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Full detailed new research report & audio summary:
https://www.equitydevelopment.co.uk/research/q1-results-consistent-growth-continues
Summary: For the three months to 31 December 2022, Benchmark Holdings reported revenue +36.2%YoY at £54.5m, and (adj.) EBITDA +47.7%YoY (excluding fair value adjustment for biological assets, +61%YoY), to £11.0m reflecting the combination of strong top line growth, capacity utilisation and cost control. As a result, (adj.) EBITDA profitability continued to improve, from an average of 19.7% through FY22, to 20.1%. The operating loss was £0.12m (Q122: £1.46m loss), on an adjusted basis, a £0.85m profit. The Q1 cash position was £42.8m and net debt (excluding leases) reduced from £47.5m at December 2022 to £37.9m1. Cash at 24 February 2023 was £37.5m.
The strength of Q1 23 performance, and in particular the contribution from the Health business area, gives substance to Benchmark’s stated confidence in the outlook for FY23. We have raised our FY23 (adj.) EBITDA outlook by 11% to £36.5m, and for FY24 by 9% to £43.0m, equating to a FY24 EV/EBITDA of 8.0x.
Our fair value for Benchmark remains 63p/share.
*** Benchmark Holdings - Investor Presentation (Q1 Results) - 1st March 2023 ***
Benchmark Holdings plc, the aquaculture biotechnology company, conducted an investor presentation following publication of their Q1 results for the three month period ended 31 December 2022.
Trond Williksen, CEO, and Septima Maguire, CFO, took investors through the highlights of the period and a detailed financial review by business area (Genetics, Advanced Nutrition, Health). The management discussed the significant uplift in the Health division with increasing adoption of Ectosan®Vet and CleanTreat®, and also touched on current trading & outlook. The team also took investor questions which covered areas such as the growth of the aquaculture industry and potential de-listing from AIM.
The full video recording is available below, divided into chapters:
0:00:03 Introduction & summary Q1 highlights
0:05:25 Business area highlights (Genetics, Advanced Nutrition, Health)
0:17:31 Financial Review
0:27:22 Current trading & outlook
0:30:31 Conclusion & Benchmark's unique value proposition
0:33:28 Questions & Answers
Link to full video: https://www.equitydevelopment.co.uk/research/benchmark-holdings-investor-presentation-q1-results-march-2023
I've a small holding here. Today's Q1 results show a real breakthrough and anyone buying in now is getting a cheap share. I look "Shares Magazine" recommendation a year back. The only concern I'd flag is whether the company will continue to list in the UK? Having a wonderful share listed in Oslo shouldn't necessarily a negative however will we see a withdrawal from London? If so, I expect my ISA holding becomes non-viable. It's tricky to be listed just in Oslo (if that happens).
GLA
Numbers look good. Stock should double. Unless we are missing something.
Real shame about lack of liquidity.
Maybe company could be a good takeout target for someone.
I’m the same (small investment and under water). The SP has suffered due to size, loss making and debt levels. However, strong growth, profitability, cash generation and falling debt should lead to a re-price in time. Results were better than I was expecting. Might add a few!
Recently took a small holding here. Looking at the Q1 results I'm optimistic it could prove to be a shrewd investment.
Benchmark Holdings plc, the aquaculture biotechnology company, will be conducting an investor presentation following publication of their Q1 results for the three month period ended 31 December 2022.
The online event will be hosted by Trond Williksen, CEO, and Septima Maguire, CFO, and will take place at 12.00pm on Wednesday 1st March.
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-q1results-presentation-1march2023
Many thanks. Much appreciated. I didn't realise I was being diluted. But I think I'll stick with what I have. Such a shame it's so illiquid.
DYODD, but in my view this is an excellent Company and I hold, for me, a lot of shares in it. It is tackling, head on, many of the risk management issues in aquaculture, and IMHO some of its assets are of major importance to that industry, e.g. its Lice Control System for Salmon Farming. I also find its disease resistant Shrimp technology extremely interesting. After some concern about it going on to the Oslo Market, I am persuaded that this was a good move for shareholders, and I bought sufficient stock to cover the dilution that took place. In Norway they understand what Aquaculture is all about, so I think Benchmark will be viewed very positively on that Market, London is not as au fait with Aquaculture. I am not a professional investor, so these comments are all in my humble opinion - you must do your own research and Due Diligence!!!!!
