Genus plc Reports Preliminary 2020 Year End Financial and Business Results

Sept. 8, 2020 06:00 UTC
  • World leader in animal genetics reports strong performance, resilient operations during the COVID-19 pandemic
  • Strong revenue growth of 13%, with adjusted profit before tax up 22%
  • Webcast scheduled today, September 8, 2020, at 7:01 AM BST - 2:01 AM EDT

BASINGSTOKE, United Kingdom & MADISON, Wis.--(BUSINESS WIRE)-- Genus plc (LSE: GNS), a world leading animal genetics company producing superior breeding livestock through genetic improvement, today reported preliminary financial results for the full year ended June 30, 2020, as well as provided a business update on recent corporate developments in its worldwide porcine and bovine genetics businesses. The Company will discuss its corporate, operational and financial highlights on a pre-recorded webcast, scheduled today, Tuesday, September 8, 2020 at 7:01 AM BST, 2:01 AM EDT. A recording of the webcast will be available here and on the Company’s website.

“Genus performed strongly and made substantial strategic progress throughout the 2020 fiscal year. In the second half the Group showed its resilience following the outbreak of the COVID-19 pandemic,” said Stephen Wilson, Genus plc Chief Executive. “Our customers experienced challenges due to the unprecedented market price and demand volatility as protein supply chains were disrupted in some markets. I am proud of the way our people responded and supported our customers through this period. We had to adapt in many ways to ensure that we could continue to supply our customers in the face of extraordinary circumstances, but through the ingenuity and determination of our people we have been able to keep operating uninterrupted during the crisis. This has been achieved while continually focusing on protecting our employees, customers and other stakeholders.”

“Our financial performance in the year was strong, with revenue increasing by 13%, and adjusted profit before tax growing 16% (22% in constant currency), to a record £71.0m.”

“Genus PIC, the Company’s porcine genetics business, was the major contributor to that growth, as it benefited as expected from strong demand in China as large producers expanded to fill the supply shortfall caused by African Swine Fever in 2019. Europe and Latin America also contributed strong growth, resulting in PIC’s adjusted operating profit including joint ventures being 25% higher. Strategically important porcine royalty revenue was up 11% in constant currency, with growth in all regions, contributing to total porcine revenue increasing by 17% in constant currency.”

“Genus ABS, the Company’s bovine genetics business, achieved volume growth of 8% and adjusted operating profit growth of 12% in constant currency. This was driven mainly by the growth in sexed product, with sexed volumes up 47%, and continued growth in the use of beef genetics in dairy herds, with global beef volumes up 17%. ABS benefited from our investment in sales capability and the shift to long-term partnership accounts, particularly in the US. Performance was also particularly strong in Brazil, Russia, India and China.”

“Research and development is the lifeblood of our business and we increased net investment by 19% (17% in constant currency) as planned, largely driven by increased investment in porcine product development as we look to further strengthen our proprietary genetics and build capacity for future growth. We will continue to increase investment in gene editing and our IntelliGen® Technologies production capacity, as well as further developing our R&D pipeline.”

Outlook

“The full impact of COVID-19 on the world economy and consumer incomes remains unclear, although economic forecasts suggest that many sectors will be heavily impacted for some time, creating economic recession in many countries. The pandemic has also caused operational challenges for elements of the animal protein value chain, most notably meat processors in the US which are likely to continue for some time, leading to challenging conditions for some of our customers through at least the remainder of 2020. Greater currency headwinds are also anticipated in FY21. However, Genus’s business model and strategy has again demonstrated its robustness and we anticipate further growth in constant currency in the business in the coming year and to perform in line with our expectations,” concluded Wilson.

Webcast Results Presentation Today

A pre-recorded briefing by management to discuss the preliminary results for the year ended June 30, 2020 will be held via a video webcast facility and will be accessible at the following link from 7:01 AM BST, 2:01 AM EDT today: https://webcasting.buchanan.uk.com/broadcast/5f28011c65023062edd7e24a.

An archived recording of the webcast will also be available on the Investors section of the Company’s website.

