REG - Genus - Preliminary results
04/09/2025 07:00
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RNS Number : 9217X Genus PLC 04 September 2025
4 September 2025
Genus plc
Preliminary results for the year ended 30 June 2025
STRONG PERFORMANCE AND SUBSTANTIAL STRATEGIC PROGRESS ACHIEVED
Adjusted results(1) Statutory results
Actual currency Constant currency change(2) Actual currency
Year ended 30 June 2025 2024 Change 2025 2024 Change
£m £m % % £m £m %
Revenue 672.8 668.8 1 5 672.8 668.8 1
Operating profit 81.1 67.0 21 30 42.4 6.4 563
Operating profit inc JVs 93.1 78.1 19 30
Profit before tax 74.3 59.8 24 38 28.5 5.5 418
Cash generated by operations 106.2 55.1 93 n/a(3) 106.7 68.8 55
Free cash flow(1,4) 40.9 (3.2) n/a(3) n/a(3)
Basic earnings per share (pence) 81.8 65.5 25 39 29.3 12.0 144
Dividend per share (pence) 32.0 32.0 -
Continued good second half momentum drove strong full year financial
performance
· PIC - Continued strong trading across the Americas and Asia in
the second half; adjusted operating profit including joint ventures increased
16%(2) for the year
· ABS - Value Acceleration Programme ("VAP") initiatives delivering
significant adjusted operating profit and cash flow improvement; substantial
improvement in adjusted operating profit to £19.5m (FY24: £14.0m)
· Group adjusted operating profit including joint ventures
increased 19% to £93.1m in actual currency driven by broad-based growth in
PIC and VAP actions benefitting ABS
· Adjusted profit before tax ("PBT") increased 24% to £74.3 in
actual currency (38% increase in constant currency) including the net £3.7m
FDA milestone receipt from the Group's Chinese partner Beijing Capital
Agribusiness
· Statutory PBT of £28.5m (FY24: £5.5m) was predominantly
impacted by a £13.3m decrease in the non-cash IAS41 fair value valuation of
biological assets and net exceptional expenses of £11.4m (FY24: £24.6m)
· Adjusted earnings per share increased 25% and final dividend
maintained at 21.7p per share with 2.6x1 adjusted earnings cover, in line with
our policy
· Very strong adjusted cash generated by operations of £106.2m (FY24:
£55.1m) and conversion1 of 114% (FY24: 71%) resulting in record free cash
inflow1 of £40.9m (FY24: £3.2m outflow), inclusive of £24.2m (FY24:
£17.9m) of expected exceptional cash outflows
· Net debt(1) of £228.2m down £20.5m from prior year, and a year-end
net debt to adjusted EBITDA ratio of 1.5x(1) (30 June 2024: 2.0x(1)),
calculated as per our financing facility, driven by stronger free cash flow
and lower USD debt on translation to sterling
Substantial strategic progress achieved
· Porcine: Continued growth ex-China with total royalty revenue
increasing 5% in constant currency, new royalty customer momentum continued in
China with 12 new royalty customer wins in the year and 25 new royalty
customers now signed over the last two years
· PRRS(5) Resistant Pig ("PRP"): Landmark U.S. Food and Drug
Administration ("FDA") approval of the PRP gene edit for use in the U.S. food
supply chain achieved in April 2025; good continuing progress with regulators
in Canada, Mexico, Japan and other international jurisdictions
· Bovine: VAP Phase 2 successfully completed, delivering annualised
adjusted operating profit benefit of £10m with £8m realised in FY25; VAP
Phase 3 initiatives identified and being actioned with an annualised adjusted
operating profit benefit of approximately £9m, with an estimated £6m
expected to be realised in FY26; De Novo joint venture acquisition in October
2024 delivering improvements in proprietary genetic product development
Accelerated Chinese porcine joint venture formation announced separately today
· Genus and its Chinese strategic partner, Beijing Capital Agribusiness
("BCA"), have signed agreements to accelerate the formation of a Chinese joint
venture 51% owned by BCA and 49% owned by Genus
· Joint venture formation strengthens PIC China's local positioning,
accelerates the long-term growth opportunity and provides the best possible
route to achieving PRP commercialisation in China
· Accelerated value crystallisation with retained future economic
rights; Genus will receive a gross cash payment of US$160m upon completion
(estimated US$140m, net of tax and transaction costs), an accelerated timeline
for the US$7.5m of remaining milestone payments under the original agreements
and intellectual property royalties from the joint venture on PRP sales in
China that are consistent with the original agreements
FY26 outlook in-line with market expectations
· Market conditions are stable albeit management remains vigilant of
potential geopolitical-driven market volatility
· Broadly neutral currency impact expected in FY26 if current exchange
rates continue throughout the fiscal year
· The Board expects significant growth in Group adjusted profit before
tax in constant currency, in line with current market expectations(4)
Commenting on the performance and outlook, Jorgen Kokke, Chief Executive,
said:
"Genus achieved a strong performance in FY25 as we executed our strategic
priorities. PIC's growth was broad-based and the business won significant new
royalty customers in China. ABS profitability was substantially improved,
primarily through VAP initiatives. In addition, we secured the landmark U.S.
FDA approval for our PRP gene edit and this tremendous achievement is
testament to our teams and partners who have been working on the PRP programme
for over a decade. We look forward to FY26 with increasing confidence and will
continue to focus on executing our strategic priorities."
Results presentation today
Management is hosting an in-person results presentation and Q&A session
for sell-side analysts today at 09:00 at Peel Hunt's London offices (100
Liverpool Street, London EC2M 2AT). Those unable to attend in person can also
join remotely; please contact Toto Berger at Burson Buchanan for details:
genus@buchanan.uk.com.
Enquiries:
Genus plc (Jorgen Kokke, Chief Executive Officer; Andy Russell, Chief Tel: 01256 345970
Financial Officer; Anand Date, Investor Relations & Sustainability
Director)
Burson Buchanan (Charles Ryland / Mark Court / Toto Berger / Jamie Hooper) Tel: 0207 4665000
About Genus
Genus's core commercial proposition is helping farmers rear healthier animals
that produce more high-quality animal protein with fewer resources. Genus
advances genetic improvement through genomic selection and biotechnology. The
Group sells its products and services to livestock farmers and food producers
predominantly 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 in
certain markets.
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 year ended 30 June 2025 at the average exchange rates applied
to adjusted operating profit for the year ended 30 June 2024
(3) n/a = not applicable
(4) The company compiled consensus range for FY26 adjusted profit before tax
is £76.1m to £86.0m with an average of £79.0m. This is based upon 9 analyst
estimates
(5) Porcine Reproductive and Respiratory Syndrome
CHIEF EXECUTIVE'S REVIEW
Group Performance
Genus performed strongly during 2025, both strategically and operationally
with broad-based growth in PIC and VAP actions benefitting ABS. Group revenue
increased by 5% in constant currency and 1% in actual currency. Adjusted PBT
increased by 38% in constant currency and 24% in actual currency, whilst
statutory PBT increased by £23.0m.
PIC performed well with every region except Europe achieving higher volume,
royalty revenue and adjusted operating profit. Latin America was the stand-out
region with adjusted operating profit growth of 14%(2) in constant currency.
In Asia, a more stable market environment in China led to adjusted operating
profit increasing 70% to £17.2m (FY24: £10.1m) in constant currency driven
predominantly by higher by-product revenue. PIC's success in winning new
Chinese royalty customers over the last two years has yet to materially impact
its profitability in the region since it takes approximately two years for
royalty income to begin ramping up. In Europe, industry disease challenges
resulted in adjusted operating profit being 4%(2) lower than last year's
strong performance. Overall, PIC's volume increased 9%, revenue increase 8%(2)
and royalty revenue increased 5%(2), in constant currency. Adjusted operating
profit (including joint ventures) increased by 16% in constant currency.
ABS adjusted operating profit improved significantly in FY25, driven
predominantly by VAP initiatives. These VAP benefits, including Phase 1
(actioned in FY24) and Phase 2 (actioned in FY25), totalled £11.8m in the
year and were primarily actioned in North America and Europe, where adjusted
operating profit increased 26%(2) and 21%(2), respectively. In Asia and Latin
America, the demand for China dairy and Brazil beef continued to be
challenging. For the year, total ABS volume grew 5%, revenue grew 2%(2) and
adjusted operating profit increased 53%(2).
Exchange rate movements were a significant headwind during the year with
Mexican Peso and Brazilian Real depreciation against sterling being
particularly impactful. The total translation impact on Group profit before
tax was £8.5m.
Genus's Strategic Priorities
During FY25 we made significant progress against our three strategic
priorities.
1. Continue growth in porcine, with more stable growth in China
PIC continued to demonstrate that it has industry-leading genetics,
underpinned by a strong supply chain and customer care. Notable achievements
in the year included winning 12 new royalty customers in China and continued
strong growth in the Americas.
Alongside today's preliminary results release, we have also announced the
acceleration of our joint venture formation with our Chinese partner, BCA.
This localises our business and accelerates the long-term growth opportunity
for PIC China as well as cementing both parties' commitment to achieving PRP
commercialisation in China.
2. Deliver successful commercialisation of our PRP gene edit and deliver
attractive returns from R&D
We made excellent progress with our PRP programme, after many years of effort
achieving a key objective as we received regulatory approval from the U.S. FDA
in April 2025. Achieving this significant milestone speaks to Genus's
strengths in innovation and the quality of our people. Successful
commercialisation in the US will require us to obtain approvals in other key
export markets, namely Mexico, Canada and Japan. We continue to make progress
with these and other international regulators, including in China. Brazil,
Colombia, the Dominican Republic and Argentina have already issued positive
determinations, which means they will regulate the PRP in the same way as
other pigs. In the medium-term, we remain excited by the opportunities in
disease resistance and reproductive technology.
Successful R&D is at the core of our business and we continue to refine
our portfolio, as we align R&D with our businesses and ensure that we
invest in the most-attractive opportunities.
3. Drive greater value from bovine
We initiated VAP in FY24, to accelerate value creation in ABS. In FY25 we
continued with Phase 2, focusing on selectively centralising aspects of ABS's
operations, realising further benefits from supply chain integration, and
optimising our product allocation. Overall, VAP benefitted ABS's adjusted
operating profit by £11.8m in FY25, of which Phase 2 contributed £8m,
equivalent to £10m on an annualised basis. The first two phases have already
delivered a total annualised benefit to operating profit of £21m. We have now
commenced implementing Phase 3 and we expect this phase to contribute £6m to
profit in FY26, with an annualised benefit of £9m.
In addition, we strengthened our genetic supply chain in ABS, through the
acquisition of the remaining shares in De Novo.
Our People and Culture
Our progress during the year was made possible by the commitment of our people
to the company, our customers and each other. I would like to express my
gratitude to them all.
We supported our people by continuing to nurture a high-performing and
inclusive culture in which they can learn, grow and thrive. This included
taking further steps to embed our refreshed values by sharing and celebrating
stories of colleagues who are demonstrating them every day. We also
strengthened core processes that underpin our culture, including onboarding
and performance management, while expanding the range of learning
opportunities and resources we offer.
In parallel, we enhanced talent management by implementing retention
strategies for key roles and strengthening succession planning. We also
enhanced our ability to attract new talent to the company through proactive
communication and engagement across different platforms.
Underpinning this work, we continued to improve the way we communicate and
engage with colleagues in all areas of the company. This included bringing
together our top 50 senior leaders to ensure alignment with our priorities and
their role in strengthening our culture.
As previously announced, Alison Henriksen retired from her position as Genus's
Chief Financial Officer ("CFO") on 31 July 2025. Alison made a significant
contribution to Genus's development over the last five years and her financial
leadership was instrumental in building Genus's strong growth platform from
which we will continue to grow for many years to come.
Following a comprehensive search process, the Board appointed Andy Russell as
CFO and Andy joined the company on 1 August 2025. Andy is an experienced CFO
and joined Genus after nearly 12 years with global medical device manufacturer
Smith & Nephew plc, most recently as Senior Vice President, Group Finance
and M&A, operating as deputy to the Group CFO. I am delighted that we were
able to secure an executive of Andy's calibre and look forward to working
closely with him to continue delivering Genus's strategic priorities.
Helping Customers Achieve Their Sustainability Goals
Genus's core commercial proposition is helping farmers rear healthier animals
that produce more high-quality animal protein with fewer resources. Our elite
pigs, for instance, grow faster and convert feed to protein more efficiently
than non-elite pigs. Daughters of our elite bulls produce greater volumes of
more nutritious milk per unit of input (for example, feed or water) than
non-elite cows. Driving continuous genetic improvement in our elite herds is
therefore intrinsically linked with improved sustainability outcomes for
bovine and porcine protein producers.
In FY25, PIC completed a life cycle assessment ("LCA") in Europe which showed
that its conventional genetics reduce emissions by more than 7% against the
industry average. This result goes hand-in-hand with PIC's North American LCA,
conducted in FY24, which showed a similar level of emissions reduction through
the use of PIC's conventional genetics compared with industry average
genetics. Our LCAs are industry leading and have been completed to the highest
standard of scientific rigour and methodological integrity. The North American
base model has completed a full academic peer review and the LCAs have been
developed to conform with ISO standards 14040, 14044 and 14046. Looking ahead,
we believe the PRP will further improve these figures as better animal health
leads to increased production and improved animal welfare.
ABS also conducted an LCA during the year to quantify the environmental impact
of NuEra Genetics in beef-on-dairy production systems in the UK and US. ABS's
LCA showed that NuEra Genetics had a 4% to 9% potential reduction in climate
change impact relative to benchmark genetics (excluding ABS genetics) without
detrimental effects to other emissions to air, water, and land.
Financial and Operating Review
Financial Review
In the year ended 30 June 2025, Group revenue grew 1% in actual currency (a
5%(2) increase in constant currency). Adjusted operating profit including
joint ventures increased by 19% (30%(2) in constant currency), reflecting
broad-based growth from PIC and significant adjusted operating profit
improvement at ABS driven mainly by VAP initiatives. R&D investment
decreased by 24% (22%(2) in constant currency) as planned, reflecting
continued focus on the alignment of R&D workstreams with Genus's strategic
priorities.
