We could not find any results for:
Make sure your spelling is correct or try broadening your search.
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 |
TIDMBMK
RNS Number : 6957G
Benchmark Holdings PLC
27 November 2020
27 November 2020
Information within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.
Benchmark Holdings plc
("Benchmark", the "Company" or the "Group")
Q4 Results
(3 months ended 30 September 2020)
In compliance with the terms of the Company's senior secured bond which requires it to publish quarterly financial information, Benchmark, the aquaculture biotechnology business, announces its unaudited results for the 3 months ended 30 September 2020 (the "period") . All Q4FY20 and Q4FY19 figures quoted in this announcement are based on unaudited accounts.
This morning the Company published its full year audited results for the 12 months ended 30 September 2020
which can be found on https://www.benchmarkplc.com/investors Q4 FY19 FY2019 GBPm Q4 FY20 Restated* FY 2020 Restated* -------------------------------------- -------- ----------- -------- ----------- Statutory -------------------------------------- -------- ----------- -------- ----------- Revenue from continuing operations 25.2 35.6 105.6 124.0 -------------------------------------- -------- ----------- -------- ----------- Exceptional items (1.4) (0.5) (2.1) (0.6) -------------------------------------- -------- ----------- -------- ----------- Loss before tax from continuing operations (2.9) (46.9) (22.6) (58.5) -------------------------------------- -------- ----------- -------- ----------- Loss from continuing operations (3.4) (47.1) (22.8) (59.1) -------------------------------------- -------- ----------- -------- ----------- Loss - total incl. discontinued operations (8.8) (61.5) (31.9) (83.1) -------------------------------------- -------- ----------- -------- ----------- Basic loss per share (p) (1.43) (11.07) (5.26) (15.03) -------------------------------------- -------- ----------- -------- ----------- Net debt(4) (37.6) (87.1) (37.6) (87.1) -------------------------------------- -------- ----------- -------- ----------- Adjusted -------------------------------------- -------- ----------- -------- ----------- Adjusted EBITDA(2) from continuing operations 4.6 9.7 14.5 21.3 -------------------------------------- -------- ----------- -------- ----------- Adjusted operating profit(3) 2.7 8.3 7.9 16.3 -------------------------------------- -------- ----------- -------- ----------- EBITDA(1) from continuing operations 3.3 9.2 12.4 20.8 -------------------------------------- -------- ----------- -------- -----------
(1) EBITDA is earnings/(loss) before interest, tax, depreciation and amortisation and impairment.
(2) Adjusted EBITDA is EBITDA(1) , before exceptional items and acquisition related expenditure.
(3) Adjusted Operating Profit is operating loss before exceptional items including acquisition related items and amortisation of intangible assets excluding amortisation of development costs
(4) Net debt is cash and cash equivalents less loans, borrowings and lease obligations excluding balances held for sale. Net debt includes GBP9.6m (Q4 2019: GBPnil; FY2019: GBPnil) relating to lease obligations (formerly treated as operating leases within operating expenses) which are now held on balance sheet following the adoption of IFRS 16
* FY2019 and Q4 2019 numbers have been restated to reflect changes to the ongoing continuing business during the year (note 5).
Divisional summary (Continuing operations)
GBPm Full Full year Q4 FY19 year 2019 Q4 FY20 Restated* 2020 Restated* -------------------- ---------- ----------- ------ ----------- Revenue -------------------- ---------- ----------- ------ ----------- Advanced Nutrition 12.1 22.0 59.4 76.4 -------------------- ---------- ----------- ------ ----------- Genetics 11.8 10.0 41.5 39.7 -------------------- ---------- ----------- ------ ----------- Health 1.4 3.8 5.2 8.7 -------------------- ---------- ----------- ------ ----------- Adjusted EBITDA(2) -------------------- ---------- ----------- ------ ----------- Advanced Nutrition 0.2 4.7 6.4 16.0 -------------------- ---------- ----------- ------ ----------- Genetics 4.6 4.3 14.4 10.1 -------------------- ---------- ----------- ------ ----------- Animal Health 0.2 1.4 (3.7) (2.1) -------------------- ---------- ----------- ------ -----------
(1) EBITDA is earnings/(loss) before interest, tax, depreciation and amortisation and impairment.
(2) Adjusted EBITDA is EBITDA(1) , before exceptional items and acquisition related expenditure.
* FY2019 and Q4 2019 numbers have been restated to reflect changes to the ongoing continuing business during the year (note 5).
Q4 Overview
-- Restructuring complete with programme of disposals of non-core assets raising up to GBP44m in the year; five divestments in the period
-- Significantly stronger financial position at period end - Liquidity (cash and available facility) of GBP83.2m (Q32020: GBP67m). Net debt at year end of GBP37.6m (Q32020: GBP54.7m)
-- Performance in the period reflects continuing good performance in Genetics supported by relatively stable salmon markets offset by the impact of ongoing weak shrimp markets in Advanced Nutrition.
Financial Performance
-- Revenues from continuing operations for the quarter were below the prior year resulting from:
o Continued good performance in Genetics with revenues 18% ahead of the prior year
o Advanced Nutrition impacted by weak shrimp markets as a result of Covid-19 and price competition in Artemia due to a supply imbalance, which compare unfavourably against a strong result in Q42019 due to timing of sales
o Lower revenues in Health due to lower Salmosan sales, whilst comparing unfavourably against a stronger result in Q42019 which had benefitted from trial income from BMK08 and CleanTreat(R)
-- Adjusted EBITDA from continuing operations was down reflecting lower Group revenues and margins in Advanced Nutrition which offset higher revenues and margins in Genetics and a reduction in operating costs and R&D expenses from measures taken during the Covid-19 pandemic
-- Full year Group revenues and Adjusted EBITDA from continuing operations were below the prior year reflecting lower Group revenues and margins as a result of the impact of weak shrimp markets which offset a strong performance in Genetics and a reduction in operating costs across the Group
Market environment
-- The salmon industry continues to be resilient and the sea bass / bream market is relatively stable
-- The shrimp market continues to be challenging as a result of Covid-19 with low demand and prices, and major producing countries significantly affected
-- BMK08/CleanTreat(R) on track for commercial launch in Q2 of calendar year 2021
Operational Highlights
-- Adoption of MRL opinion by the Committee for Medicinal Products for Veterinary Use ("CVMP") regarding BMK08's active pharmaceutical ingredient. The MRL opinion is an important step towards the launch of BMK08 and CleanTreat(R) on schedule for Q2 CY 2021
-- Disposal programme complete raising up to GBP44m in the year; five divestments in the period:
o FishVet to Zoetis in July 2020 for c. GBP14.5m
o Vaccine manufacturing facility to Catapult Gene and Cell Therapy in July 2020 for net proceeds of GBP12m
o Agreement to exit equine vaccine joint development programme in August 2020 for a GBP1m upfront consideration and up to GBP1m deferred
o MBO of FAI Farms in August 2020 for a nominal sum
o Exited remaining companion animal portfolio in September through the transfer of rights to a third party in exchange for potential milestone payments leading to a successful market authorisation
Enquiries
For further information, please contact: Benchmark Holdings plc Tel: 020 3696 0630 Trond Williksen, CEO Septima Maguire, CFO Ivonne Cantu, Investor Relations Numis (Broker and NOMAD) Tel: 020 7260 1000 James Black, Freddie Barnfield, Duncan Monteith MHP Communications Tel: 020 3128 8742
Katie Hunt, Reg Hoare, Alistair de Kare-Silver benchmark@mphc.com
About Benchmark
Benchmark's mission is to enable aquaculture producers to improve their sustainability and profitability.
