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REG - Genus - Preliminary Results <Origin Href="QuoteRef">GENS.L</Origin> - Part 2

- Part 2: For the preceding part double click  ID:nRSH3388Ya 

                                                                                                                                                                                                                                     How We Manage Risk                                                                                      Risk Change in FY15                                                                                                                                                                                                                                                       
 Protecting Intellectual Property·   Genus-developed genetic material, methods and technology could become freely available to third parties                                                                                                                                                                                                We have a global, cross-functional process to identify and protect our IP. Our customer contracts and   Unchanged                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                            our selection of multipliers and joint venture partners include appropriate measures to protect our                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                            IP. We conduct robust 'Freedom To Operate' searches to identify third-party rights to technology.                                                                                                                                                                                                                                                                                 
 Ensuring Biosecurity and Continuity of Supply·   Loss of key livestock, owing to disease outbreak·   Loss of ability to move animals or semen freely (including across borders) due to disease outbreak, environmental incident or international trade sanctions·   Industry-wide disease outbreaks affecting demand for Genus products    We have stringent biosecurity standards, with independent reviews throughout the year to ensure         Reduced We continued to strengthen our health management and supply chain resilience. The risks associated with the 2014/15 outbreak of PEDv in North America have been significantly mitigated.                                                                          
                                                                                                                                                                                                                                                                                                                                            compliance. We continue to extend the geographical diversity of our production facilities, to avoid                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                            over-reliance on single sites.                                                                                                                                                                                                                                                                                                                                                    
 
 
 Financial Risks                                                                                                                                                                                                                                                                                                                                                                                             
 Risk Description                                                                                                                                                                                                                                                                                      How We Manage Risk                                                                                      Risk Change in FY15  
 Managing Agricultural Market and Commodity Prices Volatility·   Fluctuations in agricultural markets affect customer profitability and therefore demand for our products and services·   Increase in our operating costs, due to commodity pricing volatility                                         We continuously monitor markets and seek to balance our costs and resources in response to market       Unchanged            
                                                                                                                                                                                                                                                                                                       demand. We actively monitor and update our hedging strategy to manage our exposure. Our porcine                              
                                                                                                                                                                                                                                                                                                       royalty model and extensive use of third party multipliers mitigates the impact of cyclical price                            
                                                                                                                                                                                                                                                                                                       reductions or cost increases in pig production.                                                                              
 Funding Pensions·   Exposure to costs associated with failure of third-party members of joint and several liabilities pension scheme·   Exposure to costs as a result of external factors (such as mortality rates, interest rates or investment values) affecting the size of the pension deficit    We are the principal employer for the Milk Pension Fund and chair the group of participating            Unchanged            
                                                                                                                                                                                                                                                                                                       employers. The fund is now closed to future service and has an agreed deficit recovery plan, based on                        
                                                                                                                                                                                                                                                                                                       the 2012 actuarial valuation. The result of the 2015 triennial actuarial valuation is due in late                            
                                                                                                                                                                                                                                                                                                       2015.  We monitor the strengths of other employers in the fund and have retained external consultants                        
                                                                                                                                                                                                                                                                                                       to provide expert advice.                                                                                                    
 
 
Group Income Statement                                                                      Genus plc 
 
For the year ended 30 June 2015 
 
                                                                                                               Note  2015£m  2014£m  
 REVENUE FROM CONTINUING OPERATIONS                                                                            2     398.5   372.2   
                                                                                                                                     
                                                                                                                                     
 ADJUSTED OPERATING PROFIT FROM CONTINUING OPERATIONS                                                 2  47.2  42.9  
                                                                                                                                     
                                                                                                                                     
 Net IAS 41 valuation movement on biological assets                                                            9     24.9    7.5     
 Amortisation of acquired intangible assets                                                                    8     (6.1)   (5.8)   
 Share-based payment expense                                                                                         (1.4)   (0.8)   
                                                                                                                                     
                                                                                                                     64.6    43.8    
 Exceptional items                                                                                                                   
 - Acquisition and integration                                                                                 3     (1.4)   (1.8)   
 - Other (including restructuring)                                                                             3     (4.1)   (0.2)   
 - Pension related                                                                                             3     0.4     -       
                                                                                                                                     
