Benchmark Holdings shares slip as profits half

Aquaculture specialists, Benchmark Holdings (AIM:BMK), saw its shares slide as it posted the results from a challenging full year of trading.

The company’s revenues dropped 14.83%, down from £124 million to £105.6 million. This was led by a 40.22% drop in its Health segment revenues and a 22.25% fall in its core Advanced Nutrition sector – though its Genetics segment grew by 4.53%.

While Benchmark Holdings’ statutory loss from continuing operations narrowed from £59.1 million to £22.8 million, its adjusted EBITDA fell 32.86% to £14.5 million, with its adjusted operating profit dropped 51.53%, from £16.3 million to £7.9 million.

On a brighter note, shareholders’ loss per share narrowed from 15.03p to 5.26p, while the company made significant progress in reduced its net debt, down from £87.1 million to £37.6 million year-on-year.

Benchmark Holdings said that the shrimp market has been challenging during the pandemic, while its salmon business has been ‘fairly resilient’. It also announced it had finished its restructuring and currently sits with a strong financial position.

Speaking on its performance, company Chairman, Peter George, said:”2020 was a transformational year for Benchmark. With the restructuring complete, we now have a streamlined Group focused on the three core aquaculture areas of Genetics, Advanced Nutrition and Health, each with substantial growth opportunities and long-term positive drivers which give usoptimism for the future. Our focus remains on becoming a profitable cash generative Group.”

“Against a very challenging backdrop this year with Covid-19, I am proud of the Group’s resilience both operationally and financially and this reflects well on the commitment and contribution of Benchmark employees.”

Following the update, Benchmark Holdings shares dropped 6% as trading began on Friday. The Marketbeat community currently has a 56.76% “outperform” stance on the stock. Over the past three months, company insiders have sold no shares in the company, and bought £82,800.

Previous articleArcadia faces collapse, risking 15,000 jobs
Next articleTwo strategic shifts driving Unilever shares higher
Jamie Gordon
Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.