holdings AS (the “Disposal”). Transaction highlights:
• Enterprise value of up to £260 million, representing a multiple of 17.9x
Adjusted EBITDA (for the year to 30 June 2024).
• Initial cash consideration of £230m with additional contingent cash
consideration of up to £30m
• The Directors of the Company believe that the Disposal unlocks significant
value for shareholders and enables the Group to focus on its Advanced Nutrition
and Health business areas and creates an opportunity to reduce complexity and
streamline the Group to significantly reduce costs
• Net proceeds from the Disposal will be used to return capital to shareholders
and to reduce the Company’s leverage, by repaying the Group’s unsecured listed
green bond and drawn amounts under the Group’s revolving credit facility thereby
strengthening the balance sheet of the continuing business
• Completion of the Disposal is subject to regulatory approvals and is expected
during the first quarter of 2025

Financial Summary

(£m) FY 2024 FY 2023 % AER % CER**
Revenue from continuing operations 90.4 104.0 -13% -6%
Total Revenue (continuing and discontinued) 147.7 169.7 -13% -7%
Adjusted
Adjusted EBITDA1 from continuing operations 11.9 17.0 -30% -24%
Total Adjusted EBITDA excluding fair value movements in biological
assets 28.9 34.3 -16% -10%
Statutory
Operating loss from continuing operations (35.5) (17.5) -102% -99%
Loss before tax from continuing operations (45.9) (24.7) -86% -84%
Loss for the period including discontinued operations (39.1) (21.6) -81% -77%
Basic loss per share (p) (5.34) (3.16) -69%
Net debt3 (49.0) (65.5)
Net debt excluding lease liabilities3 (45.4) (45.6)

** 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 items.
(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 after
transfer of £22.3m (£15.1m excluding lease liabilities) transferred to
liabilities held for sale relating to the Genetics business.
(4) Cash generated from operations after working capital and taxes as percentage
of Adj. EBITDA


Business Area Performance
£m FY 2024 FY 2023 % AER % CER**
Revenue
Advanced Nutrition 75.9 78.5 -3% +5%
Health 14.5 25.5 -43% -41%
Genetics (discontinued) 57.4 65.8 -13% -8%
Adjusted EBITDA1
Advanced Nutrition 14.4 18.4 -22% -16%
Health 2.1 4.8 -57% -55%
Genetics (discontinued) 14.8 14.4 +3% +9%
- excluding fair value movements in biological assets 15.1 14.5 +4% +10%

** Constant exchange rate (CER) figures derived by retranslating current year
figures using previous year’s foreign exchange rates
(1) Adjusted EBITDA is EBITDA (earnings before interest, tax, depreciation and
amortisation and impairment), before exceptional items including acquisition
related expenditure.

Operational highlights

Advanced Nutrition – commercial focus and continued innovation
* Continued commercial focus through challenging markets resulting in revenue
growth at constant currency
* Launch of new products including SnappArt 360, applying new production
technology to increase feed stability and performance
* Expanded sales channels by establishing new subsidiary in India which
increases our commercial presence in this key market for shrimp

Health – rightsizing the business and moving away from capital intensive model
• Decommissioned the two supply vessels and CleanTreat units moving away from
capital intensive model
• Restructuring of the organisation, rightsizing it to deliver our
well-established sea lice treatment Salmosan® Vet
• Maintained capability to deliver Ectosan® Vet and CleanTreat® onto customer
owned infrastructure
Genetics – continued innovation and progress in growth vectors
• Launched new salmon genetic lines demonstrating ongoing innovation
• Excellent progress in our salmon genetics business in Chile doubling its
revenues
• Reorganisation of the shrimp genetics activities reducing costs and leveraging
our commercial presence in the shrimp markets through Advanced Nutrition
• Significant progress in key R&D projects including gene editing, sterility and
gill disease
Sustainability
• Net Zero goal: Reduction in GHG emissions in Thailand following the
installation of solar panels in the year which supply 23% of the electricity in
the facility
Current trading and outlook

Advanced Nutrition

• Soft start to the year with unchanged conditions in the shrimp markets; Q1
FY25 impacted by loss of significant customer in Venezuela
• Expect improvement through the year and recovery in gross margin underpinned
by higher quality of the recent Artemia harvest
• Actions taken over the past years to strengthen our commercial effort, broaden
the product portfolio and increase operational efficiency are anticipated to
mitigate the impact of market cyclicality and position the business to deliver
growth and improved profitability in the short and medium term

Health

• Health has had a good start to the year. Our established sea lice treatment
Salmosan® Vet is well positioned in customers’ toolkit to tackle sea lice which
continues to be a critical issue for the industry
• With a reduced cost base, Health is expected to deliver stable profitability.
At the same time, we will continue to work with customers to develop an optimal
model for Ectosan® Vet and CleanTreat® based on customer owned infrastructure
representing potential future upside

Group

• Focus on simplifying and streamlining the Group structure which is expected to
result in significant cost savings
• This effort will commence upon completion of the disposal of Genetics, taking
into consideration the Company’s commitments under the Transition Services
Agreement
• Anticipate the streamlining exercise to be complete by the end of FY25 with
the benefits from the cost savings to come through in full in FY26

Trond Williksen, CEO, commented:

“FY24 was transformational for the Group. We managed to deliver a resilient
performance amidst difficult market conditions, as well as realising significant
shareholder value resulting from the successful development of our Genetics
business over the years.
"The sale of Genetics creates an opportunity to simplify the Group’s structure,
positioning it to realise the potential in the Advanced Nutrition and Health
business areas, whilst reducing costs and leverage. At the same time it will
enable a return of capital to shareholders.
“Following the disposal, Benchmark will become a lean, profitable organisation
with a solid balance sheet, focused on realising the significant value and
potential in our continuing business where we have market leading positions, a
track record of innovation and significant headroom for growth.”
Presentation for analysts and institutional investors at 8am GMT

Trond Williksen, Chief Executive Officer and Septima Maguire, Chief Financial
Officer will host a presentation for analysts and institutional investors at
08.00 GMT (09.00 CET).

The presentation will be held in person at Haakon Vlls Gate 2, Oslo, Norway. To
register your interest, please contact benchmark@mhpgroup.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/20241212_2

Equity Development webcast for retail investors at 11am GMT

Trond Williksen, Chief Executive Officer and Septima Maguire, Chief Financial
Officer will host a second webcast for retail investors and wealth managers at
11.00 GMT (12:00 CET). The webcast is open to all existing and potential
shareholders.

To register please visit:
https://www.equitydevelopment.co.uk/news-and-events/benchmark-investor-presentat
ion-12december2024

 
Enquiries

Benchmark Holdings plc Tel: 0114 240 9939
Trond Williksen, CEO
Septima Maguire, CFO
Ivonne Cantu, Investor Relations


Deutsche Numis (Broker and NOMAD) Tel: 020 7260 1000
Freddie Barnfield, Duncan Monteith, Sher Shah
MHP Tel: 07890 952 661
Katie Hunt, Reg Hoare, Samuel Garner benchmark@mhpgroup.com

More information:
Access the news on Oslo Bors NewsWeb site

634421_FY24 presentation final final.pdf
634421_RNS full year combined 24 final final.pdf