                                                                                                                     (5.1)   (2.0)   
                                                                                                                                     
                                                                                                                                     
 OPERATING PROFIT FROM CONTINUING OPERATIONS                                                             59.5  41.8  
 Share of post-tax profit of joint ventures and associates                                                           2.9     1.9     
 Net finance costs                                                                                             4     (4.6)   (5.5)   
                                                                                                                                     
 PROFIT BEFORE TAX FROM CONTINUING OPERATIONS                                                            57.8  38.2  
 Taxation                                                                                                      5     (17.3)  (9.3)   
                                                                                                                                     
 PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS                                                          40.5  28.9  
                                                                                                                                     
 ATTRIBUTABLE TO:                                                                                                                    
 Owners of the Company                                                                                               39.9    28.9    
 Non-controlling interest                                                                                0.6   -     
                                                                                                                     
                                                                                                         40.5  28.9  
                                                                                                                     
 EARNINGS PER SHARE FROM CONTINUING OPERATIONS                                                        7              
 Basic earnings per share                                                                                            66.7p   47.7p   
 Diluted earnings per share                                                                                          65.9p   47.6p   
                                                                                                                                     
                                                                                                                                     
 NON-STATUTORY MEASURE OF PROFIT                                                                                                     
                                                                                                                                     
 Adjusted operating profit from continuing operations                                                    47.2  42.9  
 Operating profit attributable to non-controlling interest                                                           (0.6)   -       
 Pre-tax share of profits from joint ventures and associates excluding net IAS 41 valuation movement                 4.6     1.9     
                                                                                                                                     
 ADJUSTED OPERATING PROFIT INCLUDING JOINT VENTURES AND ASSOCIATES                                       51.2  44.8  
 Net finance costs                                                                                             4     (4.6)   (5.5)   
                                                                                                                                     
 ADJUSTED PROFIT BEFORE TAX FROM CONTINUING OPERATIONS                                                   46.6  39.3  
                                                                                                                                     
 ADJUSTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS                                               7              
 Basic adjusted earnings per share                                                                                   56.8p   46.5p   
 Diluted adjusted earnings per share                                                                                 56.1p   46.4p   
                                                                                                                                     
                                                                                                                                     
 
 
Group Statement of Comprehensive Income                                 Genus plc 
 
For the year ended 30 June 2015 
 
                                                                    Note  2015£m  2015£m  2014£m  2014£m  
 PROFIT FOR THE YEAR                                                              40.5            28.9    
                                                                                                          
 Items that may be reclassified subsequently to profit or loss                                            
 Foreign exchange translation differences                                 14.5            (53.9)          
 Fair value movement on net investment hedges                             (6.1)           8.6             
 Fair value movement on cash flow hedges                                  -               0.3             
 Tax relating to components of other comprehensive income           5     (6.7)           7.8             
                                                                                  1.7             (37.2)  
                                                                                                          
 Items that may not be reclassified subsequently to profit or loss                                        
 Actuarial (loss)/gain on retirement benefit obligations                  (8.5)           4.5             
 Tax relating to components of other comprehensive income           5     1.6             (2.5)           
                                                                                  (6.9)           2.0     
                                                                                                          
                                                                                                          
 OTHER COMPREHENSIVE EXPENSE FOR THE YEAR                                         (5.2)           (35.2)  
                                                                                                          
 TOTAL COMPREHENSIVE  INCOME/(EXPENSE) FOR THE YEAR                               35.3            (6.3)   
                                                                                                          
                                                                                                          
 ATTRIBUTABLE TO:                                                                                         
 Owners of the Company                                                            35.0            (6.3)   
 Non-controlling interest                                                         0.3             -       
                                                                                                          
                                                                                  35.3            (6.3)   
                                                                                                          
 
 
Group Statement of Changes in Equity                                        Genus plc 
 
                                                                                    Note  Called up share capital£m  Share premium account£m  Own shares£m  Trans-lation reserve£m  Hedging reserve£m  Retained earnings£m  Total£m  Non controlling  interest£m  Total equity£m  
                                                                                                                                                                                                                                                                                  
