Waiting game: Benchmark Holdings’ revenue dips as London escape bid continues

Genetics specialist Benchmark Holdings has suffered a 17 per cent dip in group revenue over the last nine months, as the company attempts to escape from the London Stock Exchange by getting bought out.

The company reported “solid performance in genetics and advanced nutrition amidst continuing soft shrimp markets” in its quarterly results, but revenue at its health business plummeted 43 per cent.

Overall, it reported an operating loss of £10.2m over the last nine months, compared to only £3m lost in the same period last year.

In January, Benchmark Holdings announced it was publicly exploring a potential sale after stating that the London Stock Exchange was undervaluing the business.

The group’s low share price “may at least in part be due to the tightly held and illiquid nature of its ordinary shares,” it said at the time.

Benchmark Holdings’ stock price surged 25 per cent in the week after the announcement, but this was only temporary, with the group up only nine per cent since the beginning of the year.

Today, the company said that while the sales process was ongoing, there were “currently no deals identified or underway” with all parts of the business operating as usual.

The drop in revenue over the quarter for the company came from a variety of factors, with health declining thanks to the decommissioning of its ‘Cleantreat’ units, while genetics dipped 18 per cent thanks to a shift from direct egg sales.

In March, Benchmark Holdings added an additional £7.5m to its revolving credit facility, while its original £20m recovering credit facility term remains unaltered.

“Dependent on the outcome of the strategic review the board do not see any issues with refinancing the debt, given the strong relationships with banks and the previous success with past refinancing,” it stated.

“In genetics, it is particularly pleasing to see continued progress in our Chilean business as well as the positive results of the recent reorganisation of our shrimp genetics activities,” said Benchmark Holdings CEO Trond Williksen.

“Our advanced nutrition business remains resilient to the continuing soft conditions in the shrimp markets and is well positioned for market recovery.”