REG - Benchmark Hlgs PLC - Interim Results
12/06/2025 07:00
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RNS Number : 4846M Benchmark Holdings PLC 12 June 2025
12 June 2025
Benchmark Holdings plc
("Benchmark", the "Company" or the "Group")
Half year results for the six months ended 31 March 2025
Completion of sale of Genetics business resulting in £76m Group profit
Continuing business performing in line with expectations
Benchmark (AIM: BMK, Euronext Growth Oslo: BMK), the aquaculture biotechnology
company, announces its unaudited interim results for the six months ended 31
March 2025 (the "Period" or "H1 FY25").
Financial Highlights
Overview
· Group profit after tax from continuing and discontinued operations of
£76.0m driven by an £90.9m gain from the sale of the Genetics business,
completed on 31 March 2025
· Post period end the Company announced plans to return capital to
shareholders and to delist the Company from AIM and Euronext Growth Oslo
Continuing business
· H1 FY25 results for the continuing business reflect an improvement in
Advanced Nutrition in the second quarter of the year and a continued solid
performance in Health
· Group revenues from continuing activities of £40.6m were 22% below
H1 FY24 (-17% assuming constant exchange rates CER) primarily as result of a
pause in sales of Ectosan® Vet and CleanTreat® since the second half of FY24
while the new land-based model is developed
o Advanced Nutrition revenues were £37.7m (H1 FY24: £40.4m), down 1% CER
reflecting improved trading in Q2 FY25 partially offsetting weak Q1 FY25
performance
o Health revenues were £3.0m (H1 FY24: £11.5m) reflecting pause in
Ectosan®Vet and CleanTreat® and lower Salmosan® Vet sales as a result of
timing differences across financial periods
· Adjusted EBITDA from continuing operations was £4.2m (H1 FY24:
£9.6m) driven by lower revenues as above, whilst cost base is not yet fully
reflective of corporate streamlining underway post Genetics sale
· Group operating costs were £14.2m, 13% below H1 FY24:
o Advanced Nutrition and Health reported a reduction in operating costs
following restructuring in the prior year
o Corporate costs include costs previously allocated to Genetics which will
be eliminated as a result of streamlining underway
· Operating loss from continuing operations was £8.4m (H1 FY24: loss
of £7.2m)
· Cash, liquidity and net debt:
o Cash and cash equivalents of £116.9m and liquidity (cash and available
facility) of £131.6m at 10 June 2025
o Net cash of £125.9m at 31 March 2025, with borrowings fully repaid after
the period end in April 2025
Strategic and Operational Highlights
· Advanced Nutrition - Continued commercial and operational progress
o The Company's diversified portfolio of high performing products and
solutions is performing well as producers seek to optimise performance and
yield
o Products launched in the last two years including high performing fish
diets are increasingly adopted by customers, resulting in increased sales
o Improved product mix compared to H2 FY24 and Q1 FY25 with increased
availability of high quality Artemia
o Launched new algae product during the period which is generating good
traction
o Strategy implemented in key Ecuadorian market to strengthen local presence
to leverage our technical team is delivering results
o Conditions in shrimp market still challenging in Q2 FY25; post period end
the new US tariff regime has caused some uncertainty
o Conditions in Mediterranean fish market are positive with improved end
pricing and benefits of industry consolidation coming through
· Health - Solid performance of core Salmosan® Vet business post
restructuring in FY24
o Salmosan® Vet business performing well with sales in line with management
expectations and continued cost discipline.
o Positioned for relaunch of Ectosan® Vet and CleanTreat® with new
land-based configuration subject to customer interest in the new capital-light
solution
· Group - Genetics disposal complete. Repayment of Green Bond and RCF
post period end. Proposals to return capital to shareholders and delist from
AIM and Euronext Growth Oslo announced post period end
o Genetics disposal completed on 31 March 2025 realising gross cash proceeds
of c. £194m
§ Streamlining of corporate structure resulting from disposal of Genetics
business well advanced post period end
§ Obligations under transaction services agreement are substantially complete
and expect to be fulfilled by 30 June 2025
o Repayment of Green Bond, revolving credit facilities and associated
hedging instruments post period end which in total amounted to
approximately £87m
o Proposals for return of capital and future of the continuing business
announced on 23 May 2025*. Proposals include:
§ Cancellation of the admissions to trading of the Company's Ordinary Shares
on AIM and Euronext Growth Oslo
§ Re-registration of the Company as a private limited company
§ Opportunity for Qualifying Shareholders to realise all or some of their
investment in the Company by accepting a Tender Offer at a Tender Offer
Price of 25 pence per Ordinary Share
§ A planned special dividend for Shareholders that do not participate in the
Tender Offer to be paid following the successful implementation of the Tender
Offer and the De-Listings
§ Implementation of the Tender Offer, the De-Listings and the
Re-Registration, is conditional, inter alia, upon the applicable Resolutions
being passed at the forthcoming General Meeting to be held at 12.00 noon on 18
June 2025 and on the Norwegian Approval
§ Expected last day of dealings in the Ordinary Shares on AIM and Euronext
Growth Oslo expected to be within 2 - 3 months of the date of the Norwegian
Approval
* Unless otherwise defined, capitalised terms used in this announcement have
the same meanings as ascribed to them in the circular found in this link
http://www.rns-pdf.londonstockexchange.com/rns/9520J_1-2025-5-23.pdf
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Current trading and outlook - trading in line with expectations for the full
year
The Group is trading in line with expectations for the full year underpinned
by improving performance in Advanced Nutrition since the latter part of Q1
FY25 albeit with some uncertainty caused by the new US tariff regime. Health
is now a profitable, cash positive business focusing on Salmosan® Vet.
Financial Summary
£m H1 FY25 H1 FY24 % AER % CER(**) FY24
Restated* (full year)
Revenue 40.6 51.8 -22% -17% 90.4
Adjusted
Adjusted EBITDA(1) 4.2 9.6 -56% -56% 11.9
Adjusted Operating profit(2) 2.4 1.6 57% 55% (16.6)
Statutory
Operating loss continuing operations (8.4) (7.2) -16% -17% (35.5)
Loss before tax continuing operations (12.6) (11.6) -9% -9% (45.9)
Loss for the period from continuing operations (13.1) (11.4) -15% -16% (44.3)
Profit from discontinued operations 89.1 2.6 5.2
Basic earnings per share (p) (including discontinued operations) 10.33 (1.21) (5.34)
Net cash/(debt)(3) 125.9 (72.7) (49.0)
* H1 2024 numbers were restated to reflect the results of the Genetics
business being classified as a discontinued operation in FY24 in line with
IFRS5 following the decision to sell the business area
**Constant exchange rate (CER) figures derived by retranslating current year
figures using previous year's foreign exchange rates
(1) Adjusted EBITDA is EBITDA (earnings before interest, tax, depreciation and
amortisation and impairment), before exceptional items - restructuring,
acquisition and disposal related expenditure
(2) Adjusted Operating Profit is operating loss before exceptional items
including acquisition related items and amortisation of intangible assets
excluding development costs
(3) Net cash/(debt) is cash and cash equivalents less loans and borrowings
Business Area summary
£m H1 FY25 H1 FY24 % AER % CER(*) FY24
(full year)
Revenue
Advanced Nutrition 37.7 40.4 -7% -1% 75.9
Health 3.0 11.5 -74% -73% 14.5
Adjusted EBITDA(1)
Advanced Nutrition 6.5 9.9 -35% -35% 14.4
Health 0.5 2.2 -78% -77% 2.1
*Constant exchange rate (CER) figures derived by retranslating current year
figures using previous year's foreign exchange rates
(1) Adjusted EBITDA is EBITDA (earnings before interest, tax, depreciation and
amortisation and impairment), before exceptional items - restructuring,
acquisition and disposal related expenditure
Trond Williksen, CEO of Benchmark, commented:
"The streamlining of Benchmark following the sale of the Genetics business is
well underway and the performance in the remaining business has developed
positively and in line with our expectations in the last quarter.
"The announced decision to delist the Company from AIM and from Euronext
Growth Oslo is driven by strong commercial rationale, reducing costs and
rightsizing the remaining business for the next phase."
Webcast for analysts and institutional investors at 8.00 a.m. UK time (9.00
a.m. CET)
Trond Williksen, Chief Executive Officer and Septima Maguire, Chief Financial
Officer will host a webcast for analysts and institutional investors today at
08.00 a.m. UK time (9.00 a.m. CET) available at
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20250612_2
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Equity Development webcast for retail investors at 10.00 a.m. UK time (11.00
a.m. CET)
Trond Williksen, Chief Executive Officer and Septima Maguire, Chief Financial
Officer will host a second webcast for retail investors and wealth managers
today at 10.00 a.m. UK time (11.00 a.m. CET). The webcast is open to all
existing and potential shareholders. To register please visit:
https://www.equitydevelopment.co.uk/news-and-events/benchmark-investor-presentation-12june2025
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Enquiries
Benchmark Holdings plc benchmark@mphgroup.com (mailto:benchmark@mphgroup.com)
Trond Williksen, CEO
Septima Maguire, CFO
Ivonne Cantu, Investor Relations
Strand Hanson Limited (Nominated Adviser and Broker) Tel: 020 7409 3494
Christopher Raggett, James Dance, Rob Patrick
MHP Group Tel: +44 7884 494112
Katie Hunt, Reg Hoare benchmark@mhpgroup.com (mailto:benchmark@mhpgroup.com)
Management Report
Introduction
H1 FY25 was a milestone period for Benchmark with the completion of the sale
of the Genetics business generating £193.7m gross proceeds and resulting in
an £90.9m gain which drove Group profit after tax to £76.0m. Post period
end, following completion of the sale, the Company paid down the Green Bond,
revolving credit facilities and associated hedging instruments which in total
amounted to approximately £87m. On 23 May 2025, the Company announced
Proposals to cancel the Company's admission to trading on AIM and Euronext
Growth Oslo and to return capital to shareholders via a Tender Offer and a
special dividend to those shareholders remaining in the Company post the
delistings. Full information on the Proposals including background and reasons
for the Proposals which are subject to shareholder approval at a General
Meeting on 18 June 2025 can be found in this link Delisting and Tender Offer -
Benchmark Holdings plc (LON:BMK)
(https://protect.checkpoint.com/v2/___https:/www.benchmarkplc.com/delisting/___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzowYjAwMmY2ZDBhZTcwMmNhMDRmZjcxZDJhNDhmZjMwMzo2OjgyNzI6ODZhYjJmMDliNWRjZWM0ZDhlMGYzMzMxMTlhY2ZjZDg4ZjRkN2ZiY2M1M2RhNTU2N2YyNDJhNDAwNDc1NGM2NzpwOkY6Tg)
Continuing business performance
Revenues in H1 FY25 were £40.6m, 22% below H1 FY24 (-17% CER) reflecting an
improved performance in Advanced Nutrition in Q2 2025, albeit with some forex
headwinds, and the expected reduction in Health year on year having paused
sales of Ectosan® Vet and CleanTreat® while a new land-based configuration
is being developed, and refocusing the business on its Salmosan® Vet
solution. Adjusted EBITDA was £4.2m (H1 FY24: £9.6m) as a result of lower
revenues in both business areas and lower gross profit margin in Advanced
Nutrition against the prior year, partially offset by lower operating costs.
