Genus 2018 final results
Revenue of £470.3m increased 2% (6% in constant currency) with strong bovine revenues, up 8% (11% in constant currency), primarily from strong sexed semen sales, while porcine revenues were 1% lower (up 3% in constant currency)
Adjusted profit before tax up 4% to £58.5m (up 9% in constant currency), with a strong performance in Genus ABS, up 29% in constant currency, and continued growth of 5% in PIC in constant currency. Adjusted operating profit including joint ventures improved 10% in constant currency, or 12% before increased gene editing spending
Record adjusted basic earnings per share up 9% to 75.9p (up 15% in constant currency)
Statutory profit before tax down 81% to £7.8m, due principally to a reduction in the non-cash fair value of biological assets, however, statutory profit after tax increased by 21% to £41.6m as a result of non-cash deferred tax credits related to biological assets arising from US tax reforms
Statutory basic earnings per share up 30% to 69.7p, reflecting the biological asset reduction and non-cash deferred tax credits mentioned above
Solid free cash flow of £24.3m (2017: £25.4m), achieved alongside significant capital investments for long-term growth, with strong cash conversion2 of 101% (2017: 84%), while cash inflows from joint ventures were lower at £2.8m (2017: £8.3m) following a very strong prior year
Net debt to EBITDA of 1.4x (2017: 1.5x), with net debt at 30 June 2018 of £108.5m (2017: £111.6m) after acquisitions and investments of £1.8m (2017: £30.0m)
Reflecting the Board's continuing confidence in the Group's prospects, it is recommending a final dividend of 17.9p per share, to give a total dividend of 26.0p per share, up 10% and well covered by adjusted earnings at 2.9 times (2017: 2.9 times)