Adjusted profit before tax of £74.3m increased 24% in actual currency (38% in
constant currency), with interest expense increasing from £18.3m to £18.8m
(a 3%(2) increase in constant currency) primarily from higher average
borrowings.
On a statutory basis, profit before tax was £28.5m (FY24: £5.5m). The
adjusting items between the statutory and adjusted profit before tax had a
lower impact this year predominantly due to a £13.3m decrease (2024: £23.2m
decrease) in the non-cash IAS41 fair value of the Group's biological assets
and net exceptional expenses of £11.4m (2024: £24.6m net expense). The full
reconciliation can be found further below. Basic earnings per share on a
statutory basis were 29.3 pence (2024: 12.0 pence).
Exchange rate movements were a significant headwind during the year with
Mexican Peso and Brazilian Real depreciation against sterling being
particularly impactful. The total translation impact on Group profit before
tax was £8.5m compared with FY24.
Revenue
Revenue increased 1% in actual currency (a 5%(2) increase in constant
currency) at £672.8m (FY24: £668.8m). PIC's revenue increased by 3% (a 8%(2)
increase in constant currency), with strategically important royalty revenue
increasing by 5%(2) in constant currency. In ABS, revenue decreased by 2% (a
2%(2) increase in constant currency), while sexed revenue increased 6% in
constant currency reflecting the continuing success of Genus's sexed genetics
and IntelliGen processing capability.
Adjusted Operating Profit Including JVs
Actual currency Constant currency change
Year ended 30 June 2025 2024 Change
Adjusted Profit Before Tax(1) £m £m % %
Genus PIC 111.9 103.6 8 16
Genus ABS 19.5 14.0 39 53
R&D (16.5) (21.8) 24 22
Central costs (21.8) (17.7) (23) (29)
Adjusted operating profit inc JVs 93.1 78.1 19 30
Net finance costs (18.8) (18.3) (3) (3)
Adjusted profit before tax 74.3 59.8 24 38
(1) Includes share of adjusted pre-tax profits of joint ventures and removes
share of adjusted profits of non-controlling interests
Adjusted operating profit including joint ventures was £93.1m (FY24:
£78.1m), a 30%(2) increase in constant currency. The Group's share of
adjusted joint venture operating profit, primarily from our Brazilian joint
venture with Agroceres, was higher than prior year at £12.0m (FY24:
£10.2m).
PIC's adjusted operating profit including joint ventures increased by 16%(2)
in constant currency with growth in the Americas and Asia partially offset by
Europe. Spend on PRP increased in the year, as planned, due to increased
marketing activity but this was offset by the net receipt of a £3.7m
milestone payment from the Group's Chinese partner, Beijing Capital
Agribusiness, which was paid following FDA approval.
ABS's adjusted operating profit increased by 53% in constant currency driven
by VAP initiatives that delivered £11.8m of benefit in the year. Volume
performance was also robust with overall growth of 5% and sexed growth of 11%,
with the underlying sexed mix shift continuing. China (dairy) and Brazil
(beef) continued to be challenging markets but elsewhere the trading
environment improved from prior year. Following on from Phases 1 and 2,
management has initiated VAP Phase 3 to be actioned in FY26. This will target
an annualised adjusted operating profit benefit of £9m, with £6m expected to
be realised in-year.
Statutory Profit Before Tax
The table below reconciles adjusted profit before tax to statutory profit
before tax:
2025 2024
£m £m
Adjusted Profit Before Tax 74.3 59.8
Operating loss attributable to non-controlling interest - (0.9)
Net IAS 41 valuation movement on biological assets in JVs and associates (0.9) 14.6
Tax on JVs and associates (2.0) (5.7)
Adjusting items:
Net IAS 41 valuation movement on biological assets (13.3) (23.2)
Amortisation of acquired intangible assets (5.6) (5.8)
Impairment of goodwill (1.5) -
Share-based payment expense (6.9) (7.0)
Other gains and losses (4.2) (1.7)
Exceptional items (11.4) (24.6)
Statutory Profit Before Tax 28.5 5.5
Statutory profit before tax was £28.5m (2024: £5.5m), reflecting the higher
adjusted profit performance, lower biological asset value reduction and lower
net exceptional expenses.
The Group's net IAS 41 valuation of biological assets comprised a £1.7m
reduction (2024 restated: £14.8m increase) in porcine biological assets, with
a marginally lower breeding sales percentage being partially offset by an
increase in the ratio of boars to gilt sales and the increase relating to the
restocking of Benxi farm following a health break earlier in the year, and a
£11.6m reduction (2024 restated: £38.0m reduction) in bovine biological
assets, reflecting higher production costs, lower inventory and lower sales
estimates.
Share-based payment expense was £6.9m (2024: £7.0m). These reconciling items
are primarily non-cash, can be volatile and do not correlate to the underlying
trading performance in the year.
Exceptional Items
There was an £11.4m net exceptional expense in the year (2024: £24.6m net
expense). As part of ABS's on-going VAP, significant one-off expenses were
recognised in relation to staff redundancies (£4.4m), fixed asset and
inventory write downs (£0.6m) and consultancy fees (£3.8m). Professional
fees contributed £1.9m of exceptional cost, primarily incurred in relation to
potential corporate transactions.
Net Finance Costs
Net finance costs increased to £18.8m (2024: £18.3m), primarily due to an
increase in average borrowings during the year. Average borrowings increased
by 4% to £243.6m (2024: £234.4m) resulting in a further £0.6m increase in
interest costs in the year. Average interest rates in the period were broadly
comparable at 6.26% (2024: 6.20%), raising the cost of like-for-like
borrowings by £0.1m.
Amortisation costs in the year were £0.9m (2024: £0.9m) and within other
interest there was IFRS 16 finance lease interest of £2.4m (2024: £2.8m)
with the discount interest unwind on the Group's pension liabilities and put
options totalling £0.4m (2024: £0.5m). Foreign interest in the year was an
income of £0.1m (2024: income of £0.4m).
Taxation
The statutory profit tax charge for the year, including share of income tax of
equity accounted investees of £11.2m (2024: £8.8m), represents an effective
tax rate (ETR) of 36.7% (2024: 78.6%). The decrease in the statutory ETR of
41.9 points results primarily from an increase in profit before tax to £28.5m
(2024: £5.5m) and a reduction in non-deductible expenses of £2.2m (2024:
£5.8m) from decreased corporate transaction activity.
The adjusted profit tax charge for the year of £20.4m (2024: £16.8m)
represents an ETR on adjusted profits of 27.5% (2024: 28.1%). The Group
adjusted ETR of 27.5% is higher than the UK statutory rate of 25%, primarily
due to higher overseas tax rates and disallowed interest under the UK
Corporate Interest Restriction rules upon which no deferred tax is recognised.
The expected adjusted profit for the Group in FY26 is in the range of 26-28%.
Earnings Per Share
Adjusted basic earnings per share increased by 25% (39% in constant currency)
to 81.8 pence (2024: 65.5 pence) from the broad-based PIC profit growth and
ABS VAP actions. Basic earnings per share on a statutory basis were 29.3 pence
(2024: 12.0 pence), taking into account the factors above and lower impacts
from IAS 41 valuation movements and exceptional items.
Biological Assets
A feature of the Group's net assets is its substantial investment
in biological assets, which under IAS 41 are stated at fair value. At 30
June 2025, the carrying value of biological assets was £268.3m (2024
restated: £308.6m), as set out in the table below.
The balance sheet at 30 June 2024 has been restated by a reduction of £41.1m
in biological assets. During FY25 management reviewed its approach in
determining the fair value of bovine and porcine biological assets and
concluded that there was insufficient recent third-party market transactions
to support the approach of using a long-term pre-tax risk adjusted discount
rate. As such management shortened its view of a long term pre-tax adjusted
rate to 10 years consistent with the pre-tax cashflows and this resulted in an
increase in the risk adjusted discount rate. For the year ended 2024 there was
no material effect on the Group Income Statement, Group Statement of
Comprehensive Income and no impact on the Group Statement of Cash Flows.
Therefore, there has been no restatement of the Group Income Statement and no
adjustment to earnings per share.
restated
2025 2024
£m £m
Non-current assets 219.0 256.3
Current assets 34.7 32.3
Inventory 14.6 20.0
268.3 308.6
Represented by:
Porcine 209.3 232.5
Dairy and beef 59.0 76.1
268.3 308.6
The movement in the overall balance sheet carrying value of biological assets
of £40.3m includes the effect of an exchange rate translation decrease of
£20.3m. Excluding the translation effect and the impact of the disposal of
our Luodian farm there was a net fair value impact of :
· a £1.7m decrease in the carrying value of porcine biological assets,
with a marginally lower breeding sales percentage being partially offset by an
increase in the ratio of boars to gilt sales and the increase relating to the
restocking of Benxi farm following a health break earlier in the year; and
· a £11.6m decrease in the bovine biological assets carrying value,
primarily reflecting higher production costs, lower inventory and lower
estimates, based on market data, of the semen sales price attributable to the
biological asset value
The historical cost of these assets, less depreciation, was £72.0m at 30 June
2025 (2024: £80.9m), which is the basis used for the adjusted results. The
historical cost depreciation of these assets included in adjusted results was
£16.4m (2024: £15.3m).
Retirement Benefit Obligations
The Group's retirement benefit obligations at 30 June 2025 were £6.9m (2024:
£6.6m) before tax and £5.7m (2024: £5.4m) net of related deferred tax. The
largest element of this liability now relates to some legacy unfunded pension
commitments dating prior to Genus's acquisition of PIC.
Robust investment strategies mean our two main defined benefit obligation
schemes have remained in sound financial positions. Prior to any IFRIC 14
amendments, both the Dalgety Pension Fund ("DPF") and our share of the Milk
Pension Fund reported IAS 19 surpluses. Formal notice to wind-up the DPF was
given by the scheme's sponsoring employers on 13 February 2025, as all member
benefits have now been secured with insurance companies, following the
completion of the GMP equalisation exercise. Wind-up is expected to complete
in the first quarter of 2026.
Cash Flow
2025 2024
Free Cash flow £m £m
Adjusted EBITDA 119.8 108.9
Cash received from joint ventures 6.1 4.7
Working capital 11.3 (11.2)
Biological assets 1.3 (9.6)
Net capital expenditure (18.2) (24.0)
Lease repayments (14.1) (13.7)
Adjusted cash from operating activities 106.2 55.1
Cash conversion % 114% 71%
Exceptional items (24.2) (17.9)
Pension contributions, provisions & other (1.6) (1.4)
Interest and tax paid (39.5) (39.0)
Free cash flow inc. lease repayments 40.9 (3.2)
Adjusted cash from operating activities of £106.2m (2024: £55.1m), was
driven by strong growth in adjusted EBITDA, which reached £119.8m (2024:
£108.9m), and significant improvements in working capital compared to FY24 of
£22.5m, primarily due to enhanced inventory management, particularly within
the ABS business, and improved cash collections. Genus also recorded lower
outflows related to biological assets compared with the prior year, which had
been impacted by restocking at PIC's Aurora production facility and farm
stockings in China. Net capital expenditure was lower, at £18.2m (2024:
£24.0m), as planned. Cash flow conversion in FY25 was 114% (FY24: 71%),
benefiting from the strong working capital management and the reduction in
other capital investment outflows, and is far in excess of our annual target
for cash flow conversion of at least 70%, which we also expect to exceed in
this coming year.
Free cash flow, including lease repayments, totalled £40.9m (2024: £3.2m
outflow), and was a record, despite being impacted by exceptional item
outflows of £24.2m (2024: £17.9m), also as planned. These included £6.5m
related to FY24 corporate transactions that did not complete, £7.9m for ST
settlement payments, and £8.8m for ABS VAP restructuring and consulting
costs. The cash outflow from investments, including joint venture loans, was
£4.3m (2024: nil), primarily related to a £2.6m cash outflow for the first
payment to acquire the remaining DeNovo non-controlling interest.
Credit Facilities and Net Debt
On 10 June 2025, the company renewed its Facilities Agreement with a group of
eight banks and at the balance sheet date, the Company's facilities under this
agreement comprised a £220m multi-currency revolving credit facility ('RCF')
and a USD150 million RCF. The term of the new facility is four years, maturing
on 9 June 2029. The facility includes two one-year extension options,
exercisable not more than 60 days, nor less than 30 days, prior to the first
and second anniversaries of the signing date of 10 June 2025. The facility
also includes an uncommitted £100m accordion feature for future business
development opportunities. In addition to the RCFs, the Company has c£13m of
unilateral facilities supporting its GBP, EUR, and USD pooling arrangements.
The Company had headroom of £119.4m (2024: £106.7m) in its combined
facilities at 30 June 2025.
Net debt decreased to £228.2m at 30 June 2025 (2024: £248.7m) supported by a
free cash inflow of £40.9m and a £7.5m improvement in net debt through the
LuoDian joint venture agreement, and after dividend payments of £21.1m and a
£10.6m non-cash increase in net debt from the deferred consideration for the
acquisition of the remaining De Novo non-controlling interest. Net debt also
benefited from foreign exchange translation on the US dollar loan facilities
of £8.2m. The ratio of net debt to adjusted EBITDA as calculated under our
financing facilities at the year-end decreased to 1.5 times (2024: 2.0 times)
which remains in line with our medium-term objective of having a ratio of net
debt to EBITDA of between 1.0 - 2.0 times. Net debt as calculated under our
new Facility Agreement includes bank guarantees but excludes IFRS 16 lease
liabilities up to a cap of £60m (2024: cap of £30m). The effect of this
change in the treatment of leases on the net debt ratio at 30 June 2025, was
an improvement of 0.14 times. At the end of June 2025, interest cover was at 8
times (2024: 8 times).
Capital allocation priorities and return on adjusted invested capital
Subject to managing Group debt within the stated leverage range noted above,
the Group's capital allocation framework prioritises the investment of cash in
areas that will deliver future earnings growth and strong cash returns on a
sustainable basis. Our first priority is investments in our existing business
to drive organic growth, including capital expenditure on infrastructure,
innovation in new products and the development of our people. Our second
priority is to assess the potential for disciplined value enhancing
investments in current and adjacent market niches, to supplement our core
organic growth. These investments can bring new technology, intellectual
property and/or talent into the Group and can expand our market reach.
