Benchmark delivers better-than-expected performance in Q4

Biotechnology business Benchmark said on Monday that following "strong" Q3 results and "a continued positive performance" throughout the rest of the fiscal year, it had experienced better-than-expected trading across its three business areas in Q4.

Benchmark said its genetics unit ended the year "above management expectations", benefitting from "strong demand" for its salmon eggs in Q4, while its advanced nutrition division saw "a continuation of the excellent performance throughout the year", delivering revenues ahead of plan across all product areas.

In health, revenues from the AIM-listed group's Ectosan Vet and CleanTreat products reflected increased activity and customer uptake ahead of the main sea lice treatment season.

As a result, Benchmark stated it now expects to report adjusted underlying earnings in the range of £30.0m-£31.0m - ahead of consensus market expectations of £27.7m.

However, Benchmark, which successfully refinanced its outstanding NOK 850.0m (£70.87m) secured bond through the issue of an unsecured NOK 750.0m (£62.56m) green bond, warned that despite "positive trends and developments", heightened volatility in debt and currency markets had impacted financing costs.

In addition to this, Benchmark also cautioned that it had one-off costs associated with the redemption of the outstanding NOK 850.0m bond, which amounts to roughly £2.5m. Net debt, excluding lease liabilities, as of 30 September was £47.5m and cash was £36.4m following the refinancing.

As of 0835 BST, Benchmark shares were up 3.05% at 38.90p.

Reporting by Iain Gilbert at Sharecast.com