Q3 Results

RNS Number : 5326J
Benchmark Holdings PLC
24 August 2021
 

24 August 2021

 

Information within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.

Benchmark Holdings plc

("Benchmark", the "Company" or the "Group")

 

Q3 Results

(3 months ended 30 June 2021)

 

Strong quarter with continuing momentum and strong performance across all business areas

Strategic milestone with successful launch of Ectosan® Vet and CleanTreat® post period

 

In compliance with the terms of the Company's senior secured bond which requires it to publish quarterly financial information, Benchmark, the aquaculture biotechnology business, announces its unaudited results for the 3 months ended 30 June 2021 (the "period") . All Q3 FY21, Q3 FY20, YTD Q3 2021 and YTD Q3 2020 figures quoted in this announcement are based on unaudited accounts.

 

Highlights - strong Q3 2021 performance across all business areas and continuing momentum

· Revenues 17% ahead of the prior year (+25% CER) (continuing operations) with strong performance across all business areas:

Genetics revenues 21% above Q3 2020 driven by higher sales of salmon eggs

Advanced Nutrition revenues 15% above the prior year reflecting growth across all product lines and continuing its good performance

Health revenues 20% above Q3 2020 benefitting from higher Salmosan sales

· Adjusted EBITDA more than doubled as a result of higher revenues, operational improvements and continuous cost control

· YTD Q3 2021, Group revenues were 9% higher than the prior year (+15% CER) and Adjusted EBITDA 26% ahead (38% CER) (continuing operations)

· Liquidity of c.£51m (cash and available facility) as at 23 August 2021

£m

 

YTD Q3 2021

YTD Q3 2020

Restated*

CER**

YTD Q3 2021

 

Q3 2021

Q3 2020

Restated*

CER** Q3 2021

Revenue from continuing operations

87.8

+9%

80.3

92.6

+15%

28.3

+17%

24.1

30.2

+25%

Adjusted

 

 

 

 

 

 

Adjusted EBITDA1 from continuing operations

12.4

+27%

9.8

13.5

+38%

4.4

+110%

2.1

4.7

+123%

Adj. EBITDA excluding biological asset movements

10.0

+23%

8.1

11.1

+37%

4.1

+37%

3.0

4.4

+47%

Adjusted Operating Profit2

7.3

+40%

5.2

8.3

+60%

2.9

+383%

0.6

3.1

+417%

Statutory

 

 

 

 

 

 

Operating loss

(5.9)

(8.1)

 

(1.2)

(4.2)

 

Loss before tax from continuing operations

(5.9)

(19.6)

 

(2.7)

(6.2)

 

Loss for the Period - total incl. discontinued operations

(5.9)

(23.2)

 

(2.8)

(4.4)

 

Basic loss per share (p)

(1.01)

(3.83)

 

(0.44)

(0.66)

 

Net debt3

76.1

54.7

 

76.1

54.7

 

Net debt excluding lease liabilities

52.7

45.3

 

52.7

45.3

 

 

*  YTD Q3 2020 and Q3 2020 numbers have been restated to reflect changes to the ongoing continuing business since the figures were originally reported (note 5).

** 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 including acquisition 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 debt is cash and cash equivalents less loans and borrowings.

 

Divisional summary (Continuing operations)

 

£m

YTD Q3 2021

YTD Q3 2020 Restated*

CER** YTD Q3 2021

Q3 2021

Q3 2020 Restated*

CER** Q3 2021

Revenue

 

 

 

 

 

 

Advanced Nutrition

53.4

+13%

47.3

57.3

+21%

18.4

+15%

16.0

20.6

+29%

Genetics

30.9

+4%

29.7

31.7

+7%

8.7

+21%

7.2

8.5

+18%

Health

3.6

-8%

3.9

3.6

-8%

1.2

+20%

1.0

1.2

+20%

Adjusted EBITDA1

 

 

 

 

 

 

Advanced Nutrition

10.2

+65%

6.2

11.0

+77%

3.9

+39%

2.8

4.4

+57%

Genetics

8.2

-16%

9.8

8.5

-13%

2.2

+83%

1.2

2.1

+75%

-  Net of fair value movements in biological assets

5.9

-27%

8.1

6.2

-23%

1.9

-10%

2.1

1.8

-14%

Health

(3.8)

+3%

(3.9)

(3.8)

+3%

(1.2)

+8%

(1.3)

(1.2)

+8%

*  YTD Q3 2020 and Q3 2020 numbers have been restated to reflect changes to the ongoing continuing business since the figures were originally reported (note 5).

** 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 including acquisition related expenditure.

 

 

Operational highlights - launch of Ectosan® Vet (formerly BMK08) and CleanTreat® post period end; first sea lice treatments delivered successfully

· Post period end, the Group received Marketing Authorisation in Norway for Ectosan® Vet and the MRL (Maximum Residue Limit) was adopted into the Agreement of the European Economic Area, completing the regulatory steps for commercialisation. The first treatments were successfully delivered in August 2021. Ectosan® Vet is the first new sea lice medicine to come to market in more than a decade

· Good commercial and operational momentum in Advanced Nutrition continues with strong growth YoY  

· Expansion projects for salmon and shrimp Genetics in Iceland, Fellsmere and Chile are progressing according to plan

· Continue to win new contracts for future delivery in the emerging land-based salmon segment

Market environment - Reopening of hospitality sector creates positive market outlook

· The gradual reopening of the hospitality sector creates a positive outlook for our end markets

· Conditions in the salmon industry are positive with a recovery in prices after a drop related to Covid-19; demand growth continues to exceed global supply

· The shrimp market is recovering with potential to bounce back to pre-Covid-19 levels despite continued hardships due to the pandemic in certain markets

· The seabass and seabream market have substantially recovered

Current trading and Outlook

· The Group is trading in line with market expectations for the full year with good revenue visibility for the remainder of the year

· Looking forward to FY 2022, consistency in performance is expected to continue in Genetics and Advanced Nutrition, while Health starts benefitting from Ectosan® Vet and CleanTreat® revenue stream

Trond Williksen, CEO, commented:

 

"We are very pleased with the results and progress in Q3 2021 and the subsequent period. Our three business areas performed strongly, and we achieved a major strategic milestone with the successful commercial launch of Ectosan® Vet and CleanTreat®. We now have the basis to have three profitable business areas moving the Group closer to overall profitability.

 

"There is good momentum in the business following the streamlining exercise conducted in 2020 and the adoption of a new commercial focus. Our end markets are gradually recovering from the impact of Covid-19, creating a positive environment for our business. All this provides confidence in our ability to deliver full year results in line with market expectations as well as progress in future years."

 

 

Details of analyst / investor call today

 

There will be a call at 9:00am UK time today for analysts and investors. To register for the call please contact MHP Communications on +44 (0)20 3128 8990 or 8742, or by email on benchmark@mhpc.com

 

Enquiries

 

For further information, please contact:

 

Benchmark Holdings plc

Tel:  020 3696 0630

Trond Williksen, CEO

 

Septima Maguire, CFO

 

Ivonne Cantu, Investor Relations

 

 

 

 

 

Numis (Broker and NOMAD)

Tel:  020 7260 1000

James Black, Freddie Barnfield, Duncan Monteith

 

 

 

 

MHP Communications

Tel:  020 3128 8990 / 8742

Katie Hunt, Reg Hoare, Alistair de Kare-Silver                                            benchmark@mhpc.com

 

 

About Benchmark 

Benchmark is a leading aquaculture biotechnology company. Benchmark's mission is to enable aquaculture producers to improve their sustainability and profitability.

We bring together biology and technology to develop innovative products and solutions which improve yield, quality and animal health and welfare for our customers. We do this by improving the genetic make-up, health and nutrition of their stock - from broodstock and hatchery through to nursery and grow out.

Benchmark has a broad portfolio of products and solutions, including salmon eggs, live feed (Artemia), specialist diets and probiotics and sea lice treatments. Find out more at www.benchmarkplc.com

 

 

Management Report

 

We are very pleased with the Group's performance in Q3 2021. Our three business areas delivered strong results, and we achieved a major strategic milestone post period end with the completion of all the regulatory steps required to commercialise Ectosan® Vet (previously code named BMK08) and CleanTreat® in Norway, our main target market for our new sea lice solution. The first sea lice treatments were delivered successfully in August 2021 generating the first commercial revenues from our new solution.

