INVE acquisition boosts Benchmark in 2016

Aquaculture biotechnology and food chain sustainability business Benchmark announced its preliminary results for the year to 30 September on Tuesday - a year in which it acquired INVE Aquaculture in December 2015 for $342m, creating the new Advanced Animal Nutrition division.

The AIM-traded company was funded by a £219m gross equity raise, and a $70m revolving credit facility.

It said INVE revenue was £55m, in line with expectations, while like-for-like revenue was up 20% to £30m.

Total revenue improved to £109.4m from £44.2m in 2015.

Benchmark said its operating loss of £20.5m, widening from £11.6m, reflected £12.9m in expensed acquisition and integration costs related to INVE, and an £11.7m investment in expensed research and development.

A £30.7m gross equity placing in August 2016 was completed to fund capital projects and bolt-on acquisitions.

Cash and cash equivalents at period end were £38.1m, up from £13.6m at the beginning of the year.

“I am pleased to announce that the group has delivered a financial performance in
line with the board's expectations, in a transformational year,” said CEO Malcolm Pye.

“Our strategy of diversification has mitigated the impact of environmental headwinds such as the drought caused by El Niño and the temporary Chilean border closure.

“Our acquisition strategy has already begun to show its strategic worth, providing access to a wider client base and technical insight which is enhancing our existing suite of products, as well as an established distribution network into fast growing markets.”

Pye said the company was continuing to execute its strategy of deploying world leading technology through established distribution channels into long term growth markets.

“As planned, we have been investing in manufacturing capacity this year in order to serve our fast growing portfolio of products, with our state-of-the-art plant in Braintree in its commissioning phase.

“This increased capacity will allow us to deliver our product pipeline which continues to progress well, with a number of products expected to enter commercialisation from 2017 to 2019.”

Pye asserted that seafood was becoming a more desirable and important component of diets across the world, driven by increasing health, wealth and the limitations of the current food chain.

“We are now the world's biggest player in aquaculture biotechnology, placing us at the forefront of this 'blue revolution'.”