Benchmark Holdings

www.benchmarkplc.com TICKER: BMK     EXCHANGE: AIM

Benchmark helps deliver improved healthcare products and welfare services to the global aquaculture and livestock industries. Rising demand from clients for its products and services to manage sustainability practice and performance underlines BMK's opportunity for significant organic and external growth.

LATEST REPORTS

 
Interview with the CEO and CFO on interims and outlook
Published: Jul 06 2018

Following Benchmarks's 2018 interim results,we interviewed Malcolm Pye, CEO, and Mark Plampin, CFO on the progress made in the last six months and prospects for the full year. 
 
Delivering on strategic and financial targets
Published: Jun 26 2018

Benchmark (BMK) helps deliver improved healthcare products and services to the Animal Health and Aquaculture industry. Rising demand from clients for its products and services to manage sustainability practice in worldwide production and supply chains underlines BMK’s opportunity for significant organic and external growth. 
BMK delivered a 9% reported increase in sales in H1’18 despite FX headwinds (up 17% at constant exchange rates) to £75.7m, together with a 91% increase in adjusted EBITDA. This was driven by strong performance in Genetics and Advanced Nutrition and a higher margin product mix in these divisions. 
Post period end, BMK entered into an aquaculture breeding and genetics Joint Venture with Empresas AquaChile SA, the world’s sixth largest salmon producer. The JV is projected to be immediately earnings enhancing in our forecasts. It is also a sound strategic move that cements BMK’s presence in Chile, the second largest global producer of Atlantic salmon after Norway.
Our forecasts have increased our FY’18 revenue forecast by a net 0.1%, including an adjustment for the JV, from £162 to £162.2m. In FY’19 we increase our projected revenue by 1.2% from £181.8m to £183.9m (adding in JV revenue share). 
The figures were well received by market and it was encouraging to see Director’s  share purchases after their release. After raising our forecasts and adding in the JV earnings, then rolling forwards our DCF valuation, our new value increases to £549m (from £521m) or 98.5p per share (including the new placing shares).
 
Strategic investment in key Chilean market
Published: Jun 12 2018

Benchmark Holdings (BMK) has entered into an aquaculture breeding and genetics Joint Venture with Empresas AquaChile SA (AquaChile), the world’s sixth largest salmon producer. This is a strategic move that cements BMK’s presence in Chile, the second largest global producer of Atlantic salmon after Norway. In 2017 AquaChile was the largest contributor to a Chilean harvest which reached over 580,000 tons, showing year-on-year growth of 15%.
The JV is set to be immediately earnings enhancing, contributing £1.8m in adjusted EBITDA in the four-month period to September 2018. It also allows BMK to participate in the market through relatively lower capital investment and at lower risk than making acquisitions or building a facility from scratch.
The deal is to be financed by BMK’s £19m gross equity placing of 34.5m shares at 55 pence per share to fund the cash consideration in two tranches: $7.5m upfront, followed by $8.75m to be paid in December 2018. There is also a shareholder loan of $5.4m from BMK to the JV (matched by AquaChile) which in part refinances debt and provides the JV with working capital. 
BMK has opted for market entry through a partnership with AquaChile who seem to us an excellent partner owing to high market share and broad geographic reach. AquaChile reported FY17 revenue of $398m, of which 56% of revenues were associated with Atlantic salmon sales, and produced 45.9k tons of salmon, representing c. 10% of the country’s total production in 2017. 
Separately, BMK reports that the Group is trading well across all three main Divisions and is on track to meet full year financial forecasts. Highlights include excellent results from ongoing field trials of BMK’s pioneering sea lice treatment Ectosan and a high level of interest from the Norwegian market.
At this moment we are making no changes to our forecasts, which we will review after the imminent H1’18 results due on 19 June. Until then we retain our current valuation of £521m for the business and believe that BMK presents a unique opportunity to invest in a diverse sustainable aquaculture platform.
 
