Food and farming supplier Benchmark (BMK:AIM) nets a new contract for one of the world’s top salmon producers Lerøy, triggering a 8% rise to 54p.
A subsidiary of Benchmark’s Breeding & Genetics division, SalmoBreed, has signed a ten-year agreement with Lerøy Aakvik Roe and Stamfisk for the supply of genetically modified salmon eggs.
The agreement allows Lerøy to start breeding with SalmoBreed’s genetic lines to produce and sell the strain to companies within the group.
Benchmark delivers advanced healthcare products to the animal health and aquaculture industry and aims for sustainability practices in production and supply chains.
While the contract will not make a material financial contribution to Benchmark in the short term, it is seen as a strategically important move as it will endorse the ability of SalmoBreed to produce world-class salmon strains with a leading producer.
Benchmark CEO Malcolm Pye said: ‘We are very pleased to have reached this agreement with such a prominent player in the space, which is testament to the great work being done at SalmoBreed and in our Breeding & Genetics division as a whole.’
Analysts at research house Equity Development note earnings before interest, tax, depreciation and amortisation (EBITDA) from trading activities rose to £9.5 million from £1.2 million in the first quarter of 2015, aided by the acquisition of INVE Aquaculture.