By business area, Advanced Nutrition reported an improvement in Q2 FY25
partially offsetting a weak Q1 FY25 performance. First half revenues were
£37.7m, 7% below H1 FY24, but -1% on a constant exchange rate basis. H1
FY25 Adjusted EBITDA was £6.5m, 35% below H1 FY24 (-35% CER) driven by lower
revenues and a lower gross profit margin. The gross profit margin was 47% (H1
FY24: 53%) due to an unfavourable product mix against last year partially as a
result of the mix of Artemia grades available in Q1. Q2 saw an improvement in
the product mix which is expected to continue in the remainder of the year.
Conditions in the shrimp market remained challenging in Q2 FY25 and post
period end and the tariffs imposed by the US government on some of the key
aquaculture producing countries have caused shrimp producers to take a more
cautious approach. We are actively assessing potential steps to mitigate the
impact of this development. Conditions in the Mediterranean fish market are
positive with an increase in the gate price and benefits from industry
consolidation in recent years creating a favourable environment for producers.
In Health, H1 FY25 revenues were £3.0m (H1 FY24: £11.5m) reflecting the
pause in sales of Ectosan®Vet and CleanTreat® while a new land-based
business model for the offering is developed. Sales of Salmosan®Vet were
£3.0m (H1 FY24: £5.7m) with the drop driven primarily by lower revenues from
Canada due to the timing of a significant sale which took place in Q2 in FY24
and which came through post period end in FY25. The gross profit margin was
62% (H1 FY24: 50%). Operating costs were significantly below the prior year at
£1.3m (H1 FY24: £3.4m) as a result of the restructuring conducted in FY24.
Adjusted EBITDA was £0.5m in the period (H1 FY24: £2.2m). The development
has continued in the period towards a new land-based configuration and
business model for Ectosan® Vet and CleanTreat®. We are working in
partnership with a specialist solutions provider, Water AS, and are positioned
to relaunch the solution subject to customer interest.
Group operating costs in H1 FY25 were £14.2m, 13% below H1 FY24 with a
reduction across both business areas. Corporate costs were in line with the
prior year at £4.0m (H1 FY24: £3.9m) and there were £1.4m of costs included
within continuing activities relating to recharges to the discontinued
Genetics business.
R&D expenses were £1.1m (H1 FY24: £1.3m) and total R&D investment
including capitalised development costs was £1.1m (H1 FY24: £1.4m) with no
costs capitalised in the period. Depreciation and amortisation were £8.5m
(H1 FY24: £14.8m) with the reduction relating to right of use assets in the
Health business area as the leases for the CleanTreat® vessels were
terminated in the prior year.
The Group reported an operating loss for continuing operations of £8.4m
(H1 FY24: £7.2m loss) as a result of lower revenues and a lower gross margin
partially offset by a reduction in operating costs, depreciation and
amortisation. Adjusted operating profit was £2.4m, 57% above H1 FY24 driven
by a significant improvement in Health from a £4.6m loss to a £0.2m profit
following the discontinuation of the leased infrastructure associated with
CleanTreat®, partially offset by lower adjusted operating profit in Advanced
Nutrition of £5.0m (H1 FY24: £8.6m).
Net finance costs for H1 FY25 were £4.3m in line with the prior year (H1
FY24: £4.4m) with a £0.6m increase in interest charges on higher borrowings
in the period offset by foreign exchange movements. Post period end following
completion of the Genetics disposal the Company paid down its debt including
the Green Bond, revolving credit facilities and associated hedging instruments
which totalled c.£87m.
Loss before tax from continuing operations in H1 FY25 was £12.6m (H1 FY24:
£11.6m loss). This included the impact of significant exceptional costs in
the period of £4.1m (H1 FY24: £2.0m), largely related to the strategic
review and costs for liabilities assumed associated with the Genetics business
following its disposal.
Total tax charge in H1 FY25 was £0.5m (H1 FY24: £0.2m credit). Loss after
tax for continuing operations was £13.1m (H1 FY24: £11.4m loss). Profit from
discontinued operations was £89.1m resulting from a profit of £90.9m from
the sale of the Genetics business leading to a total group profit for the
period from continuing and discontinued operations of £76.0m.
The Group reported a net increase in cash and cash equivalents of £184.3m in
the six months. This large increase arose from the net proceeds (after
disposal costs and cash disposed of) of £184.0m from the sale of the Genetics
business which produced net cash inflow from investing activities of £181.8m
after capital expenditure of £2.3m. This was supported by net cash inflow
from operating activities of £2.9m (H1 FY24: £2.0m outflow) after tax
payments of £3.5m (H1 FY24: £3.7m) in the period. The lower operational
performance noted above was offset by favourable working capital movements of
£3.5m largely due to an increase in payables for costs within the corporate
business area associated with the disposal of Genetics, compared to an
increase in working capital of £12.8m which largely arose in the now disposed
of Genetics business in the prior year.
Net cash outflow from financing activities was £0.3m (H1 FY24: £11.4m
outflow) reflecting additional drawing on our RCF in the period of £7.5m
offset by finance charges and payment of lease liabilities. Cash and cash
equivalents at the end of the period were £207.5m.
Outlook
The Company is trading in line with expectations for the full year in each of
the two business areas. The tariffs imposed by the US government on some of
the key shrimp aquaculture producing countries create some uncertainty in the
near-term causing shrimp producers to take a more cautious approach, and the
Company is proactively assessing potential steps to mitigate the impact of
this development.
For the longer term and more fundamentally, Benchmark has two well-positioned
businesses capable of delivering attractive margins and shareholder returns
and the Group's anticipated cost savings will fully benefit it in FY26.
All figures in £000's Notes Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Restated* FY 2024
(unaudited)
Restated*
(unaudited)
(unaudited)
(audited)
(unaudited)
Revenue 4 22,905 26,522 40,628 51,835 90,365
Cost of sales (10,917) (12,119) (21,063) (24,682) (46,418)
Gross profit 11,988 14,403 19,565 27,153 43,947
Research and development costs (582) (584) (1,148) (1,272) (2,443)
Other operating costs (6,959) (7,762) (14,215) (16,329) (29,582)
Adjusted EBITDA² 4,447 6,057 4,202 9,552 11,922
Exceptional - restructuring, acquisition and disposal related items 5 (2,517) (1,864) (4,090) (1,958) (5,581)
EBITDA¹ 1,930 4,193 112 7,594 6,341
Depreciation and impairment (830) (2,006) (1,670) (7,100) (10,949)
Amortisation and impairment (3,421) (3,819) (6,802) (7,683) (30,891)
Operating loss (2,321) (1,632) (8,360) (7,189) (35,499)
Finance cost 6 (5,020) (2,689) (6,151) (5,561) (14,209)
Finance income 6 1,781 1,809 1,887 1,149 3,783
Loss before taxation (5,560) (2,512) (12,624) (11,601) (45,925)
Tax on loss 7 (274) (418) (487) 204 1,646
Loss from continuing operations (5,834) (2,930) (13,111) (11,397) (44,279)
Discontinued operations
Profit from discontinued operations, net of tax 8 92,018 1,783 89,096 2,626 5,159
86,184 (1,147) 75,985 (8,771) (39,120)
Profit/(loss) for the year attributable to:
- Owners of the parent 86,441 (1,321) 76,512 (8,948) (39,464)
- Non-controlling interest (257) 174 (527) 177 344
86,184 (1,147) 75,985 (8,771) (39,120)
Earnings per share
Basic loss per share (pence) 9 11.66 (0.18) 10.33 (1.21) (5.34)
Diluted loss per share (pence) 9 11.66 (0.18) 10.33 (1.21) (5.34)
Earnings per share - continuing operations
Basic loss per share (pence) 9 (0.79) (0.41) (1.77) (1.54) (5.99)
Diluted loss per share (pence) 9 (0.79) (0.41) (1.77) (1.54) (5.99)
Adjusted EBITDA from continuing operations 4,447 6,057 4,202 9,552 11,922
Adjusted EBITDA from discontinued operations 8 325 4,091 944 7,270 16,698
Total Adjusted EBITDA 4,772 10,148 5,146 16,822 28,620
1 EBITDA - Earnings before interest, tax, depreciation, amortisation, and
impairment
2 Adjusted EBITDA - EBITDA before exceptional items - restructuring,
acquisition and disposal related items
*Q2 2024 and YTD Q2 2024 numbers were restated to reflect the results of the
Genetics business being classified as discontinued operations in FY24 in line
with IFRS5 following the decision to sell the business area (see note 8).
The accompanying notes are an integral part of this consolidated financial
information.