CMD showcases expertise and strategy
Published: Apr 03 2018

Benchmark (BMK) helps deliver improved healthcare products and services to the Animal Health and Aquaculture industry. Rising demand from clients for its products and services to manage sustainability practice in worldwide production and supply chains underlines BMK’s opportunity for significant organic and external growth.
The company held a well-attended Capital Markets Day (CMD) on 27 March, which highlighted its strategic targets for fulfilling its growth potential spanning Advanced Nutrition, Genetics and Animal Health. 
Strong underlying dynamics include the ongoing recovery of supply in salmon markets following disease challenges, with higher pricing trends supported by strong demand and with signs of shrimp production entering a new growth phase. We have consistently said that BMK holds a unique position within aquaculture markets and that its strategic aims are set to translate into upward momentum in revenue and margin. 
We reiterate our sales and adjusted EBITDA forecasts across the group for 15.6% revenue growth to £162m in FY18, rising to £200.9m by FY20, equivalent to a CAGR of 13% over the forecast period. We project that adjusted EBITDA will rise over 50% from £10m up to £15.2m in FY18, and reaching £24.6m in FY20, equivalent to a 12% margin. 
Product mix and direct selling capabilities are estimated to be key drivers of margin expansion in Advanced Nutrition, with pricing growth and new species additive factors in Genetics. Animal Health drivers include product launches of higher margin products, starting with Ectosan – CleanTreat, which should drive the longer term break-even status of the division. 
BMK appears very well positioned given its diversified approach to meet strong underlying demand growth for farmed seafood, whilst benefitting from synergies across the Group. Our DCF is supported by undemanding multiples falling sharply over the forecast period. Rolling forwards our model, the DCF value remains at £521m, or 99.8p per share.
 
Strong platform built to deliver growth
Published: Jan 31 2018

Benchmark (BMK) helps deliver improved healthcare products and services to the Animal Health and Aquaculture industry. Rising demand from clients for its products and services to manage sustainability practice in worldwide production and supply chains underlines BMK’s opportunity for significant organic and external growth.
Full year results show that BMK strengthened and leveraged its diversified aquaculture platform in FY17.  It also delivered 13% like for like revenue growth to £140m (adding back revenues for businesses acquired in FY16). The headline measure of adjusted EBITDA was flat at £10m year on year, with margins of 21% and 19% in Advanced Animal Nutrition (AAN) and Benchmark Genetics (BG) respectively, offset by headwinds in Animal Health (AH). 
Highlights included strong like for like growth in AAN, up 21% to £83.7m, driven by ongoing demand for live feed replacement diets. This growth was despite a slow first half in shrimp markets as the disease crisis began to ease. Live feed replacement diets are forecast to contribute to expanding medium term margins at the division. BG registered 47% revenue growth to £30.5m driven by an increase in volumes up 18% and price increases of 13% in salmon ova, boosting EBITDA margin from 2% to 19%.
Looking ahead, we forecast a sustained demand for BMK’s products and services highlighted by the roll out of BMK’s novel Ectosan - CleanTreat sea lice treatment process, which is set to contribute to FY18 revenues. Company peak projected sales have increased from £25m to £45m, due in part to 100% efficacy seen in trials and its potential to minimise contamination. New products across each division, together with the sustained recovery in shrimp markets, contribute to our estimated revenue CAGR of 13% across the forecast period in parallel with an estimated CAGR of 35% in adjusted EBITDA. 
BMK appears very well positioned given its diversified approach to meet strong underlying demand growth for farmed seafood. Our DCF is supported by undemanding multiples falling sharply over the forecast period. We maintain our DCF valuation at £521m, or 99.8p per share, taking forecast changes into account and including the higher than anticipated commercial potential of Ectosan/CleanTreat.


NB you can see a 20 minute interview with BMK management here:
https://www.youtube.com/watch?v=fWkAeUhzgQU


 
An interview with the CEO and CFO about results and prospects
Published: Jan 25 2018

Malcolm Pye, CEO and Mark Plampin, CFO discuss the Group's recent results announcement at the Equity Development offices.
 
