Numis places Genus 'under review' after FY results

Genus posted a 7% increase in adjusted pre-tax profit to £49.7m, driven by strong performances in Genus PIC and Genus Asia, particularly China.

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. It missed the Factset consensus forecast for revenue of £397.4m.

Chief executive Karim Bitar said the group expects to increase research and development in 2017. Overall Bitar sees the company performing in line with market expectations as reported numbers benefit from favourable exchange rates.

Numis has put the stock ‘under review’ from a previous rating of ‘hold’.

“In summary, investment in R&D continues, which is expected to limit near term underlying earnings growth but deliver strategic value in the medium to long term,” the broker said.

Shares rose 0.22% to 1,955.28p at 1030 BST.