Genus announces strong profits, as finance director quits

Animal breeding company Genus has today (26 February) announced strong first half profits, but has also said that a new finance director has been appointed with immediate effect.

In the six months ended 31 December 2008 Genus made an adjusted pre-tax profit of £17.2m, up 24% from £13.9m in 2007. Revenue was up 16% from £120.4m to £140m over the same period, while adjusted earnings per share increased by 15% to 19.0p.

It put the performance down to several factors, including an increase in bovine semen sales – despite falling milk prices, $2.5m annual savings from its US productivity programme, increased porcine royalty income, and strong earnings growth in the Far East and Latin America.

The company’s share price had increased significantly prior to the profit announcement, closing on Wednesday (25 February) at 768.5p. However, shares fell sharply today to below 650p by mid-afternoon.

A spokesperson said the drop in the share price could be due to investors expecting slightly stronger profit performance than was announced and had little to do with the change in finance director. “The share price is back in line with where it was a week to 10 days ago,” she said.

John Worby has been appointed as finance director of Genus with immediate effect. He replaces Martin Boden, who leaves today after a “mutual agreement” to “pursue other opportunities”.

Mr Worby joined the board of the company in September 2004 when he also became chairman of the audit committee. Genus intends to strengthen the non-executive representation on the board by recruiting a replacement audit committee chairman and enhancing the international commercial experience of the board, particularly in emerging markets. A further announcement will be made in due course.