We bring together biology and technology to develop innovative products which improve yield, quality and animal health and welfare for our customers. We do this by improving the genetic make-up, health and nutrition of their stock - from broodstock and hatchery through to nursery and grow out.
Benchmark has a broad portfolio of products and solutions, including salmon eggs, live feed (artemia), diets and probiotics and sea lice treatments. Find out more at www.benchmarkplc.com
Management Report
During Q4 2020 the Group completed five disposals and exits, substantially concluding its disposal programme which may raise up to GBP44m in total. In July 2020 the Group announced the sale of FishVet to Zoetis for c. GBP14.5m and the sale of its vaccine manufacturing facilities to Cell and Gene Therapy Catapult for net proceeds of GBP12m. In August 2020 the Group exited its consulting business FAI Farms through an MBO and its joint development equine vaccine programme which generated a GBP1m upfront payment and up to GBP1m potential deferred payment. On 30(th) September 2020 the Group exited its remaining companion animal vaccine portfolio through the transfer of rights to all future development benefits to a third party in exchange for up to GBP4.9m in potential payments subject to development and performance milestones. The Group made a GBP0.7m payment to its joint development partner which entitled it to transfer the rights.
In September 2020 we announced that the Committee for Medicinal Products for Veterinary Use ("CVMP"), a committee of the European Medicine Agency, adopted an opinion recommending the inclusion of BMK08's active pharmaceutical ingredient in fin fish as an allowed substance regarding maximum residue limits in foodstuffs of animal origin (the "MRL opinion"). The MRL opinion is an important step towards the launch of BMK08 together with the Group's water purification system CleanTreat(R) in Q2 CY 2021. The MRL opinion is without prejudice to the European Commission's decision and ratification into EU law, which represents the next milestone for BMK08 together with CleanTreat(R),and is a condition for obtaining Marketing Authorisation (MA) in Norway. Also, in Q4, we continued to prepare for the launch of BMK08 and CleanTreat(R) in Q2 calendar year 2021, developing our commercial plan and advancing the construction of a second CleanTreat(R) system.
Trading in Q4 saw a 29% reduction in revenues and an Adjusted EBITDA profit of GBP4.7m, against GBP9.7m in Q4 last year. Operating costs of GBP6.9m in Q4 were 29% below the prior period (Q4 2019: GBP9.7m) and R&D expenses of GBP1.3m were 50% down (Q3 2019: GBP2.6m). This reflects the positive impact of a Group-wide effort to reduce operating costs and R&D, and a natural reduction in marketing and travel expenses in the period as a result of the Covid-19 pandemic.
Full year revenues were GBP105.6m, 15% below the prior year (2019: GBP124.0m). Adjusted EBITDA for the year was GBP14.5m (2019: GBP21.3m) reflecting challenging markets in Advanced Nutrition, partially offset by a continued strong performance and improved margins in Genetics.
Overall, our main end markets saw a continuation of the trends reported in our Q3 announcement with weak shrimp markets, resilience in Genetics to fluctuations in the salmon industry and the sea bass/bream markets experiencing only modest impact from Covid-19.
Advanced Nutrition
Advanced Nutrition reported revenues of GBP12.1m in Q4, 45% below the prior year (Q4 2019: GBP22.0m) which had been a strong period for the business as a result of timing of sales exacerbated by ongoing weak markets in shrimp during what is traditionally a period of pond stocking. Adjusted EBITDA in Q4 was GBP0.2m (Q4 2019: GBP4.7m). Full year Adjusted EBITDA was GBP6.4m (2019: GBP16.0m).
The performance in the year reflects weak shrimp markets through the year coupled with increased competition in Artemia as a result of a supply imbalance in the market leading to significantly lower Artemia volumes and prices. Revenues in Q4 were below prior year on a product-by-product basis, with Artemia down by 48%, Diets down by 33% and Health down by 33%.
Genetics
Genetics revenues in Q4 2020 at GBP11.8m were 18% above the prior year (Q4 2019: GBP10.0m) reflecting higher egg volumes and higher revenues from genetic services partially offset by lower harvest income. Full year revenues at GBP41.5m were also up on prior year (2019: GBP39.7m).
Adjusted EBITDA for Q4 2020 of GBP4.6m was slightly higher than the prior year (Q4 2019: GBP4.3m). Adjusted EBITDA for the year of GBP14.4m was 42% higher than prior year (2019: GBP10.1m). The increase in margin and Adjusted EBITDA is due to the benefit of in-house egg production at the Group's new Salten facility replacing more expensive outsourced production and higher egg prices combined with a reduction in operating costs as part of the Group wide cost containment plan.
Animal Health
Revenues for the continuing operations in Q4 2020 were GBP1.4m (Q4 2019: GBP3.8m). The reduction in revenues reflects the fact that Q4 2019 benefitted from income associated with BMK08/CleanTreat(R) trials, as well as lower Salmosan revenues in Q4 2020. Revenues for the full year were GBP5.2m (2019: GBP8.7m).
Adjusted EBITDA in Q4 2020 was a profit of GBP0.2m (Q4 2020: GBP1.4m) following from the trend and revenue mix in the period along with higher opex costs for the ramp up of BMK08/Cleantreat. Full year Adjusted EBITDA on the continuing operations was a loss of GBP3.7m (2019: loss GBP2.1m).
Finance costs, cashflow and net debt
Net finance cost for the quarter was GBP(0.2)m (Q4 2019:GBP5.4m).The forex gain in the quarter was GBP1.8m (Q4 2019: charge GBP2.4m), and amortisation of capitalised borrowing fees was GBP0.2m (Q4 2019: GBP0.2m).
Net finance cost for the year at GBP11.7m is GBP0.3m lower than the prior year (2019: GBP12.1m).
Net debt at the quarter end was GBP37.6m (Q4 2019: GBP87.1m) after an increase in cash of GBP56.5m in the year to date. This is a result of tight control over cash during the Covid-19 pandemic together with the share raise concluded in February 2020 (GBP42m net), receipts from the dissolution of the joint venture in Chile (GBP6.9m) and net receipts from the disposals programme of GBP38.5m. The reduction in net debt is after cash outflow from operations of GBP7.2m (YTD 2019: inflow of GBP14.2m) and capex of GBP11.8m (2019: GBP15.8m). Liquidity at the end of the period was GBP83.2m providing GBP73.2m of headroom against our minimum liquidity covenant.