Trading on track and prospects exciting
Published: Dec 08 2017

Benchmark (BMK) helps deliver improved healthcare products and services to the Animal Health and Aquaculture industry. 
BMK has updated on overall FY17 sales being c. £138m – in line with market expectations and equivalent to 26% growth over FY16. Across the Group it has been a mixed year with strong sales performance from two divisions, including at its largest - Advanced Animal Nutrition (AAN) up 21% (8% on a constant currency basis) during the year and at Benchmark Genetics (BG), where demand for salmon eggs was a key driver of 49% like-for-like growth (or +23% at constant currency). 
Good news for the BG division included delivery of the first batch of broodstock to the BMK’s new SalmoBreed facility in Norway. This world class facility is anticipated to enable the delivery of disease-free ova on a year-round basis, and the Company expects it to reach peak yearly capacity of 150 million ova in 2019.
Another positive development for the genetics division was the announcement on 7 December of BMK’s participation in a three-year research collaboration funded by a £500,000 Industrial Partnership Award from the UK’s Biotechnology and Biological Sciences Research Council (BBSRC) – exploring the potential of gene editing to help overcome disease challenge of infectious salmon anaemia (ISA). Additionally, tangible returns on BMK’s £17m investment in its state-of-the-art vaccines facility in Braintree Essex are nearing a realisation, as it reported that the first commercial scale batch of antigen had now been produced at the plant.
We have adjusted our FY17 forecasts in line with guidance, slightly reducing our revenue estimate from £141m to £138m. Earnings guidance being ahead of our estimates, we increase our estimated EBITDA to £10m. 
BMK’s market cap has fallen almost 50% from the 2017 share price high of 105.5p due to prior uncertainty on revenue projections – hopefully now alleviated by this trading update. Indeed, adjusting for forecast changes our revised DCF valuation is £521m, or 99.8p per share, a shade higher than our previous valuation of £517m.

ARCHIVE

2017
A novel approach to the sea lice threat
Published: Sep 13 2017

Benchmark (BMK) helps deliver improved healthcare products and services to the Animal Health and Aquaculture industry. 
Their latest update reports that it saw improving market conditions and good performance across Breeding and Genetics (BG) and Advanced Animal Nutrition (AAN) divisions during H217. However, largely because of logistical circumstances, there has been a delay in installation of equipment for trials of its mechanical CleanTreat purification system, used to help treat salmon against the highly prevalent sea lice threat. 
BMK’s novel approach to treating sea lice is designed to work with its new chemical bath product which is ready for launch into field trials (company peak sales estimate of £25m). The delay is linked to final preparation and installation of systems and equipment for pilot trials.
Consequently we are revising our FY17 financial forecasts in line with the company statement and are reducing sales forecast from £147m to £141m, in line with  consensus. Our DCF valuation of BMK moves to  £517m (from £588m) – owing to near term changes. The fall in the shares over the last year of c 32% means Benchmark is now valued on an EV/sales basis of just 1.3x FY18e.
Sustainable solutions plus greater visibility
Published: Aug 24 2017

Benchmark helps deliver improved healthcare products and welfare services to the global aquaculture and livestock industries.
The introduction by BMK of CleanTreat, an innovative and environmentally sustainable system to purify water used in prevailing sea lice chemical bath treatment, expands the suite of products available to salmon farmers to combat a major threat to the industry. 
The sea lice threat is reported to cost the salmon aquaculture industry over US$1bn per annum worldwide, contributing to reduced production volumes, rising costs and subsequent price increases to consumers. The CleanTreat process is designed to work with most chemical bath treatment products, notably this would include BMK’s Salmosan and its successor, estimated peak sales of £25m (source: BMK). Removal of detached sea lice and chemical residues from treated fish prior to returning them to sea is a key factor in minimising the number of living sea lice returned, reducing the potential future resistance of the parasite to subsequent treatments. 
That good news was followed by the renewal of INVE’s contract with Great Salt Lake Brine Shrimp Cooperative (GSL). This is a key symbiotic relationship and now provides greater visibility on long term Advanced Animal Nutrition revenues. The newly agreed long term distribution agreement is for current and potential INVE replacement diets and animal health products.
BMK shares have underperformed the market recently, and to us the current share price fails to reflect our forecast 2016-2019 revenue CAGR of a healthy 18% and a 39% CAGR in adjusted EBITDA over the same period. Clearly the long term contract with GSL increases our confidence in forecasts of growth. Our valuation remains £588m for the Group, or 112p per share.
Creating a strong platform for growth
Published: Jul 07 2017

