We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Benchmark Holdings Plc | LSE:BMK | London | Ordinary Share | GB00BGHPT808 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2.50 | 5.49% | 48.00 | 45.10 | 48.00 | 46.00 | 46.00 | 46.00 | 16,995 | 16:35:10 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Pharmaceutical Preparations | 169.74M | -23.15M | -0.0313 | -14.70 | 340.1M |
From Apr 2019 to Apr 2024
TIDMBMK
RNS Number : 2669D
Benchmark Holdings PLC
25 June 2019
BENCHMARK HOLDINGS PLC
("Benchmark" or the "Company" or the "Group")
Interim results for the six months ended 31 March 2019
Progress towards commercialisation of pipeline products and structural efficiencies
Benchmark (LSE:BMK), the aquaculture health, genetics and advanced nutrition business, announces its interim results for the six months ended 31 March 2019 (the "period").
Hot Features
Premium
Constant
GBPm H1 2019 H1 2018 Change % Currency
Change(5)
%
----------------------- --------- ---------- ---------- ----------
Adjusted
Revenue 78.3 75.7 3% 2%
Adjusted EBITDA(1) 7.5 6.0 25% 23%
Adjusted Operating
Profit(2) 2.7 2.9 (7%) 10%
Adjusted Profit
Before Tax(3) 0.7 3.6 (80%) (86%)
----------------------- --------- ---------- ---------- ----------
Statutory
Revenue 78.3 75.7 3% 2%
Loss before tax (8.3) (5.6) (48%) (50%)
(Loss)/Profit for
the period (9.1) 3.6 (353%) (355%)
Basic (loss)/earnings
per share (pence) (1.71) 0.67 (355%)
Net Debt(4) (65.5) (41.3) (59%)
1 Adjusted EBITDA which reflects underlying profitability, is earnings before interest, tax, depreciation, amortisation, impairment, exceptional items and acquisition related expenditure as shown in the income statement.
2 Adjusted Operating Profit is operating loss before exceptional items including acquisition related items and amortisation of intangible assets excluding development costs as shown in note 16 to the condensed consolidated financial statements
3 Adjusted profit before tax is earnings before tax, amortisation and impairment of acquired intangibles, exceptional items and acquisition related expenditure as shown in note 16 to the condensed consolidated financial statements
4 Net debt is cash and cash equivalents less loans and borrowings as shown in note 16 to the condensed consolidated financial statements
5 Constant Currency change reflects the percentage change after retranslating 2019 figures using the same foreign exchange rates experienced in 2018.
H1 2019 Highlights:
Adjusted EBITDA growth driven by increased revenues and move towards higher value product mix
-- Revenue increased by 3% to GBP78.3m (H1 2018 GBP75.7m) despite challenging conditions in the global shrimp markets, with growth in Genetics, Health and Knowledge Services more than offsetting a drop in advanced nutrition
-- Adjusted EBITDA increased by 25% to GBP7.5m (H1 2018: GBP6.0m) reflecting the contribution of higher value products, an increase in the value of biological assets as a result of growing sales and increasing capacity in Norway, and cost control
-- Adjusted EBITDA margin increased to 9.6% (H1 2018: 8.0%)
-- Loss for the period reflects increased depreciation following recent investments and higher finance costs (H1 2018 profit benefitted from one-off deferred tax credit of GBP9.2m)
-- R&D investment of GBP8.5m (10.9% of sales) (H1 2018: GBP7.8m (10.3% of sales)), of which GBP2.9m was capitalised (H1 2018: GBP2.2m, 10.3%)(6)
-- Net debt was GBP65.5m including GBP26m ringfenced non-recourse debt to fund the Salten salmon egg facility in Norway
6 Capitalised R&D relates to trials and development work for products which have proven to be commercially viable and are close to launch, with the largest being the Group's next generation sea lice treatment.
Progress towards commercialisation of key products
-- The regulatory process is on track for the market launch of our next generation sea lice treatment. Commercial scale trials continue to show c. 99% efficacy amid growing customer interest
-- Trials in Asia of our disease resistant shrimp continued to show good results for survivability, yield and consistency, demonstrating their commercial potential. Production of broodstock for export commenced at the new facility in Florida
-- Production at new land based salmon egg facility in Salten, Norway ramped up to plan, and commercial opening took place post period end
Delivering on structural and operational efficiency initiatives
-- Streamlined Advanced Nutrition production facilities in Asia resulting in the sale of one site
-- Closure of one of the Company's lumpfish operations -- Progress in developing alternatives for the commercialisation of companion animal products
Post period-end milestones
-- Refinanced our USD$90m credit facilities and increased flexibility through the issuance of a four year term, NOK850m (c.USD$95m equivalent) bond listed in Oslo and a USD$15m revolving credit facility
-- Signed a joint venture in Thailand to commence construction of the first multiplication centre for the roll-out of our disease resistant shrimp in Asia
-- Entered into an agreement to dissolve the salmon genetics joint venture with AquaChile. Decision to take control of a breeding facility owned by the JV to pursue an independent strategy in Chile
Commenting, Malcolm Pye, Chief Executive said:
"We have delivered growth in Adjusted EBITDA and made progress against our strategic priorities despite challenging conditions in the shrimp markets. We continue to implement operational and structural efficiency initiatives and we expect the Group to deliver broadly in line with market expectations for the full year.
"We are starting to see benefits from the investments we have made into a number of areas including our new facility in Salten, Norway. These investments, combined with the successful completion of our refinancing, leaves us well placed to deliver on our five year strategy to drive future growth and profitability."
SA presentation for analysts will be held today at 09.30 at the offices of Numis Securities, London Stock Exchange Building, 10 Paternoster Square, London, EC4M 7LT. To register your interest, please contact benchmark@mhpc.com. The presentation will also be accessible via a live conference call for registered participants. To register for the call please contact MHP Communications on +44 (0)20 3128 8226 or by email on benchmark@mhpc.com.
This announcement will be available on our website (www.benchmarkplc.com)
For further information, please contact:
Benchmark Holdings plc Tel: 020 3915 1236 Malcolm Pye, CEO Mark Plampin, CFO Ivonne Cantu, Investor Relations Numis (Broker and NOMAD) Tel: 020 7260 1000 James Black, Freddie Barnfield, Freddie Naylor-Leyland MHP Communications Tel: 020 3128 8742 Katie Hunt, Reg Hoare, Alistair de benchmark@mphc.com Kare-Silver
Interim Management Report
Overview
The Group delivered growth in revenue and Adjusted EBITDA despite difficult conditions in the global shrimp and Mediterranean seabass/bream markets. In addition, substantial progress was made against the Group's strategic priorities including its next generation sea lice treatment, its specific pathogen / disease resistant (SPR) shrimp and the prioritised development of its pipeline of products. The Group is implementing a programme of structural and operational efficiencies to reallocate capital towards its key aquaculture opportunities whilst maintaining strict cost control and active management of working capital in order to accelerate the path to profitability and free cashflow generation.
Conditions in our end markets
Global demand for salmon continued to grow in the period resulting in stable prices and a favourable environment for salmon producers and for our products. Global salmon production increased by c.5% during the period with strong growth in demand coming from the US and the Americas, China and South Korea.
In shrimp, the industry experienced low prices as a result of temporary overstocking following a record harvest in 2018. This led our customers to reduce and delay production with an impact on demand for our products.
In the Mediterranean, demand and prices for farmed sea bass and sea bream have been affected by the economic environment in Turkey, the major producing country, which has put pressure on farmers across the Mediterranean.
Trading performance
Genetics
The Company's Genetics division performed well with revenues and Adjusted EBITDA increasing by 8% and 73% to GBP22.6m and GBP4.9m respectively. The result was driven by increased volumes in salmon eggs, particularly from the recently launched disease resistant eggs and from an increase in the value of biological assets as a result of growing sales and increasing capacity at the Group's new land based salmon egg facility in Norway.
The division also benefitted from an increase in sales to Chile from Iceland following the launch of Benchmark Genetics Chile (BGC) under our joint venture with AquaChile. In the short period since launch, BGC has achieved market recognition creating a good platform for it to pursue its future independent strategy. Following the agreement with AgroSuper to exit the JV, Benchmark will, in the coming weeks, wholly own a standalone and established breeding facility in Chile where it will continue its work to develop local broodstock with high value genetic traits. In the short term, the Group will continue to export salmon eggs from its operation in Iceland to satisfy demand in Chile as it continues to develop its position in this important market.
