Benchmark Holdings expects full year results to be in line with expectations

In a trading update for the year ended 30 September, the company said the ongoing effect of El Niño, a climate cycle in the Pacific Ocean, in South East Asia and Latin America, along with the disease challenge and low market prices in the shrimp sector, led to delayed sector investment and lower growth rates in the short term for both regions.

It said it will proceed cautiously with new investments until there is greater clarity on sales, while it will progress with infrastructure projects such as the vaccine facility in Braintree, Essex, which support long term.

Benchmark Holdings is focusing on growing sales and market share in developing markets, including China for its breeding and genetics and advanced animal nutrition divisions, as there is an increasing demand for aquaculture products and pressure to limit the use of antibiotics in food.

The AIM-listed company also said the integration of INVE, a manufacturer of nutrition and health products for aquaculture which the company bought in December 2015, is on plan as the account management programme was progressing and work on the first co-developed products had started.

Chief executive Malcolm Pye said: "I am pleased to announce that the group has delivered a solid performance in line with expectations, in a challenging but transformational year.

“We continue to execute our strategy to deploy world-leading technology through established distribution chains into long term growth markets, and our pipeline of products in development continues to progress well.”

Shares in Benchmark Holdings were down 2.09% to 63.64p at 1116 BST.