Shares in Genus PLC (LSE:GNS), the animal genetics group, fell 7% to 162p early Thursday even as the company posted a strong set of annual results and unveiled a £60m share buyback.
The animal genetics group delivered a robust set of preliminary results for the year to 30 June 2026, with adjusted profit before tax climbing 35% to £100.2m and revenue holding broadly steady at £658.1m despite a 2% currency-adjusted dip.
Adjusted operating profit rose 25% including joint ventures, helped by strong growth at PIC, a £5.6m milestone payment from Chinese partner BCA, and margin gains at ABS from its Value Acceleration Programme.
Statutory pre-tax profit surged to £310.5m from £28.5m, largely reflecting a £204.1m gain on the disposal of a 51% stake in PIC China into a new joint venture.
Adjusted earnings per share grew 35% to 110.3p, while free cash flow nearly doubled to £62.0m.
The board lifted the full-year dividend 10% to 35.2p a share and, alongside today's results, announced a fresh £60m share buyback, to be completed during FY27.
The sell-off came despite Panmure Liberum describing the year as a "vintage year", with Genus reporting a 30% increase in pre-tax profit at constant exchange rates.
Analysts remain broadly upbeat. Panmure reiterated its 'buy' rating and 3,700p target price, arguing there is "nothing in the price" for Genus's pig respiratory disease-resistance technology, PRP, which is progressing through regulatory approvals in Latin America and beyond.
The broker left its forecasts unchanged apart from the impact of the share buyback.
Panmure Liberum noted that guidance for the year ahead points to pre-tax profit "moderately higher" than the normalised £90.3m base, in line with its own £92.8m forecast and consensus of £93.0m, meaning no material changes were needed to its numbers beyond incorporating the buyback.
The broker added that the shares remain more than 10% below their March highs of just under 3,200p, despite balance sheet degearing and progress on PRP, and said it would be picking up the stock at current levels ahead of further catalysts.
Panmure Liberum reiterated its 'buy' rating and 3,700p target price, saying it sees "nothing in the price" for Genus's PRP technology, which is progressing through regulatory approvals and has begun commercialisation in selected Latin American countries.
Peel Hunt nudged its earnings-per-share forecasts up 2-3% to reflect the buyback, while cautioning that growth next year is likely to be modest given tougher agricultural markets ahead, with the stock trading at 22 times forecast earnings once PRP costs are stripped out.
