Q4 Results

RNS Number : 6167X

Benchmark Holdings PLC

20 December 2019

 

20 December 2019

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")

Q4 Results

(3 months ended 30 September 2019)

In compliance with the terms of its senior secured bond which require the Company to publish quarterly financial information, Benchmark, the aquaculture health, nutrition and genetics business, announces its unaudited results for the 3 months ended 30 September 2019 (the "period"). All Q4FY19 figures quoted in this announcement are based on unaudited accounts.

This morning the Company published its full year audited results for the 12 months ended 30 September 2019 which can be found on https://www.benchmarkplc.com/investors

£m	Q4 2019 unaudited	Q42018 unaudited	%	YTD 2019 (Full year)	Restated* YTD 2018 (Full year)
Adjusted
Adjusted EBITDA2 from continuing operations	7.5	7.0	6.8	12.1	19.1
EBITDA1 from continuing operations	6.9	6.7	4.2	11.5	17.8
Adjusted Operating Profit3 from continuing operations	3.7	5.5	(31.4)	3.6	14.2
Statutory
Revenue from continuing operations	37.0	33.6	10.0	127.3	131.6
Loss before tax from continuing operations	(53.7)	(1.0)		(73.3)	(8.4)
(Loss)/profit for the period from continuing operations	(53.2)	(1.1)		(73.3)	0.5
Loss for the period - total incl. discontinued operations	(61.5)	(2.3)		(83.1)	(4.4)
Basic loss per share (p)	(11.07)	(0.51)		(15.03)	(0.94)
Net debt4	(87.1)	(55.7)		(87.1)	(55.7)

* 2018 numbers have been restated to reflect the ongoing continuing business.  Knowledge Services Division and the veterinary services business within the Animal Health Division have been moved to discontinued operations in line with IFRS 5.

Q4 Overview

·    As announced in the trading update of 29 November, the Company has accelerated its programme of disposals and restructuring, and as a result, certain activities, primarily the Knowledge Services division and the veterinary services business in Animal Health, have been classified as discontinued operations.

·    Revenue from continuing operations of £37.0m was 10% above the prior year (Q4 2018: £33.6m) driven by strong growth in Genetics versus the same period last year.

·    Adjusted EBITDA² from continuing operations was up 7% at £7.5m (Q4 2018: £7.0m), driven by increased revenues in the period vs the prior year.

·    Adjusted EBITDA² margin 20% (Q4 2018: 21%) with growth in gross profit offset by step up in operating costs

·    Impairment of acquired intangibles in Advanced Nutrition of £44.8m as a result of a reduction in forecasts due to a material change in market outlook (impairing INVE).

·    Impairment of tangible and intangible assets related to discontinued operations of £6.9m

·    Statutory loss for the period including discontinued operations of £61.5m (2018: loss of £2.3m), primarily as a result of the impairments (including discontinued operations); as well as an increase in depreciation, amortisation, finance costs and exceptional costs

·    The weakness in the shrimp and sea bass/sea bream markets continued during the period.

Q4 Divisional overview

·    Genetics reported revenue growth of 60% against Q4 last year as a result of higher salmon egg sales supported by the Salten facility coming onstream and the export ban of all salmon eggs from Norway which benefitted StofnFiskur in the period. Revenues in the quarter were £10.0m (2018: £6.2m). Adjusted EBITDA for the division was £4.3m (Q42018: £3.3m).

·    Advanced Nutrition delivered revenues of £22.3m (Q42018: £21.5m), as a result of higher GSL Artemia volumes, the launch of D-FENSE vibrio inhibiting Artemia in Vietnam and higher volumes in Health, partly offset by lower volumes of non GSL eggs and lower Diets sales mainly in Greece. Adjusted EBITDA was 18% up at £4.5m (Q42018: £3.8m) helped by one off income from the settlement of infringement cases and the profit on disposal of a property in China which together totalled £1.1m.

·    Revenues in Animal Health (including Discontinued Operations of veterinary and diagnostics) in Q4 were £6.6m, 13% below the prior year (Q42018: £7.6m) as a result of lower contribution from field trials partially offset by higher toll manufacturing contribution (timing) and higher Salmosan sales and Adjusted EBITDA was a loss of £0.8m (Q42018: loss £0.4m).

Full Year Overview

This morning the Company published its full year audited results for the 12 months ended 30 September 2019 which can be found on https://www.benchmarkplc.com

·    Revenues from Continuing Operations of £127.3m, 3% below prior year (2018: £131.6m)

·    Total revenues including Continuing and Discontinued Operations of £148.7m, down 2% (2018: £151.5m) 

·    Adjusted EBITDA² from Continuing Operations of £12.1m (2018: £19.1m)

·    Total Adjusted EBITDA² including Continuing and Discontinued Operations of £13.7m (2018: £17.0m)

·    Total R&D investment of £20.5m (2018: £19.2m) driven by products close to launch and investment in Genetics and Advanced Nutrition to maintain leadership in our core markets

·    Net debt³ at period end of £87.1m (2018: £55.7m) as a result of investment in R&D and an increase in working capital including that related to growth in biological assets in the new production facilities

·    Year end liquidity⁵ was £28.2m, well within the covenant threshold

·    Impairment of acquired intangibles in Advanced Nutrition of £44.8m as a result of a reduction in forecasts due to a material change in market outlook (impairing INVE).

·    Impairment of tangible and intangible assets related to discontinued operations of £7.5m

·    Current trading:  Weakness in the shrimp and sea bass/sea bream markets continues and while some recovery is expected, it is unlikely to recover to 2018 levels in 2020. Overall the Company expects to deliver underlying Adjusted EBITDA from Continuing Operations (before one-off other income) in line with this year in FY2020 and to maintain sufficient liquidity to execute its product development programme and support its Continuing Operations after taking account of the expected timing and proceeds from the planned disposals and cost reductions

(1) EBITDA is earnings before interest, tax, depreciation and amortisation and impairment.

(2) Adjusted EBITDA is EBITDA¹, before exceptional items and acquisition related expenditure.

(3) Adjusted Operating Profit is operating loss before exceptional items including acquisition related items and amortisation of intangible assets excluding development costs

(4) Net debt is cash and cash equivalents less loans and borrowings.

(5) Liquidity is defined as undrawn facilities plus cash balances.

Progress towards commercial launch of major products

·    Next generation sea lice treatment (product candidate BMK08) continued to show c.99% efficacy and excellent environmental and animal welfare credentials. In combination with CleanTreat®, BMK08 is potentially transformative, addressing one of the largest industry challenges.  