Corporate Highlights:

       
   

Adjusted results1

 

Statutory results

   

Actual currency

   

Constant
currency
change
2

 

Actual currency

Year ended 30 June

 

2020

 

2019

 

Change

     

2020

 

2019

 

Change

   

£m

 

£m

 

%

   

%

 

£m

 

£m

 

%

Revenue

 

551.4

 

488.5

 

13

   

13

 

551.4

 

488.5

 

13

Operating profit exc. JVs

 

65.3

 

57.7

 

13

   

16

 

47.6

 

8.7

 

447

Operating profit inc. JVs exc. gene editing

 

81.2

 

72.2

 

12

   

17

 

n/a

 

n/a

 

n/a

Profit before tax

 

71.0

 

61.0

 

16

   

22

 

51.5

 

9.9

 

420

Free cash flow

 

35.2

 

10.0

 

252

   

n/m

3

         

Basic earnings per share (pence)

 

85.4

 

73.2

 

17

   

23

 

62.4

 

12.4

 

403

Dividend per share (pence)

                   

29.1

 

27.7

 

5

Strong revenue growth of 13% in actual and constant currency2

  • Excellent performance in PIC, our porcine genetics business, with revenue up 17%2; royalty revenues grew 11%2 with growth in all regions
  • High breeding stock sales and royalties in China drove PIC volume growth of 13%, 6% excluding China
  • Strong revenue growth in ABS, our bovine genetics business, of 9%2, driven by Sexcel®, our sexed product
  • ABS volume growth of 8%, with sexed volumes up 47% and beef up 17%

Very strong adjusted profit before tax (‘PBT’)1, up 22% in constant currency; statutory PBT at £51.5m

  • Adjusted operating profit including joint ventures and excluding gene editing1 up 17%2
  • Double digit adjusted operating profit growth1 in PIC (up 25%2) and ABS (up 12%2); R&D investment increased 17%2
  • Statutory PBT includes a £15.8m uplift in net IAS 41 biological asset valuation and £19.2m of exceptional costs, compared with a reduced asset valuation and higher exceptional costs in the prior year
  • Foreign currency translation impact on adjusted PBT of £3.4m primarily reflecting weakness in LATAM currencies

Strong cash generation, earnings and dividends, and new revolving credit facility (‘RCF’)

  • Strong free cash flow1 of £35.2m, net debt1 of £102.6m (inc. £24.7m IFRS 16 adoption), net debt to EBITDA1 of 0.9x
  • New enlarged credit facility completed 24 August 2020; £150m multi-currency RCF, a USD125m RCF and a USD20m bond and guarantee facility for a three-year term with two one-year extension options
  • Very strong financial position with high operating cash flows and significant borrowings headroom enables flexibility to invest further in growth
  • Adjusted earnings per share1 up 23% in constant currency; dividend up 5% with 2.9x adjusted earnings cover1

Good strategic progress despite COVID-19

  • During the COVID-19 pandemic Genus has been committed to the health and safety of its people, customers and communities throughout its global markets
  • More than doubled size of PIC China’s supply chain to capture opportunity of re-stocking post African Swine Fever (‘ASF’)
  • PIC’s collaboration with Beijing Capital Agribusiness Co. Ltd (‘BCA’) is progressing well with receipt of the first milestone payment of USD7m (net income £3.2m) received in January 2020
  • Expanded sexed product capacity including new sites, and driving performance through continued technology improvements
  • Completed a two-year trial of NuEra Genetics®, our beef-on-dairy product, demonstrating a material value proposition for the beef industry
  • Continued progress as planned with the Porcine Reproductive Respiratory Syndrome virus (‘PRRSv’) development programme, first Food and Drug Administration (‘FDA’) filing completed
  • Market leading genetic portfolio across the Group enabling broad based market share gains

Financial Review

In the year ended 30 June 2020, Genus achieved a strong financial performance whilst operating in unique circumstances during the second half of the financial year caused by the COVID-19 pandemic. The resilience of our operations was reflected in revenue growth of 13% in both constant and actual currency. Adjusted operating profit growth including joint ventures was 22% in constant currency (17% in actual currency). Notably, this was after a significant planned increase in R&D investment of 17% in constant currency (19% in actual currency to £65.2m) primarily to fund expansion in our porcine nucleus herds. Excluding gene editing costs, adjusted operating profit including joint ventures increased by 17% in constant currency and adjusted profit before tax was up 22% (16% in actual currency).

