11 August 1995

Poor year for Genus

RISING costs and falling demand for semen made it a challenging year for Genus, which was hived off from the old Milk Marketing Board after deregulation.

"Overall profitability depends largely on the breeding division, which in turn is sensitive to the cyclical nature of demand for its services," says chief executive John Craven. "After two extremely buoyant years, 1994/95 saw a marked downturn in the cycle."

And more competition from imports, the continuing trend to DIY AI, uncertainty about the end of the MMB, the rising cost of quota and the threat of super-levy all hit semen sales. So pre-tax profit in the five months to Mar 31 was limited to £244,000 on sales of £19.3m.

Combining these results with those already published by the Resid-uary MMB shows an indicative profit of £1.2m on sales of £49.1m for the full 12 months.

The board is not recommending a dividend to shareholders.

lGenus is setting up a "periodic share trading facility" to be administered by Lloyds Bank Registrars starting next month. It has decided not to use the new Alternative Investment Market, as this would mean sacrificing the provision limiting any one shareholding to a maximum 5%. &#42