Report
Alexander Aukner
EUR 87.34 For Business Accounts Only

Benchmark Holdings Plc (Buy, TP: NOK7.20) - Returning excess cash to shareholders

Q4 revenue of GBP36.8m and adj. EBITDA of GBP6.9m were both 13% below our estimates, while the adj. EBITDA margin of 18.8% was in line. The company said it would refocus on the remaining businesses following the pending sale of Genetics and aims to pay down debt and return excess cash to shareholders. We estimate an extraordinary dividend of GBP160m in Q2 2025. We calculate the stub is trading at a 2025–2026e EV/EBITDA of 4.7–5.9x. We reiterate our BUY and have raised our target price to NOK7.2 (7.0) due to FX.
Underlying
Benchmark Holdings

Benchmark Holdings is principally engaged in the provision of technical services, products and knowledge that support the development of sustainable food and farming industries. Co.'s reportable segments include: Animal Health Division, which provides veterinary services, environmental services diagnostics and animal health products to aquaculture, and manufactures licenced veterinary vaccines and vaccine components; Genetics Division, which harnesses salmon breeding technologies combined with production facilities to provide a range of high genetic merit ova; and Advanced Animal Nutrition, which manufactures and provides nutrition and health products to the aquaculture industry.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Alexander Aukner

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