All figures in £000's Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Restated* FY 2024
(unaudited)
Restated*
(unaudited)
(unaudited)
(audited)
(unaudited)
Loss for the period 86,184 (1,147) 75,985 (8,771) (39,120)
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss
Foreign exchange translation differences (3,783) (3,579) 6,906 (10,992) (20,528)
Cash flow hedges - changes in fair value 1,297 (1,455) 1,204 (2,345) (3,505)
Cash flow hedges - reclassified to profit or loss (1,337) 1,494 (1,068) 1,614 2,687
Other comprehensive income for the period (3,823) (3,540) 7,042 (11,723) (21,346)
Total comprehensive income for the period 82,361 (4,687) 83,027 (20,494) (60,466)
Total comprehensive income for the period attributable to:
- Owners of the parent 82,459 (4,595) 83,432 (20,336) (60,259)
- Non-controlling interest (98) (92) (405) (158) (207)
82,361 (4,687) 83,027 (20,494) (60,466)
Total comprehensive income for the period attributable to owners of the
parent:
- Continuing operations (9,972) (3,258) (10,164) (16,067) (54,122)
- Discontinued operations** 92,431 (1,337) 93,596 (4,269) (6,137)
82,459 (4,595) 83,432 (20,336) (60,259)
* Q2 2024 and YTD Q2 2024 numbers were restated to reflect the results of the
Genetics business being classified as discontinued operations in FY24 in line
with IFRS5 following the decision to sell the business area (see note 8).
** Total comprehensive income for the period relating to discontinued
operations for Q2 2025 includes the profit of £92,018,000 and Q2 YTD 2025 of
£89,096,000 (Q2 2024: profit £1,783,000; Q2 YTD 2024: profit £2,626,000)
and foreign exchange gain in Q2 of £413,000 and Q2 YTD of £4,500,000 (Q2
2024: loss £3,120,000; Q2 YTD 2024: £6,894,000). FY24 includes the profit of
£5,159,000 and foreign exchange loss of £11,296,000.
The accompanying notes are an integral part of this consolidated financial
information.
31 March 2025 31 March 2024 30 September 2024
All figures in £000's Notes (unaudited) (unaudited) (audited)
Assets
Property, plant and equipment 10,624 68,525 10,107
Right-of-use assets 3,232 16,717 4,052
Intangible assets 112,802 190,861 115,527
Equity-accounted investees 2,520 4,538 2,315
Other investments - 1 -
Biological and agricultural assets - 18,547 -
Non-current assets 129,178 299,189 132,001
Inventories 24,382 22,790 23,674
Biological and agricultural assets - 25,132 -
Corporation tax asset - - 347
Trade and other receivables 63,214 54,589 42,539
Cash and cash equivalents 207,511 20,759 23,088
295,107 123,270 89,648
Assets held for sale 10 - - 163,252
Current assets 295,107 123,270 252,900
Total assets 424,285 422,459 384,901
Liabilities
Trade and other payables (25,770) (30,325) (30,102)
Loans and borrowings 11 (79,337) (17,292) (69,233)
Corporation tax liability (496) (4,583) -
Provisions (654) (1,843) (233)
(106,257) (54,043) (99,568)
Liabilities directly associated with the assets held for sale 10 - - (46,697)
Current liabilities (106,257) (54,043) (146,265)
Loans and borrowings 11 (2,274) (76,212) (2,837)
Other payables (2,004) (7,986) (1,607)
Deferred tax (8,604) (21,291) (9,923)
Provisions (2,316) - -
Non-current liabilities (15,198) (105,489) (14,367)
Total liabilities (121,455) (159,532) (160,632)
Net assets 302,830 262,927 224,269
Issued capital and reserves attributable to owners of the parent
Share capital 12 742 739 740
Additional paid-in share capital 12 37,490 37,428 37,490
Capital redemption reserve 5 5 5
Retained earnings 210,609 175,345 146,080
Hedging reserve (957) (934) (1,021)
Foreign exchange reserve 54,941 44,290 34,970
Equity attributable to owners of the parent 302,830 256,873 218,264
Non-controlling interest - 6,054 6,005
Total equity and reserves 302,830 262,927 224,269
The accompanying notes are an integral part of this consolidated financial
information,
All figures in £000's Share Additional paid-in share capital Other Hedging Retained Total attributable Non- Total
capital
reserves*
reserve
earnings
to equity holders of
controlling
equity
parent
interest
As at 1 October 2024 (audited) 740 37,490 34,975 (1,021) 146,080 218,264 6,005 224,269
Comprehensive income/(loss) for the period
Loss for the year - - - - 76,512 76,512 (527) 75,985
Other comprehensive income - - 6,784 136 - 6,920 122 7,042
Total comprehensive income for the year - - 6,784 136 76,512 83,432 (405) 83,027
Contributions by and distributions to owners
Share issue 2 - - - - 2 - 2
Transfer of reserves - - 13,187 (13,187) - - -
Share-based payment - - - - 1,204 1,204 - 1,204
Total contributions by and distributions to owners 2 - 13,187 - (11,983) 1,206 - 1,206
Changes in ownership
Disposal of subsidiary - - - (72) - (72) (5,600) (5,672)
Total changes in ownership interests - - - (72) - (72) (5,600) (5,672)
Total transactions with owners of the Company 2 - 13,187 (72) (11,983) 1,134 (5,600) (4,466)
As at 31 March 2025 (unaudited) 742 37,490 54,946 (957) 210,609 302,830 - 302,830
As at 1 October 2023 (audited) 739 37,428 54,952 (203) 183,489 276,405 6,212 282,617
Comprehensive income/(loss)for the period
(Loss)/profit for the period - - - - (8,948) (8,948) 177 (8,771)
Other comprehensive income/(loss) - - (10,657) (731) - (11,388) (335) (11,723)
Total comprehensive income/(loss)for the period - - (10,657) (731) (8,948) (20,336) (158) (20,494)
Contributions by and distributions to owners
Share-based payment - - - - 804 804 - 804
Total contributions by and distributions to owners - - - - 804 804 - 804
Total transactions with owners of the Company - - - - 804 804 - 804
As at 31 March 2024 (unaudited) 739 37,428 44,295 (934) 175,345 256,873 6,054 262,927
As at 1 October 2023 (audited) 739 37,428 54,952 (203) 183,489 276,405 6,212 282,617
Comprehensive income for the period
(Loss)/profit for the year - - - - (39,464) (39,464) 344 (39,120)
Other comprehensive income - - (19,977) (818) - (20,795) (551) (21,346)
Total comprehensive income for the year - - (19,977) (818) (39,464) (60,259) (207) (60,466)
Contributions by and distributions to owners
Share issue 1 62 - - - 63 - 63
Share-based payment - - - - 2,055 2,055 - 2,055
Total contributions by and distributions to owners 1 62 - - 2,055 2,118 - 2,118
Total transactions with owners of the Company 1 62 - - 2,055 2,118 - 2,118
As at 30 September 2024 (audited) 740 37,490 34,975 (1,021) 146,080 218,264 6,005 224,269
*Other reserves in this statement is an aggregation of capital redemption
reserve and foreign exchange reserve
The accompanying notes are an integral part of this consolidated financial
information.
All figures in £000's Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 FY 2024
(unaudited)
(unaudited)
(unaudited)
(unaudited)
(audited)
Cash flows from operating activities
Loss for the period 86,184 (1,148) 75,985 (8,772) (39,120)
Adjustments for:
Depreciation and impairment of property, plant and equipment 478 2,098 2,679 5,068 9,319
Depreciation and impairment of right-of-use assets 352 1,220 716 4,500 7,001
Amortisation and impairment of intangible fixed assets 3,421 4,221 6,802 8,489 32,529
Gain on sale of subsidiaries (90,891) - (90,891) - -
Profit on sale of property, plant and equipment - (231) (77) (226) (416)
Finance income (112) (76) (159) (286) (430)
Finance costs 2,469 2,710 5,213 5,395 11,293
Profit on disposal of investments in joint ventures - - - (42) (42)
Share of profit of equity-accounted investees, net of tax (700) (667) (440) (984) (1,288)
Foreign exchange loss 874 (1,079) 1,078 (336) 1,179
Share-based payment expense 702 552 1,204 804 2,054
Tax expense 435 477 691 910 495
Decrease/(increase) in trade and other receivables 1 1,151 4,958 2,342 (1,136)
(Increase)/decrease in inventories (920) 1,177 (803) 1,747 89
(Increase)/decrease in biological and agricultural assets (1,432) (695) (4,279) 118 (718)
Increase/(decrease) in trade and other payables 10,018 (2,564) 898 (15,957) (9,974)
Increase/(decrease) in provisions 2,766 (1,010) 2,737 (1,003) (2,012)
13,645 6,136 6,312 1,767 8,823
Income taxes paid (2,672) (2,513) (3,454) (3,717) (6,819)
Net cash flows generated from/(used by) operating activities 10,973 3,623 2,858 (1,950) 2,004
Investing activities
Proceeds from disposal of subsidiaries, net of costs and cash disposed 183,971 - 183,971 - -
Purchase of investments in associates (112) (143) (112) (143) (209)
Receipts from disposal of subsidiaries, joint ventures, and other investments - - - 37 37
Purchases of property, plant and equipment (1,229) (849) (2,047) (1,770) (3,509)
Proceeds from sales of intangible assets - - - - 32
Purchase of intangibles (239) (35) (307) (85) (268)
Capitalised research and development costs - (32) - (94) (149)
Proceeds from sale of fixed assets 1 253 108 271 804
Interest received 53 82 159 286 430
Net cash flows used in investing activities 182,445 (724) 181,772 (1,498) (2,832)
Financing activities
Proceeds from exercise of share options 2 - 2 - 63
Proceeds from bank or other borrowings, net of borrowing fees 3,500 (259) 7,500 (259) 8,196
Repayment of bank or other borrowings (361) (860) (868) (1,246) (1,990)
Interest and finance charges paid (2,033) (2,257) (4,188) (4,507) (9,119)
Repayments of lease liabilities (627) (2,514) (2,789) (5,368) (8,121)
Net cash used in financing activities 481 (5,890) (343) (11,380) (10,971)
Net decrease in cash and cash equivalents 193,899 (2,991) 184,287 (14,828) (11,799)
Cash and cash equivalents at beginning of period 13,808 24,164 23,088 36,525 36,525
Effect of movements in exchange rate (196) (414) 136 (938) (1,638)
Cash and cash equivalents at end of period 207,511 20,759 207,511 20,759 23,088
The accompanying notes are an integral part of this consolidated financial
information.
1. Basis of preparation
Benchmark Holdings plc (the 'Company') is a company incorporated and domiciled
in the United Kingdom. These consolidated quarterly financial statements as at
and for the six months ended 31 March 2025 comprise those of the Company and
its subsidiaries (together referred to as the 'Group').
