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Introduction & Market Context
Benchmark Holdings PLC (AIM:BMK), a specialist in sustainable aquaculture solutions, presented its H1 FY25 results on June 12, 2025, highlighting a transformative period marked by the completion of its Genetics business disposal, which generated approximately £194 million in gross proceeds. This strategic move has significantly strengthened the company’s financial position, even as its continuing operations faced revenue headwinds.
The presentation, titled "Driving Sustainability in Aquaculture," was delivered by CEO Trond Williksen and CFO Septima Maguire, who outlined the company’s performance against a backdrop of mixed market conditions in the global aquaculture sector.
Quarterly Performance Highlights
Benchmark reported a Group profit after tax of £76.0 million for H1 FY25, primarily driven by the Genetics business disposal. However, revenues from continuing activities declined to £40.6 million, down from £51.8 million in H1 FY24, representing a 22% decrease at actual exchange rates (AER) or 17% at constant exchange rates (CER).
The company’s Adjusted EBITDA from continuing operations fell to £4.2 million from £9.6 million in the comparable period, while Adjusted Operating Profit improved to £2.4 million from £1.6 million in H1 FY24.
The revenue decline was largely attributed to a pause in Ectosan Vet and CleanTreat operations, which impacted the Health segment significantly, along with some foreign exchange headwinds in the Advanced Nutrition business. Operating costs were reduced by 13%, partially offsetting the impact of lower revenues and gross margins.
Detailed Financial Analysis
Advanced Nutrition Segment
The Advanced Nutrition segment, which now represents the bulk of Benchmark’s continuing operations, reported revenue of £37.7 million, down 7% (1% at CER) from £40.4 million in H1 FY24. Despite the revenue decline, management highlighted improved performance in Q2, driven by better product mix and customer adoption of proven technologies.
The segment’s product mix consists of Artemia (46%), Diets (45%), and Health products (9%). Adjusted EBITDA for Advanced Nutrition was £6.5 million, down 35% from £9.9 million in the prior year period, with a gross margin of 47%.
Health Segment
The Health segment experienced a more dramatic revenue decline, with sales falling 74% to £3.0 million from £11.5 million in H1 FY24. This decrease was primarily due to the pause in Ectosan Vet and CleanTreat operations. However, the company noted that its core Salmosan Vet business performed well, generating £3 million in sales.
Following restructuring efforts, the Health segment is now cash positive, with Adjusted EBITDA of £0.5 million (down from £2.2 million) and an improved Adjusted Operating Profit of £0.2 million, compared to a loss of £4.5 million in H1 FY24. The segment maintained a strong gross margin of 62%.
Cash Flow and Liquidity
One of the most significant developments in the period was the transformation of Benchmark’s financial position following the Genetics disposal. The company reported net cash of £125.9 million as of March 31, 2025, compared to net debt of £71.3 million on September 30, 2024.
Post-period end, Benchmark repaid its Green bond, Revolving Credit Facility (RCF), and related hedging instruments for approximately £87 million. As of June 10, 2025, the company’s liquidity stood at £131.6 million, providing substantial financial flexibility.
Strategic Initiatives
The completion of the Genetics business disposal represents a pivotal strategic shift for Benchmark, allowing the company to focus on its Advanced Nutrition and Health segments while significantly strengthening its balance sheet. Management reported that obligations under the Transition Services Agreement related to the disposal were substantially complete.
In a significant development announced post-period end on May 23, Benchmark proposed to delist from both AIM and Euronext (EPA:ENX) Growth Oslo, offering shareholders the opportunity to either roll over into the private company and receive a special dividend or realize their investment by participating in a tender offer. This move suggests a major strategic realignment as the company transitions to private ownership.
Corporate streamlining resulting from the Genetics disposal is well advanced, with the full effect of cost savings expected to be realized in FY26.
Forward-Looking Statements
Benchmark provided segment-specific outlooks for the remainder of FY25:
For Advanced Nutrition, the company expects an improved trend, though uncertainty remains due to the US tariff regime. Management highlighted increased commercial efforts and favorable conditions in the Mediterranean market, which could partially offset challenges in the shrimp market.
The Health segment is expected to perform in line with expectations, with Salmosan Vet well-positioned and stable profitability anticipated. The company plans to relaunch its land-based CleanTreat platform solution, subject to customer uptake.
At the Group level, Benchmark emphasized that the full effect of cost savings will be realized in FY26, and the company is focused on the proposed return of capital and positioning of the group following its strategic transformation.
Conclusion
Benchmark’s H1 FY25 results reflect a company in transition, with the Genetics disposal providing significant financial strength even as continuing operations face revenue challenges. The proposed delisting and privatization represent a major strategic shift that could reshape the company’s future direction.
With £131.6 million in liquidity and a streamlined operational focus, Benchmark appears well-positioned to weather current market challenges in the aquaculture sector while investing in its core technologies. However, investors should note the significant revenue declines in continuing operations and monitor whether the company’s restructuring efforts and strategic initiatives can drive improved performance in the coming periods.
Full presentation:
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