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Benchmark prepares for dual listing

The aquaculture biotechnology specialist may delist from Aim as it seeks growth in Oslo
November 30, 2022
  • Net cash flow from operations improves year on year
  • Capex moderating as R&D investment slows

Aquaculture technology firm Benchmark Holdings (BMK) is hoping to become a bigger fish in a smaller pond with a dual listing on Oslo Euronext’s Growth Market due to take place in December. 

With its shares down over 40 per cent in the past year, the company is looking for exposure to Norway’s specialised seafood and aquaculture market. It plans to move up to the Oslo Børs, the city’s main exchange, in the first half of next year and consult with its London shareholders about whether to maintain an Aim listing. 

Although revenue was up year on year, the company’s 2022 results showed its pre-tax losses growing. According to management, Benchmark’s performance was partially impacted by an increased depreciation charge associated with the leases on vessels for its CleanTreat water purification system. 

The company also reported higher finance costs due to interest and costs associated with movements of hedging instruments, as well as costs associated with refinancing a Norwegian bond. “Those drivers were effectively necessary evils so that we can focus on the business for the next three years and drive its cash profitability and growth,” explained Benchmark’s CFO, Septima Maguire. 

Net cash flows generated from operating activities went up from £5.8mn in 2021 to £10.8mn in the last financial year. Maguire said the company’s capital expenditure moderated this year, and is expected to fall further next year as all three of its business areas are now fully commercialised. 

In its results, the company declared that it displayed “good momentum” in 2022. While it’s clear change is afoot at the organisation, we’re inclined to stay on the sidelines until it’s on stable ground. Hold. 

Last IC View: Hold, 18 May 2022

BENCHMARK HOLDINGS (BMK)  
ORD PRICE:37pMARKET VALUE:£257mn
TOUCH:36-38.512-MONTH HIGH:65pLOW: 35p
DIVIDEND YIELD:nilPE RATIO:na
NET ASSET VALUE:45p*NET DEBT:24%
Year to 30 SepTurnover (£mn)Pre-tax profit (£mn)Earnings per share (p)Dividend per share (p)
2018132-8.10-1.40nil
2019124-58.5-10.7nil
2020106-22.6-3.80nil
2021125-9.20-1.93nil
2022158-23.2-4.60nil
% change+26---
Ex-div:-   
Payment:-   
*Includes intangible assets of £245mn, or 35p a share