Benchmark (BMK) helps deliver improved healthcare products and services to the Animal Health and Aquaculture industry. Rising demand from clients for its products and services to manage sustainability practice in worldwide production and supply chains underlines BMK’s opportunity for significant organic and external growth.
Highlights of the recent H1 results included strong performance in Breeding & Genetics, sales up 76% with recovery in sales of salmon eggs to Chile, and growth in sales volumes and prices in other markets and species.  BMK also laid down further ground roots for expansion, including formation of collaboration with Salmar ASA, a leading salmon producer: validation of BMK’s expertise through the life cycle of the salmon from broodstock to grow-out, and across its entire range of technologies. 
H1’17 revenue rose 44% to £69.2m (£48m H116), 14% excluding acquisitions. Animal Health suffered weakness in Salmosan sales, falling 41% to £7.2m. Group adjusted EBITDA grew 10% to £3.3m. Our revenue forecasts are unchanged, with the launch of new animal health products in H217 and beyond, further recovery in shrimp markets and sustained growth in Breeding & Genetics. We adjust operating expenses in line with H1’17 trends leading to 3-5% drop in adjusted EBITDA estimates in FY17/18.
BMK continued to advance the in-house development pipeline, controlling expenditure to cover near term opportunities including 2-3 key products which are expected to launch before the end of 2017, including the novel successor to Salmosan sea lice treatment. These headline products form a part of an animal health, genetics and nutrition pipeline of over 80 products with estimated peak sales above £718m.
We maintain our forecast of 2016-2019 revenue CAGR of 18%. After some revisions in line with H1’17 trends, our forecasts indicate that BMK is on track to deliver 39% CAGR in Adjusted EBITDA over the same period. Our updated DCF valuation yields a value of BMK of £588m, equivalent to 113p per share. We continue to think that the value of the animal health pipeline is not fully recognised in the market cap. 
View the Results Webinar
Published: Jun 30 2017

Malcolm Pye, Chief Executive Officer, and Mark Plampin, Chief Financial Officer, present the half year results on behalf of Benchmark Holdings.
A leading edge in aquaculture
Published: May 26 2017

Benchmark helps deliver improved healthcare products and services to the Animal Health and Aquaculture industry. Rising demand from clients for its products and services to manage sustainability practice in worldwide production and supply chains underlines BMK’s opportunity for significant organic and external growth.
This week it reported an overall positive H1’17 trading statement, demonstrating that it is leveraging its expertise across its Breeding and Genetics, Animal Health and Animal Nutrition platforms. Highlights of the H1’17 include formation of a new JV with SalMar ASA, the third largest salmon producer in the world. Meanwhile, softness in the shrimp markets continued, as flagged at the FY’16 results. 
Looking forward to H2’17, launch of a novel sea lice treatment is anticipated leading to significant revenues. The treatment, a follow up to Salmosan, will be an important addition to the company’s suite of sea lice control products to address this ongoing marine disease challenge.
The company is on track to deliver new products from its Animal Health pipeline which will contribute significantly to long term value creation. Notably the launch of an innovative and environmentally sustainable sea lice treatment is anticipated in H2'17. Meanwhile, the Braintree vaccines facility is expected to become commercially operational in H2'17, providing the flexibility to develop and manufacture vaccines at an optimal pace and cost; the company has a combined vaccines and animal health pipeline of over 90 products with serviceable markets worth over £750m.
We leave our forecasts unchanged and maintain our DCF valuation of £628m or 120p per share. Although significantly above the current share price, that value seems to us increasingly well supported by the strong outlook and demand for aquaculture technologies.
Reaping the 'Fruits de Mer'
Published: Feb 10 2017

