Genus, a leading global animal genetics company, announces its interim results for the six months ended 31 December 2022.
GOOD FINANCIAL AND STRATEGIC PROGRESS ACHIEVED
WEBCAST AVAILABLE AT 7:01AM GMT, 2.01 EST
LONDON--(BUSINESS WIRE)-- Genus (LSE:GNS), a leading global animal genetics company, today announces its interim results for the six months ended 31 December 2022. The full report has been made available on the investors section of the Genus plc website. The Company will discuss its corporate, operational and financial highlights in a pre-recorded webcast at 7:01 AM GMT, 2.01 EST.
Commenting on the performance and outlook, Stephen Wilson (Chief Executive) said:
“The Group achieved a good performance during the first half of the year, despite challenging market conditions for producers in several markets. PIC delivered a new record half year performance, with strong momentum in North America in particular, and China’s performance improved as the porcine market began a gradual recovery from the cyclical downturn, as we had expected.
“The China porcine market has been on a path to recovery since June 2022, but continues to be volatile. Since December the changes in China’s COVID-19 polices and outbreaks of ASF have caused imbalances in supply and demand. The pig price peaked at 28 RMB/kg in October, but has since unexpectedly reduced to the current price of 15 RMB/kg. Industry projections suggest prices will recover in Spring/Summer of 2023, with consumer demand expected to improve following the reduction of COVID-19 restrictions and supply expected to reduce. However, there is still uncertainty as to the shape and strength of this recovery.
“Across the regions ABS has continued to expand business with strategic accounts by building long-term partnerships and offering the leading combination of Sexcel and NuEra beef genetics. This, along with robust price increases to counter inflation, meant ABS achieved strong performances outside Latin America, in particular in North America. Latin American beef and dairy producers faced very challenging conditions during the period, as a result of the inflationary effects on input costs and weak consumer demand. As a result, ABS’s volume in Latin America declined, despite growing market share in Brazil. The political and economic uncertainties in the region are expected to continue to weigh on beef and dairy producers across Latin America for the remainder of the fiscal year.
“We also made good strategic progress with further investments in R&D, with an increase of spend on gene editing as we move towards FDA and international regulatory approval of our PRRSv-resistant pigs.
“The Board remains confident in the Group’s strategy and the many opportunities for Genus. Expectations for the 2023 fiscal year remain unchanged.
“In a separate statement also made today, I have announced my intention to retire on 30 September 2023 following ten years with Genus, the last four of which I have served as the CEO. It has been a great privilege and pleasure to lead such a talented group of people and help to develop Genus into the leading global animal genetics business it is today.
“Genus has many strong growth opportunities, and I will remain fully focused on the continued successful execution of our strategy while the Board progresses the search for my successor, in order to achieve a smooth transition.”
Outlook
As stated above, conditions remain challenging for our customers in several parts of the world. The most volatile conditions are currently being experienced by Chinese pig producers and Brazilian beef producers, and whilst there is some uncertainty as to when a sustained improvement will occur in those markets, we are confident that Genus remains well-placed to take advantage of a recovery. However, the performances of our business elsewhere, in particular in North America, are a testament to the benefits of Genus’s geographic diversification and the strength of our strategy. More broadly, our strong product portfolio and depth of talent in our company give us confidence that we will continue to make strategic and financial progress. Taking these factors into account, the Board’s expectations for the 2023 fiscal year remain unchanged.
