Progress on the road to profitability

BMK transformed operations during FY20 against the challenging macro conditions brought about by Covid-19, completing a fundamental restructuring via nine disposals in a 12-month period. The latter raising up to £44m, with the closure of non-core or loss-making activities allowing a refocus of the business on aquaculture and a rebasing of the cost structure. Consequently, BMK has reinforced its financial position, boosted liquidity by £50m, and appears very well positioned to execute its growth strategy to achieve commercial returns. This leads us to upgrade our FY 21/22 AEBITDA forecasts and to expect a net profit in FY23.

The Group is uniquely positioned to build selectively on its leading market positions in aquaculture, notably in developing innovative and sustainable products, diversifying its product range, coupled with a strong focus on profitability and from a position of improved balance sheet strength. We also raise our retained value per share from 63p to 72p on our updated forecasts. While the shares have performed well on the back of successful disposals, those gains look fully justified.