Bolstering liquidity, focusing 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.