These consolidated quarterly financial statements do not comprise statutory
accounts within the meaning of section 434 of the Companies Act 2006 and are
unaudited. These financial statements do not include all the information
required for a complete set of IFRS financial statements. However, selected
explanatory notes are included to explain events and transactions that are
significant to an understanding of the changes in the Group's financial
position and performance since the last annual financial statements. The
Group's last annual statutory financial statements as at and for the year
ended 30 September 2024 were prepared in accordance with (i) UK-adopted
International Accounting Standards and (ii) IFRS adopted pursuant to
Regulation (EC) No. 1606/2002 as it applied in the European Union ("Adopted
IFRS") and are available from the Company's website at www.benchmarkplc.com
(https://protect.checkpoint.com/v2/___http:/www.benchmarkplc.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzo0MTZhNThiOGE0YTA3ZWUxNWY3YjYzNjU5MGMxYmY4ODo2OjE0YjA6YmQ4MzUwN2ZjYjVhZmQ0YTg3NGYxZDBkNTNiMGVmMmU1NDYyN2ZlNTk4NmI3ZDg5M2M5MzlhOTRkZGJlMDMwNjpwOlQ6Tg)
.
The prior year comparatives are derived from audited financial information for
Benchmark Holdings PLC Group as set out in the Annual Report and Accounts for
the year ended 30 September 2024 and the unaudited financial information in
the Quarterly Financial Report for the six months ended 31 March 2024. The
comparative figures for the financial year ended 30 September 2024 are not the
Company's statutory accounts for that financial year. Those accounts were
approved by the Directors on 12 December 2024 and have been delivered to the
Registrar of Companies. The audit report received on those accounts was (i)
unqualified and (ii) did not contain a statement under section 498(2) or (3)
of the Companies Act 2006 but did contain an emphasis of matter paragraph in
relation to going concern.
Statement of Compliance
These consolidated quarterly financial statements have been prepared and
approved by the Directors in accordance with UK and EU adopted IAS 34 'Interim
Financial Reporting'. These financial statements do not include all of the
information required for the full annual financial statements and should be
read in conjunction with the Group's last annual consolidated financial
statements as at and for the year ended 30 September 2024. These consolidated
quarterly financial statements were approved by the Board of Directors on 12
June 2025.
Going concern
The Group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Management
Report.
As at 31 March 2025 the Group had net assets of £302.8m (30 September 2024:
£224.3m), including cash of £207.5m (30 September 2024: £23.1m) as set out
in the consolidated balance sheet. The Group made a total profit for the
period of £76.0m (year ended 30 September 2024: loss £39.1m).
As noted in the Management Report, the business continues to experience tough
trading conditions in the shrimp markets, but the best efforts of management
have produced solid trading results against these challenges. Additionally,
the Health business area is performing solidly after being derisked in its
restructuring in the prior year, and the combined group following the disposal
of Genetics is trading in line with expectations for the full year.
On 25 November 2024, an agreement was signed for the Group to sell the whole
Genetics business for consideration of up to £260m, with gross proceeds of
£230m received up front and up to £30m earnout receivable in three years.
Completion of the deal took place on 31 March 2025 and the net proceeds
received have been used to repay the Group's debt after the period end in
April 2025. With sufficient cash resources, a replacement undrawn USD 19m
RCF has been put in place to provide the Group with the flexibility to allow
for working capital demands and provides additional headroom against the
financial covenants in place under the new facility. The group therefore has
adequate resource to allow it to continue to realise its assets and to
discharge its liabilities in the normal course of business and operate as a
going concern.
The Directors have reviewed forecasts and cash flow projections for a period
of 12 months (the going concern assessment period), including downside
sensitivity assumptions in relation to trading performance across the Group,
to assess the impact on the Group's trading and cash flow forecasts and on the
forecast compliance with the covenants included within its financing
arrangements. In the downside analysis performed, the Directors considered
severe but plausible scenarios on the Group's trading and cash flow forecasts.
Key downside sensitivities modelled included assumptions on lower sales growth
from a possible slower recovery in the shrimp market in Advanced Nutrition and
have not included any sales from relaunching Ectosan®/CleanTreat® sales
within Health.
The Directors are confident that following the disposal of the Genetics
business, the Group is in a solid position and even under all of the above
sensitivity analysis, the Group has sufficient liquidity and resources
throughout the period under review whilst still maintaining adequate headroom
against the borrowing covenants. They therefore remain confident that the
Group has adequate resources to continue to meet its liabilities as and when
they fall due within the period of 12 months from the date of approval of
these financial statements. Based on their assessment, the Directors believe
it remains appropriate to prepare the financial statements on a going concern
basis.
2. Accounting policies
The accounting policies adopted are consistent with those used in preparing
the consolidated financial statements for the financial year ended 30
September 2024. Taxes on income in the interim periods are accrued using the
tax rate that would be applicable to expected total earnings.
Alternative performance measures ('APMs')
The Directors measure the performance of the Group based on a range of
financial measures, including measures not recognised by UK or EU-adopted
IFRS. These APMs may not be directly comparable with other companies' APMs,
and the Directors do not intend these as a substitute for, or superior to,
IFRS measures.
Directors have presented the performance measures Adjusted EBITDA, Adjusted
Operating Profit and Adjusted Profit Before Tax because they monitor
performance at a consolidated level using these and believe that these
measures are relevant to an understanding of the Group's financial performance
(see note 13). Furthermore, the Directors also refer to current period results
using constant currency, which are derived by retranslating current period
results using the prior year's foreign exchange rates.
Use of estimates and judgements
The preparation of quarterly financial information requires management to make
certain judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual amounts may differ from these estimates. In preparing
these quarterly financial statements the significant judgements made by
management in applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those applied to the consolidated
financial statements for the year ended 30 September 2024.
3. Segment information
Operating segments are reported in a manner consistent with the reports made
to the chief operating decision maker. It is considered that the role of chief
operating decision maker is performed by the Board of Directors.
The Group operates globally and for management purposes is organised into
reportable segments based on the following business areas:
· Advanced Nutrition - manufactures and provides technically
advanced nutrition and health products to the global aquaculture industry and
· Health - the segment provides health products and services to the
global aquaculture market.
Details have also been provided for the recently disposed of Genetics segment,
which harnessed industry leading salmon breeding technologies combined with
state-of-the-art production facilities to provide a range of year-round high
genetic merit ova. Following management's decision and subsequent commitment
to sell the Group's Genetics business, this was classified within discontinued
operations in the income statement and consequently the figures for Q2 2024
and YTD Q2 2024 have been restated (see note 8).
In order to reconcile the segmental analysis to the consolidated income
statement, corporate and inter-segment sales are also shown. Corporate sales
represent revenues earned from recharging certain central costs to the
operating business areas, together with unallocated central costs.
Measurement of operating segment profit or loss
Inter-segment sales are priced along the same lines as sales to external
customers, with an appropriate discount being applied to encourage use of
Group resources at a rate acceptable to local tax authorities. This policy
was applied consistently throughout the current and prior period.
3. Segment information (continued)
Reconciliations of segmental information to IFRS measures
Segmental Revenue
All figures in £000's Notes Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 FY 2024
(unaudited)
(unaudited)
(unaudited)
(unaudited)
(audited)
Genetics 10,763 13,231 21,825 28,395 57,385
Advanced Nutrition 21,598 21,130 37,715 40,413 75,918
Health 1,317 5,401 2,959 11,460 14,525
Corporate 1,329 1,349 2,659 2,698 4,040
Inter-segment sales (1,343) (1,360) (2,711) (2,742) (4,142)
Total 33,664 39,751 62,447 80,224 147,726
Discontinued operations 8 (10,759) (13,229) (21,819) (28,389) (57,361)
Continuing operations 22,905 26,522 40,628 51,835 90,365
Segmental Adjusted EBITDA
All figures in £000's Notes Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 FY 2024
(unaudited)
(unaudited)
(unaudited)
(unaudited)
(audited)
Genetics (370) 3,425 (472) 5,923 14,828
Advanced Nutrition 5,618 5,276 6,456 9,876 14,373
Health 167 1,636 494 2,206 2,055
Corporate (643) (189) (1,332) (1,183) (2,636)
Total 4,772 10,148 5,146 16,822 28,620
Discontinued operations 8 (325) (4,091) (944) (7,270) (16,698)
Continuing operations 4,447 6,057 4,202 9,552 11,922
Reconciliation of Reportable Segments Adjusted EBITDA to Loss before
taxation
All figures in £000's Notes Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 FY 2024
(unaudited)
(unaudited)
(unaudited)
(unaudited)
(audited)
Total reportable segment Adjusted EBITDA 5,415 10,337 6,478 18,005 31,256
Corporate Adjusted EBITDA (643) (189) (1,332) (1,183) (2,636)
Adjusted EBITDA 4,772 10,148 5,146 16,822 28,620
Exceptional - restructuring, acquisition and disposal related items 88,108 (1,962) 86,510 (2,479) (7,381)
Depreciation and impairment (830) (3,318) (3,395) (9,568) (16,320)
Amortisation and impairment (3,421) (4,221) (6,802) (8,489) (32,529)
Net finance costs (2,010) (1,317) (4,783) (4,148) (11,015)
Total loss before taxation 86,619 (670) 76,676 (7,862) (38,625)
Discontinued operations 8 (92,179) (1,842) (89,300) (3,739) (7,300)
Continuing operations (5,560) (2,512) (12,624) (11,601) (45,925)
4. Revenue
The Group's operations and main revenue streams are those described in its
financial statements to 30 September 2024. The Group's revenue is derived from
contracts with customers.
Disaggregation of revenue
In the following tables, revenue is disaggregated by primary geographical
market and by sales of goods and services. The table includes a reconciliation
of the disaggregated revenue with the Group's reportable segments (see note
3). Discontinued operations relate to Genetics following the decision to sell
the division and the subsequent completion of the sale.
