The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Benchmark has reported a fourth sequential quarter of revenue and AEBITDA profit growth in the January-March (Q2) period, highlighting the continued favourable trends in its three business areas. The group has, so far, been largely unaffected by the post February economic shock and maintains that it continues to have a strong outlook in its important salmon egg and nutrition businesses for the remainder of the year.
Key points to note include:
Q2 results: revenues were up by 29% at £39.3m, reflecting strong growth in the three divisions of Nutrition (+16%), Genetics (+20%) and Health (+390%). These were broadly consistent with or ahead of our expectations.
Safe haven status: Benchmark’s alignment to the aquaculture segment should mean it is largely insulated from economic disruption caused by the Russian invasion of Ukraine and associated sanctions.
Balance sheet: Benchmark has a strong balance sheet with cash of £46.2m and net debt of £81.4m on 31st March, which is a positive element in the investment case. We expect the company will look to refinance its NOK855m bond in the second half of 2022.
We have also revised our DCF-valuation to reflect forecasts and now assume a higher cost of capital more appropriate to the current inflation/interest rate environment. Our model yields a fair valuation of £478m or 68p/share, versus the current 51p level.
Link to full research report: https://www.equitydevelopment.co.uk/research/financial-update-highlights-strong-outlook
H1-22 results highlight just how impressive Impax’s progress over the last year has been, given that sharp equity market falls resulted in an 8.1% drop in AUM over Q2 alone.
AUM was up 27% year-on-year (31 Mar 21: £30.0bn), revenue 46% (£88.6m v £60.6m in H1-21), adjusted operating profit 64% (£34.0m v £20.7m), and net cash 88% (£72.0m v £38.3m). Impax maintained positive net inflows of +£2.5bn over the half-year (and importantly, +£0.5bn during the turbulent Q2), sourced from a diverse range of clients, geographies, and channels.
Over the short-term, continuing equity market weakness, particularly in ‘sustainable economy’ and ‘growth-oriented’ stocks which are common in Impax’s strategies (the FTSE Environmental Opportunities All-Share Index was down 16.1% between 1 Jan 22 and 29 Apr 22) has pegged back our FY22 growth forecasts slightly. We now expect AUM to grow by around 9% y-o-y to £40.5bn on 30 Sep 22, and revenue to grow by 26% to around £180m.
However, we believe that for the sustainable investing market generally, and for Impax specifically, the medium-longer term growth outlook remains bullish. At a market level, even during the turmoil of (calender) Q1-22, flows into sustainable funds remained positive. According to Morningstar, the European sustainable fund market (81% of global sustainable fund assets) attracted US$78bn of net inflows while conventional funds saw US$21bn of net outflows. Moves to reduce dependency on Russian fossil fuels will almost certainly accelerate the shift to renewable energy. Additionally, a growing backlash against greenwashing will favour the most credible sustainable investment managers such as Impax.
We have reduced our core value slightly from 1260p to 1225p, primarily because of the slightly reduced AUM and revenue outlook for the full FY22 year. However, even our reduced value remains over 65% above the current share price.
https://www.equitydevelopment.co.uk/research/hugely-impressive-h1-despite-market-fall-in-q2
The management of Benchmark Holdings conducted an investor presentation following the release of their interim / Q2 numbers.
Trond Williksen (CEO) and Septima Maguire (CFO) ran through the detailed operational and financial highlights of the period, which saw strong growth in revenue and adjusted EBITDA. They discussed current trading & outlook, the company's investment proposition, medium-term objectives, and confirmed they will be pursue an additional listing on the Oslo market later in 2022.
If you missed the live presentation, the full video is available below and is divided into chapters for ease of viewing:
0:00:03 introduction & H1 FY22 operational highlights (CEO, Trond Williksen)
0:16:29 Financial Review (CFO, Septima Maguire)
0:23:16 Current trading and outlook / Benchmark's value proposition (CEO, Trond Williksen)
0:29:00 Financial framework and medium term objectives (CFO, Septima Maguire)
0:33:22 Questions & Answers
Video link: https://www.equitydevelopment.co.uk/research/benchmark-holdings-investor-presentation-video-q2-results-18may
Benchmark Holdings plc, the aquaculture biotechnology company, will be conducting an investor webinar following publication of their Q2 and Interim results.
