Since listing on the alternative market in December 2013, expansion has been a big part of the strategy for Benchmark (BMK), which has acquired businesses to cover all aspects of the sustainable fish farming market. The addition of a breeding and genetics division through the acquisition of SalmoBreed and StofnFiskur a year later has had a major contribution to top-line growth.
The £15.9m in revenue in this new division more than offset the decline in turnover at the animal health business, which fell to £21.1m from £33m in the 2014 financial year, as competition in Chile hit full-year figures. The situation also impacted group margins as discounts were offered to try and recover some business. Add in higher research and development spending, up from £6.4m to £8.8m, and you can understand the hit to the bottom line - although the pipeline now comprises 61 products, up from 47 last year.
Benchmark has continued to bulk up since the period-end with the reverse acquisition of aquaculture nutrition company INVE, which has more than doubled Benchmark's net assets. Managements say it is not just the strong profitability and cash flows of INVE that attracted Benchmark, but also the opportunity to expand the group's product range and selling regions.
Analysts at Cenkos Securities expect adjusted EPS of 3.7p in the 2016 financial year, compared with 0.3p in FY2015
| BENCHMARK (BMK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 64p | MARKET VALUE: | £301m | |
| TOUCH: | 62-65p | 12-MONTH HIGH / LOW: | 110p | 61p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 19p* | NET CASH: | £13.6m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 12.9 | 2.6 | na | na |
| 2012 | 18.5 | 3.6 | na | na |
| 2013 | 27.5 | 4.9 | 4.7 | nil |
| 2014 | 35.4 | -1.4 | -1.0 | nil |
| 2015 | 44.2 | -11.4 | -6.0 | nil |
| % change | +25 | - | - | - |
*Includes intangible assets of £66m, or 14p a share | ||||
