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| Date/Time | Headline | Source |
|---|---|---|
| 02-03-10 | RNS |
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RNS Number : 9550H Genus PLC 02 March 2010 2 March 2010
FOR IMMEDIATE RELEASE GENUS plc ('Genus' or 'the Company') Director/PDMR Shareholding Genus announces that conditional nil-cost share options were today granted under the Genus 2004 Performance Share Plan to Bill Christianson, Chief Operating Officer of the Americas, as to 12,082 ordinary shares of 10 pence each in the Company. These nil-cost options are subject to performance conditions which relate to growth in the Company's earnings per share over a three year period and which trigger vesting on an incremental basis. Bill Christianson has no direct shareholding in the Company and is the beneficial owner of 12,082nil-cost share options and 46,493 market value share options under the Company's 2004 Executive Share Option Plan. For further information please contact: Ian Farrelly Group Company Secretary & General Counsel Genus plc Belvedere House Basing View Basingstoke
RG21 4HG Tel: 01256 345996 This information is provided by RNS The company news service from the London Stock Exchange END
RDSUUSSRRVAORAR More |
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| 26-02-10 | RNS |
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RNS Number : 7369H Genus PLC 26 February 2010 TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi
of existing shares to which voting rights are
attached:ii
2 Reason for the notification(please tick the appropriate box or boxes):
An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares
already issued to which voting rights are attached
An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments
An event changing the breakdown of voting rights
Other (please specify):
notification obligation:iii
NORTRUST NOMS LTD
JP MORGAN NOMINEES
NORTRUST NOMS LTD A/C PUQ01
HSBC SEOUL GL BASICS MOTHER FD
NORTRUST NOMINEE LTD A/C MKK01
NORTRUST NOMINEE LTD A/C MKM01
NORTRUST NOMINEE LTD A/C MHF01
which the threshold is crossed or
reached:v
reached:vi, vii
8. Notified details:
A: Voting rights attached to sharesviii, ix
if possible using
the ISIN CODE
B: Qualifying Financial Instruments
Resulting situation after the triggering transaction
C: Financial Instruments with similar economic effect to Qualifying Financial Instrumentsxv, xvi
Resulting situation after the triggering transaction
Total (A+B+C)
9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable:xxi Prudential plc (parent Company) M&G Group Limited (wholly owned subsidiary of Prudential plc) M&G Limited (wholly owned subsidiary of M&G Group Limited) M&G Investment Management Limited (wholly owned subsidiary of M&G Limited)
Proxy Voting:
to hold:
voting rights:
13. Additional information: M&G Securities Limited (wholly owned subsidiary of M&G Limited) no longer has a notifiable interest - now
This information is provided by RNS The company news service from the London Stock Exchange END
HOLGCGDDSBDBGGL More |
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| 25-02-10 | RNS |
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RNS Number : 6395H Genus PLC 25 February 2010
Genus plc ('Genus' or 'the Company') Senior Management Appointments Genus, a leading global animal genetics company, is pleased to announce the appointment of Ian Biggs as Head of Global Product and Business Strategy and the appointment of Bill Christianson as Chief Operating Officer of the Americas. Ian Biggs, previously Chief Operating Officer for the Americas, will be responsible for planning and implementation of business strategy opportunities whilst ensuring that Genus' product ranges are researched and developed to meet immediate commercial opportunities. Bill Christianson, previously General Manager of Genus' porcine business in the USA, will become responsible for Genus' operations in the Americas. These senior management appointments highlight Genus' continued investment in its porcine and bovine product portfolios. Additionally Genus announces that, following 36 years of service at Genus, Steve Amies, Chief Operating Officer for Research and Product Development, has indicated his wish to retire and will do so with effect from 31 March 2010. Richard Wood, Chief Executive, commented: "With the planned retirement of Steve Amies we have taken the opportunity to strengthen our existing management team's sales and business focus and we are delighted to announce the appointments of Ian Biggs and Bill Christianson to their new roles. Their experience and skills base will be invaluable as we look to take advantage of the expected recovery across agricultural markets. I wish Ian and Bill every success in their exciting new roles." "Steve Amies has played an instrumental role in the success of Genus since it became a public company in 1997. On behalf of the Board I would like to thank Steve for his substantial contribution to the development of Genus and I wish him a very happy retirement." For further information please contact:
Richard Wood, Chief Executive
Charles Ryland, Suzanne Brocks About Genus Genus creates advances to animal breeding through biotechnology and sells added value products for livestock farming and food producers. It's non-Genetically Modified Organism technology is applicable across all livestock species but is only commercialised by Genus in the bovine and porcine farming sectors. Genus' worldwide sales are made in seventy countries under the trademarks "ABS" (dairy and beef cattle) and "PIC" (pigs) and comprise semen and breeding animals with superior genetics to those animals currently in production. Customers' animals produce offspring with greater production efficiency, milk and meat output and quality and use these to supply the global dairy and meat supply chain. The Group's competitive edge has been created from the ownership and control of proprietary lines of breeding animals, the biotechnology used to improve them and the Group's global production and distribution network. Headquartered in Basingstoke, England, Genus companies operate in 30 countries on six continents, with research laboratories located in Madison, Wisconsin, USA. This information is provided by RNS The company news service from the London Stock Exchange END
MSCDZLFLBLFXBBQ More |
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| 25-02-10 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 6463H
Genus PLC
25 February 2010
For Immediate Release 25 February 2010
('Genus' or 'the Company')
Interim Results for the six months ended 31 December 2009
Genus, a world leading animal genetics company, announces its results for the six
months ended 31 December 2009. These results are reported under International Financial Reporting Standards ('IFRS').
FINANCIAL HIGHLIGHTS
Adjusted Results Movement
Actual Constant
Currency Currency+
2009 2008 % %
Six months ended 31 December £m £m
Continuing operations
Revenue 134.9 140.0 (4) (7)
Regional operating profit** 34.3 32.0 7 3
Operating profit* 19.3 19.0 2 (1)
Profit before tax* 15.5 16.9 (8) (11)
Earnings per share (p)* 17.2 19.0 (9)
Statutory Results
2009 2008 %
Six months ended 31 December £m £m
Continuing operations
Revenue 134.9 140.0 (4)
Operating profit 16.6 20.0 (17)
Profit before tax 13.0 17.9 (27)
Earnings per share (p) 15.0 19.2 (22)
* Adjusted operating profit, adjusted profit before tax and adjusted basic earnings per share are before fair value movements on biological assets, amortisation of acquired intangible assets, share based payments and exceptional items, and exclude other gains and losses.
** Regional operating profit represents adjusted operating profit before research & development costs and central costs.
+ Constant currency percentage movements are calculated by restating 2009 results at the exchange rates applied in 2008.
BUSINESS HIGHLIGHTS
· Resilient underlying performance in difficult agricultural markets and economic conditions
· Regional operating profit up 7% to £34.3m (2008: £32.0m)
o Bovine volumes up 3% and porcine royalty income up 6%
o Costs reduced throughout the Group in line with anticipated reduction in revenues
· Adjusted profit before tax of £15.5m (2008: £16.9m) 8% lower due to:
o Increased research and development costs in line with strategy
o Lower contribution from 49% owned Brazilian joint venture which operates a less robust royalty model
o £0.9m higher interest costs following refinancing in February 2009
· Cash inflow of £4.2m reduced net debt to £85.6m (June 2009: £88.0m) despite normal seasonal working capital increase
· US beef genetics operations expanded through £1.4m acquisition of Powerline Beef Genetics
· Continued success in product development
o Dairy sector competitive position improved with 33 bulls now in top 100 US ranking, up from 18 last year
o Rate of genetic improvement in porcine product development increased by a further 10%
Richard Wood, Chief Executive, commented:-
"Genus has weathered the deep global agricultural recession well. Operating profit was slightly ahead of the Board's expectation and was an improvement on last year.