 

Group revenues from continuing operations for the quarter at £28.3m were 17% ahead of the prior year (+25% CER) reflecting good performance across all business areas. YTD group revenues from continuing operations were 9% higher than the prior year at £87.8m (+15% CER) (YTD Q3 2020 (restated): £80.3m).  The drivers behind our results are outlined in the business area commentary below.

 

The continuing good performance in the year highlights the benefits of a streamlined organisation with a clear commercial focus. In addition, we have seen some recovery from Covid-19 in our end markets, particularly in shrimp, as Covid-19 restrictions ease and the hospitality sector reopens. While conditions in some shrimp producing countries including India remain difficult there is positive momentum and significant upside potential to reach pre Covid-19 levels. The salmon market remains stable with price recovery after a drop relating to Covid-19 and the Mediterranean sea bass/sea bream market has substantially recovered.

 

We maintain our disciplined approach to cost control, cash management and investment. Our goal is to maintain or improve the margins in our established business, while investing in the launch of new products including SPR shrimp, and in the expansion of our core areas such as salmon genetics. Operating expenses in Q3 2021 of £9.3m were 25% above the prior year and R&D expenses of £1.6m were up 27%. This expected increase is against a backdrop of significant savings in Q3 2020 when, in response to the Covid-19 pandemic, we implemented cost containment and temporary salary reductions for senior management and utilised government support schemes. Total R&D investment including capitalised development costs was £2.9m (Q3 2020: £2.6m). Total capex investment in the period of £7.8m (Q3 2020: £3.7m) and £17.1m YTD (YTD Q3 2020: £9.8m) includes investment in CleanTreat®, in our Advanced Nutrition facilities in Thailand and in the new incubation facility in Iceland.

 

Adjusted EBITDA from continuing operations for the quarter was 110% up at £4.4m against £2.1m in Q3 2020 as a result of higher revenues and ongoing cost control, partially offset by an increase in operating costs as activity normalises post Covid-19. YTD adjusted EBITDA at £12.4m was £2.6m, 27% up on the prior year (YTD Q3 2020 (restated): £9.8m).

 

We continued to make good progress in our strategic priorities which are aligned towards our goal of becoming the leading aquaculture biotechnology company delivering sustainable profitability.

 

Advanced Nutrition

 

Advanced Nutrition performed strongly in the quarter with growth across all product areas - Artemia, diets and health. The good performance is the result of a successful commercial programme to regain market share in Artemia and strengthen our position in diets and health, as well as recovering shrimp and seabass/seabream markets. Revenues of £18.4m in Q3 were 15% above the prior year (Q3 2020: £16.0m). YTD Q3 revenues of £53.4m were 13% above the prior year (YTD Q3 2020: £47.3m). Adjusted EBITDA in Q3 2021 was £3.9m (Q3 2020: £2.8m) and YTD Q3 Adjusted EBITDA was £10.2m, 64% above the prior year YTD (YTD Q3 2020: £6.2m). The increase in Adjusted EBITDA margin reflects higher sales, as well as growth in diets which have a higher margin and ongoing cost control.

 

By product, Artemia revenues were up 21%, Diets were up 27% and Health was up 56% in the quarter.  YTD Q3, Artemia revenues were up 19% versus prior year despite a strategic drop in price to regain market share. Diets were up 26% and Health was up 7%. By region, Asia performed strongly while the Americas remain challenging partly because of the ongoing Covid-19 pandemic and logistical difficulties.

 

Genetics

Genetics performed well in the period with revenues of £8.7m, 21% above the prior year (Q3 2020: £7.2m) driven by higher sales of salmon eggs primarily from the Salten facility in Norway. Current capacity from our Salten facility is sold out and we continue to work on the operational optimisation and ramp up of Salten to reach its full 150m egg capacity. Harvest income was lower than the prior year due to lower salmon prices. YTD Q3 revenues at £30.9m were 4% ahead of the prior year (YTD Q3 2020: £29.7m) reflecting the same drivers as in Q3.

Adjusted EBITDA for Q3 2021 of £2.2m was 83% higher than prior year (Q3 2020: £1.2m) as a result of higher sales offsetting an increase in operating costs as operations normalise post Covid-19. Adjusted EBITDA for YTD Q3 of £8.2m was 16% below the prior year (YTD Q3 2020: £9.8m) due to lower harvest income and lower JV revenues.

 

Biological asset increase of £1.2m in the quarter (Q3 FY20: £1.5m) was impacted by adverse foreign exchange movements of £0.5m (Q3 FY20: favourable £1.0m) and includes a fair value increase of £0.4m (Q3 2020: £0.9m decrease) as a result of higher salmon egg sales and higher price. YTD Q3 increase in biological assets of £5.3m (YTD Q3 2020: £1.3m) reflects a favourable foreign exchange movement of £0.8m (YTD Q3 FY20: adverse £2.6m) and includes a fair value increase of £2.3m (YTD Q3 2020: £1.7m) as salmon egg production, sales and prices increase.

By species, salmon performed well maintaining a strong market position in the northern hemisphere. We also continue to win new contracts for future delivery in the emerging land-based segment where we have established a leading position which will support future growth. Delivery of land-based contracts will commence as the new land-based facilities come on stream which we expect to be gradual in the years to come. The expansion of the incubation facility in Iceland will support future demand across all production paradigms and is progressing according to plan. In Chile, we continued our efforts to penetrate the market in a disciplined manner, achieving first sales in the period. The Chilean market is well established and we expect to build a market position gradually over time.   

In shrimp, test market sales of our SPR shrimp continued in the period and the expansion of the Fellsmere facility in Florida progressed according to plan. The additional capacity is expected to come onstream by the end of the year. We are planning a phased entry into the Asian markets ensuring that we have an optimised product in each region. During Q3 we capitalised £0.4m from development costs (YTD Q3 2021: £1.3m) and incurred operating costs of £0.2m (YTD Q3 2021: £1.2m).

In Tilapia, our focus is on achieving profitability seeking new commercial opportunities and establishing the optimal scale for a sustainably profitable business. During the period we incurred £0.2m operating costs (YTD Q3 2021: £0.7m).

 

Health

 

Post period-end the Health business area achieved a very significant strategic milestone when marketing authorisation was obtained in Norway for its new sea lice treatment, Ectosan® Vet and CleanTreat®, as well as ratification of the MRL (Maximum Residue Limit) in Norway. Having concluded these steps, Benchmark is now able to commercialise its novel sea lice solution in Norway. Benchmark's solution which is highly efficacious, is good for animal welfare and protects the environment from discharge of medicine into the ocean is the first sea lice medicine to be introduced in the market in more than a decade. We have two CleanTreat® units in operation and have successfully delivered the first sea lice treatments to our customers during August.

 

Revenues in Q3 2021 from continuing operations of £1.2m were 20% above the prior year (Q3 2020 (restated): £1.0m) due to higher sales of Salmosan in Norway and the Faroes. YTD Q3 2021 revenues were £3.6m, 8% behind prior year (YTD Q3 2020 (restated): £3.9m).

 

Adjusted EBITDA from continuing operations in Q3 2021 was a loss of £1.2m (Q3 2020 (restated): loss £1.3m) reflecting higher revenues offset by continued investment in Ectosan® Vet and CleanTreat®. YTD Q3 Adjusted EBITDA was a loss of £3.8m (Q3 YTD 2020 (restated): loss £3.9m).

 

Operating costs associated with Ectosan® Vet and CleanTreat® were £3.4m YTD Q3 2021, of which £1.7m have been capitalised and capex investment in CleanTreat® YTD Q3 2021 was £3m.

 

Finance costs, cashflow and net debt

 

Net finance cost for the quarter of £1.4m is £0.6m lower than the prior year (Q3 2020: £2.0m). Q3 2021 had forex gains of £0.7m (Q3 2020: £1.4m loss) and no movement on the fair value of the financial instrument used to hedge the currency and interest risk on the NOK bond financing (Q3 2020: £1.6m gain). Interest charge (including interest expense on right-of-use assets) of £2.1m (Q3 2020: £2.2m) was slightly lower due to favourable exchange rate movements, offset by £0.1m increase in interest on right-of-use assets. 

 

Net finance cost for the YTD Q3 at £0.1m is £11.4m lower than the prior year (YTD 2020: £11.5m). The main reasons for the lower net cost are a YTD gain of £2.4m on revaluation of financial instruments mentioned above (YTD Q3 2020: £2.1m loss) and forex gains of £4.0m (YTD Q3 2020: £3.2m loss). Interest charge (including interest expense on right-of-use assets) of £6.5m (Q3 2020: £6.4m) is broadly in line with the previous year. 

