6th Sep 2018 09:06
LONDON (Alliance News) - Animal genetics company Genus PLC on Thursday said its annual pretax profit was severely harmed by a reduction in the non-cash fair value of its biological assets.
In its financial year ended June 30, the company's pretax profit dropped 81% to GBP7.8 million as its net IAS 41 biological asset was marked down by GBP28.7 million in non-cash fair value. This compares with a GBP1.1 million reduction the year before.
Shares in Genus were down 4.9% at 2,590.00 pence on Thursday morning.
However, profit after tax increased 21% to GBP41.6 million from GBP34.3 million due to non-cash deferred tax credits relating to its biological assets.
Revenue grew 2.4% to GBP470.3 million from GBP459.1 million year-on-year. Genus ABS, the company's Bovine sales business, led the increase with revenue up 7.5% to GBP210.6 million from GBP195.9 million on sexed semen sales. Conversely, revenue from the company's Genus PIC porcine division slipped 0.7% to GBP247.7 million from GBP249.5 million.
The company has declared a 17.9 pence per share final dividend, which will bring the full-year total to 26.0p per share. This represents a 10% increase from its 23.6p per share dividend the prior year.
Post year-end the company entered a partnership with Danish porcine genetics company Mollevang, which will distribute the company's Genus PIC products to the Danish market.
"The successful launch of Sexcel, our innovative proprietary 21st century sexed semen product in September 2017, was a real highlight after many years of pioneering development...The commencement of the strategic partnership with Møllevang in July 2018 will further strengthen and bring new opportunities to our PIC business," said Genus Chief Executive Karim Bitar.
"In the short term, the external environment for many of our customers is challenging due to trade disputes and the recent spread of African Swine Fever to China. Notwithstanding this, we see continuing opportunities for growth," Bitar added.
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