Markets dismal but Genus strong

But Genus remains capable of rising above pricing pressures, particularly in the porcine (pig) division, where adjusted operating profits, including joint ventures, rose 22 per cent at constant currencies to £64.5m. According to chief executive Karim Bitar, it is the group's high proportion of royalty revenue in this division which keeps it hedged against market turbulence. Successful long-term pig breeding contracts saw royalty revenues rise 17 per cent in the year. Growth also came from Asia, where improved trading conditions in Russia and China boosted revenues by 22 per cent.

Challenges in the dairy market drove bovine revenue down 4 per cent, but strategic initiatives to reduce this division's exposure to the vagaries of pricing within the dairy market are well under way. These include the group's sexing technology, which ensures nine out of 10 newborn dairy cows are female. The technology could potentially be commercialised within the next few months following the outcome of legal proceedings. Initial verdicts ruled in Genus' favour.

Research costs are expected to rise as Genus progresses with new bovine products, but broker Peel Hunt anticipates cash profits of £68.8m for the year to June 2017, rising to £75m in 2018.