Results presentation today
A pre-recorded analysts and bankers briefing to discuss the preliminary results for the six months ended 31 December 2022 will be held via a video webcast facility and will be accessible via the following link from 7:01am today:
https://stream.buchanan.uk.com/broadcast/63cab28d777efd4a8b5137d0
This will be followed by a live Q&A session to be held by invitation via Zoom at 10:30am. Please contact Verity Parker at Buchanan for details; verityp@buchanan.uk.com
Results Highlights
| Adjusted results1 | Statutory results | ||||||||
| Actual currency | Constant currency change2 | Actual currency | |||||||
| Six months ended 31 December | 2022 | 2021 | Change | 2022 | 2021 | Change | |||
| £m | £m | % | % | £m | £m | % | |||
| Revenue | 350.2 | 281.2 | 25 | 13 | 350.2 | 281.2 | 25 | ||
| Operating profit | 41.2 | 35.0 | 18 | 6 | 14.7 | 23.9 | (38) | ||
| Operating profit inc JVs | 48.3 | 39.7 | 22 | 9 | n/a | n/a | n/a | ||
| Operating profit inc JVs exc gene editing | 56.0 | 43.3 | 29 | 15 | n/a | n/a | n/a | ||
| Profit before tax | 42.2 | 37.0 | 14 | 1 | 15.0 | 24.4 | (39) | ||
| Free cash flow | (3.3) | (16.1) | n/m3 | n/m3 | |||||
| Basic earnings per share (pence) | 48.8 | 42.4 | 15 | 2 | 20.4 | 30.4 | (33) | ||
| Dividend per share (pence) | 10.3 | 10.3 | - | ||||||
Good Group performance
- Group revenue increased by 13% in constant currency (25% in actual currency)
- Operating profit including joint ventures up 9% in constant currency (22% in actual currency)
- R&D investment increased by 18%2 as planned, including gene editing spend which was up 86%2 reflecting the PRRSv programme and continued investment in other discovery projects
- Adjusted profit before tax (PBT) up 1% in constant currency (14% in actual currency); net finance costs up 115%2
- Statutory PBT reduced by 39% to £15.0m with a reduction in the IAS41 valuation of the Group’s biological assets, reflecting higher global interest rates which impacted the valuation discount rates applied
Record half-year PIC performance, gradual recovery in China
- Strong demand for PIC’s differentiated genetics, with both new and existing customers, drove growth in volumes up 5%, revenue up 9%2 and strategically important royalty revenue growth across all regions, up 14%2
- Adjusted operating profit including joint ventures increased by 19%2, to a new record half-year high
- Strong profit growth continued in North America, solid performances in Latin America and Asia. Europe’s performance impacted by challenging market conditions in certain countries
- In China, PIC’s volumes increased by 23%, with revenue up 11%2, royalty revenue up significantly by 102%2 and much improved adjusted operating profit of £8.8m (2021: £1.0m)
- The China pig price peaked at 28 RMB/kg in October before falling to 15 RMB/kg currently, due to African Swine Fever (ASF) and COVID-19 related supply and demand volatility.
ABS volumes up 4%, revenue up 13%2, despite particularly challenging markets in Latin America
- Expansion of long-term partnerships with strategic accounts underpinned by Sexcel and NuEra genetics drove strong profit growth in North America and solid performances in Europe and Asia. Latin America’s performance impacted by very challenging market conditions, particularly in Brazil where macroeconomics affected supply and demand
- Continued growth in sexed genetics, volumes up 14%, through Sexcel and third party sales of IntelliGen sexed semen production in North America and Europe
- Overall, ABS’s adjusted operating profit declined by 7%2 due to Latin America’s profit decrease, adverse production cost variances and planned digital investment costs, partially offset by lower patent royalty payments
Improved cash flows, dividend maintained
- Free cash outflow1 of £3.3m (2021: £16.1m outflow), reflecting higher adjusted profit performance and lower capital expenditure. Cash conversion of 62%1 (2021: 63%) in line with seasonal half-year expectations
- Net debt1 increased to £214.5m as expected, with a net debt to EBITDA ratio of 1.8x1, within 1.0x-2.0x targeted range
- Adjusted earnings per share 15% higher, interim dividend of 10.3p per share, with 2.8x1 adjusted earnings cover within 2.5x-3.0x targeted range
Good strategic progress achieved and continued investment for growth
- Good progress on three new world-class elite PIC farms; Atlas (Canada) now fully operational; Ankang (China) has commenced stocking; Granja Genesis (Brazil) is ready for stocking; positioning Genus well to capture future growth opportunities
- GenusOne deployed throughout the UK in the period, implementation underway in the rest of Europe
- Settlement of the 987 appeal, the fee award appeal and the Indian patent litigation with STgenetics (ST), delivering lower patent royalty payments for ABS
- Genus’s PRRSv-resistant pigs programme continues to make progress towards completing the US Food and Drug Administration (FDA) submissions by December 2023, with an aim to secure approval in 2024, and we are engaging with other international regulatory agencies
| 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. For more information on APMs, see APM Glossary. |
| 2 | Constant currency percentage movements are calculated by restating the results for the six months ended 31 December 2022 at the average exchange rates applied to adjusted operating profit for the year ended 30 June 2022. |
| 3 | n/m = not meaningful |
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 75 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 24 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 sanctions on the ability to trade, the effect of competition, inflation, deflation, the timing effect and other uncertainties of future acquisitions or combinations within relevant industries, the effect of the spread of African Swine Fever and other animal diseases, 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.