After assessing potential investment opportunities, the Board may consider
whether it is appropriate to return additional value to shareholders over and
above the Group's progressive ordinary dividend policy. The quantum and
structure of any additional return of value to shareholders would be
determined subject to prevailing market conditions.
In FY25, Group return on adjusted invested capital, as defined in the
alternative performance measures glossary, was higher at 14.7% (FY24: 11.5%),
reflecting an increase in adjusted operating profit including joint ventures
after tax to £67.5m (2024: £56.2m), due to significant adjusted operating
profit improvement and a 0.6 point reduction in the adjusted effective tax
rate. Adjusted invested capital decreased by 6% to £460.1m (2024: £489.5m),
predominantly due to lower working capital and a reduction in leased farm
assets through the LuoDian joint venture agreement earlier in the year.
Dividend
Recognising the importance of balancing investment for the future with
ensuring an attractive return for shareholders, the Board is recommending an
unchanged final dividend of 21.7 pence per ordinary share, consistent with the
prior year final dividend. When combined with the interim dividend, this will
result in an unchanged total dividend for the year of 32.0 pence per ordinary
share (FY24: 32.0 pence per share). Dividend cover from adjusted earnings
increased to 2.6x (FY24: 2.0x), in-line with our targeted range of 2.5x to
3.0x.
It is proposed that the final dividend will be paid on 5 December 2025 to the
shareholders on the register at the close of business on 7 November 2025.
(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 statutory measures, and not as a substitute for or
as superior to them. For more information on APMs, see the APM Glossary
(2) Constant currency percentage movements are calculated by representing the
results for the year ended 30 June 2025 at the average exchange rates applied
to adjusted operating profit for the year ended 30 June 2024
Genus PIC - Operating Review
Actual currency Constant currency
Twelve months ended 30 June 2025 2024 Change Change
£m £m % %
Revenue 362.9 352.5 3 8
Porcine product development expense 34.6 38.0 (8) (12)
Adjusted operating profit exc JV 100.3 93.8 7 13
Adjusted operating profit inc JV 111.9 103.6 8 16
Adjusted operating margin exc JV 27.6% 26.6% 1.0pts 1.3pts
Market conditions for pork producers were generally positive during the year,
supported in particular by lower feed costs. In North America, pork producers
generated small positive profits throughout the year. Producers in Latin
America enjoyed a good year for profitability as pork prices were supported by
strong export volume. In Europe, pork prices remained high although the
industry grappled with disease challenges as well as ongoing political and
regulatory headwinds to production. Finally in China, the market environment
was relatively stable as the pork price to feed ratio remained above
break-even levels throughout the year.
Against this backdrop, PIC achieved revenue growth of 8%(2) driven by a 10%
increase in volume. Strategically important royalty revenue increased 5%(2)
with growth in every trading region. Adjusted operating profit including JVs
increased 16%(2) due to strong growth in PIC's Americas and Asia trading
regions as well as strong cost control. PRP costs decreased £2.8m year on
year as increased market acceptance spend was offset by receipt of a net
£3.7m milestone payment from the Group's Chinese partner, Beijing Capital
Agribusiness.
Sterling appreciation, particularly against the Mexican Peso and Brazilian
Real, resulted in a significant £7.9m translation headwind during the year.
As a result, adjusted operating profit including JVs increased 8% in actual
currency.
PIC's product development teams continued to strengthen PIC's genetic
leadership, driving $4.15 of genetic profit gain in the year. PIC remains at
the forefront of implementing data analytics and digital phenotyping tools to
improve its selection engine. During the year, PIC also completed an LCA in
Europe which showed that its conventional genetics reduce emissions by more
than 7% against the industry average. This result goes hand-in-hand with PIC's
North American LCA, conducted in FY24, which showed a similar level of
emissions reduction through the use of PIC's conventional genetics compared to
industry average genetics.
PIC also made significant PRP regulatory progress during the year. In April
2025, the U.S. FDA issued its landmark approval for the Group's PRP gene edit
to be used in the U.S. food supply chain. This approval followed years of
close collaboration with the FDA and represents a significant step on the
pathway to PRP commercialisation in the U.S. Progress with other international
regulators, including Mexico, Canada, Japan and China, also continued to
advance. As a result of regulatory progress, PIC is increasingly focused on
PRP market acceptance activity and spend in this area is expected to increase
in FY26.
Year ended 30 June 2025 Revenue Royalty Revenue Volume (MPEs) Adjusted Operating Profit(+)
Actual Currency
PIC Total £362.9m (+3%) £177.6m (+0.2%) 223.4m (+10%) £111.9m (+8%)
Constant Currency
PIC Total +8% +5% 223.4m (+10%) +16%
NAM +2% +2% +4% +3%
LATAM +20% +11% +15% +14%
EMEA -5% +1% +1% -4%
ASIA +27% +12% +36% +70%
Asia ex-China +46% +25% +38% +35%
NB: Growth rates compared with the same period last year
(+) Including JVs
Regional Trading Commentary
North America achieved an adjusted operating profit increase of 3%*, supported
by a 2%* increase in royalty revenue. Total revenue increased by 2%* on strong
volume growth of 4%. Limited growth in the domestic sow herd helped support
pork prices, which proved to be more resilient to potential tariff risks than
expected by the industry. As a result, pork producers were consistently
profitable through the year.
Latin America had a very strong year, achieving adjusted operating profit
growth of 14%* 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 had a challenging year, with adjusted operating profit decreasing 4%*
with royalty revenue growth of 1%*. Pork prices remained strong and producers
were generally profitable over the period, however disease challenges and
political/regulatory headwinds continued to drive a reduction in the size of
the European sow herd. PIC Europe was particularly impacted by lower animal
sales and health challenges within customer herds, offset by continued
progress in Germany and Spain.
Asia adjusted operating profit increased by 70%* in the year, with royalty
revenue growing 12%*. Excluding China, adjusted operating profit grew 35%* on
royalty revenue growth of 25%*. In China, adjusted operating profit increased
146%* driven predominantly by lower supply chain costs as a result of
increased by-product revenue. Although weakening in the second half, pork
prices in China remained at levels that supported aggregate industry
profitability. PIC China's commercial focus on building recurring royalty
revenue continued to gain strong traction with 12 new royalty customer wins in
the year and 25 new royalty customers now signed over the last two years .
Revenue contribution from these new royalty customers is yet to drive PIC
China profits meaningfully due to the ramp-up profile of new royalty
contracts. Outside China, good progress was made with customers in Vietnam,
the Philippines and South Korea.
* Constant currency growth rate compared with the same period last year
Genus ABS - Operating Review
Actual currency Constant currency
Twelve months ended 30 June 2025 2024 Change Change
£m £m % %
Revenue 307.7 314.9 (2) 2
Bovine product development expense 22.6 23.3 (3) (3)
Adjusted operating profit 19.5 14.0 39 53
Adjusted operating margin 6.3% 4.4% 1.9pts 2.2pts
Bovine markets were varied around the world but generally stronger than the
prior year, with the exception of China. In dairy, producers in the major milk
producing regions enjoyed a stronger period of profitability, supported by
lower feed costs, resulting in milk production growth. The China dairy herd
and production continued to contract, reversing multiple years of supply side
growth in a weaker demand environment. Beef prices, particularly in the
Americas, were very strong throughout the year, driven predominantly by tight
supply. However, growth in beef production continues to be limited in Brazil,
the beef production cycle appears to have stabilized albeit demand for beef
genetics remains subdued.
ABS achieved a volume increase of 5% in the year with sexed volume increasing
11%, beef volume decreasing 3% and conventional dairy volume increasing 6%.
Volume growth in India was particularly strong albeit at low price points;
excluding India, ABS volume increased 1% and sexed volume increased 14%. ABS
revenue increased by 2%* and adjusted operating profit increased by 53%*, a
margin improvement of 2.2pts in constant currency, compared with the prior
year.
VAP initiatives were the primary driver of ABS's strong adjusted operating
profit growth. VAP was initiated in FY24 with the goal of accelerating
Bovine's growth and structurally improving margins, ROIC and cash generation.
During FY25, VAP Phase 2 actions achieved £8.0m of benefit. This resulted in
a total VAP related adjusted operating profit improvement of £11.8m,
including £3.8m of benefit from the annualisation of Phase 1 actions.
Looking to FY26, the annualisation of Phase 2 actions is expected to achieve a
further £2m of adjusted operating profit benefit. In addition, ABS has
commenced a further set of actions in relation to Phase 3 of VAP and these are
targeted to deliver £6m of benefit in FY26 and an annualised benefit of £9m.
Exceptional restructuring costs recognised in relation to VAP activities were
£8.8m in FY25, including £2.4m related to VAP Phase 3.
Spend on bovine product development decreased 3%* in the year as efficiency
savings were realised from the newly combined management of the dairy and beef
product development programmes. ABS also 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, which was made in the first half, gives ABS full control of its
internal Holstein programme and is already delivering improved performance
indicators in ABS's proprietary Holstein herd.
Year ended 30 June 2025 Revenue Sexed Volume (m straws) Volume (m straws) Adjusted Operating Profit
Actual Currency
ABS Total £307.7 (-2%) +11% 25.9m (+5%) £19.5m (+39%)
Constant Currency
ABS Total +2% n/a n/a +53%
NAM +6% +25% +8% +26%
LATAM +5% +7% -2% -6%
EMEA +2% +11% +2% +21%
ASIA -8% 0% +10% -4%
NB: Growth rates compared with the same period last year
Regional Trading Commentary
North America volume increased 8%, comprised of a 25% increase in sexed
volume, flat beef volume and a 13% decrease in dairy conventional volume.
Producers were profitable during the year, supported by lower feed costs,
robust milk prices and record beef prices. Adjusted operating profit increased
26%* 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 decreased 2%, with strong sexed volume growth of 7%, a 1%
increase in dairy conventional volume and a 6% decrease in beef volume. Strong
pricing initiatives helped drive a 5%* increase in revenue. Dairy producers
enjoyed a strong year which helped catalyse greater adoption of sexed
genetics. Demand for beef genetics remained muted, however, although there are
signs that the beef cycle has stabilised. Adjusted operating profit decreased
6%* primarily to a decline in beef volume and high contribution margin embryo
volume.
EMEA volume increased 2%, comprising an 11% increase in sexed volume, a 3%
decrease in beef volume and a 5% decrease in dairy conventional volume. Dairy
producers were generally profitable over the period but adverse weather and
disease, as well as continued regulatory challenges in certain markets, were
headwinds to increased producer confidence. Strong VAP benefits, as well as a
more successful approach to managing late life cycle inventory, drove a
significant 21%* increase in adjusted operating profit.
Asia volume increased 10%, with a flat sexed volume, a 2% 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 2% and conventional dairy volume growing 25% on stronger
product availability and phasing of customer orders. The dairy sector in
China, however, continued to be challenged by weak demand. This was compounded
by the Chinese authorities halting bovine genetic imports from the U.S. in
February 2025 after Bluetongue virus was found in a small number of U.S.
herds. ABS China imports its genetics from the U.S. and whilst the import
restriction resulted in a short-term sales boost in China in the second half,
as customers secured supply of ABS's elite genetics before inventories
diminished, it poses a challenge for ABS China in FY26. Adjusted operating
profit in Asia decreased 4%*.
* Constant currency growth rate compared with the same period last year
Research and Development - Operating Review
Actual currency Constant currency
Year ended 30 June 2025 2024 Change Change
£m £m % %
Gene editing 4.3 6.3 (31) (29)
Other research and development 12.2 15.5 (21) (19)
Net expenditure in R&D 16.5 21.8 (24) (22)
Net expenditure on R&D decreased 22%*, as planned, as efficiency
initiatives actioned in FY24 annualised in FY25. Net expenditure on R&D
fell to 2.5% of Group revenue (FY24: 3.3%) and is expected to remain below 3%
of Group revenue in FY26. 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
Group Income Statement
For the year ended 30 June 2025
Note 2025 2024
£m £m
REVENUE 3 672.8 668.8
Adjusted operating profit 3 81.1 67.0
Adjusting items:
- Net IAS 41 valuation movement on biological assets 12 (13.3) (23.2)
- Amortisation of acquired intangible assets 11 (5.6) (5.8)
- Impairment of goodwill 10 (1.5) -
- Share-based payment expense (6.9) (7.0)
(27.3) (36.0)
Exceptional items (net) 4 (11.4) (24.6)
Total adjusting items (38.7) (60.6)
OPERATING PROFIT 42.4 6.4
Share of post-tax profit of joint ventures and associates retained 14 9.1 19.1
Other gains and losses 5 (4.2) (1.7)
Finance costs 6 (21.4) (22.2)
Finance income 6 2.6 3.9
PROFIT BEFORE TAX 28.5 5.5
Taxation 7 (9.2) (3.1)
PROFIT FOR THE YEAR 19.3 2.4
ATTRIBUTABLE TO:
Owners of the Company 19.3 7.9
Non-controlling interest - (5.5)
19.3 2.4
EARNINGS PER SHARE
Basic earnings per share 8 29.3p 12.0p
Diluted earnings per share 8 28.9p 11.9p
Note 2025
£m 2024
£m
Alternative Performance Measures
Adjusted operating profit 81.1 67.0
Adjusted operating loss attributable to non-controlling interest - 0.9
Pre-tax share of profits from joint ventures and associates excluding net IAS 12.0 10.2
41 valuation movement
Adjusted operating profit including joint ventures and associates 93.1 78.1
Net finance costs 6 (18.8) (18.3)
Adjusted profit before tax 74.3 59.8
Adjusted earnings per share
Basic adjusted earnings per share 8 81.8p 65.5p
Diluted adjusted earnings per share 8 80.6p 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.