 

Net debt at the quarter end was £76.1m (30 June 2020: £54.7m; 30 Sept 2020: £37.6m) and net debt excluding lease liabilities was £52.7m (30 June 2020: £45.3m; 30 Sept 2020: £27.1m). This is a result of a cash outflow from operations of £0.1m (cash inflow YTD 2020: £0.5m) and capex of £13.5m. The main areas of capex investment in the period include CleanTreat®, the fire prevention equipment in our facility in Thailand and the new incubation centre in Iceland. Capitalised development costs totalled £3.6m, mainly related to Ectosan® Vet and CleanTreat® and SPR shrimp.

 

We continue to maintain tight control of costs and working capital across the Group. Our priority is to maintain a strong balance sheet in the business to maintain momentum and support the execution of our growth opportunities.  Liquidity at the end of the period was £54.1m providing £44.1m of headroom against our minimum liquidity covenant.

 

Current Trading and Outlook

 

The Group is performing well across its three business areas and is trading in line with market expectations for the full year.

 

Looking forward, our end markets are gradually recovering from the impact of Covid-19 as restrictions ease in certain territories, creating a more positive trading environment for our businesses. This, together with the successful commercial launch of Ectosan® Vet and CleanTreat®, the continuing good performance in Genetics and Advanced Nutrition and our ongoing cost and cash management discipline, are expected to benefit our financial performance going forward.

 

Longer term, the opportunities in our end markets remain significant with an increasing need for sustainable solutions in the aquaculture industry. As a focused aquaculture biotechnology company and proactive industry leader, with a clear commercial focus and capital allocation priorities, we are well positioned to improve sustainability across the aquaculture and deliver profitable growth in future years.

 

Benchmark Holdings plc

 

Consolidated Income Statement for the period ended 30 June 2021

 

 

All figures in £000's

Notes

Q3 2021
(unaudited)

Q3 2020 Restated*
(unaudited)

YTD Q3 2021
(unaudited)

YTD Q3 2020 Restated*
(unaudited)

FY 2020
(audited)

Revenue

4

28,336

24,149

87,801

80,326

105,565

Cost of sales

 

(13,024)

(13,131)

(41,646)

(38,288)

(50,603)

Gross profit

 

15,312

11,018

46,155

42,038

54,962

Research and development costs

 

(1,590)

(1,248)

(5,172)

(5,975)

(7,282)

Other operating costs

 

(9,329)

(7,455)

(28,026)

(26,427)

(33,337)

Share of profit/(loss) of equity-accounted investees, net of tax

 

35

(186)

(606)

205

150

Adjusted EBITDA²

 

4,428

2,129

12,351

9,841

14,493

Exceptional - restructuring, disposal and acquisition related items

6

(187)

(581)

(1,055)

(759)

(2,114)

EBITDA¹

 

4,241

1,548

11,296

9,082

12,379

Depreciation and impairment

 

(1,555)

(1,567)

(5,050)

(4,656)

(6,640)

Amortisation and impairment

 

(3,931)

(4,173)

(12,109)

(12,506)

(16,613)

Operating loss

 

(1,245)

(4,192)

(5,863)

(8,080)

(10,874)

Finance cost

 

(2,110)

(1,999)

(6,495)

(11,635)

(12,779)

Finance income

 

674

11

6,424

90

1,082

Loss before taxation

 

(2,681)

(6,180)

(5,934)

(19,625)

(22,571)

Tax on loss

7

(128)

580

58

223

(204)

Loss from continuing operations

 

(2,809)

(5,600)

(5,876)

(19,402)

(22,775)

Discontinued operations

 

 

 

 

 

 

Profit/(loss) from discontinued operations, net of tax

5

-

1,204

-

(3,794)

(9,174)

 

 

(2,809)

(4,396)

(5,876)

(23,196)

(31,949)

Loss for the period attributable to:

 

 

 

 

 

 

- Owners of the parent

 

(2,972)

(4,413)

(6,790)

(23,383)

(32,923)

- Non-controlling interest

 

163

17

914

187

974

 

 

(2,809)

(4,396)

(5,876)

(23,196)

(31,949)

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

Basic loss per share (pence)

8

(0.44)

(0.66)

(1.01)

(3.83)

(5.26)

Diluted loss per share (pence)

8

(0.44)

(0.66)

(1.01)

(3.83)

(5.26)

Earnings per share - continuing operations

 

 

 

 

 

 

Basic loss per share (pence)

8

(0.44)

(0.84)

(1.01)

(3.20)

(3.80)

Diluted loss per share (pence)

8

(0.44)

(0.84)

(1.01)

(3.20)

(3.80)

 

 

 

 

 

 

 

All figures in £000's

 

 

 

 

 

 

Adjusted EBITDA from continuing operations

 

4,428

2,129

12,351

9,841

14,493

Adjusted EBITDA from discontinued operations

5

-

(1,822)

-

(6,273)

(8,726)

Total Adjusted EBITDA

 

4,428

307

12,351

3,568

5,767

 

1 EBITDA - Earnings/loss before interest, tax, depreciation, amortisation and impairment

2 Adjusted EBITDA - EBITDA before exceptional and acquisition related items

* Q3 2020 and YTD Q3 2020 numbers have been restated to reflect changes to the ongoing continuing business since the figures were originally reported (note 5)

 

Benchmark Holdings plc

 

Consolidated Statement of Comprehensive Income for the period ended 30 June 2021

 

 

All figures in £000's

 

Q3 2021
(unaudited)

Q3 2020 Restated*
(unaudited)

YTD Q3 2021
(unaudited)

YTD Q3 2020 Restated*
(unaudited)

FY 2020
(audited)

 

 

 

 

 

 

 

 

 

Loss for the period

 

(2,809)

(4,396)

(5,876)

(23,196)

(31,949)

 

Other comprehensive income

 

 

 

 

 

 

 

Items that are or may be reclassified subsequently to profit or loss

 

 

 

 

 

 

 

Foreign exchange translation differences

 

(385)

8,886

(14,054)

(8,438)

(20,327)

 

Cash flow hedges - changes in fair value

 

(514)

4,982

2,306

(4,904)

(5,932)

 

Cash flow hedges - reclassified to profit or loss

 

257

(1)

544

(163)

(153)

 

Total comprehensive income for the period

 

(3,451)

9,471

(17,080)

(36,701)

(58,361)

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period attributable to:

 

 

 

 

 

 

 

- Owners of the parent

 

(3,645)

9,169

(18,304)

(36,253)

(58,532)

 

- Non-controlling interest

 

194

302

1,224

(448)

171

 

 

 

(3,451)

9,471

(17,080)

(36,701)

(58,361)

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period attributable to owners of the parent:

 

 

 

 

 

 

- Continuing operations

 

(3,645)

7,523

(18,304)

(33,441)

(50,604)

 

- Discontinued operations

 

-

1,646

-

(2,812)

(7,928)

 

 

 

(3,645)

9,169

(18,304)

(36,253)

(58,532)

 

                         

 

* Q3 2020 and YTD Q3 2020 numbers have been restated to reflect changes to the ongoing continuing business since the figures were originally reported (note 5).