Sale of goods and provision of services
3 months ended 31 March 2025 (unaudited)
All figures in £000's Genetics Advanced Nutrition Health Corporate Inter-segment sales Total Discontinued Continuing
Sale of goods 10,453 21,588 1,317 - - 33,358 10,453 22,905
Provision of services 306 - - - - 306 306 -
Inter-segment sales 4 10 - 1,329 (1,343) - - -
10,763 21,598 1,317 1,329 (1,343) 33,664 10,759 22,905
3 months ended 31 March 2024 (unaudited)
All figures in £000's Genetics Advanced Nutrition Health Corporate Inter-segment sales Total Discontinued Continuing
Sale of goods 12,687 21,087 4,624 - - 38,398 12,687 25,711
Provision of services 542 34 777 - - 1,353 542 811
Inter-segment sales 2 9 - 1,349 (1,360) - - -
13,231 21,130 5,401 1,349 (1,360) 39,751 13,229 26,522
6 months ended 31 March 2025 (unaudited)
All figures in £000's Genetics Advanced Nutrition Health Corporate Inter-segment sales Total Discontinued Continuing
Sale of goods 20,871 37,663 2,959 - - 61,493 20,871 40,622
Provision of services 948 6 - - - 954 948 6
Inter-segment sales 6 46 - 2,659 (2,711) - - -
21,825 37,715 2,959 2,659 (2,711) 62,447 21,819 40,628
6 months ended 31 March 2024 (unaudited)
All figures in £000's Genetics Advanced Nutrition Health Corporate Inter-segment sales Total Discontinued Continuing
Sale of goods 27,529 40,341 9,083 - - 76,953 27,529 49,424
Provision of services 860 34 2,377 - - 3,271 860 2,411
Inter-segment sales 6 38 - 2,698 (2,742) - - -
28,395 40,413 11,460 2,698 (2,742) 80,224 28,389 51,835
4. Revenue (continued)
Sale of goods and provision of services (continued)
12 months ended 30 September 2024 (audited)
All figures in £000's Genetics Advanced Nutrition Health Corporate Inter-segment sales Total Discontinued Continuing
Sale of goods 55,131 75,806 11,703 - - 142,640 55,131 87,509
Provision of services 2,230 34 2,822 - - 5,086 2,230 2,856
Inter-segment sales 24 78 - 4,040 (4,142) - - -
57,385 75,918 14,525 4,040 (4,142) 147,726 57,361 90,365
Primary geographical markets
3 months ended 31 March 2025 (unaudited)
All figures in £000's Genetics Advanced Nutrition Health Corporate Inter-segment sales Total Discontinued Continuing
Norway 3,808 143 715 - - 4,666 3,808 858
Turkey 27 3,276 - - - 3,303 27 3,276
Vietnam 8 2,442 - - - 2,450 8 2,442
Greece - 2,387 - - - 2,387 - 2,387
Ecuador - 2,170 - - - 2,170 - 2,170
Iceland 2,010 - - - - 2,010 2,010 -
India 25 1,982 - - - 2,007 25 1,982
United Kingdom 1,533 17 63 - - 1,613 1,533 80
Chile 849 - 499 - - 1,348 849 499
Canada 18 - - - - 18 18 -
China 223 820 - - - 1,043 223 820
Indonesia 48 1,034 - - - 1,082 48 1,034
Faroe Islands 1,118 - 40 - - 1,158 1,118 40
Rest of Europe 518 1,512 - - - 2,030 518 1,512
Rest of World 574 5,805 - - - 6,379 574 5,805
Inter-segment sales 4 10 - 1,329 (1,343) - - -
10,763 21,598 1,317 1,329 (1,343) 33,664 10,759 22,905
4. Revenue (continued)
Primary geographical markets (continued)
3 months ended 31 March 2024 (unaudited)
All figures in £000's Genetics Advanced Nutrition Health Corporate Inter-segment sales Total Discontinued Continuing
Norway 6,873 138 2,348 - - 9,359 6,873 2,486
Turkey - 2,317 - - - 2,317 - 2,317
Vietnam - 3,071 - - - 3,071 - 3,071
Greece - 1,711 - - - 1,711 - 1,711
Ecuador 8 1,733 - - - 1,741 8 1,733
Iceland 1,478 - - - - 1,478 1,478 -
India - 2,572 - - - 2,572 - 2,572
United Kingdom 576 19 93 - - 688 576 112
Chile 2,009 - 420 - - 2,429 2,009 420
Canada 35 40 2,470 - - 2,545 35 2,510
China 92 743 - - - 835 92 743
Indonesia 66 853 - - - 919 66 853
Faroe Islands 1,238 - 70 - - 1,308 1,238 70
Rest of Europe 317 1,759 - - - 2,076 317 1,759
Rest of World 537 6,165 - - - 6,702 537 6,165
Inter-segment sales 2 9 - 1,349 (1,360) - - -
13,231 21,130 5,401 1,349 (1,360) 39,751 13,229 26,522
6 months ended 31 March 2025 (unaudited)
All figures in £000's Genetics Advanced Nutrition Health Corporate Inter-segment sales Total Discontinued Continuing
Norway 8,195 294 1,649 - - 10,138 8,195 1,943
Turkey 53 5,422 - - - 5,475 53 5,422
Vietnam 35 3,179 - - - 3,214 35 3,179
Greece - 4,747 - - - 4,747 - 4,747
Ecuador - 3,615 - - - 3,615 - 3,615
Iceland 3,148 - - - - 3,148 3,148 -
India 25 3,899 - - - 3,924 25 3,899
United Kingdom 3,161 18 90 - - 3,269 3,161 108
Chile 1,694 - 1,025 - - 2,719 1,694 1,025
Canada 101 - 56 - - 157 101 56
China 378 1,056 - - - 1,434 378 1,056
Indonesia 127 1,820 - - - 1,947 127 1,820
Faroe Islands 2,700 - 139 - - 2,839 2,700 139
Rest of Europe 1,098 3,184 - - - 4,282 1,098 3,184
Rest of World 1,104 10,435 - - - 11,539 1,104 10,435
Inter-segment sales 6 46 - 2,659 (2,711) - - -
21,825 37,715 2,959 2,659 (2,711) 62,447 21,819 40,628
4. Revenue (continued)
Primary geographical markets (continued)
6 months ended 31 March 2024 (unaudited)
All figures in £000's Genetics Advanced Nutrition Health Corporate Inter-segment sales Total Discontinued Continuing
Norway 16,430 449 7,157 - - 24,036 16,430 7,606
Turkey 9 4,215 - - - 4,224 9 4,215
Vietnam - 4,706 - - - 4,706 - 4,706
Greece - 3,659 - - - 3,659 - 3,659
Ecuador 40 3,222 - - - 3,262 40 3,222
Iceland 2,710 - - - - 2,710 2,710 -
India - 6,735 - - - 6,735 - 6,735
United Kingdom 1,350 26 146 - - 1,522 1,350 172
Chile 2,993 - 1,043 - - 4,036 2,993 1,043
Canada 95 62 2,612 - - 2,769 95 2,674
China 190 1,245 - - - 1,435 190 1,245
Indonesia 158 2,135 - - - 2,293 158 2,135
Faroe Islands 2,710 - 502 - - 3,212 2,710 502
Rest of Europe 699 3,415 - - - 4,114 699 3,415
Rest of World 1,004 10,506 - - - 11,510 1,004 10,506
Inter-segment sales 6 38 - 2,698 (2,742) - - -
28,395 40,413 11,460 2,698 (2,742) 80,224 28,389 51,835
12 months ended 30 September 2024 (audited)
All figures in £000's Genetics Advanced Nutrition Health Corporate Inter-segment sales Total Discontinued Continuing
Norway 31,803 1,058 8,742 - - 41,603 31,803 9,800
Turkey 107 7,197 - - - 7,304 107 7,197
Vietnam 14 10,536 - - - 10,550 14 10,536
Greece - 6,642 - - - 6,642 - 6,642
Ecuador 40 6,203 - - - 6,243 40 6,203
Iceland 7,118 - 113 - - 7,231 7,118 113
India 5 9,286 - - - 9,291 5 9,286
United Kingdom 3,436 59 316 - - 3,811 3,436 375
Chile 3,678 - 1,499 - - 5,177 3,678 1,499
Canada 1,553 69 2,828 - - 4,450 1,553 2,897
China 610 3,156 - - - 3,766 610 3,156
Indonesia 391 4,993 - - - 5,384 391 4,993
Faroe Islands 5,282 - 1,027 - - 6,309 5,282 1,027
Rest of Europe 1,595 5,108 (1) - - 6,702 1,595 5,107
Rest of World 1,729 21,533 1 - - 23,263 1,729 21,534
Inter-segment sales 24 78 - 4,040 (4,142) - - -
57,385 75,918 14,525 4,040 (4,142) 147,726 57,361 90,365
5. Exceptional items within continuing operations - restructuring,
acquisition and disposal related items
Items that are material because of their size or nature, are non-recurring and
whose significance is sufficient to warrant separate disclosure and
identification within the consolidated financial statements are referred to as
exceptional items. The separate reporting of exceptional items helps to
provide an understanding of the Group's underlying performance.
All figures in £000's Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Restated* FY 2024
(unaudited)
Restated*
(unaudited)
(unaudited)
(audited)
(unaudited)
Acquisition related items - - - - 158
Exceptional restructuring costs 2,517 2,041 4,090 2,135 5,682
Disposal related items - (177) - (177) (259)
Total exceptional items 2,517 1,864 4,090 1,958 5,581
*Q2 2024 and YTD Q2 2024 numbers were restated to reflect the results of the
Genetics business being classified as discontinued operations in FY24 in line
with IFRS5 following the decision to sell the business area (see note 8).
Exceptional restructuring costs for the YTD include costs relating to the
completion of the project to formally review the Company's strategic options,
including subsequent restructuring measures, which culminated in the disposal
of the Genetics business which completed on 31 March 2025, together with costs
for liabilities assumed associated with the Genetics business following that
disposal. Costs in FY 2024 included charges relating to redundancies and
dilapidations provisions arising from restructuring Health, Nutrition and
Corporate business areas.
Disposal related items in FY 2024 relate to income from asset disposals from
Health businesses discontinued in earlier years offset by some small costs
incurred. Acquisition related items in FY 2024 relate to fees incurred on an
aborted acquisition.