·    Production of specific pathogen resistant (SPR) shrimp commenced in Florida for export into Asia. Entered into agreement with two partners in Thailand for local multiplication and distribution.

Growth in core markets

·    Opening of state of the art, land-based salmon egg facility in Norway. Ramp-up of production according to plan

·    Establishment of wholly owned local production in Chile following dissolution of JV with AquaChile. Recovery of original investment which will be reinvested in the Chilean operation

·    Increased capacity at production plant in Thailand to meet growing long term demand for the Company's specialist diets

Continued Innovation

·    Winner of Aquaculture Innovation Award for CleanTreat®, the Company's breakthrough purification system which removes medicinal residues from bath treatments

·    Launch of a new Artemia product (D-FENSE) which reduces the risk of infection from vibrio, one of the main industry challenges affecting shrimp and seabass/seabream

Q4 Management Commentary

Q4 saw a continuation of the trends in Q3, with weak shrimp and Mediterranean seabass/seabream markets having affected sales volumes in Advanced Nutrition; Animal Health delivered lower than anticipated contribution from trials of pre-licence products and Genetics performed well with continued growth in salmon egg sales.

During the period, the Company accelerated its programme of disposals and restructuring, and certain activities were classified as discontinued, primarily the Knowledge Services businesses and the veterinary and diagnostics services business in Animal Health.

Compared to the prior year, the results from Continuing Operations in the quarter reflected good growth in salmon genetics sales, a slightly higher revenue from Advanced Nutrition related to timing of sales, and lower contribution from trials in Animal Health. Revenue from continuing operations was £37.0m, 10% above the prior year (Q4 2018: £33.6m). Adjusted EBITDA from continuing operations was up 7% at £7.5m (Q4 2018: £7.0m), driven by higher revenues.

The weak market conditions in Advanced Nutrition resulted in a significant impairment of goodwill on acquisition of INVE of £44.8m (2018: £nil).  Furthermore, there were other impairment charges on assets within discontinued operations of £7.5m (2018: £nil).  As a consequence, the statutory loss for the period including discontinued operations was £61.5m (2018: loss £2.3m), reflecting an increase in depreciation, amortisation, finance costs and exceptional costs.

In addition, Peter George took over as Executive Chairman following Malcolm Pye's resignation as CEO in August 2019. Septima Maguire joined the Company post period end in November 2019 and was appointed CFO on 20 December 2019.

Advanced Nutrition

Advanced Nutrition delivered revenues of £22.3m (Q42018: £21.5m), as a result of higher GSL Artemia volumes, the launch of D-FENSE vibrio inhibiting Artemia in Vietnam and higher volumes in Health partly offset by lower volumes of non GSL eggs and lower Diets sales mainly in Greece. Adjusted EBITDA was 18% up at £4.5m (Q42018: £3.8m) helped by one off income from the settlement of infringement cases and the profit on disposal of a property in China which together totalled £1.1m.

Operationally, good progress was made in the launch of D-FENSE vibrio inhibiting Artemia across markets, including ongoing trials in several key markets, and first significant sales delivered. The Company held a customer event in Crete, with seminars attended by representatives from more than 90% of all Mediterranean seabass and seabream hatcheries.

Genetics

Genetics revenues in Q4 were £10.0m, 60% above the prior year (2018: £6.2m) driven by higher salmon egg sales as a result of the Salten facility coming onstream and the countrywide export ban of salmon eggs from Norway in the period which benefitted StofnFiskur.

Gross profit in the period was favourably impacted by an increase in the fair value of biological assets. Adjusted EBITDA for the division was £4.3m (Q42018: £3.3m) with the Adjusted EBITDA margin affected by higher operational costs compared to the prior year from new ventures including Benchmark Chile, Salten and the new SPR shrimp operation in Florida. Additionally, we incurred legal fees in the termination of the joint venture and the establishment of the wholly owned subsidiary in Chile in Q4 2019.

Operationally, for the first time the Company was able to supply eggs from its SalmoBreed strain throughout the summer thanks to our new biosecure facility in Salten.

Animal Health

Revenues in Animal Health (including Discontinued Operations of veterinary and diagnostics) in Q4 were £6.6m, 13% below the prior year (Q42018: £7.6m) as a result of lower contribution from field trials partially offset by higher toll manufacturing contribution (timing) and higher Salmosan sales and Adjusted EBITDA was a loss of £0.8m (Q42018: loss £0.4m).

Operationally, during the period the Company completed the fourth set of field trials in Norway with BMK08, achieving further efficiency gains for CleanTreat® which won the Aqua-Nor Innovation award in August 2019.

Activities in Knowledge Services were classified as discontinued.

Full Year Management Commentary

Revenue and Adjusted EBITDA

Group

The Advanced Nutrition division experienced very challenging market conditions in 2019 that led to a reduction in revenue, which was partially offset by growth in Genetics and as a result Group revenue from continuing operations decreased by 3% to £127.3m in the year (2018: £131.6m). The reduction in sales meant that Gross Profit from continuing operations decreased to £66.0m (2018: £68.5m) and Gross Margin remaining steady at 52% (2018: 52%) as prices remained relatively resilient albeit some price weakness was experienced in certain live feed products.  In addition, there was a reduced contribution in Health from commercial scale field trials.

Total Group operating costs of continuing operations increased by 10% to £40.7m (2018: £37.0m). This increase reflects the operating costs of new production sites as they come on stream, increased costs related to currency transfers and a full year impact of increased management headcount to strengthen the Plc and Operations boards. Opex was reduced by other income of £1.8m (2018: £1.0m), mainly from R&D expenditure credits and proceeds from successful IP infringement cases. Expensed R&D of continuing operations increased to £12.8m (2018: £12.0m) with the increase being focussed on protecting the market positions of the more mature Genetics and Advanced Nutrition divisions as well as progressing the main pipeline opportunities in Animal Health. 

Adjusted EBITDA from continuing operations decreased by 37% to £12.1m (2018: £19.1m) with the drop driven by lower sales in Advanced Nutrition and lower contribution from commercial scale field trials, offset by an increase in sales and margins in Genetics and one-off other income.  Adjusted Operating Profit from continuing operations decreased to £3.6m (2018: £14.2m) due to the lower trading result combined with increased depreciation charges reflecting the contribution of the recently constructed production assets.

Total revenues (including discontinued operations) were £148.7m, down 2% (2018: £151.5m). Using the same foreign exchange rates experienced in 2018 (constant currency¹) revenue from continuing operations decreased by 3%. Total Adjusted EBITDA (including discontinued operations) decreased by 19% to £13.7m (2018: £17.0m).

