New Milton, UK, 16 July 2009 – Genetix Group plc (AIM:GTX) (“Genetix” or the “Group”), the cell imaging and analysis group, today provides an update on trading ahead of its interim results for the six months ended 30 June 2009, which will be announced on 6 August 2009.
Revenue for the six months ended 30 June 2009 is expected to increase by 14% to approximately £14.1 million (June 2008: £12.4 million), driven by increases in all our key product areas - clinical instruments, cell biology, genomics-based instruments and the recurring revenue streams of consumables and services. Revenue was positively impacted by the strengthening US dollar against Sterling estimated to be approximately £1.7 million.
Overall, exchange rate movements did not affect underlying profitability due to the increase in the US cost base when converted into Sterling and realised exchange losses on forward currency contracts maturing in the period.
Underlying operating profit is expected to increase 24% to around £1.2m (June 2008: £1.0 million), with underlying pre tax profits constant at £1.3m (June 2008: £1.3 million), reflecting lower interest income arising from lower interest rates available in the market. The Group’s effective tax rate on underlying profits is expected to be consistent with 2008 at approximately 11%, resulting in underlying earnings per share of 1.60 pence, an increase of 6% over 2008. Results from the recently-acquired SlidePath (digital pathology business), while not material to the Group’s results, have been in line with our expectations.
In common with many companies, the global economic uncertainties are having an impact in the short term on some of our customers’ spending plans. We are successfully addressing this challenge by continuing to focus on our products’ compelling value propositions as well as through careful cost discipline.
The Group will record an £846,000 gain on marking to market its forward currency contracts. As at 30 June 2009, the unrealised loss arising from these fair value changes was £30,000. (31 December 2008: £876,000 loss). The Group reports and measures its underlying profitability and earnings per share excluding the unrealised fair value adjustments on forward currency contracts and adjustments to acquired intangibles and goodwill.
Charles de Rohan, Chief Executive of Genetix, commented: “We expect to deliver another strong set of results despite the challenges of the current economic environment. We are excited about the opportunities that our recent acquisition, SlidePath, brings us in the digital pathology market and view this as an important area of future growth for the Group. Genetix is profitable, financially strong and well placed to meet the opportunities and challenges for the remainder of 2009. The Board remains confident about the Group’s prospects.”
Genetix will announce its interim results for the six months ended 30 June 2009 on 6 August 2009. An analyst meeting will be held in London at the offices of Piper Jaffray at One South Place, London EC2M 2RB at 10.30am.
