Benchmark to monitor potential impact of coronavirus on business

Benchmark Holdings said its first quarter results were impacted by continuing market weakness in advanced nutrition.

As a result, group revenues from continuing operations were 15.5 per cent below the prior year.

The company said it was monitoring the potential impact of the coronavirus on its business.

To date, the coronavirus has led to a suspension of shrimp imports to China, affecting shrimp producers principally in Ecuador and India.

In addition, shrimp production in Vietnam and Thailand has decreased as a result of preventative measures constraining activities and consumption across Asian markets has declined. Benchmark said

After the period end, the company raised £42m net proceeds through a placing and open offer with existing and new shareholders to fund the scale up of CleanTreat necessary for the commercialisation of the company’s new sea lice treatment BMK08 and for working capital purposes.

Peter George, Executive Chairman, commented: “As expected, our first quarter saw a continuation of the trends reported at year end, with weak shrimp and Mediterranean seabass/bream markets affecting Advanced Nutrition and outweighing a good performance in Genetics.

“So far the impact from coronavirus has been minimal but we remain cautious given our exposure to the Asian end markets.

“The submission of our regulatory dossier for BMK08, our novel sea lice treatment is a significant milestone. Following the recent fundraise we are in a strong financial position to prepare for the commercial launch.”

“We remain on track to complete our planned disposals in 2020 and are accelerating our restructuring and cost savings programme which will help us offset the ongoing adverse conditions in Advanced Nutrition and deliver on expectations for the full year.”