REG - Genus - Interim Results
27/02/2025 07:15
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RNS Number : 6125Y Genus PLC 27 February 2025
For immediate release 27 February 2025
Genus plc
Interim results for the six months ended 31 December 2024
STRONG FIRST HALF PERFORMANCE, CONTINUED MOMENTUM EXPECTED
Adjusted results(1) Statutory results
Actual currency Constant currency change(2) Actual currency
Six months ended 31 December 2024 2023 Change 2024 2023 Change
£m £m % % £m £m %
Revenue 336.4 333.6 1 6 336.4 333.6 1
Operating profit 40.3 33.0 22 33 12.5 21.3 (41)
Operating profit inc JVs 45.2 38.1 19 31
Profit before tax 35.4 29.2 21 38 3.3 14.3 (77)
Cash generated by operations 46.1 12.0 284 n/a(3) 44.6 22.8 96
Free cash flow(1,4) 10.3 (12.2) n/a(3) n/a(3)
Basic earnings per share (pence) 39.8 33.3 20 36 2.4 20.6 (88)
Dividend per share (pence) 10.3 10.3 -
Strong first half financial performance
· Adjusted operating profit including joint ventures increased 19% to
£45.2m in actual currency, driven by broad-based growth in PIC and Value
Acceleration Programme ("VAP") actions benefitting ABS
· Adjusted profit before tax (PBT) increased 21% to £35.4m in actual
currency (38% increase in constant currency)
· Statutory PBT of £3.3m (FY24 H1: £14.3m) was impacted by a £16.0m
decrease in the non-cash fair value IAS41 valuation of biological assets,
principally bovine
· Very strong cash generated by operations of £46.1m (FY24H1: £12m)
and conversion(1) of 102% (FY24 H1(4): 31%) resulting in a free cash inflow(1)
of £10.3m (FY24 H1: £12.2m outflow) which includes expected exceptional cash
outflows of £15.2m (FY24 H1: £6.1m)
· Net debt(1) of £261.4m resulted in a net debt to adjusted EBITDA
ratio of 2.0x(1) (30 June 2024: 2.0x), as expected
· Adjusted earnings per share increased 20% and interim dividend
maintained at 10.3p per share with 2.2x(1) adjusted earnings cover
Substantial strategic progress achieved
· Porcine: Continued momentum in China with 7 new royalty customer wins
(now 20 new royalty customers signed over the last eighteen months)
· PRRS(6) Resistant Pig ("PRP"): FDA approval expected in calendar year
2025 with significant milestones achieved to date; the U.S. Food and Drug
Administration ("FDA") conducted planned site inspections and Genus has
responded to the FDA's feedback; the FDA has accepted Genus's Environmental
Assessment submission
· Bovine: VAP Phase 2 initiatives actioned and on track for £10m
annualised adjusted operating profit benefit; VAP Phase 3 planning underway;
genetic supply chain strengthened through Genus taking 100% control of its De
Novo joint venture via the acquisition of minority interests
Divisional headlines
· PIC - Strong trading across all regions, continuing momentum of new
royalty customer wins in China
o Strategically important royalty revenue growth of 5%(2) and total volumes
up 9%
o Adjusted operating profit including joint ventures increased by 16%(2)
driven by strong growth in the Americas and Asia with Europe maintaining its
performance relative to a strong prior year period
o More stable trading environment in China; continued momentum with 7 new
royalty customer wins (now 20 new royalty customers signed over the last
eighteen months) and a supply chain Joint Venture signed with cornerstone
customers for PIC's LuoDian farm. PIC China has now secured royalty agreements
with 3 of the Top 5 producers in China for modest initial volumes
· ABS - VAP initiatives delivering significant adjusted operating
profit and cash flow improvements
o Volumes increased 5% with sexed volume up 13%, conventional dairy volume
up 7% and beef volume down 4%
o Significant improvement in adjusted operating profit to £8.6m (2024 H1:
£7.3m) driven by benefits from VAP Phase 1 and 2 initiatives of £6.3m,
partially offset by lower profit in ABS China, costs relating to aged
inventory and adverse impact of FX translation
o VAP Phase 2 initiatives actioned and now expected to deliver £6.5m of
in-year benefit (FY25 H1: £2.5m) and £10m of annualised benefit
o Genetic supply chain strengthened through the strategic acquisition of
remaining non-controlling interest in De Novo on 19 September 2024 with £2.6m
paid in the period and £10.6m of deferred consideration payable in equal
instalments over four years, finalising 1 July 2029
Outlook in-line with market expectations
· Market conditions are stable albeit caution remains around potential
geopolitical-driven market volatility
· Second half PIC adjusted operating profit in constant currency is
expected to grow year on year albeit at a slower pace than the first half as a
result of planned increases in PRP costs and higher supply chain costs in PIC
China
· ABS adjusted operating profit growth in constant currency expected to
increase in the second half primarily due to VAP Phase 2 initiatives
· Currency headwinds of approximately £8m to £9m expected in FY25 if
current exchange rates continue throughout the fiscal year
· On 15 January 2025, Genus's Board announced an increase to its
expectation for FY25 Group adjusted profit before tax in actual currency.
Market expectations(5) are now in-line with this view
Commenting on the performance and outlook, Jorgen Kokke, Chief Executive,
said:
"Genus achieved a strong first half with broad-based growth across PIC and a
significant improvement in ABS profitability. We are particularly pleased to
have achieved very strong cash generation in the period through significantly
enhanced working capital management and disciplined investments in the
business.
We also made substantial progress in relation to our strategic priorities. PIC
China won a further seven new royalty customers with 20 having now been won
over the last eighteen months. Post-period end, the FDA conducted planned site
inspections of two PRP facilities. We have responded to the FDA's feedback and
continue to expect FDA approval for PRP in calendar year 2025. Within ABS,
Phase 2 of the Value Acceleration Programme is on track and Phase 3 planning
has commenced to accelerate growth. As a result, we look forward to the second
half with confidence."
Results presentation today
Management is hosting an in-person results presentation and Q&A session
today at 08:30am at Burson Buchanan's London offices (107 Cheapside, London,
EC2V 6DN). Those unable to attend in person can also join remotely. Please
contact Jesse McNab at Burson Buchanan for details: genus@buchanan.uk.com
Enquiries:
Genus plc (Jorgen Kokke, Chief Executive Officer; Alison Henriksen, Chief Tel: 01256 345970
Financial Officer / Anand Date, Investor Relations & Sustainability
Director)
Burson Buchanan (Charles Ryland / Toto Berger / Sophie Wills / Verity Parker) Tel: 0207 4665000
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 85 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. The
PRP is a market leading innovation in gene editing, which Genus is looking to
commercialise in the porcine industry once regulatory approval is gained.
Headquartered in Basingstoke, United Kingdom, Genus companies operate in over
24 countries on six continents, with research laboratories located in Madison,
Wisconsin, USA.
(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 2024 at the average exchange
rates applied to adjusted operating profit for the year ended 30 June 2024
(3) n/a = not applicable
(4) Cash conversion and Free cash flow definition has changed from that
reported in FY24 H1 announcement. Please refer to the FY24 full year investor
presentation for details. The FY24 H1 comparative has been restated for the
new definitions
(5) The company compiled consensus range for FY25 adjusted profit before tax
in actual currency is £66.9m to £70.0m with an average of £67.7m. This is
based upon 10 analyst estimates
(6) Porcine Reproductive and Respiratory Syndrome
Group Performance
Group revenue increased by 1% (6% increase in constant currency) to £336.4m
(FY24 H1: £333.6m). PIC revenue increased by 3% (8% increase in constant
currency) with strategically important royalty revenue increasing 5% in
constant currency and total volumes growing 9%. ABS revenue decreased by 2%
(3% increase in constant currency) with volume increasing 5%. Higher margin
sexed volume grew 13% with conventional dairy volume also growing 7%, albeit
driven by growth in India at low price points. Beef volume declined 4%
although robust price increases were achieved.
Adjusted operating profit including joint ventures increased to £45.2m (FY24
H1: £38.1m), growth of 19% (31% increase in constant currency). PIC adjusted
operating profit increased to £55.4m (FY24 H1: £51.4m), growth of 8% (16%
increase in constant currency). This growth was broad-based apart from PIC
Europe which performed well but where adjusted operating profit was lower than
the prior year against a strong comparator. In ABS, adjusted operating profit
increased to £8.6m (FY24 H1: £7.3m), growth of 18% (38% increase in constant
currency). VAP initiatives were the major driver of ABS's improved adjusted
operating profit and contributed £6.3m in the period comprising £3.8m of
annualising Phase 1 initiatives and £2.5m of in-year benefit from Phase 2
initiatives. R&D investment decreased as planned to £7.9m (FY24 H1:
£11.3m), a decrease of 30% (28% decrease in constant currency), and Group
Central costs increased to £10.9m (FY24 H1: £9.3m), principally due to an
increase in performance based remuneration accruals. Genus's share of adjusted
joint venture operating profits was £4.8m (FY24 H1: £4.7m).
Adjusted profit before tax of £35.4m (FY24 H1: £29.2m), was an increase of
21% (38% increase in constant currency). Net finance costs were higher at
£9.8m (FY24 H1: £8.9m) with £0.5m due to higher interest rates and £0.4m
due to increased average borrowings year on year. The effect of exchange rate
movements on the translation of overseas profits decreased the Group's
adjusted profit before tax by £4.8m compared with the prior year.
On a statutory basis, profit before tax was £3.3m (FY24 H1: £14.3m). The
difference between statutory and adjusted profit before tax was primarily
driven by a £16.0m non-cash decrease (FY24 H1: £2.6m increase) in net IAS 41
biological assets fair value and exceptional costs of £6.0m, of which £3.7m
relates to ABS restructuring under its VAP programme.
The tax charge on adjusted profits for the period was £9.2m (FY24 H1:
£7.3m), which represented a tax rate on adjusted profit before tax of 26%
(FY24 H1: 25%). The adjusted tax rate increased due to a change in profit mix
to higher tax rate jurisdictions.
Adjusted earnings per share was 39.8p (FY24 H1: 33.3p) an increase of 20% (36%
increase in constant currency). Statutory earnings per share was 2.4p (FY24
H1: 20.6p).
Free cash flow improved significantly to a £10.3m inflow (FY24 H1: £12.2m
outflow). Higher EBITDA and strong operating cash conversion was augmented by
significantly improved inventory and debtor management in bovine, resulting in
a working capital inflow of £3.0m (FY24 H1: £16.9m outflow), lower capital
expenditure of £7.7m (FY24 H1: £14.4m) and no cash outflow in relation to
biological assets (FY24 H1: £7.2m outflow, primarily due to the restocking of
PIC's Aurora farm). Cash conversion in the period was 102% (FY24 H1: 31%).
Net debt increased to £261.4m (FY24: £248.7m) with a net debt to adjusted
EBITDA ratio of 2.0x (30 June 2024: 2.0x). Higher free cash flows and a £7.5m
improvement in net debt through the LuoDian joint venture agreement were
offset by payment of the Group's final dividend and acquisition of the
remaining De Novo non-controlling interest which included a £2.6m cash
outflow and a non-cash increase in net debt of £10.6m in relation to deferred
consideration.
The Board has declared an unchanged interim dividend of 10.3 pence per share,
which is payable on 4 April 2025 to shareholders on the register at 7 March
2025.
Strategic Priorities
We continue to focus on the same strategic priorities to improve profitability
and guide our progress.
1. Continued growth in porcine, with more stable growth in China
PIC continued to demonstrate the strength of its industry-leading genetics,
supply chain and customer care. Performance outside China was strong and in
China, our go-to-market focus on winning new royalty customers resulted in 7
new customers being signed in the period (now 20 new royalty customers signed
in the last eighteen months). Royalty revenue from new royalty customers
usually ramps up two years post stocking and reaches a steady state of royalty
revenue approximately four years post stocking. We therefore expect strong PIC
China royalty revenue growth in FY26 and we expect this new royalty business
to drive PIC China's long-term growth and reduced volatility over time.
2. Deliver successful commercialisation of our PRP gene edit and deliver
attractive returns from R&D
Our near-term focus is achieving PRP regulatory approvals. In the medium-term,
we continue to be excited by the opportunities in disease resistance and
reproductive technology.
We continue to work closely with regulatory authorities to secure approvals
for PRP commercialisation. In the year to date we submitted our Validation
Report and Durability Plan ("VRDP") and Environmental Assessment ("EA") to the
FDA. Post period end, the FDA accepted our EA and conducted site inspections
of our Waunakee genomics laboratory and Bluegrass PRP farm. We have responded
to the FDA's site inspection feedback and we continue to expect FDA approval
for PRP in calendar year 2025. Our engagement with multiple other
international regulatory agencies also continues to make good progress.
