28th Aug 2020 10:42
(Alliance News) - Benchmark Holdings PLC on Friday reported a narrowed loss in the third quarter of its financial year, as revenue grew amid a good performance in Genetics and Advanced Nutrition.
Benchmark develops treatments and preventative measures for diseases in farmed fish, such as salmon. It also develops disease-resistant salmon and shrimp.
For the three months to the end of June, the aquaculture genetics firm reported a pretax loss of GBP4.4 million, narrowed from GBP12.5 million the same period the year before. Adjusted earnings before interest, taxes, depreciation and amortisation was GBP344,000, swinging from a loss of GBP1.4 million.
This was on revenue that rose by 7.5% to GBP24.5 million from GBP22.8 million. Revenue growth was driven by a solid performance in Genetics, as revenue edged upwards to GBP7.2 million from GBP7.1 million on similar egg volumes and a higher average price.
Advanced Nutrition's revenue grew by 18% to GBP16.0 million, due to a partial catch up of previously delayed orders as a result of the Covid-19 pandemic.
For the year to date, Benchmark's pretax loss widened to GBP23.2 million from GBP21.6 million, while revenue declined by 9.4% to GBP81.6 million from GBP90.1 million, as a result of the continued effects of weak shrimp markets and an oversupply of Artemia in its Advanced Nutrition business reported in the first half of the group's financial year.
Looking ahead, Benchmark said the salmon industry remains resilient and the sea bass/bream markets stable, however the shrimp market remains challenging, and the group expect these trends to continue in the current financial year.
Benchmark said it expects annual results to be in-line with expectations.
"We are very pleased with the significant progress made over the last few months towards the completion of the disposal of non-core assets and the cash proceeds generated. Following the restructuring we are well advanced to become a streamlined, financially strong business wholly focused on our core businesses: Genetics, Advanced Nutrition and Health," said Chief Executive Officer Trond Williksen.
"While the shrimp market continues to experience challenges as a result of Covid-19 the salmon market which underpins our genetics and health businesses remains resilient and overall, we expect to deliver full year results in line with expectations," Williksen added.
Shares in AIM-listed Benchmark Holdings were down 1.5% at 45.30 pence on Friday in London.
By Dayo Laniyan; [email protected]
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