Benchmark Holdings PLC (AIM:BMK) has launched a placing and retail offer of up to 158mln Norwegian krone (NOK) (£13.2mln) as part of its dual listing on Euronext Growth Oslo, which coincided with it reporting profits at the top end of expectations for the past year and “positive momentum” in the business continuing into the new year.
The fundraising is priced at NOK 4.50 per share, in line with its last close price on AIM of 37.5p, while the new share issue would represent roughly 5% of the total share capital if fully taken up.
The aquaculture biotechnology group said it intends to move up to the Oslo Børs, the leading seafood and aquaculture market globally, during the first half of 2023, while also consulting with shareholders on whether to maintain the AIM admission.
Listing in Norway will give the company access to a “unique financial aquaculture ecosystem and global base of specialist sector investors and analysts”, it said, with the shares having fallen by a third over the past couple of years despite operational and financial progress.
In the past year to 30 September 2022, all three divisions grew sales to drive a 27% increase in group revenue to £158.3mln.
Sales in Advanced Nutrition expanded 14% to £80.3mln thanks to a recovery in the shrimp markets post pandemic; Genetics grew 24% to £58mln amid strong demand for salmon eggs from its incubation centre in Iceland; and Animal Health rocketed 157% to £20.1mln following the first full year of the new sea lice solution Ectosan Vet and CleanTreat.
Underlying earnings (EBITDA) leapt 60% to £31.2mln, which was attributed to the revenue growth and financial discipline. At year end, analysts had forecast EBITDA of just under £28mln.
Total losses for the period however increased to £30.5mln, which the company said was a result of increased depreciation associated with leased CleanTreat units in the Health division and higher net finance expenses.
Cash and cash equivalents stood at £36.4mln at year end, while as of Monday 28 November, there was £35mln in the bank and available liquidity of £51mln.
Chief executive Trond Williksen said the year’s growth and strategic progress was “underpinned by four quarters of consistently improved financial results”, which “demonstrates the success of our restructuring and culture change, the quality and potential of our business and the talent and commitment of our people, as well as the underlying strength of our markets”.
"Our strategic and commercial focus have contributed to strong results. Going into the new financial year, there is good momentum in line with our expectations and positive dynamics in our industry creating significant opportunities to deliver value for all our stakeholders."
Looking at the new year, the company said the diversified nature of the business and management's commercial approach “creates resilience and mitigates the potential impact from ongoing cost inflation and macroeconomic pressures”.