3. Drive greater value from bovine
We initiated VAP to accelerate Bovine's growth and structurally improve
margins, ROIC and cash generation. VAP Phase 2 is on track to deliver £6.5m
of in-year benefit to adjusted operating profit and £10.0m of annualised
benefit, as expected. The positive outcomes of VAP are becoming increasingly
visible; on stable volumes, ABS's adjusted operating profit increased by 38%
in constant currency and bovine cash generation improved significantly
compared with the prior year. We are focused on driving further value creation
through a return to top-line growth via improved go-to-market productivity and
commercial excellence.
People
We continue to nurture a culture in which all of our employees around the
world can perform to their best and fulfil their potential. During the period,
we refreshed our company values, following input from a wide range of
colleagues in different parts of the business. We launched these values
through more than 50 in-person and online launch events, involving more than
3,000 people, gaining very positive feedback. We are now embedding the values
and associated behaviours across our company, including touchpoints with
prospective employees so we can ensure cultural alignment as we attract and
recruit new colleagues.
Genus PIC - Operating Review
Actual currency Constant currency
Six months ended 31 December 2024 2023 Change Change
£m £m % %
Revenue 181.3 175.8 3 8
Adjusted operating profit pre-product development 67.8 66.8 2 7
Porcine product development expense 16.9 19.9 (15) (12)
Adjusted operating profit exc JV 50.9 46.9 9 15
Adjusted operating profit inc JV 55.4 51.4 8 16
Adjusted operating margin exc JV 28.1% 26.7% 1.4pts 1.7pts
Market conditions for pork producers were generally benign, supported in
particular by lower feed costs. In North America, pork producer profitability
was stronger than industry forecasters had expected earlier in calendar year
2024. The majority of pork producers operated at positive margins in Latin
America and Europe. Pork prices in China remained at levels that supported
aggregate industry profitability.
In the period, PIC revenue increased 8%* driven by a 9% increase in volumes.
Strategically important royalty revenue increased 5%* with growth in every
trading region except Europe, which was unchanged against a strong prior year
comparator. Adjusted operating profit including JVs increased 16%* due to
strong growth in PIC's Americas and Asia trading regions and robust
performance in Europe. Product development costs decreased £3.0m primarily
due to the phasing of PRP commercialisation costs and favourable commodity
pricing positively impacting production costs.
Six months ended 31 December 2024 Revenue Royalty Revenue Volumes (MPEs) Adjusted Operating Profit(+)
Actual Currency
PIC Total £181.3m (+3%) £87.3m (+0.2%) 108.3m (+9%) £55.4m (+8%)
Constant Currency
PIC Total +8% +5% n/a +16%
NAM +7% +5% +6% +5%
LATAM +16% +11% +14% +13%
EMEA -6% +0% +5% -3%
ASIA +27% +2% +15% +28%
Asia ex-China +4% +23% +32% +3%
NB: Growth rates compared with the same period last year
(+) Including JVs
Regional Trading Commentary
North America achieved an adjusted operating profit increase of 5%*, supported
by a 5%* increase in royalty revenue. Total revenue increased by 7%* on strong
volume growth of 6%. Pork producers made consistent profits over the period as
pork prices proved to be stronger than the industry had expected earlier in
the calendar year. This resulted in a stabilisation of the breeding herd
compared with prior period declines. PIC continued to win customer wallet
share over the period.
Latin America had a very strong first half, achieving adjusted operating
profit growth of 13%* supported by a very strong 11%* increase in royalty
revenue. Royalty growth was broad-based and producers across the region
generated good margins in the period. Mexico and Colombia were stand-out
performers within PIC LATAM.
Europe maintained its performance against a strong prior year, with adjusted
operating profit decreasing 3%* on unchanged royalty revenue growth*.
Producers were generally profitable over the period albeit the aggregate
breeding herd continued to contract due to economic, geopolitical and
regulatory challenges. PIC Europe was particularly impacted by lower animal
sales and customer's health challenges within their herds, offset by continued
progress in Germany and Spain.
Asia adjusted operating profit increased by 28%* in the period with royalty
revenue growing 2%*. Excluding China, adjusted operating profit grew 3%*. In
China, adjusted operating profit increased 59%* driven predominantly by lower
supply chain costs as a result of increased by-product revenue. Pork prices in
China remained at levels that supported aggregate industry profitability.
Producers, however, continue to be cautious after several years of low
profitability and disease challenge. PIC China's commercial focus on building
recurring royalty revenue continued to gain strong traction with a further 7
new royalty customers signed in the period (now 20 new customers signed in the
last eighteen months). PIC China has now secured royalty agreements with 3 of
the Top 5 producers in China for modest initial volumes within their systems.
* Constant currency growth rate compared with the same period last year
Genus ABS - Operating Review
Actual currency Constant currency
Six months ended 31 December 2024 2023 Change Change
£m £m % %
Revenue 154.0 157.8 (2) 3
Adjusted operating profit pre-product development 19.6 19.0 3 12
Bovine product development expense 11.0 11.7 (6) (3)
Adjusted operating profit 8.6 7.3 18 38
Adjusted operating margin 5.6% 4.6% 1.0pts 1.6pts
Bovine markets were varied around the world. Producers in Europe and North
America enjoyed a stronger period for profitability whereas those in Brazil
and China experienced challenging markets. Global milk prices were generally
on a stronger footing with beef prices continuing to remain at elevated
levels.
ABS achieved a volume increase of 5% in the period with sexed volume
increasing 13%, beef volumes decreasing 4% and conventional dairy volumes
increased 7%. ABS revenue increased by 3%* and adjusted operating profit
increased by 38%*, a margin improvement of 1.6pts in constant currency,
compared with the prior year. Spend on bovine product development decreased
3%* as efficiency savings were realised from the newly combined management of
the dairy and beef product development programmes. During the period ABS
acquired the remaining non-controlling interest in its De Novo Joint Venture
with £2.6m paid on completion and £10.6m deferred over four years,
finalising 1 July 2029. This acquisition gives ABS full control of its
internal Holstein programme and there are encouraging trends in the
performance of the herd. The commercial launch of Sexcel Male Beef also
progressed well over the half.
In FY24, Management initiated a comprehensive Value Acceleration Programme
("VAP") to accelerate Bovine's growth and structurally improve margins, ROIC
and cash generation. VAP Phase 1 was completed in FY24, delivering £7.3m of
profit benefit in FY24 and a further £3.8m of benefit in the first half of
FY25. As a result, VAP Phase 1 delivered a total annualised profit benefit of
£11m, outperforming its target of £10m.
VAP Phase 2 commenced in FY25 and is targeting a further £10m of annualised
profit benefit with approximately £5m to be delivered in-year. Actions taken
in the first half of FY25 include select globalisation of specific functions
within ABS and increased focus on product allocation excellence. In the first
half of FY25 these initiatives delivered £2.5m and ABS now expects £6.5m of
in-year benefit to be delivered in FY25. Exceptional restructuring costs of
£3.7m associated with VAP Phase 2 were recognised in the first half.
Six months ended 31 December 2024 Revenue Sexed Volume (m) Volume (m) Adjusted Operating Profit
Actual Currency
ABS Total £154.0 (-2%) +13% 13.7m (+5%) £8.6m (+18%)
Constant Currency
ABS Total +3% n/a n/a +38%
NAM +5% +22% +7% +25%
LATAM +7% +17% +0% +1%
EMEA +5% +1% -2% +34%
ASIA -10% +15% +14% -22%
NB: Growth rates compared with the same period last year
Regional Trading Commentary
North America volumes increased 7%, comprising a 22% increase in sexed volume,
a 1% decrease in beef volume and a 12% decrease in dairy conventional volume.
Dairy producers enjoyed favourable market conditions in the period with beef
prices also remaining strong. Adjusted operating profit increased 25%* driven
predominantly by strong VAP benefits. IntelliGen third party business also
performed well driven by volume increases from existing customers and new
customer wins.
Latin America volume was stable , with sexed volume growth of 17%, a 7%
increase in dairy conventional volume and a 5% decrease in beef volume. Strong
pricing initiatives helped drive a 7% increase in revenue. Better market
conditions for dairy producers drove greater adoption of sexed genetics and
stabilisation of the beef cycle stopped volume declines for producers albeit
demand for beef genetics remains subdued. Adjusted operating profit was
unchanged in constant currency due primarily to a decline in high contribution
margin embryo volumes.
EMEA volume decreased 2%, comprising a 1% increase in sexed volume, a 1%
decrease in beef volume and a 9% decrease in dairy conventional volume. Dairy
producers were generally profitable over the period but farmers remain
cautious as farm rationalisation continues due to relatively strong cow
prices. Adjusted operating profit grew 34%* driven predominantly by strong VAP
benefits. IntelliGen EMEA also achieved strong adjusted operating profit
growth as next generation machines were deployed to existing customers.
Asia volume increased 14%, comprising a 15% increase in sexed volume, a 14%
decrease in beef volume and 15% increase in dairy conventional volume. Volume
growth in India was particularly strong albeit at relatively low price points,
with sexed volume growing 37% and conventional dairy volume growing 21% on
stronger product availability and phasing of customer orders. The dairy sector
in China continued to be challenged with industry estimates suggesting that
milk production contracted 9% year on year in the fourth quarter of 2024. The
majority of Chinese dairy production is still unprofitable at current price
levels. Weak Chinese dairy consumption also impacted dairy producers in
Australia. Adjusted operating profit in Asia decreased 22%*.
* Constant currency growth rate compared with the same period last year
Research and Development - Operating Review
Actual currency Constant currency
Six months ended 31 December 2024 2023 Change Change
£m £m % %
Gene editing 2.0 3.2 (39) (37)
Other research and development 5.9 8.1 (26) (24)
Net expenditure in R&D 7.9 11.3 (30) (28)
Net expenditure on R&D decreased 28%* as planned as efficiency initiatives
actioned in FY24 annualised in the first half of FY25. For the full year, the
impact of the initiatives is a saving of £5m, and net expenditure on R&D
is expected to be below 3% of group revenue. R&D's key near-term focus is
achieving PRP regulatory approvals. In the medium-term, R&D continues to
explore opportunities in disease resistance and reproductive technology.
* Constant currency growth rate compared with the same period last year
Principal Risks and Uncertainties
Genus's approach to risk management is to identify, evaluate and prioritise
risks and uncertainties so we can take action to mitigate them. The Genus plc
Annual Report 2024 (a copy of which is available on the Genus plc website at
www.genusplc.com) sets out on pages 52-55 the principal risks and
uncertainties that might impact the performance of the Group.
Some of these risks relate to our business operations, while others relate to
future commercial exploitation of our leading-edge R&D programmes and
IntelliGen technology. We are also exposed to global economic and political
risks such as trade restrictions attributed to the ongoing Russia-Ukraine
conflict, and disease risks (e.g. Avian Flu). Additionally, we monitor
evolving risks such as the continued geopolitical tensions across the globe,
US President Trump's imposition of trade tariffs, impacts of climate change,
and cyber security.
There has been no material change to the principal risks that might affect the
performance of the Group in the current financial year.
GENUS PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2024
Note Six months Six months Year
ended ended ended
31 December 2024 31 December 30 June
£m 2023 2024
£m
£m
REVENUE 2 336.4 333.6 668.8
Adjusted operating profit 2 40.3 33.0 67.0
Adjusting items:
- Net IAS 41 valuation movement on biological assets 8 (16.0) 2.6 (23.2)
- Amortisation of acquired intangible assets 7 (2.9) (2.9) (5.8)
- Share-based payment expense (2.9) (3.9) (7.0)
(21.8) (4.2) (36.0)
Exceptional items (net) 3 (6.0) (7.5) (24.6)
Total adjusting items (27.8) (11.7) (60.6)
OPERATING PROFIT 12.5 21.3 6.4
Share of post-tax profit of joint ventures and associates retained 10 5.1 5.3 19.1
Other gains and losses 20 (4.5) (3.4) (1.7)
Finance costs 4 (11.3) (11.0) (22.2)
Finance income 4 1.5 2.1 3.9
PROFIT BEFORE TAX 3.3 14.3 5.5
Taxation 5 (1.8) (4.0) (3.1)
PROFIT FOR THE PERIOD 1.5 10.3 2.4
ATTRIBUTABLE TO:
Owners of the Company 1.6 13.5 7.9
Non-controlling interest 19 (0.1) (3.2) (5.5)
1.5 10.3 2.4
EARNINGS PER SHARE
Basic earnings per share 14 2.4p 20.6p 12.0p
Diluted earnings per share 14 2.4p 20.4p 11.9p
Alternative Performance Measures
Adjusted operating profit 40.3 33.0 67.0
Adjusted operating loss attributable to non-controlling interest 0.1 0.4 0.9
Pre-tax share of profits from joint ventures and associates excluding net IAS 4.8 4.7 10.2
41 valuation movement
Adjusted operating profit including joint ventures and associates 45.2 38.1 78.1
Net finance costs 4 (9.8) (8.9) (18.3)
Adjusted profit before tax 35.4 29.2 59.8
Adjusted earnings per share
Basic adjusted earnings per share 14 39.8p 33.3p 65.5p
Diluted adjusted earnings per share 14 39.4p 33.1p 65.0p
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. For more information on APMs, see APM Glossary.
