Yet another UK business set to explore exit from ‘illiquid’ London Stock Exchange
Genetics, health and advanced nutrition business Benchmark Holdings has become the latest company listed on the London Stock Exchange to publicly explore a potential sale.
The Sheffield-headquartered firm said it believes that its 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”.
Following the news, issued to the London Stock Exchange, shares in Benchmark Holdings surged.
The announcement comes after logistics and warehouse outfit Wincanton agreed terms with CEVA Logistics to go private in a £556m deal.
Over the last 18 months, the London Stock Exchange has seen a spate of take-private deals, mostly led by private equity, with valuations in London lower on a price to earnings ratio than competitors listed on other global exchanges.
Benchmark Holdings’ statement added: “Management actions over the last three years have delivered substantial revenue growth and improvement in profitability and cash conversion.
“Since FY20, Benchmark’s revenue from continuing operations has grown from £105.4m to £169.5m in FY23 and adjusted EBITDA has increased from £15.5m to £35.5m.
“The company is well positioned with a strong balance sheet and significant headroom to grow within its existing markets, as well as multiple potential avenues for expansion.”
Benchmark Holdings also said that for the full year to September 30, 2023, its revenue rose by 7 per cent while its EBITDA increased by 15 per cent.
The business said its board had unanimously decided to conduct a strategic review of its options, including a sale of the whole company or one or more individual divisions.
Benchmark Holdings also confirmed that it 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”.