AGM Statement

15 Nov 2007 07:01

Genus PLC15 November 2007 For Immediate Release 15 November 2007 Genus plc Annual General Meeting At the Annual General Meeting of Genus plc ("Genus") to be held today at 2.30pm,the Chairman, John Hawkins, will make the following statement: "During the financial year to 30 June 2007, the first full year since wecompleted the Sygen acquisition that so dramatically changed the potential ofthe Company, we have achieved strong business growth and increased cost productivity by successfully integrating the acquired business. In the years tocome, Genus' progress will continue to benefit from the increased opportunitiesarising from that acquisition. In the Annual Report and Financial Statements for last year's trading, weconfirmed the Board's intention to divest the remaining non-core businesses todrive down debt, while ensuring that such divestments would realise goodshareholder value. We also stated that we would continue to seek to increaseliquidity in Genus shares. In these pursuits, in October, we completed the sale of the only remainingshrimp business, SyAqua Mexico and last week, we announced the disposal ofHTSPE, the Development Consulting business. To increase liquidity in Genus shares and to reduce debt, on 6 November, weannounced that we had raised £19.4m from placing 2.7 million shares withinstitutions at £7.20 per share. This placing is expected to be earningsenhancing as it reduces group debt to below £100m, thereby reducing the Group'saverage interest costs by 25 basis points. Also to improve liquidity, in parallel, we concluded a small shareholder buy-back and placing with institutional shareholders, for a total of 1.15 millionshares at a price of up to £7.30 per share. 1,692 small shareholders in Genustook advantage of this low cost dealing mechanism. Trading for the new financial year has started well in the anticipated improvingagricultural climate. For the first quarter, trading has been on plan, despitethe weakening dollar. While we expect some uncertainty to continue in Europe,as the industry adjusts to the challenges of a changing environment, buoyancy inother markets should more than compensate for this. The Board was delighted to announce, on 12 November, the admission of trading inGenus' shares to the Official List of the London Stock Exchange. Genus wasoriginally formed when the Milk Marketing Board was privatised in 1994 and firsttraded as a Public Company on OFEX in 1997, progressing to AIM in 2000. Nowwith a Market Capitalisation of around £420m, Genus is ranked at about 350 ofthe leading FTSE companies. In closing my review, I would like to offer my thanks to my colleagues on theBoard for their support in our achievements, over the last 10 years, butparticularly for this year. With the Company's move to the Official List, Edwin White, the Company's senior non-executive director, has indicated hisintention to leave the Board during the current financial year and the Companyis in the process of recruiting Mr White's successor. I would also like to compliment the management team and the staff at Genus fortheir achievements over this ten year period of considerable change anddevelopment of the company. The Board believes we have created a company with considerable market strength,good R&D, proven skills in managing both organic and acquisition growth andoperating cost advantages from integrating the recent acquisition. This bodes well for the future of Genus in improving market conditions. To conclude, I would like to offer the Board's commitment to Genus' shareholdersthat, as we begin a new chapter in the development of Genus as a ListedCompany, we will continue to build on the success that we have so far achieved." For further information please contact: Genus plc Tel: 01256 347 100Richard Wood, Chief ExecutiveMartin Boden, Finance Director Landsbanki Securities (UK) Limited Tel: 020 7426 9000Financial Advisor & Joint BrokerShaun Dobson Panmure Gordon (UK) Limited Tel: 020 7459 3600Joint BrokerMark Lander Buchanan Communications Tel: 020 7466 5000Charles RylandSuzanne BrocksChristian Goodbody This information is provided by RNS The company news service from the London Stock Exchange