Genus, a leading global animal genetics company, reports significant strategic progress and continued profit growth in the year to the end of June.
Adjusted profit before tax rose 7% to £49.7m (up 10% in constant currency), driven by strong performances in Genus PIC and Genus Asia, particularly China.
Statutory profit before tax rose 5% to £60.9m including a pension related exceptional credit of £44.2m (2015: £0.4m) and a reduction in the value of biological assets £17.1m (2015: £24.9m increase).
Adjusted basic earnings per share rose 7% to 60.7p (up 10% in constant currency) and statutory basic earnings per share increased 23% to 81.1p reflecting a lower statutory tax rate on adjusting items.
Revenue of £388.3m, reduced 3% due to lower bovine volumes in tough dairy markets and lower porcine by-product and up-front sales. Growth of 17% (14% in constant currency) in strategically important royalty revenues.
Chief executive Karim Bitar said: "Genus performed well overall in 2016 with another year of double digit constant currency profit growth and substantial strategic progress in our R&D endeavours in addition to growth in key markets such as China.
"We established gene editing as a core strategic longer term growth platform in Genus that offers considerable opportunity in disease resistance which will benefit animals, customers and consumers. Our GSS technology is ready for commercial launch and we expect to have legal clarity in the coming months on when we will be able to bring it to market.
"To pursue our long-term growth objectives, we plan to increase R&D investment in FY17 and therefore expect broadly stable constant currency results, however exchange rates should provide a benefit to the reported numbers.
"Overall we expect to perform in line with market expectations. We are confident in the future of the business and are proposing a 10% increase in the dividend."