Genus PLC on Thursday reported a jump in its interim revenue but suffered a plunge in profit, as the firm announces Chief Executive Officer Stephen Wilson will retire.

Shares were up 10% at 2,978.00 pence each on Thursday morning in London.

Genus, which produces biotechnology products for cattle and pig farmers, said revenue rose by 25% to £350.2 million for the six months that ended on December 31, from £281.2 million a year before.

Pretax profit, however, was down 39% at £15.0 million from £24.4 million a year earlier, reflecting a £17.2 million non-cash decrease in the net IAS 41 biological assets fair value, compared to a £6.8 million decrease the year before. This showed an ‘increase in discount rates applied in the valuation calculation as well as offsetting movements in other key inputs,’ Genus explained.

Adjusted pretax profit was up 14% to £42.2 million from £37.0 million, as adjusted operating profit grew by 15% to £56.0 million from £43.3 million a year earlier.

Basic earnings per share were down 33% to 20.4 pence from 30.4p a year prior.

In Genus PIC, revenue jumped by 25% to £179.0 million from £143.5 million. The company noted that the performance in China improved, particularly the growth from royalty contracts as customers began recovering from the previous year’s downturn.

Chief Executive Stephen Wilson said: ‘The group achieved a good performance during the first half of the year, despite challenging market conditions for producers in several markets. PIC delivered a new record half year performance, with strong momentum in North America in particular, and China’s performance improved as the porcine market began a gradual recovery from the cyclical downturn, as we had expected.’

Genus kept its interim dividend unchanged at 10.3 pence per share.

Looking ahead, Genus said financial 2023 expectations remain unchanged.

Additionally, the company said Chief Executive Officer Stephen Wilson will retire after ten years with Genus, leaving on September 30 this year. The search for his successor has begun, Genus said.

Chair Iain Ferguson said: ‘During Stephen’s time at Genus, including six years as chief financial officer and four years as chief executive, the company has made great strategic progress as a world-leading animal genetics company, making great strides in its vision to sustainably pioneer animal genetic improvement to help nourish the world.’

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