Benchmark Holdings PLC on Thursday said it is in a position to realise the potential of its two remaining business areas, Advanced Nutrition and Health, as it posted a widened annual loss.
The Sheffield, England-based company offers products and services that enable aquaculture producers to improve their productivity and sustainability.
Its pretax loss widened to £45.9 million in the financial year ended September 30 from £24.7 million the year before, as revenue fell 13% to £147.7 million from £169.7 million.
Chief Executive Officer Trond Williksen said: ‘The sale of Genetics creates an opportunity to simplify the group’s structure, positioning it to realise the potential in the Advanced Nutrition and Health business areas, whilst reducing costs and leverage. At the same time it will enable a return of capital to shareholders. Following the disposal, Benchmark will become a lean, profitable organisation with a solid balance sheet, focused on realising the significant value and potential in our continuing business where we have market leading positions, a track record of innovation and significant headroom for growth.’
Last month, Benchmark announced the sale of Benchmark Genetics Ltd and Benchmark Genetics Norway AS to Starfish Bidco AS, a wholly owned subsidiary of Novo Holdings AS, for an enterprise value of up to £260 million.
On Thursday, Benchmark said it expects the disposal to complete in the first quarter of next year. It will use the sale proceeds to pay down debt and return money to shareholders. Net debt was £49.0 million on September 30, down from £65.5 million a year before, as £22.3 million in debt will be transferred with the Genetics business.
Separately, Benchmark said it has appointed Tripp Lane as chair from next week Tuesday, as Peter George will retire.
Lane is a founding partner of Delancey Cove LLC, an advisory firm focused on transitional governance and management of private and public companies.
Benchmark shares were down 3.2% to 33.20 pence on Thursday morning in London.
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