This announcement is available on the Genus website www.genusplc.com
| GENUS PLC CONDENSED CONSOLIDATED INCOME STATEMENT For the six months ended 31 December 2022 | |||
| Six months ended 31 December 2022 £m | Six months ended 31 December 2021 | Year ended 30 June 2022 | |
| REVENUE | 350.2 | 281.2 | 593.4 |
| Adjusted operating profit | 41.2 | 35.0 | 68.8 |
| Adjusting items: | |||
| – Net IAS 41 valuation movement on biological assets | (17.2) | (6.8) | (5.4) |
| – Amortisation of acquired intangible assets | (4.8) | (3.8) | (8.3) |
| – Share-based payment expense | (2.3) | (2.2) | (3.7) |
| (24.3) | (12.8) | (17.4) | |
| Exceptional items (net) | (2.2) | 1.7 | (2.0) |
| Total adjusting items | (26.5) | (11.1) | (19.4) |
| OPERATING PROFIT | 14.7 | 23.9 | 49.4 |
| Share of post-tax profit of joint ventures and associates retained | 6.4 | 3.2 | 5.2 |
| Finance costs | (6.1) | (2.8) | (6.6) |
| Finance income | – | 0.1 | 0.4 |
| PROFIT BEFORE TAX | 15.0 | 24.4 | 48.4 |
| Taxation | (3.0) | (5.5) | (11.7) |
| PROFIT FOR THE PERIOD | 12.0 | 18.9 | 36.7 |
| ATTRIBUTABLE TO: | |||
| Owners of the Company | 13.4 | 19.9 | 40.9 |
| Non-controlling interest | (1.4) | (1.0) | (4.2) |
| 12.0 | 18.9 | 36.7 | |
| EARNINGS PER SHARE | |||
| Basic earnings per share | 20.4p | 30.4p | 62.5p |
| Diluted earnings per share | 20.3p | 30.2p | 62.2p |
| Alternative Performance Measures | |||
| Adjusted operating profit | 41.2 | 35.0 | 68.8 |
| Adjusted operating profit attributable to non–controlling interest | 0.2 | (0.2) | (0.3) |
| Pre–tax share of profits from joint ventures and associates excluding net IAS 41 valuation movement | 6.9 | 4.9 | 9.2 |
| Gene editing costs | 7.7 | 3.6 | 7.9 |
| Adjusted operating profit including joint ventures and associates, excluding gene editing costs | 56.0 | 43.3 | 85.6 |
| Gene editing costs | (7.7) | (3.6) | (7.9) |
| Adjusted operating profit including joint ventures and associates | 48.3 | 39.7 | 77.7 |
| Net finance costs | (6.1) | (2.7) | (6.2) |
| Adjusted profit before tax | 42.2 | 37.0 | 71.5 |
| Adjusted earnings per share | |||
| Basic adjusted earnings per share | 48.8p | 42.4p | 82.7p |
| Diluted adjusted earnings per share | 48.5p | 42.1p | 82.3p |
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 as superior to them.
