DJ Benchmark Holdings PLC Half-year Report
— Revenue increased by 142% to GBP48.0m (H1 2015: GBP19.8m). Like for like sales, excluding businesses acquired in either 2016 or 2015, increased 42% to GBP13.3m (H1 2015: GBP9.4m). — EBITDA from Trading Activities(1) grew by GBP8.3m to GBP9.5m (H1 2015: GBP1.2m)
— Acquisition of INVE Aquaculture in December 2015 for $342m (c.GBP230m) created new Advanced Animal Nutrition division
o Funded via successful GBP219m (gross) equity raise
o $70 million revolving credit facility secured to support the equity raise and the enlarged group's working capital needs
— Temporary closure of Chilean border to Icelandic produced salmon eggs impacted Breeding and Genetics revenues
— Operating loss of GBP15.2m (H1 2015: GBP4.0m) after increase of investing activities to GBP18.8m (H1 2015: GBP3.6m), including GBP11.8m of expensed acquisition and integration costs
— Expensed R&D increased by 150% to GBP6.0m (H1 2015: GBP2.4m)
— GBP8.3m invested in new vaccine manufacturing capacity at Braintree and marine R&D facilities at Ardtoe
Operational highlights:
— Progress made on key strategic investment objectives:
o Transformative acquisition of INVE Aquaculture in December 2015, more than doubled the size of the Group's operations
o Continued investment in scientific research and development resources, and encouraging progress in the development pipeline
— INVE integration progressing well with first operational synergies realised
— Braintree manufacturing facility expected to enter commissioning by September 2016
— First sales of new products in Animal Health and Breeding & Genetics
— Recovery of market share for Salmosan(R)/Byelice(R) in Chile with some discounting of selling price
— Challenging first half for Breeding & Genetics due to temporary border closure and the impact of El Niño on climatic conditions
— Product pipeline of 85 products, with a potential addressable market of GBP742m per annum
— Good progress with HypoCat product development
Alex Hambro, Chairman of Benchmark, said: “The integration of INVE Aquaculture into the Benchmark Group has transformed the business and largely completes our divisional structure. The benefit of securing diversified revenue streams is becoming increasingly apparent and we expect further revenue streams to materialise during the remainder of this calendar year as our product development pipeline matures and benefits are reaped from the capital expended upgrading Braintree's vaccine production facility and Ardtoe's aquaculture trials facilities.”