Group Statement of Comprehensive Income
For the year ended 30 June 2025
Note 2025 2025 2024 2024
£m £m £m £m
PROFIT FOR THE YEAR 19.3 2.4
Items that may be reclassified subsequently to profit or loss
Foreign exchange translation differences (35.7) (16.0)
Fair value movement on net investment hedges (0.5) 0.4
Fair value movement on cash flow hedges (1.4) (1.6)
Tax relating to components of other comprehensive (expense)/income (5.1) (0.1)
(42.7) (17.3)
Items that may not be reclassified subsequently to profit or loss
Actuarial loss on retirement benefit obligations 19 (18.5) (6.0)
Movement on pension asset recognition restriction 19 16.4 3.9
Interest restriction on IFRIC 14 19 1.8 2.1
Loss on equity instruments measured at fair value - (2.8)
Tax relating to components of other comprehensive (expense)/income (0.1) (0.1)
(0.4) (2.9)
OTHER COMPREHENSIVE EXPENSE FOR THE YEAR (43.1) (20.2)
TOTAL COMPREHENSIVE EXPENSE FOR THE YEAR (23.8) (17.8)
ATTRIBUTABLE TO:
Owners of the Company (23.6) (12.3)
Non-controlling interest (0.2) (5.5)
(23.8) (17.8)
Group Statement of Changes in Equity
For the year ended 30 June 2025
Note Called-up share capital Share premium account Own shares Trans- lation reserve Hedging reserve Retained earnings Total Non- controlling interest Total equity
£m £m £m £m £m £m £m £m £m
BALANCE AT 1 July 2023 (as previously reported) 6.6 179.1 (0.1) 26.7 2.0 360.6 574.9 (7.7) 567.2
Prior period restatement (see note 2) - - - - - (30.4) (30.4) - (30.4)
BALANCE AT 1 July 2023 (restated)(1) 6.6 179.1 (0.1) 26.7 2.0 330.2 544.5 (7.7) 536.8
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
Interest restriction on IFRIC 14, 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 (expense)/income 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 9 - - - - - (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 (restated)(1) 6.6 179.1 (0.1) 10.5 0.9 320.8 517.8 (4.3) 513.5
Foreign exchange translation differences, net of tax - - - (40.8) - - (40.8) (0.2) (41.0)
Fair value movement on net investment hedges, net of tax - - - (0.5) - - (0.5) - (0.5)
Fair value movement on cash flow hedges, net of tax - - - - (1.2) - (1.2) - (1.2)
Actuarial loss on retirement benefit obligations, net of tax - - - - - (14.2) (14.2) - (14.2)
Movement on pension asset recognition restriction, net of tax - - - - - 12.4 12.4 - 12.4
Interest restriction on IFRIC 14, net of tax - - - - - 1.4 1.4 - 1.4
Other comprehensive (expense)/income for the year - - - (41.3) (1.2) (0.4) (42.9) (0.2) (43.1)
Profit for the year - - - - - 19.3 19.3 - 19.3
Total comprehensive (expense)/income for the year - - - (41.3) (1.2) 18.9 (23.6) (0.2) (23.8)
Recognition of share-based payments, net of tax - - - - - 7.4 7.4 - 7.4
Dividends 9 - - - - - (21.1) (21.1) - (21.1)
Adjustment arising from change in non-controlling interest and written put - - - - - (4.4) (4.4) 4.4 -
option
BALANCE AT 30 June 2025 6.6 179.1 (0.1) (30.8) (0.3) 321.6 476.1 (0.1) 476.0
1 See note 2 for details of the prior period restatement.
Group Balance Sheet
As at 30 June 2025
Note 2025 (restated)(1) (restated)(1) 2023
£m 2024 £m
£m
ASSETS
Goodwill 10 102.8 110.3 107.8
Other intangible assets 11 55.3 65.4 66.2
Biological assets 12 219.0 256.3 277.1
Property, plant and equipment 13 160.3 182.0 164.4
Interests in joint ventures and associates 14 62.8 60.5 53.5
Other investments 15 3.2 1.1 8.8
Derivative financial assets - 1.2 4.9
Other receivables 17 10.3 11.8 8.2
Deferred tax assets 7 30.9 28.1 16.5
TOTAL NON-CURRENT ASSETS 644.6 716.7 707.4
Inventories 16 46.2 57.1 61.3
Biological assets 12 34.7 32.3 23.8
Trade and other receivables 17 119.2 135.2 132.1
Cash and cash equivalents 48.0 42.5 36.3
Income tax receivable 6.2 2.1 4.0
Derivative financial assets 0.1 1.9 1.5
TOTAL CURRENT ASSETS 254.4 271.1 259.0
TOTAL ASSETS 899.0 987.8 966.4
LIABILITIES
Trade and other payables 18 (107.7) (123.2) (122.0)
Interest-bearing loans and borrowings (2.9) (4.9) (4.2)
Provisions (0.4) (1.0) (1.8)
Deferred consideration (2.6) (0.6) -
Obligations under leases (13.3) (14.0) (10.0)
Tax liabilities (2.2) (5.2) (7.4)
Derivative financial liabilities (2.2) (1.7) (1.8)
TOTAL CURRENT LIABILITIES (131.3) (150.6) (147.2)
Trade and other payables 18 (0.1) (4.2) -
Interest-bearing loans and borrowings (215.9) (228.2) (196.0)
Retirement benefit obligations 19 (6.9) (6.6) (6.9)
Provisions (0.3) (0.4) (10.3)
Deferred consideration (7.9) (0.2) (0.6)
Deferred tax liabilities 7 (25.8) (33.7) (40.5)
Derivative financial liabilities (1.0) (6.3) (6.2)
Obligations under leases (33.8) (44.1) (21.9)
TOTAL NON-CURRENT LIABILITIES (291.7) (323.7) (282.4)
TOTAL LIABILITIES (423.0) (474.3) (429.6)
NET ASSETS 476.0 513.5 536.8
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 (30.8) 10.5 26.7
Hedging reserve (0.3) 0.9 2.0
Retained earnings 321.6 320.8 330.2
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 476.1 517.8 544.5
Non-controlling interest 22 0.4 1.2 (2.2)
Put option over non-controlling interest 22 (0.5) (5.5) (5.5)
TOTAL NON-CONTROLLING INTEREST (0.1) (4.3) (7.7)
TOTAL EQUITY 476.0 513.5 536.8
1 See note 2 for details of the prior period restatement.
Group Statement of Cash Flows
For the year ended 30 June 2025
Note 2025 2024
£m £m
NET CASH FLOW FROM OPERATING ACTIVITIES 20 67.2 29.8
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends received from joint ventures and associates 14 6.1 4.7
Joint venture and associate loan investment 14 - (2.2)
Disposal of subsidiary investment 14 1.3 -
Sale of other investments - 5.1
Acquisition of Xelect Limited - (2.9)
Acquisition of other investments (2.4) -
Payment of deferred consideration (0.6) -
Purchase of property, plant and equipment (13.4) (14.8)
Purchase of intangible assets (5.2) (9.9)
Proceeds from sale of property, plant and equipment 0.4 0.7
NET CASH OUTFLOW FROM INVESTING ACTIVITIES (13.8) (19.3)
CASH FLOWS FROM FINANCING ACTIVITIES
Drawdown of borrowings 152.8 140.4
Repayment of borrowings (158.2) (108.5)
Payment of lease liabilities (14.1) (13.7)
Equity dividends paid 9 (21.1) (21.0)
Purchase of non-controlling interest in De Novo Genetics LLC (2.6) -
Dividend to non-controlling interest (0.1) -
Debt issue costs (3.3) -
NET CASH OUTFLOW FROM FINANCING ACTIVITIES (46.6) (2.8)
NET INCREASE IN CASH AND CASH EQUIVALENTS 6.8 7.7
Cash and cash equivalents at start of the year 42.5 36.3
Net increase in cash and cash equivalents 6.8 7.7
Effect of exchange rate fluctuations on cash and cash equivalents (1.3) (1.5)
TOTAL CASH AND CASH EQUIVALENTS AT 30 JUNE 48.0 42.5
Notes to the Group condensed Financial Statements
For the year ended 30 June 2025
1. REPORTING ENTITY
Genus plc (the 'Company') is a public company limited by shares and
incorporated in England, United Kingdom under the Companies Act 2006. Its
company number is 02972325 and its registered office is Matrix House, Basing
View, Basingstoke, Hampshire RG21 4FF.
The condensed financial information given does not constitute the Group's
financial statements for the year ended 30 June 2025 or the year ended 30 June
2024 but is derived from those financial statements. The financial statements
for the year ended 30 June 2024 have been delivered to the Registrar of
Companies and those for the year ended 30 June 2025 will be delivered
following the Company's annual general meeting. The auditors have reported on
those financial statements; 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.
2. BASIS OF PREPARATION
We have prepared the condensed financial information for the year ended 30
June 2025 together with the comparative year has been computed in accordance
with international accounting standards in conformity with the requirements of
the Companies Act 2006 and International Financial Reporting Standards
('IFRSs'). The Group condensed Financial Statements have also been prepared in
accordance with IFRSs as issued by the IASB.
Functional and presentational currency
We present the Group condensed Financial Statements in Sterling, which is the
Company's functional and presentational currency. All financial information
presented in Sterling has been rounded to the nearest £0.1m.
The principal exchange rates were as follows:
Average Closing
2025 2024 2023 2025 2024 2023
US Dollar/£ 1.30 1.26 1.21 1.37 1.27 1.27
Euro/£ 1.19 1.17 1.15 1.17 1.18 1.16
Brazilian Real/£ 7.46 6.35 6.20 7.46 7.07 6.08
Mexican Peso/£ 25.83 21.69 22.84 25.75 23.12 21.74
Chinese Yuan/£ 9.35 9.06 8.44 9.84 9.19 9.21
Russian Rouble/£ 118.29 115.46 86.29 107.38 108.18 112.79
While the condensed 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 2025. These financial statements have also been prepared in accordance
with the accounting policies set out in the 2024 Annual Report and Financial
Statements, as amended by the following new accounting standards.
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';
> Amendments to IFRS 16 - 'Lease Liability in a Sale and Leaseback'; and
> Amendments to IAS 21 - 'Lack of Exchangeability'.
Their application has not had any material impact on the disclosures or
amounts reported in the Group condensed Financial Statements.
New standards and interpretations not yet adopted
At the date of the Annual 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';
> IFRS 18 - 'Presentation and Disclosure in Financial Statements';
> Amendment to IFRS 9 and IFRS 7 - 'Classification and Measurement of
Financial Instruments';
> Annual Improvements to IFRS Standards 2023-2025 Cycle;
> Amendments to IFRS 9 and IFRS 7 - 'Contracts Referencing Nature-dependent
Electricity'; and
> Amendments to IFRS 10 and IAS 28 - 'Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture'.
Going Concern
In assessing the Group's going concern and viability, the Directors utilise a
three-step approach focusing on a base case, modelling a 'severe yet plausible
downside' scenario and utilising reverse stress test modelling. The Board
considered the budget and strategic plan alongside the Group's available
finances, strategy, business model, and market outlook. The annually prepared
budget and strategic plan are compiled using a bottom-up process, aggregating
those prepared by PIC, ABS and Xelect. The consolidated Group budget and
forecasts are then reviewed by the Board and used to monitor business
performance. The Strategic Plan forms management's best estimate of the
Group's future performance and position.
The Board has considered the Group's access to available financing, which
consists of the following over the term of the agreement:
> June 2025 - £220m multi-currency RCF, a 150m US dollar RCF.
Additionally, the RCF agreement contains an uncommitted £100m accordion
option which Genus can request a maximum of three occasions over the lifetime
of the facility. The current facility expires in June 2029.
In their assessment of the Group's viability, the Directors have determined
that a three-year time horizon, to June 2028, is an appropriate period. This
was based on the Group's visibility of its product development pipeline, for
example, because of the genetic lag of approximately three years between the
porcine nucleus herds and customers' production systems and the pipeline of
young bulls. The Group's base case modelling shows headroom on all bank
covenant thresholds across the going concern and viability periods.
Our downside modelling has incorporated the Directors' assessment of events
that could occur in a 'severe yet plausible downside' scenario.
The most significant material risks modelled are shown below and these are
consistent with the previous year:
Ensuring biosecurity and continuity of supply.
> Disease outbreaks in our genetic nucleus and bull stud farms,
modelled as a one-off cash cost to clean and restock the farms.
> The impact of severe weather events on our global supply chain and
the wider agricultural industry, modelled as a one-off cash cost.
> Loss of ability to move animals or semen freely (including across
borders) due to disease outbreak, environmental incident or international
trade sanctions and disputes, modelled as a multi-year cash impact resulting
from increased supply costs and lost trading that cannot be replaced in the
short-term.
Managing agricultural market and commodity prices volatility
> Increase in our operating costs due to commodity pricing volatility,
modelled as a multi-year cash reduction.
> Geopolitical tensions and ongoing conflicts in Russia & Ukraine
and the Middle East impact agricultural markets, modelled as a multi-year cash
impact resulting from loss of trade.
Succeeding in growth markets
> US trade tariff policies and failure to appropriately develop our
business in China and other growth markets, modelled as a multi-year cash
impact resulting from a reduction in the forecast growth rate in those
markets.
Individually these scenarios do not result in the elimination of our facility
headroom or breach of bank covenants. If multiple severe but plausible
scenarios were to occur in combination the Board would be able to take
mitigation measures to protect the Group in the short term. These would be
realised through reductions in dividends and postponing capital spend and
strategic investments. We have considered the position if each of the
identified risks materialised individually and where multiple risks occur in
parallel. We have overlaid this downside scenario, net of mitigations, on our
facility headroom and banking covenants. Under this assessment our headroom
remains adequate under these sensitivities including our ability to take
mitigating actions and expectation of renewing appropriate facilities.
To assess the headroom within our going concern and viability assessment, we
performed a reverse stress test looking at the level of performance
deterioration against the base case while applying the mitigations outlined
previously. Over the going concern and viability period the smallest required
reduction in forecast Adjusted Operating Profit to exceed the permissible
ratio of net debt to EBITDA (as calculated under our financing facilities)
would be 24% (2024: 26%). Similarly, a one-off cash cost of an equivalent size
would increase net debt and result in the same outcome. In all reverse stress
scenarios, the covenant would be breached before the facility is exceed.