GENUS PLC
CONDENSED CONSOLIDATED Statement of Comprehensive Income
For the six months ended 31 December 2024
( ) Year ended
Six months ended Six months ended 30 June 2024
31 December 2024 31 December 2023
£m £m £m £m £m £m
PROFIT FOR THE PERIOD 1.5 10.3 2.4
Items that may be reclassified subsequently to profit or loss
Foreign exchange translation differences (18.9) (2.1) (16.0)
Fair value movement on net investment hedges 0.7 (0.4) 0.4
Fair value movement on cash flow hedges (0.5) (1.3) (1.6)
Tax relating to components of other comprehensive expense/(income) 0.9 0.3 (0.1)
(17.8) (3.5) (17.3)
Items that may not be reclassified subsequently to profit or loss
Actuarial loss on retirement benefit obligations 0.7 (9.0) (6.0)
Movement on pension asset recognition restriction (0.7) 9.1 3.9
Release of additional pension liability - - 2.1
Gain/(loss) on equity instruments measured at fair value - 0.2 (2.8)
Tax relating to components of other comprehensive expense/(income) - - (0.1)
- 0.3 (2.9)
OTHER COMPREHENSIVE EXPENSE FOR THE PERIOD (17.8) (3.2) (20.2)
TOTAL COMPREHENSIVE (EXPENSE)/INCOME FOR THE PERIOD (16.3) 7.1 (17.8)
ATTRIBUTABLE TO:
Owners of the Company (16.2) 10.3 (12.3)
Non-controlling interest (0.1) (3.2) (5.5)
(16.3) 7.1 (17.8)
GENUS PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2024
Note Called up Share premium account £m Own shares Translation reserve Hedging reserve Retained earnings £m Total Non- Total equity
share capital
£m
£m
£m
£m
controlling interest
£m
£m
£m
BALANCE AT 30 JUNE 2023 6.6 179.1 (0.1) 26.7 2.0 360.6 574.9 (7.7) 567.2
Foreign exchange translation differences, net of tax - - - (16.6) - - (16.6) - (16.6)
Fair value movement on net investment hedges, net of tax - - - 0.4 - - 0.4 - 0.4
Fair value movement on cash flow hedges, net of tax - - - - (1.1) - (1.1) - (1.1)
Loss on equity instruments measured at fair value, net of tax - - - - - (2.8) (2.8) - (2.8)
Actuarial loss on retirement benefit obligations, net of tax - - - - - (4.6) (4.6) - (4.6)
Movement on pension asset recognition restriction, net of tax - - - - - 2.9 2.9 - 2.9
Recognition of additional pension liability, net of tax - - - - - 1.6 1.6 - 1.6
Other comprehensive (expense)/income for the year - - - (16.2) (1.1) (2.9) (20.2) - (20.2)
Profit/(loss) for the year - - - - - 7.9 7.9 (5.5) 2.4
Total comprehensive income/(expense) for the year - - - (16.2) (1.1) 5.0 (12.3) (5.5) (17.8)
Recognition of share-based payments, net of tax - - - - - 6.6 6.6 - 6.6
Dividends 6 - - - - - (21.0) (21.0) - (21.0)
Adjustment arising from change in non-controlling interest and written put - - - - - - - 8.9 8.9
option
BALANCE AT 30 JUNE 2024 6.6 179.1 (0.1) 10.5 0.9 351.2 548.2 (4.3) 543.9
Foreign exchange translation differences, net of tax - - - (17.8) - - (17.8) (0.2) (18.0)
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 - - - - (0.4) - (0.4) - (0.4)
Actuarial losses on retirement benefit obligations, net of tax - - - - - 0.5 0.5 - 0.5
Movement on pension asset recognition restriction, net of tax - - - - - (0.5) (0.5) - (0.5)
Other comprehensive expense for the period - - - (17.2) (0.4) - (17.6) (0.2) (17.8)
Profit/(loss) for the period - - - - - 1.6 1.6 (0.1) 1.5
Total comprehensive (expense)/income for the period - - - (17.2) (0.4) 1.6 (16.0) (0.3) (16.3)
Recognition of share-based payments, net of tax - - - - - 3.1 3.1 - 3.1
Dividends 6 - - - - - (14.3) (14.3) - (14.3)
Adjustment arising from change in non-controlling interest and written put 19 - - - - - (4.4) (4.4) 4.4 -
option
BALANCE AT 31 DECEMBER 2024 6.6 179.1 (0.1) (6.7) 0.5 337.2 516.6 (0.2) 516.4
Note Called up Share premium account £m Own shares Translation reserve Hedging reserve Retained earnings £m Total Non- Total equity
share capital
£m
£m
£m
£m
controlling interest
£m
£m
£m
BALANCE AT 30 JUNE 2023 6.6 179.1 (0.1) 26.7 2.0 360.6 574.9 (7.7) 567.2
Foreign exchange translation differences, net of tax - - - (2.3) - - (2.3) 0.1 (2.2)
Fair value movement on net investment hedges, net of tax - - - (0.3) - - (0.3) - (0.3)
Fair value movement on cash flow hedges, net of tax - - - - (1.0) - (1.0) - (1.0)
Gain on equity instruments measured at fair value, net of tax - - - - - 0.2 0.2 - 0.2
Actuarial losses on retirement benefit obligations, net of tax - - - - - (6.8) (6.8) - (6.8)
Movement on pension asset recognition restriction, net of tax - - - - - 6.9 6.9 - 6.9
Other comprehensive expense for the period - - - (2.6) (1.0) 0.3 (3.3) 0.1 (3.2)
Profit/(loss) for the period - - - - - 13.5 13.5 (3.2) 10.3
Total comprehensive income for the period - - - (2.6) (1.0) 13.8 10.2 (3.1) 7.1
Recognition of share-based payments, net of tax - - - - - 3.9 3.9 - 3.9
Dividends 6 - - - - - (14.2) (14.2) - (14.2)
Adjustment arising from change in non-controlling interest and written put 19 - - - - - - - 8.9 8.9
option
BALANCE AT 31 DECEMBER 2023 6.6 179.1 (0.1) 24.1 1.0 364.1 574.8 (1.9) 572.9
GENUS PLC
CONDENSED CONSOLIDATED BALANCE SHEET
As at 31 December 2024
Note 31 December 31 December 30 June
2024 2023 2024
£m
£m
£m
ASSETS
Goodwill 109.4 111.9 110.3
Other intangible assets 7 61.0 67.5 65.4
Biological assets 8 276.8 319.3 297.4
Property, plant and equipment 9 169.6 190.2 182.0
Interests in joint ventures and associates 10 63.0 53.1 60.5
Other investments 3.6 4.2 1.1
Derivative financial assets 17 0.6 1.1 1.2
Other receivables 12 11.3 10.2 11.8
Deferred tax assets 28.9 19.0 28.1
TOTAL NON-CURRENT ASSETS 724.2 776.5 757.8
Inventories 11 51.8 65.6 57.1
Biological assets 8 30.1 31.0 32.3
Trade and other receivables 12 128.4 134.4 135.2
Cash and cash equivalents 47.4 42.0 42.5
Income tax receivable 2.9 3.2 2.1
Derivative financial assets 17 1.1 1.2 1.9
TOTAL CURRENT ASSETS 261.7 277.4 271.1
TOTAL ASSETS 985.9 1053.9 1,028.9
LIABILITIES
Trade and other payables 13 (111.0) (105.3) (123.2)
Interest-bearing loans and borrowings (4.0) (7.0) (4.9)
Provisions (0.7) (1.9) (1.0)
Deferred consideration (2.8) (0.6) (0.6)
Obligations under leases (12.9) (11.5) (14.0)
Tax liabilities (2.8) (1.0) (5.2)
Derivative financial liabilities 17 (0.8) (1.6) (1.7)
TOTAL CURRENT LIABILITIES (135.0) (128.9) (150.6)
Trade and other payables 13 - - (4.2)
Interest-bearing loans and borrowings (244.6) (226.2) (228.2)
Retirement benefit obligations 16 (6.5) (6.6) (6.6)
Provisions (0.3) (10.3) (0.4)
Deferred consideration (8.6) (0.6) (0.2)
Deferred tax liabilities (37.3) (54.2) (44.4)
Derivative financial liabilities 17 (1.1) (6.8) (6.3)
Obligations under leases (36.1) (47.4) (44.1)
TOTAL NON-CURRENT LIABILITIES (334.5) (352.1) (334.4)
TOTAL LIABILITIES (469.5) (481.0) (485.0)
NET ASSETS 516.4 572.9 543.9
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 (6.7) 24.1 10.5
Hedging reserve 0.5 1.0 0.9
Retained earnings 337.2 364.1 351.2
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 516.6 574.8 548.2
Non-controlling interest 0.3 3.6 1.2
Put option over non-controlling interest (0.5) (5.5) (5.5)
TOTAL NON-CONTROLLING INTEREST 19 (0.2) (1.9) (4.3)
TOTAL EQUITY 516.4 572.9 543.9
GENUS PLC
Condensed consolidated Group Statement of Cash Flows
For the six months ended 31 December 2024
Note Six months Year
Six months ended ended
ended 31 December 30 June
31 December 2023 2024
£m
£m
2024
£m
NET CASH FLOW FROM OPERATING ACTIVITIES 15 25.5 6.0 29.8
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends received from joint ventures and associates - 4.5 4.7
Joint venture and associate loan repayment/(investment) 0.1 - (2.2)
Deferred consideration paid (0.6) - -
Acquisition of joint venture and associate - (1.2) -
Acquisition of controlling interest in Xelect Limited - (2.9) (2.9)
Sale of other investments - 4.7 5.1
Disposal of subsidiary investment 1.3 - -
Acquisition of other investments (2.4) - -
Purchase of property, plant and equipment (5.2) (9.0) (14.8)
Purchase of intangible assets (2.5) (5.4) (9.9)
Proceeds from sale of property, plant and equipment 0.4 0.6 0.7
NET CASH OUTFLOW FROM INVESTING ACTIVITIES (8.9) (8.7) (19.3)
CASH FLOWS FROM FINANCING ACTIVITIES
Drawdown of borrowings 86.4 90.2 140.4
Repayment of borrowings (70.5) (57.8) (108.5)
Payment of lease liabilities (7.9) (8.9) (13.7)
Equity dividends paid (14.3) (14.2) (21.0)
Purchase of non-controlling interest in De-Novo Genetic LLC 19 (2.6) - -
Dividend to non-controlling interest (0.1) - -
Debt issue costs (0.7) - -
NET CASH (OUTFLOW)/INFLOW FROM FINANCING ACTIVITIES (9.7) 9.3 (2.8)
NET INCREASE IN CASH AND CASH EQUIVALENTS 6.9 6.6 7.7
Cash and cash equivalents at start of period 42.5 36.3 36.3
Net increase in cash and cash equivalents 6.9 6.6 7.7
Effect of exchange rate fluctuations on cash and cash equivalents (2.0) (0.9) (1.5)
TOTAL CASH AND CASH EQUIVALENTS AT END OF PERIOD 47.4 42.0 42.5
GENUS PLC
ANALYSIS OF NET DEBT
For the six months ended 31 December 2024
At 1 July Net Foreign exchange Non-cash movement At 31 December 2024
2024 cash flows
£m £m £m £m £m
Cash and cash equivalents 42.5 6.9 (2.0) - 47.4
Interest-bearing loans - current (4.9) (4.0) - 4.9 (4.0)
Interest-bearing deferred consideration - current - 2.6 (0.2) (5.2) (2.8)
Lease liabilities - current (14.0) 7.9 - (6.8) (12.9)
(18.9) 6.5 (0.2) (7.1) (19.7)
Interest-bearing loans - non-current (228.2) (11.2) 0.2 (5.4) (244.6)
Interest-bearing deferred consideration - non-current - - (0.4) (8.0) (8.4)
Lease liabilities - non-current (44.1) - (0.1) 8.1 (36.1)
(272.3) (11.2) (0.3) (5.3) (289.1)
Total debt financing (291.2) (4.7) (0.5) (12.4) (308.8)
Net debt (248.7) 2.2 (2.5) (12.4) (261.4)
Included within non-cash movements is £13.2m in relation to the acquisition
of De-Novo Genetics LLC non-controlling interest, of which £2.6m of the
consideration was paid on signing (see note 19), (£1.3m) in relation to net
new leases (including disposals) and £0.5m in the unwinding of debt issue
cost.
