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Benchmark Holdings Plc
Investor Presentation • Jun 12, 2025
6035_rns_2025-06-12_e90e08a1-a263-4741-a89b-f208dd7e34c1.pdf
Investor Presentation
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Driving Sustainability in Aquaculture
H1 FY25 Presentation Trond Williksen, CEO Septima Maguire, CFO 12 June 2025
This document and any information contained within it is the property of Benchmark Holdings Plc and its Affiliates
- 1. Highlights
- 2. Operational Update
- 3. Financial Update
- 4. Outlook
- 5. Q&A
H1 Highlights Group Profit after Tax
Completion of Genetics disposal. Continuing business results in line with management expectations
- Completion of Genetics business generating c. £194m gross proceeds, resulting in Group profit after tax of £76m
- Post period end repayment of Green bond, RCF and related hedging instruments for a total of c. £87m
- Obligations under Transition Services Agreement substantially complete
- Corporate streamlining resulting from Genetics disposal well advanced
- Post period end on May 23 the Company announced proposals to:
- Delist the Company from AIM and Euronext Growth Oslo which will result in significant cost savings
- Offer shareholders opportunity to roll over into the private company and receive a special dividend
- Provide an opportunity for shareholders not able or willing to remain in the private company to realise their investment by participating in a tender offer
Proposals are subject to shareholder approval and approval from Norwegian regulators
£76.0m
******************************************************
Continuing activities* Revenues £40.6m H1 FY24: £51.8m
Adj. EBITDA1 £4.2m H1 FY24: £9.6m
Adj. Operating profit2 £2.4m H1 FY24: £1.6m
Liquidity (cash and facilities) £211.3 m 30 September 2024: £34.3m
(1) Adj. 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) Constant exchange rate (CER) figures derived by retranslating current year figures using previous year's foreign exchange rates
* All figures exclude Genetics but include Group corporate costs previously allocated to Genetics
H1 Highlights Group Profit after Tax
Completion of Genetics disposal. Continuing business in line with management expectations
Continuing business
- Group performance in line with management expectations
- Improved trading in Advanced Nutrition in Q2 driven by improved product mix and customer adoption of Inve's proven technologies and solutions, partially offsetting Q1 weakness
- Health now restructured and cash positive
- Fall in Group revenues against last year explained by:
- Health: 74% reflecting pause in Ectosan® Vet and CleanTreat® since H1 FY24
- Some forex headwinds in Advanced Nutrition: -7% (-1% CER3)
- Lower Adjusted EBITDA1 resulting from:
- Lower revenues
- Lower gross profit margin due to unfavourable product mix in Q1 in Advanced Nutrition
- Partially offset by 13% reduction in operating costs, but still not reflective of future cost structure post streamlining
£76.0m
******************************************************
Continuing activities* Revenues £40.6m H1 FY24: £51.8m
Adj. EBITDA1 £4.2m H1 FY24: £9.6m
Adj. Operating profit2 £2.4m H1 FY24: £1.6m
Liquidity (cash and facilities) £211.3 m 30 September 2024: £34.3m
(1) Adj. 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) Constant exchange rate (CER) figures derived by retranslating current year figures using previous year's foreign exchange rates
4 * All figures exclude Genetics but include Group corporate costs previously allocated to Genetics
Operational Update
Advanced Nutrition
Improved performance in Q2 driven by better product mix and adoption of proven technologies
Strategy and actions taken in the last two years have positioned the business to benefit from market recovery and position the business for future growth
- o Diversified portfolio of advanced products and solutions well positioned as producers seek to optimise performance and yield
- o Products launched in the last two years gaining traction; new algae product launched in H1 well received
- o Improved product mix compared to H2 FY24 and Q1 FY25 with increased availability of high quality Artemia
- o Strategy implemented in key Ecuadorian market to strengthen local presence by leveraging technical team is delivering results
Market conditions
- o Conditions in shrimp market still challenging in Q2 FY25; some cautiousness as a result of US tariff uncertainty
- o Conditions in Mediterranean fish market are positive with improved end pricing and benefits of industry consolidation coming through
| (£m) | H1 25 | H1 24 | AER% | CER3% | FY 24 |
|---|---|---|---|---|---|
| Revenue | 37.7 | 40.4 | -7% | -1% | 75.9 |
| Gross Margin | 47% | 53% | 48% | ||