Based on this assessment, 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 Annual Report. Also,
based on this assessment, the Directors have a reasonable expectation that the
Group will be able to continue in operation and meet its liabilities as they
fall due over the viability period to 30 June 2028. There are no indications
from this assessment that change this expectation when looking beyond 30 June
2028 at the Group's longer-term prospects.
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
Restatement in the 2024 and 2023 Group Balance Sheet
In estimating the fair value of the bovine and porcine biological assets a
discounted cash flow model is used. In assessing the appropriateness of the
discount rate used we consider assumptions and estimates a market participant
may use in establishing a fair value for the assets. The cash flows used in
the model are pre-tax and a long-term pre-tax risk adjusted discount rate is
applied which is derived from the Group's post-tax WACC calculation. IAS 41
requires the cash flows to be applied over the living animals useful life, and
we have estimated this to be 10 years for both species.
During FY25 management reviewed the approach in determining the fair value of
bovine and porcine biological assets. In doing so the historical transaction
information and the discount rate used to establish a fair value were
considered, and it was concluded that there was insufficient recent
third-party market transactions to support the approach of using a long-term
pre-tax risk adjusted discount rate to establish a fair value. As such we
restated the 2024 and 2023 fair values to reflect the shortening of our view
of a long term pre-tax adjusted rate to 10 years consistent with the pre-tax
cash flows and this has resulted in an increase in the risk adjusted discount
rate used from a range of 11.4% to 13.3% if the prior years' approach was
adopted, and revised it to 16% to 22.7%, dependent on species type.
Consequently, the prior period balance sheets at 30 June 2024 and 30 June 2023
have been restated in accordance with IAS 8, and, in accordance with IAS 1
(revised). A balance sheet at 30 June 2023 is also presented together with
related notes. The restatements involved are a reduction in biological assets
at 30 June 2024 and 30 June 2023 of £41.1m and a reduction in related
deferred tax liabilities at 30 June 2024 and 30 June 2023 of £10.7m.
Impact on the Group's Balance Sheet for year ended 30 June 2024
(as reported) 2024 Impact of restatement (restated) 2024
£m £m £m
Non-current assets
Biological assets 297.4 (41.1) 256.3
Non-current liabilities
Deferred tax liabilities (66.3) 10.7 (55.6)
Net assets 543.9 (30.4) 513.5
For the year ended 30 June 2024, there has been no material effect on the
Group Income Statement, Group Statement of Comprehensive Income and no impact
on the Group Statement of Cash Flows. Therefore, there has been no restatement
of the Group Income Statement and there is no adjustment to earnings per
share.
Approval
This preliminary announcement was approved by the board on 3 September 2025.
3. 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:
l Genus PIC - our global porcine sales business;
l Genus ABS - our global bovine sales business; and
l Genus Research and Development - our global spend on research and
development.
A segmental analysis of revenue, operating profit, depreciation, amortisation,
non-current asset additions, segment assets and liabilities and geographical
information is provided below. We do not include our adjusting items in the
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 2025 2024
£m £m
Genus PIC 362.9 352.5
Genus ABS 307.7 314.9
Central 2.2 1.4
672.8 668.8
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 year is shown on the face of the Group Income
Statement.
Adjusted operating profit 2025 2024
£m £m
Genus PIC 100.3 93.8
Genus ABS 19.1 12.7
Genus Research and Development (16.5) (21.8)
Adjusted segment operating profit 102.9 84.7
Central (21.8) (17.7)
Adjusted operating profit 81.1 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 £11.4m net expense (2024: £24.6m net expense). Genus
ABS £8.7m net expense (2024: £16.4m net expense), Genus PIC £0.3m expense
(2024: £0.6m), Genus Research and Development £nil expense (2024: £0.7m)
and our Central segment £2.4m net expense (2024: £6.9m net expense).
Note 4 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 segmental information
Depreciation Amortisation Additions to non-current assets (excluding deferred taxation and financial
instruments)
2025 2024 2025 2024 2025 2024
£m £m £m £m £m £m
Genus PIC 12.0 14.1 4.7 4.8 10.3 41.8
Genus ABS 17.8 18.0 5.3 5.0 21.4 20.0
Genus Research and Development 0.6 0.9 - - 0.8 0.4
Segment total 30.4 33.0 10.0 9.8 32.5 62.2
Central 1.4 1.7 2.9 2.5 1.7 12.5
Total 31.8 34.7 12.9 12.3 34.2 74.7
Segment assets Segment liabilities
2025 (restated)(1) (restated)(1) 2023 2025 (restated)(1) (restated)(1) 2023
£m 2024 £m £m 2024 £m
£m £m
Genus PIC 500.8 556.8 505.8 (113.2) (147.9) (113.9)
Genus ABS 334.8 357.7 396.6 (59.2) (49.3) (90.8)
Genus Research and Development 4.0 6.7 9.1 (2.9) (3.7) (2.5)
Segment total 839.6 921.2 911.5 (175.3) (200.9) (207.2)
Central 59.4 66.6 54.9 (247.7) (273.4) (222.4)
Total 899.0 987.8 966.4 (423.0) (474.3) (429.6)
1 See note 2 for details of the prior period restatement.
Geographical information
The Group's revenue by geographical segment is analysed below. This analysis
is stated on the basis of where the customer is located.
Revenue
2025 2024
£m £m
North America 265.0 263.5
Latin America 107.3 109.9
UK 94.0 92.3
Rest of Europe, Middle East, Russia and Africa 109.8 114.8
Asia 96.7 88.3
Total revenue 672.8 668.8
Non-current assets (excluding deferred taxation and financial instruments)
The Group's non-current assets by geographical segment are analysed below and
are stated on the basis of where the assets are located.
2025 (restated)(1) 2024 (restated)(1) 2023
£m £m £m
North America 385.1 441.7 467.5
Latin America 76.9 75.5 69.6
UK 59.5 70.1 71.5
Rest of Europe, Middle East, Russia and Africa 47.6 45.4 43.8
Asia 44.6 54.7 33.6
Non-current assets (excluding deferred taxation and financial instruments) 613.7 687.4 686.0
1 See note 2 for details of the prior period restatement.
4. EXCEPTIONAL ITEMS
Operating (expense)/credit 2025 2024
£m £m
ABS restructuring (8.8) (6.0)
Corporate transactions (1.9) (7.4)
Litigation (0.9) (10.4)
R&D restructuring - (0.7)
Other 0.2 (0.1)
Net exceptional items (11.4) (24.6)
ABS restructuring and related central functions
As part of an ongoing strategic global Value Acceleration Programme,
significant one-off expenses were incurred in relation to £4.4m (2024:
£3.0m) of staff redundancies, £0.6m (2024: £1.1m) fixed asset and
inventory write-downs and £3.8m (2024: £1.9m) consultancy fees.
Corporate transactions
During the year, £1.9m (2024: £7.4m) of exceptional cost was incurred,
primarily in relation to potential corporate transactions.
Litigation
Litigation includes legal fees, settlement and related costs of £0.9m (2024:
£10.4m) related to the actions between ABS Global, Inc. and certain
affiliates ('ABS') and Inguran, LLC and certain affiliates (also known as
STgenetics ('ST')).
Other
Included within other is £0.2m credit resulting from a share forfeiture
exercise.
5. OTHER GAINS AND LOSSES
Note 2025 2024
£m £m
Release of contingent deferred consideration - 0.4
Loss on purchase of non-Controlling Interest in De Novo Genetics LLC 22 (3.6) -
Gain on loss of control of subsidiary 0.3 -
Loss on derivative (0.9) (2.1)
Other gains and losses (4.2) (1.7)
Included with other gains and losses is a £0.9m (2024: £2.1m) 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 loss on the valuation of these swaps as at 30 June 2025 is recognised in
the Group Income Statement.
6. NET FINANCE COSTS
2025 2024
£m £m
Interest payable on bank loans and overdrafts (17.0) (17.8)
Amortisation of debt issue costs (0.9) (0.9)
Other interest payable (0.7) (0.2)
Unwinding of discount on put options (0.1) (0.2)
Net interest cost in respect of pension scheme liabilities (0.3) (0.3)
Interest on lease liabilities (2.4) (2.8)
Total interest expense (21.4) (22.2)
Interest income on bank deposits 0.8 0.6
Net interest income on derivative financial instruments 1.8 3.3
Total interest income 2.6 3.9
Net finance costs (18.8) (18.3)
7. TAXATION AND DEFERRED TAXATION
Income tax expense
2025 2024
£m £m
Current tax expense
Current period 14.4 20.3
Adjustment for prior periods (0.7) 1.3
Total current tax expense in the Group Income Statement 13.7 21.6
Deferred tax expense
Origination and reversal of temporary differences (3.0) (14.0)
Adjustment for prior periods (1.5) (4.5)
Total deferred tax credit in the Group Income Statement (4.5) (18.5)
Total income tax expense excluding share of income tax of equity-accounted 9.2 3.1
investees
Share of income tax of equity-accounted investees 2.0 5.7
Total income tax expense in the Group Income Statement 11.2 8.8
Reconciliation of effective tax rate
2025 2025 2024 2024
% £m % £m
Profit before tax 28.5 5.5
Add back share of income tax of equity-accounted investees 2.0 5.7
Profit before tax excluding share of income tax of equity-accounted investees 30.5 11.2
Income tax at UK corporation tax rate of 25.0% (2024: 25.0%) 25.0 7.6 25.0 2.8
Effect of overseas tax rates and foreign exchange differences 7.2 2.2 46.4 5.2
Non-deductible expenses 7.2 2.2 51.8 5.8
Tax-exempt income and incentives (15.1) (4.6) (17.9) (2.0)
Change in tax rate 9.2 2.8 1.8 0.2
Movements in recognition of tax losses (3.3) (1.0) (8.0) (0.9)
Change in unrecognised temporary differences 16.4 5.0 27.7 3.1
Tax over provided in prior periods (7.3) (2.2) (28.5) (3.2)
Change in provisions (2.6) (0.8) (15.2) (1.7)
Tax on undistributed reserves - - (4.5) (0.5)
Total income tax expense in the Group Income Statement 36.7 11.2 78.6 8.8
The tax rate for the year depends on our mix of profits by country and our
ability to recognise deferred tax assets in respect of losses in some of our
smaller territories. Tax is calculated using prevailing tax legislation,
reliefs and existing interpretations and practice.
The statutory profit tax charge for the year, including share of income tax of
equity-accounted investees of £11.2m (2024: £8.8m), represents an effective
tax rate ('ETR') of 36.7% (2024: 78.6%). The decrease in the statutory ETR of
41.9 points results primarily from an increase in statutory profit before tax
of £28.5m (2024: £5.5m) and a reduction in non-deductible expenses of £2.2m
(2024: £5.8m).
Recognised deferred tax assets and liabilities
We have offset deferred tax assets and liabilities, to the extent that they
arise in the same tax jurisdiction.
The analysis of deferred tax balances is set out below:
(restated)1
2025 2024
£m £m
Deferred tax assets (30.9) (28.1)
Deferred tax liabilities 25.8 33.7
Net deferred tax (assets)/liabilities (5.1) 5.6
Movement in net deferred tax liabilities during the year
(restated)(1) Recognised in Income Statement Changes in tax rate recognised in Income Statement Prior year adjustments recognised in Income Statement Recognised in equity Acquisitions/ Foreign exchange difference As at 30 June 2025
As at 1 July 2024 £m £m £m £m (disposals) £m £m
£m £m
Property, plant and equipment 3.8 0.4 0.2 (2.6) - 0.5 (0.8) 1.5
Intangible assets 4.9 (0.4) (0.3) (0.6) - (3.0) (0.1) 0.5
Biological assets 55.6 (2.9) (0.6) 0.5 (4.9) 1.5 - 49.2
Retirement benefit obligations (1.2) 0.1 - - (0.1) - - (1.2)
Share-based payment expense (2.4) (0.6) - 0.1 (0.7) - - (3.6)
Short-term timing differences (38.6) (1.2) (1.5) 1.4 (0.2) (2.0) 3.1 (39.0)
Tax loss carry-forwards (16.5) 4.5 (0.6) (0.3) - - 0.4 (12.5)
Net deferred tax liabilities/(assets) 5.6 (0.1) (2.8) (1.5) (5.9) (3.0) 2.6 (5.1)
(restated)(1) Recognised in Income Statement Changes in tax rate recognised in Income Statement Prior year adjustments recognised in Income Statement Recognised in equity Acquisitions/ Foreign exchange difference
As at 1 July 2023 £m £m £m £m (disposals) £m (restated)(1)
£m £m As at 30 June 2024
£m
Property, plant and equipment 3.7 0.4 0.2 (0.5) - - - 3.8
Intangible assets 5.0 (0.7) - 0.1 - 0.5 - 4.9
Biological assets 57.0 (1.0) 0.1 (0.1) (0.3) - (0.1) 55.6
Retirement benefit obligations (1.3) - - - 0.1 - - (1.2)
Share-based payment expense (2.2) (0.1) - - (0.1) - - (2.4)
Short-term timing differences (25.6) (9.5) (1.0) (2.3) (0.1) - (0.1) (38.6)
Tax loss carry-forwards (12.6) (1.3) - (2.8) - - 0.2 (16.5)
Net deferred tax liabilities/(assets) 24.0 (12.2) (0.7) (5.6) (0.4) 0.5 - 5.6
1 See note 2 for details of the prior period restatement
8. EARNINGS PER SHARE
Basic earnings per share from continuing operations
2025 2024
(pence) (pence)
Basic earnings per share 29.3 12.0
The calculation of basic earnings per share from continuing operations is
based on the net profit attributable to owners of the Company from continuing
operations of £19.3m (2024: £7.9m) and a weighted average number of ordinary
shares outstanding of 65,910,000 (2024: 65,686,000), which is calculated as
follows:
Weighted average number of ordinary shares (basic)
2025 2024
000s 000s
Issued ordinary shares at the start of the year 66,033 66,027
Effect of own shares held (125) (345)
Shares issued on exercise of stock options and share incentive plans 2 4
Shares issued in relation to Employee Benefit Trust - -
Weighted average number of ordinary shares in year 65,910 65,686
Diluted earnings per share from continuing operations
2025 2024
(pence) (pence)
Diluted earnings per share 28.9 11.9
The calculation of diluted earnings per share from continuing operations is
based on the net profit attributable to owners of the Company from continuing
operations of £19.3m (2024: £7.9m) and a weighted average number of ordinary
shares outstanding, after adjusting for the effects of all potential dilutive
ordinary shares, of 66,839,000 (2024: 66,174,000), which is calculated as
follows:
Weighted average number of ordinary shares (diluted)
2025 2024
000s 000s
Weighted average number of ordinary shares (basic) 65,910 65,686
Dilutive effect of share awards and options 929 488
Weighted average number of ordinary shares for the purposes of diluted 66,839 66,174
earnings per share
Adjusted earnings per share from continuing operations
2025 2024
(pence) (pence)
Adjusted earnings per share 81.8 65.5
Diluted adjusted earnings per share 80.6 65.0
Adjusted earnings per share is calculated on profit before the net IAS 41
valuation movement on biological assets, amortisation of acquired intangible
assets, impairment of goodwill, share-based payment expense, other gains and
losses and exceptional items, after charging taxation associated with those
profits, of £53.9m (2024: £43.0m), which is calculated as follows:
2025 2024
£m £m
Profit before tax from continuing operations 28.5 5.5
Add/(deduct):
Net IAS 41 valuation movement on biological assets (see note 12) 13.3 23.2
Amortisation of acquired intangible assets (see note 11) 5.6 5.8
Impairment of goodwill (see note 10) 1.5 -
Share-based payment expense 6.9 7.0
Exceptional items (see note 4) 11.4 24.6
Other gains and losses (see note 5) 4.2 1.7
Net IAS 41 valuation movement on biological assets in joint ventures (see note 0.9 (14.6)
14)
Tax on joint ventures and associates (see note 14) 2.0 5.7
Attributable to non-controlling interest - 0.9
Adjusted profit before tax 74.3 59.8
Adjusted tax charge (20.4) (16.8)
Adjusted profit after tax 53.9 43.0
Effective tax rate on adjusted profit 27.5% 28.1%
9. DIVIDENDS
Amounts recognised as distributions to equity holders in the year
2025 2024
£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 - 14.3
Interim dividend
Interim dividend for the year ended 30 June 2025 of 10.3 pence per share 6.8 -
Interim dividend for the year ended 30 June 2024 of 10.3 pence per share - 6.7
Total dividend 21.1 21.0
The Directors have proposed a final dividend of 21.7 pence per share for 2025.
