Sexcel sells – that's the central conclusion from half-year results for Genus (GNS). Its new “proprietary, innovative sexed genetics product” launched during the period, and sales beat expectations. The IntelliGen technology that backs the product has been brought into production in the US, Europe and India to support Sexcel’s development. The successful launch contributed to the 47 per cent increase in operating profit to £11.6m and 8 per cent volume growth in the ABS dairy and beef division.
Over at the PIC pig division, operating profit was up 7 per cent to £47.7m thanks to a combination of improving volumes and income from royalties. The strategy to increase prices and focus on royalties in Europe, along with the recent acquisition of Hermitage Genetics, helped profits in the region increase by more than half, with volumes up by a fifth.
Analysts at Liberum expect pre-tax profits of £36.6m in the year to June 2018, giving EPS of 75.6p (from £40.7m and 69.4p in FY2017).
GENUS (GNS) | ||||
ORD PRICE: | 2,252p | MARKET VALUE: | £1.38bn | |
TOUCH: | 2,252-2.258p | 12-MONTH HIGH: | 2,597p | LOW: 1,652p |
DIVIDEND YIELD: | 1.1% | PE RATIO: | 21 | |
NET ASSET VALUE: | 681p* | NET DEBT: | 27% |
Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
2016 | 222 | 11.4 | 13.3 | 7.4 |
2017 | 239 | 14.3 | 69.0 | 8.1 |
% change | +7 | +25 | +419 | +9 |
Ex-div: | 8 Mar | |||
Payment: | 4 Apr | |||
*Includes £183m of intangible assets, or 298p a share |