 BALANCE AT 30 JUNE 2013                                                                  6.1                        112.1                    (0.1)         25.4                    (0.3)              156.9                300.1    0.4                          300.5           
 Foreign exchange translationdifferences, net of tax                                      -                          -                        -             (44.2)                  -                  -                    (44.2)   -                            (44.2)          
 Fair value movement on net investment hedges, net of tax                                 -                          -                        -             6.7                     -                  -                    6.7      -                            6.7             
 Fair value movement on cashflow hedges, net of tax                                       -                          -                        -             -                       0.3                -                    0.3      -                            0.3             
 Actuarial gain on retirement benefit obligations, net of tax                             -                          -                        -             -                       -                  2.0                  2.0      -                            2.0             
                                                                                                                                                                                                                                                                                  
 Other comprehensive income/(expense) for the year                                        -                          -                        -             (37.5)                  0.3                2.0                  (35.2)   -                            (35.2)          
 Profit for the year*                                                                     -                          -                        -             -                       -                  28.9                 28.9     -                            28.9            
                                                                                                                                                                                                                                                                                  
 Total comprehensive income for the year                                                  -                          -                        -             (37.5)                  0.3                30.9                 (6.3)    -                            (6.3)           
 Recognition of share-based payments, net of tax                                          -                          -                        -             -                       -                  0.9                  0.9      -                            0.9             
 Issue of ordinary shares                                                                 -                          0.1                      -             -                       -                  -                    0.1      -                            0.1             
 Non-controlling interest on acquisition                                                  -                          -                        -             -                       -                  -                    -        0.2                          0.2             
 Dividends                                                                          6     -                          -                        -             -                       -                  (10.1)               (10.1)   -                            (10.1)          
                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                  
 BALANCE AT 30 JUNE 2014                                                                  6.1                        112.2                    (0.1)         (12.1)                  -                  178.6                284.7    0.6                          285.3           
 Foreign exchange translationdifferences, net of tax                                      -                          -                        -             6.8                     -                  -                    6.8      (0.3)                        6.5             
 Fair value movement on net investment hedges, net of tax                                 -                          -                        -             (4.8)                   -                  -                    (4.8)    -                            (4.8)           
 Actuarial loss on retirement benefit obligations, net of tax                             -                          -                        -             -                       -                  (6.9)                (6.9)    -                            (6.9)           
                                                                                                                                                                                                                                                                                  
 Other comprehensive (expense)/income for the year                                        -                          -                        -             2.0                     -                  (6.9)                (4.9)    (0.3)                        (5.2)           
 Profit for the year                                                                      -                          -                        -             -                       -                  39.9                 39.9     0.6                          40.5            
                                                                                                                                                                                                                                                                                  
 Total comprehensiveincome for the year                                                   -                          -                        -             2.0                     -                  33.0                 35.0     0.3                          35.3            
 Recognition of share-based payments, net of tax                                          -                          -                        -             -                       -                  2.2                  2.2      -                            2.2             
 Adjustment arising from change in non controlling interest and written put option        -                          -                        -             -                       -                  -                    -        (6.6)                        (6.6)           
 Dividends                                                                          6     -                          -                        -             -                       -                  (11.1)               (11.1)   -                            (11.1)          
                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                  
 BALANCE AT 30 JUNE 2015                                                                  6.1                        112.2                    (0.1)         (10.1)                  -                  202.7                310.8    (5.7)                        305.1           
                                                                                                                                                                                                                                                                                  
 
 
Group Balance Sheet                                                                               Genus plc 
 
As at 30 June 2015 
 
                                                 Note  2015£m   2014     
                                                                £m       
                                                                         
 ASSETS                                                                  
 Goodwill                                        8     73.9     69.9     
 Other intangible assets                         8     69.8     64.4     
 Biological assets                               9     242.7    208.9    
 Property, plant and equipment                         50.3     40.6     
 Interests in joint ventures and associates            19.6     21.7     
 Available for sale investments                        0.2      0.1      
 Deferred tax assets                                   7.8      4.8      
                                                                         