Benchmark (BMK) helps deliver improved healthcare products and services to the Animal Health and Aquaculture industry. Rising demand from clients for its products and services to manage sustainability practice in worldwide production and supply chains underlines BMK’s opportunity for significant organic and external growth. 
After an acquisitive year, Benchmark has the structure in place to provide access to high growth aquaculture markets across hemispheres with breadth and critical mass to provide synergies across its Nutrition, Health, Genetics platforms. BMK’s $342m acquisition of INVE Aquaculture in December 2015 diversified the company’s activities and more than doubled its revenue base: group revenues increased 148% to £109.4m in FY16 (£44.2m), up 20% to £29.8m (£24.7m) stripping out acquired businesses in both years. 
Despite previously flagged headwinds in shrimp markets, pricing, sales and margins on core products held firm. Animal Health sales rose from £21.1m in FY15 to £24.8m, driven by a rebound in Salmosan/Byelice sales. FY16 group trading EBITDA rose from £2.4m in FY15 to £22.3m in FY16. After a £31.7m August placing, end of September 2016 gross cash stood at £38.1m. 
INVE integration is well on track, with further potential synergies from the North-South complementarity. A key account management   process is being implemented to optimise cross-selling opportunities for BMK’s existing platforms, notably in China and Asia.
 
The company’s development pipeline of 90 plus products is set to be a driver of medium to long term growth, enhanced by the combined expertise of INVE. The launch in July of a novel seabass Nodavirus vaccine into commercial field trials, illustrates BMK’s capacity to rapidly develop products in-house and launch into high demand markets. 

After adjustments to our forecasts, we roll forward our DCF valuation which increases from 110p to 120p/share.
Benchmark Holdings webinar outlook and Q&A
Published: Jan 30 2017

Malcolm Pye, Chief Executive Officer, and Mark Plampin, Chief Financial Officer, present the outlook for Benchmark Holdings and answer investors' questions.
2016
Investor-backed to support LT growth
Published: Dec 16 2016

Benchmark (BMK) helps deliver improved healthcare products and services to the Animal Health and Aquaculture industry. Rising demand from clients for its products and services to manage sustainability practice in worldwide production and supply chains underlines BMK’s opportunity for significant organic and external growth.
The company has been active recently: following a 10-yr strategic agreement with the Lerøy Group in July, BMK then announced new JVs with Salten Stamfisk for a land & sea production unit in Norway, producing 150m salmon ova p.a. and with an (undisclosed) major salmon producer to provide breeding & Gx services. The acquisition of Ceniacua (of Columbia) adds Shrimp Gx expertise to its Salmon and Tilapia platform. 
A £31m placing in August allows the company to continue executing its expansion strategy through these new ventures and earmarks additional financial support to strengthen R&D activities and general working capital. 
There was a cautious tone to a trading update in October, but the long term vision is clear. Highlights included good news on INVE integration, but headwinds still affecting SE Asia and Latin America activities, with a wider spread of acquaculture disease and lower harvests (e.g. for shrimp).  
BMK’s  attraction is underlined by its unique business model and above average growth, with forecast CAGR ('16-'21) in revenues and adjusted PBT of 25% and 60%, respectively. We have adjusted our FY17 and FY18 forecasts and the updated DCF calculation supports an upgraded value of 110p/share.
Benchmark Holdings - Equity Development Investor Forum, September 2016
Published: Sep 30 2016

Malcolm Pye, Chief Executive Officer, updates investors on Benchmarks progress.  
View the Results Webinar
Published: Jul 07 2016

As well as reading yesterday's research note on Benchmark you can now hear Malcolm Pye, CEO, and Mark Plampin, CFO, present Benchmark's interim results for the six months ended 31 March 2016.
To view simply click on the video below.
Solid progress on strategic milestones
Published: Jul 05 2016