Advanced Nutrition

Revenue of £76.8m was down 10% (2018: £85.7m) as a result of weak markets and aggressive price competition from CIS Artemia producers after a strong harvest. By product our live feed products were the most affected with volumes and revenues (in USD) down 23%, whilst specialist diets and health showed relative resilience with revenues (in USD) down 5% and 4%, respectively.

Strategically we maintained our prices and our premium positioning, which reflect our technical superiority. The weak demand environment did result in the division absorbing some increases in cost of sales and, while operating costs were tightly controlled and benefitted from the profit on sale of a property and the proceeds of IP infringement settlements, Advanced Nutrition reported a reduced Adjusted EBITDA result of £15.4m (2018: £21.6m) with a margin of 20% (2018: 25%). The weaker market outlook has resulted in an impairment of £44.8m to the carrying values of goodwill in the INVE business.

Genetics

Good growth in revenue and Adjusted EBITDA driven by an increase in salmon egg volumes (+16%) and prices reflecting our continued innovation and launch of new traits. Revenues of £39.7m were up 11% (2018: £35.8m), ahead of growth in the sector.  The Company's ongoing innovation together with its investment in quality, biosecurity and availability of supply through our new production facilities will support future growth.  The dissolution of the joint venture with AquaChile is now complete including transfer of ownership of the Ensenada salmon egg hatchery which will form the platform to establish Chilean production. The valuation of biological assets increased by £8.3m (2018: £4.0m) driven by the growth in sales in the year, the strong order book at the year end and the increasing output potential of the new production sites. As the division's new shrimp genetics get closer to market launch the costs of development were capitalised for the first time, with £1.5m capitalised in the year.  These factors supported growth in gross margins to 64% (2018: 58%).  Operating costs increased in line with the increase in production capacity in salmon and shrimp.  As a result, the division delivered strong Adjusted EBITDA growth to £10.1m (2018: £7.9m) with Adjusted EBITDA margin rising to 25% (2018: 22%). 

Animal Health

Revenue of £17.7m up 10% (2018: £16.2m). Growth was driven by an increase in sales of Salmosan, the Company's current sea lice treatment. This reflects the challenge of high sea lice levels, particularly in Chile.  The Company continued to generate a contribution from commercial scale field trials of its next generation sea lice treatment (BMK08), although at a lower level than the prior year, as we approach commercial launch and the programme of trials in our main market reaches conclusion. Revenues from veterinary and diagnostics services also grew during the year.

Total R&D investment in the division was £11.2m (2018: £12.2m), of which £5.7m was expensed (2018: £5.6m). During the year the Company began a programme to reduce overall R&D spend while continuing to progress the main pipeline opportunities. This involved a streamlining of external R&D spend and a review of in-house trials facilities. The impact from this effort will come through from 2020 onwards.

Adjusted EBITDA loss narrowed for the division to £10.2m (2018: loss of £11.0m).

Knowledge Services

All operations of the division are included within discontinued operations. Revenue in this division in 2019 was £15.9m (2018: £15.8m) with associated Adjusted EBITDA of £1.3m (2018: £0.2m).  Revenue was flat with a particularly strong performance in veterinary training offset by reduced sales in other businesses. Despite being broadly complementary to Benchmark's core activities, the Knowledge Services division is not integral to the Group's long-term strategy. Therefore, the disposal of the component businesses is part of the programme of structural efficiencies. The Company is in discussions with a number of interested parties and further announcements will be made in due course.

Exceptional items

Items that are material because of their nature 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. Exceptional expenses related to continuing operations of £0.6m (2018: £1.2m) derive from the changes in Group management.  Exceptional expenses relating to discontinued operations of £0.7m (2018: £nil) include costs of closure of operations in the Knowledge Services division.

Depreciation, amortisation and impairments

Depreciation and impairments related to continuing operations of £8.5m (2018: £4.9m) with the increase principally arising from new production facilities coming onstream.

Amortisation and impairments related to continuing operations of £64.3m (2018: £16.8m) with the increase being due to impairments in the carrying value of goodwill related to the INVE business driven by the change in market outlook.

Net finance costs

During the year the Company completed a new senior secured floating rate bond issue of NOK 850m (USD 95.0m equivalent). The bond which matures in June 2023, will be listed on the Oslo market and has a coupon equivalent to the three months Norwegian Interbank Offered Rate + 5.25% p.a. with quarterly interest payments. This new bond issue was applied to refinance Benchmark's previous USD 90m revolving credit facility. In addition, a USD 15.0m revolving credit facility was provided by DNB Bank ASA (50%) and HSBC UK Bank PLC (50%). The revolving credit facility incurs interest in the range of 3.0 to 3.5% over London Interbank Offered Rate.  The Group's other ring-fenced facilities remained in place including facilities totalling NOK 291m related to the funding of the new salmon egg production facility in Norway.  Interest on these other debt facilities ranges between 2.65% above Norwegian base rates and 5%.

The Group incurred net finance costs from continuing operations of £12.1m during the year (2018: £4.6m). Included within this was interest charged on the Group's interest-bearing debt facilities of £6.0m (2018: £2.4m) reflecting a higher level of net debt during the year and the higher coupon post refinancing. Further, a foreign exchange loss of £4.6m arose due to the movement in exchange rates and there was a charge of £1.7m (2018: £nil) relating to the fair value change in the cross currency hedge taken out during the year.

Statutory loss before tax

The loss before tax from continuing operations for the year at £73.3m is higher than the prior year (2018: loss of £8.4m) due to the impact of the reduced trading result; higher depreciation, amortisation, and in particular impairment charges; and the increase in finance costs and exceptional costs; all as outlined above.

Taxation

There was a tax credit related to continuing operations in the period of £13,000 (2018: credit of £8.9m), mainly due to overseas tax charges in the Genetics division of £1.5m and in the Advanced Nutrition division of £2.6m, offset by deferred tax credits on intangible assets mainly arising on consolidation from acquisitions (the 2018 credit principally related to a reduction in the corporation tax rate in Belgium from 34% to 25%), recognition of a deferred tax asset on losses expected to be recovered.

Loss for the year

The loss for the year from continuing operations was £73.3m (2018: profit of £0.5m) and from discontinued operations the loss was £9.8m (2018: loss of £4.9m).

Earnings per share

Basic loss and diluted loss per share were both -15.03p (2018: loss per share -0.94p). The movement year on year is due to the reduced result for the year as noted above.