 TOTAL NON-CURRENT ASSETS                              464.3    410.4    
                                                                         
 Inventories                                           32.2     30.6     
 Biological assets                               9     50.2     44.1     
 Trade and other receivables                     10    74.7     75.1     
 Cash and cash equivalents                             21.3     22.8     
 Income tax receivable                                 0.4      0.4      
 Derivative financial asset                            0.7      -        
 Asset held for sale                                   0.5      0.8      
                                                                         
 TOTAL CURRENT ASSETS                                  180.0    173.8    
                                                                         
 TOTAL ASSETS                                          644.3    584.2    
                                                                         
 LIABILITIES                                                             
 Trade and other payables                              (58.9)   (53.3)   
 Interest-bearing loans and borrowings                 (12.2)   (13.0)   
 Provisions                                            (2.4)    (1.4)    
 Obligations under finance leases                      (1.1)    (1.1)    
 Current tax liabilities                               (6.3)    (6.4)    
 Derivative financial liabilities                      (0.2)    (2.6)    
                                                                         
                                                                         
 TOTAL CURRENT LIABILITIES                             (81.1)   (77.8)   
                                                                         
                                                                         
 Interest-bearing loans and borrowings                 (77.4)   (71.1)     
 Retirement benefit obligations                  11    (63.1)   (58.2)     
 Deferred tax liabilities                              (105.2)  (90.3)     
 Derivative financial liabilities                      (10.0)   -          
 Obligations under finance leases                      (2.4)    (1.5)      
                                                                           
 TOTAL NON-CURRENT LIABILITIES                         (258.1)  (221.1)    
                                                                           
 TOTAL LIABILITIES                                     (339.2)  (298.9)    
                                                                           
 NET ASSETS                                            305.1    285.3      
                                                                           
                                                                             
 
 
                                                     2015£m  2014    
                                                             £m      
                                                                     
 EQUITY                                                              
 Called up share capital                             6.1     6.1     
 Share premium account                               112.2   112.2   
 Own shares                                          (0.1)   (0.1)   
 Translation reserve                                 (10.1)  (12.1)  
 Hedging reserve                                     -       -       
 Retained earnings                                   202.7   178.6   
                                                                     
 Equity attributable to owners of the Company        310.8   284.7   
                                                                     
 Non-controlling interest                            4.3     0.6     
 Put option over non-controlling interests           (10.0)  -       
                                                                     
 Total non-controlling interests                     (5.7)   0.6     
                                                                     
                                                                     
 Total equity                                        305.1   285.3   
                                                                     
 
 
Group Statement of Cash Flows                                                          Genus plc 
 
For the year ended 30 June 2015 
 
                                                                        Note  2015£m  2014£m  
                                                                                              
 NET CASH FLOW FROM OPERATING ACTIVITIES                                12    34.8    32.3    
                                                                                              
 CASH FLOWS FROM INVESTING ACTIVITIES                                                         
 Dividends received from joint ventures and associates                        2.3     0.9     
 Acquisition of subsidiaries                                            14    (10.3)  (20.9)  
 Purchase of trade and assets                                                 -       (2.0)   
 Acquisition of investment in joint venture                                   (0.8)   (11.2)  
 Purchase of property, plant and equipment                                    (12.0)  (5.1)   
 Purchase of intangible assets                                                (2.8)   (1.5)   
 Proceeds from sale of property, plant and equipment                          0.3     -       
 Proceeds from sale of assets held for sale                                   -       0.3     
                                                                                              
 NET CASH OUTFLOW FROM INVESTING ACTIVITIES                                   (23.3)  (39.5)  
                                                                                              
 CASH FLOWS FROM FINANCING ACTIVITIES                                                         
 Drawdown of borrowings                                                       51.8    48.0    
 Repayment of borrowings                                                      (51.0)  (29.2)  
 Payment of finance lease liabilities                                         (1.5)   (1.4)   
 Equity dividends paid                                                        (11.1)  (10.1)  
 Issue of ordinary shares                                                     -       0.1     
 Debt issue costs                                                             -       (0.8)   
 (Decrease)/increase in bank overdrafts                                       (2.0)   6.4     
                                                                                              