"The early signs of market recovery are now becoming more evident and we remain on course to deliver an improved performance in the second half".
"Looking further ahead, the Group's geographic spread, investment in research and development and improving product portfolio leave Genus well placed to benefit from the recovery in agricultural markets and the return to long term growth expected in the markets in which it operates."
For further information please contact:-
Genus plc Tel: 01256 345970
Richard Wood, Chief Executive
John Worby, Finance Director
Buchanan Communications Tel: 0207 466 5000
Charles Ryland
Suzanne Brocks
Jennie Spivey
This announcement is available on the Genus website www.genusplc.com
GROUP PERFORMANCE
In a reporting period at the bottom of a deep global agricultural recession, Genus has continued to deliver a resilient underlying performance, slightly ahead of the Board's expectations. Regional operating profit, before research and development and central costs, was 7% higher than in the pre-recessionary first half of last year and 3% higher in constant currency.
Adjusted profit before tax of £15.5m was 8% lower than last year due to the combination of an increase in research and development costs in line with the Group's long-term strategy, a lower contribution from our Brazilian joint venture, which operates a less robust royalty model, and increased interest costs following last year's refinancing.
Tight control of cash held net debt at the half year of £85.6m to a level slightly lower than in June 2009 (£88.0m), despite the normal seasonal working capital outflow in the first half year.
Results
Revenue of £134.9m was 4% lower than in 2008. The majority of the reduction in revenues arose from porcine customers in the USA deferring the updating of genetics in their herds due to the agricultural recession. Importantly, underlying activity levels held up well and market share generally improved; a testimony to the strength of Genus' products. Bovine volumes rose 3% and porcine royalty income increased by 6% although porcine volumes only rose by 1%.
Adjusted operating profit was £19.3m (2008: £19.0m). Regional operating profit rose 7%, from a particularly strong performance in Europe, more than offsetting the impact of acutely depressed market conditions, particularly in North America. As expected, research & development costs were £2.2m higher than last year, mainly as a result of the increase in costs associated with bringing on stream the new porcine nucleus herd facility in South Dakota. The impact of weaker Sterling on the largely US based costs contributed to the increase.
After higher interest costs, resulting largely from increased interest margins payable following the refinancing in February last year, adjusted profit before tax was 8% lower at £15.5m (2008: £16.9m).
The statutory results include fair value adjustments on the Group's biological assets. When these non-cash items are taken into account, statutory operating profit was lower at £16.6m (2008: £20.0m). The reduction arose principally from a reduced credit in respect of the fair value movement in biological assets of £0.9m (2008: £5.5m). This was mainly due to a slower up-take of genetic updates by Genus' porcine customers; the impact on underlying profits was minimal, due to the resilience of the porcine royalty model. Statutory profit before tax of £13.0m ( 2008: £17.9m) reduced accordingly.
The effective rate of tax on adjusted profit before tax was 33.7% (2008: 34.1%). Adjusted basic earnings per share was 17.2p (2008: 19.0p).
Cash Flow and Net Debt
Capital expenditure for the half year of £3.7m (2008: £11.4m) was substantially lower than last year as the final stages of the planned research & development investment programme drew to a close. The new nucleus herd facility was completed in October 2009.
Tight working capital management contained the normal seasonal working capital outflows for the first half to £7.9m (2008: £13.0m). As a result of this and the lower level of capital expenditure, a net cash inflow before financing activities (excluding share capital issued) for the half year of £4.2m was achieved, compared to a £8.7m cash outflow in the prior period.
Net debt at the half year was £85.6m (30 June 2009: £88.0m).
Dividend
In line with previous years and the stated Group dividend policy, the Board will not be recommending an interim dividend but expects to recommend a final dividend when the results for the year to 30 June 2010 are announced.
REVIEW OF OPERATIONS
North America Movement
Actual Constant
2009 2008 Currency Currency
£m £m % %
Revenue 42.9 51.2 (16) (18)
Adjusted operating profit 14.3 14.6 (2) (5)
Adjusted operating margin 33% 29%
Producers in North America faced particularly difficult market conditions throughout 2009, with weakening demand, oversupply and high feed costs. As a result, the majority of producers became loss-making.
Customers reacted in varying ways to these market conditions:-
· In the bovine sector, where the market reversal was particularly sudden and deep, most customers traded down and this reduced average selling prices. On the west coast of the USA, where dairy farms are generally larger and more reliant on purchased feed, customer profitability was hardest hit by the sudden market reversal. These farmers saved money by using on-farm stock instead of making new semen purchases. As a result, semen sales volume was down 4% when compared with the pre-market downturn period last year.
· In the porcine sector, customers had been loss-making for longer than in the bovine sector and saved cash by deferring the updating of the genetics in their herds. As a result, revenue fell with significantly lower sales of breeding animals. However, royalty income was maintained at the same level as last year to produce a robust operating contribution.
To mitigate the impact on profitability of lower sales throughout the region, there has been a tight control of costs.
As a result, although revenue fell by 18%, profits were only 5% lower in constant currency.
REVIEW OF OPERATIONS (CONTINUTED)
Latin America Movement
Actual Constant
2009 2008 Currency Currency
£m £m % %
Revenue 17.3 15.9 9 2
Adjusted operating profit exc. joint venture 5.4 4.3 26 15
(JV)
Adjusted operating profit inc. JV 6.3 6.0 5 (2)
Adjusted operating margin exc. JV 31% 27%
Revenue increased by 9% to £17.3m (2008: £15.9m) and operating profit was up 5% to £6.3m (2008: £6.0m), although profits were down 2% in constant currency.
The strong improvement in both bovine and porcine profitability was held back by a disappointing performance from the 49% owned joint venture in Brazil, where low pig prices resulted in reduced profits as a result of a less robust royalty model that is more linked to hog prices than volumes.
Bovine semen sales grew strongly, with volume in both dairy and beef semen being up by 10%. Sales volume rose strongly in Brazil and Argentina and the company market share improved.
In porcine, market recovery led to improved underlying volumes and prices in Chile, although sales and profits were held back by delayed shipments to Venezuela due to export restrictions.
REVIEW OF OPERATIONS (CONTINUED)
Europe Movement
Actual Constant
2009 2008 Currency Currency
£m £m % %
Revenue 61.7 59.7 3 1
Adjusted operating profit 11.8 9.9 19 16
Adjusted operating margin 19% 17%
Europe performed well despite the difficult market conditions that prevailed throughout the period. Revenue increased by 3% to £61.7m and profits rose 19% to £11.8m.
European milk prices improved gradually from the very low levels experienced in the spring of 2009. However, farmers remained loss-making and were cautious in any purchasing.
Against this background, semen volume grew 6%. Italy, a country where Genus is the clear market leader, performed strongly. Volumes increased in a number of relatively new markets for Genus including Ukraine and Russia. Average prices were maintained and cost reductions contributed to improve profitability.
Pig prices remained depressed throughout Europe, except in the UK where prices benefited from the weakness of Sterling. The UK business continued to perform well. In Germany the business was restructured to reduce cost in response to disappointing sales.
In the strategically important growth countries of Eastern Europe, particularly Russia, Poland and Romania, strong volume growth was achieved.
Far East Movement
Actual Constant
2009 2008 Currency Currency
£m £m % %
Revenue 11.1 11.3 (2) (9)
Adjusted operating profit 2.8 3.2 (13) (18)
Adjusted operating margin 25% 28%
A severe drought in Australia and depressed pig markets throughout Asia, held back both sales and profit. Sales were 2% lower at £11.1m, and profit was 13% lower at £2.8m (2008: £3.2m).
The Australian spring heatwave dramatically reduced semen demand.
The new dairy semen business with Mengniu in China grew strongly, albeit from an embryonic base and a further 21 bulls were transferred from the Australian stud to increase local capacity to meet projected demand.