Dividends

No dividends have been paid or proposed in the year (2018: £nil) and the Board is not recommending a final dividend in respect of the year ended 30 September 2019.

Biological assets

A feature of the Group's net assets is its investment in biological assets, which under IAS 41 are stated at fair value.  At 30 September 2019, the carrying value of biological assets was £28.5m (2018: £20.4m). The movement in the overall carrying value of biological assets is due principally to the increase in sales of and future orders for the Company's salmon eggs as well as expansion of own production.

Intangibles

Capitalised R&D increased by £0.5m to £7.7m (2018: £7.2m). R&D costs related to products that are close to commercial launch have to be capitalised when they meet the requirements set out under IFRS. Increased activities related to trials of and progress with the marketing authorisation application for BMK08 pushed capitalised development costs higher, together with the first time capitalisation of the new shrimp genetics.  As Benchmark goes through a period of an increasing number of new products approaching launch this capitalisation will be an ongoing feature in the mid-term.

The dissolution of the genetics joint venture in Chile, and the consequent transfer of assets to Benchmark to part satisfy return of the original investment, led to an intangible addition representing the IP inherent within the breeding programme in Chile.

The impairment of intangible assets during the year of £47.6m principally relates to impairment of the goodwill from the acquisition of INVE where the change in market outlook has led to a reduction in value of the discounted cash flows for the Advanced Nutrition division.

Capital expenditure

Tangible fixed asset additions of £12.5m (2018: £25.1m) includes £1.0m cash investment in the final phase of the construction of the new salmon egg production facility in Norway, £4.1m initial investment in the new salmon egg production facility in Chile (transferred on dissolution of the previous JV) and £2.2m on improvements to salmon slaughter facilities in Iceland that are a vital part of the egg production process.

Cash flow

Net cash flow from operations was an outflow of £9.2m (2018: outflow of £3.7m) principally due to working capital increases: in Advanced Nutrition from purchase commitments with key live feed suppliers and in general the phasing of sales towards year end in general. In addition, the build of biological assets at new genetics production facilities resulted in an increased outflow in working capital of £8.6m (2018: outflow of £4.1m).

Total outflows to capex of £15.8m (2018: £32.7m) were substantially reduced because investment in the new salmon egg facility concluded at the beginning of the year.

Other cashflow items included the payment of the deferred consideration of £7.0m for the investment in the joint venture with AquaChile which was completed in 2018 and the initial consideration received on the subsequent dissolution of that joint venture in 2019 of £5.9m.  The balance of the consideration for the dissolution of the joint venture of £6.9m was received post year end.

As a result of the above free cash flow was an outflow of £23.9m (2018: outflow of £36.2m). Net proceeds from increased borrowings of £21.4m were used to fund this outflow.

Cash at the period end stood at £16.1m (2018: £24.1m).

Liquidity and net debt

The Group's finance function is responsible for sourcing and structuring borrowing requirements.

As detailed under net finance costs above, during the year the Company completed a refinancing including a new senior secured floating rate bond issue of NOK 850m (USD 95.0m equivalent) and a USD 15.0m revolving credit facility. The Group's other ring-fenced facilities remained in place including facilities totalling NOK 291m related to the funding of the new salmon egg production facility in Norway. 

The Group had £103.2m in bank borrowings at the end of the year (2018: £79.7m). Reported debt includes £27.1m in relation to the funding of the Group's new salmon egg production facility in Norway. This is ring-fenced debt within SalmoBreed Salten without recourse to the rest of the Group. At the year end a maximum of £12.2m was available on the Group's super senior revolving credit facility, of this £nil had been drawn. Net debt increased to £87.1m during the year (2018: £55.7m) as investment in working capital expanded and available long-term capital was invested in R&D and production capacity.

As outlined in the Basis of Preparation in Note 1 to the financial statements, there is an information undertaking within the terms of the NOK bond that requires the Company to publish quarterly financial statements within 60 days of the quarter end. The Company did not satisfy this requirement for the quarter to 30 September 2019 because the year end audit was not sufficiently complete for the publication of what would have effectively been deemed a Preliminary Announcement by reference to the UK Listing Rules. The NOK bond terms include permission for the Company to publish the quarterly financials within 20 business days of the end of the initial 60 day period.The Company satisfied the requirements of the NOK bond terms by announcing its quarterly financials simultaneously with the announcement of its preliminary results for the year ended 30 September 2019 on 20 December 2019.

The facilities combined with the year end cash balance of £16.1m means the Group had total liquidity of £28.2m.  This, in conjunction with the expected proceeds from the disposal of non-core businesses and the reduction in cash outflows resulting from closing certain non-core activities is expected by the Directors to provide the Group with sufficient liquidity to fund continuing growth and provide adequate headroom.

Going concern

The accounts for 2019 have been prepared on a going concern basis. The forecast projections of the Group's performance for the period to September 2021 have been reviewed by the Directors and the Board has concluded that, while there is a material uncertainty that may cast significant doubt upon the ability to continue as a going concern, subject to the successful disposal of the discontinued operations in the near-term or, in the absence of this, to appropriate actions being taken to significantly reduce investment in and costs related to the product pipeline or further funding being sought, the Group should be able to continue in operation and meet its liabilities as they fall due over the period considered.

Unaudited Quarterly Financial Statements

Consolidated Income Statement

All figures in £000's	Notes	Q4 2019 (unaudited)	Q4 2018 (unaudited)	YTD 2019 (audited)	YTD 2018 Restated* (audited)
Revenue		36,978	33,618	127,343	131,643
Cost of sales		(15,344)	(14,085)	(61,348)	(63,150)
Gross profit		21,634	19,533	65,995	68,493
Research and development costs		(3,602)	(3,505)	(12,830)	(12,040)
Other operating costs		(10,577)	(8,845)	(40,700)	(37,012)
Share of loss of equity-accounted investees, net of tax		18	(189)	(414)	(362)
Adjusted EBITDA²		7,473	6,994	12,051	19,079
Exceptional - restructuring/acquisition related items		(530)	(333)	(581)	(1,239)
EBITDA¹		6,943	6,661	11,470	17,840
Depreciation and impairment		(3,726)	(1,533)	(8,466)	(4,869)
Amortisation and impairment		(51,486)	(4,252)	(64,254)	(16,802)
Operating (loss) / profit		(48,269)	876	(61,250)	(3,831)
Finance cost		(5,489)	(2,098)	(12,422)	(4,927)
Finance income		81	214	368	332
Loss before taxation		(53,677)	(1,008)	(73,304)	(8,426)
Tax on loss		456	(131)	13	8,906
(Loss)/profit from continuing operations		(53,221)	(1,139)	(73,291)	480
Discontinued operations
Loss from discontinued operations, net of tax		(8,278)	(1,156)	(9,789)	(4,869)
		(61,499)	(2,295)	(83,080)	(4,389)
Loss for the year attributable to:
- Owners of the parent		(61,809)	(2,837)	(83,857)	(5,009)
- Non-controlling interest		310	542	777	620
		(61,499)	(2,295)	(83,080)	(4,389)
Earnings per share
Basic loss per share (pence)		(11.07)	(0.51)	(15.03)	(0.94)
Diluted loss per share (pence)		(11.07)	(0.51)	(15.03)	(0.94)
Earnings per share - continuing operations
Basic loss per share (pence)		(9.59)	(0.30)	(13.28)	(0.03)
Diluted loss per share (pence)		(9.59)	(0.30)	(13.28)	(0.03)
Adjusted EBITDA from continuing operations		7,473	6,994	12,051	19,079
Adjusted EBITDA from discontinued operations		(99)	(911)	1,674	(2,061)
Total Adjusted EBITDA		7,374	6,083	13,725	17,018