On a statutory basis, profit before tax was £51.5m (2019: £9.9m). The difference between statutory and adjusted profit before tax principally reflected the uplift in the non-cash fair value net IAS 41 biological asset movement versus a decrease last year. Basic earnings per share on a statutory basis were 62.4 pence (2019: 12.4 pence).

The effect of exchange rate movements on the translation of our overseas profits was to reduce the Group’s adjusted profit before tax for the year by £3.4m compared with 2019, primarily from weakness in Latin American currencies. All growth rates quoted are in constant currency unless otherwise stated. Constant currency percentage movements are calculated by restating the results for the year ended 30 June 2020 at the average exchange rates applied to adjusted operating profit for the year ended 30 June 2019.

Earnings Per Share

Adjusted basic earnings per share increased by 17% (23% in constant currency) to 85.4 pence (2019: 73.2 pence) as a result of the strong trading performance and lower tax rate. Basic earnings per share on a statutory basis were 62.4 pence (2019: 12.4 pence), reflecting the strong trading performance and an uplift in the non-cash fair value net IAS 41 biological asset movement.

About Genus

Genus advances animal breeding and genetic improvement by applying biotechnology and sells added value products for livestock farming and food producers. Its technology is applicable across livestock species and is currently commercialised by Genus in the dairy, beef and pork food production sectors.

Genus's worldwide sales are made in over 80 countries under the trademarks 'ABS' (dairy and beef cattle) and 'PIC' (pigs) and comprise semen, embryos and breeding animals with superior genetics to those animals currently in farms. Genus's customers' animals produce offspring with greater production efficiency and quality, and our customers use them to supply the global dairy and meat supply chains.

Genus’s competitive edge comes from the ownership and control of proprietary lines of breeding animals, the biotechnology used to improve them and its global supply chain, technical service and sales and distribution network.

Headquartered in Basingstoke, United Kingdom, Genus companies operate in over 25 countries on six continents, with research laboratories located in Madison, Wisconsin, USA.

Forward-looking Statements

This Announcement may contain and the Company may make verbal statements containing "forward-looking statements" with respect to certain of the Company's plans and its current goals and expectations relating to its future financial condition, performance, strategic initiatives, objectives and results. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Announcement. Forward-looking statements sometimes use words such as "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "seek", "may", "could", "outlook", "will" or other words of similar meaning. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond the control of the Company, including amongst other things, diverse factors such as domestic and global economic business conditions, market-related risks such as fluctuations in commodity prices, interest rates and exchange rates, the policies and actions of governmental and regulatory authorities, the effect of competition, inflation, deflation, the timing effect and other uncertainties of future acquisitions or combinations within relevant industries, the rate of on-going porcine re-stocking in China after African Swine Fever, the continued development and improvement of our IntelliGen® technology, the development and registration of our innovative new products, such as our gene edited porcine reproductive and respiratory syndrome virus resistant pigs, the continued growth in emerging markets, the effect of tax and other legislation and other regulations in the jurisdictions in which the Company and its respective affiliates operate, the effect of volatility in the equity, capital and credit markets on the Company's profitability and ability to access capital and credit, a decline in the Company's credit ratings; the effect of operational risks; and the loss of key personnel. As a result, the actual future financial condition, performance and results of the Company may differ materially from the plans, goals and expectations set forth in any forward-looking statements. Except as required by applicable law or regulation, the Company expressly disclaims any obligation or undertaking to publish any updates or revisions to any forward-looking statements contained in this Announcement to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

No statement in this Announcement is intended to be a profit forecast, and no statement in this Announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company. Information contained in this Announcement should not be relied upon as a guide to the Company's future performance.

