Genus FY profit nudges up but revenue slips on lower bovine volumes

FTSE 250 animal genetics company Genus posted an increase in pre-tax profit for the year to the end of June despite a small drop in revenue.

Adjusted pre-tax profit was up 7% to £49.7m, driven by strong performances in Genus PIC and Genus Asia, particularly China.

Statutory pre-tax profit was 5% higher at £60.9m, which included a pension-related exceptional credit of £44.2m and a reduction in the value of biological assets.

However, revenue at the group was down 3% to £388.3m on the back of lower bovine volumes in tough dairy markets and lower porcine by-product and up-front sales.

Chief executive Karim Bitar said: “Genus performed well overall in 2016 with another year of double digit constant currency profit growth and substantial strategic progress in our R&D endeavours in addition to growth in key markets such as China.

"To pursue our long-term growth objectives, we plan to increase R&D investment in FY17 and therefore expect broadly stable constant currency results, however exchange rates should provide a benefit to the reported numbers. Overall we expect to perform in line with market expectations. We are confident in the future of the business and are proposing a 10% increase in the dividend."

The company proposed a total dividend for the year of 21.4p per share, up from 19.5p in 2015.