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The share price of aquaculture biotechnology business Benchmark Holdings (LON: BMK) has rallied after a trading update from the company said it has performed ahead of expectations during the fourth quarter.
“Following positive financial results in Q3 2021, the company maintained this momentum in Q4 2021 and has delivered a stronger than expected trading performance across its three business areas,” said Benchmark.
The company revealed the momentum was driven by its continued strong commercial focus, disciplined cost control, and a further recovery in the end markets.
Benchmark's advanced nutrition division has continued to grow, while its genetics business delivered a positive end to the year. Meanwhile, its health business area has achieved its first revenues from its sea lice treatment, Ectosan Vet and CleanTreat.
As a result, all business areas delivered above expectations in September.
In addition, Benchmark's Adjusted EBITDA for FY21 is expected to be significantly ahead of the current market consensus of £15.9m.
Trond Williksen, CEO of Benchmark, commented: “We are pleased by the continuing momentum in the business, which reflects the benefits of our clear commercial focus, having streamlined the organisation, our continued disciplined approach to cost control and good demand for our products in our recovering markets.
“As a focused aquaculture biotechnology company with three strong business areas, we are well-positioned to capture market opportunities and deliver profitable growth.”
The AIM-quoted company's shares have risen 12.09% to 64p following the update.
Benchmark shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are BMK shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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