Tech investments are key
Despite entering a period of consolidation, Benchmark Holdings is by no means discounting the possibility of adding to its extensive portfolio.
Speaking to Fish Farming Expert, Malcolm Pye, the firm’s CEO explained: “Our big structural acquisitions, which built the five core sectors of the business, have been completed, and we’re now in an era of integration and organic growth – it’s a fair bit of work to bring together elements such as the systems, research and marketing.”
Nevertheless, he believes that further acquisitions will help the firm maintain its cutting edge.
“We’re always willing to bring into the group new technology and will continue to be so. We can’t rely on doing everything in-house, especially in a world where technology is developing so rapidly – you need to buy in when the right technology becomes available,” he explains.
One of the key criteria of Benchmark’s acquisition strategies has been to select companies run by competent personnel and the Sheffield-based firm allows a level of independence to remain within its various component companies, while takeovers haven’t tended to be marked by decimation of existing staff.
“We’ve acquired businesses with excellent management teams, the important bits are their people, and we’re not in rationalisation mode,” Malcolm points out.
Long term investments
This expansionist policy has largely been possible due to the backing of investors, who have shown great faith in Benchmark’s recent expansion, especially as many projects within the portfolio are likely to take time to mature.
“We really are looking at quite long-term investments – it’s not unusual to take 10 years to develop a vaccine, for example,” Malcolm concedes, “but, thankfully, our investors understand that and we’re now at a point where we’re able to launch new products every year.”
As a result, although Benchmark may have made pre-tax losses of £1.4 million in 2014 and £11.4 million in 2015, revenue grew by 25% to reach £44 million in 2015 and the firm has been listed among the top 1000 SMEs in the UK for the last two years.
“We don’t have high levels of borrowing, we have highly supportive shareholders and a strong income generation,” Malcolm reflects.
And, although Malcolm does count a number of “household names” amongst his investors, it is reassuring that almost a good percentage of the business is still owned by Benchmark employees.
“Our investors include Investco, Woodford, Lansdowne, Allianz, Ferd and Grosvenor, but the management still owns a reasonable chunk of the company and a high percentage of our employees own shares,” he points out.