 NET CASH (OUTFLOW)/INFLOW FROM FINANCING ACTIVITIES                          (13.8)  13.0    
                                                                                              
 NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS                         (2.3)   5.8     
                                                                                              
                                                                                              
 Cash and cash equivalents at start of the year                               22.8    18.4    
 Net (decrease)/increase in cash and cash equivalents                         (2.3)   5.8     
 Cash acquired on acquisition                                                 1.5     0.4     
 Effect of exchange rate fluctuations on cash and cash equivalents            (0.7)   (1.8)   
                                                                                              
 TOTAL CASH AND CASH EQUIVALENTS AT 30 JUNE                                   21.3    22.8    
                                                                                              
 
 
Notes to the Preliminary Results                                                       Genus plc 
 
For the year ended 30 June 2015 
 
1.         REPORTING ENTITY 
 
Status of audit 
 
The financial information given does not constitute the Company's statutory accounts for the year ended 30 June 2015 or the
year ended 30 June 2014, but is derived from those accounts. Statutory accounts for the year ended 30 June 2014 have been
delivered to the Registrar of Companies and those for the year ended 30 June 2015 will be delivered following the Company's
annual general meeting. The auditors have reported on those accounts; their reports were unqualified, did not draw
attention to any matters by way of emphasis without qualifying their reports, and did not contain statements under s.
498(2) or (3) Companies Act 2006. 
 
Basis of preparation 
 
The financial information for the year ended 30 June 2015 together with the comparative year has been computed in
accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. 
 
The Group Financial Statements are presented in Sterling, which is the Company's functional and presentation currency. All
financial information presented in Sterling has been rounded to the nearest million at one decimal point. 
 
The principal exchange rates were as follows: 
 
                   Average  Closing  
                   2015     2014     2013   2015   2014   2013   
                                                                 
 US Dollar/£       1.57     1.64     1.57   1.57   1.71   1.52   
 Euro/£            1.32     1.20     1.21   1.41   1.25   1.17   
 Brazilian Real/£  4.26     3.75     3.22   4.89   3.77   3.35   
 Mexican Peso/£    22.68    21.44    20.16  24.68  22.18  19.76  
 
 
While the financial information included in this preliminary announcement has been computed in accordance with IFRSs, this
announcement does not itself contain sufficient information to comply with IFRSs. The Company expects to publish full
financial statements that comply with IFRSs in October 2015. These financial statements have also been prepared in
accordance with the accounting policies set out in the 2014 Annual Report and Financial Statements, as amended by the
following new accounting standards. 
 
New standards and interpretations 
 
The following new standards and interpretation have been adopted in the current period: 
 
·              'Improvements to IFRS 2010-2012 cycle';
·              'Improvements to IFRS 2011-2013 cycle';
·               IFRIC 21 'Levies'; and
·               Amendments to 'Offsetting Financial Assets and Financial Liabilities' (IAS 32), 'Investment Entities' (IFRS
10,
                 IFRS 12 and IAS 27), 'Recoverable Amounts Disclosures for Non-Financial Assets' (IAS 36), 'Novation of
                 Derivatives and Continuation of Hedge Accounting' (IAS 39), 'Defined Benefit Plans: Employee
                 Contributions' (IAS 19). 
 
There has been no significant impact on the results or disclosures for the current period from the adoption of these new
standards and interpretations. 
 
At the date of authorisation of these Group Financial Statements, the following standards and interpretations which have
not been applied in preparing these Group Financial Statements were in issue but not yet effective (and in some cases had
not yet been adopted by the EU): 
 
·                 IFRS 9 'Financial Instruments'; 
 
·                 IFRS 14 'Regulatory Deferral Response'; and 
 
·                 IFRS 15 'Revenue from Contracts with Customers'. 
 
The Directors anticipate that the adoption of these standards and interpretations in future periods will have no material
impact on the financial statements of the Group, except as follows: 
 
·              IFRS 9 'Financial Instruments', which will introduce a number of changes in the presentation of financial
instruments. 
 