At 1 July Net Foreign exchange Non-cash movement At 31 December 2023
2023 cash flows
£m £m £m £m £m
Cash and cash equivalents 36.3 6.6 (0.9) - 42.0
Interest-bearing loans - current (4.2) (2.3) - (0.5) (7.0)
Lease liabilities - current (10.0) 8.9 - (10.4) (11.5)
(14.2) 6.6 - (10.9) (18.5)
Interest-bearing loans - non-current (196.0) (30.1) (0.1) - (226.2)
Lease liabilities - non-current (21.9) - 0.1 (25.6) (47.4)
(217.9) (30.1) - (25.6) (273.6)
Total debt financing (232.1) (23.5) - (36.5) (292.1)
Net debt (195.8) (16.9) (0.9) (36.5) (250.1)
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.
GENUS PLC
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For the six months ended 31 December 2024
1. BASIS OF PREPARATION
The unaudited Condensed Set of Financial Statements for the six months ended
31 December 2024:
· were prepared in accordance with International Accounting Standard
34 'Interim Financial Reporting' ('IAS 34') and thereby have been prepared in
conformity with the requirements of the Companies Act 2006 and the
International Financial Reporting Standards ('IFRSs') adopted in the United
Kingdom;
· are presented on a condensed basis as permitted by IAS 34 and
therefore do 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 Genus plc Annual Report 2024;
· includes all adjustments, consisting of normal recurring
adjustments, necessary for a fair statement of the results for the periods
presented;
· do not constitute statutory accounts within the meaning of section
435 of the Companies Act 2006; and
· were approved by the Board of Directors on 26 February 2025.
The information relating to the year ended 30 June 2024 is an extract from the
published financial statements for that year, which have been delivered to the
Registrar of Companies. The auditor's 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 unaudited Condensed Set of Financial Statements for the six months ended
31 December 2024 has not been reviewed by our Auditor.
The unaudited condensed set of financial statements have been prepared on the
basis of the accounting policies set out in the Annual Report 2024. The Genus
plc Annual Report 2024 (a copy of which is available on the Genus plc website
at www.genusplc.com (http://www.genusplc.com) ) sets out on pages 52-55 a
number of risks and uncertainties that might impact upon the performance of
the Group. There has been no material change to the principal risks that might
affect the performance of the Group in the current financial period.
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.
Functional and presentational currency
The principal exchange rates were as follows:
Average Closing
Six months Six months Year
ended 31 ended 31 ended 31 31 30
December December 30 June December December June
2024 2023 2024 2024 2023 2024
US Dollar/£ 1.29 1.25 1.26 1.25 1.27 1.27
Euro/£ 1.20 1.16 1.17 1.21 1.15 1.18
Brazilian Real/£ 7.46 6.17 6.35 7.74 6.18 7.07
Mexican Peso/£ 25.68 21.64 21.69 26.06 21.61 23.12
Chinese Yuan/£ 9.25 9.02 9.06 9.13 9.01 9.19
Russian Rouble/£ 126.11 116.45 115.46 142.33 113.39 108.18
Impact of Russian Sanctions
The Group has two group operating companies that are incorporated in Russia -
Limited Liability Co. Genus ABS Russia and PIC Genetics LLC ('Russian-based
subsidiaries/entities'). Following the sanctions that have been put in place
by the UK and other governments, the Group implemented a comprehensive
screening process with external counsel to ensure that its Russian entities do
not trade with sanctioned individuals or entities controlled by them. The main
impact of the sanctions regime on our business has been to categorise the
banks in Russia into sanctioned and non-sanctioned banks. Where we receive
money from sanctioned banks we are unable to use the cash without a licence
from His Majesty's Treasury ('HMT'). For cash receipts from non-sanctioned
banks into the entities' non-sanctioned banks we are able to use the cash in
Russia for day-to-day operations.
The UK Office of Financial Sanctions Implementation ('OFSI') issued a general
licence for trading in agricultural commodities in Russia effective on the 4
November 2022 which provides exemptions to the sanctions regime in connection
with the export, production and transport of agricultural commodities. This
definition includes reproductive materials such as are supplied by Genus.
Under this general licence, receipts from non-sanctioned customers received
from and before 4 November 2022 from sanctioned banks no longer need to be
frozen and can be freely used. Also receipts from a sanctioned customer, if
made through a non-sanctioned bank, no longer need to be frozen and can be
freely used. If any customer is or becomes sanctioned and pays through a
sanctioned bank, these funds would still need to be frozen even after 4
November 2022.
Under the requirements of IAS 7, where there is cash that is not available to
be used by the rest of the Group this needs to be disclosed. As at 31 December
2024, we had a cash balance of £6.4m (30 June 2024: £5.2m) in the Russian
entities of which £0.7m (30 June 2024: £0.9m) is not currently available to
be used by the Group due to being received from sanctioned banks and held in a
sanctioned bank.
Management has reviewed the operations and cash flow over a period of 18
months from 31 December 2024 to 30 June 2026, based upon the 2025 and 2026
plans, to determine whether the Russian entities have sufficient
non-sanctioned cash flow to enable them to continue day-to-day operations and
to meet liabilities as they fall due. The analysis indicates they do have
sufficient non-sanctioned cash flow to enable them to meet their day-to-day
operational needs.
Critical accounting judgement - exercise of control
Management has assessed whether the actions of the UK and Russian Governments
have caused the Group to lose control of these Russian-based subsidiaries.
Genus PLC received a licence from the Department for International Trade
('DIT'), effective from 11 January 2023 for 2 years, to allow for UK-based
employees within the Genus group to provide accounting, business and
management consulting services to the Russian-based subsidiaries, for the
purpose of helping them carry out business operations in Russia, delivery of
humanitarian assistance activity and for the production or distribution of
food, provided that it is for the benefit of the civilian population. It
authorises the following services:
> The fullest possible range of accounting services, business and
management consulting services, to include advisory, guidance and operational
assistance services provided for business policy and strategy, and the overall
planning, structuring, and control of the organisation.
> The oversight that a parent company would typically provide to its
subsidiaries in the areas of accounting, financial controls, tax, treasury,
finance and human resources, along with similar oversight in the areas of
information technology, supply chain and other types of technology.
In February 2025, the DIT licence was renewed and extended for an additional
two years, now expiring on 6 February 2027.
We have concluded that we do have control over the Russian-based subsidiaries
for the half year ended 31 December 2024, as defined under IFRS 10
'Consolidated financial statements', and we are still able to consolidate them
despite short-term restrictions on extracting cash. We have also assessed each
of the asset balances for impairment. The material areas that could give rise
to impairment are:
> PIC Russia farm: £1.9m (30 June 2024: £2.5m) - the value of the farm is
predicated on the future economic benefit of the animals that are being reared
there. We would need to assess if the property's open market price (less cost
to sell) would support the carrying value.
> Trade receivables: £3.0m (30 June 2024: £4.4m) - the ongoing financial
sanctions may affect our customers' ability to pay us for their goods. If it
is determined that our customers are unlikely to repay these amounts, then
they should be provided for.
> IAS 41 valuation: £2.4m (30 June 2024: £2.7m) - the ongoing impacts of
both the local economic outlook and our customers' ability to pay us could
result in a reversal of the fair value of the Russian biological assets in the
December valuation.
Management's impairment analysis indicates that, under the current business
environment and based on the plans for the FY25 and FY26 no impairment is
required as at 31 December 2024.
Management will continue to monitor the situation closely to see if any
further changes require additional analysis that may result in a different
conclusion.
In the event of changes in legislation, such as more restrictive sanctions
imposed by the UK Government or actions taken by the Russian Government, we
may determine that we do not exercise control, as defined under IFRS 10
'Consolidated financial statements', over the assets and operations of the
Russian entities and we would not be able to consolidate these companies into
the Financial Statements. The deconsolidation would mean that we would
reclassify the Russian entities as investments and we would need to assess for
impairment. A charge of up to £14.2m (2024: £15.8m) may need to be
recognised in the Income Statement, representing the total net assets of the
two Russian entities. Dependent on the nature of the events leading to the
decision to deconsolidate the entities, there may be additional expenses
incurred which we are unable to estimate at this time. In addition, revenues
would not be consolidated into the Financial Statements from the date of any
deconsolidation. Revenues from the Russian entities were £6.9m in the half
year ended 31 December 2024 (31 December 2023: £7.2m).
New standards and interpretations
In the current period, the Group has applied a number of amendments to IFRS
issued by the International Accounting Standards Board that are mandatorily
effective for an accounting period that begins after 1 January 2024 and have
been implemented with effect from 1 July 2024. These are:
> Amendments to IAS 1 - 'Classification of Liabilities as Current or
Non-Current';
> Amendments to IAS 7 and IFRS 7 - 'Disclosures: Supplier Finance
Arrangements'; and
> Amendments to IFRS 16 - 'Lease Liability in a Sale and Leaseback'.
Their addition has not had any material impact on the disclosures, or amounts
reported in the Group Financial Statements.
New standards and interpretations not yet adopted
At the date of the interim report, the following standards and interpretations
which have not been applied in the report were in issue but not yet effective
(and in some cases had not yet been adopted by the UK). The Group will
continue to assess the impact of these amendments prior to their adoption.
These are:
> IFRS S1 'General Requirements for Disclosure of
Sustainability-related Financial Information';
> IFRS S2 'Climate-related Disclosures';
> Amendments to IAS 12 - 'International Tax Reform Pillar Two Model
Rules - other disclosure requirements';
> Amendments to IAS 21 - 'Lack of Exchangeability';
> IFRS 18 - 'Presentation and Disclosure in Financial Statements'; and
> Amendment to IFRS 9 and IFRS 7 - 'Classification and Measurement of
Financial Instruments'.
Going Concern
The Genus plc Annual Report 2024 (a copy of which is available on the Genus
plc website at www.genusplc.com) sets out on pages 52-55 several risks and
uncertainties that might impact upon the performance of the Group. There has
been no material change to the principal risks that might affect the
performance of the Group in the current fiscal year.
In assessing the appropriateness of adopting the going concern basis of
preparing the financial statements, the Board have considered: -
> Genus's Budget, Forecasts and Strategic Plan which forms
management's best estimate of the future performance and position of the
Group.
> Genus's credit facility agreement which consists of a £208m
multi-currency RCF and a 161m US dollar RCF. Additionally, there is an
uncommitted £11m accordion option which can be requested on one further
occasion over the remaining lifetime of the facility. The current facility
expires in August 2026 having already exercised all extension options.
> The availability of mitigating actions that could be utilised
if needed; including reduction in dividends and postponing certain capital
spend and investments.
As part of the directors' consideration of the appropriateness of adopting the
going concern basis in preparing the financial statements, the Board
considered several key factors, including our business model and our strategic
framework. In addition, all principal risks identified by the Group were
considered in a downside scenario within the viability assessment with
specific focus paid to those that could reasonably have a material impact
within our outlook period including;
> Ensuring biosecurity or continuity of supply, which is
modelled through one off impacts of disease outbreaks, severe weather events
and international trade sanctions and disputes;
> Managing agricultural market and commodity prices volatility,
modelled through increases in operating costs, particularly in Russia, Ukraine
and the Middle East; and
> Succeeding in growth markets, which we have modelled through
reductions in short term growth expectations, particularly in China;
The Directors have considered the position if each of the identified risks
materialised individually and where multiple risks occur in parallel. In
addition, the Directors have overlaid this downside scenario, net of
mitigations, on our facility headroom and banking covenants.
Based on this assessment our headroom under these sensitivities, including our
mitigating actions, remain adequate and the Directors have a reasonable
expectation that the Group has adequate resources to continue its operational
existence for the foreseeable future and for a period of at least 12 months
from the date of this report. Accordingly, the Directors continue to adopt and
consider appropriate the going concern basis in preparing the half-yearly
report and the Condensed Set of Financial Statements.
Alternative Performance Measures ('APMs')
In reporting financial information, the Group presents APMs, which are not
defined or specified under the requirements of IFRS and which are not
considered to be a substitute for, or superior to, IFRS measures.
The Group believes that these APMs provide stakeholders with additional
helpful information on the performance of the business. The APMs are
consistent with how we plan our business performance and report on it in our
internal management reporting to the Board and GELT. Some of these measures
are also used for the purpose of setting remuneration targets.
For a full list of all APMs please see the Alternative Performance Measures
Glossary section at the end of this release.
2. SEGMENTAL INFORMATION
IFRS 8 'Operating Segments' requires operating segments to be identified on
the basis of internal reports about components of the Group that are regularly
reviewed by the Chief Executive and the Board, to allocate resources to the
segments and to assess their performance. The Group's operating and reporting
structure comprises three operating segments: Genus PIC, Genus ABS and Genus
Research and Development. These segments are the basis on which the Group
reports its segmental information. The principal activities of each segment
are as follows:
> Genus PIC - our global porcine business including commercialisation costs
relating to PRRS resistant pig ('PRP');
> Genus ABS - our global bovine business; and
> Genus Research and Development - our global spend on gene editing costs
(excluding PRP commercialisation) and other research and development costs.
