Benchmark reports strong growth in first half

Aquaculture biotechnology company Benchmark reported a 25% rise in revenues in its first half on Tuesday, to £98.9m.

The AIM-traded firm recorded a 39% increase in adjusted EBITDA to £22.1m, and excluding the fair value movement in biological assets, adjusted EBITDA showed a significant 47% increase to £21.8m for the six months ended 31 March.

It said that improvement resulted in an adjusted EBITDA margin, excluding fair value movement, of 22%, up from 19% in the first half of the 2022 financial year.

Benchmark achieved a 193% increase in adjusted operating profit to £11.4m, surpassing the £3.9m it recorded in the same period last year.

Operating cash inflow totalled £9.5m, up from £2m year-on-year.

The company's net debt, excluding lease liabilities, continued to decrease and stood at £44.5m by 31 March.

Additionally, the company reported cash reserves of £41.9m and liquidity, including cash and available facilities, of £53.9m as at 22 May.

“Benchmark had an excellent first half, delivering double digit growth,” said chief executive officer Trond Williksen.

“We continue to focus on achieving profitability and cash generation whilst making good progress towards our medium-term objectives.

“We remain on track to deliver strong growth for the year in line with market expectations.”

Williksen said the company’s fundamentals were strong, adding that it had “significant” opportunities to continue building its track record of consistent growth.

“Aquaculture is a growth industry, supported by robust megatrends.

“Benchmark is well positioned to play an important role in helping the aquaculture industry deliver sustainable growth and meet the needs of a rising population.”

At 1153 BST, shares in Benchmark Holdings were up 3.37% at 42.9p.

Reporting by Josh White for Sharecast.com.