Consolidated Income Statement for the period ended 30 September 2020
FY 2019 Q4 2019 Q4 2020 Restated* FY 2020 Restated* All figures in GBP000's Notes (unaudited) (unaudited) (audited) (audited) ----------------------------------------- ------ -------------- -------------- ------------ ------------ Revenue 4 25,239 35,586 105,565 124,006 Cost of sales (12,317) (13,591) (50,603) (55,064) ----------------------------------------- ------ Gross profit 12,922 21,995 54,962 68,942 Research and development costs (1,307) (2,612) (7,282) (9,481) Other operating costs (6,909) (9,691) (33,337) (37,706) Share of (loss)/profit of equity-accounted investees, net of tax (55) 18 150 (414) ----------------------------------------- ------ -------------- -------------- ------------ ------------ Adjusted EBITDA(2) 4,651 9,710 14,493 21,341 Exceptional - restructuring/acquisition related items 6 (1,356) (516) (2,114) (581) ----------------------------------------- ------ -------------- -------------- ------------ ------------ EBITDA(1) 3,295 9,194 12,379 20,760 Depreciation and impairment (1,984) (1,388) (6,640) (5,054) Amortisation and impairment (4,108) (49,299) (16,613) (62,133) ----------------------------------------- ------ -------------- -------------- ------------ ------------ Operating loss (2,797) (41,493) (10,874) (46,427) Finance cost (1,934) (6,326) (12,779) (12,422) Finance income 1,782 927 1,082 368 ----------------------------------------- ------ -------------- -------------- ------------ ------------ Loss before taxation (2,949) (46,892) (22,571) (58,481) Tax on loss 7 (426) (197) (204) (640) ----------------------------------------- ------ -------------- ------------ Loss from continuing operations (3,375) (47,089) (22,775) (59,121) ----------------------------------------- ------ -------------- -------------- ------------ ------------ Discontinued operations Loss from discontinued operations, net of tax 5 (5,379) (14,410) (9,174) (23,959) ----------------------------------------- ------ -------------- -------------- ------------ ------------ (8,754) (61,499) (31,949) (83,080) ----------------------------------------- ------ -------------- -------------- ------------ ------------ Loss for the year attributable to: - Owners of the parent (9,541) (61,809) (32,923) (83,857)
- Non-controlling interest 787 310 974 777 ----------------------------------------- ------ -------------- ------------ (8,754) (61,499) (31,949) (83,080) ----------------------------------------- ------ -------------- -------------- ------------ ------------ Earnings per share Basic loss per share (pence) 8 (1.43) (11.07) (5.26) (15.03) Diluted loss per share (pence) 8 (1.43) (11.07) (5.26) (15.03) Earnings per share - continuing operations Basic loss per share (pence) 8 (0.62) (8.49) (3.80) (10.74) Diluted loss per share (pence) 8 (0.62) (8.49) (3.80) (10.74) GBP000 GBP000 GBP000 GBP000 ----------------------------------------- ------ -------------- -------------- ------------ ------------ Adjusted EBITDA from continuing operations 4,651 9,710 14,493 21,341 Adjusted EBITDA from discontinued operations 5 (2,452) (2,336) (8,726) (7,616) ----------------------------------------- ------ -------------- -------------- ------------ ------------ Total Adjusted EBITDA 2,199 7,374 5,767 13,725 ----------------------------------------- ------ -------------- -------------- ------------ ------------
(1) EBITDA - Earnings/loss before interest, tax, depreciation, amortisation and impairment
(2) Adjusted EBITDA - EBITDA before exceptional and acquisition related items
*FY 2019 and Q4 2019 numbers have been restated to reflect changes to the ongoing continuing business since the year end (note 5)
Consolidated Statement of Comprehensive Income for the period ended 30 September 2020
FY 2019 Q4 2019 Q4 2020 Restated* FY 2020 Restated* All figures in GBP000's (unaudited) (unaudited) (audited) (audited) --------------------------------------- --- -------------- -------------- ------------ ------------ Loss for the period (8,754) (61,499) (31,949) (83,080) Other comprehensive income Items that are or may be reclassified subsequently to profit or loss Foreign exchange translation differences (11,858) 9,437 (20,327) 13,919 Cash flow hedges - changes in fair value (1,029) (2,620) (5,932) (3,549) Cash flow hedges - reclassified to profit or loss 10 (10) (153) (17) Total comprehensive income for the period (21,631) (54,692) (58,361) (72,727) -------------------------------------------- -------------- -------------- ------------ ------------ Total comprehensive income for the period attributable to: - Owners of the parent (22,250) (54,928) (58,532) (73,174) - Non-controlling interest 619 236 171 447 -------------------------------------------- ------------ (21,631) (54,692) (58,361) (72,727) ------------------------------------------- -------------- -------------- ------------ ------------ Total comprehensive income for the period attributable to owners of the parent: - Continuing operations (17,099) (40,526) (50,604) (49,017) - Discontinued operations (5,151) (14,402) (7,928) (24,157) -------------------------------------------- (22,250) (54,928) (58,532) (73,174) ------------------------------------------- -------------- -------------- ------------ ------------
*FY 2019 and Q4 2019 numbers have been restated to reflect changes to the ongoing continuing business since the year end (note 5)
Consolidated Balance Sheet for the period ended 30 September 2020
30 September 30 September 2020 2019 All figures in GBP000's Notes (audited) (audited) ------------------------------------------ ------ -------------- -------------- Assets Property, plant and equipment 65,601 88,900 Right-of-use assets 10,347 - Intangible assets 247,003 275,744 Equity-accounted investees 3,690 3,453 Other investments 23 25 Biological and agricultural assets 16,621 12,469 Non-current assets 343,285 380,591 ------------------------------------------ ------ -------------- -------------- Inventories 18,926 22,609 Biological and agricultural assets 15,848 16,024 Trade and other receivables 39,371 52,136 Cash and cash equivalents 71,605 16,051 ------------------------------------------ ------ -------------- -------------- 145,750 106,820 Assets held for sale - 15,970 Current assets 145,750 122,790 ------------------------------------------ ------ -------------- -------------- Total assets 489,035 503,381 ------------------------------------------ ------ -------------- -------------- Liabilities Trade and other payables (45,692) (35,235) Loans and borrowings 9 (5,339) (3,231) Corporation tax liability (4,344) (2,703) Provisions - (404) ------------------------------------------ ------ -------------- -------------- (55,375) (41,573) Liabilities directly associated with the assets held for sale - (10,634) -------------- Current liabilities (55,375) (52,207) ------------------------------------------ ------ -------------- -------------- Loans and borrowings 9 (103,819) (99,961) Other payables (1,754) (2,004) Deferred tax (32,647) (38,743) Non-current liabilities (138,220) (140,708) ------------------------------------------ ------ -------------- -------------- Total liabilities (193,595) (192,915) ------------------------------------------ ------ -------------- -------------- Net assets 295,440 310,466 ------------------------------------------ ------ -------------- -------------- Issued capital and reserves attributable to owners of the parent Share capital 10 668 559 Additional paid-in share capital 399,601 358,044 Capital redemption reserve 5 5 Retained earnings (142,170) (110,916) Hedging reserve (9,651) (3,566) Foreign exchange reserve 40,678 60,202 Equity attributable to owners of the parent 289,131 304,328 Non-controlling interest 6,309 6,138 ------------------------------------------ ------ Total equity and reserves 295,440 310,466 ------------------------------------------ ------ -------------- --------------
The notes to these financial statements are an integral part of this consolidated financial information
Consolidated Statement of Changes in Equity for the period ended 30 September 2020
Total attributable Additional to equity paid-in holders Non- Share share Other Hedging Retained of controlling Total capital capital* reserves reserve earnings parent interest equity GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 --------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- --------- As at 1 October 2018 557 357,894 45,958 - (28,240) 376,169 5,678 381,847 --------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- --------- Comprehensive income for the period (Loss)/profit for the period - - - - (83,857) (83,857) 777 (83,080) Other comprehensive income - - 14,249 (3,566) - 10,683 (330) 10,353 Total comprehensive income for the period - - 14,249 (3,566) (83,857) (73,174) 447 (72,727) --------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- --------- Contributions by and distributions to owners Share issue 2 150 - - - 152 - 152 Share based payment - - - - 1,181 1,181 - 1,181 Total contributions by and distributions to owners 2 150 - - 1,181 1,333 - 1,333 --------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- --------- Changes in ownership Disposal of subsidiary with NCI - - - - - - 13 13 Total changes in ownership interests - - - - - - 13 13 Total transactions with owners of the Company 2 150 - - 1,181 1,333 13 1,346 As at 30 September 2019 559 358,044 60,207 (3,566) (110,916) 304,328 6,138 310,466 --------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- --------- Comprehensive income for the period (Loss)/profit for the period - - - - (32,923) (32,923) 974 (31,949) Other comprehensive income - - (19,524) (6,085) - (25,609) (803) (26,412) Total comprehensive income for the period - - (19,524) (6,085) (32,923) (58,532) 171 (58,361) --------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- --------- Contributions by and distributions to owners Share issue 109 42,869 - - - 42,978 - 42,978 Share issue costs recognised through equity - (1,312) - - - (1,312) - (1,312) Share based payment - - - - 1,669 1,669 - 1,669 Total contributions by and distributions to owners 109 41,557 - - 1,669 43,335 - 43,335 --------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- --------- Total transactions with owners of the Company 109 41,557 - - 1,669 43,335 - 43,335 As at 30 September 2020 668 399,601 40,683 (9,651) (142,170) 289,131 6,309 295,440 --------------- --------- ------------ ---------- ---------- ---------- -------------- ------------- ---------
*Other reserves in this statement is an aggregation of Capital redemption reserve and Foreign exchange reserve.