Group Income Statement

         

Genus plc

For the year ended 30 June 2020

           
             
       

2020

£m

 

2019

£m

REVENUE

     

551.4

 

488.5

             
             

Adjusted Operating Profit

     

65.3

 

57.7

             

Adjusting items:

           

- Net IAS 41 valuation movement on biological assets

     

15.8

 

(14.7)

- Amortisation of acquired intangible assets

     

(8.5)

 

(9.5)

- Share-based payment expense

     

(5.8)

 

(3.0)

       

1.5

 

(27.2)

- Exceptional items:

           

- Litigation

     

(16.4)

 

(5.0)

- Acquisition and integration

     

(2.1)

 

(0.7)

- Other

     

(0.7)

 

(0.9)

- Pension related

     

-

 

(15.2)

             

Total exceptional items

     

(19.2)

 

(21.8)

             

Total adjusting items

     

(17.7)

 

(49.0)

             

OPERATING PROFIT

 

47.6

 

8.7

Share of post-tax profit of joint ventures and associates retained

     

8.9

 

5.1

Finance costs

     

(5.3)

 

(4.7)

Finance income

     

0.3

 

0.8

PROFIT BEFORE TAX

 

51.5

 

9.9

Taxation

     

(10.6)

 

(3.2)

PROFIT FOR THE YEAR

 

40.9

 

6.7

         

ATTRIBUTABLE TO:

           

Owners of the Company

     

40.5

 

7.8

Non-controlling interest

 

0.4

 

(1.1)

   

40.9

 

6.7

EARNINGS PER SHARE

       

Basic earnings per share

     

62.4p

 

12.4p

Diluted earnings per share

     

61.9p

 

11.9p

Alternative Performance Measures

           

Adjusted operating profit

 

65.3

 

57.7

Adjusted operating profit attributable to non-controlling interest

     

(0.6)

 

(0.4)

Pre-tax share of profits from joint ventures and associates excluding net IAS 41

           

valuation movement

     

11.3

 

7.6

Gene editing costs

     

5.2

 

7.3

Adjusted operating profit including joint ventures and associates, excluding gene editing costs

 

81.2

 

72.2

Gene editing costs

 

(5.2)

 

(7.3)

Adjusted operating profit including joint ventures and associates

 

76.0

 

64.9

Net finance costs

     

(5.0)

 

(3.9)

ADJUSTED PROFIT BEFORE TAX

 

71.0

 

61.0

         

ADJUSTED EARNINGS PER SHARE

       

Basic adjusted earnings per share

 

85.4p

 

73.2p

Diluted adjusted earnings per share

 

84.7p

 

70.7p

Adjusted results are the Alternative Performance Measures (‘APMs’) used by the Board to monitor underlying performance at a Group and operating segment level, which are applied consistently throughout. These APMs should be considered in addition to statutory measures, and not as a substitute for or superior to them.

Group Statement of Comprehensive Income

         

Genus plc

   

For the year ended 30 June 2020

               
   

2020

£m

 

2020

£m

 

2019

£m

 

2019

£m

PROFIT FOR THE YEAR

     

40.9

     

6.7

                 

Items that may be reclassified subsequently to profit or loss

               

Foreign exchange translation differences

 

(4.9)

     

19.7

   

Fair value movement on net investment hedges

 

(0.1)

     

(1.6)

   

Fair value movement on cash flow hedges

 

(0.4)

     

(2.2)

   

Tax relating to components of other comprehensive income

 

(1.4)

     

(2.5)

   
       

(6.8)

     

13.4

Items that may not be reclassified subsequently to profit or loss

               

Actuarial loss on retirement benefit obligations

 

(16.6)

     

(5.4)

   

Movement on pension asset recognition restriction

 

10.4

     

(10.1)

   

Release of additional pension liability

 

4.7

     

34.5

   

Tax relating to components of other comprehensive

               

expense/(income)

 

0.8

     

(3.2)

   
       

(0.7)

     

15.8

                 

OTHER COMPREHENSIVE (EXPENSE)/INCOME FOR THE YEAR

     

(7.5)

     

29.2

                 

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

     

33.4

     

35.9

                 

ATTRIBUTABLE TO:

               

Owners of the Company

     

33.1

     

37.1

Non-controlling interest

     

0.3

     

(1.2)

       

33.4

     

35.9

                     

Group Statement of Changes in Equity

               