Benchmark helps deliver improved healthcare products and services to the Animal Health and Aquaculture industry. Rising demand from clients for its products and services to manage sustainability practice in worldwide production and supply chains underlines BMK's opportunity for significant organic and external growth.
Headline figures in recent interim results offer a robust scorecard for the Group and a clear indication of strong growth for the underlying businesses, ex-acquisitions. Despite a number of separate headwinds for Animal Health businesses, EBITDA from Trading activities grew to £9.5m (from £1.2m, H1 2015), demonstrating the initial operational synergies that the recent INVE acquisition should provide in the longer term. 
Adding INVE was a strategic stroke of genius - this profitable business helps diversify revenue streams and reduce dependence on Salmosan. BMK's focus on aquaculture and continuing core investment activities to support R&D, vaccine manufacturing and its product pipeline underlines an exciting and sustainable growth story.
Group revenues increased to £48m (+142%). Animal Health and Advanced Animal Nutrition divisions were notable for their positive contribution in the period. Salmosan/Byelice sales helped a notable improvement in the fortunes of Animal Health in the face of a number of business headwinds. 
New products and R&D investment are the long term plan to create value. BMK has, probably, aquaculture's strongest new product/ technology pipeline - 85 products (from 61) across addressable markets valued up to £742m (was £646m). 
BMK is unique with no obvious comparators. We have reviewed our forecasts, principally adjusting FY17 and FY18 to take account of El Nino headwinds and potential knock-on effects in aquaculture production trends and product demand. Our updated DCF supports a fair value of 95 p/share, reduced, but still well above current levels.
Feeding sustainable growth ambitions
Published: Feb 04 2016

Benchmark (BMK) helps deliver improved healthcare products and services to the Animal Health and Aquaculture industry.
Headline results for the year to Sept 2015 were reassuring after regaining an upper hand in tussles with Salmosan generics, plus stronger than expected H2 results from Animal Health and Technical Publishing divisions.
Of much greater significance going forward was was the post-period reverse takeover of INVE: a strategic coup to diversify revenue streams and reduce dependence on Salmosan sales. BMK's clear focus on aquaculture and continuing core investment activities to support R&D, vaccine manufacturing and its product pipeline underlines an exciting and sustainable growth story.
Adding INVE transforms BMK into more than a profitable company: aquaculture activities should generate >70% and >65% of revenues and GP, respectively. This new leading aquaculture company boasts integrated activities from 'seed to feed' across a number of species and extensive diagnostic, health product and consulting services.
We revise our Group forecasts to include the INVE acquisition, FY2015 results and the divisional trading outlook. Forecast Group revenues in FY2016 and FY2017 are now £117m and £162m (previously £68m, £83m). Trading EBITDA forecasts are £24m and £37m (from £11m and £16m).
BMK is a unique business with no obvious comparators, but a highly related and hugely significant recent news item is ChemChina's massive $43bn agreed bid for Syngenta. Clear evidence of a developing global story on efforts to improve food security for a growing world population.
After a review of our earnings model we maintain our fair value of 130 pence/ share.
View the Results Webinar
Published: Feb 04 2016

As well as reading today's updated research note on Benchmark you can now hear Malcolm Pye, CEO, and Mark Plampin, CFO, present Benchmarks results for the FY15 and discuss their recent transformational acquisition of INVE Aquaculture.
To view simply click on the video below.
2015
Walking the talk
Published: Jul 27 2015

Benchmark have today announced 2 acquisitions in the aquaculture segment which offer considerable synergies across the Group, notably in the fast growing Breeding and Genetics division. At a stroke Benchmark have satisfied their aim of diversifying into fish species other than Salmon.
They are buying 100% of Akvaforsk Genetics Center AS, a Norwegian aquaculture genetics and research business, and 80% of Akvaforsk Genetics Center Inc, which is a tilapia genetics and breeding business based in America. Both targets are debt free. The combined initial consideration is payable solely in cash totalling NOK 140m (c. £11.0m), comfortably satisfied from existing cash balances (stated to have been £31m as at June 30th).
At first sight these deals look a strong fit, bringing Benchmark: an enhanced position as a leader in global aquaculture; new customers across new geographies and fish species, particularly the large and rapidly growing tilapia sector; and the ability to build their offering of products and services for additional farmed fish species going forward.
As regards current trading, the announcement comments on 'strong performance' continuing in Breeding and Genetics, and that there has been a 'substantial recovery' for sales of Salmosan in Chile.
There should be a positive impact on immediate earnings from converting cash (with a nominal yield) into assets that the Company expects to be earnings accretive in the next financial year. Of more significance, we think, is the Group's continued execution of its plans and ability to acquire quality assets in the face of industry competition.          
Our last note (June, 2015) ascribed a fair value to Benchmark shares of 130 pence, which looks well underpinned by these deals.    
A clear growth path
Published: Jun 29 2015

