Trading Update

 

TIDMGTX 
 
RNS Number : 7535V 
Genetix Group PLC 
16 July 2009 
 

 
 
Genetix Group plc 
Trading update for the six months ended 30 June 2009 
 
 
New Milton, UK, 16 July 2009 - Genetix Group plc (AIM:GTX) ("Genetix" or the 
"Group"), the cell imaging and analysis group, today provides an update on 
trading ahead of its interim results for the six months ended 30 June 2009, 
which will be announced on 6 August 2009. 
 
 
Revenue for the six months ended 30 June 2009 is expected to increase by 14% to 
approximately GBP14.1 million (June 2008: GBP12.4 million), driven by increases 
in all our key product areas - clinical instruments, cell biology, 
genomics-based instruments and the recurring revenue streams of consumables and 
services. Revenue was positively impacted by the strengthening US dollar against 
Sterling estimated to be approximately GBP1.7 million. 
 
 
Overall, exchange rate movements did not affect underlying profitability due to 
the increase in the US cost base when converted into Sterling and realised 
exchange losses on forward currency contracts maturing in the period. 
 
 
Underlying operating profit is expected to increase 24% to around GBP1.2m (June 
2008: GBP1.0 million), with underlying pre tax profits constant at GBP1.3m (June 
2008: GBP1.3 million), reflecting lower interest income arising from lower 
interest rates available in the market. The Group's effective tax rate on 
underlying profits is expected to be consistent with 2008 at approximately 11%, 
resulting in underlying earnings per share of 1.60 pence, an increase of 6% over 
2008. Results from the recently-acquired SlidePath (digital pathology business), 
while not material to the Group's results, have been in line with our 
expectations. 
 
 
In common with many companies, the global economic uncertainties are having an 
impact in the short term on some of our customers' spending plans. We are 
successfully addressing this challenge by continuing to focus on our products' 
compelling value propositions as well as through careful cost discipline. 
 
 
The Group will record an GBP846,000 gain on marking to market its forward 
currency contracts. As at 30 June 2009, the unrealised loss arising from these 
fair value changes was GBP30,000. (31 December 2008: GBP876,000 loss). The Group 
reports and measures its underlying profitability and earnings per share 
excluding the unrealised fair value adjustments on forward currency contracts 
and adjustments to acquired intangibles and goodwill. 
 
 
Charles de Rohan, Chief Executive of Genetix, commented: 
 
 
"We expect to deliver another strong set of results despite the challenges of 
the current economic environment. We are excited about the opportunities that 
our recent acquisition, SlidePath, brings us in the digital pathology market and 
view this as an important area of future growth for the Group. Genetix is 
profitable, financially strong and well placed to meet the opportunities and 
challenges for the remainder of 2009. The Board remains confident about the 
Group's prospects." 
 
 
Genetix will announce its interim results for the six months ended 30 June 2009 
on 6 August 2009. An analyst meeting will be held in London at the offices of 
Piper Jaffray at One South Place, London EC2M 2RB at 10.30am. 
 
 
+------------------------------------+------------------------------------+ 
| Genetix Group plc                  |                                    | 
+------------------------------------+------------------------------------+ 
| Charles de Rohan, Chief Executive  | Tel: [phone]           | 
+------------------------------------+------------------------------------+ 
| Andrew Kellett, Finance Director   |                                    | 
+------------------------------------+------------------------------------+ 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| Financial Dynamics                 |                                    | 
+------------------------------------+------------------------------------+ 
| Jonathan Birt / Susan Quigley      | Tel: [phone]          | 
+------------------------------------+------------------------------------+ 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| Piper Jaffray Ltd.                 |                                    | 
+------------------------------------+------------------------------------+ 
| James Steel                        | Tel: [phone]          | 
+------------------------------------+------------------------------------+ 
 
 
The release will be available on the Company's website: www.genetix.com 
 
 
Notes to Editors 
 
 
About Genetix Group plc 
 
 
Headquartered in New Milton, UK, with offices in the UK, US, Germany, Ireland 
and Japan, and quoted on the AIM (GTX: AIM), Genetix provides scientists and 
clinicians with unrivalled solutions for imaging and intelligent image analysis 
in the life science and diagnostic markets. 
In life sciences, the company's systems set industry standards for screening and 
selection of mammalian secretory cell lines. Other systems evaluate the response 
of cells to potential therapeutic agents and quantify tissue biomarkers. 
In diagnostics, Genetix holds a leading position in genetic testing with 
thousands of the company's platforms used in laboratories worldwide. 
Through its expertise in robotics, cell and molecular biology, image analysis 
and interpretation, supported by a strong IP portfolio, Genetix is committed to 
the continual development of innovative solutions. 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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