This is subject to shareholders' approval at the AGM and we have therefore not
included it as a liability in these Financial Statements. The total proposed
and paid dividend for year ended 30 June 2025 is 32.0 pence per share (2024:
32.0 pence per share).
10. GOODWILL
During the year ended 30 June 2025 the Group recognised an impairment loss of
£1.5m related to goodwill allocated to the Xelect CGU. The impairment was
triggered by an increase in country risk premiums due to macroeconomic
uncertainty in the regions where Xelect operates.
The aggregate carrying amounts of goodwill allocated to each operating segment
are as follows:
Genus PIC Genus ABS Xelect Total
£m £m £m £m
Cost
Balance at 1 July 2023 76.2 31.6 - 107.8
Business combination - - 4.0 4.0
Effect of movements in exchange rates (0.7) (0.8) - (1.5)
Balance at 30 June 2024 75.5 30.8 4.0 110.3
Effect of movements in exchange rates (4.1) (1.9) - (6.0)
Balance at 30 June 2025 71.4 28.9 4.0 104.3
Accumulated impairment losses
Balance at 1 July 2023 and 30 June 2024 - - - -
Impairment losses - - (1.5) (1.5)
Balance at 30 June 2025 - - (1.5) (1.5)
Carrying amounts
At 30 June 2025 71.4 28.9 2.5 102.8
At 30 June 2024 75.5 30.8 4.0 110.3
11. INTANGIBLE ASSETS
Porcine Brands, multiplier contracts and customer relationships Separately identified acquired intangible assets Software Assets under construction IntelliGen Patents, licences and other Total
and bovine genetics technology £m £m £m £m £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 - - - - 4.6 - 0.6 5.2
Transfers - - - 3.5 (9.1) 5.6 - -
Disposals - - - (0.2) - - - (0.2)
Effect of movements in exchange rates (0.4) (6.3) (6.7) (0.6) (0.1) (2.5) (0.1) (10.0)
Balance at 30 June 2025 55.4 93.5 148.9 45.4 4.2 28.8 5.0 232.3
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
Amortisation for the year 3.2 2.4 5.6 4.5 - 2.8 - 12.9
Disposals - - - (0.1) - - - (0.1)
Effect of movements in exchange rates (0.2) (5.4) (5.6) (0.5) - (1.6) - (7.7)
Balance at 30 June 2025 48.5 80.0 128.5 25.9 - 18.2 4.4 177.0
Carrying amounts
At 30 June 2025 6.9 13.5 20.4 19.5 4.2 10.6 0.6 55.3
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 £0.3m (2024: £0.5m), multiplier contracts of
£6.4m (2024: £7.9m) and customer relationships of £6.8m (2024: £8.4m).
Included within the software class of assets is £12.1m (2024: £13.3m) and
included in assets in the course of construction is £nil (2024: £0.2m) that
relate to the ongoing development costs of GenusOne, our single global
enterprise system, and £2.4m (2024: £5.0m) that relate to IntelliGen.
Included within Intangibles assets acquired separately are assets with a gross
cost of £76.9m (June 2024: £79.8m) that are fully amortised and are still in
use in the business.
12. BIOLOGICAL ASSETS
Fair value of biological assets (restated)(1) (restated)(1) (restated)(1)
Bovine Porcine Total
£m £m £m
Balance at 30 June 2023 (as previously reported) 99.3 242.7 342.0
Prior period adjustment (see note 2) (11.6) (29.5) (41.1)
Balance at 30 June 2023 (restated)(1) 87.7 213.2 300.9
Non-current biological assets 87.7 189.4 277.1
Current biological assets - 23.8 23.8
Balance at 30 June 2023 (restated)(1) 87.7 213.2 300.9
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 (39.1) 67.6 28.5
Effect of movements in exchange rates 0.4 (1.3) (0.9)
Balance at 30 June 2024 (restated)(1) 56.1 232.5 288.6
Non-current biological assets 56.1 200.2 256.3
Current biological assets - 32.3 32.3
Balance at 30 June 2024 (restated)(1) 56.1 232.5 288.6
Increases due to purchases 15.4 208.5 223.9
Decreases attributable to sales - (226.8) (226.8)
Decrease due to harvest (9.0) (26.2) (35.2)
Changes in fair value less estimated sale costs (14.9) 42.6 27.7
Loss of control - (5.2) (5.2)
Effect of movements in exchange rates (3.2) (16.1) (19.3)
Balance at 30 June 2025 44.4 209.3 253.7
Non-current biological assets 44.4 174.6 219.0
Current biological assets - 34.7 34.7
Balance at 30 June 2025 44.4 209.3 253.7
1 See note 2 for details of prior period restatement
Bovine
Bovine biological assets include £2.7m (2024: £7.7m) 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 leases.
There were no movements in the carrying value of the bovine biological assets
in respect of sales or other changes during the year.
A risk-adjusted rate of 16.0% Beef - 22.1% Dairy (2024 restated: 17.0% Beef -
23.2% Dairy) 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 in
note 16.
Porcine
Included in increases due to purchases is the aggregate increase arising
during the year on initial recognition of biological assets in respect of
multiplier purchases, other than parent gilts, of £72.5m (2024 restated:
£76.9m).
Decreases attributable to sales during the year of £226.8m (2024 restated:
£214.8m) include £96.3m (2024 restated: £129.7m) 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 £58.6m (2024 restated: £63.3m) 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 year.
Total revenue in the year, including parent gilts, includes £245.3m (2024:
£259.7m) in respect of these contracts, comprising £67.7m (2024: £82.3m) on
initial transfer of animals and semen to customers and £177.6m (2024:
£177.4m) in respect of royalties received.
A risk-adjusted rates of between 21.9% and 22.7% (2024 restated: 22.1% and
22.9%) have 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 (2024: seven) and their estimated useful
lifespan is 1.4 years (2024: 1.4 years).
Year ended 30 June 2025
Bovine Porcine Total
£m £m £m
Changes in fair value of biological assets (14.9) 42.6 27.7
Inventory transferred to cost of sales at fair value 3.3 (26.2) (22.9)
Biological assets transferred to cost of sales at fair value - (16.2) (16.2)
(11.6) 0.2 (11.4)
Fair value movement in related financial derivative - (1.9) (1.9)
Net IAS 41 valuation movement on biological assets(1) (11.6) (1.7) (13.3)
Year ended 30 June 2024
(restated)(2) (restated)(2) Total
Bovine Porcine £m
£m £m
Changes in fair value of biological assets (39.1) 67.6 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)
(38.0) 14.1 (23.9)
Fair value movement in related financial derivative - 0.7 0.7
Net IAS 41 valuation movement on biological assets(1) (38.0) 14.8 (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)
2 See note 2 for details of prior period restatement
13. PROPERTY, PLANT AND EQUIPMENT
Land and buildings Plant, motor vehicles and equipment Assets under construction Total owned assets Land and buildings Plant, motor vehicles and equipment Total right-of-use Total
£m £m £m £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 1.5 1.8 11.0 14.3 2.3 12.4 14.7 29.0
Transfers 6.3 7.0 (13.3) - - - - -
Loss of control - (0.1) - (0.1) (8.3) - (8.3) (8.4)
Disposals (0.1) (8.1) - (8.2) (0.5) (3.9) (4.4) (12.6)
Effect of movements in exchange rates (9.7) (9.4) (0.5) (19.6) (3.4) (0.6) (4.0) (23.6)
Balance at 30 June 2025 120.4 115.3 7.3 243.0 51.3 46.7 98.0 341.0
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 year 6.5 11.1 - 17.6 6.1 8.1 14.2 31.8
Loss of control - - - - (2.2) - (2.2) (2.2)
Disposals (0.1) (7.5) - (7.6) (0.2) (2.2) (2.4) (10.0)
Effect of movements in exchange rates (3.9) (7.0) - (10.9) (1.1) (1.5) (2.6) (13.5)
Balance at 30 June 2025 43.5 84.9 - 128.4 23.8 28.5 52.3 180.7
Carrying amounts
At 30 June 2025 76.9 30.4 7.3 114.6 27.5 18.2 45.7 160.3
At 30 June 2024 81.4 35.8 10.1 127.3 40.0 14.7 54.7 182.0
Included within the 2024 additions right-of-use assets is £24.2m relating to
the lease of two pig farms in China. Included within property, plant and
equipment are assets with a gross cost of £72.8m (June 2024: £73.5m) that
are full depreciated and are still in use in the business.
14. EQUITY-ACCOUNTED INVESTEES
The carrying value of the investments is reconciled as follows:
2025 2024
£m £m
Balance at 1 July 60.5 53.5
Share of post-tax retained profits of joint ventures and associates 9.1 19.1
Additions 0.9 -
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)
Long-term loan investment - 2.2
Dividends received from Agroceres - PIC Genética de Suínos Ltda (Brazil) (6.1) (3.2)
Dividends received from Società Agricola GENEETIC S.r.l (Italy) - (0.2)
Dividends received from Zhidan - Yan'an Xinyongxiang Technology Co., Ltd - (1.3)
(China)
Effect of other movements including exchange rates (3.0) (7.1)
Balance at 30 June 62.8 60.5
On the 30 September 2024 the Group sold 60% of its shareholding in PIC
(Qiannan) Agriculture Science and Technology Co. Ltd for a consideration of
£1.3m. On the date of the sale 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. A gain of £0.3m has been recognised in the Income Statement
(see note 5).
There are no significant restrictions on the ability of the joint ventures and
associates to transfer funds to the Parent, other than those imposed by the
Companies Act 2006 or equivalent government rules within the joint venture's
jurisdiction.
Related-party transactions with joint ventures and associates
Transaction value Balance outstanding
2025 2024 2025 2024
£m £m £m £m
Sale of goods and services to joint ventures and associates - - - -
Purchase of goods and services from joint ventures and associates 9.1 7.7 (0.5) (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.
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
Year ended 30 June 2025 53.3 (0.9) (41.3) (2.0) 9.1
Year ended 30 June 2024 32.8 14.6 (22.6) (5.7) 19.1
15. OTHER INVESTMENTS
Investments carried at fair value 2025 2024
£m £m
Listed equity shares - Caribou Biosciences, Inc. 0.1 0.2
Unlisted equity shares - Dairy LLC ('BoviSync') - -
Unlisted equity shares - Labby, Inc. 0.5 0.5
Unlisted equity shares - SwineTech, Inc. 2.6 0.4
Unlisted equity shares - Other - -
Other investments 3.2 1.1
In November 2022 the Group acquired a 5% interest in SwineTech Inc., an
Iowa-based swine technology company, for USD 0.5 million. In November 2024 the
Group increased its holding to approximately 12% for a further USD 3.0
million.
16. INVENTORIES
2025 2024
£m £m
Biological assets' harvest classed as inventories 14.6 20.0
Sexed Semen 12.4 15.7
Bovine Semen 27.0 35.7
Raw materials and consumables 4.0 4.5
Goods held for resale 15.2 16.9
Inventories 46.2 57.1
17. TRADE AND OTHER RECEIVABLES
2025 2024
£m £m
Trade receivables 88.4 94.9
Less expected credit loss allowance (4.8) (4.7)
Trade receivables net of impairment 83.6 90.2
Other debtors 4.8 7.3
Prepayments 6.4 9.6
Contract assets net of impairment 20.9 25.0
Other taxes and social security 3.5 3.1
Current trade and other receivables 119.2 135.2
Other debtors 4.3 4.9
Contract assets net of impairment 6.0 6.9
Non-current other receivables 10.3 11.8
Trade and other receivables 129.5 147.0
The average credit period our customers take on the sales of goods is 45 days
(2024: 49 days). We do not charge interest on receivables for the first 30
days from the date of the invoice.