6. Net finance costs from continuing operations
All figures in £000's Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Restated* FY 2024
(unaudited)
Restated*
(unaudited)
(unaudited)
(audited)
(unaudited)
Interest received on bank deposits 18 1 37 17 44
Foreign exchange gains on operating activities 1,704 1,808 1,850 1,132 3,739
Cash flow hedges - ineffective portion of changes in fair value 59 - - -
Finance income 1,781 1,809 1,887 1,149 3,783
Leases interest (62) (155) (118) (350) (518)
Cash flow hedges - ineffective portion of changes in fair value - - (53) - (243)
Foreign exchange losses on operating activities (2,545) (467) (1,312) (1,107) (4,954)
Amortisation of capitalised borrowing fees (273) (221) (547) (432) (967)
Interest expense on financial liabilities measured at amortised cost (2,140) (1,846) (4,121) (3,672) (7,527)
Finance costs (5,020) (2,689) (6,151) (5,561) (14,209)
Net finance costs recognised in profit or loss (3,239) (880) (4,264) (4,412) (10,426)
* Q2 2024 and YTD Q2 2024 numbers were restated to reflect the results of the
Genetics business being classified as discontinued operations in FY24 in line
with IFRS5 following the decision to sell the business area (see note 8).
7. Taxation
All figures in £000's Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Restated* FY 2024
(unaudited)
Restated*
(unaudited)
(unaudited)
(audited)
(unaudited)
Analysis of charge in period
Current tax:
Current income tax expense on profits for the period 1,115 1,266 2,191 1,497 1,948
Adjustment in respect of prior periods - - - - (339)
Total current tax charge on continuing activities 1,115 1,266 2,191 1,497 1,609
Deferred tax:
Origination and reversal of temporary differences (841) (848) (1,704) (1,701) (3,255)
Total deferred tax credit on continuing activities (841) (848) (1,704) (1,701) (3,255)
Total tax charge/(credit) on continuing activities 274 418 487 (204) (1,646)
* Q2 2024 and YTD Q2 2024 numbers were restated to reflect the results of the
Genetics business being classified as discontinued operations in FY24 in line
with IFRS5 following the decision to sell the business area (see note 8).
The above excludes a tax expense in Q2 2025 of £0.2m and £0.2m in Q2 YTD
2025 (Q2 2024: £0.1m; Q2 YTD 2024: £1.1m; FY 2024 £2.1m) from discontinued
operations, this has been included in loss from discontinued operations, net
of tax (note 8).
8. Discontinued activities
The Company entered into a binding agreement in November 2024 to sell its
Genetics business area by way of the disposal of Benchmark Genetics Limited
and Benchmark Genetics Norway AS and their respective subsidiaries to Starfish
Bidco AS, a wholly owned subsidiary of Novo Holdings A/S. The deal completed
in the quarter on 31 March 2025, and included initial consideration of £230m
on a debt-free cash-free basis, which after accounting for completion accounts
adjustments based on the cash, debt and working capital position of the
Genetics business at the time of sale, and certain other specified liabilities
agreed between Starfish Bidco and the Company produced gross cash proceeds of
£193.7m. Further contingent consideration of up to £30m is also receivable
in three years' time based on trading performance of the core salmon
subsegment in the period from 1 October 2024 to 30 September 2027 which, after
discounting at the Company's incremental borrowing rate, is £25.3m. As the
sale of the Genetics business was highly probable at the year end, the results
of the business area were treated as discontinued operations and the assets
and liabilities transferred into held for sale in September 2024. Following
completion of the sale, there are no longer any assets or liabilities held for
sale (see note 10).
Summary of restatement of Q2 FY24 results as reported in Q2 FY25 financial
statements
Continuing operations Discontinued operations
All figures in £000's Revenue Adjusted EBITDA Loss from continuing operations Loss from discontinued operations
As stated in Q2 FY24 financial statements 80,224 16,822 (8,771) -
Reclassified Q1 (15,160) (3,179) (843) 843
Reclassified Q2 (13,229) (4,091) (1,783) 1,783
Restated Q2 2025 financial statements 51,835 9,552 (11,397) 2,626
8. Discontinued activities (continued)
Results from discontinued operations
All figures in £000's Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Restated* FY 2024
(unaudited)
Restated*
(unaudited)
(unaudited)
(audited)
(unaudited)
Revenue 10,759 13,229 21,819 28,389 57,361
Cost of sales (8,063) (6,747) (15,436) (16,294) (30,931)
Gross profit 2,696 6,482 6,383 12,095 26,430
Research and development costs (880) (957) (1,751) (1,786) (3,276)
Other operating costs (2,191) (2,101) (4,128) (4,023) (7,744)
Share of profit of equity-accounted investees, net of tax 700 667 440 984 1,288
Adjusted EBITDA 325 4,091 944 7,270 16,698
Exceptional - restructuring, acquisition and disposal related items 90,625 (98) 90,600 (521) (1,800)
EBITDA 90,950 3,993 91,544 6,749 14,898
Depreciation and impairment - (1,312) (1,725) (2,468) (5,371)
Amortisation and impairment - (402) - (806) (1,638)
Operating loss / Loss before taxation 90,950 2,279 89,819 3,475 7,889
Net finance costs 1,229 (437) (519) 264 (589)
Loss before taxation 92,179 1,842 89,300 3,739 7,300
Tax on loss (161) (59) (204) (1,113) (2,141)
Loss from discontinued operations 92,018 1,783 89,096 2,626 5,159
*While all of the discontinued operations relate to the entire Genetics
business area, the results above exclude intercompany transactions with the
rest of the Benchmark group which are included within the Genetics segment in
note 3, but which are eliminated within continuing activities. These total
£0.7m in the quarter and £1.4m YTD (Q2 2024: £0.7m; Q2 YTD 2024: £1.3m; FY
2024: £1.9m).
Exceptional items within discontinued operations
All figures in £000's Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Restated* FY 2024
(unaudited)
Restated*
(unaudited)
(unaudited)
(audited)
(unaudited)
Restructuring costs 266 98 291 521 965
Other costs - - - - 835
Profit on disposal of Genetics business net of costs (90,891) - (90,891) - -
Total exceptional recognised (90,625) 98 (90,600) 521 1,800
*Q2 2024 and YTD Q2 2024 numbers were restated to reflect the results of the
Genetics business being classified as discontinued operations in FY24 in line
with IFRS5 following the decision to sell the business area (see note 8).
Exceptional costs included in discontinued operations in Genetics in the six
months to 31 March 2025 predominantly arose from the sale of the Genetics
business which completed on 31 March 2025, with a profit on disposal of the
business area of £90.9m net of disposal costs (YTD Q2 FY24: £nil; FY24:
£nil). The restructuring costs in the period related to costs associated
with the completion of the strategic review of £0.2m (YTD Q2 FY24: £nil;
FY24: £nil). Other exceptional restructuring costs in FY 2024 include costs
following the closure of the tilapia operations of £0.4m and restructuring of
the shrimp genetics business of £0.5m. Additionally, other exceptional
costs of £0.8m were incurred in FY 2024 in the uninsured culling of
broodstock and clean-up costs after two separate isolated ISA incidents.
Cash flows from discontinued operations
Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Restated* FY 2024
(unaudited)
Restated*
(unaudited)
(unaudited)
(audited)
(unaudited)
Net cash flow from operating activities 5,008 (2,453) 5,461 (1,019) 4,489
Net cash flow from investing activities 89,686 (561) 89,259 (970) (1,776)
Net cash flow from financing activities (99,572) (1,336) (101,784) (4,987) (5,838)
Net cash flow from discontinued operations (4,878) (4,350) (7,064) (6,976) (3,125)
8. Discontinued activities (continued)
Results from discontinued operations by segment
The results from discontinued operations relate solely to the Genetics
operating segment.
Effect of disposals of subsidiaries on the financial position of the Group
All figures in £000's Genetics
Property, plant and equipment (including Right of use assets) 62,194
Intangible assets 44,918
Investments 2,833
Inventories and Biological assets 50,143
Trade and other receivables 13,547
Cash and cash equivalents 3,274
Trade and other payables (18,319)
Provisions (588)
Corporation tax liability (1,372)
Loans & borrowings (18,606)
Deferred tax (9,170)
Net assets derecognised 128,854
Less: Non-controlling interest (5,600)
Net assets attributable to the parent 123,254
Total consideration 219,002
Less: Fair value of contingent consideration (25,322)
Gross consideration received 193,680
Less: Disposal costs deducted from cash proceeds (6,435)
Net consideration received in cash 187,245
Cash and cash equivalents disposed of (3,274)
Net cash inflow 183,971
9. Loss per share
Basic loss per share is calculated by dividing the loss attributable to
ordinary equity holders of the Company by the weighted average number of
ordinary shares in issue during the period.
Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Restated* FY 2024
(unaudited)
Restated*
(unaudited)
(unaudited)
(audited)
(unaudited)
Loss attributable to equity holders of the parent (£000)
Continuing operations (5,834) (2,930) (13,111) (11,397) (44,279)
Discontinued operations 92,275 1,609 89,623 2,449 4,815
Total 86,441 (1,321) 76,512 (8,948) (39,464)
Weighted average number of shares in issue (thousands) 741,289 723,173 741,036 739,408 739,575
Basic loss per share (pence)
Continuing operations (0.79) (0.41) (1.77) (1.54) (5.99)
Discontinued operations 12.45 0.22 12.09 0.33 0.65
Total 11.66 (0.18) 10.33 (1.21) (5.34)
* Q2 2024 and YTD Q2 2024 numbers were restated to reflect the results of the
Genetics business being classified as discontinued operations in FY24 in line
with IFRS5 following the decision to sell the business area (see note 8).
Diluted loss per share is calculated by adjusting the weighted average number
of ordinary shares outstanding to assume conversion of all dilutive potential
ordinary shares. This is done by calculating the number of shares that could
have been acquired at fair value (determined as the average market price of
the Company's shares for the period) based on the monetary value of the
subscription rights attached to outstanding share options and warrants. The
number of shares calculated above is compared with the number of shares that
would have been issued assuming the exercise of the share options and
warrants.
Therefore, the Company is required to adjust the earnings per share
calculation in relation to the share options that are in issue under the
Company's share-based incentive schemes, and outstanding warrants. However, as
any potential ordinary shares would be anti-dilutive due to losses being made
there is no difference between basic loss per share and diluted loss per share
for any of the periods being reported.
A total of 11,384,038 potential ordinary shares have not been included within
the calculation of statutory diluted loss per share for the quarter end (31
March 2024: 14,056,643). These potential ordinary shares could dilute
earnings/loss per share in the future.
