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1 May 2009 07:00
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For immediate release 1 May 2009
Genus plc
('Genus' orΒ 'the Company')
Interim Management Statement
Genus, a leading global animal genetics company, today publishes its interim management statement for the four month periodΒ endedΒ 30 AprilΒ 2009.
Trading performance
Genus continuedΒ to trade in line with the Board's expectations.
Based onΒ resultsΒ for the three months to 31 March 2009, tradingΒ followed the trendΒ seen at the half year. Profits wereΒ wellΒ ahead of the prior year,Β driven byΒ US Dollar and Euro strength againstΒ Sterling.Β In constant currencyΒ profits wereΒ at similar levels toΒ the prior year.Β
In the current economic environment, market conditions for Genus' customersΒ in the USA and Western EuropeΒ remainedΒ challengingΒ but continuedΒ to be less soΒ in Genus' other markets.
Overall Porcine performance continued to be robust. InΒ Bovine,Β theΒ USΒ dairy sectorΒ slowed as milk prices continued to fall.Β Β This has resultedΒ in increased price competition and trading downΒ byΒ some ofΒ Genus'Β USΒ customers. The impact on profitability has beenΒ mitigatedΒ by theΒ USΒ 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 2009Β and continued planned investment in growth.Β TheΒ Group's net debt at the end ofΒ MarchΒ wasΒ Β£102.7mΒ (31 December 2008: Β£99.3m). ThisΒ marginalΒ increaseΒ was dueΒ 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 remainΒ challengingΒ in the short term, particularly in theΒ 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.Β
There has been considerableΒ media coverageΒ regardingΒ theΒ recent outbreak of influenzaΒ inΒ MexicoΒ and a number of other countries.Β DubbedΒ 'swine flu'Β it isΒ a human strain of an H1N1 flu virus which hasΒ been found in humans andΒ cannot be caught by consuming meat products.Β
None of Genus' pure line breeding animals is infected with influenza. They are kept under strict bio-security regimes in nucleus farms in theΒ USAΒ andΒ Canada.Β
Speculation regarding the impact ofΒ theΒ outbreak has resulted in a reductionΒ in pig prices and precautionaryΒ import bansΒ 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 countriesΒ where such bans are in place.Β
As a result,Β whilst keeping the situation under close review,Β Genus currently expects there to be no material impact on its businessΒ from the influenza outbreakΒ and the trading outlook forΒ the financial year remains in line with the Board's expectations.
GenusΒ willΒ announceΒ its preliminary resultsΒ for the year ending 30 June 2009Β onΒ 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
GenusΒ creates advances to animal breeding through biotechnology andΒ sells added value products for livestock farming andΒ 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.Β
The Group'sΒ 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 inΒ Basingstoke,Β England, Genus companies operate in 30 countries on six continents, with research laboratories located inΒ Madison,Β USA.
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