The market downturn in porcine limited demand. Customers in the Philippines and, to a lesser extent in China, delayed both updating of genetics and expansion plans. In response, Genus re-phased the planned new farm expansions in China to be more in line with the expected market recovery.
Research & Development Movement
Actual Constant
2009 2008 Currency Currency
£m £m % %
Research & development costs 11.4 9.2 24 14
Research and development costs for the six months increased by £2.2m to £11.4m, an increase of 24%, as the strategic expansion was commissioned. Part of the increase arose from the weakness of Sterling as the majority of the research and development activities are undertaken in the USA. On a constant currency basis, research and development costs were £1.4m higher. The increased costs of the new porcine nucleus herd facility in south Dakota accounted for £1.0m.
Bovine Product Development
The strength of Genus' bovine product development programme was extended in the latest league tables. Genus leads the internationally important US rankings and now has 33 bulls in the top 100, up from 18 a year ago. This has been achieved from a progeny testing programme of 220 bulls, some 20% of the total of bulls tested in the USA by the industry.
During the last year, Genus has largely completed the final stage of a strategic increase in the size of its US progeny test programme to a total of 300 bulls per annum. This increase was designed to create more World class bulls whose semen could be sold internationally. This should improve the Company's competitive edge, as the number of bulls graduating from the programme increases steadily over the next 4 years. The third of the four buildings required to house the increased number of bulls was completed during the half year at a cost of £1m.
Porcine Product Development
The new nucleus herd facility in South Dakota was completed and became operational in October 2009. This facility replaces the ageing Kentucky facility and will provide additional capacity to support Genus' long term growth. The size of the new facility will also enable Genus fully to replicate the genetic lines housed in its other nucleus facility in Saskatchewan, improving biosecurity and consequently reducing risk.
We continued to make good progress in quantitative genetics and cross bred trials so that the annual rate of increase in porcine genetic merit continued to rise. With the increasing application of the genomics programme, we are confident that further improvements in the rate of genetic progress will add to the company's competitive edge.
Fundamental Research
Our investment in research has been maintained. In our genomics programme, technological advances and appropriate investment in computing power have enabled us to increase the volume of SNP (units of genetic information) data used in our evaluations to 60,000 SNPs. These are already being used to accelerate genetic selection in the porcine programme and their use has now been extended into the bovine programme.
A further milestone has been achieved in the sexed semen project. Operational sorting of semen has been accomplished and the project has been elevated from a research to a development project.
REVIEW OF OPERATIONS (CONTINUED)
Genus products
Movement
Actual Constant
2009 2008 Currency Currency
£m £m % %
Revenue
Bovine 70.7 70.1 1 (3)
Porcine 62.3 68.0 (8) (11)
Research & Development 1.9 1.9
134.9 140.0
Adjusted operating profit
Bovine 10.1 10.4 (3) (2)
Porcine 14.2 13.9 2 (2)
Unallocated (5.0) (5.3)
19.3 19.0
Genus manages its global operations on a regional basis and monitors product performance globally.
Bovine volumes grew 3%; average selling prices were slightly lower principally due to lower average prices in the US as customers traded down in response to the difficult market conditions. Prices have stabilised and started to rise in recent months. Profitability was broadly maintained, benefiting from continued tight cost control.
In porcine, the fall in revenues occurred mainly in the US as customers deferred updating their genetics. The impact on profits was protected by the robustness of the royalty model and by cost reductions.
ACQUISITION
At the end of the period, Genus acquired for £1.4m Powerline Beef Genetics, a business focused on supplying beef genetics to large US customers. Whilst only a small acquisition, it provides an expansion platform for the premium beef genetics market. It will enable Genus to use its products and product development capabilities to grow more quickly in the integrated beef chain.
OUTLOOK
Genus has continued to deliver a resilient performance throughout the severe recession in World agricultural markets. Reported profits were held back by the expected increased investment in research and development and higher interest costs, neither of which are expected to be a feature of comparative performance in the second half of the year.
Towards the end of the half year, early market indicators started to turn positive in the USA. Milk prices improved to break even for farmers and the futures market is predicting a return to profitability for porcine producers by the summer. Whilst trading remains difficult in bovine, in porcine we have secured new business wins with existing customers looking to expand their herds as they become more confident in the outlook for improved markets. We have also started to see some early signs of recovery in a number of other markets.
As a result, the Group remains on course to deliver an improved performance in the second half year.
Looking further ahead, the Group's geographic spread, investment in research and development and improving product portfolio leave Genus well placed to benefit from the recovery in agricultural markets and the return to long term growth expected in the markets in which it operates.
PRINCIPAL RISKS & UNCERTAINTIES
The Genus plc 2009 Annual Report (a copy of which is available on the Genus website at www.genusplc.com) sets out a number of risks and uncertainties that might impact upon the performance of the Group and these comprise:-
Business Risk Outline
Environmental compliance Environmental incident e.g. arising from waste
disposal
Disease Disease outbreak in bull studs or porcine nucleus
herds and/or surrounding areas
Health & Safety Health & safety incident, e.g. accident at work
Sales Growth Changes in demand; interruptions or delay in product
supply; expansion into new markets; economic
conditions; competitor activity
Profit Growth Impact of economic conditions on operating costs,
e.g. high commodity prices
Business Interruption Failure of business infrastructure; delay in third
party supply of product or services
People Reliance on key employees
Currency Foreign exchange risks
Genus operates a structured risk management process that identifies, evaluates and prioritises risks and uncertainties and actively reviews control and mitigation activities. There has been no change to the principal risks summarised above that might affect the Group in the second half of the financial year.
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2009
Six months ended Six months ended Year ended
31 December 2009 31 December 2008 30 June 2009
Note £m £m £m
(*restated)
Revenue from continuing 4 134.9 140.0 280.4
operations
Adjusted operating profit from 19.3 19.0 38.1
continuing operations
Net IAS 41 valuation movements
on biological assets 9 0.9 5.5 2.7
Amortisation of acquired (2.6) (2.8) (5.2)
intangible assets
Share based payments (1.0) (1.1) (2.0)
16.6 20.6 33.6
Exceptional items:
- Environmental liabilities - (0.6) (0.6)
settlement
Operating profit from 16.6 20.0 33.0
continuing operations
Share of profit of joint 10 1.1 1.7 1.8
ventures and associates
Other gains and losses - - 0.4
Net finance costs before 6 (4.7) (3.8) (8.2)
exceptional items
Write off of unamortised - - (0.8)
arrangement fees
Net finance costs (4.7) (3.8) (9.0)
