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Pharma & Biotech

Genus charges higher as CEO announces retirement, profits fall less than feared

Genus PLC (LSE:GNS) investors gave the retirement gift of backhanded criticism on Thursday as the announcement that the company's CEO Stephen Wilson is stepping down sparked a near 9% share price jump.

The bull and pig semen harvesting group said Wilson will retire in September, after four years in the role and a decade at the company.

Chairman Iain Ferguson said in a statement that the search for a replacement has begun and noted that the company is “making great strides in its vision to sustainably pioneer animal genetic improvement to help nourish the world” under Wilson’s tenure.

The share price may have been boosted by interim results from the FTSE 250-listed group, though while revenues were up 25% to £350mln, statutory profit before tax shrank 39% to £15mln amid a “gradual recovery” in China. The dividend was held at 10.3p.

Analysts at City broker Liberum Capital said it was a “strong set” of numbers, though noted that there are “a lot of moving parts” and a combination of geographic diversification and a continued shift towards royalties “helped iron out the ups and downs”.

Peel Hunt analysts noted that underlying profit was up 14% to £42.2mln, compared to its forecast of £42.0mln.

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