 

Benchmark Holdings plc

 

Consolidated Balance Sheet as at 30 June 2021

 

 

 

 

30 June 2021

30 June 2020


30 September 2020

All figures in £000's

Notes

(unaudited)

(unaudited)

(audited)

Assets

 

 

 

 

Property, plant and equipment

 

74,995

86,021

65,601

Right-of-use assets

 

25,306

8,743

10,347

Intangible assets

 

228,156

260,158

247,003

Equity-accounted investees

 

3,289

3,884

3,690

Other investments

 

15

24

23

Biological and agricultural assets

 

17,119

9,328

16,621

Non-current assets

 

348,880

368,158

343,285

Inventories

 

20,260

23,323

18,926

Biological and agricultural assets

 

20,610

20,435

15,848

Trade and other receivables

 

34,462

31,505

39,371

Cash and cash equivalents

 

43,187

54,492

71,605

 

 

118,519

129,755

145,750

Assets held for sale

 

-

9,812

-

Current assets

 

118,519

139,567

145,750

Total assets

 

467,399

507,725

489,035

Liabilities

 

 

 

 

Trade and other payables

 

(32,798)

(37,489)

(45,692)

Loans and borrowings

9

(10,481)

(4,809)

(5,339)

Corporation tax liability

 

(4,439)

(3,553)

(4,344)

Provisions

 

-

(386)

-

 

 

(47,718)

(46,237)

(55,375)

Liabilities directly associated with the assets held for sale

 

-

(3,799)

-

Current liabilities

 

(47,718)

(50,036)

(55,375)

Loans and borrowings

9

(108,829)

(104,335)

(103,819)

Other payables

 

(1,803)

(2,020)

(1,754)

Deferred tax

 

(28,582)

(34,915)

(32,647)

Non-current liabilities

 

(139,214)

(141,270)

(138,220)

Total liabilities

 

(186,932)

(191,306)

(193,595)

Net assets

 

280,467

316,419

295,440

Issued capital and reserves attributable to owners of the parent

 

 

 

 

Share capital

10

670

668

668

Additional paid-in share capital

10

400,622

399,601

399,601

Capital redemption reserve

 

5

5

5

Retained earnings

 

(147,876)

(133,311)

(142,170)

Hedging reserve

 

(6,800)

(8,633)

(9,651)

Foreign exchange reserve

 

26,313

52,399

40,678

Equity attributable to owners of the parent

 

272,934

310,729

289,131

Non-controlling interest

 

7,533

5,690

6,309

Total equity and reserves

 

280,467

316,419

295,440

 

The accompanying notes are an integral part of this consolidated financial information.

 

Benchmark Holdings plc

 

Consolidated Statement of Changes in Equity for the period ended 30 June 2021

 

 

 

 Share
capital

 Additional paid-in share capital

 Other
reserves*

 Hedging 
reserve

 Retained
 earnings

 Total attributable
 to equity holders of
parent

 Non-
controlling
interest

 Total
equity

 

 000

 000

 000

 000

 000

 000

 000

 000

As at 1 October 2020 (audited)

668

399,601

40,683

(9,651)

(142,170)

289,131

6,309

295,440

Comprehensive income for the period

 

 

 

 

 

 

 

 

(Loss)/profit for the period

-

-

-

-

(6,790)

(6,790)

914

(5,876)

Other comprehensive income

-

-

(14,365)

2,851

-

(11,514)

310

(11,204)

Total comprehensive income for the period

-

-

(14,365)

2,851

(6,790)

(18,304)

1,224

(17,080)

Contributions by and distributions to owners

 

 

 

 

 

 

 

 

Share issue

2

1,021

-

-

-

1,023

-

1,023

Share-based payment

-

-

-

-

1,084

1,084

-

1,084

Total contributions by and distributions to owners

2

1,021

-

-

1,084

2,107

-

2,107

Total transactions with owners of the Company

2

1,021

-

-

1,084

2,107

-

2,107

As at 30 June 2021 (unaudited)

670

400,622

26,318

(6,800)

(147,876)

272,934

7,533

280,467

 

 

 

 

 

 

 

 

 

As at 1 October 2019 (audited)

559

358,044

60,207

(3,566)

(110,916)

304,328

6,138

310,466

Comprehensive income for the period

 

 

 

 

 

 

 

 

(Loss)/profit for the period

-

-

-

-

(23,383)

(23,383)

187

(23,196)

Other comprehensive income

-

-

(7,803)

(5,067)

-

(12,870)

(635)

(13,505)

Total comprehensive income for the period

-

-

(7,803)

(5,067)

(23,383)

(36,253)

(448)

(36,701)

Contributions by and distributions to owners

 

 

 

 

 

 

 

 

Share issue

109

42,869

-

-

-

42,978

-

42,978

Share issue costs recognised through equity

-

(1,312)

-

-

-

(1,312)

-

(1,312)

Share-based payment

-

-

-

-

988

988

-

988

Total contributions by and distributions to owners

109

41,557

-

-

988

42,654

-

42,654

Total transactions with owners of the Company

109

41,557

-

-

988

42,654

-

42,654

As at 30 June 2020 (unaudited)

668

399,601

52,404

(8,633)

(133,311)

310,729

5,690

316,419

 

 

 

 

 

 

 

 

 

As at 1 October 2019 (audited)

559

358,044

60,207

(3,566)

(110,916)

304,328

6,138

310,466

Comprehensive income for the period

 

 

 

 

 

 

 

 

(Loss)/profit for the period

-

-

-

-

(32,923)

(32,923)

974

(31,949)

Other comprehensive income

-

-

(19,524)

(6,085)

-

(25,609)

(803)

(26,412)

Total comprehensive income for the period

-

-

(19,524)

(6,085)

(32,923)

(58,532)

171

(58,361)

Contributions by and distributions to owners

 

 

 

 

 

 

 

 

Share issue

109

42,869

-

-

-

42,978

-

42,978

Share issue costs recognised through equity

-

(1,312)

-

-

-

(1,312)

-

(1,312)

Share-based payment

-

-

-

-

1,669

1,669

-

1,669

Total contributions by and distributions to owners

109

41,557

-

-

1,669

43,335

-

43,335

Total transactions with owners of the Company

109

41,557

-

-

1,669

43,335

-

43,335

As at 30 September 2020 (audited)

668

399,601

40,683

(9,651)

(142,170)

289,131

6,309

295,440

 

*Other reserves in this statement is an aggregation of Capital redemption reserve and Foreign exchange reserve.

 

Benchmark Holdings plc

 

Consolidated Statement of Cash Flows for the period ended 30 June 2021

 

 

 

YTD Q3 2021
(unaudited)

YTD Q3 2020
(unaudited)

FY 2020
(audited)

 

£000

£000

£000

Cash flows from operating activities

 

 

 

Loss for the period

(5,876)

(23,196)

(31,949)

Adjustments for:

 

 

 

Depreciation and impairment of property, plant and equipment

5,050

6,353

9,138

Amortisation and impairment of intangible fixed assets

12,109

13,259

19,402

(Loss)/gain on sale of property, plant and equipment

47

75

(1,140)

Gain on sale of subsidiaries

-

(5,564)

(14,120)

Gain on sale of other investments

(91)

-

-

Finance income

(2,460)

(89)

(111)

Finance costs

6,495

6,394

9,695

Other adjustments for non-cash items

-

(1,776)

200

Share of loss/(profit) of equity-accounted investees, net of tax

606

(205)

(150)

Foreign exchange (gains)/losses

(4,237)

4,015

(132)

Share based payment expense

1,084

988

1,669

Tax (credit)/charge

(58)

(113)

314

 

12,669

141

(7,184)

Decrease in trade and other receivables

4,579

9,790

4,202

(Increase)/decrease in inventories

(2,559)

(648)

3,741

Increase in biological assets

(4,418)

(3,931)

(7,474)

(Decrease)/increase in trade and other payables

(7,760)

(3,175)

5,006

Decrease in provisions

(29)

(18)

(260)

 

2,482

2,159

(1,969)

Income taxes paid

(2,625)

(1,667)

(2,087)

Net cash flows used in operating activities

(143)

492

(4,056)

Investing activities

 

 

 

Proceeds from sale of subsidiaries, net of cash disposed of

-

5,025

17,487

Purchases of investments

(247)

(373)

(522)

Proceeds from disposal of investments

99

6,932

6,932

Purchases of property, plant and equipment

(12,789)

(5,235)

(5,851)

Payments for initial costs of right-of-use assets

(586)

-

-

Proceeds from sales of intangible assets

-

207

261

Purchases of intangibles

(3,629)

(3,249)

(5,563)

Purchases of held for sale assets

-

-

(402)

Proceeds from sale of fixed assets

88

123

16,147

Proceeds from sales of other long-term assets

-

1,776

1,776

Interest received

48

89

111

Net cash flows used in investing activities

(17,016)

5,295

30,376

Financing activities

 

 

 

Proceeds of share issues

689

42,978

42,978

Share-issue costs recognised through equity

-

(1,312)

(1,312)

Proceeds from bank or other borrowings

-

7,925

8,387

Repayments of bank or other borrowings

(2,696)

(9,614)

(10,141)

Interest and finance charges paid

(5,685)

(5,309)

(7,659)

Repayments of lease liabilities

(2,884)

(1,914)

(2,120)

Net cash inflow from financing activities

(10,576)

32,754

30,133

Net (decrease)/increase in cash and cash equivalents

(27,735)

38,541

56,453

Cash and cash equivalents at beginning of period

71,605

16,051

16,051

Effect of movements in exchange rate

(683)

(100)

(899)

Cash and cash equivalents at end of period

43,187

54,492

71,605

 

The Consolidated Statement of Cash Flows presents cash flows from both Continuing and Discontinued operations in the comparatives. There were no Discontinued operations in the current period.