Profit before tax from 13.0 17.9 26.2
continuing operations
Taxation 7 (4.1) (6.6) (8.3)
Profit for the period from 8.9 11.3 17.9
continuing operations
Earnings per share from
continuing and total
operations
Basic earnings per share 12 15.0p 19.2p 30.4p
Diluted earnings per share 12 14.8p 18.9p 29.9p
Non statutory measure of
profit
Adjusted operating profit from 19.3 19.0 38.1
continuing operations
Pre tax share of profits from 0.9 1.7 2.1
joint venture and associates
excluding net IAS 41 valuation
movements
Net finance costs before (4.7) (3.8) (8.2)
exceptional items
Adjusted profit before 15.5 16.9 32.0
taxation from continuing
operations
Adjusted earnings per share
from continuing operations
Basic earnings per share 12 17.2p 19.0p 36.1p
Diluted earnings per share 12 17.0p 18.8p 35.6p
*see note 2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2009
Six months ended Six months ended Year ended
31 December 2009 31 December 2008 30 June 2009
£m £m £m £m £m £m
Profit for the period 8.9 11.3 17.9
Foreign exchange translation 14.9 75.3 44.1
differences
Fair value movement on net (2.1) (11.1) (11.7)
investment hedge
Fair value movement on cash - (3.2) (3.0)
flow hedges
Actuarial gains on defined 3.3 0.1 (13.6)
employee benefit schemes
Tax relating to components of
other comprehensive income (3.2) (23.0) (9.5)
Other comprehensive income for 12.9 38.1 6.3
the period
Total comprehensive income for 21.8 49.4 24.2
the period
Attributable to:
Owners of the Company 21.8 49.4 24.2
Minority interests - - -
21.8 49.4 24.2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2009
Called up Share premium Treasury Transl-ation reserve Hedging reserve Retained earnings Total Minority interest
Note share account shares
capital
Total equity
£m £m £m £m £m £m £m £m £m
Balance at 1 July 2008 5.9 111.7 (0.1) (7.9) 0.7 74.8 185.1 - 185.1
Foreign exchange translation - - - 26.9 - - 26.9
differences - 26.9
Fair value movement on net - - - (8.6) - - (8.6)
investment hedge, net of tax
- (8.6)
Fair value movement on cash - - - - (2.1) - (2.1)
flow hedges, net of tax - (2.1)
Actuarial losses on defined - - - - - (9.9) (9.9)
employee benefit schemes, net
of tax - (9.9)
Net income and expense - - - 18.3 (2.1) (9.9) 6.3
recognised directly in equity
- 6.3
Profit for the period - - - - - 17.9 17.9 - 17.9
Total recognised income and - - - 18.3 (2.1) 8.0 24.2
expense for the period
- 24.2
Recognition of share based - - - - - 1.1 1.1
payments, net of tax - 1.1
Issue of ordinary shares 0.1 - - - - - 0.1 - 0.1
Dividends 8 - - - - - (5.9) (5.9) - (5.9)
Balance at 30 June 2009 6.0 111.7 (0.1) 10.4 (1.4) 78.0 204.6 - 204.6
Foreign exchange translation - - - 12.0 - - 12.0
differences - 12.0
Fair value movement on net - - - (1.5) - - (1.5)
investment hedge, net of tax
- (1.5)
Fair value movement on cash - - - - - - -
flow hedges, net of tax
- -
Actuarial gains on defined - - - - - 2.4 2.4
employee benefit schemes, net
of tax - 2.4
Net income and expense - - - 10.5 - 2.4 12.9
recognised directly in equity
- 12.9
Profit for the period - - - - - 8.9 8.9 - 8.9
Total recognised income and - - - 10.5 - 11.3 21.8
expense for the period
- 21.8
Recognition of share based - - - - - 1.2 1.2
payments, net of tax - 1.2
Issue of ordinary shares - 0.3 - - - - 0.3 - 0.3
Minority interest on - - - - - - -
acquistion 0.3 0.3
Dividends 8 - - - - - (6.5) (6.5) - (6.5)
Balance at 31 December 2009 6.0 112.0 (0.1) 20.9 (1.4) 84.0 221.4 0.3 221.7
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the six months ended 31 December 2009
Note Called up Share premium Treasury shares Transl-ation reserve Hedging reserve Retained earnings Total
share account
capital
£m £m £m £m £m £m £m
Balance at 1 July 2008 5.9 111.7 (0.1) (7.9) 0.7 74.8 185.1
Foreign exchange translation - - - 48.3 - - 48.3
differences
Fair value movement on net - - - (8.0) - - (8.0)
investment hedge, net of tax
Fair value movement on cash - - - - (2.3) - (2.3)
flow hedges, net of tax
Actuarial losses on defined - - - - - 0.1 0.1
employee benefit schemes, net
of tax
Net income and expense - - - 40.3 (2.3) 0.1 38.1
recognised directly in equity
Profit for the period - - - - - 11.3 11.3
Total recognised income and - - - 40.3 (2.3) 11.4 49.4
expense for the period
Recognition of share based - - - - - 1.1 1.1
payments, net of tax
Dividends 8 - - - - - (5.9) (5.9)
Balance at 31 December 2008 5.9 111.7 (0.1) 32.4 (1.6) 81.4 229.7
CONDENSED CONSOLIDATED BALANCE SHEET
31 December 2009
Note 31 31 December 2008 30 June
December 2009
2009
£m £m £m
Assets
Goodwill 74.8 76.0 70.5
Other intangible assets 79.7 91.4 81.1
Biological assets 9 158.4 169.4 153.9
Property, plant and equipment 42.1 42.9 39.3
Interests in joint ventures and 10 6.7 5.1 5.3
associates
Available for sale investments 0.4 0.4 0.3
Derivative financial assets 1.4 - 1.7
Deferred tax assets 16.1 16.4 16.7
Total non-current assets 379.6 401.6 368.8
Inventories 28.5 32.5 28.0
Biological assets 9 30.9 32.4 28.0
Trade and other receivables 60.0 61.5 53.7
Cash and cash equivalents 27.8 20.0 20.6
Income tax receivable 1.2 1.7 1.4
Derivative financial assets - 0.3 -
Asset held for sale 0.3 - -
Total current assets 148.7 148.4 131.7
Total assets 528.3 550.0 500.5
Liabilities
Trade and other payables (37.4) (40.2) (39.0)
Dividends payable (6.5) (5.8) -
Interest-bearing loans and (6.8) (23.0) (2.5)
borrowings
Provisions (0.3) (0.8) (0.2)
Obligations under finance leases (0.9) (0.9) (0.9)
Current tax liabilities (6.2) (10.3) (4.8)
Total current liabilities (58.1) (81.0) (47.4)
CONDENSED CONSOLIDATED BALANCE SHEET
31 December 2009
Note 31 December 31 December 2008 30 June
2009 2009
£m £m £m
Interest-bearing loans and (104.8) (93.5) (104.2)
borrowings
Pension deficit 14 (32.2) (22.5) (35.4)
Provisions (1.6) (1.8) (1.8)
Deferred tax liabilities (98.8) (105.8) (96.3)
Derivative financial (10.2) (13.9) (9.8)
liabilities
Obligations under finance (0.9) (1.8) (1.0)
leases
Total non-current liabilities (248.5) (239.3) (248.5)
Total liabilities (306.6) (320.3) (295.9)
Net assets 221.7 229.7 204.6
Equity
Called up share capital 6.0 5.9 6.0
Share premium account 112.0 111.7 111.7
Treasury shares (0.1) (0.1) (0.1)
Translation reserve 20.9 32.4 10.4
Hedging reserve (1.4) (1.6) (1.4)
Retained earnings 84.0 81.4 78.0
Equity attributable to owners of the 221.4 229.7 204.6
Company
Minority interest 0.3 - -
Total equity 221.7 229.7 204.6
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 December 2009
Note Six months Six months Year
ended ended ended
31 December 31 December 30 June
2009 2008 2009
£m £m £m
(*restated)
Net cash flow from operating 13 7.3 1.1 14.1
activities
Cash flows from investing
activities
Dividend received from joint - 1.1 2.1
venture and associates
Purchase of property, plant (3.7) (11.1) (15.2)
and equipment
Proceeds from disposal of - - 0.3
businesses
Purchase of intangible assets - (0.3) (0.3)
Proceeds from sale of 0.3 0.5 1.0
property, plant and equipment
Net cash outflow from (3.4) (9.8) (12.1)
investing activities
Cash flows from financing
activities
Drawdown of borrowings - 3.6 14.7
Repayment of borrowings (1.7) - (11.3)
Payment of capital element of (0.5) (0.7) (0.8)
finance lease liabilities
Equity dividends paid - - (5.9)
New share capital issued 0.3 - 0.1
Increase in bank overdrafts 4.6 3.4 1.2
Net cash inflow/(outflow) from 2.7 6.3 (2.0)
financing activities
Net increase/(decrease) in
cash and cash equivalents - 6.6 (2.4) (0.3)
continuing operations
Net increase in cash and cash
equivalents - discontinued - - 0.3
operations
Net increase/(decrease) in 6.6 (2.4) -
cash and cash equivalents
Cash and cash equivalents at 20.6 19.3 19.3
beginning of period
Net increase/(decrease) in 6.6 (2.4) -
cash and cash equivalents
Effect of exchange rate 0.6 3.1 1.3
fluctuations on cash held
Total cash and cash 27.8 20.0 20.6
equivalents at end of period
*Interest paid and interest received has been restated to be included within net cash flow from operating activities.
