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1 May 2009 07:00
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For immediate release 1 May 2009
Genus plc
('Genus' orĀ 'the Company')
Interim Management Statement
Genus, a leading global animal genetics company, today publishes its interim management statement for the four month periodĀ endedĀ 30 AprilĀ 2009.
Trading performance
Genus continuedĀ to trade in line with the Board's expectations.
Based onĀ resultsĀ for the three months to 31 March 2009, tradingĀ followed the trendĀ seen at the half year. Profits wereĀ wellĀ ahead of the prior year,Ā driven byĀ US Dollar and Euro strength againstĀ Sterling.Ā In constant currencyĀ profits wereĀ at similar levels toĀ the prior year.Ā
In the current economic environment, market conditions for Genus' customersĀ in the USA and Western EuropeĀ remainedĀ challengingĀ but continuedĀ to be less soĀ in Genus' other markets.
Overall Porcine performance continued to be robust. InĀ Bovine,Ā theĀ USĀ dairy sectorĀ slowed as milk prices continued to fall.Ā Ā This has resultedĀ in increased price competition and trading downĀ byĀ some ofĀ Genus'Ā USĀ customers. The impact on profitability has beenĀ mitigatedĀ by theĀ USĀ productivity improvement programme commenced in January 2009.
Financial Position
Cash flow for the Group in the period was positive despite the payment of the Company's annual dividend in January 2009Ā and continued planned investment in growth.Ā TheĀ Group's net debt at the end ofĀ MarchĀ wasĀ Ā£102.7mĀ (31 December 2008: Ā£99.3m). ThisĀ marginalĀ increaseĀ was dueĀ to the impact of exchange rate movements on debt levels.
Outlook
Given the challenging global economic environment, Genus expects the markets for its customers to remainĀ challengingĀ in the short term, particularly in theĀ USA. However, the impact on Genus' business is being limited by the Group's geographic and product diversity as well as the robustness of its business model.Ā
There has been considerableĀ media coverageĀ regardingĀ theĀ recent outbreak of influenzaĀ inĀ MexicoĀ and a number of other countries.Ā DubbedĀ 'swine flu'Ā it isĀ a human strain of an H1N1 flu virus which hasĀ been found in humans andĀ cannot be caught by consuming meat products.Ā
None of Genus' pure line breeding animals is infected with influenza. They are kept under strict bio-security regimes in nucleus farms in theĀ USAĀ andĀ Canada.Ā
Speculation regarding the impact ofĀ theĀ outbreak has resulted in a reductionĀ in pig prices and precautionaryĀ import bansĀ of swine and pork products by some countries. Genus' extensive spread of worldwide multiplication farms makes it better placed than its competitors to maintain supplies in countriesĀ where such bans are in place.Ā
As a result,Ā whilst keeping the situation under close review,Ā Genus currently expects there to be no material impact on its businessĀ from the influenza outbreakĀ and the trading outlook forĀ the financial year remains in line with the Board's expectations.
GenusĀ willĀ announceĀ its preliminary resultsĀ for the year ending 30 June 2009Ā onĀ 10 September 2009.
For further information please contact:
Genus plc Tel: 01256 345970
Richard Wood, Chief Executive
John Worby, Finance Director
Buchanan Communications Tel: 0207 466 5000
Charles Ryland, Isabel Podda
About Genus
GenusĀ creates advances to animal breeding through biotechnology andĀ sells added value products for livestock farming andĀ food producers. Its non-Genetically Modified Organism (GMO) technology is applicable across all livestock species but is only commercialised by Genus in the bovine and porcine farming sectors.
Genus' worldwide sales are made in seventy countries under the trademarks "ABS"
(dairy and beef cattle) and "PIC" (pigs) and comprise semen and breeding animals with superior genetics to those animals currently in production. Customers' animals produce offspring with greater production efficiency, milk and meat output and quality and use these to supply the global dairy and meat supply chain.Ā
The Group'sĀ competitive edge has been created from the ownership and control of proprietary lines of breeding animals, the biotechnology used to improve them and the Group's global production and distribution network.
Headquartered inĀ Basingstoke,Ā England, Genus companies operate in 30 countries on six continents, with research laboratories located inĀ Madison,Ā USA.
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