Genus Regulatory News (GNS)

18 Jul 2007 07:01

Genus PLC18 July 2007 For Immediate Release 18 July 2007 Genus Plc Pre-Close Trading Update Genus Plc, the world's leading animal genetics company today issued an update ontrading for the year to 30 June 2007. Group Performance As predicted in the half-year statement, market conditions continue to befavourable and as a result, underlying trading, as upgraded at the half year,has been in line with expectations across all business sectors. In addition, thecompany continues to make cost savings in line with its previous revisedestimates. This improvement was, however, more than offset by a larger thanexpected foreign exchange impact and one-off administration fees associated withthe residual Dalgety Pension Scheme. In North America, the dairy industry benefited from an upturn in the milk cyclewhile the pig market was stable despite higher feed prices. Trading conditionsstarted to improve in Australia, following the drought experienced during thefirst half year. We increased our market share in the bovine business in our twolargest markets, the UK and the USA and prices remained stable. Pig meat prices across Asia recovered strongly due to shortages in supply butremained low in Europe. Milk prices fell across Europe although they remainedabove average world prices. In May, we saw the first increase in the Europeanmilk price since 2001. We made further reorganisational changes in the European pig business that addedto the profit improvement reported in the first half. We also completed the saleof the French nucleus herd that will deliver savings in this new financial year. Both the US and Canadian dollars weakened further during the second half tocreate an approximately £3m exchange impact on our results for the year comparedwith our previous estimate of £2m. We have made progress with the divestment of the non-core businesses of AnimalHealth and Development Consulting that we expect will both be sold during thefirst half of the new financial year. We are reviewing strategic options for theremaining shrimp business in Mexico that has been turned around and is currentlyprofitable. Move from AIM to Official List As previously announced, the Company intends to move its listing from AIM to theOfficial List following the publication of the preliminary results. We are awarethat a number of small shareholders hold Genus stock for Inheritance Taxpurposes and we intend to offer these investors an opportunity to exit fromtheir investment at minimum cost, should they so wish. This will be accomplishedby offering a low cost dealing facility with buyback and placing, as previouslyoffered, which will occur following the preliminary results announcement. Inparallel, we will be asking our brokers to help manage the transition for largerIHT motivated shareholders. 2006/07 Pro Forma Results Last year, Genus changed its financial year-end to 30 June. As a result, thecomparative information to be included in the 2007 Annual Report and FinancialStatements will be for the fifteen month period to 30 June 2006. To assist withanalysis and comparison, summary unaudited pro forma results for the twelvemonths to 30 June 2006 are provided below: £m 15 months to Pro Forma Unaudited proforma 12 30 June 2006* Restatement* months to 30 June 2006 Group Revenue 201.2 35.5 236.7Adjusted Operating Profit 19.8 5.5 25.3Net Finance costs (6.7) (2.2) (8.9)Adjusted PBT 13.1 3.3 16.4Basic EPS 17.2p (0.8p) 16.4pBasic adjusted EPS (continuing operations) 19.7p 0.9p 20.6p * The proforma results include a full year for Sygen, whereas the 15 months to30 June 2006 only included the seven month period post acquisition. Further proforma information by geography and species will be provided with thepreliminary results announcement. Future Announcements Genus will announce its Preliminary Results on 18 September 2007. Commenting on the performance of the company, Richard Wood, Chief Executivesaid: "We have achieved the strong trading progress we forecast in generallyfirm markets. Underlying trading was in line with expectations, as upgraded atthe half year, across all business sectors. However the negative impact ofcurrency movements was larger than expected." For further information please contact: Genus Plc Tel. 01256 345970 Richard Wood, Chief ExecutiveMartin Boden, Finance Director Buchanan Communications Tel. 020 7466 5000 Charles RylandSuzanne BrocksSimon Potter Bridgewell Securities Ltd Tel: 0207 003 3000 Shaun DobsonFred Ward This announcement is available on the Genus website, www.genusplc.com About Genus: Genus is a world leader in applying science to animal breeding. The uniquecombination of quantitative genetics and biotechnology used by Genus isapplicable across all livestock species and enables farmers and producers toproduce higher quality and healthier non-GMO food products. Genus' currentproducts and services enable producers and farmers to enhance milk and meatquality and improve efficiency through the application of genetic selection. Genus' business units, ABS (dairy and beef cattle) and PIC (pigs) sell breedinganimals and semen to customers who produce offspring which yield greaterproduction efficiency, milk and meat quality for the global dairy and meatsupply chain. Genus' competitive differentiation lies in its ownership andcontrol of its proprietary lines of breeding animals, its biotechnology used toimprove them and its global production and distribution network. Genus' technology and products add value throughout the global supply chain offarmers, breeders, processors, distributors, retailers and consumers.Headquartered in Basingstoke, England, Genus companies operate in 30 countrieson five continents, with laboratories located in Madison, USA. This information is provided by RNS The company news service from the London Stock Exchange