I own this stock and I'm well off side... does anyone have any view or insight here please?
Full report here (free & accessible here): https://www.equitydevelopment.co.uk/research/fy22-results-deliver-sustainable-growth
For the year to 30 September 2022, Benchmark Holdings reported revenue of £158.3m, +27%YoY and (adj.) EBITDA of £31.2m, +60%YoY. The Group highlighted 14%YoY growth in the Advanced Nutrition business area, as shrimp market demand continues to recover, and 24%YoY growth in Genetics as the new Iceland salmon eggs facility came on stream. FY22 EBITDA (adj.) was in line with the upper end of the Trading Update of 24 October; revenue was 3% above our October estimates, EBITDA (adj.) 14% higher. EBITDA (adj.) margin improved from 15.6% in FY21 to 19.7%, maintaining progress from 13.7% in FY20.
Following FY22 performance which matched updated guidance – reiterating Benchmark’s ‘delivery’ strategy - our FY23 and FY24 outlook is essentially unchanged, with top line and EBITDA growth maintained; LBT is reduced as a result of debt restructuring undertaken in November 2022. Our outlook equates to a FY24 EV/EBITDA of 9.1x, and Fair Value is still seen at 63p/share.
Link: https://www.equitydevelopment.co.uk/research/benchmark-holdings-investor-presentation-fyresults-30nov2022
Benchmark Holdings plc, the aquaculture biotechnology company, conducted an investor presentation following publication of their Full Year results for the year ended 30 September 2022.
Trond Williksen, CEO, and Septima Maguire, CFO ran investors through operational highlights for each key division (Genetics, Advanced Nutrition, Health) and provided a detailed financial review. Management discussed their forthcoming Oslo listing, touched on the possible impact of the Norway salmon tax proposal, and answered a range of investor questions.
If you missed the live event, the full video is now available on the above link, divided into chapters:
0:00:03 Introduction & FY22 highlights
0:05:13 Euronext Growth Oslo listing / placing & retail offer
0:06:20 Operational highlights by division
0:16:15 Financial Review
0:30:32 Strategy & Outlook
Judging by the information sent out by The Company, UK Shareholders are about to be screwed. There is a Private Placement taking place on the Norwegian Market, which UK Investors are excluded from. This is apparently a condition of listing on the Oslo Market. Considering it is UK shareholders who have carried The Company to this point, this seems to me like theft, if the opportunity to participate is being denied to UK investors. It is said that a decision has still to be reached on whether the AIM listing in London will be continued. My guess is that the decision has already been made and the AIM listing will be discontinued. Is such activity legal?
Benchmark Holdings plc, the aquaculture biotechnology company, will be conducting an investor webinar following publication of their Full Year results for the year ended 30 September 2022.
The online presentation will be hosted by Trond Williksen, CEO, and Septima Maguire, CFO.
This event will take place at 12.00pm on Wednesday 30th 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 here: https://www.equitydevelopment.co.uk/news-and-events/benchmark-fyresults-presentation-30nov2022
That was a positive update on a strong Q4 and BMK now sees FY22 adj EBITDA beating market expectations.
Equity Development's fair value for now stays at 63p/share, vs 37p in the market, as you can read in new research note here (free access):
https://www.equitydevelopment.co.uk/research/update-says-a-strong-q4-continuing-into-fy23
Benchmark Holdings - "Sustainable growth through consistent delivery" - major new research report (free & accessible) from Equity Development; CMD and Business Review
Link to full note and audio summary:
https://www.equitydevelopment.co.uk/research/sustainable-growth-through-consistent-delivery
At the recent Capital Markets Day CEO Trond Williksen outlined Benchmark’s strategy: to drive sustainability in aquaculture, improving product yield and quality for its customers, and at the same time to build Benchmark’s growth through planned phases of development in its three key business areas - Genetics, Advanced Nutrition and Health.
