Shares sink after Benchmark posts 'disappointing' results

Revenues from continuing operations in the year to 30 September fell 3% to £127.3m, while adjusted operating profits tumbled 75% to £3.6m.

The pre-tax loss came in at £73.3m against a profit a year earlier of £0.5m, while net debt increased to £87.1m from £55.7m, following increased investment in research and development and a rise in working capital.

The Sheffield-based company blamed "challenging market conditions" for the performance and warned that "weakness in the shrimp and sea bass/beam markets" was continuing to affect current trading. "While some recovery is expected, it is unlikely to recover to 2018 levels in 2020," the Aim-listed company added. "The outlook in the salmon market remains positive."

Executive chairman Peter George said: "I am disappointed to be reporting results that are below those expected at the beginning of the financial year, due largely to poor market conditions affecting our largest division, Advanced Nutrition.

"Following these disappointing results, and the management changes announced in August, our priorities for the coming year are to deliver the programme of disposals and restructuring."

George said the company would seek regulatory approval for the launch of new products and would continue focus on its core areas of both advanced nutrition and genetics.

"There is a growing need in the market for solutions that improve the sustainability of food production in aquaculture," he added.

At 0915 GMT, shares in Benchmark were off 12% at 41.15p.