Benchmark Sells Genetics Division for £260m, Focuses on Nutrition and Health
Benchmark Holdings Divests Genetics Division, Focuses on Aquaculture Nutrition and Health
Worthing, UK – Benchmark Holdings (LON:BMK), a leading aquaculture biotechnology company, announced its fourth-quarter and full-year results for 2024 last week, marking a period of significant change for the company.
Benchmark, headquartered in Sheffield, has undergone a strategic review and divested its genetics division to Novo Holdings for £260 million. This move, finalized in the first quarter of 2025, represents a multiple of 17.9 times adjusted earnings and unlocks considerable value for shareholders.
“This disposal unlocks significant value for shareholders and enables the group to focus on its advanced Nutrition and Health business areas,” said Benchmark CEO Trond Williksen. “It creates an opportunity to reduce complexity and streamline the group to considerably reduce costs.”
Return of Capital and Financial Performance
Proceeds from the sale will be used to return capital to shareholders, reduce debt, and repay the company’s unsecured listed green bond and revolving credit facility.
While the genetics division has been treated as held for sale and discontinued in the annual report, its 2024 results are included to provide a complete view of the group’s performance before the disposal.
Benchmark reported revenues of £90.4 million for the year, a 13% decrease compared to the previous year. Adjusted earnings also declined by 30% to £11.9 million. The company reported an operating loss from continuing operations of £35.5 million, a 102% increase year-over-year.However, the fourth quarter showed marginal improvement, with operational revenue reaching £19.6 million, just 1% behind the same period in 2023. Total revenue, including discontinued operations, rose 1% year-over-year to £36.8 million.
Focus on Nutrition and Health
benchmark’s decision to divest its genetics division reflects a strategic shift towards its core strengths in aquaculture nutrition and health. The company specializes in developing innovative food,nutritional supplements,and medications for fish farms,aiming to improve the health,growth,and sustainability of farmed fish stocks.
“Following the disposal, Benchmark will become a lean, profitable organisation with a solid balance sheet, focused on realising the significant value and potential in our continuing business,” Williksen stated.
Benchmark’s shares opened trading on Friday at 33.95p, down 19% over the past three months and 5.7% over the past year.The company has a market capitalization of £250 million.
the company’s strategic realignment and focus on its core competencies position Benchmark Holdings for future growth in the expanding aquaculture industry.
Benchmark Holdings Divestitures Genetics Division: An Interview with CEO Trond Williksen
NewsDirectory3: Benchmark Holdings announced it’s strategic decision to divest its genetics division. Can you elaborate on the rationale behind this move, Mr. Williksen?
Trond Williksen: This divestment is a key part of our revised strategy, allowing us to concentrate on our core strengths in aquaculture nutrition and health. We see tremendous growth potential in these sectors, and streamlining our focus will enable us to capitalize on these opportunities more effectively.
NewsDirectory3: The sale to Novo Holdings was valued at £260 million. How will these proceeds be utilized?
Trond Williksen: The proceeds will be primarily used to return capital to shareholders, reduce debt, and repay our green bond and revolving credit facility. This will solidify our financial position and enable us to invest further in our core business areas.
NewsDirectory3: While 2024 saw a decline in revenues and adjusted earnings, the fourth quarter showed some positive signs. What factors contributed to this improvement?
Trond Williksen: We implemented several operational efficiencies throughout the year.These measures, combined with a strengthening market demand in our core nutrition and health segments, contributed to the improved performance in the fourth quarter.
NewsDirectory3: what are your expectations for the future of Benchmark Holdings following this strategic shift?
Trond Williksen: We believe this realignment sets the stage for sustained growth and profitability. By focusing on our core competencies in nutrition and health, we are well-positioned to meet the growing demands of the aquaculture industry and deliver value to our shareholders.