ANALYSIS OF NET DEBT
31 December 2009
At 1 July 2009 Cash flows Foreign exchange Non-cash movements At 31 December 2009
£m £m £m £m £m
Cash and cash equivalents 20.6 6.6 0.6 - 27.8
Interest-bearing loans - (2.5) (4.2) (0.1) - (6.8)
current
Obligation under finance (0.9) 0.5 - (0.5) (0.9)
leases - current
(3.4) (3.7) (0.1) (0.5) (7.7)
Interest-bearing loans - (104.2) 1.3 (1.1) (0.8) (104.8)
non-current
Obligation under finance lease (1.0) - - 0.1 (0.9)
- non-current
(105.2) 1.3 (1.1) (0.7) (105.7)
Net debt (88.0) 4.2 (0.6) (1.2) (85.6)
Cash and interest bearing loans current at 31 December 2009 include UK treasury cash- pooling balances of £8.0m which are shown gross (31 December 2008: £5.6m).
At 1 July 2008 Cash flows Foreign exchange Non-cash movements At 31 December 2008
£m £m £m £m £m
Cash and cash equivalents 19.3 (2.4) 3.1 - 20.0
Interest-bearing loans - (17.6) 2.1 - (7.5) (23.0)
current
Obligation under finance (1.0) 0.7 (0.2) (0.4) (0.9)
leases - current
(18.6) 2.8 (0.2) (7.9) (23.9)
Interest-bearing loans - (77.0) (9.5) (14.5) 7.5 (93.5)
non-current
Obligation under finance lease (1.2) - (0.3) (0.3) (1.8)
- non-current
(78.2) (9.5) (14.8) 7.2 (95.3)
Net debt (77.5) (9.1) (11.9) (0.7) (99.2)
Net debt is defined as the total of cash and cash equivalents, interest bearing loans, unamortised debt issue costs and obligations under finance leases.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For the six months ended 31 December 2009
1. Basis of preparation
The unaudited condensed set of financial statements for the six months ended 31 December 2009:
· was prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' ("IAS 34") and thereby International Financial Reporting Standards ("IFRS"), both as issued by the International Accounting Standards Board ("IASB") and as adopted by the European Union ("EU");
· is presented on a condensed basis as permitted by IAS 34 and therefore does not include all disclosures that would otherwise be required in a full set of financial statements; these should be read, therefore, in conjunction with the 2009 Annual Report;
· includes all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the periods presented;
· does not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006: and
· were approved by the Board of Directors on 24 February 2010.
The information relating to the year ended 30 June 2009 is an extract from the published financial statements for that year, which have been delivered to the Registrar of Companies. The auditors' report on those financial statements was not qualified and did not contain statements under section 498(2) or (3) of the Companies Act 2006.
The Group's business activities and principal risks and uncertainties are summarised in the Principal Risks and uncertainties section in this interim report. Having considered these risks and uncertainties under the current economic environment, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Therefore they continue to adopt the going concern basis in preparing the half yearly report and condensed set of financial statements.
The preparation of the condensed set of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenue and expenses during the period. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of revision and future periods if the revision affects both current and future periods.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For the six months ended 31 December 2009
2. Accounting policies and non-GAAP measures The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest annual audited financial statements, dated 9 September 2009, which are available on the Group's website www.genusplc.com except as described below.
Changes in accounting policies
In the current financial year, the Group has adopted International Accounting Standard 1 "Presentation of Financial Statements" (revised 2007) and International Financial Reporting Standard 3 "Business Combinations" (revised 2008).
IAS 1(revised) requires the presentation of a statement of changes in equity as a primary statement, separate from the income statement and statement of comprehensive income. As a result, a condensed consolidated statement of changes in equity has been included in the primary statements, showing changes in each component of equity for each period presented.
The adoption of IFRS 3 (revised) has not changed any previously reported figure but has changed certain Group accounting policies which are detailed below.
Business combinations
All business combinations are accounted for by applying the purchase method. The cost of acquisition is measured at the aggregate of the fair value at the date of exchange of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred.
The acquiree's identifiable assets, liabilities and contingent liabilities which meet the conditions for recognition under IFRS 3 are recognised at their fair values at the acquisition date, except for non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 "Non-current assets held for sale and discontinued operations", which are recognised and measured at fair value less costs to sell.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For the six months ended 31 December 2009
2. ACCOUNTING POLICIES AND NON-GAAP MEASURES (continued) Changes in accounting policies (continued)
Goodwill
Goodwill arising on the acquisition of a subsidiary, associate or joint venture represents the excess of the cost of acquisition excluding transaction costs over the Group's interests in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree. Identifiable assets include any intangible assets which could be sold separately or which arise from legal rights regardless of whether those rights are separable.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is not amortised but is tested annually for impairment. In respect of associates, the carrying amount of goodwill is included in the carrying amount of the investment in the associate.
As required by IAS 21, goodwill arising on acquisition of a foreign operation and any fair value adjustments made to the carrying amounts of assets and liabilities within the acquired operation on acquisition are treated as assets and liabilities of the acquired entity rather than assets or liabilities of the acquiring entity, and are therefore expressed in the functional currency of the foreign operation and retranslated at the balance sheet date.
New standards and interpretations
At the balance sheet date a number of new standards, amendments and interpretations were in issue but not yet effective:
- IFRIC 19 'Extinguishing Financial Liabilities with Equity Instruments' will become mandatory for the Group's 2011 financial statements. The Group is assessing the impact of these amendments.
- Amendments to IAS 7, IAS 17, IAS 24, IAS 32, IAS 36, IFRS 2, IFRS 5 and the omnibus of other minor improvements, effective for the year ended 30 June 2011. The Group is assessing the impact of these amendments.
Non-GAAP measures - Adjusted operating profit and adjusted profit before tax
Adjusted operating profit and adjusted operating profit before tax from continuing operations are defined as before the net IAS 41 valuation movements in biological assets, amortisation of acquired intangible assets, share based payments expense, exceptional items and other gains and losses. These additional non-GAAP measure of operating performance are included as the Directors believe that they provide a useful alternative measure for shareholders of the trading performance of the Group. The reconciliation between operating profit from continuing operations and adjusted operating profit from continuing operations is shown on the face of the income statement. The Directors recognise this alternative measure has limitations.
In the year ended 30 June 2009, the definition of adjusted operating profit was amended such that in respect of the amortisation of intangible assets only the amortisation of acquired intangible assets is excluded. Included within amortisation of intangible assets in the 6 months period to 31 December 2008 was £0.3m relating to the amortisation of software assets. To ensure consistency, results for the six months ended 31 December 2008 have been amended accordingly.
3. Foreign currency The principal exchange rates used were as follows:
Average Closing
Six months ended 31 December 2009 Six months ended 31 Year 31 December 2009 31 December 30 June
December ended 2008 2009
2008 30 June
2009
US Dollar 1.63 1.70 1.60 1.61 1.45 1.65
Euro 1.12 1.22 1.17 1.13 1.04 1.17
Assets and liabilities of overseas undertakings are translated into sterling at the rate of exchange ruling at the balance sheet date and the income statement is translated into sterling at average rates of exchange.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For the six months ended 31 December 2009
4. Segmental information The Group presents its segmental information on the basis reviewed regularly for assessing business performance and for the purposes of resource allocation, by the chief operating decision maker. The Group is managed using a combination of regional market segments and a research and development segment.
The Group's business is not highly seasonal and its customer base is diversified, with no individually significant customer.