Benchmark helps deliver improved healthcare products and services to the Animal Health industry (and the global aquaculture market). 
Recent interim results confirm the limited damage of a Salmosan generic launching in Chile this year. However, there is much more to the Group and, with the new Breeding & Genetics division (BBG) leading from the front, the opportunities for this broad-based animal health-to-sustainability science Group look set to deliver significant earnings growth. 
Revenues increased by 30% to £19.8m, with a significant contribution from BBG at both the revenue (£9.8m) and trading EBITDA (£3.1m) level. Ongoing core investment activity continues, to support R&D, vaccine manufacturing and its product pipeline. 
A strong component of Group revenue growth was the newly-formed aquaculture breeding and genetics division. Last year's major acquisitions are integrating well, enhancing key synergies and customer demand. 
Benchmark looks to have aquaculture's strongest new product and technology pipeline, with 61 products across addressable animal health markets totalling up to £603m pa.
Our statutory forecasts remain unchanged since we see the changes made following the last trading update as reflective of the pressures on the business in the first months of 2015. Looking forward, there is a strong growth trajectory, with CAGR ('16-'20) in forecast revenues and adjusted PBT of 20%< and 60%< , respectively. 
Benchmark is unique with no obvious comparators, and we believe that for high-growth companies the valuation method that best accommodates this transition is a discounted cash flow.  We maintain our fair value at 130 pence/share, twice current levels.
Generic speed bumps, but clear growth path
Published: May 05 2015

Benchmark helps deliver improved healthcare products and services to the Animal Health industry and the global aquaculture market. 
Their interim results, and FY2015 results, are expected to suffer through the impact of a Salmosan generic on sale in Chile. Pipeline delays add to the potential shortfall in revenues and profits. On the plus side, the new Breeding & Genetics division is performing strongly, even against FX headwinds. 
Salmosan has an inevitable decline ahead, and the Chile situation is volatility in that trend. Nevertheless, continuing core investment activities to support R&D, vaccine manufacturing and its product pipeline underlines an exciting and sustainable growth story.
We reduce our Group sales revenue forecasts: FY2015, by 37% to £40m and FY2016, by 26% to £68m. Trading EBITDA is reduced to £0.2m (was £13m) and £11m (was £22m), respectively. Despite 2015's clear operational challenges, BMK's growth is above average for the sector, with CAGR ('16-'20) in revenues and adjusted PBT of >20% and >60%, respectively. 
For high-growth companies we think that the valuation method that best accommodates this transition is a discounted cash flow (DCF). In light of the trading update and review of our earnings model we revise our DCF fair value to 130p /share (from 150p) versus the current price of 75p.
Growth on track for a sustainable future
Published: Jan 29 2015

Benchmark helps deliver improved healthcare products and services to the Animal Health industry (and the global aquaculture market). Rising demand for its products and services to manage sustainability practice in worldwide production and supply chains underlines the opportunity for significant organic and external growth.
Full year results show a successful 2014, raising close to £25m (net) in its IPO and delivering a trading performance in-line with market expectations. Revenues were £35.4m with Animal Health the main driver, plus a record year for Salmosan. The product pipeline also saw expansion, increasing to 47 (from 30).
It also completed a £70m secondary raise (post period-end) to fund the purchase of a market-leading position in salmon breeding and genetics. Core investment in activities to support R&D, vaccine manufacturing and its product pipeline is also driving an exciting and sustainable growth story.
Forecast growth is above average for the sector, with CAGR ('15-'20) seen in revenues and adjusted PBT of >20% and >40%, respectively. We raise our fair value for the Group to 150 pence/share (from 142 pence).
Benchmark Holdings Results Webinar - January 2015
Published: Jan 28 2015

The management of Benchmark Holdings (AIM: BMK), the international animal health, technical publishing and sustainability science business, discuss their full year results to 30 September 2014 and recent acquisitions.
2014
Jumping upstream into fish breeding
Published: Dec 10 2014