 

Benchmark Holdings plc

 

Unaudited notes to the interim financial statements for period ended 30 June 2021

 

 

 

1.  Basis of preparation

 

Benchmark Holdings plc (the 'Company') is a company incorporated domiciled in the United Kingdom. These consolidated interim financial statements as at and for the nine months ended 30 June 2021 represent those of the Company and its subsidiaries (together referred to as the 'Group').

 

These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the Group's consolidated financial statements as at and for the year ended 30 September 2020. They do not include all of 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. Statutory accounts for the year ended 30 September 2020 were approved by the Directors on 27 November 2020 and have been delivered to the Registrar of Companies. The audit report received on those accounts was unqualified and did not make a statement under section 498 of the Companies Act 2006.

 

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 30 June 2021 the Group had net assets of £280.5m (30 September 2020: £295.4m), including cash of £43.2m (30 September 2020: £71.6m) as set out in the consolidated balance sheet. The Group made a loss for the period of £5.9m (30 September 2020: £31.9m).

 

As noted in the Management Report, we have seen some recovery in our end markets as the Covid-19 vaccine programmes across the world are rolled out in key markets and the hospitality sector reopens.  The ultimate lasting impact of the pandemic on industry, the economy, Benchmark's markets and its businesses remains to some extent uncertain, but strong performance in the quarter and year to date has been positive and has given cause for optimism.

 

The Directors prepared cash flow projections covering the period to September 2022 as part of the budgeting process for 2021, and these were used to assess the Group's trading and cash flow forecasts and the forecast compliance with the covenants included within the Group's financing arrangements.  Year to date performance has been in line with these forecasts.  Cash resources were boosted by non-core business disposals during 2020 and the ongoing cost base following these transactions was significantly reduced. 

 

The uncertainty relating to the future impact on the Group of the pandemic continues to be considered as part of the Directors' assessment of the going concern assumption, and positive preventative measures implemented by the Directors at an early stage in response to the pandemic continue to be in force where necessary.  In the downside scenario analysis performed, the Directors considered severe but plausible impacts of Covid-19 on the Group's trading and cash flow forecasts, modelling reductions in the revenues and cash flows in Advanced Nutrition, being the segment most impacted by Covid-19 because of its exposure to global shrimp markets, alongside modelling delays to new product launches in the Health business area.  Key downside sensitivities modelled included assumptions on slower than expected recovery in global shrimp markets, affecting demand for Advanced Nutrition products and a three-month potential delay in the launch of Ectosan® Vet (formerly referred to as BMK08) and CleanTreat®, pushing commercial launch back to September 2021.  As noted in the Management Report, the Directors have observed some recovery in the shrimp markets in the performance of the Advanced Nutrition business during the period and also announced receipt of the marketing authorisation for its new sea lice treatment (Ectosan® Vet and CleanTreat®) as well as and ratification of the MRL in Norway.  The latter has allowed Benchmark to commercialise this novel treatment with first sales in August 2021, so the group outperformed the downside sensitivity scenario noted above.  Nevertheless, mitigating measures within the control of management were implemented early in the pandemic and remain in place and have been factored into the downside analysis performed. These measures include reductions in areas of discretionary spend, deferral of capital projects and temporary hold on R&D for non-imminent products.

 

The budgeting process is well underway for 2022, and while this is not yet finalised, the projections show adequate resources and liquidity to continue to support the going concern assertion.

 

It remains difficult to predict the overall outcome and lasting impact of the pandemic, but under the severe but plausible downside scenarios modelled, which the Group has so far outperformed, the Group has sufficient liquidity and resources throughout the period under review whilst still maintaining adequate headroom against the borrowing covenants. The Directors 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 interim financial statements. Accordingly, these interim financial statements have been prepared 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 2020.

 

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 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, Adjusted Profit Before Tax and Adjusted EBITDA excluding fair value movement on biological assets 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 (see note 11). F urthermore, the Directors also refer to current period results using constant currency, which are derived by retranslating current period results using 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 2020.

 

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:

 

· Genetics -   harnesses industry leading salmon breeding technologies combined with state-of-the-art production facilities to provide a range of year-round high genetic merit ova;

· Advanced Nutrition - manufactures and provides technically advanced nutrition and health products to the global aquaculture industry.

· Health - provided veterinary services, environmental services diagnostics and health products to the global aquaculture market, and manufactures licenced veterinary vaccines and vaccine components; following the divestment programme the segment now focusses on providing health products to the global aquaculture market.

 

In addition to the above, reported as "all other segments" is the Knowledge Services business area, the operations of which were disposed of or discontinued in the two previous years. The business area provided sustainable food production consultancy, technical consultancy and assurance services and promotes sustainable food production and ethics through online news and technical publications for the international agriculture and food processing sectors and through delivery of training courses to the industries.

 

In order to reconcile the segmental analysis to the Consolidated Income Statement, Corporate and Inter-segment sales are also shown. C orporate represents revenues earned from recharging certain central costs to the operating divisions, 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)

 

 Segmental Revenue

 

 

 

 

 All figures in £000's

 Q3 2021
(unaudited)

 Q3 2020
(unaudited)

 YTD Q3 2021
(unaudited)

 YTD Q3 2020
(unaudited)

 FY 2020
(audited)

  Genetics 

8,735

30,865

29,672

41,504

  Advanced Nutrition 

18,410

53,437

47,267

59,362

  Health 

1,226

3,563

9,428

10,799

  All other segments 

-

-

8,874

9,257

  Corporate 

1,207

3,611

3,993

4,939

  Inter-segment sales 

(1,242)

(3,675)

(4,480)

(5,469)

  Total 

28,336

27,797

87,801

94,754

120,392

 

 Segmental Adjusted EBITDA

 

 

 

 

 All figures in £000's

 Q3 2021
(unaudited)

 Q3 2020
(unaudited)

 YTD Q3 2021
(unaudited)

 YTD Q3 2020
(unaudited)

 FY 2020
(audited)

  Genetics 

2,232

8,219

9,794

14,442

  Advanced Nutrition 

3,919

10,158

6,086

6,266

  Health 

(1,226)

(3,789)

(10,535)

(12,886)

  All other segments 

-

-

140

244

  Corporate 

(497)

(2,237)

(1,917)

(2,299)

  Total 

4,428

307

12,351

3,568

5,767

 

 

Reconciliations of segmental information to IFRS measures

 

 All figures in £000's

 Q3 2021
(unaudited)

 Q3 2020 Restated*
(unaudited)

 YTD Q3 2021
(unaudited)

 YTD Q3 2020 Restated*
(unaudited)

 FY 2020
(audited)

 

 

 

 

 

 

Total revenue per segmental information

28,336

27,797

87,801

94,754

120,392

Less: revenue from discontinued operations

-

(3,648)

-

(14,428)

(14,827)

Consolidated revenue

28,336

24,149

87,801

80,326

105,565

 

 Reconciliation of Reportable Segments Adjusted EBITDA to Loss before taxation from continuing operations

 All figures in £000's

 Q3 2021
(unaudited)

 Q3 2020 Restated*
(unaudited)

 YTD Q3 2021
(unaudited)

 YTD Q3 2020 Restated*
(unaudited)

 FY 2020
(audited)

 Total reportable segment Adjusted EBITDA 

4,925

1,125

14,588

5,345

7,822

 All other segments and Corporate Adjusted EBITDA

(497)

(818)

(2,237)

(1,777)

(2,055)

 

4,428

307

12,351

3,568

5,767

 Less: Adjusted EBITDA from discontinued operations

-

1,822

-

6,273

8,726

 Adjusted EBITDA from continuing operations

4,428

2,129

12,351

9,841

14,493

 Exceptional - restructuring, disposal and acquisition related items

(187)

(581)

(1,055)

(759)

(2,114)

 Depreciation and impairment

(1,555)

(1,567)

(5,050)

(4,656)

(6,640)

 Amortisation and impairment

(3,931)

(4,173)

(12,109)

(12,506)

(16,613)

 Net finance costs

(1,436)

(1,988)

(71)

(11,545)

(11,697)

 Loss before taxation from continuing operations

(2,681)

(6,180)

(5,934)

(19,625)

(22,571)

 

*See note 5.
 

4.  Revenue

 

The Group's operations and main revenue streams are those described in its financial statements to 30 September 2020. 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).