1 EBITDA - Earnings before interest, tax, depreciation and amortisation

2 Adjusted EBITDA - EBITDA before exceptional and acquisition related items

* 2018 numbers have been restated to reflect the ongoing continuing business. Knowledge Services Division and the veterinary services business within the Animal Health Division have been moved to discontinued operations in line with IFRS 5.

Consolidated Statement of Comprehensive Income

All figures in £000's		Q4 2019 (unaudited)	Q4 2018 (unaudited)	YTD 2019 (audited)	YTD 2018 (audited)
Loss for the period		(61,499)	(2,295)	(83,080)	(4,389)
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss
Foreign exchange translation differences		9,424	2,505	13,919	7,624
Cash flow hedges - changes in fair value		(2,615)	-	(3,549)	-
Cash flow hedges - reclassified to profit or loss		(10)	-	(17)	-
Total comprehensive income for the period		(54,700)	210	(72,727)	3,235
Total comprehensive income for the period attributable to:
- Owners of the parent		(54,924)	(313)	(73,174)	2,546
- Non-controlling interest		224	523	447	689
		(54,700)	210	(72,727)	3,235
		.
Total comprehensive income for the period attributable to owners of the parent:
- Continuing operations		(47,186)	534	(63,188)	7,048
- Discontinued operations		(7,738)	(847)	(9,986)	(4,502)
		(54,924)	(313)	(73,174)	2,546

Consolidated Balance Sheet

as at 30 September 2019

		30 September 2019	30 September 2018
All figures in £000's		(audited)	(audited)
Assets
Property, plant and equipment		88,900	99,527
Intangible assets		275,744	325,386
Equity-accounted investees		3,453	17,457
Other investments		25	29
Biological and agricultural assets		12,469	8,502
Trade and other receivables		-	4,145
Non-current assets		380,591	455,046
Inventories		22,609	20,483
Biological and agricultural assets		16,024	11,892
Trade and other receivables		52,136	41,337
Cash and cash equivalents		16,051	24,090
		106,820	97,802
Assets held for sale		15,970	-
Current assets		122,790	97,802
Total assets		503,381	552,848
Liabilities
Trade and other payables		(35,235)	(45,680)
Loans and borrowings		(3,231)	(898)
Corporation tax liability		(2,703)	(2,629)
Provisions		(404)	(70)
		(41,573)	(49,277)
Liabilities directly associated with the assets held for sale		(10,634)	-
Current liabilities		(52,207)	(49,277)
Loans and borrowings		(99,961)	(78,868)
Other payables		(2,004)	(1,219)
Deferred tax		(38,743)	(41,637)
Non-current liabilities		(140,708)	(121,724)
Total liabilities		(192,915)	(171,001)
Net assets		310,466	381,847
Issued capital and reserves attributable to owners of the parent
Share capital		559	557
Additional paid-in capital		358,044	357,894
Capital redemption reserve		5	5
Retained earnings		(110,916)	(28,240)
Hedging reserve		(3,566)	-
Foreign exchange reserve		60,202	45,953
Equity attributable to owners of the parent		304,328	376,169
Non-controlling interest		6,138	5,678
Total equity and reserves		310,466	381,847

Consolidated Statement of Changes in Equity

for the year ended 30 September 2019

All figures in £000's	Share capital	Share premium reserve	Other reserves	Hedging reserve	Retained  earnings	Total attributable  to equity holders of parent	Non- controlling interest	Total equity
As at 30 September 2017 (audited)	522	339,431	38,403	-	(24,742)	353,614	4,971	358,585
Comprehensive income for the year
(Loss)/profit for the year	-	-	-	-	(5,009)	(5,009)	620	(4,389)
Other comprehensive income	-	-	7,555	-	-	7,555	69	7,624
Total comprehensive income for the year	-	-	7,555	-	(5,009)	2,546	689	3,235
Contributions by and distributions to owners
Share issue	35	18,463	-	-	-	18,498	-	18,498
Share based payment	-	-	-	-	1,511	1,511	-	1,511
Total contributions by and distributions to owners	35	18,463	-	-	1,511	20,009	-	20,009
Changes in ownership
Acquisition of NCI without a change in control	-	-	-	-	-	-	18	18
Total changes in ownership interests	-	-	-	-	-	-	18	18
Total transactions with owners of the Company	35	18,463	-	-	1,511	20,009	18	20,027
As at 30 September 2018 (audited)	557	357,894	45,958	-	(28,240)	376,169	5,678	381,847
Comprehensive income for the period
(Loss)/profit for the period	-	-	-	-	(83,857)	(83,857)	777	(83,080)
Other comprehensive income	-	-	14,249	(3,566)	-	10,683	(330)	10,353
Total comprehensive income for the period	-	-	14,249	(3,566)	(83,857)	(73,174)	447	(72,727)
Contributions by and distributions to owners
Share issue	2	150	-	-	-	152	-	152
Share based payment	-	-	-	-	1,181	1,181	-	1,181
Total contributions by and distributions to owners	2	150	-	-	1,181	1,333	-	1,333
Changes in ownership
Disposal of subsidiary with NCI	-	-	-	-	-	-	13	13
Total changes in ownership interests	-	-	-	-	-	-	13	13
Total transactions with owners of the Company	2	150	-	-	1,181	1,333	13	1,346
As at 30 September 2019 (audited)	559	358,044	60,207	(3,566)	(110,916)	304,328	6,138	310,466