A segmental analysis of revenue, operating profit, segment assets and
liabilities and is provided below. We do not include our adjusting items in
the income statement segments, as we believe these do not reflect the
underlying performance of the segments. The accounting policies of the
reportable segments are the same as the Group's accounting policies, as
described in the Financial Statements.
Revenue
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2024 2023 2024
£m £m £m
Genus PIC 181.3 175.8 352.5
Genus ABS 154.0 157.8 314.9
Central 1.1 - 1.4
336.4 333.6 668.8
Adjusted operating profit by segment is set out below and reconciled to the
Group's adjusted operating profit. A reconciliation of adjusted operating
profit to profit for the period is shown on the face of the Condensed
Consolidated Income Statement.
Adjusted operating profit
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2024 2023 2024
£m £m £m
Genus PIC 50.9 46.9 93.8
Genus ABS 8.2 6.7 12.7
Genus Research and Development (7.9) (11.3) (21.8)
Adjusted segment operating profit 51.2 42.3 84.7
Central (10.9) (9.3) (17.7)
Adjusted operating profit 40.3 33.0 67.0
Our business is not highly seasonal and our customer base is diversified, with
no individual customer generating more than 2% of revenue.
Exceptional items of £6.0m net expense (2023: £7.5m net expense) relate to
Genus ABS (£6.0m net expense) and Genus PIC (£nil net expense). Note 3
provides details of these exceptional items.
We consider share-based payment expenses on a Group-wide basis and do not
allocate them to reportable segments.
Other segment information
Segment assets Segment liabilities
31 31 30 31 31 30
December December June December December June
2024 2023 2024 2024 2023 2024
£m
£m
£m
£m
£m
£m
Genus PIC 557.3 598.6 591.7 (121.7) (145.0) (157.0)
Genus ABS 358.0 400.5 363.9 (71.8) (66.7) (50.9)
Genus Research and Development 3.6 7.6 6.7 (2.7) (3.6) (3.7)
Segment total 918.9 1,006.7 962.3 (196.2) (215.3) (211.6)
Central 67.0 47.2 66.6 (273.3) (265.7) (273.4)
Total 985.9 1,053.9 1,028.9 (469.5) (481.0) (485.0)
Revenue by type
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2024 2023 2024
£m
£m
£m
Genus PIC 94.0 88.7 175.1
Genus ABS 146.9 154.0 301.5
Central - - -
Sale of animals, semen, embryos and ancillary products and services 240.9 242.7 476.6
Genus PIC 87.3 87.1 177.4
Genus ABS 0.2 0.2 0.4
Central - - -
Royalties 87.5 87.3 177.8
Genus PIC - - -
Genus ABS 6.9 3.6 13.0
Central 1.1 - 1.4
Consulting services 8.0 3.6 14.4
Total revenue 336.4 333.6 668.8
Revenue from contracts with customers
The Group's revenue is analysed below by the timing at which it is recognised.
Six months Six months Year
ended
ended
ended
31 December 31 December
30 June
2024 2023
2024
£m £m
£m
Genus PIC 178.9 172.4 347.0
Genus ABS 135.4 139.6 283.5
Central - - -
Recognised at a point in time 314.3 312.0 630.5
Genus PIC 2.4 3.4 5.5
Genus ABS 18.6 18.2 31.4
Central 1.1 - 1.4
Recognised over time 22.1 21.6 38.3
Total revenue 336.4 333.6 668.8
3. EXCEPTIONAL ITEMS
Operating (expense)/credit Six months Six months Year
ended ended ended
31 31 30
December December June
2024 2023 2024
£m
£m
£m
ABS restructuring (3.7) (2.9) (6.0)
Corporate transactions (1.5) - (7.4)
Litigation (0.8) (4.0) (10.4)
R&D Restructuring - - (0.7)
Other - (0.6) (0.1)
Net exceptional items (6.0) (7.5) (24.6)
ABS restructuring
As part of the on-going strategic global Value Acceleration program,
significant one-off expenses in relation to £2.3m of staff redundancies,
£0.2m relating to fixed asset and inventory write downs were incurred and
£1.2m consultancy fees to date.
Corporate Transactions
During the period, included within these costs was £1.5m (2023: £nil)
incurred primarily in relation to potential corporate transactions which are
no longer active.
Litigation
Litigation includes legal fees, settlement and related costs of £0.8m (2023:
£4.0m) related to the actions between ABS Global, Inc. and certain affiliates
('ABS') and Inguran, LLC and certain affiliates (aka STgenetics ('ST')).
4. NET FINANCE COSTS
Six months Six months Year
ended ended ended
31 31 30
December December June
2024 2023 2024
£m
£m
£m
Interest payable on bank loans and overdrafts (9.1) (8.5) (17.8)
Amortisation of debt issue costs (0.5) (0.5) (0.9)
Other interest payable (0.3) (0.2) (0.2)
Unwinding of discount put options (0.1) (0.2) (0.2)
Net interest cost in respect of pension scheme liabilities (0.1) (0.1) (0.3)
Interest on lease liabilities (1.2) (1.5) (2.8)
Total interest expense (11.3) (11.0) (22.2)
Interest income on bank deposits 0.2 0.5 0.6
Net interest income on derivative financial instruments 1.3 1.6 3.3
Total interest income 1.5 2.1 3.9
Net finance costs (9.8) (8.9) (18.3)
5. TAXATION AND DEFERRED TAXATION
Income tax expense
Six months Six months Year
ended ended ended
31 31 30
December December June
2024 2023 2024
£m
£m
£m
Current tax 6.2 3.7 21.6
Deferred tax (4.4) 0.3 (18.5)
Total income tax expense 1.8 4.0 3.1
The tax charge for the period of £1.8m (2023: £4.0m) on the statutory profit
represents an effective tax rate of 54.1% (2023: 27.7%). The increase in the
statutory ETR of 26.4% results from the £4.5m non-taxable loss on the
purchase of the De-Novo Non-Controlling interest as disclosed further in note
19. Absent this loss which has no corresponding tax credit, the statutory tax
rate for the year would be 23.1%.
The tax charge on adjusted profits for the period is £9.2m (2023: £7.3m),
which represents a tax rate on adjusted profits of 26.0% (2023: 25.0%).
There is a deferred tax liability at the period end of £37.3m (2023: £54.2m)
which mainly relates to the recognition at fair value of biological assets and
intangible assets arising on acquisition and a deferred tax asset of £28.9m
(2023: £19.0m) which mainly relates to future tax deductions in respect of
pension scheme liabilities, losses and share scheme awards.
6. DIVIDENDS
Amounts recognised as distributions to equity holders in the period
Six months Six months Year
ended ended ended
31 31 30
December December June
2024 2023 2024
£m
£m
£m
Final dividend
Final dividend for the year ended 30 June 2024 of 21.7 pence per share 14.3 - -
Final dividend for the year ended 30 June 2023 of 21.7 pence per share - 14.2 14.3
Interim dividend
Interim dividend for the year ended 30 June 2024 of 10.3 pence per share - - 6.7
14.3 14.2 21.0
The final dividend for the year ended 30 June 2024 was approved at the Company
Annual General Meeting on 20 November 2024 and paid on 6 December 2024.
On 26 February 2025, the Directors proposed an interim dividend of 10.3 pence
per share payable on 4 April 2025.
7. OTHER INTANGIBLE ASSETS
Porcine Brands, multiplier contracts and customer relationships Separately identified acquired intangible assets IntelliGen Patents, licences and other
and bovine genetics technology £m £m Software Assets under construction £m £m Total
£m £m £m £m
Cost
Balance at 1 July 2023 56.3 98.9 155.2 34.5 7.0 25.7 4.4 226.8
Additions - - - 0.1 9.9 - - 10.0
Business Combination - 1.9 1.9 - - - 0.1 2.0
Transfers - - - 8.1 (8.1) - - -
Effect of movements in exchange rates (0.5) (1.0) (1.5) - - - - (1.5)
Balance at 30 June 2024 55.8 99.8 155.6 42.7 8.8 25.7 4.5 237.3
Additions - - - - 2.5 - - 2.5
Transfers - - - 2.2 (7.8) 5.6 - -
Effect of movements in exchange rates (0.5) - (0.5) - 0.1 0.3 - (0.1)
Balance at 31 December 2024 55.3 99.8 155.1 44.9 3.6 31.6 4.5 239.7
Amortisation and impairment losses
Balance at 1 July 2023 42.5 81.2 123.7 18.2 - 14.4 4.3 160.6
Amortisation for the year 3.3 2.5 5.8 3.8 - 2.6 0.1 12.3
Effect of movements in exchange rates (0.3) (0.7) (1.0) - - - - (1.0)
Balance at 30 June 2024 45.5 83.0 128.5 22.0 - 17.0 4.4 171.9
Disposals - - - - - - - -
Amortisation for the period 1.6 1.3 2.9 2.2 - 1.4 - 6.5
Effect of movements in exchange rates (0.3) 0.4 0.1 0.1 - 0.1 - 0.3
Balance at 31 December 2024 46.8 84.7 131.5 24.3 - 18.5 4.4 178.7
Carrying amounts
At 31 December 2024 8.5 15.1 23.6 20.6 3.6 13.1 0.1 61.0
At 30 June 2024 10.3 16.8 27.1 20.7 8.8 8.7 0.1 65.4
Included within brands, multiplier contracts and customer relationships are
carrying amounts for brands of £0.4m (30 June 2024: £0.5m), multiplier
contracts of £7.1m (30 June 2024: £7.9m) and customer relationships of
£7.6m (30 June 2024: £8.4m).
Included within the software class of assets is £12.9m (30 June 2024:
£13.3m) and included in assets in the course of construction is £nil (30
June 2024: £0.2m) that relate to the ongoing development costs of GenusOne,
our single global enterprise system.
8. BIOLOGICAL ASSETS
Fair value of biological assets Bovine Porcine Total
£m £m £m
Balance at 1 July 2024 62.3 267.4 329.7
Increases due to purchases 8.6 83.5 92.1
Decreases attributable to sales - (119.7) (119.7)
Decrease due to harvest (4.4) (12.2) (16.6)
Changes in fair value less estimated sale costs (11.3) 41.3 30.0
Disposal - (5.2) (5.2)
Effect of movements in exchange rates 0.3 (3.7) (3.4)
Balance at 31 December 2024 55.5 251.4 306.9
Non-current biological assets 55.5 221.3 276.8
Current biological assets - 30.1 30.1
Balance at 31 December 2024 55.5 251.4 306.9
Balance at 1 July 2023 99.3 242.7 342.0
Increases due to purchases 9.0 71.0 80.0
Decreases attributable to sales - (138.4) (138.4)
Decrease due to harvest (5.6) (16.0) (21.6)
Changes in fair value less estimated sale costs (32.3) 120.5 88.2
Effect of movements in exchange rates 0.2 (0.1) 0.1
Balance at 31 December 2023 70.6 279.7 350.3
Non-current biological assets 70.6 248.7 319.3
Current biological assets - 31.0 31.0
Balance at 31 December 2023 70.6 279.7 350.3
Balance at 1 July 2023 99.3 242.7 342.0
Increases due to purchases 18.8 200.0 218.8
Decreases attributable to sales - (214.8) (214.8)
Decrease due to harvest (11.7) (32.2) (43.9)
Changes in fair value less estimated sale costs (44.5) 73.0 28.5
Effect of movements in exchange rates 0.4 (1.3) (0.9)
Balance at 30 June 2024 62.3 267.4 329.7
Non-current biological assets 62.3 235.1 297.4
Current biological assets - 32.3 32.3
Balance at 30 June 2024 62.3 267.4 329.7
Bovine
Bovine biological assets include £7.9m (2023: £8.7m) representing the fair
value of bulls owned by third parties but managed by the Group, net of
expected future payments to such third parties, which are therefore treated as
assets held under finance leases.
There were no movements in the carrying value of the bovine biological assets
in respect of sales or other changes during the period.
A risk-adjusted rate of 12.0% (June 2024: 12.5%) has been used to discount
future net cash flows from the sale of bull semen.
Decreases due to harvest represent the semen extracted from the biological
assets. Inventories of such semen are shown as biological asset harvest.
Porcine
Included in increases due to purchases is the aggregate increase arising
during the period on initial recognition of biological assets in respect of
multiplier purchases, other than parent gilts, of £36.0m (2023: £31.8m).
Decreases attributable to sales during the period of £119.7m (2023: £138.4m)
include £16.4m (2023: £25.7m) in respect of the reduction in fair value of
the retained interest in the genetics of animals, other than parent gilts,
transferred under royalty contracts.
Also included is £63.2m (2023: £64.4m) relating to the fair value of the
retained interest in the genetics in respect of animals, other than parent
gilts, sold to customers under royalty contracts in the period.