Restructured in 2020, the Group is now focused on consistent delivery, anchoring business area profitability and cashflow, and delivering on strategic programmes within a 2-5-year time frame. The direction of travel for Benchmark’s target markets in aquaculture remains positive. As the OECD1 notes “fish consumption is projected to keep rising at a faster rate than meat consumption over the next decade” and “Aquaculture is expected to drive production growth …to overtake capture fisheries production.” The Group outlined its growth pathway for each business area.
Our fair value for Benchmark is 63p/share.
One of my smaller holdings, but disappointing the SP is around 40p and now seems undervalued. Niche products that seem to be gaining traction, albeit they don't light up the world. In this climate I agree with defensive quality but can't see a catalyst for us to retrench in the 50's unless macro events improve. GLA.
See full details in our new note: https://www.equitydevelopment.co.uk/research/q3-update-positive-outlook-in-uncertain-times
Summary
Benchmark’s results for the FY22 Q3 (April-June) period showed robust sales plus adjusted EBITDA (AEBITDA) growth and confirm a positive outlook, particularly in the important genetics and advanced nutrition businesses. Medium-term financial guidance, issued only in May, was reiterated, something that represents a positive element in the investment case given current heightened economic uncertainty. Benchmark’s status as a key player in the global aquaculture industry should be a defensive attribute and it also confirms low exposure to spiking utility costs - an additional attractive feature in the present energy crisis.
We recently revised our valuation principally to reflect the changed macro-economic (inflation/interest rate) environment and, while this has deteriorated further since this was carried out in June, we do not consider there is yet a need to change the valuation.
Thus, we are maintaining the current valuation of £478m (or 68p/share), which is struck on the basis of a 12% weighted average cost of capital and 3% long term growth rate.
We hosted an investor presentation with Benchmark Holdings plc, the aquaculture biotechnology company, following publication of their Q3 results.
Trond Williksen, CEO, and Septima Maguire, CFO took viewers through the highlights of the period which saw continued business momentum and growth in Adj. EBITDA and progress on the development of a new CleanTreat® configuration and business model. The management team provided a financial review, looking at each key business (Genetics, Advanced Nutrition, Health) and gave an update on the intended Euronext Growth Oslo listing in Q4 2022.
The full video has been divided into chapters.
0:00:03 Introduction and Q3 overview
0:04:22 Business area highlights
0:10:52 New CleanTreat® configuration details
0:13:45 Financial Review
0:20:53 Progress towards listing on Euronext Growth Oslo
0:21:47 Current trading & outlook; Benchmark's unique value proposition
0:26:20 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/investor-presentation-august-2022-q3-results
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 12.00pm on Thursday 25th August.
The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Link to register: https://www.equitydevelopment.co.uk/news-and-events/benchmark-q3results-presentation-aug25
After today's RNS - is there a bid brewing?
#TAM Despite sharp market falls in Q4 of FY22 (Jan-Mar 22), AUM grew 26% y-o-y to £11.3bn (FY21: £9.0bn), with £1.3bn of net inflows (14.2% of opening AUM compared to a sector median of just 4.3%). Revenue grew 26% from £23.4m in FY21 to £29.4m, adjusted operating profit 27% from £11.4m to £14.5m, and adjusted operating margin increased from 48.8% to 49.5% (compared to a sector median of 32%), providing further evidence of operational gearing.
Net cash increased 28% from £16.9m to £21.7m, even though £6.6m was paid in dividends and £3.0m for the first tranche of the Verbatim funds acquisition. Tatton has declared a full-year dividend of 12.5p, 14% up on the 11p distributed in FY21, giving a yield of 3.0%
Our fundamental value is 530p per share. That is c. 27% above the current share price, but down slightly on our previous value of 560p per share - due mainly to an increased discount rate (which is in turn due to the recent jump in UK 10-year Gilt yields which we have used as our risk-free rate).
https://www.equitydevelopment.co.uk/research/a-sector-leader-in-both-growth-and-profitability
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