The opening of the Group's new state-of-the-art land-based facility in Salten, Norway has been well received by customers and will play an important role in the future growth and development of our genetics business.
Trials of our disease resistant shrimp continued to show good results in Asia and commercial scale trials are underway. During the period we commenced broodstock production at our facility in Florida. We continued to invest in our tilapia genetics programme.
There is significant under-penetration of professional genetics in shrimp and tilapia, and growing recognition of the potential of genetics to improve productivity without any environmental impact or animal welfare concerns.
Advanced Nutrition
As mentioned in our 2018 annual report, the year commenced with challenging conditions in the global shrimp markets which affected sales volumes in Advanced Nutrition. On the supply side, the market environment caused deep discounting of CIS artemia, affecting demand for our higher quality GSL artemia where we maintain a premium positioning. These conditions prevailed through the period resulting in a decrease in sales and Adjusted EBITDA of 7% and 15% to GBP40.9m and GBP9.6m respectively mainly driven by a drop in artemia sales; sales of diet products were up by 1% versus H1 2018.
Animal Health
In Animal Health, revenues and Adjusted EBITDA improved by 73% and 23% respectively, reducing the Adjusted EBITDA loss in the division from (GBP7.9m) in H1 2018 to (GBP6.1m). The result reflects an increase in sales of Salmosan, our sea lice treatment which performed well in the period, and in toll manufacturing revenues at our vaccine facility in Braintree, where we are increasingly manufacturing vaccines for use in trials of our aqua vaccine programme.
Strategic Progress - 2019 Priorities
In January 2019, at the time of our full year results, we set out our strategic milestones for the year aligned to our five-year strategy. We are pleased to provide an update on progress against these milestones.
1. Grow in established markets from existing capacity and through partnerships
-- The commercial opening of our state-of-the-art salmon egg facility in Norway took place on time in May 2019 and the ramp-up of production is progressing as planned
-- We launched Benchmark Genetics Chile and are taking ownership of a local breeding facility to continue to build our presence in the market
2. Commercial delivery of pipeline products
-- We continued with trials in Norway for our next generation sea lice treatment as planned, which have consistently shown c.99% efficacy. Our regulatory approval process is on track
-- Our programme of trials for our sea bass/bream vaccines continued to show good results and we have continued development of our salmon vaccine portfolio
-- Options for the Group's companion animal products are still being evaluated, with the most likely outcome being the establishment of a commercialisation partnership
3. Focused investment in markets that leverage the Group platform
-- Our shrimp genetics programme leverages our expertise in genetics and our position in the shrimp hatcheries market through Advanced Nutrition. We established a production facility in Florida and are investing to establish multiplication centres in Asia through joint ventures with local partners, starting with Thailand
Financial Review
Group revenue for the period increased by 3.4% to GBP78.3m (H1 2018: GBP75.7m) driven by revenue growth in Animal Health, Genetics and all other segments (Knowledge Services) of 73%, 8% and 11% respectively. This was offset partially by revenue falling in Advanced Nutrition by 7%.
Adjusted EBITDA (earnings before interest, tax, depreciation, amortisation, impairment, exceptional items and acquisition related expenditure) which is used by management as the primary measure of financial performance as it provides a more meaningful measure of the underlying performance of the Group, increased to GBP7.5m (H1 2018: GBP6.0m). The increase arose principally from increased sales, positive movement in biological assets and a shift in mix towards higher margin products across the business. This was offset by the reduction in contribution from Advanced Nutrition as a result of challenging market conditions and by an increase in operating expenses related to the strengthening of management to ensure delivery of key strategic priorities.
Overall investment in R&D (expensed and capitalised) increased from GBP7.8m to GBP8.5m. The increase is a result of an increase in the level of capitalised development costs as the new products progress through the development phase, and expensed R&D was in line with the previous half year.
The Group's operating loss of GBP6.3m is the same as the prior period. Depreciation and Impairment during the period increased by GBP1.6m to GBP4.8m. GBP0.7m of the increase was a direct result of recent investment in production capacity and GBP0.6m relates to the closure of one of the Group's lumpfish sites. Loss before taxation increased to GBP8.3m (H1 2018: GBP5.6m). The period was impacted by higher net finance costs of GBP2.0m (H1 2018: net finance income GBP0.7m) resulting both from increased net debt during the year and from the impact of the foreign exchange gain of GBP1.6m arising from the revaluation of USD denominated debt in H1 2018; the comparative gain in H1 2019 was GBP0.1m.
The loss for the period was GBP9.1m (H1 2018: profit GBP3.6m). H1 2018 profit arose from an exceptional tax credit of GBP9.2m due to a decrease in the tax rates in Belgium from 34% to 25% which reduced the deferred tax liability on the intangible assets from the INVE acquisition. Loss per share was 1.71p (H1 2018: earnings 0.67p).
Net debt increased to GBP65.5m (FY 2018: GBP55.7m; H1 2018: GBP41.3m). The movement in the half year arose as cashflow from operations of GBP4.1m was offset by a payment of USD8.75m relating to deferred consideration for the salmon genetics JV in Chile, investments in tangible and intangible capital expenditure of GBP3.7m and GBP3.1m respectively, tax payments of GBP1.2m and interest payments of GBP2.0m. Capital additions consisted largely of maintenance capital expenditure spread across the Group and intangible capital expenditure related to capitalised development costs mainly relating to the next generation sea lice treatment programme.
Outlook and Summary
Conditions in the Group's core markets remain mixed with salmon benefitting from growing demand and stable prices, while overstocking in the shrimp market has resulted in depressed prices and a decrease in production levels amongst our customers, affecting demand for our products.
Despite prevailing market conditions, we achieved revenue and Adjusted EBITDA growth in the first half. We will continue to implement operational and structural efficiency initiatives and we expect the Group to deliver broadly in line with market expectations for the full year.
The long term drivers and opportunities in our markets continue to be strong and we have made significant progress in the development of our major products, in the conversion of certain facilities from investment to commercial production phase, and in the implementation of key efficiency initiatives which bring further focus on the opportunities with the greatest potential returns.
Independent Review Report to Benchmark Holdings plc
Conclusion
We have been engaged by the company to review the condensed set of financial statements in the half-yearly report for the six months ended 31 March 2019 which comprises the consolidated income statement, the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated cash flow statement and the related explanatory notes.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly report for the six months ended 31 March 2019 is not prepared, in all material respects, in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRSs) as adopted by the EU and the AIM Rules
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
The impact of uncertainties due to the UK exiting the European Union on our review
Uncertainties related to the effects of Brexit are relevant to understanding our review of the condensed financial statements. Brexit is one of the most significant economic events for the UK, and at the date of this report its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. An interim review cannot be expected to predict the unknowable factors or all possible future implications for a company and this is particularly the case in relation to Brexit.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly report in accordance with the AIM Rules.
As disclosed in note 2, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU. The directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly report based on our review
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.