| GENUS PLC CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 31 December 2022 | ||||||||||||
| Six months ended 31 December 2022 | Six months ended 31 December 2021 | Year ended 30 June 2022 | ||||||||||
| £m | £m | £m | £m | £m | £m | |||||||
| PROFIT FOR THE PERIOD | 12.0 | 18.9 | 36.7 | |||||||||
| Items that may be reclassified subsequently to profit or loss | ||||||||||||
| Foreign exchange translation differences | (4.5) | 4.6 | 66.6 | |||||||||
| Fair value movement on net investment hedges | (0.9) | 0.2 | (0.7) | |||||||||
| Fair value movement on cash flow hedges | 0.6 | – | 1.9 | |||||||||
| Tax relating to components of other comprehensive expense | 0.7 | (1.3) | (8.2) | |||||||||
| (4.1) | 3.5 | 59.6 | ||||||||||
| Items that may not be reclassified subsequently to profit or loss | ||||||||||||
| Actuarial (losses)/gains on retirement benefit obligations | (36.4) | 24.1 | 27.3 | |||||||||
| Movement on pension asset recognition restriction | 36.9 | (24.0) | (69.8) | |||||||||
| Release of additional pension liability | – | – | 43.7 | |||||||||
| Gain/(loss) on equity instruments measured at fair value | 1.1 | – | (6.1) | |||||||||
| Tax relating to components of other comprehensive (expense)/income | (0.3) | – | 1.1 | |||||||||
| 1.3 | 0.1 | (3.8) | ||||||||||
| OTHER COMPREHENSIVE (EXPENSE)/INCOME FOR THE PERIOD | (2.8) | 3.6 | 55.8 | |||||||||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 9.2 | 22.5 | 92.5 | |||||||||
| ATTRIBUTABLE TO: | ||||||||||||
| Owners of the Company | 10.9 | 23.7 | 97.3 | |||||||||
| Non-controlling interest | (1.7) | (1.2) | (4.8) | |||||||||
| 9.2 | 22.5 | 92.5 | ||||||||||
| GENUS PLC CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended 31 December 2022 | ||||||||||||||||||
| Called up | Share premium account £m | Own shares | Translation reserve | Hedging reserve | Retained earnings £m | Total | Non- | Total equity | ||||||||||
| BALANCE AT 30 JUNE 2021 | 6.6 | 179.1 | (0.1) | (7.9) | – | 320.4 | 498.1 | (1.5) | 496.6 | |||||||||
| Foreign exchange translation differences, net of tax | – | – | – | 59.4 | – | – | 59.4 | (0.6) | 58.8 | |||||||||
| Fair value movement on net investment hedges, net of tax | – | – | – | (0.6) | – | – | (0.6) | – | (0.6) | |||||||||
| Fair value movement on cash flow hedges, net of tax | – | – | – | – | 1.4 | – | 1.4 | – | 1.4 | |||||||||
| Loss on equity instruments measured at fair value, net of tax | – | – | – | – | – | (4.6) | (4.6) | – | (4.6) | |||||||||
| Actuarial gains on retirement benefit obligations, net of tax | – | – | – | – | – | 19.5 | 19.5 | – | 19.5 | |||||||||
| Movement on pension asset recognition restriction, net of tax | – | – | – | – | – | (49.7) | (49.7) | – | (49.7) | |||||||||
| Recognition of additional pension liability, net of tax | – | – | – | – | – | 31.0 | 31.0 | – | 31.0 | |||||||||
| Other comprehensive income for the year | – | – | – | 58.8 | 1.4 | (3.8) | 56.4 | (0.6) | 55.8 | |||||||||
| Profit/(loss) for the year | – | – | – | – | – | 40.9 | 40.9 | (4.2) | 36.7 | |||||||||
| Total comprehensive income for the year | – | – | – | 58.8 | 1.4 | 37.1 | 97.3 | (4.8) | 92.5 | |||||||||
| Recognition of share-based payments, net of tax | – | – | – | – | – | 4.0 | 4.0 | – | 4.0 | |||||||||