 

Sale of goods and provision of services

 

 

 

3 months ended 30 June 2021 (unaudited)

All figures in £000's

 

 Genetics

 Advanced Nutrition

  Health

 All other segments

 Corporate

 Inter-segment sales

 Total

 Discontinued

 Continued

 Sale of goods

 

6,991

18,371

1,225

-

-

-

26,587

-

26,587

 Provision of services

 

1,748

-

1

-

-

-

1,749

-

1,749

 Inter-segment sales

 

(4)

39

-

-

1,207

(1,242)

-

-

-

 

 

8,735

18,410

1,226

-

1,207

(1,242)

28,336

-

28,336

 

 

 

 

 

 

 

 

 

 

 

 

 

3 months ended 30 June 2020 (unaudited)

All figures in £000's

 

 Genetics

 Advanced Nutrition

  Health

 All other segments

 Corporate

 Inter-segment sales

 Total

 Discontinued Restated*

 Continued Restated*

 Sale of goods

 

6,457

15,956

1,983

177

-

-

24,573

1,271

23,302

 Provision of services

 

822

-

643

1,759

-

-

3,224

2,377

847

 Inter-segment sales

 

(111)

16

80

17

1,209

(1,211)

-

-

-

 

 

7,168

15,972

2,706

1,953

1,209

(1,211)

27,797

3,648

24,149

 

 

 

 

 

 

 

 

 

 

 

 

 

9 months ended 30 June 2021 (unaudited)

All figures in £000's

 

 Genetics

 Advanced Nutrition

  Health

 All other segments

 Corporate

 Inter-segment sales

 Total

 Discontinued 

 Continued 

 Sale of goods

 

27,022

53,381

3,542

-

-

-

83,945

-

83,945

 Provision of services

 

3,835

-

21

-

-

-

3,856

-

3,856

 Inter-segment sales

 

8

56

-

-

3,611

(3,675)

-

-

-

 

 

30,865

53,437

3,563

-

3,611

(3,675)

87,801

-

87,801

 

 

 

 

 

 

 

 

 

 

 

 

 

9 months ended 30 June 2020 (unaudited)

All figures in £000's

 

 Genetics

 Advanced Nutrition

  Health

 All other segments

 Corporate

 Inter-segment sales

 Total

 Discontinued Restated*

 Continued Restated*

 Sale of goods

 

26,407

47,219

5,207

431

-

-

79,264

2,310

76,954

 Provision of services

 

3,264

-

3,798

8,406

22

-

15,490

12,118

3,372

 Inter-segment sales

 

1

48

423

37

3,971

(4,480)

-

-

-

 

 

29,672

47,267

9,428

8,874

3,993

(4,480)

94,754

14,428

80,326

 

*See note 5.
 

4.  Revenue (continued)

 

Sale of goods and provision of services (continued)

 

 

12 months ended 30 September 2020 (audited)

All figures in £000's

 

 Genetics

 Advanced Nutrition

  Health

 All other segments

 Corporate

 Inter-segment sales

 Total

 Discontinued

 Continued

 Sale of goods

 

37,555

59,301

6,529

547

-

-

103,932

2,551

101,381

 Provision of services

 

3,909

-

3,846

8,683

22

-

16,460

12,276

4,184

 Inter-segment sales

 

40

61

424

27

4,917

(5,469)

-

-

-

 

 

41,504

59,362

10,799

9,257

4,939

(5,469)

120,392

14,827

105,565

 

Primary geographical markets

 

 

3 months ended 30 June 2021 (unaudited)

All figures in £000's

 

 Genetics

 Advanced Nutrition

  Health

 All other segments

 Corporate

 Inter-segment sales

 Total

 Discontinued

 Continued

 Norway

 

4,340

178

356

-

-

-

4,874

-

4,874

 UK

 

911

31

462

-

-

-

1,404

-

1,404

 Faroe Islands

 

1,094

7

168

-

-

-

1,269

-

1,269

 Ecuador

 

-

1,009

-

-

-

-

1,009

-

1,009

 India

 

-

2,870

3

-

-

-

2,873

-

2,873

 Greece

 

-

1,650

-

-

-

-

1,650

-

1,650

 Singapore

 

-

2,240

-

-

-

-

2,240

-

2,240

 Chile

 

-

2

604

-

-

-

606

-

606

 Turkey

 

-

1,423

-

-

-

-

1,423

-

1,423

 Rest of Europe

 

1,825

645

-

-

-

-

2,470

-

2,470

 Rest of World

 

569

8,316

(367)

-

-

-

8,518

-

8,518

 Inter-segment sales

 

(4)

39

-

-

1,207

(1,242)

-

-

-

 

 

8,735

18,410

1,226

-

1,207

(1,242)

28,336

-

28,336

 

 

 

3 months ended 30 June 2020 (unaudited)

All figures in £000's

 

 Genetics

 Advanced Nutrition

  Health

 All other segments

 Corporate

 Inter-segment sales

 Total

 Discontinued Restated*

 Continued Restated*

 Norway

 

3,098

205

321

-

-

-

3,624

316

3,308

 UK

 

1,226

21

657

1,341

-

-

3,245

1,711

1,534

 Faroe Islands

 

1,598

2

-

-

-

-

1,600

-

1,600

 Ecuador

 

-

1,550

-

-

-

-

1,550

-

1,550

 India

 

-

2,085

3

-

-

-

2,088

-

2,088

 Greece

 

20

1,031

-

-

-

-

1,051

-

1,051

 Singapore

 

-

2,392

-

-

-

-

2,392

-

2,392

 Chile

 

-

-

1,084

-

-

-

1,084

483

601

 Turkey

 

-

681

-

-

-

-

681

-

681

 Rest of Europe

 

890

775

537

509

-

-

2,711

1,043

1,668

 Rest of World

 

447

7,214

24

86

-

-

7,771

95

7,676

 Inter-segment sales

 

(111)

16

80

17

1,209

(1,211)

-

-

-

 

 

7,168

15,972

2,706

1,953

1,209

(1,211)

27,797

3,648

24,149

 

*See note 5.

4.  Revenue (continued)

 

Primary geographical markets (continued)

 

 

 

9 months ended 30 June 2021 (unaudited)

All figures in £000's

 

 Genetics

 Advanced Nutrition

  Health

 All other segments

 Corporate

 Inter-segment sales

 Total

 Discontinued

 Continued

 Norway

 

16,603

435

791

-

-

-

17,829

-

17,829

 UK

 

3,567

97

477

-

-

-

4,141

-

4,141

 Faroe Islands

 

4,465

16

168

-

-

-

4,649

-

4,649

 Ecuador

 

-

3,009

-

-

-

-

3,009

-

3,009

 India

 

-

9,137

3

-

-

-

9,140

-

9,140

 Greece

 

25

5,122

-

-

-

-

5,147

-

5,147

 Singapore

 

-

5,590

-

-

-

-

5,590

-

5,590

 Chile

 

37

6

2,039

-

-

-

2,082

-

2,082

 Turkey

 

-

4,868

-

-

-

-

4,868

-

4,868

 Rest of Europe

 

4,575

3,445

26

-

-

-

8,046

-

8,046

 Rest of World

 

1,585

21,656

59

-

-

-

23,300

-

23,300

 Inter-segment sales

 

8

56

-

-

3,611

(3,675)

-

-

-

 

 

30,865

53,437

3,563

-

3,611

(3,675)

87,801

-

87,801

 

 

 

9 months ended 30 June 2020 (unaudited)

All figures in £000's

 

 Genetics

 Advanced Nutrition

  Health

 All other segments

 Corporate

 Inter-segment sales

 Total

 Discontinued Restated*

 Continued Restated*

 Norway

 

13,974

446

1,428

-

-

-

15,848

1,145

14,703

 UK

 

5,584

75

1,909

5,795

22

-

13,385

7,150

6,235

 Faroe Islands

 

5,164

3

34

-

-

-

5,201

-

5,201

 Ecuador

 

-

5,412

-

-

-

-

5,412

-

5,412

 India

 

-

4,642

6

-

-

-

4,648

3

4,645

 Greece

 

61

5,025

-

-

-

-

5,086

-

5,086

 Singapore

 

-

4,257

7

-

-

-

4,264

7

4,257

 Chile

 

24

16

3,256

-

-

-

3,296

1,157

2,139

 Turkey

 

-

3,287

-

-

-

-

3,287

-

3,287

 Rest of Europe

 

3,323

3,870

1,549

2,549

-

-

11,291

4,071

7,220

 Rest of World

 

1,541

20,186

816

493

-

-

23,036

895

22,141

 Inter-segment sales

 

1

48

423

37

3,971

(4,480)

-

-

-

 

 

29,672

47,267

9,428

8,874

3,993

(4,480)

94,754

14,428

80,326

 

*See note 5.