Frances Simpson
for and on behalf of KPMG LLP
Chartered Accountants
1 Sovereign Square, Sovereign Street, Leeds, LS1 4DA
25 June 2019
Consolidated Income Statement
for the 6 months ended 31 March 2019
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2019 2018 2018
Notes (unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
------------------------------------------- ------ -------------- -------------------- ---------------
Revenue 8 78,251 75,714 151,467
Cost of sales (40,350) (41,637) (77,447)
------------------------------------------- ------
Gross profit 37,901 34,077 74,020
Research and development costs (5,619) (5,621) (12,040)
Other operating costs (24,524) (22,178) (44,600)
Share of loss of equity-accounted
investees, net of tax (265) (231) (362)
------------------------------------------- ------ -------------- -------------------- ---------------
Adjusted EBITDA(2) 7,493 6,047 17,018
Exceptional including acquisition
related items 9 - - (1,239)
------------------------------------------- ------ -------------- -------------------- ---------------
EBITDA(1) 7,493 6,047 15,779
Depreciation and impairment 12 (4,778) (3,148) (6,841)
Amortisation and impairment 13 (9,003) (9,153) (18,002)
------------------------------------------- ------ -------------- -------------------- ---------------
Operating loss (6,288) (6,254) (9,064)
Finance cost (2,451) (1,069) (4,927)
Finance income 409 1,730 332
------------------------------------------- ------ -------------- -------------------- ---------------
Loss before taxation (8,330) (5,593) (13,659)
Tax on loss 10 (752) 9,164 9,270
------------------------------------------- ------ -------------- -------------------- ---------------
(Loss)/profit for the period (9,082) 3,571 (4,389)
------------------------------------------- ------ -------------- -------------------- ---------------
(Loss)/profit for the period attributable
to:
- Owners of the parent (9,528) 3,492 (5,009)
- Non-controlling interest 446 79 620
------------------------------------------- ------ -------------- -------------------- ---------------
(9,082) 3,571 (4,389)
------------------------------------------- ------ -------------- -------------------- ---------------
Basic (loss)/earnings per share
(pence) 11 (1.71) 0.67 (0.94)
Diluted (loss)/earnings per share
(pence) 11 (1.71) 0.66 (0.94)
1 EBITDA - Earnings before interest, tax, depreciation and amortisation
2 Adjusted EBITDA - EBITDA before exceptional and acquisition related items
Consolidated Statement of Comprehensive Income
for the 6 months ended 31 March 2019
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
------------------------------------------ --- -------------- -------------- ---------------
(Loss)/profit for the period (9,082) 3,571 (4,389)
Other comprehensive income
Items that are or may be reclassified
subsequently to profit or loss
Foreign exchange translation differences (7,472) (10,318) 7,624
Cash flow hedges - changes in fair
value (159) - -
Cash flow hedges - reclassified to
profit or loss 12 - -
Total comprehensive income for the
period (16,701) (6,747) 3,235
----------------------------------------------- -------------- -------------- ---------------
Total comprehensive income for the
period attributable to:
- Owners of the parent (16,732) (6,864) 2,546
- Non-controlling interest 31 117 689
----------------------------------------------- -------------- ---------------
(16,701) (6,747) 3,235
---------------------------------------------- -------------- -------------- ---------------
Consolidated Balance Sheet
as at 31 March 2019
As at As at As at
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
Notes GBP000 GBP000 GBP000
------------------------------- ------ ------------ ------------ --------------
Assets
Non-current assets
Property, plant and equipment 12 94,392 89,961 99,527
Intangible assets 13 315,563 310,723 325,386
Equity-accounted investees 17,022 2,749 17,457
Other investments 34 112 29
Biological and agricultural
assets 4,483 4,924 8,502
Trade and other receivables 4,140 - 4,145
Total non-current assets 435,634 408,469 455,046
------------------------------- ------ ------------ ------------ --------------
Current assets
Inventories 21,630 21,618 20,483
Biological and agricultural
assets 17,709 13,612 11,892
Trade and other receivables 36,960 32,991 41,337
Cash and cash equivalents 23,832 21,869 24,090
Total current assets 100,131 90,090 97,802
------------------------------- ------ ------------ ------------ --------------
Total assets 535,765 498,559 552,848
------------------------------- ------ ------------ ------------ --------------
Liabilities
Current liabilities
Trade and other payables (36,081) (34,133) (45,680)
Loans and borrowings 14 (1,685) (558) (898)
Corporation tax liability (4,408) (5,716) (2,629)
Provisions (70) (429) (70) Total current liabilities (42,244) (40,836) (49,277) ------------------------------- ------ ------------ ------------ -------------- Non-current liabilities Loans and borrowings 14 (87,677) (62,627) (78,868) Other payables (1,202) (1,232) (1,219) Deferred tax (38,522) (41,134) (41,637) Total non-current liabilities (127,401) (104,993) (121,724) ------------------------------- ------ ------------ ------------ -------------- Total liabilities (169,645) (145,829) (171,001) ------------------------------- ------ ------------ ------------ -------------- Net assets 366,120 352,730 381,847 ------------------------------- ------ ------------ ------------ -------------- Issued capital and reserves attributable to owners of the parent Share capital 3 558 522 557 Additional paid-in capital 358,044 339,431 357,894 Capital redemption reserve 5 5 5 Retained earnings (36,958) (20,376) (28,240) Hedging reserve (147) - - Foreign exchange reserve 38,896 28,042 45,953 Equity attributable to owners of the parent 360,398 347,624 376,169 Non-controlling interest 5,722 5,106 5,678 ------------------------------- ------ Total equity and reserves 366,120 352,730 381,847 ------------------------------- ------ ------------ ------------ --------------
The notes on the following pages are an integral part of this interim consolidated financial information
Consolidated Statement of Changes in Equity
for the 6 months ended 31 March 2019
Total
attributable
to equity
Share holders Non-
Share premium Other Retained of controlling Total
capital reserve reserves earnings parent interest equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
As at 30 September 2017
(audited) 522 339,431 38,403 (24,742) 353,614 4,971 358,585
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
Comprehensive income
for
the year
(Loss)/profit for the
year - - - (5,009) (5,009) 620 (4,389)
Other comprehensive
income - - 7,555 - 7,555 69 7,624
Total comprehensive
income
for the year - - 7,555 (5,009) 2,546 689 3,235
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
Contributions by and
distributions
to owners
Share issue 35 18,463 - - 18,498 - 18,498
Share based payment - - - 1,511 1,511 - 1,511
Total contributions by
and distributions to
owners 35 18,463 - 1,511 20,009 - 20,009
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
Changes in ownership
Acquisition of NCI
without
a change in control - - - - - 18 18
Total changes in
ownership
interests - - - - - 18 18
Total transactions with
owners of the Company 35 18,463 - 1,511 20,009 18 20,027
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
As at 30 September 2018
(audited) 557 357,894 45,958 (28,240) 376,169 5,678 381,847
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
As at 30 September 2017
(audited) 522 339,431 38,403 (24,742) 353,614 4,971 358,585
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
Comprehensive income
for
the period
Profit for the period - - - 3,492 3,492 79 3,571
Other comprehensive
income - - (10,356) - (10,356) 38 (10,318)
Total comprehensive
income
for the period - - (10,356) 3,492 (6,864) 117 (6,747)
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
Contributions by and
distributions
to owners
Share based payment - - - 874 874 - 874
Total contributions by
and distributions to
owners - - - 874 874 - 874
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
Changes in ownership
Acquisition of NCI
without
a change in control - - - - - 18 18
Total changes in
ownership
interests - - - - - 18 18
Total transactions with
owners of the Company - - - 874 874 18 892
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
As at 31 March 2018
(unaudited) 522 339,431 28,047 (20,376) 347,624 5,106 352,730
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
As at 30 September 2018
(audited) 557 357,894 45,958 (28,240) 376,169 5,678 381,847
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
Comprehensive income
for
the period
(Loss)/profit for the
period - - - (9,528) (9,528) 446 (9,082)
Other comprehensive
income - - (7,204) - (7,204) (415) (7,619)
Total comprehensive
income
for the period - - (7,204) (9,528) (16,732) 31 (16,701)
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
Contributions by and
distributions
to owners
Share issue 1 150 - - 151 - 151
Share based payment - - - 810 810 - 810
Total contributions by
and distributions to
owners 1 150 - 810 961 - 961
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
Changes in ownership
Disposal of subsidiary
with NCI - - - - - 13 13
Total changes in
ownership
interests - - - - - 13 13
Total transactions with
owners of the Company 1 150 - 810 961 13 974
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
As at 31 March 2019
(unaudited) 558 358,044 38,754 (36,958) 360,398 5,722 366,120
------------------------ ---------- ---------- ----------- ----------- --------------- -------------- ---------
Other reserves in this statement is an aggregation of Capital redemption reserve, Hedging reserve and Foreign exchange reserve.