Consolidated Statement of Cash Flows for the period ended 30 September 2020
2020 2019 Notes GBP000 GBP000 --------------------------------------------- ------- --------- --------- Cash flows from operating activities Loss for the year (31,949) (83,080) Adjustments for: Depreciation and impairment of property, plant and equipment 9,138 17,227 Amortisation and impairment of intangible fixed assets 19,402 66,087 Gain on sale of property, plant and equipment (1,140) (838) Gain on sale of subsidiaries (14,120) - Finance income (111) (368) Finance costs 9,695 7,773 Other adjustments for non-cash items 200 68 Share of (profit)/loss of equity-accounted investees, net of tax (150) 414 Foreign exchange (gains)/losses (132) 5,620 Share based payment expense 1,669 1,181 Tax credit 314 111 ------------------------------------------------------ --------- --------- (7,184) 14,195 Decrease/(increase) in trade and other receivables 4,202 (12,516) Decrease/(increase) in inventories 3,741 (2,273) Increase in biological and agricultural assets (7,474) (8,593) Increase in trade and other payables 5,006 3,968 (Decrease)/increase in provisions (260) 261 ------------------------------------------------------ --------- --------- (1,969) (4,958) Income taxes paid (2,087) (4,253) ------------------------------------------------------ --------- --------- Net cash flows used in operating activities (4,056) (9,211) ------------------------------------------------------ --------- --------- Investing activities Proceeds from sale of subsidiaries, net of cash disposed of 17,487 - Acquisition of subsidiaries, net of cash acquired - (7) Purchase of investments (522) (7,020) Receipts from disposal of investments 6,932 5,942 Purchases of property, plant and equipment (5,851) (7,850) Proceeds from sales of intangible assets 261 - Purchase of intangibles (5,563) (7,964) Purchase of held for sale assets (402) - Proceeds from sale of fixed assets 16,147 1,131 Proceeds from sales of other long-term assets 1,776 - Interest received 111 447 ------------------------------------------------------ --------- --------- Net cash flows used in investing activities 30,376 (15,321) ------------------------------------------------------ --------- --------- Financing activities Proceeds of share issues 42,978 2 Share-issue costs recognised through equity (1,312) - Proceeds from bank or other borrowings 8,387 92,578 Repayment of bank or other borrowings (10,141) (71,224) Interest and finance charges paid (7,659) (5,366) Repayments of lease liabilities (2,120) (5) ------------------------------------------------------ --------- --------- Net cash inflow from financing activities 30,133 15,985 ------------------------------------------------------ --------- --------- Net (decrease)/increase in cash and cash equivalents 56,453 (8,547) Cash and cash equivalents at beginning of year 16,051 24,090 Effect of movements in exchange rate (899) 508 ------------------------------------------------------ --------- --------- Cash and cash equivalents at end of
year 71,605 16,051 ------------------------------------------------------ --------- ---------
The Consolidated Statement of Cash Flows presents cash flows from both Continuing and Discontinued operations.
Unaudited notes to the quarterly financial statements for period ended 30 September 2020
1. Basis of preparation
Benchmark Holdings plc (the 'Company') is a company incorporated domiciled in the United Kingdom. These consolidated quarterly financial statements as at and for the twelve months ended 30 September 2020 represents that of the Company and its subsidiaries (together referred to as the 'Group').
These quarterly financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, and should be read in conjunction with the Group's consolidated financial statements as at and for the year ended 30 September 2020. They do not include all of the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements. Statutory accounts for the year ended 30 September 2020 were approved by the Directors on 27 November 2020 and will be delivered to the Registrar of Companies after the AGM on [XX February 2021]. The audit report received on those accounts was unqualified and did not make a statement under section 498 of the Companies Act 2006.
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 Management Report.
As at 30 September 2020 the Group had net assets of GBP295.4m (2019: GBP310.5m), including cash of GBP71.6m (2019: GBP16.1m) as set out in the consolidated balance sheet. The Group made a loss for the year to date of GBP31.9m (2019: GBP83.1m).
As noted in the Management Report, the impact of the Covid-19 pandemic has affected parts of the Group's businesses to varying degrees. The ultimate impact of the pandemic on industry, the economy, Benchmark's markets and its businesses remains to some extent uncertain. Our main markets have experienced mixed fortunes, with weak shrimp markets, resilient salmon markets and sea bass/bream markets which have experienced modest impact from Covid-19. The Directors monitor available market analysis and believe this situation will continue into 2021. Whilst the outlook for the shrimp market retains some uncertainty, the outlook for the salmon sector (underpinning the Genetics and Health businesses) remains positive and the Directors therefore believe that large parts of the Group are well placed to deal with the uncertain global economic future ahead.
The Directors have prepared cash flow projections covering the period to September 2022 to assess the Group's trading and cash flow forecasts and the forecast compliance with the covenants included within the Group's financing arrangements. Cash resources have been boosted by a number of non-core business disposals during the year, including the successful disposal of the Improve International group, the FVG group, the vaccines manufacturing business and FAI Farms Limited during the period, and the ongoing cost base following these transactions has been significantly reduced.
The uncertainty relating to the future impact on the Group of the virus outbreak has been considered as part of the Directors' assessment of the going concern assumption. The positive preventative measures implemented by the Directors at an early stage in response to the pandemic continue to be in force where necessary. In the downside scenario analysis performed, the Directors have considered the severe but plausible impacts of Covid-19 on the Group's trading and cash flow forecasts, modelling reductions in the revenues and cash flows in Advanced Nutrition, being the segment most impacted by Covid-19 because of its exposure to global shrimp markets, alongside modelling delays to new product launches in the Health business area. Key downside sensitivities modelled include assumptions that there is no recovery in global shrimp markets until quarter three of FY21, affecting demand for Advanced Nutrition products and a three-month potential delay in the launch of BMK08, pushing commercial launch back to September 2021. Mitigating measures within the control of management were implemented early in the pandemic and remain in place and have been factored into the downside analysis performed. These measures include reductions in areas of discretionary spend, temporary furlough of certain staff or reduced working hours, deferral of capital projects and temporary hold on R&D for non-imminent products.
It is difficult to predict the overall outcome and impact of the pandemic, but under the severe but plausible downside scenarios modelled, the Group has sufficient liquidity and resources throughout the period under review whilst still maintaining adequate headroom against the borrowing covenants. The Directors therefore remain confident that the Group and the Company have adequate resources to continue to meet its liabilities as and when they fall due within the period of 12 months from the date of approval of these financial statements. Accordingly, the financial statements have been prepared on a going concern basis.
2. Accounting policies
The accounting policies adopted are consistent with those used in preparing the consolidated financial statements for the financial year ended 30 September 2020.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total earnings.
