Benchmark makes strong start in first quarter

The AIM-traded company described consistent year-on-year growth in revenue and adjusted EBITDA on a rolling 12-month basis.

In the first three months of the year, revenues reached £54.5m, which was 36% ahead of the prior year, or 29% at a constant exchange rate basis.

Genetics delivered strong revenue growth, with a 41% increase year-on-year, driven primarily by higher sales of salmon eggs and harvest revenues.

Advanced nutrition also reported strong growth, with revenues 19% above the first quarter of 2022, benefiting from continued positive trading and foreign exchange movements.

The health unit reported solid growth, with revenues 80% higher year-on-year, driven by increased adoption of ‘Ectosan Vet’ and ‘CleanTreat’, and significantly higher sales of ‘Salmosan Vet’.

Benchmark said its first quarter adjusted EBITDA, excluding fair value movements from biological assets, was up 61% at £12.1m, as a result of higher revenues, higher asset use, and continued cost discipline.

Notably, it said adjusted EBITDA in health increased substantially to £4.1m in the quarter, demonstrating the potential of that business area to deliver profitability.

The group’s adjusted EBITDA margin of 22% excluding fair value movements from biological assets was higher than the 19% it reported a year ago.

Benchmark reported a net operating loss for the first quarter of £0.1m, making for an improvement from the prior year's loss of £1.5m, with the net loss of £0.7m also significantly reduced from last year's £5.1m.

The cash inflow from operating activities for the quarter totalled £8.1m, which was an improvement from the prior year's inflow of £1.1m.

Benchmark said its cash, liquidity, and net debt all improved compared to the year-end position, with cash of £42.8m and liquidity of £62.8m.

The company also reduced net debt, excluding lease liabilities, to £37.9m, from £47.5m at the end of September, including the benefit of net proceeds from the fundraise in December of £11.6m.

“Benchmark has had an excellent start to the year, again showing a continuation of the consistent growth we have seen in revenues and net operating profit on a 12-month rolling basis,” said chief executive officer Trond Williksen.

“This is the result of a good performance in all our business areas.

“In particular, it is pleasing to see traction in our health business driven by significantly higher adoption of our sea lice solutions, contributing to a positive financial performance for the quarter.”

Williksen said the company was making progress towards its goal of up-listing to the Oslo Børs - the “preeminent listing venue” for aquaculture and seafood companies globally.

“This will enable us to increase our visibility with a dedicated group of analysts and investors.”

At 1610 GMT, shares in Benchmark Holdings were up 4.29% at 36.5p.

Reporting by Josh White for Sharecast.com.