| Adj. EBITDA1 | 6.5 | 9.9 | -35% | -35% | 14.4 |
| Adj. EBITDA margin | 17% | 24% | 19% | ||
| Adj. Operating Profit2 | 5.0 | 8.6 | -42% | -42% | 9.1 |
6
Health
Core Salmosan® Vet business performing well
- Restructured business performing well
- Sales of Salmosan® Vet £3m with drop against last year due to timing of sales
- Gross margin of 62% (H1 FY24: 50%)
- Operating costs significantly reduced
- Adj. EBITDA1of £0.5m and 17% Adj. EBITDA margin
- Positioned to relaunch land-based CleanTreat® platform solution subject to customer uptake
(1) Adj. 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) Constant exchange rate (CER) figures derived by retranslating current year figures using previous year's foreign exchange rates
| (£m) | H1 25 | H1 24 | AER% | CER3% | FY 24 |
|---|---|---|---|---|---|
| Revenue | 3.0 | 11.5 | -74% | -73% | 14.5 |
| Gross Margin | 62% | 50% | 50% | ||
| Adj. EBITDA1 | 0.5 | 2.2 | -78% | -77% | 2.1 |
| Adj. EBITDA margin | 17% | 19% | 14% | ||
| Adj. Operating Profit2 | 0.2 | (4.5) | 105% | 105% | (21.3) |
Prototype image of land-based CleanTreat® configuration
Financial Update
Business Area highlights
| £m | H1 25 | H1 24 | % AER | % CER1 |
|---|---|---|---|---|
| Revenue | ||||
| Advanced Nutrition | 37.7 | 40.4 | -7% | -1% |
| Health | 3.0 | 11.5 | -74% | -73% |
| Operating Costs | ||||
| Advanced Nutrition | (10.2) | (10.4) | 3% | 1% |
| Health | (1.3) | (3.4) | 61% | 60% |
| Corporate | (4.0) | (3.9) | -3% | -3% |
| R&D | ||||
| Advanced Nutrition | (1.1) | (1.2) | 3% | 1% |
| Health | - | (0.1) | 100% | 100% |
1 (CER) figures derived by retranslating current year figures using previous year's foreign exchange rates
- Advanced Nutrition sales 1% lower CER driven by 6% growth in diets offset by a reduction in Artemia and Health. Overall improvement in Q2 from Q1.
- By species lower sales in shrimp partially offset by revenues from marine fish which grew 14%
- Health revenues impacted by pause in Ectosan®Vet. Sales of Salmosan® Vet were £3m (H1 FY24: £5.7m)
- Reduction in operating costs
- Health drop reflects reorganisation
- Advanced Nutrition operating costs were £0.8m lower but this was partially offset by a £0.6m reduction in income from sales of tax credit compared to prior year
- Corporate costs were in line with prior year
- Consistent R&D investment in Advanced Nutrition
Income statement highlights
| £m - Continuing activities |
H1 25 | H1 24 | % AER | % CER3 | FY24 |
|---|---|---|---|---|---|
| Revenue | 40.6 | 51.8 | -22% | -17% | 90.4 |
| Gross profit | 19.6 | 27.2 | -28% | -27% | 43.9 |
| R&D | (1.1) | (1.3) | 10% | 8% | (2.4) |
| Other operating costs | (14.2) | (16.3) | 13% | 11% | (29.6) |
| Adjusted EBITDA1 | 4.2 | 9.6 | -56% | -56% | 11.9 |
| Adj. EBITDA margin | 10% | 18% | 13% | ||
| Depreciation and Amortisation | (8.5) | (14.8) | 43% | (41.8) | |
| Adjusted operating profit/(loss)2 | 2.4 | 1.6 | 57% | 55% | (16.6) |
| Exceptional costs | (4.1) | (2.0) | -109% | -109% | (5.6) |
| Net finance costs | (4.3) | (4.4) | 2% | (10.4) | |
| Loss before tax | (12.6) | (11.6) | -9% | -9% | (45.9) |
| Loss for the period | (13.1) | (11.4) | -15% | -16% | (44.3) |
| Profit from discontinued operations | 89.1 | 2.6 | 5.2 | ||
| Total (Loss)/profit for the period | 76.0 | (8.8) | (39.1) |
(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) Constant exchange rate (CER) figures derived by retranslating current year figures using previous year's foreign exchange rates
• Lower revenues driven by soft shrimp markets in Q1 and pausing of Ectosan®Vet and CleanTreat®
- Gross margin impacted by product mix in Advanced Nutrition:
- Variations in Artemia grades resulting from quality of historic harvests currently in inventory
- Lower contribution from Health segment
- Group streamlining and continued financial discipline translating into lower operating costs
- Lower depreciation resulting from decommissioning of CleanTreat® units
- Exceptional costs relate to strategic review and disposal of the Genetics business
- Reduction in net finance costs driven by forex, with a net gain in the period vs a net loss in the prior period
- Adj. Operating profit improved due to the reduction in revenue being offset by lower costs
* All figures exclude Genetics but include Group corporate costs previously allocated to Genetics
Cashflow, net debt and liquidity
| Net debt1 at 30 September 2024 |
(71.3) |
|---|---|
| Cash from operations excl. working capital and taxes | 2.8 |
| Movement in working capital | 3.5 |
| Taxes | (3.5) |
| Net cash from operations | 2.8 |
| Capital expenditure | (2.4) |
| Disposal of subsidiaries | 184.0 |
| Other disposal activities | 18.4 |
| Foreign exchange on cash and debt | (2.2) |
