Benchmark Holdings: Losses widen for Sheffield genetics firm as search for potential buyer continues

For the last nine months, the company posted an operating loss of £10.2m, compared to £3m at this point last year.

This comes after the firm announced in January of this year that it was undertaking a formal review of its options, which include a potential sale of the company as a whole or of one or more of its individual business units.The move was made due to the company’s belief that its current share price “materially undervalues the combined value of Benchmark's businesses”.

In an announcement posted along with its latest quarterly results, the firm said: “The sales process is ongoing, but there are currently no deals identified or underway and all parts of the business are operating as usual, so there is no impact on the Directors' assessment of going concern.”

Group revenues for the company dropped 10 per cent to £30.7m in the third quarter, driven mainly by 43 per cent drop in the firm’s health arm.

Benchmark Holdings said that this reflected the decommissioning of two of its CleanTreat units, which focus on water purification systems. The decommissioning forms part of the firm’s planned transition to a new business model in its health wing.

Trond Williksen, CEO of Benchmark Holdings, said: "Our two largest business areas, Advanced Nutrition and Genetics, performed well in the third quarter.

“In Genetics, it is particularly pleasing to see continued progress in our Chilean business as well as the positive results of the recent reorganisation of our shrimp genetics activities. Our Advanced Nutrition business remains resilient to the continuing soft conditions in the shrimp markets and is well positioned for market recovery.

“Having streamlined our Health business, rightsizing it to focus on Salmosan Vet during the transition period to a new business model for Ectosan Vet and CleanTreat, we now have a profitable business which maintains its capability to deliver Ectosan Vet and CleanTreat.”