Benchmark Holdings sinks as sales dragged down

The share price of AIM-listed veterinary group Benchmark Holdings (LON:BMK) has dropped by 7.09% to 45.99p (as of 13:45 GMT) as it said revenues for the year ending 20th December would be roughly 3% below the prior period. Restructuring has begun and the company is looking to dispose of several non-core divisions.

Executive Chairman Peter George commented: “It is disappointing to report a performance which is below that expected at the beginning of the financial year largely due to market conditions in Advanced Nutrition.

“Following the management changes announced in August, the Company has accelerated its programme of efficiencies including the disposal and exit from non-core businesses and the implementation of a cost saving plan.

“During the year the Group made good progress towards the launch of product candidate BMK08 which, together with its co-dependant technology CleanTreat®, has the potential to be transformational for the industry, delivering a solution with zero environmental impact to one of the industry’s biggest challenges.

“The Company is considering the optimal strategy to take CleanTreat® from trial to commercial scale given its importance to product candidate BMK08 and its broader industry wide applications.

“The market has a growing need for solutions that improve the sustainability of food production in aquaculture. Benchmark’s focus on delivering products and solutions that improve animal health and welfare, and that reduce environmental impact, positions it as a leader in improving sustainability standards in aquaculture.

“While the timing of the recovery in the shrimp and seabass/seabream markets is uncertain, I remain confident that the actions we are taking and the products we are launching will move the Group from its R&D investment phase into commercial profitability”.