Sheffield, U.K.-based Benchmark Holdings is undertaking a strategic corporate review to determine its options to boost its value, including a partial or total sale.
Benchmark recorded improved revenue growth and improved profitability across all of its business areas in FY2023, but posted a statutory operating loss of GBP 21.6 million (USD 27.4 million, EUR 25.2 million). That loss was, however, an improvement over the GBP 30.5 million (USD 38.7 million, EUR 35.6 million) loss it posted in FY2022.
The improved losses and consistent revenue growth are part of why the company is launching a strategic review, as its share price has maintained a fairly steady valuation of below NOK 5.00 (USD 0.47, EUR 0.43) per share.
“The board believes that the current share price materially undervalues the combined value of Benchmark’s businesses and the long-term prospects of the company, which may at least in part be due to the tightly held and illiquid nature of its ordinary shares,” Benchmark Holdings said in a release.
The perception of the company being undervalued led the board to consult Benchmark Holdings’ major shareholders, and ultimately decide to undertake a strategic review of the company to determine the options it has available that are “attractive relative to the board’s view of intrinsic value.”
Benchmark will comply with a U.K. Takeover Panel requirement to have any discussions about the sale of the company take place via a formal sale process. In the first phase, Benchmark Holdings is inviting potential buyers to submit non-binding indicative offers under a non-disclosure agreement.
Benchmark Holdings undertook and completed a restructuring at the end of FY2020, and since that time its revenue and adjusted earnings before interest, taxes, depreciation, and amortization have increased 61 percent and 128 percent, respectively.
During the presentation of its FY2023 results, Benchmark CEO Trond Williksen said the company has been steadily improving its performance.
“If you look at the key financial metrics of the group, we have improved all of them during the last financial year,” Williksen said. “Given the market conditions that we have been through during the year, we are satisfied with the progress we have been able to achieve.”
In 2023, Benchmark Holdings purchased the remaining 10.52 percent of its subsidiary Benchmark Genetics Iceland, which has also grown since Benchmark first acquired an 89.48 percent stake in the company in December 2014.
While it is up for sale, Benchmark's leadership clarified that the company is currently not entertaining any pending offers.
“The company is not currently in any discussions with any potential offeror relating to an acquisition of the issued and to be issued share capital of the company,” Benchmark Holdings said.
Photo courtesy of Benchmark Holdings
