Genus PLC on Thursday said profit plummeted in the first half of its current financial year, driven by a negative valuation of its assets.
The Basingstoke, England-based biotechnology and genetics company said pretax profit was £3.3 million for the six months that ended December 31, slipping 77% on-year from £14.3 million.
This was the result of a £16.0 million non-cash decrease in net IAS 41 biological assets fair value, compared to a £2.6 million increase in the first half of 2023.
This was in addition to exceptional costs of £6.0 million, Genus added, of which £3.7 million related to restructuring in its cattle division, ABS, under its value acceleration programme. The firm had reported £7.5 million in exceptional costs the year before.
Revenue grew 0.8% to £336.4 million from £333.6 million.
Genus declared an interim dividend of 10.3 pence per share, unchanged from the year before.
‘Genus achieved a strong first half with broad-based growth across PIC and a significant improvement in ABS profitability. We are particularly pleased to have achieved very strong cash generation in the period through significantly enhanced working capital management and disciplined investments in the business,’ said Chief Executive Jorgen Kokke.
‘We also made substantial progress in relation to our strategic priorities. PIC China won a further seven new royalty customers with 20 having now been won over the last eighteen months. Post-period end, the Food & Drug Administration conducted planned site inspections of two PRP facilities. We have responded to the FDA’s feedback and continue to expect FDA approval for PRP in calendar year 2025. Within ABS, Phase 2 of the Value Acceleration Programme is on track and Phase 3 planning has commenced to accelerate growth. As a result, we look forward to the second half with confidence.’
Looking ahead, Genus said its full-year outlook is in line with current market expectations, citing a company-compiled consensus for £67.7 million in full-year adjusted pretax profit. This would be up 13% on-year from £59.8 million.
Adjusted pretax profit at actual currency for the six-month period rose 21% to £35.4 million from £29.2 million.
Shares in Genus were down 4.0% at 1,756.00 pence in London on Thursday morning.
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