| Interest | (4.0) |
| New/modification of leases | 1.2 |
| Other non-cash movements | (0.6) |
| Net cash1 at 31 March 2025 |
125.9 |
| Net cash1 excluding lease liabilities |
129.2 |
1 Net cash/debt is cash and cash equivalents less loans and borrowings
Note: cashflow figures include discontinued operations
- Net cash from operations: £2.8m (H1 FY24: £2.0m), driven by
- Lower revenues and margins, offset by lower depreciation charge, and
- Offset by working capital cash inflow compared to H1 FY24 cash outflow
- Capex of £2.4m (H1 FY24: £1.9m)
- Net interest paid of £4.0m (H1 FY24: £4.2m)
- Post period end repayment of debt (Green Bond, RCF and hedging instruments) totalling £87.4m
- Cash and cash equivalents as at 10 June 2025: £116.9m
- Liquidity as at 10 June 2025: £131.6m
Current trading and outlook
Advanced Nutrition
- Expect improved trend to continue and gross margins to normalise
- Uncertainty from US tariff regime
- Actions taken to strengthen commercial effort, broaden product portfolio and increase position the business strongly as shrimp markets recover
- Favourable conditions in Mediterranean fish markets
Health
- Start to the year in line with expectations
- Salmosan® Vet well positioned in customer toolkit to tackle sea lice
- Stable profitability post restructuring
- Positioned to relaunch Ectosan® Vet and CleanTreat® with land-based configuration subject to customer uptake
Group
- Full effect of cost savings to come through in FY26
- Proposals on return of capital and positioning of the group , including delisting and re-registration as a private company
Disclaimer
IMPORTANT NOTICE
This presentation has been prepared by Benchmark Holdings plc (the "Company") in connection with the Q2 FY 25 results on 12 June 2025.
This presentation does not constitute a prospectus or an admission document relating to the Company, nor does it constitute or form part of any offer or invitation to purchase, sell or subscribe for, or any solicitation of any such offer to purchase, sell or subscribe for, any securities in the Company nor shall this presentation or any part of it, or the fact of its distribution,form the basis of, or be relied on in connection with, any contract for the same.
Information in this presentation relating to the price at which relevantinvestments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such investments.
The presentation may contain forward-looking statements. These statements relate to the future prospects, developments and business strategies of the Company. Forward-looking statements are identified by the use of such terms as "believe", "could", "envisage", "estimate", "potential", "intend", "may", "plan", "will" or variations or similar expressions, or the negative thereof. Any forward-looking statements contained in the presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialise, or if underlying assumptions prove incorrect, the Company's actual results may vary materially from those expected, estimated or projected. Any forward-looking statements speak only as at the date of the presentation. Except to the extent required by applicable law or regulation, including the rules made by the AIM Rules of the London Stock Exchange, the Company undertakes no obligation to publicly release any update or revisions to any forward-looking statements contained in the presentation to reflect any change in events, conditions or circumstances on which any such statements are based after the time they are made.
This presentation contains non-GAAP/non-IFRS financial information which the Company's management believes is valuable in understanding the performance of the Company. However, such non-GAAP/non-IFRS information is not uniformly defined by all companies and therefore it may not be comparable with similarly titled measures disclosed by other companies, including those in the Company's industry. Although these measures are important in the assessment and management of the Company's business, they should not be viewed in isolation or as replacements for, but rather as complementary to,the comparable GAAP/IFRS measures.
No reliance may be placed, for any purposes whatsoever, on the information contained in this presentation or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company, or any of its respective directors, partners, officers, employees, advisers or any other persons as to the accuracy, fairness or sufficiency of the information or opinions contained in this presentation and none of the information contained in this presentation has been independently verified by any person. Save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in such information or opinions.
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