The online presentation will be hosted by Trond Williksen, CEO, and Septima Maguire, CFO.
This event will take place at 2.00pm on Wednesday 18th May.
The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Sign up here: https://www.equitydevelopment.co.uk/news-and-events/benchmark-2qresults-presentation-may18
It's interesting to note BMK's strong cash position:
"Cash of £50.6m and Liquidity (cash and available facility) of £61.6m as at 21 February 2022"
Considering the buy-&-build strategy employed by BMK, OTAQ, then which has BMK founder Malcolm Pye as a director, could be a potential BMK takeover target.
In fact, at its current s.p. of just 20.5p OTAQ looks a sitting duck for a BMK takeover attempt, and looks a prefect fit.
Thought I think that it would have to pay at least double or treble OTAQ's current s.p. to succeed.
"Malcolm Pye
Non Executive Director
Malcolm founded, and from 1999 to 2019 was Chief Executive of, Benchmark Holdings plc ("Benchmark"), the world's leading aquaculture health, nutrition and genetics business. Malcolm has over 35 years' experience in international agribusiness through his various roles at Hillsdown Holdings (then HMTF Group), and through building Benchmark from the initial start-up into a major international aquaculture technology business serving the global salmon, shrimp, tilapia and farmed fish industries. Malcolm focused Benchmark's activities on animal health, breeding and genetics, advanced nutrition and knowledge/technology delivery and led the flotation of Benchmark in 2013, maintaining a lead role in investor engagement."
https://www.otaq-ir.com/investors/board-of-directors
#BMK Benchmark’s recent Q1 FY22 results highlighted strong operating trends in its three business areas and a positive outlook in key end-markets, especially farmed salmon. The group’s strong position serving the aquaculture industry should, in our view, insulate it from economic shocks resulting from the geo-political situation and thus make for attractive, safe haven investment.
The company has a strong balance sheet and liquidity position following its £20m equity fundraising last year, which we consider will become a more prominent positive element in its investment case. However, Benchmark will have to refinance its NOK855m senior bond, which falls due on in July 2023. Doing so would remove something that may otherwise become an overhang as it approaches the due date.
Benchmark will have to contend with significant input cost inflation and will undoubtedly see some knock-on effects from disruption to its customers’ end markets. Although the Q1 results would ordinarily have supported a modest upgrade, we have decided to maintain our current financial forecasts pending greater clarity. These forecasts support a DCF-based valuation of £583m, equivalent to 83p/share.
https://www.equitydevelopment.co.uk/research/strong-outlook-in-uncertain-times
Benchmark Holdings - Q1 Results - Investor Presentation video (22nd February)
Trond Williksen, CEO, and Septima Maguire, CFO of Benchmark Holdings plc presented the highlights of their financial and operational performance of Q1 to investors.
They discussed insights into the 2022 outlook and answered investor questions around inflationary input costs and utilisation rates of CleanTreat vessels.
The full video presentation is divided into chapters for ease of viewing:
0:00:03 Q1 overview and operational highlights (CEO, Trond Williksen)
0:14:02 Financial Review (Septima Maguire, CFO)
0:24:15 Current trading & outlook (CEO, Trond Williksen)
0:28:13 Question & Answer session (with concluding comments)
Link to video presentation: https://www.equitydevelopment.co.uk/research/benchmark-holdings-investor-presentation-video-q1-results-22feb
*** BMK - save the date! ***
Benchmark Holdings plc, the aquaculture biotechnology company, will be conducting an investor webinar following publication of their Q1 results.
The online presentation will be hosted by Trond Williksen, CEO, and Septima Maguire, CFO, on Tuesday 22nd February at 12.00pm.
