Bolstering liquidity, focus on aquaculture
Benchmark is delivering on its strategic aims, having largely completed its disposals program of non-core or unprofitable operations and sharpening the focus on its core, aquaculture. The disposals will raise up to £44m, reinforcing the Company’s financial position to weather uncertainties related to the pandemic, to invest selectively in its core business and to enable liquidity to remain well within the covenant terms of its NOK bond loan. Actions taken have been as the new management team had promised. The launch of CleanTreat® + BMK08, a novel medicinal treatment to combat sea lice, is set to be transformational for the Group and is on track for Q2 2021 (calendar year).The Group is well positioned financially. Proforma net debt stood at £36m (including disposals completed post period end) providing ample headroom to meet its NOK bond-lending covenant terms and allowing focus on the launch of CleanTreat® / BMK08, plus selective investment in its core business areas. The Company is well advanced in the delivery of a cost savings program targeting £10m pa including savings associated with the disposal of its vaccine facility completed in July.
With FY20 on track to meet expectations, our forecasts and fair value of 63p / share are unchanged. We have made minor adjustments to our FY21 forecasts pending Company guidance at year end.
Animalcare Group is a supplier of generic veterinary medicines and animal identification products to companion animal veterinary markets. Co. develops and sells goods and services to veterinary professionals principally for use in companion animals; operating directly in the United Kingdom and through distribution and development partners in key markets in Western Europe. Co.'s principal product lines are licensed veterinary medicines and companion animal identification products and services. Co. distributes its products to Veterinary Surgeons, Veterinary Nurses and Practitioners.
Anpario is engaged in the production and distribution of natural feed additives for animal health, hygiene and nutrition. Co.'s portfolio of products is divided into four categories, Eubiotics, Feed Security, Feed Quality and Nutritional.
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.
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