Benchmark Holdings guidance hit by challenging conditions and possible license delays
Benchmark Holdings
48.00p
16:34 25/04/24
Aquaculture health and genetics business Benchmark 's expectations for its full-year revenue and profit mix were changed after the "challenging conditions" seen in the global shrimp and Mediterranean seabass and bream market during the first half of 2019 extended into the third quarter, which also had a knock-on impact on its advanced nutrition arm.
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The AIM-listed group also blamed a reduced contribution from trials of certain pre-license pipeline products within animal health following delays in several territories.
Part of that reduced contribution was the result of Benchmark's decision to pursue a smaller number of trials than expected.
On a more positive note, management said that the company was actively progressing a programme of operational and structural efficiencies, including key commercial licensing deals for its non-core animal vaccines which, if completed during the financial year, were expected to "substantially offset" the negative changes in the global shrimp and Mediterranean seabass business, as well as in the trials scheduled for its animal health products.
Nonetheless, here too, Benchmark said that "there is a risk to the delivery of these deals within the current financial year."
Notwithstanding those "short-term challenges", Benchmark's board said the company was be "well-positioned" in its markets, with the opportunities for its existing products and those coming from its pipeline "strong", adding that it continued to progress on delivering its five-year strategy.
As of 0925 BST, Benchmark shares had tumbled 30.77% to 36p.