 

 

4.  Revenue (continued)

 

Primary geographical markets (continued)

 

 

 

12 months ended 30 September 2020 (audited)

All figures in £000's

 

 Genetics

 Advanced Nutrition

  Health

 All other segments

 Corporate

 Inter-segment sales

 Total

 Discontinued

 Continued

 Norway

 

19,709

633

1,608

-

-

-

21,950

1,145

20,805

 UK

 

6,402

124

1,951

6,149

22

-

14,648

7,506

7,142

 Faroe Islands

 

6,961

3

114

-

-

-

7,078

-

7,078

 Ecuador

 

-

6,822

-

-

-

-

6,822

-

6,822

 India

 

-

6,452

6

-

-

-

6,458

3

6,455

 Greece

 

61

5,666

-

-

-

-

5,727

-

5,727

 Singapore

 

-

5,356

7

-

-

-

5,363

7

5,356

 Chile

 

119

21

4,083

-

-

-

4,223

1,159

3,064

 Turkey

 

-

6,452

6

-

-

-

6,458

-

6,458

 Rest of Europe

 

5,421

4,554

1,566

2,549

-

-

14,090

4,071

10,019

 Rest of World

 

2,791

23,218

1,034

532

-

-

27,575

936

26,639

 Inter-segment sales

 

40

61

424

27

4,917

(5,469)

-

-

-

 

 

41,504

59,362

10,799

9,257

4,939

(5,469)

120,392

14,827

105,565

 

 

 

5.  Discontinued activities

 

In June 2019, the Group announced a programme of structural efficiencies which focused on the disposal and discontinuation of non-core activities. This programme primarily included the businesses within Knowledge Services (reported within 'all other segments') and the veterinary services business within Health. These operations were presented as discontinued, and the sales of the disposal group were completed during the previous year and therefore continue to be shown as discontinued. During Q1 of the prior year, as a continuation of the above programme, a small non-core business within Advanced Nutrition was put up for sale and sold and a business within the Corporate category was closed.

 

During the prior year but after 30 June 2020, a restructuring of the Health business area saw the closure of the research and development operations at two sites, the sale of the Group's vaccine manufacturing facility and exit from non-core vaccine development collaborations. Consequently, these operations have been classified as discontinued with a corresponding restatement of the consolidated income statement and consolidated statement of comprehensive income for the quarter ended 30 June 2020 to reflect these changes.

 

Results from discontinued operations

All figures in £000's

 

Q3 2021
(unaudited)

Q3 2020 Restated
(unaudited)

YTD Q3 2021
(unaudited)

YTD Q3 2020 Restated
(unaudited)

FY 2020
(audited)

Revenue

 

-

3,648

-

14,428

14,827

Cost of sales

 

-

(2,964)

-

(11,081)

(13,000)

Gross profit

 

-

684

-

3,347

1,827

Research and development costs

 

-

(385)

-

(2,462)

(2,725)

Other operating costs

 

-

(2,121)

-

(7,158)

(7,828)

Adjusted EBITDA

 

-

(1,822)

-

(6,273)

(8,726)

Exceptional items

 

-

4,713

-

5,121

5,086

EBITDA

 

-

2,891

-

(1,152)

(3,640)

Depreciation and impairment

 

-

(951)

-

(1,697)

(2,498)

Amortisation and impairment

 

-

(685)

-

(753)

(2,789)

Operating profit/(loss)

 

-

1,255

-

(3,602)

(8,927)

Finance costs

 

-

(24)

-

(82)

(137)

Profit/(loss) before taxation

 

-

1,231

-

(3,684)

(9,064)

Tax on profit/(loss)

 

-

(27)

-

(110)

(110)

Profit/(loss) from discontinued operations

 

-

1,204

-

(3,794)

(9,174)

 

Results from discontinued operations by segment

 

 

 

Advanced Nutrition

 Health

All other segments

Corporate

Total Discontinued

All figures in £000's

 

Q3 2021
(unaudited)

Q3 2021
(unaudited)

Q3 2021
(unaudited)

Q3 2021
(unaudited)

Q3 2021
(unaudited)

Revenue

 

-

-

-

-

-

Adjusted EBITDA

 

-

-

-

-

-

Operating loss

 

-

-

-

-

-

 

 

 

 

 

 

 

 

 

Advanced Nutrition

 Health

All other segments

Corporate

Total Discontinued

All figures in £000's

 

Q3 2020
(unaudited)

Q3 2020 Restated
(unaudited)

Q3 2020
(unaudited)

Q3 2020
(unaudited)

Q3 2020 Restated
(unaudited)

Revenue

 

-

1,711

1,937

-

3,648

Adjusted EBITDA

 

-

(1,578)

(234)

(10)

(1,822)

Operating profit/(loss)

 

12

(2,421)

3,841

(177)

1,255

 

 

5.  Discontinued activities (continued)

 

Results from discontinued operations by segment (continued)

 

 

 

Advanced Nutrition

 Health

All other segments

Corporate

Total Discontinued

All figures in £000's

 

YTD Q3 2021
(unaudited)

YTD Q3 2021
(unaudited)

YTD Q3 2021
(unaudited)

YTD Q3 2021
(unaudited)

YTD Q3 2021
(unaudited)

Revenue

 

-

-

-

-

-

Adjusted EBITDA

 

-

-

-

-

-

Operating loss

 

-

-

-

-

-

 

 

 

 

 

 

 

 

 

Advanced Nutrition

 Health

All other segments

Corporate

Total Discontinued

All figures in £000's

 

YTD Q3 2020 
(unaudited)

YTD Q3 2020 Restated
(unaudited)

YTD Q3 2020 
(unaudited)

YTD Q3 2020 
(unaudited)

YTD Q3 2020 Restated
(unaudited)

Revenue

 

2

5,565

8,838

23

14,428

Adjusted EBITDA

 

(118)

(6,595)

591

(151)

(6,273)

Operating (loss)/profit

 

(369)

(8,359)

5,532

(406)

(3,602)

 

 

 

 

 

 

 

 

 

Advanced Nutrition

 Health

All other segments

Corporate

Total Discontinued

All figures in £000's

 

FY 2020
(audited)

FY 2020
(audited)

FY 2020
(audited)

FY 2020
(audited)

FY 2020
(audited)

Revenue

 

2

5,573

9,230

22

14,827

Adjusted EBITDA

 

(143)

(9,151)

749

(181)

(8,726)

Operating (loss)/profit

 

(394)

(11,914)

3,818

(437)

(8,927)

 

6.  Exceptional - restructuring, disposal, and acquisition related items

 

Items that are material because of their size or nature, 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

 

Q3 2021
(unaudited)

Q3 2020
(unaudited)

YTD Q3 2021
(unaudited)

YTD Q3 2020 Restated*
(unaudited)

FY 2020
(audited)

 

 

 

 

 

 

 

 Acquisition related items

 

-

-

-

-

586

 Exceptional restructuring and disposal items

 

187

581

1,055

759

1,528

 

 

 

 

 

Total exceptional items

 

187

581

1,055

759

2,114

 

*See note 5.

 

Exceptional restructuring and disposal items in Q3 2021 include £74,000 of staff costs relating to the Board's decision to make significant changes to the Group's management team and bring in new management, £22,000 of costs (including staff costs of £19,000) relating to disposals completed in the prior year and a charge of £91,000 relating to the sale of shares in an investment.

 

 

7.  Taxation

All figures in £000's

 

Q3 2021
(unaudited)

Q3 2020
(unaudited)

YTD Q3 2021
(unaudited)

YTD Q3 2020
(unaudited)

FY 2020
(audited)

Current tax expense

 

 

 

 

 

 

Analysis of charge in period

 

 

 

 

 

 

Current tax:

 

 

 

 

 

 

Current income tax expense on profits for the period

 

1,037

328

2,667

2,634

3,141

Adjustment in respect of prior periods

 

-

-

-

-

836

Total current tax charge

 

1,037

328

2,667

2,634

3,977

 

 

 

 

 

 

 

Deferred tax expense

 

 

 

 

 

 

Origination and reversal of temporary differences

 

(909)

(908)

(2,460)

(2,857)

(3,490)

Deferred tax movements in respect of prior periods

 

-

-

(265)

-

(283)

Total deferred tax credit

 

(909)

(908)

(2,725)

(2,857)

(3,773)

 

 

 

 

 

 

 

Total tax charge/(credit) on continuing operations

 

128

(580)

(58)

(223)

204

 

 

8.  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.

