2nd Feb 2016 10:25
LONDON (Alliance News) - Benchmark Holdings PLC on Tuesday reported a widened pretax loss in its last financial year due to investments it made in research and development, but revenue grew thanks to a strong contribution from its newly-formed Breeding and Genetics division.
The food and farming industry technology and services company said its pretax loss in the year ended September 30 widened to GBP11.4 million from GBP1.4 million the year before, even though revenue increased by a quarter to GBP44.2 million from GBP35.4 million.
It said its loss widened due to an accelerated investment in scientific research and development of GBP8.8 million, as well as challenges posed by the introduction of generic products in Chile competing with its sea lice treatment product Salmosan/Byelice.
Due to increased competition for the product, like-for-like sales excluding acquisitions fell 17%, but this was more than offset by revenue from new acquisitions. Its newly-created Breeding and Genetics division, formed through the acquisitions of SalmoBreed and StofnFiskur, made sales of GBP15.9 million, helping to grow overall revenue.
Benchmark added that Breeding and Genetics has had a subdued start to the current year due to the temporary closure of the Chilean border to imports of salmon eggs from Iceland remaining in place for longer than expected. However, the border should reopen by February 25.
The group's other divisions have made an encouraging start to the year, Benchmark said, adding that the integration of INVE Aquaculture, which it acquired post period-end, is proceeding as planned.
"The global aquaculture market continues to grow strongly, and Benchmark is better positioned than ever to take advantage of this growth," Chairman Alexander Hambro said in a statement.
Shares in Benchmark were trading down 7.3% at 64.00 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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