Investors may have been hoping for more from its preliminary results today as shares dip 10%.
Companies: Benchmark Holdings Plc
Aquaculture health and nutrition company Benchmark (LON: BMK) has announced its FY17 Preliminary Results which despite Revenue growth and a reduction in Losses, has sent shares down 10%.
The Group, who aid in the sustainable farming of fish through nutrition, genetics and the development of eco-friendly medication saw total Revenues jump by 28% (13% LFL) and EBITDA growth of 9%.
Losses for the year were also reduced by 61% while over £40m was spent in capex and R&D.
In its Advanced Nutrition business Revenues jumped 21% and in its Genetics division Revenue grew an impressive 47%. In its Medicines and Vaccines division, however, sales slipped by almost £10m.
The most significant news of last year was the Group's successful field-trial of its Ectosan product, a sea lice treatment for farmed Salmon.
Ectosan aims to treat perhaps the Salmon farming industry's biggest drawback, not only in an effective way but also in an eco-friendly and welfare-friendly manner.
In Norway, for example, where the Group opened a new facility last year, sea lice infestation resulted in a "5% contraction in the production of salmon in Norway, equivalent to 70,000 tons" - a $500m financial impact on the industry.
Management said in December the success of the trial meant it has the potential for an extra £40-£50m in Revenues.
Malcolm Pye, Benchmark CEO commented:
"2017 has been a year of significant operational and strategic progress for Benchmark Holdings. Despite certain challenges, we have continued our focused investment in the development of the Group's pipeline and have put in place important technological, infrastructure and organisational building blocks. Benchmark is now one of the leading global providers of advanced nutrition, genetics and animal health in the industry.
"The organic growth delivered in the year and the achievement of significant milestones, together with the increased activity in many of our key markets at the end of the year leaves us full of confidence going into the new financial year. The continued growing global demand for aquaculture products, the disease challenges faced, and pressure to limit the use of antibiotics, puts the group in a strong position to drive growth for many years to come."
BMK trades on a forecast PE ratio of 70x, well above the industry median of 16x. Consensus forecasts the Group to see Revenues grow by 45% in the two years to 2018 and to swing from a Net Loss of £18m to a Net Profit of £27m in the same period.