Genus plc

 

For the year ended 30 June 2020

                   
   

Called up share capital

£m

Share premium account

£m

Own shares

£m

Trans-lation reserve

£m

Hedging reserve

£m

Retained earnings

£m

Total

£m

Non- controlling interest

£m

Total equity

£m

                     

BALANCE AT 30 JUNE 2018

(as previously reported)

 

6.2

112.8

(0.1)

20.5

2.0

275.2

416.6

2.5

419.1

                     

Prior period restatement

 

-

-

-

-

-

(15.2)

(15.2)

-

(15.2)

                     

BALANCE AT 30 JUNE 2018 (restated)

 

6.2

112.8

(0.1)

20.5

2.0

260.0

401.4

2.5

403.9

                     

Foreign exchange translation

differences, net of tax

 

-

-

-

16.6

-

-

16.6

(0.1)

16.5

Fair value movement on net

investment hedges, net of tax

 

-

-

-

(1.3)

-

-

(1.3)

-

(1.3)

Fair value movement on cash flow hedges, net of tax

 

-

-

-

-

(1.8)

-

(1.8)

-

(1.8)

Actuarial gain on retirement

benefit obligations, net of tax

 

-

-

-

-

-

(4.6)

(4.6)

-

(4.6)

Movement on pension asset recognition restriction, net of tax

 

-

-

-

-

-

(8.3)

(8.3)

-

(8.3)

Recognition of additional pension liability, net of tax

 

-

-

-

-

-

28.7

28.7

-

28.7

Other comprehensive (expense)/income for the year

 

-

-

-

15.3

(1.8)

15.8

29.3

(0.1)

29.2

Profit for the year

 

-

-

-

-

-

7.8

7.8

(1.1)

6.7

Total comprehensive income for the year

 

-

-

-

15.3

(1.8)

23.6

37.1

(1.2)

35.9

Recognition of share-based payments, net of tax

 

-

-

-

-

-

0.2

0.2

-

0.2

Adjustment arising from change in non-controlling interest and written put option

 

-

-

-

-

-

-

-

(2.6)

(2.6)

Dividends

 

-

-

-

-

-

(16.8)

(16.8)

-

(16.8)

Issue of ordinary shares

 

0.3

66.2

-

-

-

-

66.5

-

66.5

BALANCE AT 30 JUNE 2019 (restated)

 

6.5

179.0

(0.1)

35.8

0.2

267.0

488.4

(1.3)

487.1

Foreign exchange translation

differences, net of tax

 

-

-

-

(6.4)

-

-

(6.4)

(0.1)

(6.5)

Fair value movement on net

investment hedges, net of tax

 

-

-

-

0.1

-

-

0.1

-

0.1

Fair value movement on cash flow hedges, net of tax

 

-

-

-

-

(0.4)

-

(0.4)

-

(0.4)

Actuarial loss on retirement

benefit obligations, net of tax

 

-

-

-

-

-

(10.4)

(10.4)

-

(10.4)

Movement on pension asset recognition restriction, net of tax

 

-

-

-

-

-

6.8

6.8

-

6.8

Release of additional pension liability, net of tax

 

-

-

-

-

-

2.9

2.9

-

2.9

Other comprehensive expense for
the year

 

-

-

-

(6.3)

(0.4)

(0.7)

(7.4)

(0.1)

(7.5)

Profit for the year

 

-

-

-

-

-

40.5

40.5

0.4

40.9

Total comprehensive
income/(expense) for the year

 

-

-

-

(6.3)

(0.4)

39.8

33.1

0.3

33.4

Recognition of share-based payments, net of tax

 

-

-

-

-

-

5.5

5.5

-

5.5

Dividends

 

-

-

-

-

-

(18.3)

(18.3)

-

(18.3)

Issue of ordinary shares

 

-

0.1

-

-

-

-

0.1

-

0.1

                     

BALANCE AT 30 JUNE 2020

 

6.5

179.1

(0.1)

29.5

(0.2)

294.0

508.8

(1.0)

507.8

Group Balance Sheet

           

Genus plc

As at 30 June 2020

             
     

2020

£m

 