Consolidated Statement of Cash Flows
for the 6 months ended 31 March 2019
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
Notes GBP000 GBP000 GBP000
----------------------------------------- ------ -------------- -------------- ---------------
Cash flows from operating activities
(Loss)/profit for the period (9,082) 3,571 (4,389)
Adjustments for:
Depreciation and impairment of
property, plant and equipment 12 4,778 3,148 6,841
Amortisation and impairment of
intangible fixed assets 13 9,003 9,153 18,002
(Gain)/loss on sale of property,
plant and equipment (27) 5 8
Finance income (409) (1,730) (332)
Finance costs 2,451 1,069 2,432
Other adjustments for non-cash
items 68 - (1,931)
Share of profit of equity-accounted
investees, net of tax 265 231 362
Foreign exchange losses/(gains) 1,016 (1,314) 2,609
Share based payment expense 810 874 1,511
Tax charge/(credit) 10 752 (9,164) (9,270)
----------------------------------------- ------ -------------- -------------- ---------------
9,625 5,843 15,843
Decrease/(increase) in trade and
other receivables 2,481 4,409 (4,355)
Increase in inventories (1,548) (1,819) (815)
Increase in biological assets (3,635) (1,369) (4,102)
Decrease in trade and other payables (1,543) (8,837) (4,026)
Decrease in provisions - (29) (388)
----------------------------------------- ------ -------------- -------------- ---------------
5,380 (1,802) 2,157
Income taxes paid (1,245) (1,119) (5,898)
----------------------------------------- ------ -------------- -------------- ---------------
Net cash flows from/(used) in operating
activities 4,135 (2,921) (3,741)
----------------------------------------- ------ -------------- -------------- ---------------
Investing activities
Purchase of investments (6,833) (377) (6,356)
Purchase of property, plant and
equipment 12 (3,734) (12,881) (25,072)
Purchase of intangibles 13 (3,113) (2,249) (7,581)
Proceeds from sale of non-current
assets 250 131 233
Interest received 178 94 261
----------------------------------------- ------ -------------- -------------- ---------------
Net cash flows used in investing
activities (13,252) (15,282) (38,515)
----------------------------------------- ------ -------------- -------------- ---------------
Financing activities
Proceeds of share issues 1 - 18,498
Proceeds from bank or other borrowings 11,035 28,273 41,206
Acquisition of non-controlling
interests - (32) (33)
Repayment of bank borrowings - (5,840) (5,815)
Cash advances and loans made to
other parties - - (4,076)
Interest and finance charges paid (2,002) (896) (2,442)
Payments to finance lease creditors (4) (212) (218)
Net cash inflow from financing
activities 9,030 21,293 47,120
----------------------------------------- ------ -------------- -------------- ---------------
Net (decrease)/increase in cash
and cash equivalents (87) 3,090 4,864
Cash and cash equivalents at beginning
of year 24,090 18,779 18,779
Effects of movements in exchange
rate on cash held (171) - 447
----------------------------------------- ------ -------------- -------------- ---------------
Cash and cash equivalents at end
of year 23,832 21,869 24,090
----------------------------------------- ------ -------------- -------------- ---------------
1. Financial information
This announcement does not constitute statutory financial statements within the meaning of the Companies Act 2006 and the interim financial information included within has not been audited.
This information has been approved for issue by the Board of Directors of Benchmark Holdings plc, a company domiciled and incorporated in the United Kingdom.
Statutory accounts for the year ended 30 September 2018 were approved by the Directors on 24 January 2019 and delivered to the Registrar of Companies. The audit report received on those accounts was unqualified and did not contain any emphasis of matter paragraph nor any statement under Section 498 of the Companies Act 2006.
2. General information and basis of preparation
The financial information set out in these interim financial statements for the six months ended 31 March 2019 and the comparative figures for the six months ended 31 March 2018 are unaudited. They have been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRS) and IFRIC interpretations issued by the International Accounting Standards Board (IASB) adopted by the European Union and the AIM Rules. They do not contain all the information required for statutory financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 September 2018, which have been prepared in accordance with IFRS as adopted by the European Union.
The interim financial statements comprise the financial statements of the Group and its subsidiaries at 31 March 2019. Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtained control, and continue to be consolidated until the date when such control ceases.
The interim financial statements incorporate the results of business combinations using the acquisition method. In the consolidated balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date.
Non-controlling interests, presented as part of equity, represent the proportion of a subsidiary's profit or loss and net assets that is not held by the Group. The total comprehensive income or loss of non-wholly owned subsidiaries is attributed to owners of the parent and to the non-controlling interests in proportion to their respective ownership interests.
On consolidation, the results of overseas operations are translated into sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations, including goodwill arising on the acquisition of those operations, are translated at the rate ruling at the reporting date. Exchange differences arising are recognised in other comprehensive income and accumulated in the foreign exchange reserve.
Exchange differences recognised in the income statement in the Group entities' separate financial statements on the translation of long-term monetary items forming part of the Group's net investment in the overseas operation concerned are reclassified to other comprehensive income and accumulated in the foreign exchange reserve on consolidation.
This is the first set of the Group's financial statements where IFRS 9 and IFRS 15 have been applied. These are described in Note 5.
The following adopted IFRSs have been issued but have not been applied by the Group in these financial statements.
IFRS 16 Leases introduces a single, on-balance sheet accounting model for lessees which has an effective date of 1 January 2019. The Group will adopt IFRS 16 on 1 October 2019.
As the Group reported GBP11.3m of undiscounted operating lease commitments at 30 September 2018, it is anticipated that the new standard will have a significant impact on the Group's reported assets and liabilities. In addition, the implementation of the standard will affect the Consolidated Income Statement and classification of cash flows. The Group has not yet quantified the potential impact of this standard. A reliable estimate of the effect is dependent on several unresolved issues and will depend on the circumstances at the time of adoption. Work is ongoing to assess the full impact of this standard and this will be provided in the Annual Report for the year ended 30 September 2019.
The adoption of other standards is not expected to have a material effect on the financial statements.
A financial review of the business is included in the Chairman's Statement.
3. Share capital
During the 6 months to 31 March 2019, the Company issued a total of 532,536 shares of 0.1p each to certain employees of the Group relating to share options granted in March 2015, July 2015 and March 2016.
On 2 October 2018 the Company issued 246,700 shares at 0.1p each at 60.8p as part consideration for the acquisition of Videntis AS.
4. Going concern
The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman's Statement.
As at 31 March 2019 the Group had net assets of GBP366.1m (30 September 2018: GBP381.8m), including cash of GBP23.8m (30 September 2018: GBP24.1m) as set out in the consolidated balance sheet. The Group made a loss for the period of GBP9.1m (12 months ending 30 September 2018: GBP4.4m).
On 24 June 2019, the Company completed a successful refinance of the existing banking facility replacing facilities of USD90m with Norwegian listed bonds valuing NOK850m (cUSD95m, cGBP75m) with an expiry date of 2023 and an associated $15m (cGBP12m) revolving credit facility available until 2022. As part of the process certain financial covenant requirements have been revised.
As at 24 June 2019, the existing banking facilities have been repaid in full with proceeds from the bond issue and drawings against the revolving credit facility were GBPnil. The most recent month end cash reserves at 31 May 2019 were GBP21.2m.
The Directors have prepared trading and cash flow forecasts for the Group covering the period to September 2020, including forecast compliance with the revised covenants. These forecasts include a number of assumptions in relation to trading performance across the Group including supply, demand and pricing of key raw materials and products, and the out-licensing of certain products in development. The forecasts also contain a number of board approved initiatives ("Structural Efficiencies programme") relating to structural and operational efficiencies to reallocate capital, reduce costs, grow margins, prioritise R&D spend, and exit from non-core activities.
The Directors have considered reasonably possible downside sensitivity scenarios, including mitigating actions within their control should these occur around deferring and reducing non-essential capital and revenue expenditure. These forecast cashflows, considering the ability and intention of the directors to implement mitigating actions should they need to, provide sufficient headroom in the forecast period.
The Directors have considered all of the factors noted above and are confident that the Group has adequate resources to continue to meet its liabilities as and when they fall due the period of 12 months from the date of approval of these interim condensed financial statements. Accordingly, the interim condensed financial statements have been prepared on a going concern basis.
5. Accounting policies
Except as described below, the accounting policies adopted are consistent with those used in preparing the consolidated financial statements for the financial year ended 30 September 2018.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total earnings.