Sign up here at the link: https://www.equitydevelopment.co.uk/news-and-events/benchmark-1qresults-presentation-feb22
Happy new year everyone, well actually it seems to be just the 3 or 4 of us who are prepared to write a post on here. Others have moved to different waters…
Still bemused as to why this stock is like a dead fish, but have put my money where my mouth is and am predicting a stonking 2022.
Leaving all the fishing stuff aside, have you seen the substantial Director buys end of November?!
Something is brewing here and I hope I have landed the big one. Listened to the very positive presentations again. Current price looks to be the bottom over the last year too
All feedback welcome, especially with appropriate puns
GLA DYOR
Took a position myself this week, although three of my Investment Trusts have pretty substantial holdings in Benchmark (OIG,NAS,OIT), so won't go overboard. They do seem to be gathering momentum and like yourself - it appeals as a niche product. Pretty happy that Harwood Capital are supportive.
Please see my post back on 5 May. Surprised this board is so quiet. Didn’t expect or want to wait this long for this to take off, but in view of the shoal of Director Buys in November, impressive RNS today and so much potential in what is a very bespoke market, hopefully it will now. Bought more today and with projections of 84p (which I think is conservative) and since this stayed in the 60’s, seeing little downside. What do I know about fishing? Practically nothing. But everything I read about BMK appeals. All we are missing now is a dividend, I will be happy with getting around £1 As usual DYOR GLA
#BMK Benchmark Holdings’ FY21 and particularly its Q4 (July to September) results confirmed the strong recovery in the business, led by its nutrition business, that had been indicated in the October pre-close trading update. An improving outlook in its key shrimp market and good conditions in the salmon and sea bass/bream sectors underpins an upgrade of our financial forecasts for FY22 and beyond.
With £20m raised via a placing, Benchmark is now in a stronger position to invest in capital expansion projects ahead of the refinancing of its NOK bond, which falls due in 2023. A possible share listing in Norway next year may also provide better access to aquaculture-specific investors/capital.
Taken together, these elements boost our overall valuation. We have updated our model and increased our expectations across the board to reflect the current outlook and trends as well as the placing of 33m shares at 62p/share. Our revised estimate of the fair value is now £583m, up from £550m, which is equivalent to 83p/share based on the enlarged share count.
https://www.equitydevelopment.co.uk/research/strong-performance-and-improving-outlook
Benchmark’s CEO, Trond Williksen and CFO, Septima Maguire present the full year results for the period ended 30th September 2021.
Watch the video here: https://www.piworld.co.uk/company-videos/benchmark-bmk-full-year-2021-results-presentation-november-2021/
Or listen to the podcast here: https://piworld.podbean.com/e/benchmark-bmk-full-year-2021-results-presentation-november-2021/
Benchmark Holdings plc conducted an investor presentation on 29th November following publication of their FY21 results.
Trond Williksen (CEO) and Septima Maguire (CFO) ran investors through the key highlights of their financial & operational performance over FY21. These included a year of good revenue growth, a placing to raise an additional £20.7m, and the initial exploration of a potential listing in Norway.
The full recording is available below, divided into chapters:
0:00 Beginning / Introduction
00:41 Full Year 2021 Highlights (Trond Williksen, CEO)
15:19 Financial Review (Septima Maguire, CFO)
29:57 Strategy and Outlook (Trond Williksen, CEO)
36:12 Questions & Answers
Link: https://www.equitydevelopment.co.uk/research/benchmark-holdings-investor-presentation-video-fy-results
Benchmark Holdings plc, the aquaculture biotechnology company, will be conducting an investor webinar following publication of their FY results.
The online presentation will be hosted by Trond Williksen, CEO, and Septima Maguire, CFO.
This event will take place at 12.00pm on Monday 29th November.
The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Sign up to register at the link: https://www.equitydevelopment.co.uk/news-and-events/benchmark-fyresults-presentation-nov2021
Benchmark Holdings’ recent Q3 (March-June) results show strong revenue and profit growth in its Nutrition and Genetics divisions, driven by a recovery in the end-markets for salmon and shrimp from the lockdown-affected levels of the past year. Attention is, however, largely focussed on the new Ectosan®Vet sea lice treatment, which saw its commercial launch just after the period end in August.