The Group always measures the loss allowance for trade receivables and
contract assets at an amount equal to lifetime expected credit losses
('ECLs'). The ECLs on trade receivables and contract assets 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 and a contract asset 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
(2024: no more than 5%).
18. TRADE AND OTHER PAYABLES
2025 2024
£m £m
Trade payables 25.3 34.0
Other payables 7.1 11.2
Accrued expenses 59.6 62.6
Contract liabilities 6.7 8.1
Other taxes and social security 9.0 7.3
Current trade and other payables 107.7 123.2
Other payables - 4.0
Contract liabilities 0.1 0.2
Non-current trade and other payables 0.1 4.2
The average credit period taken for trade purchases is 24 days (2024: 33
days).
Other payables include an amount of £3.6m (2024: £11.9m), of which £nil
(2024: £4.0m) is classified as non-current that relates to the ST litigation
settlement. Additionally, it includes £nil (2024: £0.1m) repayable on demand
to a third-party business partner.
19. RETIREMENT BENEFIT OBLIGATIONS
The Group operates a number of defined contribution and defined benefit
pension schemes, covering many of its employees. The principal funds are the
Milk Pension Fund ('MPF') and the Dalgety Pension Fund ('DPF') in the UK,
which are defined benefit schemes. The assets of these funds are held
separately from the Group's assets, are administered by trustees and managed
professionally. These schemes are closed to new members.
The financial positions of the defined benefit schemes, as recorded in
accordance with IAS 19 and IFRIC 14, are aggregated for disclosure purposes.
The liability/(asset) split by principal scheme is set out below.
2025 2024
£m £m
The Milk Pension Fund - Genus's share - -
The Dalgety Pension Fund - -
National Pig Development Pension Fund - (0.6)
Post-retirement healthcare 0.5 0.5
Other funded and unfunded schemes 6.4 6.7
Overall net pension liability 6.9 6.6
The MPF and DPF pension schemes are in IAS 19 surplus positions but these
surpluses are restricted to nil under IFRIC 14.
Overall, we expect to pay £0.4m (2024: £0.4m) in contributions to defined
benefit plans in the 2026 financial year.
Aggregated position of defined benefit schemes
2025 2024
£m £m
Present value of funded obligations (includes Genus's 86% share of MPF (2024: 266.7 722.8
86%))
Present value of unfunded obligations 6.9 7.4
Total present value of obligations 273.6 730.2
Fair value of plan assets (includes Genus's 86% share of MPF (2024: 86%)) (286.7) (760.0)
Restricted recognition of asset (MPF and DPF) 20.0 36.4
Recognised liability for defined benefit obligations 6.9 6.6
Movement in the liability for defined benefit obligations
2025 2024
£m £m
Liability for defined benefit obligations at the start of the year 730.2 754.2
Benefits paid by the plans (56.0) (57.7)
Current service costs and interest 36.1 38.0
Actuarial losses/(gains) recognised on fund liabilities arising from changes 2.3 (3.8)
in demographic assumptions
Actuarial (gains)/losses recognised on fund liabilities arising from changes (20.9) 1.9
in financial assumptions
Actuarial losses/(gains) recognised on fund liabilities arising from 3.1 (2.3)
experience other
Settlement of annuity contracts in DPF (421.3) -
Exchange rate adjustment 0.1 (0.1)
Liability for defined benefit obligations at the end of year 273.6 730.2
Movement in plan assets
2025 2024
£m £m
Fair value of plan assets at the start of the year 760.0 787.6
Administration expenses (0.3) (0.3)
Contributions paid into the plans 0.7 0.8
Benefits paid by the plans (56.0) (57.7)
Interest income on plan assets 37.6 39.8
Settlement of annuity contracts in DPF (421.3) -
Actuarial losses recognised in equity (34.0) (10.2)
Fair value of plan assets at the end of the year 286.7 760.0
Aggregated position of defined benefit schemes
Summary of movements in Group deficit during the year
2025 2024
£m £m
Deficit in schemes at the start of the year (6.6) (6.9)
Administration expenses (0.3) (0.3)
Contributions paid into the plans 0.7 0.8
Net pension finance cost (0.3) (0.3)
Actuarial losses recognised during the year (18.5) (6.0)
Movement in restriction of assets 16.4 3.9
Interest restriction on IFRIC 14 1.8 2.1
Exchange rate adjustment (0.1) 0.1
Deficit in schemes at the end of the year (6.9) (6.6)
The expense is recognised in the following line items in the Group Income
Statement
2025 2024
£m £m
Administrative expenses 0.3 0.3
Net finance charge 0.3 0.3
0.6 0.6
Actuarial assumptions and sensitivity analysis
Principal actuarial assumptions (expressed as weighted averages) are:
2025 2024
Discount rate 5.50% 5.15%
Consumer Price Index 2.55% 2.55%
Retail Price Index 2.90% 2.90%
The mortality assumptions used are consistent with those recommended by the
schemes' actuaries and reflect the latest available tables, adjusted for the
experience of the scheme where appropriate. For 2025 and 2024, the mortality
tables used are 100% of the S3PMA (males)/S3PFA_M (females) all lives tables,
with birth year and CMI 2023 projections with parameters of Sk=7.0 and A=0.5%
and weighting parameters of w2020=0%, w2021=0%, w2022=15% and w2023=15%,
subject to a long-term rate of improvement of 1.50% per annum for males and
females.
20. NOTES TO THE CASH FLOW STATEMENT
2025 2024
£m £m
Profit for the year 19.3 2.4
Adjustment for:
Net IAS 41 valuation movement on biological assets 13.3 23.2
Amortisation of acquired intangible assets 5.6 5.8
Impairment of goodwill 1.5 -
Share-based payment expense 6.9 7.0
Share of profit of joint ventures and associates (9.1) (19.1)
Other gains and losses 4.2 1.7
Finance costs (net) 18.8 18.3
Income tax expense 9.2 3.1
Exceptional items (net) 11.4 24.6
Adjusted operating profit from continuing operations 81.1 67.0
Depreciation of property, plant and equipment 31.8 34.7
(Profit)/loss on disposal of plant and equipment (0.5) 0.8
Loss on disposal of intangible asset 0.1 -
Amortisation and impairment of intangible assets 7.3 6.4
Adjusted earnings before interest, tax, depreciation and amortisation 119.8 108.9
Cash impact of exceptional items relating to operating activities (24.2) (17.9)
Other movements in biological assets and harvested produce 1.3 (9.6)
Decrease in provisions (0.7) (1.0)
Additional pension contributions in excess of pension charge (0.4) (0.5)
Other (0.4) 0.1
Operating cash flows before movement in working capital 95.4 80.0
Increase / (decrease) in inventories 2.0 (1.3)
Increase / (decrease) in receivables 11.4 (10.1)
(Decrease) / increase in payables (2.1) 0.2
Cash generated by operations 106.7 68.8
Interest received 0.6 0.5
Interest and other finance costs paid (15.7) (14.5)
Interest on leased assets (2.4) (2.8)
Cash flow from derivative financial instruments (1.3) (0.7)
Income taxes paid (20.7) (21.5)
Net cash from operating activities 67.2 29.8
Analysis of net debt
Total changes in liabilities due to financing activities are as follows:
At 1 July 2024 Net cash flows Foreign exchange Other non-cash movements At 30 June 2025
£m £m £m £m £m
Cash and cash equivalents 42.5 6.8 (1.3) - 48.0
Interest-bearing loans - current (4.9) 2.8 0.1 (0.9) (2.9)
Interest-bearing deferred consideration - current - 2.6 - (5.2) (2.6)
Lease liabilities - current (14.0) 14.1 0.7 (14.1) (13.3)
(18.9) 19.5 0.8 (20.2) (18.8)
Interest-bearing loans - non-current (228.2) 5.9 6.4 - (215.9)
Interest-bearing deferred consideration - non-current - - 0.3 (8.0) (7.7)
Lease liabilities - non-current (44.1) - 2.0 8.3 (33.8)
(272.3) 5.9 8.7 0.3 (257.4)
Total debt financing (291.2) 25.4 9.5 (19.9) (276.2)
Net debt (248.7) 32.2 8.2 (19.9) (228.2)
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, £5.7m in relation to net new leases
(including disposals) and £0.9m in the unwinding of debt issue cost.
At 1 July 2023 Net cash flows Foreign exchange Other non-cash movements At 30 June 2024
£m £m £m £m £m
Cash and cash equivalents 36.3 7.7 (1.5) - 42.5
Interest-bearing loans - current (4.2) 0.2 - (0.9) (4.9)
Lease liabilities - current (10.0) 13.7 0.3 (18.0) (14.0)
(14.2) 13.9 0.3 (18.9) (18.9)
Interest-bearing loans - non-current (196.0) (32.1) (0.1) - (228.2)
Lease liabilities - non-current (21.9) - 0.6 (22.8) (44.1)
(217.9) (32.1) 0.5 (22.8) (272.3)
Total debt financing (232.1) (18.2) 0.8 (41.7) (291.2)
Net debt (195.8) (10.5) (0.7) (41.7) (248.7)
Included within non-cash movements is £9.7m in relation to net new leases and
£1.1m in relation to the unwinding of debt issue costs.
21. CONTINGENCIES AND BANK GUARANTEES
Contingent liabilities are potential future cash outflows, where the
likelihood of payments is considered more than remote but is not considered
probable or cannot be measured reliably. Assessing the amount of liabilities
that are not probable is highly judgemental.
The retirement benefit obligations referred to in note 19 include obligations
relating to the MPF defined benefit scheme. Genus, together with other
participating employers, is joint and severally liable for the scheme's
obligations. Genus has accounted for its section and its share of any orphan
assets and liabilities, collectively representing approximately 86% (2024:
86%) of the MPF. As a result of the joint and several liability, Genus has a
contingent liability for the scheme's obligations that it has not accounted
for.
The Group makes a provision for amounts to the extent that an outflow of
economic benefit is probable and can be reliably estimated. However, there are
specific claims identified in the litigation where the Group considers the
outcome of the claim is not probable and will not result in the outflow of
economic benefit.
The Group's future tax charge and effective tax rate could be affected by
factors such as countries reforming their tax legislation to implement the
OECD's BEPS recommendations and by European Commission initiatives including
state aid investigations.
At 30 June 2025, the Group had entered into bank guarantees totalling £0.8m
(2024: £0.6m).
22. NON-CONTROLLING INTEREST
2025 2024
£m £m
Non-controlling interest 0.4 1.2
Put option over non-controlling interest at inception (0.5) (5.5)
Total non-controlling interest (0.1) (4.3)
Summarised financial information in respect of each of the Group's
subsidiaries that has a material non-controlling interest is set out below
before intra-Group eliminations.
2025 2024
£m £m
Balance at 1 July (4.3) (7.7)
Total comprehensive expense attributable to the non-controlling interest - (5.5)
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) -
Balance at 30 June (0.1) (4.3)
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 £3.6m has been recognised in Other Gains & Losses.
23. Post balance sheet events
On 3 September 2025, Genus plc has updated its strategic porcine collaboration
in China with Beijing Capital Agribusiness Co. Ltd ("BCA"), the Group's
domestic state-backed partner.
Under the terms of the updated agreements:
· Genus's PIC China business and BCA's Future Bio-Tech business
will be combined to form a joint venture that is 51% owned by BCA and 49%
owned by Genus, in line with the original agreements;
· Genus will receive a gross cash payment of US$160m (estimated
US$140m, net of withholding tax and transaction costs), and subject to any
further working capital and net debt adjustments);
· Genus will receive US$7.5m from BCA, upon receipt of regulatory
approvals for the joint venture, in lieu of remaining milestone payments under
the original agreements; and
· Genus will receive intellectual property royalties from the joint
venture for PRRS Resistant Pig ("PRP") sales in China after regulatory
approval and launch of the product.
Net assets of Genus's PIC China business being sold is £32m at 30 June 2025.
The transaction is expected to complete in calendar year 2026, following
satisfaction of conditions to the transaction, including customary Chinese
regulatory approvals. Following completion, PIC China will be deconsolidated
from Genus's financial results and Genus's 49% interest in the joint venture
will be equity accounted.
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 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 adjusting items and is a performance indicator against which
impairment of goodwill, share-based payment expense and exceptional items short-term and long-term incentive outcomes for our senior executives are
added back and excludes JV 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
Closest equivalent IFRS measure: Operating profit(1) underlying trading 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
Including adjusted operating profit from JV and associate results. between the two but it is also a measure excluded from our management's
Adjusted operating profit inc JVs
remuneration assessment, as well as our debt agreements and banking covenants.
It is also one requested and used by our investor group to evaluate our
performance;
See reconciliation below.
· impairment of goodwill - this represents a non-cash accounting
adjustment recognised when the carrying value of goodwill exceeds its
Adjusted operating profit inc JVs after tax
recoverable amount. Excluding this item improves comparability across periods,
Adjusted operating profit including JV less adjusted effective tax. as impairment charges can be significant and are often driven by long-term
assumptions;
See reconciliation below.
Adjusted profit before tax
Adjusted operating profit including JVs less net finance costs.
Adjusted profit after tax
See reconciliation below.
Adjusted profit including JVs before tax less adjusted effective tax.
See reconciliation below.
· 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 include estimates of future performance; and
· exceptional items - these are items which due to either their
size or their nature are excluded, to improve the understanding of the Group's
underlying performance.
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 operating profit. performance, by excluding the impacts of net IAS 41 valuation movement on
biological assets, amortisation of acquired intangible assets, impairment of
goodwill, share-based payment expense and exceptional items.
Closest equivalent IFRS measure: Effective tax rate
See reconciliation below.