Beyond the information above, it is not practicable to provide a reasonable estimate of the effect of these standards until
a detailed review has been completed. 
 
Going concern 
 
After reviewing the available information including the Group's business plans and after making enquiries, the Directors
have a reasonable expectation that the Group has adequate resources to continue in operational existence for the
foreseeable future.  For this reason, they continue to adopt the going concern basis in preparing the financial
statements. 
 
At 30 June 2015 the Group had net debt of £71.8m (2014: £63.9m) and undrawn committed borrowing facilities of £51.1m. The
Group's credit facilities at the balance sheet date comprised a £65m multi-currency revolving credit facility, a US$100m
revolving credit facility and an amortising US$15m term loan, repayable in instalments by 15 September 2017. We do not
expect the financial covenants on these facilities to prevent the Group making further use of the facilities if required.
This, together with the maturity profile of debt, gives the Directors confidence that the Group has sufficient financial
resources for the foreseeable future.  As a consequence, the Directors believe that the Company is well placed to manage
its business despite current uncertainties in the economic environment. 
 
Non-GAAP measures - adjusted operating profit, adjusted profit before tax and adjusted earnings per share 
 
Adjusted operating profit, adjusted operating profit before tax from continuing operations and adjusted earnings per share
exclude the net IAS 41 valuation movement on biological assets, amortisation of acquired intangible assets, share-based
payment expense, exceptional items and other gains and losses. 
 
We believe these non-GAAP measures provide shareholders with useful information about the Group's trading performance. The
reconciliation between operating profit from continuing operations and adjusted operating profit from continuing operations
is shown on the face of the Group Income Statement. 
 
This preliminary announcement was approved by the Board on 7 September 2015 
 
2.         SEGMENTAL INFORMATION 
 
The Group presents its segmental information on the basis that the chief operating decision maker regularly reviews for
assessing our business performance and allocating resources. 
 
Our business is not highly seasonal and our customer base is diversified, with no individual customer generating more than
2% of revenue. 
 
 Revenue                                    
                              2015   2014   
                              £m     £m     
 Genus PIC                    175.5  152.8  
 Genus ABS                    167.8  157.4  
 Genus Asia                   41.4   46.5   
 Research and Development                   
 Research                     -      -      
 Porcine Product Development  13.8   15.5   
 Bovine Product Development   -      -      
                              13.8   15.5   
                              398.5  372.2  
 
 
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 year is shown on the Group Income Statement. 
 
 Operating profit                             
                              2015    2014    
                              £m      £m      
 Genus PIC                    57.2    49.9    
 Genus ABS                    24.0    24.3    
 Genus Asia                   5.7     6.8     
 Research and Development                     
 Research                     (4.6)   (3.6)   
 Porcine Product Development  (11.6)  (12.5)  
 Bovine Product Development   (12.4)  (11.6)  
                              (28.6)  (27.7)  
 Segment operating profit     58.3    53.3    
 Central costs                (11.1)  (10.4)  
 Adjusted operating profit    47.2    42.9    
                                              
 
 
Other segment information 
 
                              Depreciation  Amortisation  Additions to non-current assets  
                              2015£m        2014£m        2015£m                           2014£m  2015£m  2014£m  
                                                                                                                   
 Genus PIC                    0.5           0.4           6.1                              5.8     0.5     0.5     
 Genus ABS                    1.5           1.2           0.6                              0.6     1.8     1.9     
 Genus Asia                   0.5           0.4                                            -       0.4     0.3     
 Research and Development                                                                                          
 Research                     0.1           -             -                                -       5.2     0.2     
 Porcine Product Development  1.9           1.7           -                                -       0.6     0.7     
 Bovine Product Development   0.2           0.1           -                                -       5.2     2.5     
                              2.2           1.8           -                                -       11.0    3.4     
                                                                                                                   
 Segment total                4.7           3.8           6.7                              6.4     13.7    6.1     
 Central                      1.6           1.3           -                                -       3.3     1.7     
                                                                                                                   