Revenue Six months ended 31 December 2009
Gross revenue Inter-segment Consolidated
revenue revenue
£m £m £m
North America 44.6 (1.7) 42.9
Latin America 17.6 (0.3) 17.3
Europe 63.0 (1.3) 61.7
Far East 11.1 - 11.1
Research & Product Development
Research - - -
Bovine Product Development 4.7 (3.1) 1.6
Porcine Product Development 2.3 (2.0) 0.3
7.0 (5.1) 1.9
Revenue 143.3 (8.4) 134.9
Revenue Six months ended 31 December 2008
Gross revenue Inter-segment Consolidated
revenue revenue
£m £m £m
(*restated) (*restated) (*restated)
North America 52.8 (1.6) 51.2
Latin America 16.7 (0.8) 15.9
Europe 61.1 (1.4) 59.7
Far East 11.3 - 11.3
Research & Product Development
Research - - -
Bovine Product Development 4.7 (3.1) 1.6
Porcine Product Development 2.2 (1.9) 0.3
6.9 (5.0) 1.9
148.8 (8.8) 140.0
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For the six months ended 31 December 2009
4. SEGMENTAL INFORMATION (CONTINUED)
Year ended 30 June 2009
Gross revenue Inter-segment Consolidated
revenue revenue
£m £m £m
North America 109.0 (3.8) 105.2
Latin America 34.1 (1.3) 32.8
Europe 118.8 (2.5) 116.3
Far East 21.8 - 21.8
Research & Product Development
Research - - -
Bovine Product Development 6.8 (6.3) 0.5
Porcine Product Development 7.2 (3.4) 3.8
14.0 (9.7) 4.3
Revenue 297.7 (17.3) 280.4
Operating profit by segment and a reconciliation to adjusted operating profit for the Group is set out below. A reconciliation of adjusted operating profit to profit for the year is shown on the Group Income Statement.
Six months ended 31 December 2009
Result before Product Development recharges Segment
recharges total
£m £m £m
North America 16.4 (2.1) 14.3
Latin America 6.4 (1.0) 5.4
Europe 12.6 (0.8) 11.8
Far East 3.1 (0.3) 2.8
Regional operating profit 38.5 (4.2) 34.3
Research & Product Development
Research (1.4) - (1.4)
Bovine Product Development (8.6) 2.8 (5.8)
Porcine Product Development (5.6) 1.4 (4.2)
(15.6) 4.2 (11.4)
Segment operating profit 22.9 - 22.9
Central costs (3.6) - (3.6)
Adjusted operating profit 19.3 - 19.3
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
4. SEGMENTAL INFORMATION (CONTINUED) Six months ended 31 December 2008
Result before Product Development Segment
recharges recharges total
£m £m £m
(*restated) (*restated) (*restated)
North America 17.4 (2.8) 14.6
Latin America 5.4 (1.1) 4.3
Europe 10.7 (0.8) 9.9
Far East 3.5 (0.3) 3.2
Regional operating profit 37.0 (5.0) 32.0
Research & Product Development
Research (1.5) - (1.5)
Bovine Product Development (8.2) 3.2 (5.0)
Porcine Product Development (4.5) 1.8 (2.7)
(14.2) 5.0 (9.2)
Segment operating profit 22.8 - 22.8
Central costs (3.8) - (3.8)
Adjusted operating profit 19.0 - 19.0
Year ended 30 June 2009
Result before Product Development Segment
recharges recharges total
£m £m
£m
North America 37.7 (5.4) 32.3
Latin America 10.4 (2.1) 8.3
Europe 20.2 (1.6) 18.6
Far East 6.9 (0.6) 6.3
Regional operating profit 75.2 (9.7) 65.5
Research & Product Development
Research (3.5) (3.5)
Bovine Product Development (15.8) 6.3 (9.5)
Porcine Product Development (10.8) 3.4 (7.4)
(30.1) 9.7 (20.4)
Segment operating profit 45.1 - 45.1
Central costs (7.0) - (7.0)
Adjusted operating profit 38.1 - 38.1
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
4. SEGMENTAL INFORMATION (CONTINUED)
Segment Assets Segment Liabilities
31 December 31 December 30 June 2009 31 December 31 December 30 June 2009
2009 2008 £m 2009 2008 £m
£m £m £m £m
(*restated) (*restated)
North America 131.4 160.6 137.6 (24.4) (47.8) (34.9)
Latin America 58.4 57.2 47.5 (9.8) (12.6) (9.1)
Europe 106.1 95.0 93.2 (59.6) (35.7) (50.9)
Far East 24.3 26.2 22.2 (3.9) (4.0) (4.0)
Research & Product Development
Research 0.5 0.5 0.5 - - -
Bovine Product Development 146.6 143.7 136.6 (43.1) (42.3) (38.8)
Porcine Product Development 47.7 45.0 42.1 (14.2) (9.0) (11.7)
194.8 189.2 179.2 (57.3) (51.3) (50.5)
Segment total 515.0 528.2 479.7 (155.0) (151.4) (149.4)
Central costs and unallocated 13.3 21.8 20.8 (151.6) (168.9) (146.5)
Total 528.3 550.0 500.5 (306.6) (320.3) (295.9)
*The comparative information for six months ended 31 December 2008 has been restated following the adoption of IFRS 8.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
5. Acquisition On 30 December 2009, the Group acquired the trade and assets of the beef genetics business of Power Genetics Company for a consideration of £1.1m cash and a 20% equity stake in the acquiring company, Powerline Beef Genetics LLC. This transaction has been accounted for by the purchase method of accounting.
Provisional fair value
Book
value
£m £m
Net assets acquired:
Trade and other receivables 0.3 0.3
Intangible assets - 0.2
0.3 0.5
Goodwill 0.9
Total consideration 1.4
Satisfied by:
Amounts payable by 25 March 2010 1.1
20% equity in Powerline Beef Genetics LLC 0.3
1.4
The goodwill arising on the acquisition of the trade and assets of Power Genetics Company is attributable to the anticipated profitability of the distribution of the Group's products in the new markets.
If the acquisition of Power Genetics Company had been completed on the first day of the financial year, the impact on Group revenues for the period would have been £0.1m and the impact on the Group profit attributable to equity holders of the parent would have been nil. The Power Genetics Company is a seasonal business and expects to make the majority of its profits in the period from 1 January to 30 June.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
6. Net finance costs
Six months Six months ended Year
ended 31 December ended
31 December 2008 30 June
2009 2009
£m £m £m
Interest payable on bank loans (1.8) (3.0) (5.6)
and overdrafts
Amortisation of debt issue (0.8) (0.4) (1.8)
costs
Net interest cost in respect (0.8) (0.4) (0.9)
of pension schemes
Other interest payable (0.1) (0.3) (0.3)
Net interest cost on (1.3) - (1.0)
derivative financial
instruments
Total interest expense (4.8) (4.1) (9.6)
Less: amounts included in the - - 0.2
cost of qualifying assets
(4.8) (4.1) (9.4)
Interest income and other 0.1 0.3 0.4
interest receivable
Interest income 0.1 0.3 0.4
Net finance costs (4.7) (3.8) (9.0)
Effect of exceptional write off of unamortised arrangement
fee
Net finance costs (4.7) (3.8) (9.0)
Exceptional item: write off of unamortised arrangement fee - - 0.8
Net finance costs before exceptional item (4.7) (3.8) (8.2)
During the year to 30 June 2009, £0.8m of unamortised arrangement fees relating to the old facility were expensed on completion of the refinancing as an exceptional charge.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
7. Income taxes Continuing operations:
Six months Six months ended Year
ended 31 December ended
31 December 2008 30 June
2009 2009
£m £m £m
Current tax 4.2 5.0 6.8
Deferred tax (0.1) 1.6 1.5
4.1 6.6 8.3
The taxation charge for the period is based on the estimated effective tax rate for the full year of 33.7% (2008: 34.1%).