Q3 results: Nutrition revenues rose by 15% driven by Artemia (+21%) and diets (+27%), while Genetics revenues increased by 21%, with 5% growth in the important salmon eggs segment. Underlying profit contribution (AEBITDA) was up strongly in Nutrition (+65%) as well as Genetics, excluding fair value adjustments in biological assets (+37%). Group sales and AEBITDA were up 15% at £28.4m and by 110% at £4.4m respectively.
Ectosan®Vet launch in August: Benchmark management remains outwardly confident about Ectosan®Vet/CleanTreat prospects following the launch in August. The first vessel is fully booked out and a second vessel is due to come on stream imminently. The new business is, however, likely only to make a modest contribution in the fourth quarter.
We have revised our financial model to reflect a more conservative trajectory for the new business based on current information and expectations. However, this was offset by other changes so the net effect on our Fair Value was negligible which remains at £550m or 82p/share.
Note: https://www.equitydevelopment.co.uk/research/benchmark-holdings-strong-q3-for-nutrition-and-genetics
Equity Development hosted an investor webinar on 1st September with the management of Benchmark Holdings. Trond Williksen, CEO, and Septima Maguire, CFO gave investors an insight into the financial and operational results for the Q3 period, shared views on their outlook and took investor questions.
You can watch the full recording on the link below. Total video length 26 minutes.
https://www.equitydevelopment.co.uk/research/benchmark-q3results-presentation
Benchmark Holdings plc, the aquaculture biotechnology company, will be conducting an investor webinar following publication of their Q3 results.
The online presentation will be hosted by Trond Williksen, CEO, and Septima Maguire, CFO.
This event will take place at 9.00am on Wednesday 1st September.
The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Register here: https://www.equitydevelopment.co.uk/news-and-events/benchmark-presentation-sept2021
for 5,000 at 60p. 5.75% holding in OIT which I hold and the've been pretty good at picking winners - hoping to build here.
Benchmark Holdings PLC (LON:BMK) said it had received marketing authorisation from the Norwegian Medicines Agency (NoMA) for EctosanVet (BMK08), its pioneering treatment for sea lice in salmon.
Sea lice are one of the biggest biological challenges in salmon farming, said Benchmark, and estimated to cost producers more than US$1bn annually, and US$600mln in Norway alone.
Ectosan Vet will be the first sea lice veterinary medicinal treatment to be introduced to the Norwegian salmon market in over a decade, it added.
The final steps for commercialisation are the ratification of the MRL (Maximum Residue Limit) into Norwegian regulation and the approval of product labels by the NoMA.
Benchmark added that the MRL ratification is a procedural step following EU legislation and is anticipated to complete in the next few weeks.
While the authorisation does not fully include all anticipated label claims on usage, Benchmark said it will work closely with its customers on how to use it most effectively and also with NoMA through field trials and variations.
Benchmark expects Ectosan Vet and CleanTreat, a water purification treatment, to be profitable from the outset, with expectations for the group's performance in 2021 and potential market for the new sea lice solution unchanged, but with a slower ramp-up.
CleanTreat’s first customer was signed up in March.
“As previously communicated the initial launch will be with two vessels. Based on the current label claims, we expect to achieve an Adjusted EBITDA margin of 25%-30% (excluding IFRS 16) for Ectosan Vet and CleanTreat which we anticipate will increase as new claims are granted,” said the statement.
Trond Williksen, Benchmark’s chief executive, added: "We are pleased to have received Marketing Authorisation from the Norwegian Medicines Agency, which represents a major milestone for the company.
"We are excited to bring this much-needed solution to the salmon industry, driving sustainability through improved animal welfare and yield while protecting the environment.”
"We look forward to working with our customers as we roll out Ectosan Vet and CleanTreat in the market."
GL.