 Total                        6.3           5.1           6.7                              6.4     17.0    7.8     
                                                                                                                   
 
 
                              Segment assets  Segment liabilities  
                              2015£m          2014£m               2015£m   2014£m   
                                                                                     
 Genus PIC                    194.9           198.6                (45.5)   (41.4)   
 Genus ABS                    123.7           107.3                (39.9)   (32.5)   
 Genus Asia                   37.0            38.6                 (7.6)    (7.7)    
 Research and Development                                                            
 Research                     6.0             1.2                  (0.1)    (0.8)    
 Porcine Product Development  110.0           86.1                 (47.6)   (35.0)   
 Bovine Product Development   167.5           149.0                (52.2)   (45.9)   
                              283.5           236.3                (99.9)   (81.7)   
                                                                                     
 Segment total                639.1           580.8                (192.9)  (163.3)  
 Central                      5.2             3.4                  (146.3)  (135.6)  
                                                                                     
 Total                        644.3           584.2                (339.2)  (298.9)  
                                                                                     
 
 
Other exceptional items of £5.1m expense (2014: £2.0m), relate to Genus PIC (£1.5m), Genus ABS (£0.9m) Genus Asia (£0.1m),
Research and Development (£2.8m) and our central segment (£0.2m credit). Note 3 provides details of these exceptional
items. 
 
We consider share-based payments on a Group-wide basis and do not allocate them to reportable segments. 
 
Geographical information 
 
The Group's revenue by geographical segments is analysed below: 
 
 Revenue                                       
                                 2015   2014   
                                 £m     £m     
                                               
 North America                   181.2  153.7  
 Latin America                   59.0   50.2   
 Europe, Middle East and Africa  116.9  121.8  
 Asia                            41.4   46.5   
                                               
                                 398.5  372.2  
                                               
 
 
Non-current assets (excluding deferred taxation and financial instruments) 
 
                                 2015£m  2014£m  
                                                 
 North America                   306.3   261.2   
 Latin America                   51.2    45.2    
 Europe, Middle East and Africa  85.0    84.8    
 Asia                            14.0    14.4    
                                                 
                                 456.5   405.6   
                                                 
 
 
 Revenue by type                                              2015£m  2014£m  
                                                                              
 Sale of animals, semen and associated products and services  314.4   297.7   
 Royalties                                                    77.1    67.1    
 Consulting services                                          7.0     7.4     
                                                                              
                                                              398.5   372.2   
 Interest income (see note 10)                                0.2     0.2     
                                                                              
 Total                                                        398.7   372.4   
                                                                              
 
 
3.         EXCEPTIONAL ITEMS 
 
 Operating (expenses)/income:     2015£m  2014£m  
                                                  
 Acquisition and integration      (1.4)   (1.8)   
 Legal fees                       (2.8)   (0.6)   
 Other (including restructuring)  (1.3)   0.4     
 Pension related                  0.4     -       
                                                  
                                  (5.1)   (2.0)   
                                                  
 
 
During the period, £1.4m of expenses were incurred in relation to the acquisition and integration, principally in relation
to Birchwood and In Vitro Brasil S.A., of £0.3m and £0.9m, respectively. See note 14. 
 
Legal fees of £2.8m (2014: £0.6m) related to an action by ABS Global Inc. against Inguran LLC (aka  Sexing Technologies). 
 
On 14 July 2014, ABS Global, Inc. ('ABS'), a wholly owned subsidiary of the Company, launched a legal action against
Inguran, LLC (aka Sexing Technologies ('ST')), in the US District Court for the Western District of Wisconsin alleging,
among other matters, that ST (i) have a monopoly in the processing of sexed bovine semen in the US and (ii) unlawfully
maintain this monopoly through anticompetitive contractual provisions and the repeated acquisition of exclusive patent
rights related to semen processing.  The legal action aims to remove these barriers and allow free and fair competition in
the sexed bovine semen processing market ('ABS Action').  On the same date, ABS also filed an Inter-Partes Review
application ('IPR') challenging the validity of one of the ST's group patents, US Patent No. 7,195,920 (the '920 patent')
before the US Patent Office. Subsequently, ABS also filed IPRs challenging the validity of ST's group patents US Patent No.
7,820,425 (the '425 patent') and US Patent No. 8,206,987 (the '987 patent'). 
 
