Benchmark Holdings' earnings and revenues swim ahead in 'solid' first half
Benchmark Holdings
40.75p
16:34 20/09/24
Aquaculture firm Benchmark Holdings revealed on Monday that both EBITDA and revenues had improved during the first half of its trading year.
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Revenues were 3.4% firmer year-on-year at £78.3m, driven by growth in genetics, animal health, and knowledge services, which benchmark said had "more than offset" its lower revenues in advanced nutrition as a result of weakness in the global shrimp market.
Benchmark also recorded an adjusted EBITDA of £7.5m - up 23% on the first half of the prior year - on the back of the contribution of higher value products, an increase in the value of biological assets and improved capacity at its new land-based salmon egg facility in Norway.
The group's EBITDA margin grew from 8% to 10%, while net debt at 31 March came £65.5m - a 59% widening year-on-year.
Looking forward, Benchmark noted conditions in its core markets were mixed, with salmon benefitting from growing demand and stable prices but shrimp and sea bass/bream markets seeing a temporarily depressed price as a result of overstocking.
However, the AIM-listed firm said the volatility was "not unusual" in its markets and assured investors it was "monitoring it closely".
Chief executive Malcolm Pye said: "The company delivered a solid first half performance which places us well to refinance our existing credit facilities.
"We remain focused on delivering efficiencies which will further drive margins and allocate capital to our priority areas of growth"
As of 0815 BST, Benchmark shares had slipped 1.86% to 42.20p.