Benchmark Share Discussion Threads

[edmonda] 03/3/2023 07:59

"Q1 results: consistent growth continues"

Full detailed report & audio summary:


Summary: For the three months to 31 December 2022, Benchmark Holdings reported revenue +36.2%YoY at £54.5m, and (adj.) EBITDA +47.7%YoY (excluding fair value adjustment for biological assets, +61%YoY), to £11.0m reflecting the combination of strong top line growth, capacity utilisation and cost control. As a result, (adj.) EBITDA profitability continued to improve, from an average of 19.7% through FY22, to 20.1%. The operating loss was £0.12m (Q122: £1.46m loss), on an adjusted basis, a £0.85m profit. The Q1 cash position was £42.8m and net debt (excluding leases) reduced from £47.5m at December 2022 to £37.9m1. Cash at 24 February 2023 was £37.5m.

The strength of Q1 23 performance, and in particular the contribution from the Health business area, gives substance to Benchmark’s stated confidence in the outlook for FY23. We have raised our FY23 (adj.) EBITDA outlook by 11% to £36.5m, and for FY24 by 9% to £43.0m, equating to a FY24 EV/EBITDA of 8.0x.

Our fair value for Benchmark remains 63p/share.

[edwardt] 28/2/2023 12:12

well those results look pretty good to me. i guess until this goes to the main list and uk small cap investors sell down - we won't get a pop higher but the fundamentals infer it is a coiled spring?

[edmonda] 07/12/2022 16:03

New research note & audio summary ("FY22 results deliver sustainable growth")

Full report here (free & accessible here):

For the year to 30 September 2022, Benchmark Holdings reported revenue of £158.3m, +27%YoY and (adj.) EBITDA of £31.2m, +60%YoY. The Group highlighted 14%YoY growth in the Advanced Nutrition business area, as shrimp market demand continues to recover, and 24%YoY growth in Genetics as the new Iceland salmon eggs facility came on stream. FY22 EBITDA (adj.) was in line with the upper end of the Trading Update of 24 October; revenue was 3% above our October estimates, EBITDA (adj.) 14% higher. EBITDA (adj.) margin improved from 15.6% in FY21 to 19.7%, maintaining progress from 13.7% in FY20. Following FY22 performance which matched updated guidance – reiterating Benchmark’s ‘delivery’ strategy - our FY23 and FY24 outlook is essentially unchanged, with top line and EBITDA growth maintained; LBT is reduced as a result of debt restructuring undertaken in November 2022. Our outlook equates to a FY24 EV/EBITDA of 9.1x, and Fair Value is still seen at 63p/share.

[edwardt] 02/12/2022 08:36

not theft at all. buy some more if you are worried about dilution.

[murdo mcsponge] 01/12/2022 09:47

Judging by the information sent out by The Company, UK Shareholders are about to be screwed. There is a Private Placement taking place on the Norwegian Market, which UK Investors are excluded from. This is apparently a condition of listing on the Oslo Market. Considering it is UK shareholders who have carried The Company to this point, this seems to me like theft, if the opportunity to participate is being denied to UK investors. It is said that a decision has still to be reached on whether the AIM listing in London will be continued. My guess is that the decision has already been made and the AIM listing will be discontinued. Is such activity legal?

[edwardt] 30/11/2022 13:59

starting to get there = been a long time coming!

[murdo mcsponge] 30/11/2022 13:16

Figures and Webinar very impressive. What an excellent operation, on every front.

[edwardt] 27/10/2022 18:27

I believe it could be a great company but that involves improving the roce of the business a lot. At least they are showing the buy side some tangible targets here now on such measures . I have been a long term holder but to stay that way it has to deliver now and stop being a perennial "maniana" stock. .

[murdo mcsponge] 27/10/2022 11:06

I believe they have loads of stock. That's another reason why the price should be higher. It all points to moving onto the Oslo Exchange, where they actually understand what Aquaculture and its Risk Management is all about. IMHO this is an excellent Company which is extremely well positioned in one of the few industry sectors that is expanding. Just my personal opinion. Everyone should do their own research. I may have got it completely wrong!

[edwardt] 26/10/2022 20:48

Perhaps the management could buy some

[murdo mcsponge] 25/10/2022 16:59

What a nonsense. Some excellent figures and the stock price drops.

[edmonda] 25/10/2022 08:04

That was a positive update on a strong Q4 and BMK now sees FY22 adj EBITDA beating market expectations.

Equity Development's fair value for now stays at 63p/share, vs 37p in the market, as you can read in new research note here (free access):

[edwardt] 15/10/2022 11:43

Any views on whether the Norwegian tax will go through? You would have thought they will - not sure they need the tax!!

[edmonda] 12/10/2022 09:06

Benchmark Holdings - "Sustainable growth through consistent delivery" - major new research report (free & accessible) from Equity Development; CMD and Business Review

Link to full note and audio summary:


At the recent Capital Markets Day CEO Trond Williksen outlined Benchmark’s strategy: to drive sustainability in aquaculture, improving product yield and quality for its customers, and at the same time to build Benchmark’s growth through planned phases of development in its three key business areas - Genetics, Advanced Nutrition and Health.

Restructured in 2020, the Group is now focused on consistent delivery, anchoring business area profitability and cashflow, and delivering on strategic programmes within a 2-5-year time frame. The direction of travel for Benchmark’s target markets in aquaculture remains positive. As the OECD1 notes “fish consumption is projected to keep rising at a faster rate than meat consumption over the next decade” and “Aquaculture is expected to drive production growth …to overtake capture fisheries production.” The Group outlined its growth pathway for each business area.

Our fair value for Benchmark is 63p/share.

[edmonda] 05/9/2022 09:35

Q3 update: Positive outlook in uncertain times

See full details in our new note:

Summary

Benchmark’s results for the FY22 Q3 (April-June) period showed robust sales plus adjusted EBITDA (AEBITDA) growth and confirm a positive outlook, particularly in the important genetics and advanced nutrition businesses. Medium-term financial guidance, issued only in May, was reiterated, something that represents a positive element in the investment case given current heightened economic uncertainty. Benchmark’s status as a key player in the global aquaculture industry should be a defensive attribute and it also confirms low exposure to spiking utility costs - an additional attractive feature in the present energy crisis.

We recently revised our valuation principally to reflect the changed macro-economic (inflation/interest rate) environment and, while this has deteriorated further since this was carried out in June, we do not consider there is yet a need to change the valuation.

Thus, we are maintaining the current valuation of £478m (or 68p/share), which is struck on the basis of a 12% weighted average cost of capital and 3% long term growth rate.

[murdo mcsponge] 15/8/2022 19:46

Big wadge of stock moved today. That's £1.73 million quid's worth.

[edwardt] 08/8/2022 21:10

Well if i knew I would tell you!

[murdo mcsponge] 08/8/2022 16:26

Why the sudden price drop? Does somebody know something that the rest of us don't?