*(restated)

2019
£m

 

*(restated)

2018
£m

               

ASSETS

             

Goodwill

   

105.6

 

106.3

 

102.0

Other intangible assets

   

76.2

 

80.1

 

78.7

Biological assets

   

310.1

 

287.1

 

285.3

Property, plant and equipment

   

117.9

 

86.0

 

76.9

Interests in joint ventures and associates

   

22.7

 

23.6

 

19.9

Other investments

   

6.9

 

7.4

 

5.9

Derivative financial assets

   

-

 

0.4

 

0.3

Other receivables

   

1.8

 

-

 

-

Deferred tax assets

   

3.7

 

3.5

 

4.3

TOTAL NON-CURRENT ASSETS

   

644.9

 

594.4

 

573.3

               

Inventories

   

37.4

 

36.0

 

34.2

Biological assets

   

39.8

 

40.1

 

37.0

Trade and other receivables

   

100.8

 

98.0

 

91.0

Cash and cash equivalents

   

41.3

 

30.5

 

29.1

Income tax receivable

   

3.1

 

3.3

 

1.4

Derivative financial assets

   

1.2

 

1.1

 

2.5

Asset held for sale

   

0.2

 

0.2

 

0.2

TOTAL CURRENT ASSETS

   

223.8

 

209.2

 

195.4

               

TOTAL ASSETS

   

868.7

 

803.6

 

768.7

               

LIABILITIES

             

Trade and other payables

   

(95.0)

 

(87.7)

 

(83.7)

Interest-bearing loans and borrowings

   

(9.2)

 

(2.1)

 

(13.4)

Provisions

   

(4.0)

 

(3.1)

 

(2.8)

Deferred consideration

   

(7.5)

 

(2.0)

 

(19.3)

Obligations under leases

   

(10.0)

 

(2.2)

 

(1.4)

Tax liabilities

   

(4.0)

 

(6.1)

 

(4.4)

Derivative financial liabilities

   

(0.5)

 

(1.0)

 

(0.3)

TOTAL CURRENT LIABILITIES

   

(130.2)

 

(104.2)

 

(125.3)

Trade and other payables

   

(3.3)

 

-

 

-

Interest-bearing loans and borrowings

   

(103.6)

 

(101.9)

 

(120.7)

Retirement benefit obligations

   

(18.1)

 

(24.2)

 

(33.9)

Provisions

   

(11.8)

 

(5.7)

 

(4.5)

Deferred consideration

   

(1.2)

 

(4.2)

 

(4.2)

Income tax liability

   

-

 

-

 

(0.9)

Deferred tax liabilities

   

(65.5)

 

(66.7)

 

(69.5)

Derivative financial liabilities

   

(6.1)

 

(5.7)

 

(3.7)

Obligations under leases

   

(21.1)

 

(3.9)

 

(2.1)

TOTAL NON-CURRENT LIABILITIES

   

(230.7)

 

(212.3)

 

(239.5)

               

TOTAL LIABILITIES

   

(360.9)

 

(316.5)

 

(364.8)

NET ASSETS

   

507.8

 

487.1

 

403.9

               
       

2020

£m

*(restated)

2019
£m

*(restated)

2018

£m

             

EQUITY

           

Called up share capital

     

6.5

6.5

6.2

Share premium account

     

179.1

179.0

112.8

Own shares

     

(0.1)

(0.1)

(0.1)

Translation reserve

     

29.5

35.8

20.5

Hedging reserve

     

(0.2)

0.2

2.0

Retained earnings

     

294.0

267.0

260.0

Equity attributable to owners of the Company

     

508.8

488.4

401.4

             

Non-controlling interest

     

4.6

4.2

5.7

Put option over non-controlling interest

     

(5.6)

(5.5)

(3.2)

Total non-controlling interest

     

(1.0)

(1.3)

2.5

             

TOTAL EQUITY

     

507.8

487.1

403.9

             

* Restatement in the 2019 and 2018 balance sheet

During the period, it was discovered that an input used in the valuation of biological assets in preceding periods was not in line with operational data.

