Genus sees 'good momentum' carry over into new trading year

Animal genetics company Genus said on Wednesday that "good momentum" seen at the end of the previous trading year had carried over into the current one.

Genus stated that in the four months ended 31 October, its porcine and bovine businesses had seen further strong growth in volumes, revenues and adjusted operating profits, with royalty revenues in its porcine division also continuing to grow across Latin America, Europe and Asia.

The FTSE 250-listed firm said trading was ahead of expectations, with adjusted pre-tax tax profits showing strong growth year-on-year, while net debt at the end of the period was also lower than expected.

Research and development costs were lower due to some collaboration activity with external research institutions being delayed due to the Covid-19 pandemic and associated lockdowns.

Looking forward, Genus expects there will continue to be "some challenges" stemming from the pandemic, with currency headwinds anticipated.

However, although Genus said it was difficult to predict, based on the first four months' trading momentum, the group currently anticipates that it will continue to make "strategic and financial progress" and was likely to perform ahead of previous profit growth expectations for the current trading year.

As of 0840 GMT, Genus shares were up 4.08% at 4,080.0p.