Alternative performance measures ('APMs')
The Directors measure the performance of the Group based on a range of financial measures, including measures not recognised by EU-adopted IFRS. These APMs may not be directly comparable with other companies' APMs and the Directors do not intend these as a substitute for, or superior to, IFRS measures.
Directors have presented the performance measures Adjusted EBITDA, Adjusted Operating Profit and Adjusted Profit Before Tax because it monitors performance at a consolidated level using these and believes that these measures are relevant to an understanding of the Group's financial performance (see note 11).
Use of estimates and judgements
The preparation of quarterly 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 quarterly 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 2020.
3. 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 based on the following Business Areas:
-- Genetics - 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 Nutrition - manufactures and provides technically advanced nutrition and health products to the global aquaculture industry.
-- Health - provided veterinary services, environmental services diagnostics and health products to the global aquaculture market, and manufactures licenced veterinary vaccines and vaccine components; following the divestment programme the segment now focusses on providing health products to the global aquaculture market.
In addition to the above, reported as "all other segments" is the Knowledge Services Business Area, the operations of which were disposed of or discontinued in the current and previous years. The Business Area provided 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. C orporate 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.
Segmental Revenue Q4 2020 Q4 2019 FY 2020 FY 2019 All figures in GBP000's (unaudited) (unaudited) (audited) (audited) --------------------------- --------------- --------------- ------------- ------------- Genetics 11,833 9,978 41,504 39,696 Advanced Nutrition 12,094 22,288 59,362 76,776 Health 1,371 6,618 10,799 17,742 All other segments 382 3,262 9,257 15,881 Corporate 947 1,505 4,939 6,534
Inter-segment sales (989) (1,822) (5,469) (7,890) Total 25,638 41,829 120,392 148,739 --------------------------- --------------- --------------- ------------- ------------- Segmental Adjusted EBITDA Q4 2020 Q4 2019 FY 2020 FY 2019 All figures in GBP000's (unaudited) (unaudited) (audited) (audited) ---------------------------- --------------- --------------- ------------- ------------- Genetics 4,648 4,335 14,442 10,075 Advanced Nutrition 181 4,479 6,266 15,406 Health (2,353) (848) (12,886) (10,197) All other segments 103 301 244 1,264 Corporate (380) (893) (2,299) (2,823) Total 2,199 7,374 5,767 13,725 ---------------------------- --------------- --------------- ------------- -------------
Reconciliations of segmental information to IFRS measures
Revenue Q4 2019 FY 2019 Q4 2020 Restated* FY 2020 Restated* All figures in GBP000's (unaudited) (unaudited) (audited) (audited) --------------------------------- --------------- --------------- ------------- ------------- Total revenue per segmental information 25,638 41,829 120,392 148,739 Less: revenue from discontinued operations (399) (6,243) (14,827) (24,733) --------------------------------- Consolidated revenue 25,239 35,586 105,565 124,006 --------------------------------- --------------- --------------- ------------- ------------- Reconciliation of Reportable Segments Adjusted EBITDA to Loss before taxation from continuing operations ---------------------------------------------------------------------------------------------------- Q4 2019 FY 2019 Q4 2020 Restated* FY 2020 Restated* All figures in GBP000's (unaudited) (unaudited) (audited) (audited) ------------------------------------ --------------- --------------- ------------- ------------- Total reportable segment Adjusted EBITDA 2,476 7,966 7,822 15,284 Other Segment and Corporate Adjusted EBITDA (277) (592) (2,055) (1,559) ------------------------------------ --------------- --------------- ------------- ------------- 2,199 7,374 5,767 13,725 Less: Adjusted EBITDA from discontinued operations 2,452 2,336 8,726 7,616 ------------------------------------ --------------- --------------- ------------- ------------- Adjusted EBITDA from continuing operations 4,651 9,710 14,493 21,341 Exceptional including acquisition related items (1,356) (516) (2,114) (581) Depreciation and impairment (1,984) (1,388) (6,640) (5,054) Amortisation and impairment (4,108) (49,299) (16,613) (62,133) Net finance costs (152) (5,399) (11,697) (12,054) Loss before taxation from continuing operations (2,949) (46,892) (22,571) (58,481) ------------------------------------ --------------- --------------- ------------- -------------
*See note 5.
4. Revenue
The Group's operations and main revenue streams are those described in its financial statements to 30 September 2020. The Group's revenue is derived from contracts with customers.
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 3).
Sale of goods and provision of services
3 months ended 30 September 2020 (unaudited) ---------------- ------------------------------------------------------------------------------------------------------------------- All All figures Advanced other Inter-segment in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued ---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------- Sale of goods 11,150 12,084 1,319 116 - - 24,669 123 24,546 Provision of services 645 - 48 276 - - 969 276 693 Inter-segment sales 40 13 1 (11) 946 (989) - - - -------------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------- 11,835 12,097 1,368 381 946 (989) 25,638 399 25,239 ------------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------- 3 months ended 30 September 2019 (unaudited) ---------------- ------------------------------------------------------------------------------------------------------------------- All All figures Advanced other Inter-segment Discontinued Continued in GBP000's Genetics Nutrition Health segments Corporate sales Total Restated* Restated* ---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------- Sale of goods 9,230 22,256 4,341 204 - - 36,031 1,271 34,760 Provision of services 729 1 2,112 2,911 45 - 5,798 4,972 826 Inter-segment sales 19 31 166 147 1,459 (1,822) - - - -------------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------- 9,978 22,288 6,619 3,262 1,504 (1,822) 41,829 6,243 35,586 ------------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------- 12 months ended 30 September 2020 (audited) ---------------- ------------------------------------------------------------------------------------------------------------------- All All figures Advanced other Inter-segment in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued ---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------- Sale of goods 37,555 59,301 6,529 547 - - 103,932 2,551 101,381 Provision of services 3,909 - 3,846 8,683 22 - 16,460 12,276 4,184 Inter-segment sales 40 61 424 27 4,917 (5,469) - - - -------------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------- 41,504 59,362 10,799 9,257 4,939 (5,469) 120,392 14,827 105,565 ------------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------- 12 months ended 30 September 2019 (audited) ---------------- ------------------------------------------------------------------------------------------------------------------- All All figures Advanced other Inter-segment Discontinued Continued
in GBP000's Genetics Nutrition Health segments Corporate sales Total Restated* Restated* ---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------- Sale of goods 36,270 76,707 10,582 1,168 - - 124,727 4,154 120,573 Provision of services 3,285 0 6,582 13,978 167 - 24,012 20,579 3,433 Inter-segment sales 141 69 578 735 6,367 (7,890) - - - -------------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- -------------- 39,696 76,776 17,742 15,881 6,534 (7,890) 148,739 24,733 124,006 ------------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- --------------
Primary geographical markets