Total revenue in the period, including parent gilts, includes £123.6m (2023:
£139.5m) in respect of these contracts, comprising £36.3m (2023: £52.4m) on
initial transfer of animals and semen to customers and £87.3m (2023: £87.1m)
in respect of royalties received.
A risk-adjusted rate of 12.25% (June 2024: 12.5%) has been used to discount
future net cash flows from the expected output of the pure line porcine herds.
The number of future generations which have been taken into account is seven
(2023: seven) and their estimated useful lifespan is 1.4 years (2023: 1.4
years).
Six months ended 31 December 2024
Bovine Porcine Total
£m £m £m
Changes in fair value of biological assets (11.3) 41.3 30.0
Inventory transferred to cost of sales at fair value 2.2 (12.2) (10.0)
Biological assets transferred to cost of sales at fair value - (35.1) (35.1)
(9.1) (6.0) (15.1)
Fair value movement in related financial derivative - (0.9) (0.9)
Net IAS 41 valuation movement on biological assets(1) (9.1) (6.9) (16.0)
Six months ended 31 December 2023
Bovine Porcine Total
£m £m £m
Changes in fair value of biological assets (32.3) 120.5 88.2
Inventory transferred to cost of sales at fair value 4.3 (16.0) (11.7)
Biological assets transferred to cost of sales at fair value - (74.4) (74.4)
(28.0) 30.1 2.1
Fair value movement in related financial derivative - 0.5 0.5
Net IAS 41 valuation movement on biological assets(1) (28.0) 30.6 2.6
Year ended 30 June 2024
Bovine Porcine Total
£m £m £m
Changes in fair value of biological assets (44.5) 73.0 28.5
Inventory transferred to cost of sales at fair value 1.1 (32.2) (31.1)
Biological assets transferred to cost of sales at fair value - (21.3) (21.3)
(43.4) 19.5 (23.9)
Fair value movement in related financial derivative - 0.7 0.7
Net IAS 41 valuation movement on biological assets(1) (43.4) 20.2 (23.2)
1 This represents the difference between operating profit prepared
under IAS 41 and operating profit prepared under historical cost accounting,
which forms part of the reconciliation to adjusted operating profit (see
APMs).
9. PROPERTY, PLANT AND EQUIPMENT
Land and buildings Plant, motor vehicles and equipment Assets under construction Total Land and buildings Plant, motor vehicles and equipment Total Total
owned
right-of-use
£m £m £m
assets £m £m
£m
assets
£m
£m
Cost or deemed cost
Balance at 1 July 2023 111.2 119.7 16.9 247.8 31.7 31.6 63.3 311.1
Additions 1.4 2.3 12.8 16.5 32.7 8.8 41.5 58.0
Business Combination - 0.3 - 0.3 0.4 - 0.4 0.7
Transfers 11.3 8.4 (19.7) - - - - -
Disposals (0.2) (5.4) - (5.6) (2.5) (2.1) (4.6) (10.2)
Effect of movements in exchange rates (1.3) (1.2) 0.1 (2.4) (1.1) 0.5 (0.6) (3.0)
Balance at 30 June 2024 122.4 124.1 10.1 256.6 61.2 38.8 100.0 356.6
Additions 0.1 0.8 4.3 5.2 1.5 5.0 6.5 11.7
Transfers 2.4 2.9 (5.3) - - - - -
Disposals (0.5) (1.1) - (1.6) (8.2) (2.0) (10.2) (11.8)
Effect of movements in exchange rates (0.8) (0.5) (0.8) (2.1) (1.3) 1.0 (0.3) (2.4)
Balance at 31 December 2024 123.6 126.2 8.3 258.1 53.2 42.8 96.0 354.1
Depreciation and impairment losses
Balance at 1 July 2023 34.5 79.8 - 114.3 15.3 17.1 32.4 146.7
Depreciation for the year 5.5 12.9 - 18.4 8.9 7.4 16.3 34.7
Disposals (0.1) (3.9) - (4.0) (2.3) (0.9) (3.2) (7.2)
Impairment 1.5 0.2 - 1.7 - - - 1.7
Effect of movements in exchange rates (0.4) (0.7) - (1.1) (0.7) 0.5 (0.2) (1.3)
Balance at 30 June 2024 41.0 88.3 - 129.3 21.2 24.1 45.3 174.6
Depreciation for the period 2.8 5.6 - 8.4 3.3 3.9 7.2 15.6
Disposals (0.3) (0.6) - (0.9) (2.2) (1.3) (3.5) (4.4)
Effect of movements in exchange rates (0.3) (0.2) - (0.5) (0.2) (0.6) (0.8) (1.3)
Balance at 31 December 2024 43.2 93.1 - 136.3 22.1 26.1 48.2 184.5
Carrying amounts
At 31 December 2024 80.4 33.1 8.3 121.8 31.1 16.7 47.8 169.6
At 30 June 2024 81.4 35.8 10.1 127.3 40.0 14.7 54.7 182.0
Included within disposals of right-of-use assets is £6.1m related to the
disposal of PIC Qiannan leases. See note 10 for more details.
10. Interests in joint ventures and associates
The Group's share of profit after tax in its equity accounted investees for
the six months ended 31 December 2024 was £5.1m (2023: £5.3m).
The carrying value of the investment is reconciled as follows:
31
31 December
December 2023
2024 £m
£m
Balance at 1 July 60.5 53.5
Share of post-tax retained profits of joint ventures and associates 5.1 5.3
Additions 0.9 1.2
Shareholder loan repayments (0.1) -
Retained 40% interest in PIC (Qiannan) Agriculture Science and Technology Co . 1.5 -
Ltd
Acquisition of controlling interest of Xelect Limited - (2.5)
Dividends received from Agroceres - PIC Genética de Suínos Ltda (Brazil) - (3.2)
Dividends received from Zhidan - Yan'an Xinyongxiang Technology Co., Ltd - (1.3)
(China)
Effect of other movements including exchange rates (4.9) 0.1
Balance at 31 December 63.0 53.1
During the period the Group sold 60% of its shareholding in PIC (Qiannan)
Agriculture Science and Technology Co. Ltd for a consideration of £1.3m. On
the data of the sale the FV of the retained 40% had a fair value of £1.5m.
Subsequently to the loss of control, the Group made a further £0.9m capital
contribution into PIC Qiannan as part of a capital contribution by all
shareholders.
Summary unaudited financial information for equity accounted investees,
adjusted for the Group's percentage ownership, is shown below:
Net IAS 41
valuation Profit after
movement tax
on biological £m
Revenue assets Expenses Taxation
Income Statement £m £m £m £m
Six months ended 31 December 2024 27.3 1.8 (22.5) (1.5) 5.1
Six months ended 31 December 2023 21.5 2.3 (16.8) (1.7) 5.3
Year ended 30 June 2024 32.8 14.6 (22.6) (5.7) 19.1
11. INVENTORIES
31 December 31 December 30 June
2024 2023 2024
£m
£m
£m
Biological assets' harvest classed as inventories 17.7 24.4 20.0
Raw materials and consumables 4.2 3.9 4.5
Goods held for resale 29.9 37.3 32.6
51.8 65.6 57.1
12. TRADE AND OTHER RECEIVABLES
31 December 31 December 30 June
2024 2023 2024
£m
£m
£m
Trade receivables 92.3 93.8 94.9
Less expected credit loss allowance (4.8) (3.8) (4.7)
Trade receivables net of provisions 87.5 90.0 90.2
Other debtors 7.7 7.6 7.3
Prepayments 9.0 11.5 9.6
Contract assets net of provisions 20.9 21.4 25.0
Other taxes and social security 3.3 3.9 3.1
Current trade and other receivables 128.4 134.4 135.2
Other debtors 4.5 4.6 4.9
Contract assets net of provisions 6.8 5.6 6.9
Non-current other receivables 11.3 10.2 11.8
139.7 144.6 147.0
Trade receivables
The average credit period our customers take on the sales of goods is 48 days
(30 June 2024: 49 days). We do not charge interest on receivables for the
first 30 days from the date of the invoice.
The Group measures the loss allowance for trade receivables at an amount equal
to lifetime expected credit losses ('ECLs'). The ECLs on trade receivables are
estimated using a provision matrix by reference to past default experience of
the debtor and an analysis of the debtor's current financial position,
adjusted for factors that are specific to the general economic conditions of
the industry and country in which the debtor operates and an assessment of
both the current and the forecast direction of conditions at the reporting
date. The Group writes off a trade receivable when there is information
indicating that the debtor is in severe financial difficulty and there is no
realistic prospect of recovery, such as when the debtor has been placed under
liquidation or has entered into bankruptcy proceedings.
No customer represents more than 5% of the total balance of trade receivables
(30 June 2024: no more than 5%).
13. TRADE AND OTHER PAYABLES
31 December 31 December 30 June
2024 2023 2024
£m
£m
£m
Trade payables 32.4 34.9 34.0
Other payables 11.9 3.2 11.2
Accrued Expenses 50.1 51.3 62.6
Contract liabilities 7.4 6.2 8.1
Other taxes and social security 9.2 9.7 7.3
Current trade and other payables 111.0 105.3 123.2
Other payables - - 4.0
Contract liabilities - - 0.2
Non-current trade and other payables - - 4.2
The average credit period taken for trade purchases is 31 days (30 June 2024:
33 days).
Other payables include an amount of £8.0m (30 June 2024: £11.9m) that
relates to the ST litigation settlement, which will be paid in two equal
instalments on 1 January 2025 and 1 July 2025.
14. EARNINGS PER SHARE
Weighted average number of ordinary shares (diluted)
Six months Six months Year
ended ended ended
31 31 30
December December June
2024 2023 2024
000s
000s
000s
Weighted average number of ordinary shares (basic) 65,854 65,680 65,686
Dilutive effect of share awards and options 605 540 488
Weighted average number of ordinary shares for the purpose of diluted earnings 66,459 66,220 66,174
per share
Six months Six months Year
ended ended ended
31 31 30
December December June
2024 2023 2024
(pence) (pence) (pence)
Earnings per share
Basic earnings per share 2.4 20.6 12.0
Diluted earnings per share 2.4 20.4 11.9
Adjusted earnings per share
Adjusted earnings per share 39.8 33.3 65.5
Diluted adjusted earnings per share 39.4 33.1 65.0
Earnings per share measures are calculated on the weighted average number of
ordinary shares in issue during the period. As in previous periods, adjusted
earnings per share have been shown, since the Directors consider that this
alternative measure gives a more comparable indication of the Group's trading
performance.
Basic earnings per share is based on the net profit attributable to owners of
the Company for the period of £1.6m (six months ended 31 December 2023:
£13.5m; year ended 30 June 2024: £7.9m) 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 on biological assets, amortisation of acquired
intangible assets, share-based payment expense and exceptional items, after
charging taxation associated with those profits, of £26.2m (six months ended
31 December 2023: £21.9m; year ended 30 June 2024: £43.0m), which is
calculated as follows:
Adjusted earnings
Year
Six months Six months ended
ended ended 30
31 31 June
December December 2024
2024 2023 £m
£m
£m
Profit before tax 3.3 14.3 5.5
Add/(deduct):
Net IAS 41 valuation movement on biological assets (note 8) 16.0 (2.6) 23.2
Amortisation of acquired intangible assets (note 7) 2.9 2.9 5.8
Share-based payment expense 2.9 3.9 7.0
Exceptional items (see note 3) 6.0 7.5 24.6
Other gains and losses 4.5 3.4 1.7
Net IAS 41 valuation movement on biological assets in joint ventures (note 10) (1.8) (2.3) (14.6)
Tax on joint ventures and associates (note 10) 1.5 1.7 5.7
Attributable to non-controlling interest 0.1 0.4 0.9
Adjusted profit before tax 35.4 29.2 59.8
Adjusted tax charge (9.2) (7.3) (16.8)
Adjusted profit after tax 26.2 21.9 43.0
Effective tax rate on adjusted profit 26.0% 25.0% 28.1%
15. CASH FLOW FROM OPERATING ACTIVITIES
Six months Year
Six months ended ended
ended 31 30
31 December June
December 2023 2024
£m
£m
2024
£m
Profit for the period 1.5 10.3 2.4
Adjustment for:
Net IAS 41 valuation movement on biological assets 16.0 (2.6) 23.2
Amortisation of acquired intangible assets 2.9 2.9 5.8
Share-based payment expense 2.9 3.9 7.0
Share of profit of joint ventures and associates (5.1) (5.3) (19.1)
Other gains and losses 4.5 3.4 1.7
Finance costs (net) 9.8 8.9 18.3
Income tax expense 1.8 4.0 3.1
Exceptional items 6.0 7.5 24.6
Adjusted operating profit from continuing operations 40.3 33.0 67.0
Depreciation of property, plant and equipment 15.6 18.1 34.7
(Profit)/Loss on disposal of plant and equipment (1.3) 0.1 0.8
Amortisation and impairment of intangible assets 3.6 3.1 6.4
Adjusted earnings before interest, tax, depreciation and amortisation 58.2 54.3 108.9
Cash impact of exceptional items (15.2) (6.1) (17.9)
Other movements in biological assets and harvested produce - (7.2) (9.6)
Decrease in provisions and release in deferred consideration (0.4) - (1.0)
Additional pension contributions in excess of pension charge (0.3) (0.3) (0.5)
Other (0.7) (1.0) 0.1
Operating cash flows before movement in working capital 41.6 39.7 80.0
Decrease/(increase) in inventories 2.6 (3.5) (1.3)
Decrease/(increase) in receivables 4.1 (5.0) (10.1)
(Decrease)/increase in payables (3.7) (8.4) 0.2
Cash generated by operations 44.6 22.8 68.8
Interest received 0.2 0.5 0.5
Interest and other finance costs paid (8.1) (8.7) (14.5)
Interest on leased assets (1.2) (1.5) (2.8)
Cash flow from derivative financial instruments (0.5) 1.2 (0.7)
Income taxes paid (9.5) (8.3) (21.5)
Net cash from operating activities 25.5 6.0 29.8
16. RETIREMENT BENEFIT OBLIGATIONS
The Group has a number of defined contribution and defined benefit pension
schemes covering many of its employees, further details can be found in the
Genus plc Annual Report 2024. The aggregated position of defined benefit
schemes are provided below:
31 December 31 December 30 June
2024 2023 2024
£m
£m
£m
Present value of funded obligations 680.8 778.0 722.8
Present value of unfunded obligations 7.3 7.2 7.4
Total present value of obligations 688.1 785.2 730.2
Fair value of plan assets (718.7) (809.8) (760.0)
Restricted recognition of asset (MPF and DPF) 37.1 31.2 36.4
Recognised liability for defined benefit obligations 6.5 6.6 6.6
The principal actuarial assumptions (expressed as weighted averages) are:
31 31 30
December December June
2024 2023 2024
Discount rate 5.50% 4.55% 5.15%
Consumer Price Index 2.45% 2.35% 2.55%
Retail Price Index 2.80% 2.75% 2.90%
The Milk Pension Fund
We have accounted for our section of the scheme and our share of any orphan
assets and liabilities, which together represent approximately 86% of the MPF.
