Animal genetics company Genus has reported another year of strong earnings growth, despite challenging market conditions.
Revenue rose to £280.4m in the year to 30 June 2009, from £247.1m in 2008, generating adjusted pre-tax profit of £32m, up 15% from £27.9m a year earlier.
Chief executive Richard Wood said performance had been resilient in the context of recession in world agricultural markets, but was optimistic that things would start to recover later this year and into next.
“The steep downturn in world agricultural markets has been exacerbated by extremely high animal feed prices against a backdrop of global recession. We believe that the recovery in agricultural markets has the potential to be equally steep,” he said.
“We have delivered good results and continue to make progress in implementing our strategy of entering developing markets that offer strong growth opportunities for the future.”
He said Genus was recommending a 10% increase in the dividend to reflect its confidence in the long-term prospects of the business and the medium-term outlook for growth in world agricultural markets.
It believes that the recovery from recession in agriculture will be sharp as livestock markets recover from the economic downturn and feed costs ease. The Board believes this recovery is likely to commence during the second half of the 2009/2010 financial year.