There is a deferred tax liability at the period end of £98.8m (2008: £105.8m) which mainly relates to the recognition at fair value of biological assets and intangible assets arising on acquisition and a deferred tax asset of £16.1m (2008: £16.4m) which mainly relates to future tax deductions in respect of pension scheme liabilities, share scheme awards and financial instruments.
8. Dividends Six months Six months ended Year
ended 31 December ended
31 December 2008 30 June
2009 2009
£m £m £m
Amounts recognised as
distributions to equity
holders in the period:
Final dividend for the 12 - 5.9 5.9
month period ended 30 June
2008 of 10.0p per share
Final dividend for the 12 6.5 - -
month period ended 30 June
2009 of 11.0p per share
6.5 5.9 5.9
The final dividend for the 12 month period ended 30 June 2009 was approved at the company AGM on 12 November 2009 and paid on 8 January 2010.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
for the six months ended 31 december 2009
9. Fair value of biological assets Fair value of biological assets Bovine Porcine Total
£m £m £m
105.9 181.9
Balance at 1 July 2009 76.0
Increases due to purchases 1.8 16.6 18.4
Decreases attributable to sales - (55.4) (55.4)
Decrease due to harvest (11.6) (3.2) (14.8)
Changes in fair value less estimated sale costs 18.3 35.8 54.1
Effect of movements in exchange rates 2.2 2.9 5.1
Balance at 31 December 2009 116.6 72.7 189.3
Non current biological assets 116.6 41.8 158.4
Current biological assets - 30.9 30.9
Balance at 31 December 2009 116.6 72.7 189.3
Balance at 1 July 2008 84.4 66.9 151.3
Increases due to purchases 1.3 38.9 40.2
Decreases attributable to sales - (65.3) (65.3)
Decrease due to harvest (12.2) (3.4) (15.6)
Changes in fair value less estimated sale costs 13.4 30.3 43.7
Effect of movements in exchange rates 27.3 20.2 47.5
Balance at 31 December 2008 114.2 87.6 201.8
Non current biological assets 114.2 55.2 169.4
Current biological assets - 32.4 32.4
Balance at 31 December 2008 114.2 87.6 201.8
Balance at 1 July 2008 84.4 66.9 151.3
Increases due to purchases 3.6 76.6 80.2
Decreases attributable to sales - (128.1) (128.1)
Decrease due to harvest (23.4) (6.5) (29.9)
Changes in fair value less estimated sale costs 26.0 56.3 82.3
Effect of movements in exchange rates 15.3 10.8 26.1
Balance at 30 June 2009 105.9 76.0 181.9
Non current biological assets 105.9 48.0 153.9
Current biological assets - 28.0 28.0
Balance at 30 June 2009 105.9 76.0 181.9
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
9. Fair value of biological assets (continued)
Bovine biological assets include £3.4m (2009: £3.0m) representing the fair value of bulls owned by third parties but managed by the Group, net of expected future payments to such third parties.
The current market determined pre-tax rate used to discount expected future net cash flows from the sale of bull semen is the Group's weighted average cost of capital. This has been assessed as 8.0% (31 December 2008: 9.2%).
Porcine biological assets include £30.9m (2008: £48.0m) relating to the fair value of the retained interest in the genetics in respect of animals transferred to customers under royalty contracts. Total revenue in the period includes £27.9m (2008: £28.8) of revenue in respect of these contracts comprising £4.1m (2008: £6.3m) on initial transfer of animals to customers and £23.8m (2008: £22.5m) in respect of royalties received.
The aggregate gain arising during the period on initial recognition of biological assets in respect of multiplier purchases was £9.4m (31 December 2008: £13.0m).
Decreases attributable to sales during the period of £55.4m (2008: £65.3m) includes £22.6m (2008: £24.3m) in respect of the reduction in fair value of the retained interest in the genetics of animals sold under royalty contracts.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
9. Fair value of biological assets (continued)
Six months ended 31 December 2009
Bovine Porcine Total
£m £m £m
Net IAS 41 valuation movement in biological assets*
Changes in fair value of biological assets 18.3 35.8 54.1
Inventory transferred to cost of sales at fair value (10.6) (3.2) (13.8)
Biological assets transferred to cost of sales at - (39.4) (39.4)
fair value
7.7 (6.8) 0.9
Six months ended 31 December 2008
Bovine Porcine Total
£m £m £m
Net IAS 41 valuation movement in biological assets*
Changes in fair value of biological assets 13.4 30.3 43.7
Inventory transferred to cost of sales at fair value (8.1) (3.4) (11.5)
Biological assets transferred to cost of sales at - (26.7) (26.7)
fair value
5.3 0.2 5.5
Year ended 30 June 2009
Bovine Porcine Total
£m £m £m
Net IAS 41 valuation movement in biological assets*
Changes in fair value of biological assets 26.0 56.3 82.3
Inventory transferred to cost of sales at fair value (20.6) (6.5) (27.1)
Biological assets transferred to cost of sales at - (52.5) (52.5)
fair value
5.4 (2.7) 2.7
*This represents the difference between operating profit prepared under IAS 41 and operating profit prepared under historic cost accounting, which forms part of the reconciliation to adjusted operating profit.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
10. Joint ventures and associates
The Group's share of profit after tax in its equity accounted investees for the six months ended 31 December 2009 was £1.1m (31 December 2008: £1.7m).
2009 2008
£m £m
Balance at 1 July 5.3 4.7
Share of post tax joint venture profits retained 1.1 1.7
Dividend received - (1.1)
Effect of movements in exchange rates 0.3 (0.2)
Balance at 31 December 6.7 5.1
Summary financial information for equity accounted investees, adjusted for the percentage ownership held by the Group:
Revenues Movement in fair value of Expenses Operating profit
biological assets
Income statement £m £m £m £m
Six months ended 31 December 7.2 0.9 (6.3) 1.8
2009
Six months ended 31 December 16.8 0.2 (15.1) 1.9
2008
Year ended 30 June 2009 17.9 (0.1) (15.7) 2.1
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
11. Related parties Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. Transactions between the Group and its joint ventures and associates are described below:
Other related party transactions
Transaction value Balance outstanding
Six months ended 31 December 2009 Six months ended 31 Year 31 December 2009 31 December 30 June
December ended 2008 2009
2008 30 June
2009
Sale of goods to £m £m £m £m £m £m
Joint ventures and associates
2.6 3.9 1.2 - 0.4 0.1
All transactions and related outstanding balances with joint ventures and associates are based on an arm's length basis and are to be settled in cash within three months of the reporting date. None of the balances are secured.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
12. Earnings per share Six months Six months ended Year
ended 31 December ended
31 December 2008 30 June
Weighted average number of 2009 2009
ordinary shares
m m m
Weighted average number of 59.3 58.9 58.9
ordinary shares (basic)
Dilutive effect of share 0.8 0.9 0.9
options
Weighted average number of 60.1 59.8 59.8
ordinary shares for the
purpose of diluted earnings
per share
Six months Six months ended Year
ended 31 December ended
31 December 2008 30 June
2009 2009
(*restated)
Earnings per share from
continuing and total
operations
Basic earnings per share 15.0p 19.2p 30.4p
Diluted earnings per share 14.8p 18.9p 29.9p
Adjusted earnings per share
from continuing operations
Adjusted earnings per share 17.2p 19.0p 36.1p
Diluted adjusted earnings per 17.0p 18.8p 35.6p
share
Earnings per share measures are calculated on the weighted average number of ordinary shares in issue during the period. As in previous years, adjusted earnings per share have been shown, since the directors consider that this alternative measure gives a more comparable indication of the Group's underlying trading performance.
*Adjusted earnings for the six months ended 31 December 2008 has been restated to exclude £0.3m relating to the amortisation of non-acquired intangible assets.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
12. Earnings per share (CONTINUED)
Continuing and total operations
Basic earnings per share from continuing and total operations is calculated on the profit for the period of £8.9m (six months ended 31 December 2008: £11.3m; year ended 30 June 2009: £17.9m) divided by weighted average number of ordinary shares (basic and diluted) as calculated above.
