Genus PLC (LSE:GNS) shares trotted 8% to 2,567p after the livestock genetics company reported a "strong start" to its financial year, with adjusted profit before tax expected to be "modestly" ahead of the current City consensus forecast.
Forecasts for the year to June 2026, the range of analyst forecasts for currency-adjusted profit before tax is from £77.6 million to £85 million, with the average at £80.5 million, the FTSE 250-listed group said in a short statement ahead of its annual shareholder meeting.
PIC, its pig genetics arm, has seen strong trading, with every geographic region seeing growth in royalty revenue and adjusted operating profit, led by a particularly good start in China.
On the downside, adjusted operating profit at ABS, the beef and dairy cattle semen and embryo dealer, has been slightly lower than expected.
This is said to be due to phasing, with CEO Jorgen Kokke saying "we expect stronger performance in the second half".
With PIC "continuing to demonstrate its robust growth model", he said the company was confident about the rest of the year.
Broker Panmure Liberum said it would be upgrading PBT forecasts by just under 5% this morning.
"The outlook for ABS hasn’t changed but the phasing of IntelliGen orders means that ABS operating profit will have more of an H2 bias than expected. The shares have been drifting a little over the last few months but today’s update should reassure, especially given that this is the fourth upgrade in a row."