(Alliance News) - Benchmark Holdings PLC on Tuesday reported a narrowed first-half loss and increased revenue, primarily driven by sales of marine fish species, and said it is "well positioned" in the short term despite an expected decline in sea lice sales.

The West Sussex, England-based aquaculture biotechnology company reported a pretax loss of GBP1.9 million for the half year ended March 31, slimmed from GBP5.1 million a prior year. Its loss for the second quarter ended March 31 widened to GBP2.0 million from GBP1.5 million.

Revenue increased 25% for the half year to GBP98.9 million from GBP79.2 million the prior year. In its genetics division it increased 30% to GBP34.5 million from GBP26.6 million, primarily because sales of salmon eggs rose 45% to GBP181 million from GBP134 million. The health division's sales rose by 78% to GBP19.1 million from GBP10.7 million, with Benchmark noting "growing adoption of our highly efficacious sea lice solution".

Meanwhile, revenues in advanced nutrition increased 8% to GBP45.3 million from GBP42.0 million over the six months, despite decreasing slightly by 1% in the second quarter to GBP22.6 million from GBP23.0 million. Benchmark attributed this to "soft shrimp markets", with shrimp sales declining to GBP700,000 in the 2023 financial half year from GBP800,000 the previous year.

Benchmark said it was "on track to deliver strong growth for the year in line with market expectations", with good visibility of salmon egg sales in Norway and Iceland.

It said the global shrimp market should remain unchanged in the short term, but conditions will improve as global inventory levels normalise. The company also expects decreased revenue in the third quarter "to reflect the seasonally low sea lice treatment season" before an increase in the fourth quarter.

"We continue to focus on achieving profitability and cash generation whilst making good progress towards our medium-term objectives; we remain on track to deliver strong growth for the year in line with market expectations," Chief Executive Officer Trond Williksen commented.

"Our fundamentals are strong and we have significant opportunities to continue building our track record of consistent growth...Benchmark is well positioned to play an important role in helping the aquaculture industry deliver sustainable growth and meet the needs of a rising population."

Shares in Benchmark were 0.1% lower at 41.45 pence in London on Tuesday.

By Emma Curzon, Alliance News reporter

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