ShapeShapeauthorShapecrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Sygen International Announces Preliminary Results for 2004-05

GLOBAL - Sygen International plc (LSE: SNI.L), a world leader in applying quantitative genetics and biotechnology to animal breeding, today announced that group profit before tax, amortisation and exceptional items for the financial year ended 30 June 2005 was up 66% to 11.1 million at constant exchange rates, and at actual rates, profit before tax, amortisation and exceptional items was up 54% to 10.3 million, compared with 6.7 million last year.

Sygen International Announces Preliminary Results for 2004-05 - GLOBAL - Sygen International plc (LSE: SNI.L), a world leader in applying quantitative genetics and biotechnology to animal breeding, today announced that group profit before tax, amortisation and exceptional items for the financial year ended 30 June 2005 was up 66% to 11.1 million at constant exchange rates, and at actual rates, profit before tax, amortisation and exceptional items was up 54% to 10.3 million, compared with 6.7 million last year. Pig Improvement Company UK

Key features of the year:

  • Profit before tax (after amortisation and exceptional items) was 6.2 million (FY2004: 6.0 million).

  • Earnings per share, before amortisation and exceptional items, increased 41% to 2.4 pence, compared with 1.7 pence last year.

  • Recommended final dividend of 0.8 pence per share, up 23% over prior year.

  • Net exceptional items of (3.0) million mainly in respect of one-off restructuring provision in Europe.

  • Financial position strengthened further net cash at 30 June 2005 was 25.7 million, up 7.9 million from prior year; no bank debt. In August 2005, new US$75 million credit facility signed to replace existing US$25 million term loan.

  • Research & Development ahead of plans genetic discovery pipeline increased 3x to over 13,000 markers; seven additional patents granted during the year, bringing the total to 46.

  • PIC new products and strong producer margins in Americas and Europe, coupled with growing momentum in Asia, delivered a 42% improvement in operating profit.

  • SyAqua 12% increase in volume and turnover; however, short-term production and market disease issues led to this emerging division incurring a loss.

  • The successful introduction of Speed LineTM, SyAqua's first shrimp product utilising Sygen's advanced technology, demonstrates the rapid transferability of Sygen's technology to other species.

PIC's operating performance for the year was stronger than we anticipated at the half-year, with an improvement in operating profit of 42% over prior year at 21.0 million (2004: 14.8 million). The Americas business performed ahead of expectations, reflecting the success of new technology products, as well as to stronger market conditions across the region. Europe's second half performance was ahead of budget due to improved trading in Southern Europe and to the benefits of restructuring actions taken during the second half. Asia's profit was double that reported for the last financial year, due to a combination of the continued success and extension of the new business model within the region and to stronger market conditions in China.

SyAqua incurred an operating loss for the year of 1.6 million (2004: 0.2 million profit). Overall market conditions were extremely challenging in each country. The division was impacted by disease in the Brazilian market and by production issues in Thailand and Mexico which had an adverse impact on costs of goods sold. Despite these conditions, SyAqua's total volume and turnover increased 12% over prior year.

Chairman, Brian Baldock, commented:

We are delighted to report good financial results for the year. An important contributor to the results was the successful introduction of new products in both PIC and SyAqua, creating value for Sygen's customers and shareholders. In particular, the rapid introduction of Speed LineTM shrimp, our first new technology product in a species other than pigs, demonstrates our ability to leverage our proprietary technology across multiple species, and gives us further confidence in our strategy.

For the current financial year, leading indicators for the US pig industry point to favourable market conditions. PIC Asia's innovative business model has been gaining momentum and we are confident that this region will continue to offer excellent growth prospects for Sygen. PIC Europe's business is expected to benefit further from the restructuring measures taken in 2005. Against this backdrop, and with continued benefits from biotechnology, we anticipate some further progress in PIC overall. Last year's operating loss at SyAqua was substantially due to external short term factors which masked good underlying progress, and we expect a profit from this business in the 2006 financial year.

Our strong cash generation, robust balance sheet and access to uncommitted funds support the implementation of our strategy.

Source: PIC Asia - 7th September 2005

the Fish Site Editor

Learn more