Accordingly, the prior period balance sheets at 30 June 2019 and 30 June 2018 have been restated in accordance with IAS 8, and, in accordance with IAS 1 (revised). A balance sheet at 30 June 2018 is also presented together with related notes. The restatements involved are a reduction in Biological assets at 30 June 2019 and 30 June 2018 of £20.5m and a reduction in related deferred tax liabilities at 30 June 2019 and 30 June 2018 of £5.3m.

Impact on the Group’s balance sheet for year ended 30 June 2019

 

(as reported)

2019

£m

Impact of restatement

£m

(restated)

2019

£m

Non-current assets

     

Biological assets

307.6

(20.5)

287.1

Current liabilities

     

Deferred tax liabilities

(72.0)

5.3

(66.7)

       

Net assets

502.3

(15.2)

487.1

For the year ended 30 June 2019, there has been no material effect on the Group income statement, Group Statement of Comprehensive Income and no impact on the Group statement of cash flows. Therefore, there has been no restatement of the Group income statement and there is no adjustment to earnings per share.

Group Statement of Cash Flows

         

Genus plc

For the year ended 30 June 2020

           
       

2020

£m

 

2019

£m

             

NET CASH FLOW FROM OPERATING ACTIVITIES

     

65.8

 

33.4

             

CASH FLOWS FROM INVESTING ACTIVITIES

           

Dividends received from joint ventures and associates

     

2.5

 

2.7

Joint venture loan repayment

     

1.2

 

0.7

Disposal of joint venture

     

3.8

 

-

Acquisition of joint venture

     

(2.2)

 

-

Acquisition of trade and assets

     

-

 

(2.0)

Disposal of subsidiary

     

-

 

0.4

Payment of deferred consideration

     

(1.7)

 

(21.1)

Purchase of property, plant and equipment

     

(24.6)

 

(17.1)

Purchase of intangible assets

     

(10.8)

 

(11.2)

Proceeds from sale of property, plant and equipment

     

1.1

 

1.5

NET CASH OUTFLOW FROM INVESTING ACTIVITIES

     

(30.7)

 

(46.1)

             

CASH FLOWS FROM FINANCING ACTIVITIES

           

Drawdown of borrowings

     

80.0

 

104.8

Repayment of borrowings

     

(73.8)

 

(138.9)

Payment of lease liabilities

     

(11.1)

 

(2.0)

Equity dividends paid

     

(18.3)

 

(16.8)

Issue of ordinary shares

     

0.1

 

66.5

NET CASH (OUTFLOW)/INFLOW FROM FINANCING ACTIVITIES

     

(23.1)

 

13.6

             

NET INCREASE IN CASH AND CASH EQUIVALENTS

     

12.0

 

0.9

             

Cash and cash equivalents at start of the year

     

30.5

 

29.1

Net increase in cash and cash equivalents

     

12.0

 

0.9

Effect of exchange rate fluctuations on cash and cash

     

(1.2)

 

0.5

equivalents

           

TOTAL CASH AND CASH EQUIVALENTS AT 30 JUNE

     

41.3

 

30.5


1 Adjusted results are the Alternative Performance Measures (‘APMs’) used by the Board to monitor underlying performance at a Group and operating segment level, which are applied consistently throughout. These APMs should be considered in addition to, and not as a substitute for or as superior to statutory measures.

2 All growth rates quoted are in constant currency unless otherwise stated. Constant currency percentage movements are calculated by restating the results for the year ended 30 June 2020 at the average exchange rates applied to adjusted operating profit for the year ended 30 June 2019.

3 n/m = not meaningful

View source version on businesswire.com: https://www.businesswire.com/news/home/20200907005419/en/

Contacts

Genus plc
Stephen Wilson, Chief Executive Officer
Alison Henriksen, Chief Financial Officer
Tel: +44 1256 345970

Investor Relations and Media Contacts:
United Kingdom
Buchanan
Charles Ryland / Chris Lane / Charlotte Slater
Tel: +44 207 466 5000

United States
LaVoieHealthScience

Donna LaVoie / Sharon Choe / Paul Sagan
Tel: +1 617-374-8800
psagan@lavoiehealthscience.com

Source: Genus plc

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