25th Jun 2019 12:01
(Alliance News) - Aquaculture genetics firm Benchmark Holdings PLC said Tuesday its annual loss deepened amid acquisition and financing costs, despite revenue rising as it progresses with its strategy and investments.
Benchmark develops treatments and preventative measures for diseases in farmed fish, such as salmon. It also develops disease-resistant salmon and shrimp.
For the financial year ended March, Benchmark's pretax loss deepened to GBP8.3 million from GBP5.6 million the year prior. This was despite revenue rising 3.4% to GBP78.3 million from GBP75.7 million the year before.
Profit performance was hurt by a rise in impairments and amortisation associated with acquisitions. In addition, finance costs more than doubled to GBP2.5 million from GBP1.1 million the year prior. This was after net debt grew to GBP65.5 million from GBP41.3 million the year before.
Adjusted pretax profit - excluding acquisition costs - narrowed to GBP700,000 from GBP3.6 million the year prior.
"We have delivered growth in adjusted EBITDA and made progress against our strategic priorities despite challenging conditions in the shrimp markets," Benchmark Chief Executive Officer Malcolm Pye said.
Adjusted earnings before interest, taxes, depreciation & amortisation widened to GBP7.5 million from GBP6.0 million the year prior.
"We continue to implement operational and structural efficiency initiatives and we expect the group to deliver broadly in line with market expectations for the full year," Pye added.
Benchmark does not pay a dividend.
"We are starting to see benefits from the investments we have made into a number of areas including our new facility in Salten, Norway," Pye continued. "These investments, combined with the successful completion of our refinancing, leaves us well placed to deliver on our five year strategy to drive future growth and profitability
Shares in Benchmark were 2.4% lower at 40.00 pence in London on Tuesday.
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