IFRS 9 Financial Instruments is effective for periods beginning on or after 1 January 2018 and so has been adopted with effect from 1 October 2018. The standard introduced a new impairment model for financial assets and new rules for hedge accounting. For trade and other receivables, the carrying values were shown net of a provision for impairment which equate to fair value, under IFRS 9 they are carried at amortised cost less impairment due to their purpose being the collection of contract cash flows. In determining the impairment, the group has applied the simplified approach permitted. This change in measurement has had no material impact on the group's financial position.
5. Accounting policies (continued)
The group has elected to adopt the new general hedge accounting model in IFRS 9. This requires the Group to ensure that hedge accounting relationships are aligned with its risk management objectives and strategy and to apply a more qualitative and forward-looking approach to assessing hedge effectiveness. The Group uses forward foreign exchange contracts to hedge the variability in cash flows arising from changes in foreign exchange rates relating to certain foreign currency borrowings. The Group designates only the change in fair value of the spot element of the forward exchange contract as the hedging instrument in cash flow hedging relationships. The effective portion of changes in fair value of hedging instruments is accumulated in a cash flow hedge reserves as a separate component of equity.
IFRS 15 Revenue from Contracts with Customers, is effective for periods beginning on or after 1 January 2018 and so has been adopted with effect from 1 October 2018. IFRS 15 supersedes IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers and SIC 31 Revenue - Barter Transactions Involving Advertising Services. Following a detailed assessment and based on the nature of the Group's revenue streams, the adoption of the IFRS 15 did not have a material impact on the Group revenue recognition or profit.
6. Estimates
The preparation of interim financial information requires management to make certain judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual amounts may differ from these estimates.
In preparing these interim financial statements the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended 30 September 2018.
7. Segment information
Operating segments are reported in a manner consistent with the reports made to the chief operating decision maker. It is considered that the role of chief operating decision maker is performed by the Board of Directors.
The Group operates globally and for management purposes is organised into reportable segments as follows:
-- Animal Health Division - provides veterinary services, environmental services diagnostics and animal health products to global aquaculture, and manufactures licenced veterinary vaccines and vaccine components;
-- Benchmark Genetics Division - harnesses industry leading salmon breeding technologies combined with state-of-the-art production facilities to provide a range of year-round high genetic merit ova;
-- Advanced Animal Nutrition Division - manufactures and provides technically advanced nutrition and health products to the global aquaculture industry.
In addition to the above, reported as "all other segments" is the Knowledge Services division. The division provides sustainable food production consultancy, technical consultancy and assurance services and promotes sustainable food production and ethics through online news and technical publications for the international agriculture and food processing sectors and through delivery of training courses to the industries.
In order to reconcile the segmental analysis to the Consolidated Income Statement, Corporate and Inter-segment sales are also shown. Corporate represents revenues earned from recharging certain central costs to the operating divisions, together with unallocated central costs.
Measurement of operating segment profit or loss
Inter-segment sales are priced along the same lines as sales to external customers, with an appropriate discount being applied to encourage use of Group resources at a rate acceptable to local tax authorities. This policy was applied consistently throughout the current and prior period.
6 months ended 31 March 2019 (unaudited)
------------------- ------- ----------------------------------------------------------------------------------------
Advanced All
Animal Animal other Inter-segment
Health Genetics Nutrition segments Corporate sales Total
Notes GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------- ------- --------- ---------- ----------- ----------- ----------- --------------- ---------
Revenue 7,150 22,602 40,900 8,264 3,590 (4,255) 78,251
Cost of sales (6,812) (10,332) (19,526) (4,244) (172) 736 (40,350)
---------------------------- --------- ---------- ----------- ----------- ----------- --------------- ---------
Gross profit / (loss) 338 12,270 21,374 4,020 3,418 (3,519) 37,901
Research and development
costs (2,425) (1,735) (1,459) - - - (5,619)
Operating costs (4,051) (5,341) (10,348) (3,283) (5,020) 3,519 (24,524)
Share of profit
of equity-accounted
investees, net of
tax - (265) - - - - (265)
---------------------------- --------- ---------- ----------- ----------- ----------- --------------- ---------
Adjusted EBITDA (6,138) 4,929 9,567 737 (1,602) - 7,493
Exceptional 9
including
acquisition
related
items - - - - - - -
------------------- ------- --------- ---------- ----------- ----------- ----------- --------------- ---------
EBITDA (6,138) 4,929 9,567 737 (1,602) - 7,493
Depreciation and
impairment (1,356) (1,286) (771) (1,306) (59) - (4,778)
Amortisation (107) (1,030) (7,339) (527) - - (9,003)
---------------------------- --------- ---------- ----------- ----------- ----------- --------------- ---------
Operating profit
/ (loss) (7,601) 2,613 1,457 (1,096) (1,661) - (6,288)
Finance cost (2,451)
Finance income 409
Loss before taxation (8,330)
---------------------------- --------- ---------- ----------- ----------- ----------- --------------- ---------
7. Segment information (continued)
6 months ended 31 March 2018 (unaudited)
--------------------------------------------------------------------------------------
Advanced All
Animal Animal other Inter-segment
Health Genetics Nutrition segments Corporate sales Total
Notes GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------- --------- -------- ---------- ----------- ---------- ----------- --------------- ---------
Revenue 4,126 20,978 44,096 7,450 2,295 (3,231) 75,714
Cost of sales (5,417) (11,483) (21,404) (4,161) (185) 1,013 (41,637)
------------------------------ -------- ---------- ----------- ---------- ----------- --------------- ---------
Gross profit / (loss) (1,291) 9,495 22,692 3,289 2,110 (2,218) 34,077
Research and development
costs (2,682) (1,741) (1,198) - - - (5,621)
Other operating
costs (3,947) (4,666) (10,168) (2,858) (2,757) 2,218 (22,178)
Share of profit
of equity-accounted
investees, net of
tax - (231) - - - - (231)
------------------------------ -------- ---------- ----------- ---------- ----------- --------------- ---------
Adjusted EBITDA (7,920) 2,857 11,326 431 (647) - 6,047
Exceptional 9
including
acquisition
related
items - - - - - - -
------------------- --------- -------- ---------- ----------- ---------- ----------- --------------- ---------
EBITDA (7,920) 2,857 11,326 431 (647) - 6,047
Depreciation (1,016) (628) (857) (585) (62) - (3,148)
Amortisation and
impairment (123) (1,077) (7,131) (822) - - (9,153)
------------------------------ -------- ---------- ----------- ---------- ----------- --------------- ---------
Operating profit
/ (loss) (9,059) 1,152 3,338 (976) (709) - (6,254)
Finance cost (1,069)
Finance income 1,730
Loss before taxation (5,593)
------------------------------ -------- ---------- ----------- ---------- ----------- --------------- ---------
12 months ended 30 September 2018 (audited)
------------------- ------- ----------------------------------------------------------------------------------------
Advanced All
Animal Animal other Inter-segment
Health Genetics Nutrition segments Corporate sales Total
Notes GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------- ------- --------- ---------- ----------- ----------- ----------- --------------- ---------
Revenue 16,153 35,755 85,746 15,786 5,277 (7,250) 151,467
Cost of sales (13,494) (14,822) (40,998) (9,811) (440) 2,118 (77,447)
------------------- ------- --------- ---------- ----------- ----------- ----------- --------------- ---------
Gross profit /
(loss) 2,659 20,933 44,748 5,975 4,837 (5,132) 74,020
Research and
development
costs (5,593) (3,611) (2,836) - - - (12,040)
Operating costs (8,058) (9,089) (20,285) (5,772) (6,632) 5,236 (44,600)
Share of profit
of
equity-accounted
investees, net
of
tax - (362) - - - - (362)
------------------- ------- --------- ---------- ----------- ----------- ----------- --------------- ---------
Adjusted EBITDA (10,992) 7,871 21,627 203 (1,795) 104 17,018
Exceptional
including
acquisition
related
items 9 - (1,013) - - (226) - (1,239)
------------------- ------- --------- ---------- ----------- ----------- ----------- --------------- ---------
EBITDA (10,992) 6,858 21,627 203 (2,021) 104 15,779
Depreciation (2,459) (1,330) (1,679) (1,242) (131) - (6,841)
Amortisation and
impairment (108) (2,171) (14,523) (1,200) - - (18,002)
------------------- ------- --------- ---------- ----------- ----------- ----------- --------------- ---------
Operating profit
/ (loss) (13,559) 3,357 5,425 (2,239) (2,152) 104 (9,064)
Finance cost (4,927)
Finance income 332
Loss before
taxation (13,659)
------------------- ------- --------- ---------- ----------- ----------- ----------- --------------- ---------
8. Revenue
The Group's operations and main revenue streams are those described in the last annual financial statements. The Group's revenue is derived from contracts with customers.
