Shares in aquaculture company Benchmark (BMK) gained 2.2% to 63.9p on Monday after reporting strong fourth quarter growth with revenues up 51% in constant currencies and adjusted operating profit up 35% to £3.5 million.
For the full year to 30 September revenues were 24% higher in constant currencies to £125.1 million, around 3% higher than consensus while adjusted operating profit grew 37% to £10.8 million.
OPRERATIONAL IMPROVEMENTS
Growth was achieved across all three business areas with the largest division Advanced Nutrition benefiting from a strong recovery in shrimp and seabass/seabream markets which drove a 27% increase in revenues to £70.5 million.
Strong growth in revenues and operational improvements led to an almost doubling of the EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin to 20%.
The Genetics division grew revenues by 15% in constant currencies to £46.8 million after seeing continued growth in the core salmon egg business and ramp-up of production at its Salten facility.
Increased operating costs and research and development costs resulted in adjusted EBITDA falling 20% to £11.5 million.
Meanwhile the company achieved its first revenues from a new Salmon facility in Chile. The company has made commercial progress on developing shrimp and tilapia opportunities.
In the Health division the company saw its first commercial sales from the new Ectosan Vet and CleanTreat solutions for combating sea lice which began in August. Revenues grew to £4.3 million from £1.4 million and the business generated adjusted EBITDA of £1.1 million.
EQUITY RAISE AND POSSIBLE OSLO LISTING
Benchmark also announced a successful £20.5 million equity raise to fund the growth of the business via a placing of 33.1 million new shares at a price of 62p per share, representing 4.7% of the enlarged share capital.
The company said it is exploring a listing for the shares on the Oslo stock exchange which is considered the world’s largest seafood focused market.
Looking forward, the company said it has a positive outlook and good momentum in the business while its markets have ‘attractive dynamics and significant growth opportunities’.
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