Benchmark Share Discussion Threads

[dlku] 13/1/2014 23:35

-- The Group is cash generative with an extensive product pipeline to support future growth and a growing international presence

-- Benchmark has three divisions: Animal Health; Technical Publishing; and Sustainability Science

-- Its activities include the development, manufacture and commercialisation of animal health vaccines, medicines, biocides and diagnostics, with a key focus on aquaculture. The Group also provides consulting services, scientific and technical information to industry participants across the food chain

-- Clients include blue-chip multinationals such as McDonald's, M&S, Bayer and Novartis, and indicate Benchmark's world-leading status in the sustainability space

-- The group exploits the synergies between its three divisions to drive revenue and margin growth, illustrated by its recent geographic expansion into Asia

-- Success to date can be attributed to the early decision to become part of the development of the rapidly emerging global aquaculture, sustainability and technical knowledge transfer sectors

-- Benchmark's management team has an average of over 20 years' experience in their relevant business sectors, and is well positioned to identify future opportunities

Malcolm Pye, Chief Executive Officer, said:

"We are really pleased that Benchmark has been so well received. The quality and breadth of our new shareholder base is evidence to the confidence people have in our Company.

"Our goal has always been to become a world leading specialist in the development of a sustainable food chain with a particular focus on the development of aquaculture health. The AIM market will provide Benchmark with access to capital and tradable equity, enabling us to pursue a strong pipeline of potential new products and technologies and continue to build the group by acquisition. The team and I are looking forward to this exciting new chapter in Benchmark's development."







-- Over the last four years, Benchmark has achieved compound annual growth rate (CAGR) in revenue of 34 per cent and in profit after tax of 29 per cent

[hydrus] 13/1/2014 20:35

Be interesting to see what broker note says still. This could be a good long term bet but it is difficult to see what could take the share price higher in next few months let alone the very short term. Looking forward to hearing from the company also.

[stegrego] 13/1/2014 09:04

Yeah good luck those that bought in today like sheep.
Paying way more than double the price this floated for less than a month ago.

Paying 42x historic earnings with no visibility on future earnings.

[phowdo] 13/1/2014 08:51

Took profits too. Good luck all those who bought in today.

[simon gordon] 13/1/2014 08:49

I agree, it's a poor tip, c.40x and all to prove.

[hydrus] 13/1/2014 08:44

Watch it go to £1.75 now .......

[hydrus] 13/1/2014 08:42

Took the chance to sell half as almost doubled now and agree the action has gone a bit nuts

[stegrego] 13/1/2014 08:34

Maybe they are playing the price was in 2014 card and this is a 2014 NAP?
Anyway, it's a desperate tip IMO.

[simon gordon] 13/1/2014 08:31

SCSW said they were tipping it at 105p, which is rubbish, it briefly hit 105p a week last Friday.

[stegrego] 13/1/2014 08:24

Guess I should have held for one more day :)
Shows how crazy the market currently is.

[hydrus] 13/1/2014 08:22

Very little stock available could just keep on going today

[stegrego] 13/1/2014 08:21

Mental. It's probably on 30x earnings.

[hydrus] 13/1/2014 08:15

Any idea what it said? Assume it was about potential rather than existing sales/profits?

[simon gordon] 13/1/2014 08:07

Tipped in SCSW. People buying after reading one paragraph which had no figures in it.

[hydrus] 11/1/2014 11:06

FYI I was including LPH-2 which looks like end of 2016 and is another £85m or so

[hydrus] 11/1/2014 11:05

No worries - I'm looking into 2016 as well which probably explains the difference. As you say these are not certainties anyway but even with your figures it looks pretty interesting. They have a track record of being able to grow and expand sales which is good. Any idea when the broker note will be out?

[simon gordon] 11/1/2014 10:55

Vac 02 and Vac 05 look like they stretch into 2016, total value £27m.

I stand by £52m and £55.5m = £107.5m in the next two years.

It is likely that some of the products will fail or require more trials, which is always the way with a pipeline.

I don't see £230m in the next two years.

There should be a broker note out soon, so we should get some meat on the bones.

[hydrus] 11/1/2014 10:48

However I think your point about co-developed products is correct which I didn't pick up on.

[hydrus] 11/1/2014 10:46

My interpretation of the pipeline diagram. Looks to me like like its a lot more than the figure you state. In 2016 the vast majority of the pipeline is at market

[simon gordon] 11/1/2014 08:38

Hydrus,

Where in the Admission Document did you see the figure of £230m annual revenue to come to market in the next two years?

Page 16 has a timeline of the pipeline; BMK has two products which are self developed Bio 01 and Vac 01, worth £52m, they are currently in the Marketing Authorisation stage. There is no guarantee that they will make it or require more field tests, once approved it will be a multi year story to build actual sales.

The value of the other products (co-developed) in Marketing Authorisation, and expected to be cleared in the next two years, is c.£55.5m.

[hydrus] 10/1/2014 13:58

Fair point steg I'm guessing the Institutional investors were more interested in the large amount of blue chip clients and the pipeline of products at late stage of development which seems very strong. They seem to be expecting products with circa £230m annual revenue to come to market in next two years. Considering their current revenue is around what £30m you can see the potential growth prospects if they succeed. Big if of course. The point around salmosan is a fair one but this is very clearly made in the IPO documents.

[stegrego] 10/1/2014 12:10

I had a small punt at 73p which I have today sold.

The rating at 75p was approx 23x historic eps.

It is now 127p, some 65 percent higher.

That has to be approx 37x eps.

Even if they still grow at 30%, its hardly cheap.

Problem is, I dont think they will grow at 30% like historically. They make 70% of turnover and most of profits from one product.

This is where all the growth in past years has come from. The issue is that now the product is no longer exclusive to them and at least 2 new competitors are now going to be selling a generic version of this product.

That could therefore go anyway at all. They could keep most of market share plus expand or they could lose a good chunk of market share and contract.

37x times historic with an unknown future.

No thanks.

PS - market is currently in bonkers mode, so it probably wont stop it going to 200p!

[hydrus] 10/1/2014 12:04

Not sure but I suspect investors are here for the long term for the most part as it's not really an exciting company but looks to have very solid growth prospects. Kind of company I like and which are often on a high PE ratio. Heavily over subscribed float also.