Consolidated Statement of Cash Flows

All figures in £000's		YTD 2019 (audited)	YTD 2018 (audited)
Cash flows from operating activities
Loss for the period		(83,080)	(4,389)
Adjustments for:
Depreciation and impairment of property, plant and equipment		17,227	6,841
Amortisation and impairment of intangible fixed assets		66,087	18,002
Loss on sale of property, plant and equipment		(838)	8
Finance income		(368)	(332)
Finance costs		7,773	2,432
Other adjustments for non-cash items		68	(1,931)
Share of profit of equity-accounted investees, net of tax		414	362
Foreign exchange losses		5,620	2,609
Share based payment expense		1,181	1,511
Tax credit		111	(9,270)
		14,195	15,843
Increase in trade and other receivables		(12,516)	(4,355)
Increase in inventories		(2,273)	(815)
Increase in biological and agricultural assets		(8,593)	(4,102)
Increase/(decrease) in trade and other payables		3,968	(4,026)
Increase/(decrease) in provisions		261	(388)
		(4,958)	2,157
Income taxes paid		(4,253)	(5,898)
Net cash flows used in operating activities		(9,211)	(3,741)
Investing activities
Acquisition of subsidiaries, net of cash acquired		(7)	-
Purchase of investments		(7,020)	(6,356)
Receipts from disposal of investments		5,942	-
Purchases of property, plant and equipment		(7,850)	(25,072)
Purchase of intangibles		(7,964)	(7,581)
Proceeds from sale of fixed assets		1,131	233
Interest received		447	261
Net cash flows used in investing activities		(15,321)	(38,515)
Financing activities
Proceeds of share issues		2	18,498
Proceeds from bank or other borrowings		92,578	41,206
Acquisition of NCI		-	(33)
Repayment of bank or other borrowings		(71,224)	(5,815)
Cash advances and loans made to other parties		-	(4,076)
Interest and finance charges paid		(5,366)	(2,442)
Payments to finance lease creditors		(5)	(218)
Net cash inflow from financing activities		15,985	47,120
Net (decrease)/increase in cash and cash equivalents		(8,547)	4,864
Cash and cash equivalents at beginning of period		24,090	18,779
Effect of movements in exchange rate		508	447
Cash and cash equivalents at end of period		16,051	24,090

Notes

1.   Basis of preparation

These unaudited quarterly results have been prepared on the basis of the accounting policies which are to be set out in Benchmark Holdings Plc's annual report and financial statements for the year ended 30 September 2019.

The consolidated financial statements of the Group for the year ended 30 September 2019 were prepared in accordance with International Financial Reporting Standards ("IFRSs") as adopted for use in the EU ("adopted IFRSs") and applicable law.

Whilst the financial information included in this preliminary interim statement has been prepared on the basis of the requirements of IFRSs in issue, as adopted by the European Union and effective at 30 September 2019, this statement does not itself contain sufficient information to comply with IFRS.

The financial information set out above does not constitute the company's statutory accounts for the years ended 30 September 2019 or 2018. Statutory accounts for 2018 have been delivered to the registrar of companies, and those for 2019 will be delivered in due course. The auditor has reported on those accounts. Their report for 2019 was (i) unqualified, (ii) contains a material uncertainty in respect of going concern to which the auditor drew attention by way of emphasis without modifying their report and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006. Their report for the accounts of 2018 was (i) unqualified, (ii) did not include a reference of any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

The financial statements are prepared on the going concern basis.

As at 30 September 2019 the Group had net assets of £310.5m (2018: £381.8m), including cash of £16.1m (2018: £24.1m) as set out in the consolidated balance sheet.  The Group made a loss for the year of £83.1m (2018: £4.4m).  As at 30 September 2019 the Company had net assets of £304.2m (2018: £341.5m), including cash of £0.8m (2018: £2.3m. The Company made a loss for the year of £35.2m (2018: £8.6m).

The Group was refinanced during the year, and on 24 June 2019 a new four-year senior secured floating rate listed bond issue of NOK 850m was completed and a new three and a half year USD 15m revolving credit facility agreed.  As at 20 December total borrowings from the Group's facilities were £102.3m and the most recent month end cash reserves at the end of November were £19.8m.

The Directors have prepared base and sensitised cash flow forecasts for the Group covering the period to September 2021, including forecast compliance with the covenants specified in the new borrowings.  Significant elements of the Group continue to be in a growth and investment phase, including the final stages of obtaining Marketing Authority approval for its latest sea lice treatment and the growth and expansion of its genetics business into inland salmon egg production and disease resistant shrimp genetics while riding out the headwinds in the shrimp market. The Directors have taken the decision to divest from a number of smaller or non-core businesses in the Group to help fund this ongoing investment and a structural efficiencies programme is well underway to that end. The business forecasts therefore include key assumptions on the timing and value of these business disposals and asset realisations, as well as other trading uncertainties common in businesses engaged in the aquaculture and research and development industries. The trading uncertainties include the timing of the grant of full licences for the new sea lice treatment, the pace of recovery in global shrimp markets, achieving anticipated growth targets in core Advanced Nutrition and Genetics markets, the supply and pricing of key raw materials, and potential distribution partner agreements. However good progress has been made with all of the disposals subject to the non-core divestment programme, with several reaching the non-binding offer stage and offers received reflecting a high level of interest.

The Directors have considered reasonably possible downside sensitivity scenarios, including mitigating actions within their control, should these occur around deferring and reducing non-essential capital and revenue expenditure and working capital management. These forecast cash flows, considering the ability and intention of the directors to implement mitigating actions should they be required, provide sufficient headroom in the forecast period. However, should the reasonably possible downside sensitivities from trading occur, alongside a significant delay or a reduction in the expected disposal proceeds below the low end of the valuation range in some of the larger business disposals, then this could remove all available headroom. In this event, either further financing would have to be sought or additional structural efficiency initiatives be identified and pursued.  In the eventuality that further financing is required, the Directors believe that relationships with funders and the expected returns available on the growth areas within the Group in which ongoing investment is being made are sufficiently strong and attractive for the Group to be able to secure adequate additional funding should it be required.

Based on their assessment, the Directors believe it remains appropriate to prepare the financial statements on a going concern basis.  However, these circumstances represent a material uncertainty that may cast significant doubt on the Group's and Company's ability to continue as a going concern and therefore to continue realising their assets and discharging its liabilities in the normal course of business. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

This information has been approved for issue by the Board of Directors of Benchmark Holdings plc, a company domiciled and incorporated in the United Kingdom.