3 months ended 30 September 2020 (unaudited) ---------------- ----------------------------------------------------------------------------------------------------------------- All All figures Advanced other Inter-segment in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued ---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------- Norway 5,735 186 180 - - - 6,101 - 6,101 UK 820 49 41 354 - - 1,264 354 910 Faroe Islands 1,797 - 79 - - - 1,876 - 1,876 Ecuador - 1,410 - - - - 1,410 - 1,410 India - 1,811 - - - - 1,811 - 1,811 Greece - 642 1 - - - 643 - 643 Singapore - 1,099 - - - - 1,099 - 1,099 Chile 95 4 827 - - - 926 - 926 Rest of Europe 2,098 684 17 - - - 2,799 - 2,799 Rest of World 1,250 6,199 222 38 - - 7,709 45 7,664 Inter-segment sales 40 13 1 (11) 946 (989) - - - -------------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------- 11,835 12,097 1,368 381 946 (989) 25,638 399 25,239 ------------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ------------- 3 months ended 30 September 2019 (unaudited) ---------------- ----------------------------------------------------------------------------------------------------------------- All All figures Advanced other Inter-segment Discontinued Continued in GBP000's Genetics Nutrition Health segments Corporate sales Total Restated Restated ---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ----------- Norway 4,916 85 733 7 - - 5,741 379 5,362 UK 640 80 701 1,463 45 - 2,929 2,017 912 Faroe Islands 1,924 - - - - - 1,924 - 1,924 Ecuador - 3,098 - - - - 3,098 - 3,098 India - 1,540 - - - - 1,540 - 1,540 Greece 48 1,191 - 4 - - 1,243 3 1,240 Singapore - 2,339 - - - - 2,339 - 2,339 Chile 3 - 1,628 - - - 1,631 437 1,194 Rest of Europe 1,667 488 1,168 969 - - 4,292 2,134 2,158 Rest of World 761 13,436 2,223 672 - - 17,092 1,273 15,819 Inter-segment sales 19 31 166 147 1,459 (1,822) - - - ----------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- ----------- 9,978 22,288 6,619 3,262 1,504 (1,822) 41,829 6,243 35,586 ---------------- ---------- ----------- -------- ---------- ----------- --------------- ------- -------------- -----------
Primary geographical markets (continued)
12 months ended 30 September 2020 (audited) ---------------- ------------------------------------------------------------------------------------------------------------------ All All figures Advanced other Inter-segment in GBP000's Genetics Nutrition Health segments Corporate sales Total Discontinued Continued ---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ----------- Norway 19,709 633 1,608 - - - 21,950 1,145 20,805 UK 6,402 124 1,951 6,149 22 - 14,648 7,506 7,142 Faroe Islands 6,961 3 114 - - - 7,078 - 7,078 Ecuador - 6,822 - - - - 6,822 - 6,822 India - 6,452 6 - - - 6,458 3 6,455 Greece 61 5,666 - - - - 5,727 - 5,727 Singapore - 5,356 7 - - - 5,363 7 5,356 Chile 119 21 4,083 - - - 4,223 1,159 3,064 Rest of Europe 5,421 4,554 1,566 2,549 - - 14,090 4,071 10,019 Rest of World 2,791 29,670 1,040 532 - - 34,033 936 33,097 Inter-segment sales 40 61 424 27 4,917 (5,469) - - - ----------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ----------- 41,504 59,362 10,799 9,257 4,939 (5,469) 120,392 14,827 105,565 ---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ----------- 12 months ended 30 September 2019 (audited) ---------------- ------------------------------------------------------------------------------------------------------------------ All All figures Advanced other Inter-segment Discontinued Continued in GBP000's Genetics Nutrition Health segments Corporate sales Total Restated Restated ---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ----------- Norway 19,074 466 2,656 8 - - 22,204 1,548 20,656 UK 3,397 255 2,831 8,544 167 - 15,194 10,735 4,459
Faroe Islands 8,248 2 126 - - - 8,376 - 8,376 Ecuador - 9,555 - - - - 9,555 - 9,555 India - 12,798 - - - - 12,798 - 12,798 Greece 114 7,214 20 4 - - 7,352 3 7,349 Singapore - 9,062 17 - - - 9,079 17 9,062 Chile 1,969 33 5,392 - - - 7,394 1,619 5,775 Rest of Europe 4,943 3,946 3,024 4,733 - - 16,646 7,757 8,889 Rest of World 1,810 33,376 3,098 1,857 - - 40,141 3,054 37,087 Inter-segment sales 141 69 578 735 6,367 (7,890) - - - ----------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ----------- 39,696 76,776 17,742 15,881 6,534 (7,890) 148,739 24,733 124,006 ---------------- ---------- ----------- -------- ---------- ----------- --------------- -------- -------------- ----------- 5. Discontinued activities
In June 2019, the Group announced a programme of structural efficiencies which focused on the disposal and discontinuation of non-core activities. This programme primarily included the businesses within Knowledge Services (reported within 'all other segments') and the veterinary services business within Health. These operations were presented as discontinued in the prior year and the sales of the disposal group were completed during the current year (see below) and therefore continue to be shown as discontinued.
During the year, as a continuation of the above programme, a small non-core business within Advanced Nutrition was put up for sale and sold and a business within the Corporate category was closed. A restructuring of the Health business area saw the closure of the research and development operations at two sites, and the sale of the Group's vaccine manufacturing facility and exit from non-core vaccine development collaborations. Consequently, these operations have been classified as discontinued in the current year with a corresponding restatement of the consolidated income statement and consolidated statement of comprehensive income for the year ended 30 September 2019 to reflect these changes.
Summary of restatement of FY 2019 results as reported in FY 2019 financial statements
Discontinued Continuing operations operations Loss from Loss from All figures Adjusted continuing discontinued in GBP000's Revenue EBITDA operations operations As stated in FY 2019 financial statements 127,343 12,051 (73,291) (9,789) Reclassified in Q1 (567) 899 2,841 (2,841) -------------- --------------------------- -------------------------- ----------------------------------- --------------------------- As stated in Q1 2020 financial statements 126,776 12,950 (70,450) (12,630) Reclassified in Q2 - 583 583 (583) -------------- --------------------------- -------------------------- ----------------------------------- --------------------------- As stated in Q2 2020 financial statements 126,776 13,533 (69,867) (13,213) Reclassified in Q3 - - - - -------------- --------------------------- -------------------------- ----------------------------------- --------------------------- As stated in Q3 2020 financial statements 126,776 13,533 (69,867) (13,213) Reclassified in Q4 (2,770) 7,808 10,746 (10,746) -------------- --------------------------- -------------------------- ----------------------------------- --------------------------- As stated in Q4 2020 financial statements 124,006 21,341 (59,121) (23,959) -------------- --------------------------- -------------------------- ----------------------------------- ---------------------------
Disposals of subsidiaries
On 1 January 2020, the Group divested its TomAlgae BV subsidiary for nominal proceeds. The business was in the R&D phase and required significant further investment to bring a commercial product to market.
On 23 June 2020, the Group divested its global provider of continuing professional development training for veterinary professionals, Improve International Limited and its subsidiaries ('Improve'). Total consideration for Improve could be up to GBP12.8m of which GBP11.8m has been recognised at fair value (see table below). This included contingent consideration with a fair value of GBP1.8m relating to the successful renewal of a contract (GBP0.8m) and the delivery of certain future revenues in financial years ended 30 September 2021 and 30 September 2022 (GBP1.0m). The renewal of the contract has since occurred and the GBP0.8m contingent consideration was received on 31 July 2020.
On 1 July 2020, the Group completed the sale of Fish Vet Group Limited and its subsidiaries ('FVG') to Pharmaq, part of the global animal health company Zoetis, for a total cash consideration of GBP14.5m. The sale comprises Benchmark's veterinary and diagnostic services activities in the UK, Ireland, Norway and Chile.
On 10 August 2020, the Group completed the sale of its subsidiary FAI Farms Limited ('FAI') whose activities include consultancy in the food and farming sectors, research and development in sustainable food production, and commercial farming. The business was sold to members of its management team for cash consideration of GBP0.1m.
Trade and asset disposals
During the year, the businesses of a Group's subsidiary 5M Enterprises Limited were disposed of as follows:
-- On 7 February 2020, the Group disposed of Aquaculture UK, its conferencing business, for initial consideration of GBP1.5m with up to an additional GBP0.5m depending on the revenue outcome of the next event (this contingent consideration has been valued at GBPnil at 30 September 2020 based on the uncertainty of the conference revenue particularly due to the potential impact of Covid-19).
-- Sales of the Group's various online news publications, for a combined total cash consideration of GBP0.6m have completed in the period.
