By FWi staff
FARMER-OWNED agribusiness Genus has announced pre-tax profits down 31% to 2 million, despite a 57% increase in turnover in the half-year to 30 September.
This is blamed on costs incurred during flotation of the company last July, a reduction in property sales and the post-acquisition re-organisation, which had no offsetting income.
The breeding division performed ahead of expectations, more than doubling turnover to 34m. This was augmented by 15m from the consultancy sector and 32m from distribution.
“Following the successful integration of ABS into the company, our international breeding business is performing ahead of expectations,” says chief executive Richard Wood.
“But we have encountered problems in the distribution division, which suffered reduced turnover, following a change in business processes in the second half of the year.
“But we have already started to rectify the problem and we expect performance to gradually improve.”
Shareholders will not receive an interim dividend due to the high cost of distribution to the relatively large number of shareholders.
The board expects to recommend a final dividend on the basis of the anticipated full years result.