Benchmark Holdings PLC (AIM:BMK), the aquaculture company, dropped more than 11% on Thursday after it posted a pre-tax loss of £4.7 million in the third quarter of the financial year, a company statement revealed.
Current operations are trading within market expectations for the 2023 financial year, with “good visibility” in its genetics division, offset by a challenging outlook in the group’s advanced nutrition division, which is struggling due to weak global shrimp market conditions.
Improving conditions in Benchmark’s ‘Health’ division, particularly from a seasonal increase in sea lice treatments, helps boost the group’s efforts in obtaining profitability and generating cash.
Revenues for the first three quarters of 2023 jumped 15% year-on-year to reach £131 million, driven by growth in its genetics and health divisions, while advanced nutrition revenues remained flat compared to 2022.
Adjusted operating margins lifted to 19% from 17% in the year prior.
Trond Williksen, chief executive officer at Benchmark, said: "Our Q3 trading reflects the anticipated low season for our Health solutions in the salmon industry, as well as the continuing adverse market conditions in the global shrimp market. Despite these headwinds, we have delivered strong year-to-date results, with double-digit growth in revenues and earnings compared to the prior year.”
"For the remainder of the year we have good visibility in Genetics and are moving into the main season for sea lice treatments in Health. Notwithstanding the prevailing market conditions for Advanced Nutrition, we continue to demonstrate momentum in our business and the resilience of our diversified business model to face cyclical fluctuations in our end markets.”
Shares in Benchmark are up close to 1% in the year-to-date and are currently trading at around 37.7p.