2    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 as follows:

·      Animal Health Division - provides veterinary services, environmental services diagnostics and animal health products to global aquaculture, and manufactures licenced veterinary vaccines and vaccine components;

·      Benchmark Genetics Division - 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 Animal Nutrition Division - manufactures and provides technically advanced nutrition and health products to the global aquaculture industry.

In addition to the above, reported as "all other segments" is the Knowledge Services division. The division provides 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. Corporate 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.

Segmental Revenue
All figures in £000's	Q4 2019 (unaudited)	Q4 2018 (unaudited)	YTD 2019 (audited)	YTD 2018 (audited)
Animal Health	6,618	7,634	17,742	16,153
Genetics	9,978	6,234	39,696	35,755
Advanced Animal Nutrition	22,288	21,495	76,776	85,746
All other segments	3,262	3,527	15,881	15,786
Corporate	1,505	1,489	6,534	5,277
Inter-segment sales	(1,822)	(2,008)	(7,890)	(7,250)
Total	41,829	38,371	148,739	151,467

Segmental Adjusted EBITDA
All figures in £000's	Q4 2019 (unaudited)	Q4 2018 (unaudited)	YTD 2019 (audited)	YTD 2018 (audited)
Animal Health	(848)	(375)	(10,197)	(10,992)
Genetics	4,335	3,317	10,075	7,871
Advanced Animal Nutrition	4,479	3,795	15,406	21,627
All other segments	301	(250)	1,264	203
Corporate	(893)	(404)	(2,823)	(1,795)
Inter-company	-	-	-	104
Total	7,374	6,083	13,725	17,018

Reconciliations of segmental information to IFRS measures

Revenue
All figures in £000's	Q4 2019 (unaudited)	Q4 2018 (unaudited)	YTD 2019 (audited)	YTD 2018 (audited)
Total revenue per segmental information	41,829	38,371	148,739	151,467
Less: revenue from discontinued operations	(4,851)	(4,753)	(21,396)	(19,824)
Consolidated revenue	36,978	33,618	127,343	131,643

Reconciliation of Reportable Segments Adjusted EBITDA to Loss before taxation from continuing operations
All figures in £000's	Q4 2019 (unaudited)	Q4 2018 (unaudited)	YTD 2019 (audited)	YTD 2018 (audited)
Total reportable segment Adjusted EBITDA	7,966	6,737	15,284	18,506
Other Segment and Corporate Adjusted EBITDA	(592)	(654)	(1,559)	(1,488)
	7,374	6,083	13,725	17,018
Less: Adjusted EBITDA from discontinued operations	99	911	(1,674)	2,061
Adjusted EBITDA from continuing operations	7,473	6,994	12,051	19,079
Exceptional including acquisition related items	(530)	(333)	(581)	(1,239)
Depreciation and impairment	(3,726)	(1,533)	(8,466)	(4,869)
Amortisation and impairment	(51,486)	(4,252)	(64,254)	(16,802)
Net finance costs	(5,408)	(1,884)	(12,054)	(4,595)
Loss before taxation from continuing operations	(53,677)	(1,008)	(73,304)	(8,426)

3    Impairment of goodwill and other intangible assets

Goodwill acquired in a business combination is allocated, at acquisition, to the cash generating units (CGUs) that are expected to benefit from the business combination. The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired.

Goodwill arises across all of the Group's operating segments, and is allocated specifically against the following CGUs:

	Animal Health	Genetics	Advanced Animal Nutrition	Knowledge Services	Total
	2019	2019	2019	2019	2019
	£000	£000	£000	£000	£000
Benchmark Vaccines Limited	432	-	-	-	432
Salmobreed AS	-	7,065	-	-	7,065
Stofnfiskur HF	-	13,146	-	-	13,146
Akvaforsk Genetic Center*	-	8,691	-	-	8,691
INVE Aquaculture Group	-	-	79,248	-	79,248
	432	28,902	79,248	-	108,582

*Includes goodwill arising from the joint acquisition of Akvaforsk Genetics Center AS (which was transferred into Benchmark Genetics Norway) in the year and Benchmark Genetics USA (formerly Akvaforsk Genetics Center Inc.)

	Animal Health	Genetics	Advanced Animal Nutrition	Knowledge Services	Total
	2018	2018	2018	2018	2018
	£000	£000	£000	£000	£000
FVG Limited	288	-	-	-	288
Benchmark Vaccines Limited	432	-	-	-	432
Atlantic Veterinary Services Limited	167	-	-	-	167
Salmobreed AS	-	7,435	-	-	7,435
Stofnfiskur HF	-	13,874	-	-	13,874
Akvaforsk Genetic Center*	-	9,194	-	-	9,194
INVE Aquaculture Group	-	-	117,117	-	117,117
FAI do Brasil Criacao Animal Ltda	-	-	-	96	96
FAI Aquaculture Limited	-	-	-	450	450
5M Enterprises Limited	-	-	-	379	379
Improve International Limited	-	-	-	2,995	2,995
Improve International GmbH	-	-	-	12	12
	887	30,503	117,117	3,932	152,439

*Includes goodwill arising from the joint acquisition of Akvaforsk Genetics Center AS (which was transferred into Benchmark Genetics Norway) in the year and Benchmark Genetics USA (formerly Akvaforsk Genetics Center Inc.)

The recoverable amounts of the above CGUs, with the exception of the Knowledge Services, the operations of which are discontinued, have been determined from value in use calculations.  These calculations used board approved cash flow projections from five-year business plans based on actual operating results and current forecasts.  These forecasts were then extrapolated into perpetuity taking account of specific terminal growth rates for future cash flows, using individual business operating margins based on past experience and future expectations in light of anticipated economic and market conditions.  The pre-tax cashflows that these projections produced were discounted at pre-tax discount rates based on the Group's beta adjusted cost of capital reflecting management's assessment of specific risks related to each cash generating unit.  Specific assumptions used are as follows.

Animal Health

The pre-tax cashflows from the five-year projections were discounted using a pre-tax discount rate of 13.1% (2018: 12.4%).  An assumed CAGR of revenue of 49% (2018: 77%) in the five-year plan (2018: three-year plan) reflects the importance of the launch and commercialisation of the division's new sea lice treatment in the forecast period.  A long-term growth rate of 2.5% (2018: 2.5%) has been used to extrapolate the terminal year cashflow into perpetuity.