10. Assets held for sale
The Company entered into a binding agreement in November 2024 to sell its
Genetics business area by way of the disposal of Benchmark Genetics Limited
and Benchmark Genetics Norway AS and their respective subsidiaries to Starfish
Bidco AS, a wholly owned subsidiary of Novo Holdings A/S. The deal completed
in the quarter on 31 March 2025, but the Genetics business has been treated as
discontinued operations and the assets and liabilities transferred into held
for sale since September 2024, as the sale at the year-end was considered
highly probable. Following completion of the sale, there are no longer any
assets or liabilities held for sale.
Assets held for sale Q2 2025 (unaudited) Q2 2024 (unaudited) FY 2024 (audited)
All figures in £000s
Property, plant and equipment - - 54,095
Right-of-use assets - - 7,843
Intangible assets - - 42,760
Equity-accounted investees - - 2,304
Biological and agricultural assets - - 43,107
Inventories - - 502
Trade and other receivables - - 12,641
Total Assets held for sale - - 163,252
Liabilities directly associated with the assets held for sale Q2 2025 (unaudited) Q2 2024 (unaudited) FY 2024 (audited)
All figures in £000s
Trade and other payables - - (11,754)
Loans and borrowings - - (22,314)
Corporation tax liability - - (3,147)
Provisions - - (568)
Deferred tax liability - - (8,914)
Total liabilities directly associated with the assets held for sale - - (46,697)
11. Loans and borrowings
Q2 2025 Q2 2024 FY 2024 (audited)
(unaudited)
(unaudited)
All figures in £000's
Non-Current
2025 750m NOK Loan notes - 54,914 -
Bank borrowings - 14,808 -
Unamortised debt issue costs - (373) -
Lease liabilities 2,274 6,863 2,837
2,274 76,212 2,837
Current
2025 750m NOK Loan notes 54,905 - 53,125
Bank borrowings 23,750 9,257 16,250
Unamortised debt issue costs (384) (1,048) (931)
Lease liabilities 1,066 9,083 789
79,337 17,292 69,233
Total loans and borrowings 81,611 93,504 72,070
At 31 March 2025, the Group had an unsecured floating rate listed green bond
of NOK 750m in issue which was to mature in September 2025. The coupon on
the bond is three-month NIBOR + 6.50% p.a. with quarterly interest payments
and is listed on the Oslo Stock Exchange.
Additionally at 31 March 2025, the Group had an extended secured GBP27.5m RCF
provided by DNB Bank ASA, maturing on 27 June 2025. The margin on this
facility was a minimum of 2.75% and a maximum of 3.25%, dependent upon the
leverage of the Group above the relevant risk-free reference or IBOR rates
depending on which currency is drawn. At 31 March 2025, £23.5m was drawn
against this facility.
Subsequent to the period end, both of these facilities were settled from the
sales proceeds from the disposal of the Genetics business as follows:
· The extended RCF was repaid on 1 April 2025, with a new secured
USD $19m multicurrency RCF with DNB Bank ASA having been arranged on 31 March
2025. The new facility matures on 31 March 2028 and has a margin of a
minimum of 2.50% and a maximum of 3.00%, dependent upon the leverage of the
Group above the relevant risk-free reference or IBOR rates depending on which
currency is drawn.
· The unsecured floating rate listed green bond of NOK 750m was
settled on 15 April 2025, along with the associated cross-currency and
interest rates swaps.
12. Share capital and additional paid-in share capital
Number Share Capital Additional paid-in
share capital
Allotted, called up and fully paid £000 £000
Ordinary shares of 0.1 pence each
Balance at 30 September 2024 739,786,143 740 37,490
Exercise of share options 1,719,529 2 -
Balance at 31 March 2025 741,505,672 742 37,490
The holders of ordinary shares are entitled to one vote per share at meetings
of the company, and to receive dividends from time to
time as declared.
During the 6 months ended 31 March 2025, the Group issued a total 1,719,529
ordinary shares of 0.1p each to certain employees of the Group relating to
share options, all 1,719,529 were exercised at 0.1p per share.
13. Alternative performance measures and other metrics
Management has presented the performance measures EBITDA, Adjusted EBITDA,
Adjusted Operating Profit and Adjusted Profit Before Tax because it monitors
performance at a consolidated level using these and believes that these
measures are relevant to an understanding of the Group's financial
performance.
Adjusted EBITDA which reflects underlying profitability, is earnings before
interest, tax, depreciation, amortisation, impairment, and exceptional items
and is shown on the Income Statement.
Adjusted Operating Profit is operating loss before exceptional items and
amortisation and impairment of intangible assets excluding development costs
as reconciled below.
Adjusted Profit Before Tax is earnings before tax, amortisation and impairment
of intangibles assets excluding development costs, and exceptional items as
reconciled below. These measures are not defined performance measures in IFRS.
The Group's definition of these measures may not be comparable with similarly
titled performance measures and disclosures by other entities.
Reconciliation of adjusted operating profit/(loss) to operating loss
(continuing)
All figures in £000's Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Restated* FY 2024
(unaudited)
Restated*
(unaudited)
(unaudited)
Restated*
(unaudited)
(audited)
Revenue 22,905 26,522 40,628 51,835 90,365
Cost of sales (10,917) (12,119) (21,063) (24,682) (46,418)
Gross profit 11,988 14,403 19,565 27,153 43,947
Research and development costs (582) (584) (1,148) (1,272) (2,443)
Other operating costs (6,959) (7,762) (14,215) (16,329) (29,582)
Depreciation and impairment (830) (2,006) (1,670) (7,100) (10,949)
Amortisation and impairment of capitalised development costs (55) (442) (82) (896) (17,569)
Adjusted operating profit/(loss) 3,562 3,609 2,450 1,556 (16,596)
Exceptional including acquisition related items (2,517) (1,864) (4,090) (1,958) (5,581)
Amortisation and impairment of intangible assets excluding development costs (3,366) (3,377) (6,720) (6,787) (13,322)
Operating loss (2,321) (1,632) (8,360) (7,189) (35,499)
* Q2 2024 and YTD Q2 2024 numbers were restated to reflect the results of the
Genetics business being classified as discontinued operations in FY24 in line
with IFRS5 following the decision to sell the business area (see note 8).
Reconciliation of adjusted loss before taxation to adjusted operating loss
(continuing)
All figures in £000's Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Restated* FY 2024
(unaudited)
Restated*
(unaudited)
(unaudited)
Restated*
(unaudited)
(audited)
Loss before taxation (5,560) (2,512) (12,624) (11,601) (45,925)
Exceptional - restructuring, acquisition and disposal related items 2,517 1,864 4,090 1,958 5,581
Amortisation and impairment of intangible assets excluding development costs 3,366 3,377 6,720 6,787 13,322
Adjusted profit/(loss) before tax 323 2,729 (1,814) (2,856) (27,022)
* Q2 2024 and YTD Q2 2024 numbers were restated to reflect the results of the
Genetics business being classified as discontinued operations in FY24 in line
with IFRS5 following the decision to sell the business area (see note 8).
13. Alternative performance measures and other metrics (continued)
Other Metrics
All figures in £000's Q2 2025 Q2 2024 YTD Q2 2025 YTD Q2 2024 Restated* FY 2024
(unaudited)
Restated*
(unaudited)
(unaudited)
Restated*
(unaudited)
(audited)
Total R&D Investment
Research and development costs
- Continuing operations 582 584 1,148 1,272 2,443
- Discontinued operations 880 957 1,751 1,786 3,276
Internal capitalised development costs - 32 - 94 149
Total R&D investment 1,462 1,573 2,899 3,152 5,868
Liquidity
A key financial covenant is a minimum liquidity of £10m, defined as cash plus
undrawn facilities.
All figures in £000's Q2 2025 Q2 2024 FY 2024
(unaudited)
(unaudited)
(audited)
Cash and cash equivalents 207,511 20,759 23,088
Undrawn bank facility 3,750 19,750 11,250
Total liquidity 211,261 40,509 34,338
The undrawn bank facility relates to the RCF facility which was increased from
£20m to £27.5m in FY 2024. At 31 March 2025, £23.75m of the RCF was drawn
(Q2 2024: £7.75m, FY 2024: £16.25m), leaving £3.75m undrawn (Q2 2024:
£19.75, FY 2024: £11.25m). The RCF was fully repaid after the period end
in April 2025.
14. Net debt
Net debt is cash and cash equivalents less loans and borrowings.
All figures in £000's Q2 2025 Q2 2024 FY 2024 (audited)
(unaudited)
(unaudited)
Cash and cash equivalents 207,511 20,759 23,088
Loans and borrowings (excluding lease liabilities) - current (78,271) (8,209) (68,444)
Loans and borrowings (excluding lease liabilities) - non-current - (69,349) -
Net cash/(debt) excluding lease liabilities 129,240 (56,799) (45,356)
Lease liabilities - current (1,066) (9,083) (789)
Lease liabilities - non-current (2,274) (6,863) (2,837)
Net cash/(debt) 125,900 (72,745) (48,982)
The above figures exclude loans and borrowings of £22,314,000 at 30 September
2024 relating to the Genetics business and included in liabilities held for
sale in note 10.
15. Post Balance sheet event
Following the disposal of the Group's Genetics Business, which completed on 31
March 2025, the Company has been assessing how best to return excess capital
to shareholders and position the remaining operating businesses for future
growth. Accordingly, on 23 May 2025, the Company announced the intention to
cancel its admission to trading of its ordinary shares on the AIM and Euronext
Growth Oslo stock exchanges, re-register the Company as a private limited
company, and return capital to shareholders from the sale of the Genetics
business, together (the "Proposals"). The proposed return of capital
involves a tender offer which provides qualifying shareholders with an
opportunity to realise some or all of their investment in the Company at the
tender offer price of 25p per ordinary share and providing shareholders that
do not participate in the tender offer the opportunity to remain invested and
receive a planned special dividend following the delistings. The Proposals are
subject to shareholder approval at a general meeting on 18 June and to the
approval of the cancellation to trading of the Company's ordinary shares on
Euronext Growth Oslo by the Euronext Oslo.
We hereby confirm that the financial statements for the period from 1 October
2024 to 31 March 2025, to the best of our knowledge, have been prepared in
accordance with IAS 34 - Interim Financial Reporting - and that the
information in the accounts gives a true and fair view of the Group and of the
Group's assets, liabilities, financial position and overall results.