-- On 31 July 2020 its publishing business was sold for cash consideration of GBP0.1m.
-- On 23 June 2020 its veterinary practice magazine and conferences business was sold for GBP0.1m.
On 31 July 2020, the Group completed the sale of its vaccine manufacturing facility and certain other assets to Cell and Gene Therapy Catapult for total cash consideration of GBP16.0m. This is part of a GBP100m investment by the UK Government to develop the Cell and Gene Therapy Catapult Manufacturing Innovation Centre to manufacture millions of doses of Covid-19 vaccines per month.
Other asset disposals
On 24 July 2020, the Group exited one of its vaccine development collaboration agreements with its partner through a mutual and amicable agreement. A settlement payment of GBP1.0m was received on 21 August, with a potential further GBP1.0m to be received contingent on certain future conditions being met. Reflecting the level of the uncertainty in meeting these conditions, the contingent consideration has been deemed to have a fair value of GBPnil.
A similar arrangement was reached to exit some other vaccine collaboration agreements on 30 September 2020, in which a settlement of CHF 0.8m (GBP0.7m) was paid to the collaboration partner in October 2020 and the rights to any future benefits of a successful vaccine were transferred to a third party in return for the receipt of potential future development and performance milestone payments of up to USD 6.0m (GBP4.9m) contingent on certain approvals and performance criteria, and subsequent royalty payments contingent on sales of successfully launched products. Reflecting the level of uncertainty in meeting of these conditions, the contingent consideration has been deemed to have a fair value of GBPnil.
Results from discontinued operations
FY 2019 Q4 2019 Q4 2020 Restated* FY 2020 Restated* All figures in GBP000's (unaudited) (unaudited) (audited) (audited) ----------------------------------- --- -------------- -------------- ------------ ------------ Revenue 399 6,243 14,827 24,733 Cost of sales (1,918) (4,641) (13,000) (17,864) ---------------------------------------- Gross profit (1,519) 1,602 1,827 6,869 Research and development costs (263) (995) (2,725) (3,369) Other operating costs (670) (2,943) (7,828) (11,116) ---------------------------------------- -------------- -------------- ------------ ------------ Adjusted EBITDA (2,452) (2,336) (8,726) (7,616) Exceptional items (34) (448) 5,086 (745) ---------------------------------------- -------------- -------------- ------------ ------------ EBITDA (2,486) (2,784) (3,640) (8,361) Depreciation and impairment (803) (8,898) (2,498) (12,173) Amortisation and impairment (2,035) (3,272) (2,789) (3,954) ---------------------------------------- -------------- -------------- ------------ ------------ Operating loss (5,324) (14,954) (8,927) (24,488) Finance costs (55) (9) (137) - ---------------------------------------- -------------- -------------- ------------ ------------ Loss before taxation (5,379) (14,963) (9,064) (24,488) Tax on loss - 553 (110) 529 ---------------------------------------- -------------- -------------- ------------ ------------ Loss from discontinued operations (5,379) (14,410) (9,174) (23,959) ---------------------------------------- -------------- -------------- ------------ ------------
*See note 5.
Exceptional items - discontinued operations
Q4 2020 Q4 2019 FY 2020 FY 2019 All figures in GBP000's (unaudited) (unaudited) (audited) (audited) ------------------------------------ --- -------------- -------------- ------------ ------------ Profit on disposal of subsidiaries 8,748 - 14,120 - Loss on disposal of trade and assets (3,703) - (1,874) - Profit on other asset disposals 271 - 271 - Other costs relating to disposals (370) - (484) - Provision for onerous lease - (349) - (349) Staff costs (958) - (1,603) (99) Cost of sales (including inventory write downs) (1,325) (99) (1,666) (297) Legal & professional fees (2,462) - (3,513) - Other (235) - (165) - Total exceptional items recognised on discontinued operations (34) (448) 5,086 (745) ----------------------------------------- -------------- -------------- ------------ ------------
Results from discontinued operations by segment
Advanced All other Nutrition Health segments Corporate Total Discontinued Q4 2020 Q4 2020 Q4 2020 Q4 2020 Q4 2020 All figures in GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) ------------------------- --- -------------- -------------- -------------- -------------- ------------------- Revenue - 8 391 - 399 Adjusted EBITDA (25) (2,516) 120 (31) (2,452) Operating profit/(loss) (25) (4,379) (889) (31) (5,324) ------------------------------ -------------- -------------- -------------- -------------- ------------------- Advanced All other Nutrition Health segments Corporate Total Discontinued Q4 2019 Q4 2019 Q4 2019 Q4 2019 Q4 2019 All figures in Restated* Restated* Restated* Restated* Restated* GBP000's (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) ------------------------- --- -------------- -------------- -------------- -------------- ------------------- Revenue 271 2,815 3,110 47 6,243 Adjusted EBITDA (194) (2,247) 192 (87) (2,336) Operating loss (2,714) (4,431) (7,722) (87) (14,954) ------------------------------ -------------- -------------- -------------- -------------- ------------------- Advanced All other Nutrition Health segments Corporate Total Discontinued All figures in FY 2020 FY 2020 FY 2020 FY 2020 FY 2020 GBP000's (audited) (audited) (audited) (audited) (audited) ------------------------- --- -------------- -------------- -------------- -------------- ------------------- Revenue 2 5,573 9,230 22 14,827 Adjusted EBITDA (143) (9,151) 749 (181) (8,726) Operating profit/(loss) (394) (11,914) 3,818 (437) (8,927) ------------------------------ -------------- -------------- -------------- -------------- ------------------- Advanced All other Nutrition Health segments Corporate Total Discontinued FY 2019 FY 2019 FY 2019 FY 2019 FY 2019 All figures in Restated* Restated* Restated* Restated* Restated* GBP000's (audited) (audited) (audited) (audited) (audited) ------------------------- --- -------------- -------------- -------------- -------------- ------------------- Revenue 400 9,025 15,141 167 24,733 Adjusted EBITDA (609) (8,102) 1,386 (291) (7,616) Operating loss (3,201) (11,776) (9,218) (293) (24,488) ------------------------------ -------------- -------------- -------------- -------------- -------------------
*See note 5.
6. Exceptional - restructuring/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.
Q4 2020 Q4 2019 FY 2020 FY 2019 All figures in GBP000's (unaudited) (unaudited) (audited) (audited) ---------------------------- --- -------------- -------------- ------------ ------------ Acquisition related items (586) 75 (586) 82 Exceptional restructuring costs (770) (591) (1,528) (663) Total exceptional items (1,356) (516) (2,114) (581) --------------------------------- -------------- -------------- ------------ ------------
Acquisition related items in Q4 2020 and FY 2020 include GBP233,000 in relation to a loan provided to a company that was a potential acquisition target and which has now been provided for, GBP353,000 was in fees in relation to investigating a potential partnership in the Health business area which was not pursued.
Exceptional restructuring expenses in Q4 2020 include GBP568,000 (FY 2020: GBP1,244,000) of staff costs relating to the Board's decision to make significant changes to the Group's management team and bring in new management, GBP202,000 of other costs (FY 2020: GBP232,000) and GBPnil (FY 2020: GBP52,000) of legal and professional costs relating to the ongoing restructuring of the group.
