Progressive Equity Research Event - April 2018

Wednesday, May 09 2018 by
7

In mid-April I attended an excellent investor event hosted by PIWorld at the offices of MHP Communications. All of the companies presenting caught my interest and I've been meaning to write up my thoughts since then - despite being interrupted by Mello 2018!

Benchmark Holdings

Prior to this event I had no idea what Benchmark did and couldn't have guessed from their name. As explained by Malcolm Pye (CEO) and Mark Plampin (CFO) they are in the business of aquaculture with the specific goal of increasing yields through improvements in health, genetics and nutrition. The reason this is worth doing is that a growing global middle-class are pushing up protein consumption and putting real pressure on food production. Other areas of agriculture have spent time raising yields to deal with this but apparently fish farming has only taken off in the last 20 years, for most species, and is behind the curve. As such there's a real need for proven solutions across the fish life-cycle and that's where Benchmark come in with their history of R&D, patents and pipeline of products.

On the genetics front they are creating breed stocks with the very desirable traits of improved growth rates, better disease resistance and higher product quality. Right now salmon is the main focus but shrimp and tilapia have been added to appeal to the Asian and American markets. Then comes nutrition and here Benchmark apparently have preferential access to artemia, a shrimp food-stock which is in short supply, and they use this to create products that promote growth and immune system strength. Then there's the health aspect and this is all about creating vaccines and putting them through trials (much like any other pharma company). As such I imagine that a successful vaccine creates a barrier to entry for competitors and Benchmark have over 25 years experience in this market.

Now this all sounds great but it would be remiss of me to ignore the fact that the company hasn't made a profit since listing in 2013. This is probably a result of high capex and R&D demands, as the company has acted to take market share and reinforce customer relationships, but at some point all of this investment needs to pay off. Analyst forecasts suggest that the company will hit break-even in 2019/20 with earnings…

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Benchmark Holdings plc is engaged in the provision of aquaculture health, genetics and nutrition. The Company’s segments include genetics, advanced nutrition and health. The Company develops products that helps fish and shrimp to improve their sustainability and profitability by improving yield, quality, and by reducing mortality. The Company’s products include high genetic quality ova for salmon, shrimp and tilapia, and breeding, program, specialist feeds for early stage shrimp and fish; probiotics, Vaccines, biocides, and medicines. more »

LSE Price
52.5p
Change
-2.4%
Mkt Cap (£m)
300.3
P/E (fwd)
n/a
Yield (fwd)
n/a

Miton Group plc, formerly MAM Funds plc, is an investment management company. The Company provides fund management services. Its funds are invested in a range of asset classes under various investment mandates, including multi-asset, equity and portfolios of collective investment schemes. Its product range includes equities, such as CF Miton UK Multi Cap Income Fund and FP Miton Income Fund; multi-assets, such as CF Miton Cautious Multi Asset Fund and PFS Miton Cautious Monthly Income Fund; fund of investment trusts, such as CF Miton Worldwide Opportunities Fund, and closed-end funds, such as The Diverse Income Trust plc and Miton Global Opportunities plc. Its subsidiaries include Miton Group Service Company Limited, which is a holding company and central services provider; PSigma Asset Management Holdings Limited, which is an intermediate holding company; Miton (Hong Kong) Limited, which is a marketing company, and Miton ESOP Trustee Limited, which is a trustee company. more »

LSE Price
48p
Change
1.7%
Mkt Cap (£m)
81.5
P/E (fwd)
10.0
Yield (fwd)
4.9

IG Design Group plc, formerly International Greetings plc, is engaged in the design, manufacture and distribution of gift packaging and greetings; stationery and creative play products, and design-led giftware. The Company's geographic segments include UK and Asia; Europe; USA, and Australia. The Company sells its products in over 150,000 stores across approximately 80 countries. It also offers a portfolio of licensed and customer bespoke products suitable for sale through multi channel distribution. The Company's products include crackers, pens and pencils, stickers, single cards and gift wrap. The Company offers its products under the brands A Star, B Stationery, Papercraft and Pepperpot. Its subsidiaries include Artwrap Pty Ltd, International Greetings UK Ltd, International Greetings USA, Inc, International Greetings Asia Ltd, The Huizhou Gift International Greetings Company Limited, Hoomark BV, Anchor International BV and Hoomark S.p.z.o.o. more »

LSE Price
586p
Change
-0.2%
Mkt Cap (£m)
461.5
P/E (fwd)
18.0
Yield (fwd)
1.8



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2 Posts on this Thread show/hide all

Damian Cannon 10th May '18 1 of 2

Just added links to the videos of each presentation - thanks to PIWorld.

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john652 11th May '18 2 of 2

Highly recommend these PI Recordings, excellent way to understand the companies.

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