The nature and effect of initially applying IFRS 15 on the Group's interim financial statements are disclosed in note 5.
Disaggregation of revenue
In the following tables, revenue is disaggregated by primary geographical market and by sales of goods and services. The table includes a reconciliation of the disaggregated revenue with the Group's reportable segments (see note 7).
Sale of goods and provision of services
6 months ended 31 March 2019 (unaudited)
---------------- ----------------------------------------------------------------------------------------
Advanced All
Animal Animal other Inter-segment
Health Genetics Nutrition segments Corporate sales Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
---------------- --------- ---------- ------------ ----------- ----------- --------------- --------
Sale of goods 4,120 20,692 40,871 642 - - 66,325
Provision
of services 2,787 1,807 - 7,259 73 - 11,926
Inter-segment
sales 243 103 29 363 3,517 (4,255) -
----------------- --------- ---------- ------------ ----------- ----------- --------------- --------
7,150 22,602 40,900 8,264 3,590 (4,255) 78,251
---------------- --------- ---------- ------------ ----------- ----------- --------------- --------
6 months ended 31 March 2018 (unaudited)
---------------- ----------------------------------------------------------------------------------------
Advanced All
Animal Animal other Inter-segment
Health Genetics Nutrition segments Corporate sales Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
---------------- --------- ---------- ------------ ----------- ----------- --------------- --------
Sale of goods 1,994 19,326 44,065 876 - - 66,261
Provision
of services 2,032 1,475 - 5,868 78 - 9,453
Inter-segment
sales 100 177 31 706 2,217 (3,231) -
----------------- --------- ---------- ------------ ----------- ----------- --------------- --------
4,126 20,978 44,096 7,450 2,295 (3,231) 75,714
---------------- --------- ---------- ------------ ----------- ----------- --------------- --------
12 months ended 30 September 2018 (audited)
---------------- ----------------------------------------------------------------------------------------
Advanced All
Animal Animal other Inter-segment
Health Genetics Nutrition segments Corporate sales Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
---------------- --------- ---------- ------------ ----------- ----------- --------------- --------
Sale of goods 11,093 29,578 85,581 2,036 - - 128,288
Provision
of services 4,855 5,856 - 12,320 148 - 23,179
Inter-segment
sales 205 321 165 1,430 5,129 (7,250) -
----------------- --------- ---------- ------------ ----------- ----------- --------------- --------
16,153 35,755 85,746 15,786 5,277 (7,250) 151,467
---------------- --------- ---------- ------------ ----------- ----------- --------------- --------
8. Revenue (continued)
Primary geographical markets
6 months ended 31 March 2019 (unaudited)
----------------- ----------------------------------------------------------------------------------------
Advanced All
Animal Animal other Inter-segment
Health Genetics Nutrition segments Corporate sales Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------- --------- ---------- ------------ ----------- ----------- --------------- --------
Faroe Islands 126 4,416 1 - - - 4,543
Greece 17 44 4,132 - - - 4,193
Norway 961 11,439 205 - - - 12,605
India - - 9,645 - - - 9,645
UK 1,328 2,426 129 4,731 73 - 8,687
Singapore 17 - 5,449 - - - 5,466
Ecuador - - 4,342 - - - 4,342
Rest of Europe 1,466 1,839 5,047 2,437 - - 10,789
Rest of World 2,992 2,334 11,921 734 - - 17,981
Inter-segment
sales 243 104 29 362 3,517 (4,255) -
------------------ --------- ---------- ------------ ----------- ----------- --------------- --------
7,150 22,602 40,900 8,264 3,590 (4,255) 78,251
----------------- --------- ---------- ------------ ----------- ----------- --------------- --------
6 months ended 31 March 2018 (unaudited)
----------------- ----------------------------------------------------------------------------------------
Advanced All
Animal Animal other Inter-segment
Health Genetics Nutrition segments Corporate sales Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------- --------- ---------- ------------ ----------- ----------- --------------- --------
Faroe Islands 154 3,252 2 - - - 3,408
Greece - 74 3,991 3 - - 4,068
Norway (676) 11,859 324 - - - 11,507
India 7 - 10,266 - - - 10,273
UK 1,197 2,482 74 4,070 78 - 7,901
Singapore 2 - 5,276 - - - 5,278
Ecuador - - 4,312 - - - 4,312
Rest of Europe 1,163 2,105 6,013 2,188 - - 11,469
Rest of World 2,179 1,029 13,807 483 - - 17,498
Inter-segment
sales 100 177 31 706 2,217 (3,231) -
------------------ --------- ---------- ------------ ----------- ----------- --------------- --------
4,126 20,978 44,096 7,450 2,295 (3,231) 75,714
----------------- --------- ---------- ------------ ----------- ----------- --------------- --------
12 months ended 30 September 2018 (audited)
----------------- ----------------------------------------------------------------------------------------
Advanced All
Animal Animal other Inter-segment
Health Genetics Nutrition segments Corporate sales Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------- --------- ---------- ------------ ----------- ----------- --------------- --------
Faroe Islands 158 6,778 7 - - - 6,943
Greece 205 118 7,894 3 - - 8,220
Norway 2,264 16,277 698 44 - - 19,283
India 10 - 18,180 - - - 18,190
UK 2,941 2,733 238 8,684 148 - 14,744
Singapore 2 - 11,746 - - - 11,748
Ecuador - - 9,253 - - - 9,253
Rest of Europe 3,071 4,717 9,535 4,193 - - 21,516
Rest of World 7,297 4,811 28,030 1,432 - - 41,570
Inter-segment
sales 205 321 165 1,430 5,129 (7,250) -
------------------ --------- ---------- ------------ ----------- ----------- --------------- --------
16,153 35,755 85,746 15,786 5,277 (7,250) 151,467
----------------- --------- ---------- ------------ ----------- ----------- --------------- --------
9. Exceptional including acquisition related items
Items that are material because of their size or nature, non-recurring and whose significance is sufficient to warrant separate disclosure and identification within the consolidated financial statements are referred to as exceptional items. The separate reporting of exceptional items helps to provide an understanding of the Group's underlying performance.
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
---------------------------- --- --------------- --------------- ---------------
Acquisition related items - - 1,239
Total exceptional items - - 1,239
--------------------------------- --------------- -------------- ---------------
Acquisition related items are costs incurred in investigating and acquiring new businesses. During the 12 months ended 30 September 2018, the contingent consideration element of the provision for deferred consideration held for previous acquisitions was recalculated considering up to date performance of those acquisitions and the projected performance for the final 3 months of the earn out period (which ended on 31 December 2017) against the relevant sales volumes and revenue targets. As a result, GBP206,000 was released in the year.
10. Taxation
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------------------------- --- -------------- -------------- ---------------
Current tax expense
Analysis of charge in period
Current tax:
Current income tax expense
on profits for the period 3,239 3,950 6,041
Adjustment in respect of prior
periods - - (309)
------------------------------------- -------------- -------------- ---------------
Total current tax 3,239 3,950 5,732
Deferred tax expense
Origination and reversal of
temporary differences (2,487) (13,114) (14,990)
Deferred tax movements in
respect of prior periods - - (12)
------------------------------------- -------------- -------------- ---------------
Total deferred tax (2,487) (13,114) (15,002)
Total tax charge/(credit) 752 (9,164) (9,270)
------------------------------------- -------------- -------------- ---------------
The reasons for the difference between the actual tax charge for the period and the standard rate of corporation tax in the United Kingdom applied to the result for the period are as follows:
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
---------------------------------- --- -------------- -------------- ---------------
Accounting loss before income
tax (8,330) (5,593) (13,659)
Expected tax credit based
on the standard rate of UK
corporation tax at the domestic
rate of 19% (2018: 19%) (1,583) (1,063) (2,595)
Income not taxable - - (155)
Expenses not deductible for
tax purposes 305 186 686
Deferred tax not recognised 2,890 2,245 4,788
Adjustment to tax charge in
respect of prior periods - - (321)
Effects of changes in tax
rates - (10,496) (10,496)
Different tax rates in overseas
jurisdictions (860) (36) (1,177)
Total tax charge/(credit) 752 (9,164) (9,270)
--------------------------------------- -------------- -------------- ---------------
Deferred tax is calculated at the substantively enacted rates, at which the temporary differences and tax losses are expected to reverse, in the territories in which they arose. Reductions in the corporation tax rate in Belgium were substantively enacted in the previous year. The main rate of corporation tax was reduced from 34% to 29.58% effective from 1 January 2018 and to 25% from 1 January 2020.