Benchmark helps deliver improved healthcare products and services to the Animal Health industry (notably the global aquaculture market). Rising demand from clients for its products and services to manage sustainability practice in worldwide production and supply chains underlines the opportunity for significant organic and external growth.
It has recently agreed to acquire SalmoBreed (Norway) and control of Stofnfiskur (Iceland), two leading fish breeding and Salmon genetics companies, to form a new division, Benchmark Genetics. There is a planned £70m placing accompanying these strategic acquisitions: the issue proposed is of 82.4m shares at 85p.  Approx £53m is for the two genetics companies, £10m to help expand the vaccine manufacturing operations,  with the balance being available for general corporate purposes.
We see clear industrial logic behind the acquisitions and this move as a very sensible next step. The global Atlantic Salmon harvest in 2013 was in excess of 2m tonnes and the key to its future growth is aquaculture and all-year round salmon production. These deals create a unique out-of-season Salmon egg play for investors.
Our analysis suggests modest dilution in the current year (to end Sept 2015), but increasing earnings enhancement from the year to September 2016 onwards. Indeed a DCF analysis suggests a fair value for the Group, as the plans and promise fall into place, of £312m, translating into 142 p / share.
Benchmark ED Investor Forum Sept 2014
Published: Sep 28 2014

Malcolm Pye, CEO, discusses the opportunity for Benchmark plc and their strategy to grow the business.
Investing in novel cat allergy treatment
Published: Sep 10 2014

Benchmark helps deliver improved healthcare products and services to the Animal Health industry. Rising demand from clients for its products and services to manage sustainability practice in worldwide production and supply chains underlines their opportunity for significant organic and external growth.
The Animal Health division is collaborating with HypoPet AG to develop a breakthrough cat allergy vaccine. Cat allergy is believed to affect over 700m people globally, producing symptoms such as sneezing, coughing, itchy eyes and rashes. 
Cat allergy vaccines in current development, for human use, aim to turn off the individual's allergic response mechanism. In contrast, BMK is to collaborate in developing the innovative HypoCat vaccine for cats.
This is a totally new animal health treatment market, representing a potentially significant market opportunity (over £200m), yet Benchmark's investment is milestone-based and relatively low-risk. A commitment of up to c.£8m into the project has been agreed (over a four-year timeline), against key milestones. As such we believe that the transaction should be a potentially exciting value driver post 2018. 
Benchmark Holdings Interims, June 2014
Published: Jun 26 2014

Malcolm Pye, CEO, Mark Plampin, CFO, and Roland Bonney, COO, give a 25 min presentation on their interim results to March 2014, with 15 min of Q&A at the end.  
Positive Start
Published: Jun 24 2014

Benchmark helps deliver improved healthcare products and welfare services to the global aquaculture and livestock industries. Rising demand from clients for its products and services to manage sustainability practice and performance underlines their opportunity for significant organic and external growth.
Today has seen a strong operational and financial performance in its maiden interim results as a public company. Headline results are trending in-line with our FY14e expectations. Group revenues rose to £15.2m (+43%), with EBITDA from trading activities rising to £2.55m (+60%). 
The company is progressing with its investment and development plans on a number of fronts: the acquisition of Zoetis aquaculture vaccine assets (February), vaccine production capacity expansion plans well advanced, new development team hires and evaluating further M&A opportunities.
Our forecasts highlight Group revenues growing at 10% in FY14e and 38% in FY15e, with significant projections for sales (>20% CAGR) and retained profit growth (>60% CAGR).
Beyond the Blue Revolution
Published: Feb 26 2014

Benchmark recently listed on AIM and helps to deliver improved healthcare products and welfare services to the global aquaculture and livestock industries. Rising demand from clients for its products and services to manage sustainability practice and performance underlines their opportunity for significant organic and external growth.
Opportunities to invest in companies building footholds in pioneer markets are very rare.Global food producers and their vital supply chains increasingly depend on Benchmark services for sustainable agri-industry practices to support their international operations and help protect their brand integrity. 
Benchmark's strategy is to build a 360⁰ integrated health solutions company for aquatic and land-based food animals, and it is progressing well. 
As well as occupying an enviable market position, our forecasts for the Group show revenues growing rapidly: at 10% in FY14e and 38% in FY15e, with forward projections for further sales growth (>20% CAGR) and retained profit (~60% CAGR).