September 10, 2003
Sygen FY Pretax Profit Decreases; Sees Gradual Recovery in NAmerican Pig Prices
Sygen International PLC, a company applying quantitative genetics and biotechnology to animal breeding, said pretax profit on ordinary activities was 7.1 mln stg in the year to June 30, down from 12.7 mln the year earlier, following the severe downturn in the pig cycle.
"A gradual recovery in pig prices is underway in North America. We expect demand for our products to increase as the year progresses and market conditions improve. We also expect to make further progress in implementing our multi-species strategy by seeking to establish new businesses in the genetic improvement of food animals," said the company's chairman Brian Baldock.
SyAqua, the company's first move in implementing the multi-species strategy, was profitable in first year of operations.
And the group ended the year with a strong balance sheet as net cash at June 30 was 23.6 mln stg and all outstanding loans were repaid.
The group noted that its investment in Research & Development was paying off as gross profits from biotechnology increased by 24 pct and the genetic marker pipeline increased by 2.5 times.
The group declared a final dividend of 0.55 pence per share, up 10 pct over prior year, is recommended.