| Dividends | – | – | – | – | – | (20.9) | (20.9) | – | (20.9) | |||||||||
| Adjustment arising from change in non-controlling interest and written put option | – | – | – | – | – | – | – | (0.1) | (0.1) | |||||||||
| BALANCE AT 30 JUNE 2022 | 6.6 | 179.1 | (0.1) | 50.9 | 1.4 | 340.6 | 578.5 | (6.4) | 572.1 | |||||||||
| Foreign exchange translation differences, net of tax | – | – | – | (3.7) | – | – | (3.7) | (0.3) | (4.0) | |||||||||
| Fair value movement on net investment hedges, net of tax | – | – | – | (0.7) | – | – | (0.7) | – | (0.7) | |||||||||
| Fair value movement on cash flow hedges, net of tax | – | – | – | – | 0.6 | – | 0.6 | – | 0.6 | |||||||||
| Gain on equity instruments measured at fair value, net of tax | – | – | – | – | – | 0.8 | 0.8 | – | 0.8 | |||||||||
| Actuarial losses on retirement benefit obligations, net of tax | – | – | – | – | – | (29.4) | (29.4) | – | (29.4) | |||||||||
| Movement on pension asset recognition restriction, net of tax | – | – | – | – | – | 29.9 | 29.9 | – | 29.9 | |||||||||
| Other comprehensive expense for the period | – | – | – | (4.4) | 0.6 | 1.3 | (2.5) | (0.3) | (2.8) | |||||||||
| Profit/(loss) for the period | – | – | – | – | – | 13.4 | 13.4 | (1.4) | 12.0 | |||||||||
| Total comprehensive income for the period | – | – | – | (4.4) | 0.6 | 14.7 | 10.9 | (1.7) | 9.2 | |||||||||
| Recognition of share-based payments, net of tax | – | – | – | – | – | 2.9 | 2.9 | – | 2.9 | |||||||||
| Dividends | – | – | – | – | – | (14.2) | (14.2) | – | (14.2) | |||||||||
| Adjustment arising from change in non-controlling interest and written put option | – | – | – | – | – | – | – | (0.1) | (0.1) | |||||||||
| BALANCE AT 31 DECEMBER 2022 | 6.6 | 179.1 | (0.1) | 46.5 | 2.0 | 344.0 | 578.1 | (8.2) | 569.9 | |||||||||
| Called up | Share premium account £m | Own shares | Translation reserve | Hedging reserve | Retained earnings £m | Total | Non- | Total equity | ||||||||||
| BALANCE AT 30 JUNE 2021 | 6.6 | 179.1 | (0.1) | (7.9) | – | 320.4 | 498.1 | (1.5) | 496.6 | |||||||||
| Foreign exchange translation differences, net of tax | – | – | – | 3.5 | – | – | 3.5 | (0.2) | 3.3 | |||||||||
| Fair value movement on net investment hedges, net of tax | – | – | – | 0.2 | – | – | 0.2 | – | 0.2 | |||||||||
| Actuarial gains on retirement benefit obligations, net of tax | – | – | – | – | – | 18.8 | 18.8 | – | 18.8 | |||||||||
| Movement on pension asset recognition restriction, net of tax | – | – | – | – | – | (18.7) | (18.7) | – | (18.7) | |||||||||
| Other comprehensive income for the period | – | – | – | 3.7 | – | 0.1 | 3.8 | (0.2) | 3.6 | |||||||||
| Profit/(loss) for the period | – | – | – | – | – | 19.9 | 19.9 | (1.0) | 18.9 | |||||||||
| Total comprehensive income/(expense) for the period | – | – | – | 3.7 | – | 20.0 | 23.7 | (1.2) | 22.5 | |||||||||
| Recognition of share-based payments, net of tax | – | – | – | – | – | 1.5 | 1.5 | – | 1.5 | |||||||||
| Dividends | – | – | – | – | – | (14.2) | (14.2) | – | (14.2) | |||||||||
| BALANCE AT 31 DECEMBER 2021 | 6.6 | 179.1 | (0.1) | (4.2) | – | 327.7 | 509.1 | (2.7) | 506.4 | |||||||||
| GENUS PLC CONDENSED CONSOLIDATED BALANCE SHEET As at 31 December 2022 | |||
| 31 December 2022 | 31 December 2021 | 30 June 2022 | |
