LONDON - Benchmark Holdings PLC, a key player in the aquaculture biotechnology industry, reported its full year results for the fiscal year ending September 30, 2024, today. The company has experienced a challenging year due to market headwinds, leading to a strategic overhaul that included the disposal of its Genetics business.
The company's total revenues, including both continuing and discontinued operations, declined by 7% at constant currency and 13% on a reported basis compared to the previous year. This decrease was attributed to a resilient but challenging performance in the shrimp markets for its Advanced Nutrition segment, which saw a 5% increase in revenue at constant currency. In contrast, the Health segment's revenue dropped by 41% following restructuring efforts to transition to a new business model for its products Ectosan® Vet and CleanTreat®, including the decommissioning of two platform supply vessels and CleanTreat® units.
Revenue from continuing operations was down 6% at constant currency, reaching £90.4 million, with operating costs decreasing by 20% due to restructuring across the group. Adjusted EBITDA from continuing operations fell by 24% at constant currency, driven by lower revenues in Health and changing product mix in Advanced Nutrition, alongside higher logistic costs.
The total loss for the period was reported at £39.1 million, significantly higher than the £21.6 million from the previous year, primarily due to lower revenues and margins, increased finance costs, and higher exceptional costs from the strategic review process, including the impairment of capitalized development costs in Health.
The company also highlighted a reduction in net debt to £49.0 million, down from £65.5 million the previous year, after transferring £22.3m of Genetics loans and borrowings into liabilities held for sale.
Following the conclusion of a strategic review initiated in January 2024, Benchmark announced the proposed disposal of its Genetics business to Novo Holdings AS on November 25. The enterprise value of the transaction could reach up to £260 million, with an initial cash consideration of £230 million and a contingent cash consideration of up to £30 million. The Directors believe this disposal will unlock significant value for shareholders and allow the company to focus on its Advanced Nutrition and Health business areas, reduce complexity, and significantly cut costs. The net proceeds from the disposal will be used to return capital to shareholders and reduce the company's leverage. The completion of the disposal is subject to regulatory approvals and expected during the first quarter of 2025.
CEO Trond Williksen commented on the year's performance, noting the resilience shown during a difficult market environment and the significant shareholder value realized through the development and sale of the Genetics business. He emphasized the opportunity to simplify the Group's structure, reduce costs and leverage, and focus on realizing the potential in the Advanced Nutrition and Health business areas.
The company expects to complete the streamlining of its structure by the end of FY25, with the benefits of cost savings fully realized in FY26. The information reported is based on a press release statement.
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