7. Taxation FY 2019 Q4 2019 Q4 2020 Restated* Restated* FY 2020 All figures in GBP000's (unaudited) (unaudited) (audited) (audited) -------------------------------- --- -------------- -------------- ----------- ------------ Current tax expense Analysis of charge in period Current tax: Current income tax expense on profits for the period (506) (204) (3,141) (4,258) Adjustment in respect of prior periods (836) (76) (836) (76) ------------------------------------- -------------- -------------- ----------- ------------ Total current tax charge (1,342) (280) (3,977) (4,334) Deferred tax expense Origination and reversal of temporary differences 634 888 3,490 4,499 Deferred tax movements in respect of prior periods 282 (805) 283 (805) ------------------------------------- -------------- -------------- ----------- ------------ Total deferred tax credit 916 83 3,773 3,694 Total tax charge on continuing operations (426) (197) (204) (640) ------------------------------------- -------------- -------------- ----------- ------------
*See note 5.
8. 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.
FY 2019 Q4 2019 Q4 2020 Restated* Restated* FY 2020 (unaudited) (unaudited) (audited) (audited) --------------------------------- -------------- -------------- ----------- ------------ Loss attributable to equity holders of the parent (GBP000) Continuing operations (4,162) (47,399) (23,749) (59,898) Discontinued operations (5,379) (14,410) (9,174) (23,959) Total (9,541) (61,809) (32,923) (83,857) --------------------------------- -------------- -------------- ----------- ------------ Weighted average number of shares in issue (thousands) 667,654 558,381 625,466 557,851 Basic loss per share (pence) Continuing operations (0.62) (8.49) (3.80) (10.74) Discontinued operations (0.82) (2.58) (1.46) (4.29) Total (1.43) (11.07) (5.26) (15.03) --------------------------------- -------------- -------------- ----------- ------------
*See note 5.
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. However, as any potential ordinary shares would be anti-dilutive due to losses being made there is no difference between Basic loss per share and Diluted loss per share for any of the periods being reported.
At 30 September 2020, a total of 1,426,663 potential ordinary shares have not been included within the calculation of statutory diluted loss per share for the period (30 September 2019: 2,962,168) as they are anti-dilutive. These potential ordinary shares could dilute earnings/loss per share in the future.
9. Loans and borrowings
The Group's borrowing facilities includes a USD 15m RCF provided by DNB Bank ASA (50%) and HSBC UK Bank PLC (50%). At 30 September 2020 the whole facility (USD 15m) was undrawn.
10. Share capital and share premium Additional paid-in Share share Number Capital capital Allotted, called up and fully paid GBP000 GBP000 ------------------------------------ ------------ --------- ----------- Ordinary shares of 0.1p each Balance at 30 September 2019 558,741,439 559 358,044 Exercise of share options 1,503,407 2 - Shares issued through placing and open offer 107,440,766 107 41,557 Balance at 30 September 2020 667,685,612 668 399,601 ------------------------------------ ------------ --------- -----------
During the year ended 30 September 2020, the Company issued a total of 1,503,407 shares of 0.1p each to certain employees of the Group relating to share options.
On 19 February 2020, the Company issued 91,000,000 new Ordinary Shares by way of a placing and 16,440,766 new Ordinary Shares by way of an open offer to qualifying shareholders, both at an issue price of 40p. Gross proceeds of GBP36.4m for the placing shares and GBP6.6m for the open offer shares were received 19 and 20 February 2020 respectively. Non-recurring costs of GBP1.3m were incurred in relation to the share issues and this has been charged to the share premium account.
11. Alternative profit measures and other metrics
Management has presented the performance measures Adjusted EBITDA, Adjusted Operating Profit and Adjusted Profit Before Tax because it monitors performance at a consolidated level using these 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/Loss is operating loss before exceptional items including acquisition related items and amortisation and impairment of intangible assets excluding development costs as reconciled below.
Adjusted Profit/Loss Before Tax is earnings before tax, amortisation and impairment of intangibles assets excluding development costs, exceptional items and acquisition related expenditure as reconciled below. These measures are not defined performance measures in IFRS. The 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/(Loss) to Operating Loss
Continuing operations
FY 2019 Q4 2019 Q4 2020 Restated* Restated* FY 2020 All figures in GBP000's (unaudited) (unaudited) (audited) (audited) ---------------------------------- --- -------------- -------------- ----------- ------------ Revenue 25,239 35,586 105,565 124,006 Cost of sales (12,317) (13,591) (50,603) (55,064) --------------------------------------- -------------- -------------- ----------- ------------ Gross profit 12,922 21,995 54,962 68,942 Research and development costs (1,307) (2,612) (7,282) (9,481) Other operating costs (6,909) (9,691) (33,337) (37,706) Depreciation and impairment (1,984) (1,388) (6,640) (5,054) Amortisation of capitalised - - - - development costs Share of profit of equity accounted investees net of tax (55) 18 150 (414) --------------------------------------- -------------- -------------- ----------- ------------
Adjusted Operating (Loss)/Profit 2,667 8,322 7,853 16,287 Exceptional - restructuring acquisition related items (1,356) (516) (2,114) (581) Amortisation and impairment of intangible assets excluding development costs (4,108) (49,299) (16,613) (62,133) --------------------------------------- -------------- -------------- ----------- ------------ Operating loss (2,797) (41,493) (10,874) (46,427) --------------------------------------- -------------- -------------- ----------- ------------
*See note 5.
Reconciliation of Loss Before Taxation to Adjusted Loss Before Tax
Continuing operations
FY 2019 Q4 2019 Q4 2020 Restated* Restated* FY 2020 All figures in GBP000's (unaudited) (unaudited) (audited) (audited) ----------------------------------------- --- -------------- -------------- ----------- ------------ Loss before taxation (2,949) (46,892) (22,571) (58,481) Exceptional - restructuring/acquisition related items 1,356 516 2,114 581 Amortisation and impairment of intangible assets excluding development costs 4,108 49,299 16,613 62,133 ---------------------------------------------- -------------- -------------- ----------- ------------ Adjusted Loss Before Tax 2,515 2,923 (3,844) 4,233 ---------------------------------------------- -------------- -------------- ----------- ------------
* See note 5.
Other metrics FY 2019 Q4 2019 Q4 2020 Restated* Restated* FY 2020 (unaudited) (unaudited) (audited) (audited) Total R&D Investment GBP000 GBP001 GBP000 GBP000 -------------------------------- --- -------------------------- ------------------------ ----------- ------------ Research and development costs - Continuing operations 1,307 2,612 7,282 9,481 - Discontinued operations 263 995 2,725 3,369 ------------------------------------- -------------------------- ------------------------ ----------- ------------ 1,570 3,607 10,007 12,850 Internal capitalised development costs 1,624 2,158 4,583 7,673 ----------- ------------ Total R&D investment 3,194 5,765 14,590 20,523 ------------------------------------- -------------------------- ------------------------ ----------- ------------
Liquidity
Following the refinancing in June 2019 a key financial covenant is a minimum liquidity of GBP10m, defined as cash plus undrawn facilities.
30 September 2020 All figures in GBP000's (audited) --------------------------- -------------- Cash and cash equivalents 71,605 Undrawn bank facility 11,612 83,217 --------------------------- -------------- 12. Net debt
Net debt is cash and cash equivalents less loans and borrowings excluding balances held for sale.
30 September 30 September 2020 2019 All figures in GBP000's (audited) (audited) ------------------------------------ -------------- -------------- Cash and cash equivalents 71,605 16,051 Loans and borrowings - current (5,339) (3,231) Loans and borrowings - non-current (103,819) (99,961) (37,553) (87,141) ------------------------------------ -------------- --------------
Following the adoption of IFRS 16 from 1 October 2019, an additional amount of lease liabilities of GBP9.2m (30 September 2019: GBPnil) have been included in loans and borrowings above relating to arrangements that would previously accounted for as operating leases.
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.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
FR EAFFKAAXEFAA
(END) Dow Jones Newswires
November 27, 2020 02:00 ET (07:00 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