| ASSETS | |||
| Goodwill | 111.7 | 102.2 | 111.0 |
| Other intangible assets | 68.4 | 55.4 | 72.0 |
| Biological assets | 322.7 | 288.2 | 333.7 |
| Property, plant and equipment | 168.3 | 142.2 | 171.4 |
| Interests in joint ventures and associates | 49.1 | 36.1 | 41.2 |
| Other investments | 11.7 | 15.9 | 10.2 |
| Derivative financial assets | 2.6 | – | 2.2 |
| Other receivables | 8.1 | 1.8 | 8.6 |
| Deferred tax assets | 10.1 | 5.1 | 10.1 |
| TOTAL NON-CURRENT ASSETS | 752.7 | 646.9 | 760.4 |
| Inventories | 59.2 | 44.3 | 50.9 |
| Biological assets | 30.9 | 36.6 | 33.1 |
| Trade and other receivables | 135.9 | 118.1 | 129.5 |
| Cash and cash equivalents | 42.3 | 45.9 | 38.8 |
| Income tax receivable | 2.0 | 3.6 | 4.0 |
| Derivative financial assets | 0.9 | 0.6 | 1.0 |
| Asset held for sale | 0.2 | 0.2 | 0.2 |
| TOTAL CURRENT ASSETS | 271.4 | 249.3 | 257.5 |
| TOTAL ASSETS | 1,024.1 | 896.2 | 1017.9 |
| LIABILITIES | |||
| Trade and other payables | (110.8) | (113.1) | (124.7) |
| Interest-bearing loans and borrowings | (7.3) | (10.6) | (7.1) |
| Provisions | (2.1) | (1.6) | (1.9) |
| Deferred consideration | – | (1.3) | (0.8) |
| Obligations under leases | (9.9) | (8.6) | (10.1) |
| Tax liabilities | (1.8) | (4.3) | (4.9) |
| Derivative financial liabilities | (1.7) | (1.2) | (1.8) |
| TOTAL CURRENT LIABILITIES | (133.6) | (140.7) | (151.3) |
| Trade and other payables | – | (1.3) | (0.2) |
| Interest-bearing loans and borrowings | (214.9) | (151.0) | (182.1) |
| Retirement benefit obligations | (7.3) | (8.8) | (8.3) |
| Provisions | (11.0) | (10.9) | (12.0) |
| Deferred consideration | (0.6) | (0.6) | (0.7) |
| Deferred tax liabilities | (55.8) | (50.9) | (60.3) |
| Derivative financial liabilities | (6.3) | (6.6) | (6.4) |
| Obligations under leases | (24.7) | (19.0) | (24.5) |
| TOTAL NON-CURRENT LIABILITIES | (320.6) | (249.1) | (294.5) |
| TOTAL LIABILITIES | (454.2) | (389.8) | (445.8) |
| NET ASSETS | 569.9 | 506.4 | 572.1 |
| EQUITY | |||
| Called up share capital | 6.6 | 6.6 | 6.6 |
| Share premium account | 179.1 | 179.1 | 179.1 |
| Own shares | (0.1) | (0.1) | (0.1) |
| Translation reserve | 46.5 | (4.2) | 50.9 |
| Hedging reserve | 2.0 | – | 1.4 |
| Retained earnings | 344.0 | 327.7 | 340.6 |
| EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY | 578.1 | 509.1 | 578.5 |
| Non-controlling interest | (2.5) | 2.5 | (0.7) |
| Put option over non-controlling interest | (5.7) | (5.2) | (5.7) |
| TOTAL NON-CONTROLLING INTEREST | (8.2) | (2.7) | (6.4) |
| TOTAL EQUITY | 569.9 | 506.4 | 572.1 |
| GENUS PLC CONDENSED CONSOLIDATED GROUP STATEMENT OF CASH FLOWS For the six months ended 31 December 2022 | |||
| Six months ended 31 December 2022 £m | Six months ended 31 December 2021 | Year ended 30 June 2022 | |
| NET CASH FLOW FROM OPERATING ACTIVITIES | 11.8 | 11.6 | 34.3 |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Dividends received from joint ventures and associates | – | – | 3.2 |
| Acquisition of joint venture and associate | (2.0) | (1.1) | (2.2) |
| Disposal of joint venture and associate | – | 0.1 | – |
| Acquisition of trade and assets | – | (0.2) | (0.8) |
| Acquisition of Olymel AlphaGene assets | – | – | (14.5) |
| Acquisition of investments | (0.4) | (0.1) | (1.0) |
