Restructuring program and resilient trading increases Benchmark revenues
Good performance in Genetics, higher revenues in Advanced Nutrition and a reduction in operating costs and R&D expense increases put the company in a strong financial position.
Revenue from continuing operations was eight percent ahead of the prior year due to continued good performance in Genetics with revenues in line with the prior year, higher revenues in Advanced Nutrition, which benefitted from a partial catch-up of delayed orders as a result of COVID-19, and lower revenues in Animal Health below Q3 2019 with the comparable period benefitting from revenues derived from BMK08 trials.
Adjusted EBITDA from continuing operations was £0.3m against a £1.4m loss in Q3 2019 reflecting higher revenues, higher margins in Genetics as external production moves in-house and a reduction in operating costs and R&D expenses from measures taken during COVID-19.
“We are very pleased with the significant progress made over the last few months towards the completion of the disposal of non-core assets and the cash proceeds generated. Following the restructuring, we are well advanced to become a streamlined, financially strong business wholly focused on our core businesses: Genetics, Advanced Nutrition and Health. We continue to work on our restructuring program which aims to deliver £10m in annual savings from FY21 taking us a step closer towards our goal of becoming sustainably profitable,” said CEO Trond Williksen. “While the shrimp market continues to experience challenges as a result of the COVID-19 pandemic, the salmon market which underpins our genetics and health businesses remains resilient and overall, we expect to deliver full-year results in line with expectations.”
Septima Maguire, CFO, said that “the completion of our disposal program generating up to £44m, together with our ongoing cash conservation plan puts us in a strong financial position to remain resilient through the COVID-19 pandemic and invest selectively in our business to deliver future growth.”