Genus PLC's (LSE:GNS) shares rose 7% following a strong trading update for the year ending June 2025.
The animal genetics group reported underlying performance in line with expectations and highlighted double-digit profit growth in its PIC pig breeding business.
A significant boost came from a £3.7 million milestone payment triggered by the US Food and Drug Administration’s approval of Genus’s PRRS2 Resistant Pig gene edit.
The company’s ABS cattle genetics segment also exceeded expectations in the second half, with its Value Acceleration Programme delivering £8.5 million of in-year benefits.
Overall, Genus now expects adjusted profit before tax of at least £72 million, including the milestone receipt, or £68 million excluding it.
Cash conversion remained strong, helping reduce leverage below 1.6 times by year-end.
"Genus has made strong profit progress, despite currency headwind," said Peel Hunt in a note.
"In addition, cash conversion has been strong, it has secured approval for the PRP in the US, and made material progress on royalties in China."
The broker says 'buy' up to 3,100p, a 29% premium to the current price of 2,390p (up 160p on the day).