We also confirm that, to the best of our knowledge, the half-year report gives
a true and fair view of the main events during the accounting period and their
effect on the accounts for the second half year, as well as the principal
risks and uncertainties, described below (which have remained unchanged from
those disclosed in the Company Annual Report of FY24, acknowledging that the
disposal of the discontinued Genetics business completed in the period on 31
March 2025), facing the Company and the Group in the next accounting period.
This Statement was approved by the board of directors and signed on its behalf
by:
Trond Williksen
(Chief Executive Officer)
Date: 12 June 2025
Principal risks and uncertainties
The Group's principal risks are categorised as either strategic, operational,
financial or emerging risks and are developed through the Audit Committee and
Board's review of the Group's risk register, performance of our businesses and
analysis of emerging global trends.
Strategic risks
Risks Risk commentary Risk mitigation and controls Business Areas affected
Competition and loss of competitive advantage · Falling behind competitors with the development and · Innovative development focus and strong pipeline of products. Advanced Nutrition, Health and Genetics
commercialisation of new, innovative products.
· Intellectual Property ("IP") protection including patents.
· Threat to market share and revenues.
· Strong customer relationships with key account structure.
Reliance on continued success of existing products · The Group is currently exposed · Increasing number of products/ services from development pipeline Advanced Nutrition, Health and Genetics
to risk by limited diversity of revenue streams. is diversifying revenues.
· Risks associated with legal costs of protecting Group IP. · Strong Group legal team with dedicated IP expertise.
· Group products require the holding of certain licences, · Vigorous defence of own IP.
accreditations or regulatory approvals that could be withdrawn.
· High levels of employee competency and stringent processes
· Failure to gain additional claims on the labels for certain Group related to
products which could result in reduced revenue from such products.
regulatory affairs.
· Failure to achieve the projected · Highly proficient and experienced
customers growth/uptake for newly commercial team equipped with
launched products extensive knowledge and with robust
customer relationships.
Delivery of cross-Group synergies · Risks associated with failure to fully realise operational · EMT continues tracking progress of the Group strategy on a weekly Advanced Nutrition, Health and Genetics
synergies and cost benefits. basis.
· Lower profitability and cash generation, and slower returns than · Extended-EMT assists with planning and managing
anticipated.
key projects.
· Risks on delivering the synergy within the timeline set.
New product · Risk that pipeline products may · Close dialogue with regulators. Advanced Nutrition, Health and Genetics
and service commercialisation
be delayed or fail technically
before launch. · The innovation board (which includes the head of Group
Innovation) monitors the R&D projects across the Group.
· Risk inherent in timing and market penetration of new products
and services. · Experienced Group regulatory affairs team, commercial team and
Marketing team.
· Close dialogue with customers regarding their product and service
satisfaction to enable efficient and appropriate reaction to their feedback
and needs.
Operational risks
Risks Risk commentary Risk mitigation and controls Business Areas affected
Environmental risk and crisis management · The nature of certain of the Group's operating activities exposes · We have implemented standards and requirements which govern key Advanced Nutrition, Health and Genetics
us to certain significant risks to the environment, such as incidents risk management activities such as inspection, maintenance, testing, business
associated with releases of chemicals or hazardous substances when conducting continuity and crisis response.
our operations, which could result in liability, fines, risk to our product
permissions and reputational damage.
· There is a risk that natural disasters could lead to damage to
infrastructure, loss of resources, products or containment of hazardous
substances.
· Our business activities could be disrupted if we do not respond,
or are perceived not to respond, in an appropriate manner to any major crisis
or if we are not able to restore or replace critical operational capacity.
Biological and climatic risks · The Group is exposed to the risk of disease within the Group's · The Group operates the highest levels of biosecurity. Advanced Nutrition, Health and Genetics
own operations and disease in the market resulting in possible border
closures. · The Group holds genetic stock at multiple sites; increasingly
sources from its own land-based salmon breeding facilities.
· Sales of the Group's sea lice medicines and other relevant
solutions such as CleanTreat® are affected by the degree of sea lice · The Group operates containment zones which mitigates the risk of
challenge in the environment, which is driven by sea temperatures and other border closures affecting its ability to import or export.
biological factors.
· The Group has placed increased focus on insuring its biological
stock.
· The Group's product diversity across business areas offers some
mitigation.
Volatility of end markets (salmon, sea bass and shrimp markets) and market and · Market fluctuations in shrimp production volumes and pricing, · The geographic diversity of the business area's customer base Advanced Nutrition, Health and Genetics
regulatory trends often influenced by disease, drive customer and food services demand for offers some mitigation.
shrimp.
· The Group's product diversity across business areas offers some
· Market and regulatory trends for tackling sea lice have an mitigation.
influence on customer demand for the Group's sea lice products.
Threats to the supply chain · Benchmark is reliant on a small number of key raw materials and · Dual supplies of raw materials where possible. Advanced Nutrition, Genetics, Health
manufacturers and suppliers for important products.
· Supplies secured with contractual arrangements, and import
· The Group has R&D and production sites which are important to its authorisations in the process of being applied for where deemed material for
current revenues and future success and which are leased. the Group.
· Commissioning of new facilities could be delayed leading to late · Seek long-term tenure of sites.
product deliveries.
· Benchmark relies on third parties for importation authorisations
required in certain jurisdictions for certain products.
Health and well-being of employees · Poor health or well-being impacts employees' lives and reduces · Well-developed health and safety management regime in place across the Advanced Nutrition, Genetics, Health
productivity. Group.
· Some aquaculture activities have inherent operational risks. · Senior level commitment to ESG programme Group-wide.
Recruitment and retention of high-calibre people · To maintain market leadership, it is essential that the Group has and · Centralised people team delivering people strategy. Advanced Nutrition, Genetics, Health
keeps people with key skills.
· Succession planning process.
· Remuneration policy designed to encourage retention.
Loss of key IT system · The Group IT systems facilitate daily work, collaboration and hold · Internal experienced IT team. Advanced Nutrition, Genetics, Health
Group IP and trade secrets.
· Increasing integration of software platforms to improve security and
· Multiple risks of systems failure or cyber attack. reliability.
· Loss of access or key information would be disruptive to the Group. · The Group increased the frequency of phishing simulation exercises to
ensure staff awareness of cyber security.
Geopolitical risk · The diverse locations of our operations around the world expose us to a · We seek to manage this risk through development and maintenance of Advanced Nutrition, Genetics, Health
wide range of political developments and consequent changes to the economic relationships with governments and stakeholders. We closely monitor events and
and operating environment. Geopolitical risk is inherent to many regions in implement risk mitigation plans where appropriate.
which we operate, and heightened political or social tensions or changes in
key relationships could adversely affect the Group.
Application of appropriate standards of governance · As an international business, the Group is required to comply with laws · Experienced Group legal, finance, people, regulatory affairs, investor Advanced Nutrition, Genetics, Health
and regulations in several jurisdictions. relations, health and safety and IT teams work closely with the business
areas.
· There is risk of non-compliance leading to potential fines, penalties,
loss of revenues and damage to reputation. · Training programme, whistleblowing policy, and informal routes by which
concerns can be raised, are designed to identify and address potential
non-compliance.
Financial and legal risks
Risks Risk Risk mitigation Business Areas affected
commentary
and controls
Maintain liquidity and manage leverage · Failure to identify and maintain sufficient liquidity headroom. · Close control of cash flows with regular update of short- and Advanced Nutrition, Genetics, Health
long-term projections.
· Risk to funding of key growth strategies.
· The refinanced facilities provide greater covenant flexibility
and headroom.
· Group Treasury Manager oversees cash flow management.
· Group treasury policy introduced to support how the Group manages
cash.
Growth in trading results in higher investment in working capital · Top-line growth through new products and markets can drive · Business area management of pricing and credit terms. Advanced Nutrition, Genetics, Health
changing patterns of working capital.
· Close monitoring of investment in working capital by the EMT and
· Growth in some markets presents increased risk of slow paying or Plc Board.
bad debts.
· Key performance indicators include working capital measures.
Currency exchange · The Group as a whole is also exposed to fluctuations in currency · The Group reduces its exposure to its principal foreign currency Advanced Nutrition, Genetics, Health
exchange rates. These impact sales volumes where products are priced by risks through the use of hedging instruments.
reference to USD but sold in local currencies; and impacts reported results
when local results, assets and liabilities are converted to GBP for reporting · Group treasury policy explains how the Group should manage FX
purposes. risk.
Criminal activity, fraud, bribery and compliance risk · Some countries where the Group operates may be exposed to high · The Group provides compliance training programmes to all its Advanced Nutrition, Genetics, Health
levels of risk relating to criminal activity, fraud, bribery and corruption. employees through an online training platform and provide face-to-face and
virtual training to higher risk teams.
· There are a number of regulatory requirements applicable to the
Group and its listing on the London and Oslo Stock exchanges. · The Group has introduced a code of conduct for its suppliers.
· The CFO and Group Legal Counsel are involved in mitigating
fraudulent activities in the Group.
· The Group has access to competent
and experienced external counsel.
· Fraud response policy introduced.
Emerging risks
Risks Risk Risk mitigation Business Areas affected
commentary
and controls
Climate change · Climate change and the evolving regulatory environment may expose · The Group's Sustainability Committee reports to the Board Advanced Nutrition, Genetics, Health
the Group to regulatory breaches, significant disruption, reputational risk or regularly and its mandate is to ensure the Group's strategy and operations are
a reduction in supply for biological raw materials, and demand for products or carried out within the framework of caring for the environment, people, and
services. animals. Its work aligns with major frameworks including the London Stock
Exchange Guidance for Environmental, Social and Governance reporting and the
UN Sustainable Development Goals.
· New ESG strategy approved and implemented by the Group.
· Plan adopted for reduction in the Group's carbon emissions and
progressing according to timetable set.
· The Group is exploring alternatives
solutions to decrease its reliance
on raw materials that could be
vulnerable to the impacts of climate
changes.
Environmental, Social and Governance responsibilities · Increasingly our stakeholders are requiring reassurance that we · Code of Conduct in place. Advanced Nutrition, Genetics, Health
are overseeing and responding to ethical and environmental issues across the
Group's business. · New ESG strategy approved and in place.
· Plan adopted for reduction in the Group's carbon emissions.
· Code of conduct and ABC policies in place.
· Green bond successfully launched and subscribed.
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