 

Q3 2021
(unaudited)

Q3 2020 Restated*
(unaudited)

YTD Q3 2021
(unaudited)

YTD Q3 2020 Restated*
(unaudited)

FY 2020
(audited)

Loss attributable to equity holders of the parent (£000)

 

 

 

 

 

Continuing operations

(2,972)

(5,617)

(6,790)

(19,589)

(23,749)

Discontinued operations

-

1,204

-

(3,794)

(9,174)

Total

(2,972)

(4,413)

(6,790)

(23,383)

(32,923)

 

 

 

 

 

 

Weighted average number of shares in issue (thousands)

670,158

667,596

669,164

611,301

625,466

 

 

 

 

 

 

Basic loss per share (pence)

 

 

 

 

 

Continuing operations

(0.44)

(0.84)

(1.01)

(3.20)

(3.80)

Discontinued operations

-

0.18

-

(0.63)

(1.46)

Total

(0.44)

(0.66)

(1.01)

(3.83)

(5.26)

 

* see note 5.

 

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.

 

At 30 June 2021, a total of 4,138,057 potential ordinary shares have not been included within the calculation of statutory diluted loss per share for the period (30 September 2020: 1,426,663) as they are anti-dilutive. These potential ordinary shares could dilute earnings/loss per share in the future.

9.  Loans and borrowings

 

The Group's borrowing facilities includes a USD 15m RCF provided by DNB Bank ASA (50%) and HSBC UK Bank PLC (50%). At 30 June 2021 the whole facility (USD 15m) was undrawn.

 

10.  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 penny each

 

 

 

Balance at 30 September 2020

667,685,612

668

399,601

Shares issued as contingent consideration for a previous acquisition

536,272

-

333

Exercise of share options

1,979,916

2

688

Balance at 30 June 2021

670,201,800

670

400,622

 

During the period contingent consideration totalling USD 450,000 (£333,000) became payable following the acquisition of aquaculture breeding programmes centred on shrimp from Centro de Investigación de la Acuicultura de Colombia Ceniacua on 11 August 2016. At the Group's discretion, the contingent consideration was paid in ordinary shares in the Group and the Group therefore issued 536,272 ordinary shares on 13 January 2021 to settle this liability.

During the period ended 30 June 2021, the Group issued a total of 1,979,916 shares of 0.1p each to certain employees of the Group relating to share options, of which 391,601 were exercised at a price of 0.1 pence, 1,497,933 were exercised at a price of 42.5 pence and 90,382 were exercised at a price of 58.5 pence.

 

11.  Alternative profit measures and other metrics

 

Management has presented the performance measures Adjusted EBITDA, Adjusted EBITDA before fair value movement in biological assets, 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, exceptional items and acquisition related expenditure and is shown on the Income Statement.

Adjusted EBITDA before fair value movements in biological assets, which is Adjusted EBITDA before the non-cash fair value movements in biological assets arising from their revaluation in line with International Accounting Standards.

Adjusted Operating Profit/Loss is operating loss before exceptional items including acquisition related items and amortisation and impairment of intangible assets excluding development costs as reconciled below.

Adjusted Profit/Loss Before Tax is earnings before tax, amortisation and impairment of intangibles assets excluding development costs, exceptional items and acquisition related expenditure 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.

 

 

11.  Alternative profit measures and other metrics (continued)

 

Reconciliation of Adjusted Operating Profit to Operating Loss/Profit

 

Continuing operations

All figures in £000's

 

Q3 2021
(unaudited)

Q3 2020 Restated*
(unaudited)

YTD Q3 2021
(unaudited)

YTD Q3 2020 Restated*
(unaudited)

FY 2020
(audited)

Revenue

 

28,336

24,149

87,801

80,326

105,565

Cost of sales

 

(13,024)

(13,131)

(41,646)

(38,288)

(50,603)

Gross profit

 

15,312

11,018

46,155

42,038

54,962

Research and development costs

 

(1,590)

(1,248)

(5,172)

(5,975)

(7,282)

Other operating costs

 

(9,329)

(7,455)

(28,026)

(26,427)

(33,337)

Depreciation and impairment

 

(1,555)

(1,567)

(5,050)

(4,656)

(6,640)

Amortisation of capitalised development costs

 

-

-

-

-

-

Share of (loss)/profit of equity accounted investees net of tax

 

35

(186)

(606)

205

150

Adjusted operating profit

 

2,873

562

7,301

5,185

7,853

Exceptional - restructuring, disposal and acquisition related items

 

(187)

(581)

(1,055)

(759)

(2,114)

Amortisation and impairment of intangible assets excluding development costs

 

(3,931)

(4,173)

(12,109)

(12,506)

(16,613)

Operating loss

 

(1,245)

(4,192)

(5,863)

(8,080)

(10,874)

 

* see note 5.

 

Reconciliation of Loss Before Taxation to Adjusted Profit/Loss Before Tax

 

Continuing operations

All figures in £000's

 

Q3 2021
(unaudited)

Q3 2020 Restated*
(unaudited)

YTD Q3 2021
(unaudited)

YTD Q3 2020 Restated*
(unaudited)

FY 2020
(audited)

 

 

 

 

 

 

 

Loss before taxation

 

(2,681)

(6,180)

(5,934)

(19,625)

(22,571)

Exceptional - restructuring, disposal and acquisition related items

 

187

581

1,055

759

2,114

Amortisation and impairment of intangible assets excluding development costs

 

3,931

4,173

12,109

12,506

16,613

Adjusted profit/(loss) before tax

 

1,437

(1,426)

7,230

(6,360)

(3,844)

 

* See note 5. 

 

Other Metrics

All figures in £000's

 

Q3 2021
(unaudited)

Q3 2020 Restated*
(unaudited)

YTD Q3 2021
(unaudited)

YTD Q3 2020 Restated*
(unaudited)

FY 2020
(audited)

Total R&D Investment

 

 

 

 

 

 

Research and development costs

 

 

 

 

 

 

- Continuing operations

 

1,590

1,248

5,172

5,975

7,282

- Discontinued operations

 

-

385

-

2,462

2,725

 

 

1,590

1,633

5,172

8,437

10,007

Internal capitalised development costs

 

1,281

954

3,462

2,959

4,583

Total R&D investment

 

2,871

2,587

8,634

11,396

14,590

 

* see note 5.
 

11.  Alternative profit measures and other metrics (continued)

 

All figures in £000's

 

 Q3 2021
(unaudited)

 Q3 2020 Restated*
(unaudited)

 YTD Q3 2021
(unaudited)

 YTD Q3 2020 Restated*
(unaudited)

 FY 2020
(audited)

Adjusted EBITDA excluding fair value movement in biological assets

 

 

 

 

 

 

Adjusted EBITDA

 

4,428

2,129

12,351

9,841

14,493

Exclude fair value movement

 

(368)

892

(2,327)

(1,698)

(3,253)

Adjusted EBITDA excluding fair value movement

 

4,060

3,021

10,024

8,143

11,240

 

* see note 5.

 

Liquidity

 

Following the refinancing in June 2019 a key financial covenant is a minimum liquidity of £10m, defined as cash plus undrawn facilities.

 

 

 

30 June 2021

All figures in £000's

 

(unaudited)

Cash and cash equivalents

 

43,187

Undrawn bank facility

 

10,864

 

 

54,051

 

12.  Net debt

Net debt is cash and cash equivalents less loans and borrowings excluding balances held for sale.

 

 

30 June 2021

30 June 2020


30 September 2020

All figures in £000's

 

(audited)

Cash and cash equivalents

 

43,187

54,492

71,605

Loans and borrowings (excluding lease liabilities) - current

 

(1,595)

(3,279)

(2,856)

Loans and borrowings (excluding lease liabilities) - non-current

 

(94,278)

(96,473)

(95,863)

Net debt excluding lease liabilities

 

(52,686)

(45,260)

(27,114)

Lease liabilities - current

 

(8,886)

(1,530)

(2,483)

Lease liabilities - non-current

 

(14,551)

(7,862)

(7,956)

Net debt

 

(37,553)

 

 

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