Adjusted earnings per share is calculated on profit for the period before net IAS 41 valuation movement in biological assets, amortisation of acquired intangible assets, share based payment expense, exceptional items and other gains and losses after charging taxation associated with those profits, of £10.2m (six months ended 31 December 2008: £11.0m; year ended 30 June 2009: £21.3m), as follows:
Adjusted earnings from
continuing operations
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2009 2008 2009
(*restated)
£m £m £m
Profit before tax from 13.0 17.9 26.2
continuing operations
Add/(deduct):
Net IAS 41 valuation movements (0.9) (5.5) (2.7)
in biological assets
Amortisation of acquired 2.6 2.8 5.2
intangible assets
Share based payments 1.0 1.1 2.0
Exceptional write off of - - 0.8
unamortised arrangement fee
Environmental liability - 0.6 0.6
settlement
Net IAS 41 valuation movements (0.9) (0.2) 0.1
in biological assets in joint
venture and associates
Other gains and losses - - (0.4)
Profit before net IAS 41 14.8 16.7 31.8
valuation movement in
biological assets,
amortisation of acquired
intangible assets, share based
payments, exceptional items
and other gains and losses
Adjusted tax charge (4.6) (5.7) (10.5)
Profit before IAS 41 valuation 10.2 11.0 21.3
movement in biological assets,
amortisation of acquired
intangible assets, share based
payments, exceptional items
and other gains and losses,
after taxation
*Adjusted earnings for the six months ended 31 December 2008 has been restated to exclude £0.3m relating to the amortisation of non-acquired intangible assets.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
13. cash flow from operating activities Six months Six months ended Year
ended 31 December ended
31 December 2008 30 June
2009 2009
£m £m £m
(*restated)
Profit for the period 8.9 11.3 17.9
Adjustments for:
- Fair value adjustments on (0.9) (5.5) (2.7)
biological assets
- Amortisation of intangible 2.9 3.1 5.8
assets
- Share based payment expense 1.0 1.1 2.0
- Share of profits of (1.1) (1.7) (2.1)
associates
- Other gains and losses - - (0.4)
- Finance costs 4.7 3.8 9.0
- Income tax expense 4.1 6.6 8.3
- Loss on disposal of - - 1.2
property plant and equipment
- Depreciation of property 2.2 2.4 4.2
plant and equipment
Other movements in biological (0.3) - (4.6)
assets and harvested produce
Decrease in provisions (0.1) (1.7) (2.2)
Other (0.7) - (1.3)
Operating cash flows before 20.7 19.4 35.1
movement in working capital
Increase in inventories (0.8) (2.8) (1.1)
(Decrease)/increase in (3.6) (2.8) 1.1
receivables
Decrease in payables (3.5) (7.4) (6.9)
Cash generated by operations 12.8 6.4 28.2
Interest received 0.1 0.3 0.4
Interest and other finance (2.2) (3.1) (6.9)
costs paid
Cash flow from derivative (1.3) - (1.0)
financial instruments
Income taxes paid (2.1) (2.5) (6.6)
Net cash inflow from operating 7.3 1.1 14.1
activities
*Interest paid and interest received has been restated to be included within net cash flow from operating activities.
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
14. Employee benefits
Pension and medical plans
Obligation recognised in the consolidated financial statements
The Group provides employee benefits under various arrangements, including defined benefit and defined contribution pension plans, the details of which are disclosed in the most recent annual financial statements. Details of the total recognised defined benefit obligations are provided below:
31 December 31 December 30 June
2009 2008 2009
£m £m £m
Present value of unfunded obligations (6.4) (7.1) (6.3)
Present value of funded obligations (155.7) (124.8) (139.7)
Fair value of plan assets 131.9 113.5 112.0
Restrict recognition of asset (2.0) (4.1) (1.4)
Gross liability for defined benefit (32.2) (22.5) (35.4)
obligations
Included in the defined benefit obligations are obligations relating only to Genus' section and its share of any orphan assets and liabilities of the Milk Pension Fund, in which although managed on a sectionalised basis ultimate liabilities are joint and several. Further details of the Milk Pension Fund can be found in the Annual Report 2009.
Expense recognised in the consolidated interim income statement
The expense recognised in the consolidated interim income statement consists of the current service costs, interest on the obligation for employee benefits and the expected return on plan assets. For the six months ended 31 December 2009, the Group recognised an expense of £1.3m (six months ended 31 December 2008: £0.9m; year ended 30 June 2009: £1.8m).
The principal actuarial assumptions at the date of the most recent actuarial valuations (expressed as weighted averages) are:
31 December 31 December 30 June
2009 2008 2009
% % %
Discount rate 5.6 6.2 6.0
Expected return on plan assets 6.5 5.6 6.6
Future salary increases 4.5 3.8 3.8
Medical cost trend rate 7.4 8.0 7.4
Future pension increases 3.5 2.8 2.8
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For The Six Months Ended 31 December 2009
15. Borrowings and financial instruments Hedging of fluctuations in interest rates
The Group adopts a policy of ensuring that between 60 and 90 % of its exposure to changes in interest rates on borrowings is hedged. Interest rate swaps, denominated in sterling, euro and US dollars have been entered into to achieve an appropriate mix of fixed and floating rate exposure within the Group's policy. At 31 December 2009, approximately 79 % of borrowings were hedged with a fixed rate of interest of between 1.9% and 4.7%. The swaps mature as the related borrowings amortise over the next 1 to 3 years.
Borrowings
The Group has secured three year banking facilities of approximately £150m comprising a £110m multi-currency revolving credit facility and a US$60m revolving credit facility. These facilities expire in February 2012.
16. Other matters Contingencies
There have been no material changes to the Group's contingent liabilities relating to performance bonds and credit guarantees totalling £0.9m in the six months ended 31 December 2009 (31 December 2008: £1.2m), nor the Group's ongoing joint and several liability for the Milk Pension Fund, more fully described in the Annual Report 2009.
There have been no changes to any other contingent liabilities involving the Group in the six months ended 31 December 2009 which are expected to have, or have had, a material effect on the financial position or profitability of the Group.
Capital commitments
At 31 December 2009, no capital commitments have been contracted for (31 December 2008: £1.7m).
Seasonality
The Group has not historically been subject to significant seasonal trends with the exception of a higher use of working capital in the first half of the financial year.
RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
a) the condensed set of financial statements has been prepared in accordance with IAS 34;
b) the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of the principal risks and uncertainties for the remaining six months of the year); and
c) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and charges therein).
Neither the Company nor the directors accept any liability to any person in relation to the half-yearly financial report except to the extent that such liability could arise under English Law. Accordingly, any liability to a person who has demonstrated reliance on any untrue or misleading statement or omission shall be determined in accordance with section 90A of the Financial Services and Markets Act 2000.
By order of the Board
Chief Executive Finance Director
R K Wood J G Worby
24 February 2010
REPORT ON REVIEW OF CONDENSED SET OF FINANCIAL STATEMENTS OF GENUS PLC
INDEPENDENT REVIEW REPORT TO GENUS PLC
We have been engaged by the Company to review the Condensed Set of Financial Statements in the half-yearly financial report for the six months ended 31 December 2009 which comprises the Income Statement, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Cash Flow Statement and related notes 1 to 16. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The Condensed Set of Financial Statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the Condensed Set of Financial Statements in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the Condensed Set of Financial Statements in the half-yearly financial report for the six months ended 31 December 2009 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
Deloitte LLP
Chartered Accountants and Statutory Auditors
London, United Kingdom
24 February 2010
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR TIMBTMBJTTBM
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1 week to go till ex-div
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expect a steady rise, after all its dividend time soon
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You're welcome - we all need all the help we can get! That's why I find these bbs quite useful, as well as entertaining, at times!
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They have not been approved or issued by Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
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