Although the MPF is managed on a sectionalised basis, it is a "last man
standing scheme", which means that all participating employers are joint and
severally liable for all of the fund's liabilities.
Further details of the Milk Pension Fund can be found in the Genus plc Annual
Report 2024.
17. Financial instruments fair value disclosures
The table below sets out the categorisation of the financial instruments held
by the Group at 31 December 2024.
We have categorised financial instruments held at valuation into a three-level
fair value hierarchy, based on the priority of the inputs to the valuation
technique in accordance with IFRS 13. The hierarchy gives the highest priority
to quoted prices in active markets for identical assets or liabilities (Level
1) and the lowest priority to unobservable inputs (Level 3). Valuations
categorised as Level 2 are obtained from third parties. If the inputs used to
measure fair value fall within different levels of the hierarchy, we base the
category level on the lowest priority level input that is significant to the
fair value measurement of the instrument in its entirety.
31 December 2024 31 December 2023 30 June 2024
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
£m £m £m £m £m £m £m £m £m £m £m £m
Financial assets
Other investments 0.2 - 3.4 3.6 0.5 - 3.7 4.2 0.2 - 0.9 1.1
Trade and other receivables, excluding prepayments (see note 12) - 130.7 - 130.7 - 133.1 - 133.1 - 137.4 - 137.4
Cash and cash equivalents - 47.4 - 47.4 - 42.0 - 42.0 - 42.5 - 42.5
Derivative instruments in non-designated hedge accounting relationships - 0.1 - 0.1 - 0.9 - 0.9 - 0.9 - 0.9
Derivate instruments in designated hedge accounting relationships - 1.6 - 1.6 - 1.4 - 1.4 - 2.2 - 2.2
0.2 179.8 3.4 183.4 0.5 177.4 3.7 181.6 0.2 183.0 0.9 184.1
Financial liabilities
Trade and other payables, excluding other taxes and social security - (101.8) - (101.8) - (95.6) - (95.6) - (120.1) - (120.1)
Loans and overdrafts - (259.8) - (259.8) - (233.2) - (233.2) - (233.1) - (233.1)
Leasing obligations - (49.0) - (49.0) - (58.9) - (58.9) - (58.1) - (58.1)
Derivative instruments in non-designated hedge accounting relationships - (0.8) - (0.8) - (0.6) - (0.6) - (0.6) - (0.6)
Derivative instruments in designated hedge accounting relationships - (0.3) - (0.3) - (0.5) - (0.5) - - - -
Put option over non-controlling interest - (0.8) - (0.8) - (7.3) - (7.3) - (7.4) - (7.4)
Deferred consideration - - (0.2) (0.2) - - (1.2) (1.2) - - (0.8) (0.8)
- (412.5) (0.2) (412.7) - (396.1) (1.2) (397.3) - (419.3) (0.8) (420.1)
The Directors consider that the carrying value amounts of financial assets and
financial liabilities recorded at amortised cost in the financial statements
are approximately equal to their fair values.
Included within other gains and losses is a £0.3m loss (2023 - £3.4m loss)
on the mark to market valuation (MTM) in relation to £60m of SONIA interest
rate swaps executed in April 2023. Whilst the interest rate swaps are a
perfect commercial hedge of a similar amount of our GBP borrowings for at
least a three-year period, as the executing banks have a written option at the
three-year point to unilaterally terminate the swaps at no cost, the
transaction does not qualify for hedge accounting treatment. Accordingly, the
MTM gain on the valuation of these swaps is recognised in the Group Income
Statement.
18. RELATED PARTY TRANSACTIONS
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note.
Other related party transactions
Transactions between the Group and its joint ventures and associates are
described below:
Transaction value Balance outstanding
Six months Six months Year Six months Six months Year
ended ended ended ended ended ended
31 31 30 31 31 30
December December June December December June
2024 2023 2024 2024 2023 2024
£m
£m
£m
£m
£m
£m
Purchase of goods and services from joint ventures and associates 4.3 2.6 7.7 (1.6) 1.2 (2.5)
All outstanding balances with joint ventures and associates are priced on an
arm's length basis and are to be settled in cash within six months of the
reporting date. None of the balances are secured.
19. NON-CONTROLLING INTEREST
31 December 31 December 30 June
2024 2023 2024
£m
£m
£m
Non-controlling interest 0.3 3.6 1.2
Put option over non-controlling interest at inception (0.5) (5.5) (5.5)
Total non-controlling interest (0.2) (1.9) (4.3)
The non-controlling interest can be reconciled as follows:
31
31 December
December 2023
2024 £m
£m
Balance at 1 July (4.3) (7.7)
Total comprehensive expense attributable to the non-controlling interest (0.1) (3.2)
De- Novo capital injection - 8.9
Acquisition of De-Novo Genetics LLC non-controlling interest 4.5 -
Dividends paid by PIC Italia S.r.l (0.1) -
Effect of exchange rates (0.2) 0.1
Balance at 31 December (0.2) (1.9)
On 19th September 2024, the Group purchased the remaining 49% share of De Novo
Genetics LLC for a consideration of £13.2m. £2.6m of the consideration was
paid on signing, the remaining consideration will be settled in four equal
payments ending on 1 July 2029. The outstanding balance attracts interest at
180-day SOFR + 2%. On acquisition, the previous put option was derecognised,
and a loss of £4.5m has been recognised in Other Gains & Losses.
20. OTHER GAINS AND LOSSES
Note 31 December 31 December 30 June
2024 2023 2024
£m
£m
£m
Release of contingent deferred consideration - - 0.4
Loss on purchase of Non-Controlling Interest in De-Novo Genetics LLC 19 (4.5) - -
Gain on loss of control of subsidiary 10 0.3 - -
Loss on derivative 17 (0.3) (3.4) (2.1)
Other gains and losses (4.5) (3.4) (1.7)
GENUS PLC
RESPONSIBILITY STATEMENT
For the six months ended 31 December 2024
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 Chief Financial Officer
Jorgen Kokke Alison Henriksen
26 February 2025
Alternative Performance Measures GLOSSARY
The Group tracks a number of APMs in managing its business, which are not
defined or specified under the requirements of IFRS because they exclude
amounts that are included in, or include amounts that are excluded from, the
most directly comparable measure calculated and presented in accordance with
IFRS, or are calculated using financial measures that are not calculated in
accordance with IFRS.
The Group believes that these APMs, which are not considered to be a
substitute for or superior to IFRS measures, provide stakeholders with
additional helpful information on the performance of the business. These APMs
are consistent with how the business performance is planned and reported
within the internal management reporting to the Board and GELT. Some of these
APMs are also used for the purpose of setting remuneration targets.
These APMs should be viewed as supplemental to, but not as a substitute for,
measures presented in the consolidated financial information relating to the
Group, which are prepared in accordance with IFRS. The Group believes that
these APMs are useful indicators of its performance. However, they may not be
comparable to similarly-titled measures reported by other companies, due to
differences in the way they are calculated.
The key APMs that the Group uses include:
Alternative Performance Measures Calculation methodology and closest equivalent IFRS measure (where applicable) Reasons why we believe the
APMs are useful
Income statement measures
Adjusted operating profit exc JVs Adjusted operating profit is operating profit with the net IAS 41 valuation Allows the comparison of underlying financial performance by excluding the
movement on biological assets, amortisation of acquired intangible assets, impacts of exceptional items and is a performance indicator against which
share-based payment expense and exceptional items added back and excludes JV short-term and long-term incentive outcomes for our senior executives are
and associate results. measured:
> net IAS 41 valuation movements on biological assets - these movements can
be materially volatile and do not directly correlate to the underlying trading
Closest equivalent IFRS measure: Operating profit(1) performance in the period. Furthermore, the movement is non-cash related and
many assumptions used in the valuation model are based on projections rather
than current trading;
See reconciliation below. > amortisation of acquired intangible assets - excluding this improves the
comparability between acquired and organically grown operations, as the latter
cannot recognise internally generated intangible assets. Adjusting for
amortisation provides a more consistent basis for comparison between the two;
> share-based payments - this expense is considered to be relatively
volatile and not fully reflective of the current period trading, as the
performance criteria are based on EPS performance over a three-year period and
Including adjusted operating profit from JV and associate results. include estimates of future performance; and
See reconciliation below. > exceptional items - these are items which due to either their size or
Adjusted operating profit inc JVs
their nature are excluded, to improve the understanding of the Group's
underlying performance.
Adjusted operating profit including JV less adjusted effective tax.
Adjusted operating profit inc JVs after tax
See reconciliation below.
Adjusted operating profit including JVs less net finance costs.
See reconciliation below.
Adjusted profit inc JVs before tax
Adjusted profit including JVs before tax less adjusted effective tax.
See reconciliation below.
Adjusted profit inc JVs
after tax
Adjusted effective tax rate Total income tax charge for the Group excluding the tax impact of adjusting Provides an underlying tax rate to allow comparability of underlying financial
items, divided by the adjusted profit before tax. performance, by excluding the impacts of net IAS 41 valuation movement on
biological assets, amortisation of acquired intangible assets, share-based
payment expense and exceptional items.
Closest equivalent IFRS measure: Effective tax rate
See reconciliation below.
Adjusted basic earnings Adjusted profit after tax profit divided by the weighted basic average number On a per share basis, this allows the comparability of underlying financial
per share of shares. performance by excluding the impacts of adjusting items.
Closest equivalent IFRS measure: Earnings per share
See calculation below.
Adjusted diluted earnings per share
Underlying attributable profit divided by the diluted weighted basic average
number of shares.
Closest equivalent IFRS measure: Diluted earnings per share
See calculation below.
Adjusted earnings cover Adjusted earnings per share divided by the expected dividend for the preceding The Board dividend policy targets the adjusted earning cover to be between
12 months. 2.5-3 times.
See calculation below.
Adjusted EBITDA - calculated in accordance with the definitions used in our This is adjusted operating profit, adding back cash received from our joint This APM is presented because it is used in calculating our ratio of net debt
financing facilities ventures, depreciation of property, plant and equipment, depreciation of the to EBITDA and our interest cover, which we report to our banks to ensure
historical cost of biological assets, operational amortisation (i.e. excluding compliance with our bank covenants.
amortisation of acquired intangibles) and deducting the amount attributable to
minority interest.
Closest equivalent IFRS measure: Operating profit(1)
See reconciliation below.
Adjusted operating margin Adjusted operating profit (including JVs) divided by revenue. Allows for the comparability of underlying financial performance by excluding
the impacts of exceptional items.
Adjusted operating margin (exc JVs) Adjusted operating profit divided by revenue.