The valuation of the Animal Health cash generating unit indicates sufficient headroom such that a reasonably possible change to key assumptions is unlikely to result in an impairment in related goodwill.  However, should the division's new sea lice treatment not be successfully launched and commercialised, then impairment of the goodwill and other intangible assets could be possible.

Genetics

The pre-tax cashflows from the five-year projections were discounted using a pre-tax discount rate of 12.1% (2018: 11.2%).  CAGR of revenue of 15% (2018: 18%) is implied by the five-year plan (2018: three-year plan), and a long-term growth rate of 2.5% (2018: 2.5%) has been used to extrapolate the terminal year cashflow into perpetuity.

Sensitivity testing of the recoverable amount to reasonably possible changes in key assumptions has been performed.  All other assumptions being unchanged, an increase in the pre-tax discount rate to 15.2% would reduce the headroom on the Genetics CGU to nil.  Should the discount rate increase further than this, then an impairment of the goodwill would be likely.

Advanced Animal Nutrition

The continued aggressive shrimp market conditions being experienced during the year and the expectation of a slower longer-term recovery in that market led to a reduction in the recoverable value of the CGU.  The pre-tax cashflows from the five-year projections were discounted using a pre-tax discount rate of 11.5% (2018: 11.2%).  CAGR of revenue of 12% (2018: 9%) is implied by the five-year plan, with the rate reflecting a particularly low year in FY19 and the recovery back to previous year's levels as well as growth from new products.  Long term growth rate of 3.5% (2018: 4.0%) has been used to extrapolate the terminal year cashflow into perpetuity.

Following this review, the value in use calculation for the CGU showed £242m and a resulting impairment charge of £44.8m was made to the carrying value of the goodwill. Management believes the longer-term market value to be higher than this but are unable to test this in the market given the current stage of the cycle of the shrimp market.

The value in use assessment is sensitive to changes in the key assumptions used.  Sensitivity analysis was performed and a reasonably likely downside scenario reflecting a slower recovery of the shrimp market and a reduced growth rate in the five-year plan for new products. This reasonably likely downside scenario includes a 5% reduction in FY20 revenue and CAGR of revenue of 10%. This would likely cause further impairment of £13.2m.

Knowledge Services

Following the decision to pursue the Structural Efficiencies programme, the Knowledge Services CGU is discontinuing.  The goodwill for 5M Enterprises Limited, Improve International Limited, Improve International GmbH have been transferred into Assets Held for Sale.  The goodwill for FAI do Brasil Criacao Animal Ltda and FAI Aquaculture Limited no longer has any value and has been fully impaired.

4    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 includes the businesses of Knowledge Services Division and the veterinary services business within Animal Health Division.

Consequently, these operations have been classified as discontinued and part of the disposal group is presented as held for sale. The disposal group includes assets and liabilities within the Knowledge Services and Animal Health segments. The comparative consolidated statement of profit or loss and OCI has been represented to show the discontinued operations separately from continuing operations.

The disposals, together with the cost reduction/cost containment plan and enhanced working capital management will allow the Company to reallocate resources to priority revenue generating strategic projects and to maintain adequate headroom. The timing and proceeds from these actions are fundamental to maintain sufficient liquidity to execute the Group's product development programme and to support its Continuing Operations.

Significant progress to sell the disposal group has been made and sales are expected to complete within the first half of the financial year 2020.

Impairment losses relating to the disposal group

Impairment losses of £7,533,000 for write downs of discontinued operations to the lower of carrying amount and its fair value less costs to sell have been included in the "Depreciation and impairment" and "Amortisation and impairment" headings within discontinued operations. The impairment losses have been applied to reduce the carrying amount of Intangible assets and property, plant and equipment.

Results from discontinued operations

All figures in £000's		Q4 2019 (unaudited)	Q4 2018 (unaudited)	YTD 2019 (audited)	YTD 2018 (audited)
Revenue		4,851	4,753	21,396	19,824
Cost of sales		(2,888)	(3,549)	(11,580)	(14,297)
Gross profit		1,963	1,204	9,816	5,527
Research and development costs		(5)	-	(20)	-
Other operating costs		(2,057)	(2,115)	(8,122)	(7,588)
Adjusted EBITDA		(99)	(911)	1,674	(2,061)
Exceptional - restructuring/acquisition related items		(434)	-	(745)	-
EBITDA		(533)	(911)	929	(2,061)
Depreciation and impairment		(6,560)	(455)	(8,761)	(1,972)
Amortisation and impairment		(1,085)	(189)	(1,833)	(1,200)
Operating loss / Loss before taxation		(8,178)	(1,555)	(9,665)	(5,233)
Tax on loss		(100)	399	(124)	364
Loss from discontinued operations		(8,278)	(1,156)	(9,789)	(4,869)

Results from discontinued operations by segment

		Animal Health	Knowledge Services	Total Discontinued	Animal Health	Knowledge Services	Total Discontinued
All figures in £000's		YTD 2019 (audited)	YTD 2019 (audited)	YTD 2019 (audited)	YTD 2018 (audited)	YTD 2018 (audited)	YTD 2018 (audited)
Revenue		6,255	15,141	21,396	5,467	14,357	19,824
Adjusted EBITDA		288	1,386	1,674	(1,744)	(317)	(2,061)
Operating loss		(447)	(9,218)	(9,665)	(2,475)	(2,758)	(5,233)

		Animal Health	Knowledge Services	Total Discontinued	Animal Health	Knowledge Services	Total Discontinued
All figures in £000's		Q4 2019 (unaudited)	Q4 2019 (unaudited)	Q4 2019 (unaudited)	Q4 2018 (unaudited)	Q4 2018 (unaudited)	Q4 2018 (unaudited)
Revenue		1,736	3,115	4,851	1,576	3,177	4,753
Adjusted EBITDA		(287)	190	(97)	(497)	(414)	(911)
Operating loss		(452)	(7,724)	(8,176)	(624)	(931)	(1,555)

Enquiries

For further information, please contact:
Benchmark Holdings plc	Tel:  [phone]
Peter George, Executive Chairman
Mark Plampin/Septima Maguire, CFO
Ivonne Cantu, Investor Relations
Numis (Broker and NOMAD)	Tel:  [phone]
James Black, Freddie Barnfield, Duncan Monteith
MHP Communications	Tel:  [phone]

Katie Hunt, Reg Hoare, Alistair de Kare-Silver                                     [e-mail]

About Benchmark 

Benchmark's mission is to enable food producers to improve their sustainability and profitability.

We bring together biology and technology, to develop innovative products 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), diets and probiotics and sea lice treatments. Find out more at www.benchmarkplc.com

 

END

 

 

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