| Payment of deferred consideration | (0.8) | (0.5) | (1.0) |
| Purchase of property, plant and equipment | (10.7) | (24.1) | (42.1) |
| Purchase of intangible assets | (4.3) | (3.7) | (8.8) |
| Proceeds from sale of property, plant and equipment | - | 0.1 | – |
| NET CASH OUTFLOW FROM INVESTING ACTIVITIES | (18.2) | (29.5) | (67.2) |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Drawdown of borrowings | 80.1 | 62.8 | 138.7 |
| Repayment of borrowings | (47.2) | (25.4) | (83.9) |
| Payment of lease liabilities | (5.9) | (5.2) | (11.3) |
| Equity dividends paid | (14.2) | (14.2) | (20.9) |
| Dividend to non-controlling interest | (0.1) | – | (0.1) |
| Debt issue costs | (1.1) | (0.6) | (0.6) |
| NET CASH INFLOW FROM FINANCING ACTIVITIES | 11.6 | 17.4 | 21.9 |
| NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 5.2 | (0.5) | (11.0) |
| Cash and cash equivalents at start of period | 38.8 | 46.0 | 46.0 |
| Net increase/(decrease) in cash and cash equivalents | 5.2 | (0.5) | (11.0) |
| Effect of exchange rate fluctuations on cash and cash equivalents | (1.7) | 0.4 | 3.8 |
| TOTAL CASH AND CASH EQUIVALENTS AT END OF PERIOD | 42.3 | 45.9 | 38.8 |
| GENUS PLC ANALYSIS OF NET DEBT For the six months ended 31 December 2022 | |||||||
| At 1 July 2022 | Net cash flows | Foreign exchange | Non-cash movement | At 31 December 2022 | |||
| £m | £m | £m | £m | £m | |||
| Cash and cash equivalents | 38.8 | 5.2 | (1.7) | – | 42.3 | ||
| Interest-bearing loans - current | (7.1) | 0.4 | (0.1) | (0.5) | (7.3) | ||
| Lease liabilities - current | (10.1) | 5.9 | 0.1 | (5.8) | (9.9) | ||
| (17.2) | 6.3 | - | (6.3) | (17.2) | |||
| Interest-bearing loans - non-current | (182.1) | (32.2) | (0.6) | – | (214.9) | ||
| Lease liabilities - non-current | (24.5) | – | 0.3 | (0.5) | (24.7) | ||
| (206.6) | (32.2) | (0.3) | (0.5) | (239.6) | |||
| Total debt financing | (223.8) | (25.9) | (0.3) | (6.8) | (256.8) | ||
| Net debt | (185.0) | (20.7) | (2.0) | (6.8) | (214.5) | ||
| At 1 July 2021 | Net cash flows | Foreign exchange | Non-cash movement | At 31 December 2021 | |||
| £m | £m | £m | £m | £m | |||
| Cash and cash equivalents | 46.0 | (0.5) | 0.4 | – | 45.9 | ||
| Interest-bearing loans - current | (13.9) | 3.8 | (0.1) | (0.4) | (10.6) | ||
| Lease liabilities - current | (9.0) | 5.2 | (0.1) | (4.7) | (8.6) | ||
| (22.9) | 9.0 | (0.2) | (5.1) | (19.2) | |||
| Interest-bearing loans - non-current | (109.4) | (40.6) | (1.0) | – | (151.0) | ||
| Lease liabilities - non-current | (19.3) | – | (0.2) | 0.5 | (19.0) | ||
| (128.7) | (40.6) | (1.2) | 0.5 | (170.0) | |||
| Total debt financing | (151.6) | (31.6) | (1.4) | (4.6) | (189.2) | ||
| Net debt | (105.6) | (32.1) | (1.0) | (4.6) | (143.3) |
Net debt is gross debt, made up of unsecured bank loans and overdrafts and obligations under finance leases, with a deduction for cash and cash equivalents.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230222005976/en/
Contacts
Enquiries:
Genus plc (Stephen Wilson, Chief Executive Officer / Alison Henriksen, Chief Financial Officer) Tel: +44 1256 345970
Buchanan (Charles Ryland / Chris Lane / Verity Parker) Tel: +44 207 4665000
Source: Genus plc
View this news release online at:
http://www.businesswire.com/news/home/20230222005976/en