Adjusted basic earnings per share Adjusted profit after tax profit divided by the weighted basic average number On a per share basis, this allows the comparability of underlying financial
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 year. The Board's dividend policy targets adjusted earning cover to be between 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 JVs, This APM is presented because it is used in calculating our ratio of net debt
financing facilities depreciation of property, plant and equipment, depreciation of the historical to EBITDA and our interest cover, which we report to our banks to ensure
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 retranslates 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 and This allows the Group to monitor its levels of debt.
obligations under finance leases, 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
Change in alternative performance measures
During the period a review was undertaken of the cash flow APMs utilised by
the Group to measure performance. Following this review the definitions of
'Cash conversion' and 'Free cash flow' were amended, and additionally a new
APM 'Adjusted cash from operating activities' was created. The Directors
believe that these measures more accurately reflect the cash management and
return on invested capital. These revised measures are aligned with the way
performance targets are set and assessed internally.
Cash conversion Adjusted cash from operating activities as a percentage of adjusted operating This is used to measure how much operating cash flow we are generating and how
profit excluding JVs. efficient we are at converting our operating profit into cash and is used to
set performance targets internally.
See calculation below.
Free cash flow Net cash from operating activities after capital expenditure (including This is used to measure the amount of cash retained in the business before net
capital payments for leased assets) including cash received from our joint investing activities, debt repayments and dividend payments.
ventures.
Closest IFRS measure: Net cash from operating activities
See calculation below.
Adjusted cash from operating activities Net cash from operating activities after capital expenditure (including leased This is used to measure the amount of cash that is generated by our operating
assets) including cash received from our joint ventures, excluding net activities and is used to set performance targets internally.
interest paid, exceptional cash, pension charges, movements in provisions and
other cash outflows.
Closest IFRS measure: Net cash from operating activities
See calculation below.
Other measures
Interest cover The ratio of adjusted net finance costs, calculated in accordance with the This APM is used to understand our ability to meet our interest payments and
definitions used in our financing facilities, is net finance costs with a is also a key metric that we report to our banks to ensure compliance with our
deduction for pension interest, interest from adopting IFRS 16, unwinding of bank covenants.
discount on put options and amortisation of refinancing fees, to adjusted
EBITDA.
Closest equivalent IFRS components for the ratio: The equivalent IFRS
components are finance costs, finance income and operating profit
See calculation and reconciliation below.
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.
Return on adjusted invested capital The Group's return on adjusted invested capital is measured on the basis of This APM is used to measure our ability to efficiently invest our capital and
adjusted operating profit including JVs after tax, which is operating profit gives us a sense of how well we are using our resources to generate returns.
with the pre-tax share of profits from JVs and associates, net IAS 41
valuation movement on biological assets, amortisation of acquired intangible
assets, impairment of goodwill, share-based payment expense and exceptional
items added back, net of amounts attributable to non-controlling interest and
tax.
The adjusted operating profit including JVs after tax is divided by adjusted
invested capital, which is the equity attributable to owners of the Company
adding back net debt, pension liability net of related deferred tax and
deducting biological assets (less historical cost) and goodwill, net of
related deferred tax.
Closest equivalent IFRS components for the ratio: Return on invested capital
See calculation and reconciliation 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 JVs 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
2025 2024
£m £m £m £m Reference
Operating profit 42.4 6.4 Group Income Statement
Add back:
Net IAS 41 valuation movement on biological assets 13.3 23.2 Group Income Statement
Amortisation of acquired intangible assets 5.6 5.8 Group Income Statement
Impairment of goodwill 1.5 - Group Income Statement
Share-based payment expense 6.9 7.0 Group Income Statement
Exceptional items 11.4 24.6 Group Income Statement
Adjusted operating profit exc JVs 81.1 67.0 Group Income Statement
Amounts attributable to non-controlling interest - 0.9 Group Income Statement
Operating profit from JVs and associates 9.1 19.1 Group Income Statement
Tax on JVs and associates 2.0 5.7 Note 14 - Equity-accounted investees
Net IAS 41 valuation movement in JVs 0.9 (14.6) Note 14 - Equity-accounted investees
Adjusted operating profit from JVs 12.0 10.2
Adjusted operating profit inc JVs 93.1 78.1
Adjusted operating profit inc JVs after tax
2025 2024
£m £m Reference
Adjusted operating profit inc JVs 93.1 78.1 See APM
Effective tax rate 27.5% 28.1% Note 8 - Earnings per share
Adjusted tax (25.6) (21.9) No direct reference
Adjusted operating profit inc JVs after tax 67.5 56.2
Adjusted profit before tax
Adjusted profit after tax
2025 2024
£m £m Reference
Adjusted operating profit inc JVs 93.1 78.1 See APM
Less net finance costs (18.8) (18.3) Note 6 - Net finance costs
Adjusted profit before tax 74.3 59.8
Adjusted tax (20.4) (16.8) Note 8 - Earnings per share
Adjusted profit after tax 53.9 43.0
Adjusted effective tax £m/rate
2025 2024
£m % £m % Reference
Adjusted effective tax £m/rate 20.4 27.5 16.8 28.1 Note 8 - Earnings per share
Exceptional items (2.7) (23.7) (3.9) (15.9) No direct reference
Share-based payment expense (1.5) (21.7) (0.7) (10.0) No direct reference
Other gains and losses (0.2) (4.8) (0.4) (23.5) No direct reference
Amortisation of acquired intangible assets 0.3 5.4 (1.5) (25.9) No direct reference
Net IAS 41 valuation movement on biological assets (4.2) (31.6) (4.7) (20.3) No direct reference
Net IAS 41 valuation movement on biological assets in joint ventures (0.9) (100.0) 3.2 21.9 No direct reference
Effective tax £m/rate 11.2 36.7 8.8 78.6 Note 7 - Taxation and deferred taxation
Adjusted basic earnings per share
2025 2024 Reference
Adjusted profit after tax (£m) 53.9 43.0 See APM
Weighted average number of ordinary shares (000s) 65.910 65.686 Note 8 - Earnings per share
Adjusted basic earnings per share (pence) 81.8 65.5
Adjusted diluted earnings per share
2025 2024 Reference
Adjusted profit after tax (£m) 53.9 43.0 See APM
Weighted average number of diluted ordinary shares (000s) 66.839 66.174 Note 8 - Earnings per share
Adjusted diluted earnings per share (pence) 80.6 65.0
Adjusted earnings cover
2025 2024
pence times pence times Reference
Adjusted earnings per share 81.8 65.5 See APM
Dividend for the year 32.0 32.0 Note 9 - Dividends
Adjusted earnings cover 2.6 2.0
Adjusted EBITDA - as calculated under our financing facilities
2025 2024
£m £m £m £m Reference
Operating profit 42.4 6.4 Group Income Statement
Add back:
Net IAS 41 valuation movement on biological assets 13.3 23.2 Group Income Statement
Amortisation of acquired intangible assets 5.6 5.8 Group Income Statement
Impairment of goodwill 1.5 - Group Income Statement
Share-based payment expense 6.9 7.0 Group Income Statement
Exceptional items 11.4 24.6 Group Income Statement
Adjusted operating profit exc JVs 81.1 67.0 Group Income Statement
Adjust for:
Cash received from JVs 6.1 4.7 Group Statement of Cash Flows
Less share of JVs losses (0.7) (1.7) No direct reference
Depreciation: property, plant and equipment 31.8 34.7 Note 13 - Property, plant and equipment
Operational lease payments (16.5) (16.5) No direct reference
Depreciation: historical cost of biological assets 16.4 15.3 No direct reference
Amortisation and impairment (excluding separately identifiable acquired 7.3 6.5 Note 11 - Intangible assets
intangible assets)
Amounts attributable to non-controlling interest - 0.9 Group Income Statement
Adjusted EBITDA - as calculated under our financing facilities 125.5 110.9
Balance sheet measures
Net debt
Net debt as calculated under our financing facilities
2025 2024
£m £m £m £m Reference
Current unsecured bank loans and overdrafts 2.9 4.9 Group Balance Sheet
Non-current unsecured bank loans and overdrafts 215.9 228.2 Group Balance Sheet
Unsecured bank loans and overdrafts 218.8 233.1 Group Balance Sheet
Current interest-bearing deferred consideration 2.6 - No direct reference
Non-current interest-bearing deferred consideration 7.7 - No direct reference
Total interest-bearing deferred consideration 10.3 - Group Balance Sheet
Current obligations under finance leases 13.3 14.0 Group Balance Sheet
Non-current obligations under finance leases 33.8 44.1 Group Balance Sheet
Obligations under finance leases 47.1 58.1 Group Balance Sheet
Total debt financing 276.2 291.2 Note 20 - Notes to the cash flow statement
Deduct:
Cash and cash equivalents (48.0) (42.5) Group Balance Sheet
Net debt 228.2 248.7
Deduct:
Lower of obligations under finance leases or £60m (47.1) (30.0)
Add back:
Guarantees 0.8 0.6 Note 21 - Contingencies and bank guarantees
Cash not available 7.1 0.9 No direct reference
Cash subject to exchange controls - 0.8 No direct reference
Net debt - as calculated under our financing facilities 189.0 221.0
Cash flow measures
Free cash flow & Adjusted cash from operating activities
2025 2024
£m £m £m £m Reference
Net cash from operating activities 67.2 29.8 Group Statement of Cash Flows
Purchase of property, plant and equipment (13.4) (14.8) Group Statement of Cash Flows
Purchase of intangible assets (5.2) (9.9) Group Statement of Cash Flows
Proceeds from sale of property, plant and equipment 0.4 0.7 Group Statement of Cash Flows
Dividends received from joint ventures and associates 6.1 4.7 Group Statement of Cash Flows
Dividend to non-controlling interest (0.1) - Group Statement of Cash
Flows
Payment of lease liabilities (14.1) (13.7) Group Statement of Cash Flows
Free cash flow 40.9 (3.2)
Add back:
Interest received (0.6) (0.5) Note 20 - Notes to the cash flow statement
Interest and other finance costs paid 15.7 14.5 Note 20 - Notes to the cash flow statement
Interest on leased assets 2.4 2.8 Note 20 - Notes to the cash flow statement
Cash flow from derivative financial instruments 1.3 0.7 Note 20 - Notes to the cash flow statement
Income taxes paid 20.7 21.5 Note 20 - Notes to the cash flow statement
Cash impact of exceptional items relating to operating activities 24.2 17.9 Note 20 - Notes to the cash flow statement
Additional pension contributions in excess of pension charge 0.4 0.5 Note 20 - Notes to the cash flow statement
Decrease in provisions 0.7 1.0 Note 20 - Notes to the cash flow statement
Other 0.5 (0.1) No direct reference
Adjusted cash from operating activities 106.2 55.1
Cash conversion
2025 2024
£m % £m % Reference
Adjusted operating profit inc JVs 93.1 78.1 Group Income Statement
Adjusted cash from operating activities 106.2 55.1 See APM
Cash conversion 114% 71%
Other measures
Interest cover
2025 2024
£m Times £m Times Reference
Finance costs 21.4 22.2 Group Income Statement
Finance income (2.6) (3.9) Group Income Statement
Net finance costs 18.8 18.3 Note 6 - Net finance costs
Deduct:
Pension interest (0.3) (0.3) Note 6 - Net finance costs
Interest on lease liabilities (2.4) (2.8) Note 6 - Net finance costs
Unwinding discount on put options (0.1) (0.2) Note 6 - Net finance costs
Amortisation of debt issue costs (0.9) (0.9) Note 6 - Net finance costs
Adjusted net finance costs 15.1 14.1
Adjusted EBITDA - as calculated under our financing facilities 125.5 110.9 See APM
Interest cover 8.3 7.9
Ratio of net debt to adjusted EBITDA
2025 2024
£m Times £m Times Reference
Net debt - as calculated under our financing facilities 189.0 221.0 See APM
Adjusted EBITDA - as calculated under our financing facilities
125.5 110.9 See APM
Ratio of net debt to adjusted EBITDA 1.5 2.0
Return on adjusted invested capital
(restated)¹
2025 2024
£m % £m % Reference
Adjusted operating profit inc JVs after tax 67.5 56.2 See APM
Equity attributable to owners of the Company 476.1 517.8 Group Balance Sheet
Add back:
Net debt 228.2 248.7 Note 20 - Notes to the cash flow statement
Pension liability 6.9 6.6 Group Balance Sheet
Related deferred tax (1.2) (1.2) Note 7 - Taxation and deferred taxation
Adjust for:
Biological assets - carrying value (253.7) (288.6) Note 12 - Biological assets
Biological assets' harvest classed as inventories (14.6) (20.0) Note 16 - Inventories
Biological assets - historic cost 72.0 80.9 See Financial Review
Goodwill (102.8) (110.3) Group Balance Sheet
Related deferred tax 49.2 55.6 Note 7 - Taxation and deferred taxation
Adjusted invested capital 460.1 489.5
Return on adjusted invested capital 14.7% 11.5%
Return on invested capital
(restated)¹
2025 2024
£m % £m % Reference
Return on adjusted invested capital 14.7% 11.5% See APM
Adjusted operating profit inc JVs after tax 67.5 56.2 See APM
Tax rate 25.6 27.5% 21.9 28.1% Note 8 - Earnings per share
Adjusted operating profit inc JVs 93.1 78.1 Group Income Statement
Adjusted operating profit attributable to non-controlling interest - (0.9) Group Income Statement
Pre-tax share of profits from JVs exc net IAS 41 valuation movement (12.0) (10.2) Group Income Statement
Adjusted operating profit exc JVs 81.1 67.0 Group Income Statement
Fair value movement on biological assets (13.3) (23.2) Group Income Statement
Amortisation of acquired intangibles (5.6) (5.8) Group Income Statement
Impairment of goodwill (1.5) - Group Income Statement
Share-based payment expense (6.9) (7.0) Group Income Statement
Exceptional items (11.4) (24.6) Group Income Statement
Share of post-tax profit of JVs 9.1 19.1 Group Income Statement
Other gains and losses (4.2) (1.7) Group Income Statement
Finance costs (18.8) (18.3) Group Income Statement
Profit before tax 28.5 5.5 Group Income Statement
Tax (9.2) (3.1) Group Income Statement
Profit 19.3 2.4 Group Income Statement
Equity attributable to owners of the Company 476.1 517.8 Group Balance Sheet
Return on invested capital 4.1% 0.5%
1 See note 2 for details of prior period restatement
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