3rd Jun 2019 11:46
LONDON (Alliance News) - Benchmark Holdings PLC said Monday it delivered a "good performance" in the first half, which saw revenue and adjusted earnings grow.
The aquaculture health, nutrition and genetics company generated revenue of GBP78.3 million in the six months to March 31, which is 3.4% ahead of the year prior.
Benchmark Holdings said the growth was driven by its Genetics, Animal Health and Knowledge Services units. The growth reported from these units more than offset the lower revenue seen in Advanced Nutrition - which suffered from weakness in the global shrimp market.
Benchmark Holdings' adjusted earnings before interest, tax, depreciation and amortization in the first half increased 23% to GBP7.5 million.
The company said the sharp rise reflected the "contribution of higher value products, an increase in the value of biological assets as a result of growing sales and increasing capacity at the company's new land-based salmon egg facility in Norway, as well as ongoing cost control."
"The company delivered a solid first-half performance which places us well to refinance our existing credit facilities. The increased flexibility will allow the company to operate more efficiently and support the roll-out of products which are showing large potential and encouraging levels of interest from our customers," said Chief Executive Malcolm Pye.
The company ended the half with net debt of GBP65.5 million, up 59% on the same point twelve months prior.
Benchmark Holdings has put in place a programme to combat "structural and operational efficiencies" by reallocating capital, reducing costs, growing margins, prioritising R&D spend, and exiting from non-core activities.
To facilitate this, the company is looking to refinance its existing USD90 million credit facility. As a result, Benchmark Holdings may look to issue a USD95 million four-year senior secured floating rate listed bond, subject to market conditions.
The company hopes the refinancing will include a USD15 million revolving credit facility provided by Norwegian investment bank DNB Bank ASA. The bond will be underwritten by DNB Bank.
Looking ahead, Benchmark Holdings said its core markets are "mixed". The salmon industry is benefiting from "growing demand and stable prices", but shrimp, sea bass and bream markets are struggling as a "temporary overstocking" has resulted in "depressed prices and a decrease in production levels amongst our customers".
Benchmark Holdings said this type of "volatility is not unusual in our markets and we are monitoring it closely".
For financial 2019, the company expects to deliver "broadly" in line with market expectations for the full year.
Benchmark Holdings expects to release its full interim results on June 25.
Shares in Benchmark Holdings were down 2.3% Monday at 42.00 pence each.
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