Constant currency basis The Group reports certain financial measures, on both a reported and constant The Group's business operates in multiple countries worldwide and its trading
currency basis and re-translates the current year's results at the average results are translated back into the Group's functional currency of Sterling.
actual exchange rates used in the previous financial year. This measure eliminates the effects of exchange rate fluctuations when
comparing year-on-year reported results.
Balance sheet measures
Net debt Net debt is gross debt, made up of unsecured bank loans and overdrafts, This allows the Group to monitor its levels of debt.
obligations under finance leases, and interest-bearing deferred
considerations, with a deduction for cash and cash equivalents.
See reconciliation below.
Net debt - calculated in accordance with the definitions used in our financing Net debt excluding the impact of adopting IFRS 16 and adding back guarantees This is a key metric that we report to our banks to ensure compliance with our
facilities and deferred purchase arrangements. bank covenants.
See reconciliation below.
Cash flow measures
Cash conversion Cash generated by operations as a percentage of adjusted operating profit This is used to measure how much operating cash flow we are generating and how
excluding JVs. efficient we are at converting our operating profit into cash.
See calculation below.
Free cash flow Cash generated by the Group before debt repayments, acquisitions and Shows the cash retained by the Group in the year.
investments, dividends and proceeds from share issues.
Closest IFRS measure: Net cash flow from operating activities
See reconciliation below.
Adjusted cash from operating activities Net Cash from operating activities after capital expenditure (including leased This is used to measure the amount of
assets) including dividends received from our joint ventures, excluding net
interest paid, exceptional cash, pension charges, movements in provisions and cash that is generated by our
other cash outflows.
operating activities and is used to set
Closes IFRS measure: Net cash from operating activities
performance targets internally.
See calculation below.
Other measures
Ratio of net debt to adjusted EBITDA The ratio of net debt, calculated in accordance with the definitions used in This APM is used as a measurement of our leverage and is also a key metric
our financing facilities, is gross debt, made up of unsecured bank loans and that we report to our banks to ensure compliance with our bank covenants.
overdrafts and obligations under finance leases, with a deduction for cash and
cash equivalents and adding back amounts related to guarantees and deferred
purchase arrangements, to adjusted EBITDA.
Closest equivalent IFRS components for the ratio: The equivalent IFRS
components are gross debt, cash and cash equivalents and operating profit.
See calculation below.
1 Operating profit is not defined per IFRS. It is presented in the
Group Income Statement and is shown as profit before tax, finance income/costs
and share of post-tax profit of joint ventures and associates retained.
The tables below reconcile the closest equivalent Ifrs measure to the apm or
outline the calculation of the apm
Income statement measures
Adjusted operating profit exc JVs
Adjusted operating profit inc JVs
31 December 31 December 30 June
2023
2024 2024
£m £m £m £m £m £m Reference
Operating profit 12.5 21.3 6.4 Group Income Statement
Add back:
Net IAS 41 valuation movement on biological assets 16.0 (2.6) 23.2 Group Income Statement
Amortisation of acquired intangible assets 2.9 2.9 5.8 Group Income Statement
Share-based payment expense 2.9 3.9 7.0 Group Income Statement
Exceptional items 6.0 7.5 24.6 Group Income Statement
Adjusted operating profit exc JVs 40.3 33.0 67.0 Group Income Statement
Less: amounts attributable to non-controlling interest 0.1 0.4 0.9 Group Income Statement
Operating profit from joint ventures and associates 5.1 5.3 19.1 Group Income Statement
Tax on joint ventures and associates 1.5 1.7 5.7 Note 10 - Interests in joint ventures and associates
Net IAS 41 valuation movement attributable to joint ventures (1.8) (2.3) (14.6) Note 10 - Interests in joint ventures and associates
Adjusted operating profit from JVs 4.8 4.7 10.2
Adjusted operating profit inc JVs 45.2 38.1 78.1
Adjusted profit inc JVs before tax
Adjusted profit inc JVs after tax
31 December 31 December 30 June
2023
2024 2024
£m £m £m Reference
Adjusted operating profit inc JVs 45.2 38.1 78.1 See APM
Less net finance costs (9.8) (8.9) (18.3) Note 4 - Net finance costs
Adjusted profit inc JVs before tax 35.4 29.2 59.8
Adjusted tax (9.2) (7.3) (16.8) Note 14 - Earnings per share
Adjusted profit inc JVs after tax 26.2 21.9 43.0
Adjusted effective tax £m/rate
31 December 31 December 30 June
2023
2024 2024
£m % £m % £m % Reference
Adjusted effective tax £m/rate 9.2 26.0 7.3 25.0 16.8 28.1 Note 14 - Earnings per share
Exceptional items (1.5) (24.9) (1.7) (22.7) (3.9) (15.9) No direct reference
Share-based payment expense (0.4) (14.0) (0.2) (5.1) (0.7) (10.0) No direct reference
Other gains and losses - (0.3) (0.9) (25.0) (0.4) (23.5) No direct reference
Amortisation of acquired intangible assets (0.8) (27.4) (0.8) (27.6) (1.5) (25.9) No direct reference
Net IAS 41 valuation movement on biological assets (3.6) (22.7) 1.9 73.1 (4.7) (20.3) No direct reference
Net IAS 41 valuation movement on biological assets in joint ventures 0.4 24.0 - - 3.2 21.9 No direct reference
Effective tax £m/rate 3.3 68.8 5.6 35.0 8.8 78.6 No direct reference
Adjusted basic earnings per share
30 June Reference
31 December 31 December 2024
2024 2023
Adjusted profit inc JVs after tax (£m) 26.2 21.9 43.0 See APM
Weighted average number of ordinary shares ('000) 65.854 65.680 65.686 Note 14 - Earnings per share
Adjusted basic earnings per share (pence) 39.8 33.3 65.5
Adjusted diluted earnings per share
30 June Reference
31 December 31 December 2024
2024 2023
Adjusted profit inc JVs after tax (£m) 26.2 21.9 43.0 See APM
Weighted average number of diluted ordinary shares ('000) 66.459 66.220 66.175 Note 14 - Earnings per share
Adjusted diluted earnings per share (pence) 39.4 33.1 65.0
Rolling 12 month Adjusted Earnings cover
31 December 31 December 30 June
2023
2024 2024
Pence Times Pence Times Pence Times Reference
Adjusted Earnings per share 39.8 33.3 65.5 See APM
Add: Prior June Adjusted Earnings per share 65.5 84.8 N/a See APM
Deduct: Prior Interim Adjusted Earnings per share (33.3) (48.8) N/a See APM
Rolling 12 month adjusted Earnings per share 72.0 69.3 65.5
Dividend for the period 10.3 10.3 32.0 Note 6 - Dividends
Add: Dividend for prior June 32.0 32.0 N/a Note 6 - Dividends
Less: prior interim dividend (10.3) (10.3) N/a Note 6 - Dividends
Rolling 12-month dividend 32.0 32.0 32.0
Rolling 12 month Adjusted Earnings cover 2.2 2.2 2.0 No direct reference
Adjusted EBITDA - as calculated under our financing facilities
31 December 31 December 30 June
2023
2024 2024
£m £m £m £m £m £m Reference
Operating profit 12.5 21.3 6.4 Group Income Statement
Add back:
Net IAS 41 valuation movement on biological assets 16.0 (2.6) 23.2 Group Income Statement
Amortisation of acquired intangible assets 2.9 2.9 5.8 Group Income Statement
Share-based payment expense 2.9 3.9 7.0 Group Income Statement
Exceptional items 6.0 7.5 24.6 Group Income Statement
Adjusted operating profit exc JVs 40.3 33.0 67.0 Group Income Statement
Adjust for:
Cash received from JVs (dividend and loan repayment) 0.1 3.8 4.7 No direct reference
Less share of JVs losses (0.3) (0.9) (1.7)
Depreciation: property, plant and equipment 15.6 18.1 34.7 Note 9 - Property, plant and equipment
Operational lease payments (9.1) (10.4) (16.5) No direct reference
Depreciation: historical cost of biological assets 8.4 8.3 15.3 No direct reference
Amortisation and impairment (excluding separately identifiable acquired 3.6 3.1 6.5 Note 7 - Intangible assets
intangible assets)
Less amounts attributable to non-controlling interest 0.1 0.4 0.9 Group Income Statement
Adjusted EBITDA - as calculated under our financing facilities 58.7 55.4 110.9
Rolling 12 month Adjusted EBITDA - as calculated under our financing
facilities
31 December 31 December 30 June
2023
2024 2024
£m £m £m £m £m £m Reference
Operating profit
Adjusted EBITDA - as calculated under our financing facilities 58.7 55.4 110.9 See APM
Add: Prior June Adjusted EBITDA 110.9 111.9 N/a See APM
Deduct: Prior Interim Adjusted EBITDA (55.4) (59.9) N/a See APM
Rolling 12 month Adjusted EBITDA 114.2 107.4 110.9
Balance sheet measures
Net Debt
Net debt as calculated under our financing facilities
31 December 31 December 30 June
2023
2024 2024
£m £m £m £m £m £m Reference
Current unsecured bank loans and overdrafts 4.0 7.0 4.9
Non-current unsecured bank loans and overdrafts 244.6 226.2 228.2
Unsecured bank loans and overdrafts 248.6 233.2 233.1 Group Balance Sheet
Current interest-bearing deferred consideration 2.8 - -
Non-current interest-bearing deferred consideration 8.4 - -
Interest-bearing deferred consideration 11.2 - - No direct reference
Current obligations under finance leases 12.9 11.5 14.0
Non-current obligations under finance leases 36.1 47.4 44.1
Obligations under finance leases 49.0 58.9 58.1 Group Balance Sheet
Total debt financing 308.8 292.1 291.2
Deduct:
Cash and cash equivalents (47.4) (42.0) (42.5) Group Balance Sheet
Net debt 261.4 250.1 248.7
Deduct:
Lower of obligations under finance leases or £30m (30.0) (30.0) (30.0)
Add back:
Guarantees 1.0 11.7 0.6 No direct reference
Cash not available 0.3 1.3 0.9
Cash subject to exchange controls 0.2 - 0.8 No direct reference
Deferred purchase arrangements 1.2 1.4 - No direct reference
Net debt - as calculated under our financing facilities 234.1 234.5 221.0
Cash flow measures
Free cash flow & Adjusted cash from operating activities
31 December 31 December 30 June
2023
2024 2024
£m £m £m £m £m £m Reference
Net cash from operating activities 25.5 6.0 29.8 Group Statement of Cash Flows
Purchase of property, plant and equipment (5.2) (9.0) (14.8) Group Statement of Cash Flows
Purchase of intangible assets (2.5) (5.4) (9.9) Group Statement of Cash Flows
Proceeds from sale of property, plant and equipment 0.4 0.6 0.7 Group Statement of Cash Flows
Dividend received from joint ventures and associates - 4.5 4.7 Group Statement of Cash Flows
Payment of lease liabilities (7.9) (8.9) (13.7) Group Statement of Cash Flows
Free cash flow 10.3 (12.2) (3.2)
Add back:
Interest received (0.2) (0.5) (0.5) Note 15 - Notes to the cash flow statement
Interest and other finance costs paid 8.1 8.7 14.5 Note 15 - Notes to the cash flow statement
Interest on leased assets 1.2 1.5 2.8 Note 15 - Notes to the cash flow statement
Cash flow from derivative financial instruments 0.5 (1.2) 0.7 Note 15 - Notes to the cash flow statement
Income taxes paid 9.5 8.3 21.5 Note 15 - Notes to the cash flow statement
Cash impact of exceptional items relating to operating activities 15.2 6.1 17.9 Note 15 - Notes to the cash flow statement
Additional pension contributions in excess of pension charge 0.3 0.3 0.5 Note 15 - Notes to the cash flow statement
Decrease in provisions 0.4 - 1.0 Note 15 - Notes to the cash flow statement
Dividend to non-controlling interest 0.1 - - Group Statement of Cash Flows
Other 0.7 1.0 (0.1) Note 15 - Notes to the cash flow statement
Adjusted cash from operating activities 46.1 12.0 55.1
Cash conversion
31 December 31 December 30 June
2023
2024 2024
£m Times £m Times £m Times Reference
Adjusted operating profit inc JVs 45.2 38.1 78.1 Group Income Statement
Adjusted cash from operating activities 46.1 12.0 55.1 See APM
Cash conversion 102% 31% 71%
Other measures
Ratio of net debt to adjusted EBITDA
31 December 31 December 30 June
2023
2024 2024
£m Times £m Times £m Times Reference
Net debt - as calculated under our financing facilities 234.1 234.5 221.0 See APM
Rolling 12 month Adjusted EBITDA - 114.2 107.4 110.9 See APM
as calculated under our financing facilities
Ratio of net debt to Adjusted EBITDA 2.0 2.2 2.0
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