Promising results for “world’s biggest” aqua biotech firm

Pye’s claim accompanied the publication of its financial results for the year ending 30 September 2016, which was billed as a “transformational” year for the aquaculture biotechnology and food chain sustainability business – 90% of which is now devoted to aquaculture.

Although operating losses leapt from £11.6 million to £22.3 million, this was largely attributed to the £230 million acquisition of INVE Aquaculture in December 2015, which created a new Advanced Animal Nutrition division, and £11.7 million in R&D investments.

Meanwhile revenues soared from £44.2 to £109.4 million, thanks in part to INVE generating £55 million for the year and in part to a recovery of Salmosan sales. EBITDA before exceptional expenditure and acquisition related costs was £9.2m compared with a loss of £5.7m last year.

Operational highlights included the successful integration of INVE into the Benchmark Group; the first sales of an in-house nodavirus vaccine for sea bass; the establishment of a tilapia breeding programme in Asia; the acquisition of a world-leading shrimp breeding programme in Columbia from Ceniacua; the construction of a £16 million vaccine development facility in Essex; the construction of a year-round, land-based production unit (Salmobreed Salten) in Norway, which will increase the group’s salmon ova production by 37.5%; and 10-year contracts with three salmon breeders to supply genetic material, breeding services and health support.

Meanwhile eight products developed in-house are now commercially available or awaiting final regulatory approval, bringing the group’s product pipeline to 94, with a potential market of £783 million.

Responding to the results, Malcolm Pye said:  "I am pleased to announce that the Group has delivered a financial performance in line with the Board's expectations, in a transformational year. Our strategy of diversification has mitigated the impact of environmental headwinds such as the drought caused by El Niño and the temporary Chilean border closure. Our acquisition strategy has already begun to show its strategic worth, providing access to a wider client base and technical insight which is enhancing our existing suite of products, as well as an established distribution network into fast growing markets. We continue to execute our strategy of deploying world leading technology through established distribution channels into long term growth markets.

"As planned, we have been investing in manufacturing capacity this year in order to serve our fast growing portfolio of products, with our state-of-the-art plant in Braintree in its commissioning phase. This increased capacity will allow us to deliver our product pipeline which continues to progress well, with a number of products expected to enter commercialisation from 2017 to 2019. Seafood is becoming a more desirable and important component of diets across the world, driven by increasing health, wealth and the limitations of the current food chain. We are now the world's biggest player in aquaculture biotechnology, placing us at the forefront of this 'Blue Revolution'."

Chairman, Alex Hambro, added: “The year ended 30 September 2016 was a transformative one for the Benchmark Group and saw us complete and consolidate our strategic platform; from genetics and egg production through to specialist nutrition and into the provision of veterinary services and health products for the global aquaculture sector. As a result, Benchmark is now uniquely resourced and positioned to provide an integrated package of products and services that have the potential to unlock some of the key biological constraints which hold back our customers' production potential. The Group's technology platform of genetics, nutrition and health is supported by our technical knowledge, manufacturing and research capabilities. This combination enables us to have a significant market presence in the three key aquaculture species – salmon, tilapia and shrimp.”