29th Nov 2019 11:12
(Alliance News) - Benchmark Holdings PLC said Friday that challenging market conditions led to disappointing performance and restructuring of the group.
In a trading update for the fourth quarter and year ended September 30, the aquaculture genetics firm said total revenue is estimated to be GBP148 million , down 2% from GBP151.5 million in comparative period a year ago.
Meanwhile revenue from continuing operations is estimated to be down 3% to GBP127 million from GBP131.6 million.
The company said its performance was significantly affected by market conditions in the shrimp and Mediterranean sea bass and bream markets, as well as by changes and delays in its programme of commercial scale trials for some of its pipeline products.
Adjusted earnings before interest, tax, depreciation and amortisation from continuing operations is expected to have been around GBP11 million to GBP12 million, down from GBP19.1 million in financial 2018.
Looking ahead to financial 2020, Benchmark said it expects to deliver underlying Ebitda from continuing operations in line with the year just ended. "The shrimp and seabass-seabream markets continue to show weakness and although some recovery is expected they are unlikely to recover to 2018 levels in 2020," it said, adding the outlook for the salmon market remains positive.
Restructuring of the group has commenced, Benchmark said, accelerating the disposal and discontinuation of non-core activities, primarily businesses in the Knowledge Services division and veterinary services in Animal Health.
In August the company said Founder & Chief Executive Officer Malcolm Pye would be standing down at the end of November, with Chair Peter George taking on executive functions until a new boss is appointed. The company also appointed Septima Maguire as chief financial officer.
George said: "It is disappointing to report a performance which is below that expected at the beginning of the financial year largely due to market conditions in Advanced Nutrition."
Benchmark Holdings shares were down 9.1% in London at 45.00 pence each on Friday.
By Loreta Juodagalvyte; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Benchmark Holdings