11. Earnings/loss per share
Basic earnings/loss per share is calculated by dividing the profit or loss attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares in issue during the period.
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
----------------------------------------- -------------- -------------- ---------------
Loss/(profit) attributable to equity
holders of the parent (GBP000) (9,528) 3,492 (5,009)
Weighted average number of shares
in issue (thousands) 557,522 522,371 531,651
Basic (loss)/earnings per share (pence) (1.71) 0.67 (0.94)
Diluted earnings/loss per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. This is done by calculating the number of shares that could have been acquired at fair value (determined as the average market price of the Company's shares for the period) based on the monetary value of the subscription rights attached to outstanding share options and warrants. The number of shares calculated above is compared with the number of shares that would have been issued assuming the exercise of the share options and warrants.
Therefore, the Company is required to adjust the earnings per share calculation in relation to the share options that are in issue under the Company's share-based incentive schemes, and outstanding warrants, as follows:
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
-------------------------------------- -------------- -------------- ---------------
(Loss)/profit attributable to equity
holders of the parent (GBP000) (9,528) 3,492 (5,009)
Weighted average number of shares
in issue (thousands) - basic 557,522 522,371 531,651
Adjustment for share options and
awards (thousands) - 2,848 -
Weighted average number of shares
in issue (thousands) - diluted 557,522 525,219 531,651
-------------------------------------- -------------- -------------- ---------------
Diluted (loss)/earnings per share
(pence) (1.71) 0.66 (0.94)
12. Property, plant and equipment
Assets
Freehold in the Long Term Office
Land course Leasehold Plant Equipment
and of Property and E commerce and
Buildings construction Improvements Machinery Infra-structure Fixtures Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------ ----------- --------------- -------------- ----------- ---------------- ----------- --------
Cost
Balance at 1
October
2017 32,956 27,152 4,281 25,591 247 1,227 91,454
Additions 954 8,776 736 2,046 - 369 12,881
Reclassification (2,450) - (99) 2,610 - (61) -
Increase
/(decrease)
through
transfers from
assets in the
course
of construction 71 (5,057) 3,534 1,452 - - -
Exchange
differences 385 (609) (107) 138 - 13 (180)
Disposals - (10) (61) (492) - (113) (676)
Balance at 31
March
2018 31,916 30,252 8,284 31,345 247 1,435 103,479
------------------ ----------- --------------- -------------- ----------- ---------------- ----------- --------
Balance at 1
April
2018 31,916 30,252 8,284 31,345 247 1,435 103,479
Additions 724 8,929 138 1,547 - 853 12,191
Increase
/(decrease)
through
transfers from
assets in the
course
of construction - (3) - 3 - - -
Exchange
differences (189) 1,182 117 337 - 104 1,551
Disposals (23) - (2) (144) - (111) (280)
Balance at 30
September
2018 32,428 40,360 8,537 33,088 247 2,281 116,941
------------------ ----------- --------------- -------------- ----------- ---------------- ----------- --------
Balance at 1
October
2018 32,428 40,360 8,537 33,088 247 2,281 116,941
Additions 870 340 65 2,162 - 297 3,734
Increase
/(decrease)
through
transfers from
assets in the
course
of construction 117 (341) 2 215 - 7 -
Exchange
differences (1,542) (2,210) (86) (644) - (51) (4,533)
Disposals - (146) (121) (1,019) - (56) (1,342)
Balance at 31
March
2019 31,873 38,003 8,397 33,802 247 2,478 114,800
------------------ ----------- --------------- -------------- ----------- ---------------- ----------- --------
Accumulated
Depreciation
Balance at 1
October
2017 2,414 - 1,211 6,388 244 352 10,609
Depreciation
charge
for the year 666 - 413 1,923 1 145 3,148
Reclassification - - (5) 25 - (20) -
Exchange
differences 180 - (47) 150 - 18 301
Disposals - - (96) (436) - (8) (540)
Balance at 31
March
2018 3,260 - 1,476 8,050 245 487 13,518
------------------ ----------- --------------- -------------- ----------- ---------------- ----------- --------
Balance at 1
April
2018 3,260 - 1,476 8,050 245 487 13,518
Depreciation
charge
for the year 603 - 430 2,487 1 172 3,693
Exchange
differences 13 - 81 209 - 75 378
Disposals (21) - 2 (79) - (77) (175)
Balance at 30
September
2018 3,855 - 1,989 10,667 246 657 17,414
------------------ ----------- --------------- -------------- ----------- ---------------- ----------- --------
Balance at 1
October
2018 3,855 - 1,989 10,667 246 657 17,414
Depreciation
charge
for the period 1,146 - 446 2,340 1 227 4,160
Impairment charge
for
the period - - - 618 - - 618
Exchange
differences (427) - (22) (318) - 2 (765)
Disposals - - (24) (935) - (60) (1,019)
Balance at 31
March
2019 4,574 - 2,389 12,372 247 826 20,408
------------------ ----------- --------------- -------------- ----------- ---------------- ----------- --------
Net book value
At 31 March 2019 27,299 38,003 6,008 21,430 - 1,652 94,392
------------------ ----------- --------------- -------------- ----------- ---------------- ----------- --------
At 30 September
2018 28,573 40,360 6,548 22,421 1 1,624 99,527
------------------ ----------- --------------- -------------- ----------- ---------------- ----------- --------
At 31 March 2018 28,656 30,252 6,808 23,295 2 948 89,961
------------------ ----------- --------------- -------------- ----------- ---------------- ----------- --------
The impairment in plant and machinery assets relates to a facility at FAI Aquaculture Limited following a decision to close one of its operating sites.
