27th Jan 2015 09:37
LONDON (Alliance News) - Benchmark Holdings PLC Tuesday said it swung to a loss in its last financial year as it ramped up headcount to help drive future growth and invested heavily in research and development and manufacturing, although sales grew strongly.
The animal health company, which listed on AIM in December 2013, reported a pretax loss of GBP1.4 million for the year ended September 30, 2014, compared with a GBP4.9 million pretax profit a year earlier, as it invested GBP6.5 million in scientific research and development and put aside over GBP20 million for the expansion of its UK vaccine manufacturing facilities. It also increased headcount by 63 to 222 by the end of the year, and has added a further 60 since then.
Excluding the investing, its earnings before interest, tax, depreciation and amortisation dropped to GBP6.6 million, down from GBP7.4 million, as operating costs rose.
The company's revenue rose 28% to GBP35.4 million, up from GBP27.5 million a year earlier, mainly because sales of sea lice treatment Salmosan were included for a full year in the recent financial year and only for seven months in the previous year.
Benchmark wants to become a "world-leading" aquaculture health specialist, and it is growing though acquisitions as well as organically.
"The largest acquisition in the period was that of aquaculture vaccine assets from Zoetis, which has expanded the company's new product portfolio and accelerated its development," Chairman Alex Hambro said in a statement.
"Acquisitions form a key part of the group's growth strategy and I am pleased to report that our activity in this area has increased significantly over the last few months, culminating in the dual acquisition of leading salmon breeding and genetics companies, SalmoBreed and Stofnfiskur in December 2014, creating a world-leading salmon and aquaculture business. We are continuing to evaluate a number of further opportunities," he added.
Still, the company's shares were down 12.3% at 95.60 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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