On 7 November 2014, ST filed its Answer and Counterclaim to the ABS Action, denying any anticompetitive activities, and
alleging, among other matters, (i) that ABS fraudulently induced ST to enter into the parties' semen sorting agreement,
(ii) that the Company and ABS repudiated and breached the agreement, and (iii) that the Company and ABS have infringed the
'987 patent. 
 
On 13 January 2015 and 15 April 2015 respectively, the Patent Trial and Appeal Board ('PTAB') ruled that ABS had
demonstrated a reasonable likelihood of prevailing on its assertion that relevant claims of the '920 patent and the '425
patent were invalid, and ordered the institution of a trial. 
 
On 31 March 2015, the Court in Wisconsin, among other matters (i) denied ST's motion to transfer the ABS Action to Texas,
confirming that Wisconsin was the appropriate venue, (ii) denied ST's partial motion to dismiss the ABS Action, and (iii)
permitted XY Inc. ('XY'), a subsidiary of ST, to join the litigation.  Subsequently, a revised timetable for the ABS Action
was established, and the trial is now scheduled to commence on 1 August 2016. 
 
On 6 May, 2015 XY filed an Answer and Counterclaim denying the anti-competitive activities and alleging, among other
matters, infringement of the '920 patent and the '425 patent by both ABS and the Company. 
 
On 29 April 2015, the PTAB ruled that ABS had not demonstrated a reasonable likelihood of prevailing on its assertion that
relevant claims of the '987 patent were invalid and declined to order the institution of a trial. ABS will now pursue the
invalidity of this patent through the Wisconsin litigation. 
 
On 12 June 2015, ST was given leave to amend its counterclaims to allege the infringement by ABS and the Company of US
Patent No.  8,198,092 (the '092 patent'). 
 
This Wisconsin litigation continues through discovery, depositions and related preparations for trial.  ABS intends to
continue to vigorously pursue this litigation, in order to seek to enter and compete in this market using its own
technology. 
 
Included within other is £1.2m related principally to refocus the European porcine business as it continues to reduce farm
operations and align with the Group's global strategy. 
 
During the year a settlement gain of £0.4m was recorded in relation to members leaving the Milk Pension Fund. 
 
4.         NET FINANCE COSTS 
 
                                                                             2015£m  2014£m  
                                                                                             
 Interest payable on bank loans and overdrafts                               (1.8)   (1.7)   
 Amortisation of debt issue costs                              (0.4)  (0.4)  
 Other interest payable                                        (0.1)  (0.2)  
 Net interest cost in respect of pension scheme liabilities    (2.3)  (2.9)  
 Net interest cost on derivative financial instruments         (0.2)  (0.5)  
                                                                                             
 Total interest expense                                                      (4.8)   (5.7)   
                                                                                             
                                                                                             
 Interest income on bank deposits                                            0.2     0.2     
                                                                                             
 Total interest income                                                       0.2     0.2     
                                                                                             
 Net finance costs                                                           (4.6)   (5.5)   
                                                                                             
 
 
5.         INCOME TAX EXPENSE 
 
                                                                                       2015£m  2014£m  
 Current tax expense                                                                                   
 Current period                                                                        13.0    10.8    
 Adjustment for prior periods                                                          (0.4)   (0.7)   
                                                                                                       
 Total current tax expense in the Group Income Statement                               12.6    10.1    
                                                                                                       
 Deferred tax expense/(income)                                                                         
 Origination and reversal of temporary differences                                     5.1     (1.0)   
 Adjustment for prior periods                                                          (0.4)   0.2     
                                                                                                       
 Total deferred tax expense/(income) in the Group Income Statement                     4.7     (0.8)   
                                                                                                       
 Total income tax expense excluding share of income tax of equity accounted investees          17.3    9.3   
                                                                                                             
 Share of income tax of equity accounted investees                                             0.7     0.7   
                                                                                                             
 Total income tax expense in the 

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