13. Intangible assets
Patents
and Intell- Devel-
Trade- ectual Customer opment
Websites Goodwill marks Property Lists Contracts Licences Genetics costs Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------- --------- --------- -------- --------- --------- ---------- --------- --------- ------- ---------
Cost or
valuation
Balance at 1
October
2017 597 149,941 811 134,638 6,784 9,510 34,664 26,245 3,531 366,721
Additions - on
acquisition - 51 - - - - - - - 51
Additions -
externally
acquired 19 - 10 44 - - - - - 73
Additions -
internally
developed - - - - - - - - 2,176 2,176
Exchange
differences - (5,286) (3) (5,685) (233) (170) (1,654) (57) (61) (13,149)
Balance at 31
March 2018 616 144,706 818 128,997 6,551 9,340 33,010 26,188 5,646 355,872
---------------- --------- --------- -------- --------- --------- ---------- --------- --------- ------- ---------
Balance at 1
April
2018 616 144,706 818 128,997 6,551 9,340 33,010 26,188 5,646 355,872
Additions -
externally
acquired 67 - 20 74 - - - - 139 300
Additions -
internally
developed - - - - - - - - 5,002 5,002
Disposals - (447) - - - - - - - (447)
Exchange
differences 2 8,457 9 9,364 382 190 2,672 (2) 118 21,192
Balance at 30
September
2018 685 152,716 847 138,435 6,933 9,530 35,682 26,186 10,905 381,919
---------------- --------- --------- -------- --------- --------- ---------- --------- --------- ------- ---------
Balance at 1
October
2018 685 152,716 847 138,435 6,933 9,530 35,682 26,186 10,905 381,919
Additions - on
acquisition - - - 318 - - - - - 318 Additions - externally acquired 35 - 36 61 - - 38 - - 170 Additions - internally developed - - - - - - - - 2,943 2,943 Disposals - (84) - - - - - - - (84) Exchange differences (4) (2,383) (5) (213) (6) (323) (417) (1,940) (3) (5,294) Balance at 31 March 2019 716 150,249 878 138,601 6,927 9,207 35,303 24,246 13,845 379,972 ---------------- --------- --------- -------- --------- --------- ---------- --------- --------- ------- --------- Accumulated amortisation and impairment Balance at 1 October 2017 531 276 631 22,902 1,028 5,506 4,899 1,811 - 37,584 Amortisation charge for the period 9 - 47 6,303 200 696 1,062 389 - 8,706 Impairment loss - 447 - - - - - - - 447 Exchange differences - - (1) (1,099) (18) (79) (387) (4) - (1,588) Balance at 31 March 2018 540 723 677 28,106 1,210 6,123 5,574 2,196 - 45,149 ---------------- --------- --------- -------- --------- --------- ---------- --------- --------- ------- --------- Balance at 1 April 2018 540 723 677 28,106 1,210 6,123 5,574 2,196 - 45,149 Amortisation charge for the period 12 - 111 6,328 203 703 1,099 393 - 8,849 Disposals - (447) - - - - - - - (447) Exchange differences - 1 12 2,136 35 114 681 3 - 2,982 Balance at 30 September 2018 552 277 800 36,570 1,448 6,940 7,354 2,592 - 56,533 ---------------- --------- --------- -------- --------- --------- ---------- --------- --------- ------- --------- Balance at 1 October 2018 552 277 800 36,570 1,448 6,940 7,354 2,592 - 56,533 Amortisation charge for the period 15 - (261) 6,942 350 691 923 343 - 9,003 Exchange differences - - (31) (78) (1) (215) (609) (193) - (1,127) Balance at 31 March 2019 567 277 508 43,434 1,797 7,416 7,668 2,742 - 64,409 ---------------- --------- --------- -------- --------- --------- ---------- --------- --------- ------- --------- Net book value At 31 March 2019 (unaudited) 149 149,972 370 95,167 5,130 1,791 27,635 21,504 13,845 315,563 ---------------- --------- --------- -------- --------- --------- ---------- --------- --------- ------- --------- At 30 September 2018 (audited) 133 152,439 47 101,865 5,485 2,590 28,328 23,594 10,905 325,386 ---------------- --------- --------- -------- --------- --------- ---------- --------- --------- ------- --------- At 31 March 2018 (unaudited) 76 143,983 141 100,891 5,341 3,217 27,436 23,992 5,646 310,723 ---------------- --------- --------- -------- --------- --------- ---------- --------- --------- ------- ---------
The impairment loss in 2018 arose following an impairment review which showed that an amount of Goodwill, held within a subsidiary 5M Enterprises Limited for the previously acquired Old Pond business is no longer supported by discounted future cash flow projections.
13. Intangible assets (continued)
Current estimates of useful economic lives of intangible assets are as follows:
Goodwill Indefinite Patents 2 - 5 years Websites 5 years Trademarks 2 - 5 years Contracts 3 - 20 years Licences 3 - 20 years Customer lists Up to 26 years Intellectual property Up to 20 years Genetic material and breeding 10 - 40 years nuclei Development costs Up to 10 years 14. Loans and borrowings
On 30 December 2015, the Group entered into facilities consisting of a five-year revolving credit facility (expiring on 11 December 2020) of up to USD 70m secured on the assets of the parent company, UK subsidiary companies and certain overseas subsidiary companies. On 7 January 2019, the accordion facility within the Group's existing bank facility was activated raising the total facility from USD 70m to USD 90m. At 31 March 2019, USD 83.1m was drawn down on the facility. Liabilities under this facility were settled on 24 June 2019 (note 15).
At 31 March 2019 SalmoBreed Salten AS, a subsidiary company, had a loan of NOK 216 million provided by Nordea Bank Norge ASA. The loan is a five-year term loan ending November 2023 at an interest rate of 2.65% above 3-month NIBOR. In addition, SalmoBreed Salten AS has a loan of NOK 55 million provided by Innovasjon Norge. The loan is a twelve-and-a-half-year term loan ending March 2031 at an interest rate of 4.2% above Norges Bank base rate. Salmobreed Salten AS has a loan of NOK 16.75 million provided by Salten Aqua ASA (the minority shareholder) this loan attracts interest at 2.5% above 3-month NIBOR and is repayable in a minimum of 6 years but not before the bank loans.
15. Events after the reporting date
On 10 June 2019, the Group completed the dissolution of its joint venture with AquaChile in which it had a 49% ownership interest. The Group will receive back its original cash investment of USD 16.25 million (approximately GBP12.77m) in two instalments; a first payment of USD 7.5 million 10 days after completion, and the balance of USD 8.75 million to be paid six months after completion. The Group also received the IP rights, genetics material and biomass in the joint venture, and will, in the coming weeks, wholly own a standalone and established breeding facility.
On 24 June 2019, the Group completed a new senior secured floating rate listed bond issue of NOK 850 million. The bond which matures in June 2023, has a coupon of 5.25% above three months NIBOR with quarterly interest payments. On the same day the Group repaid the outstanding borrowings under its $90m five-year facility (note 14). In addition, the Group entered into new borrowing facilities, a three-and-a-half-year revolving credit facility of up to USD 15.0 million secured on assets of certain group companies. The interest rate on the facility is between 3% to 3.5% above Libor depending on leverage.
16. Alternative performance measures
Management has presented the performance measures Adjusted EBITDA, Adjusted Operating Profit and Adjusted Profit Before Tax because it monitors performance at a consolidated level and believes that these measures are relevant to an understanding of the Group's financial performance.
Adjusted EBITDA which reflects underlying profitability, is earnings before interest, tax, depreciation, amortisation, impairment, exceptional items and acquisition related expenditure and is shown on the Income Statement.
Adjusted Operating Profit is operating loss before exceptional items including acquisition related items and amortisation of intangible assets excluding development costs as reconciled below.
Adjusted Profit Before Tax is earnings before tax, amortisation and impairment of acquired intangibles, exceptional items and acquisition related expenditure as reconciled below. These measures are not defined performance measure in IFRS. The
16. Alternative Profit Measures (continued)
Group's definition of these measures may not be comparable with similarly titled performance measures and disclosures by other entities.
Reconciliation of Adjusted Operating Profit to Operating Loss
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
----------------------------------------- --- -------------- -------------- ---------------
Revenue 78,251 75,714 151,467
Cost of sales (40,350) (41,637) (77,447)
Gross profit 37,901 34,077 74,020
Research and development costs (5,619) (5,621) (12,040)
Other operating costs (24,524) (22,178) (44,600)
Depreciation (4,778) (3,148) (6,841) Amortisation of capitalised development - - - costs Share of profit of equity accounted investees net of tax (265) (231) (362) ---------------------------------------------- -------------- -------------- --------------- Adjusted operating profit 2,715 2,899 10,177 Exceptional including acquisition related items - - (1,239) Amortisation of intangible assets excluding development costs (9,003) (9,153) (18,002) ---------------------------------------------- -------------- -------------- --------------- Operating loss (6,288) (6,254) (9,064) ---------------------------------------------- -------------- -------------- ---------------
Reconciliation of Loss Before Taxation to Adjusted Profit Before Tax
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
----------------------------------- --- -------------- -------------- ---------------
Loss before taxation (8,330) (5,593) (13,659)
Exceptional including acquisition
related items - - 1,239
Amortisation of intangible assets
excluding development costs 9,003 9,153 18,002
---------------------------------------- -------------- -------------- ---------------
Adjusted profit before tax 673 3,560 5,582
---------------------------------------- -------------- -------------- ---------------
17. Net debt
Net debt is cash and cash equivalents less loans and borrowings.
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 September
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
------------------------------------ --- -------------- -------------- ---------------
Cash and cash equivalents 23,832 21,869 24,090
Loans and borrowings - current (1,685) (558) (898)
Loans and borrowings - non-current (87,677) (62,627) (78,868)
(65,530) (41,316) (55,676)
---------------------------------------- -------------- -------------- ---------------
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR LFFELRAISFIA
(END) Dow Jones Newswires
June 25, 2019 02:01 ET (06:01 GMT)
1 Year Benchmark Chart |
1 Month Benchmark Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
