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Genus reports good full-year results, bull breeding success

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Animal genetics group Genus PLC (LSE: GNS) reported full-year results which it called “resilient in challenging markets”, with a 15 percent rise in pretax profit and a 14 percent increase in turnover, and it announced a significant success within its bovine research and development programme.

Revenue rose to £280.4 million in the year to June 30 2009 from £247.1 million previously, generating adjusted pretax profit of £32 million, up from £27.9 million a year earlier.

Chief executive Richard Wood commented: “The steep downturn in world agricultural markets has been exacerbated by extremely high animal feed prices against a backdrop of global recession. We believe that the recovery in agricultural markets has the potential to be equally steep.”

“In the meantime, we have delivered good results and continue to make progress in implementing our strategy of entering developing markets that offer strong growth opportunities for the future,” he added.

Genus is recommending a 10 percent increase in the total dividend to 11 pence per share to reflect its confidence in the long-term prospects of the business. It believes that the recovry in the agricultural markets is likely to commence during the second half of the 2009/2010 financial year.

In a separate statement, the company said its bovine research and development business has been successful in increasing the number of Genus-bred dairy Holstein bulls included in the internationally renowned Type and Production Index (TPI) ranking list.

The TPI, recently published in the US, has three Genus bulls in the top 6 and 17 bulls in the top 50, with the latter figure up from eight a year ago.

The new entries to the TPI ranking list graduated from the historical bull programme that tested only 200 bulls per year. This programme has now been increased to 300 bulls per year by using the company's newly expanded facility in Wisconsin. This increase in the programme size should improve the number of bulls graduating each year at the end of the five year gestation.

Quick facts: Genus plc

Price: 2986 GBX

LSE:GNS
Market: LSE
Market Cap: £1.94 billion
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