TechMARK movers: Weak US market hits Genus

12th Nov 2009 15:05

Animal breeding technology developer Genus warns that weak agricultural markets have hit profits. The US market continues to deteriorate while research and development costs have risen. Genus stated at its AGM that trading has been solid and adjusted operating profits were in line with the same period last year. However, adjusted profit after interest on a constant currency basis is 15% lower in the four months to October 2009. That is mainly down to higher interest costs. Net debt was £95.2m at the end of October 2009. There are signs of recovery in the European and Latin American agricultural markets but first half profits on a constant currency basis will be lower than last year. There should be an improvement in the second half but the level of that improvement is dependent on how fast the US recovers. KBC Peel Hunt has cut its 2009-10 profit forecast from £33m to £31m. That includes a £500,000 adjustment for higher pension charges. CAD systems provider Aveva reported interim figures in line with expectations and the share price was buoyed by an improvement in the oil and gas sector. Adjusted pre-tax profit fell from £31m to £26.6m in the six months to September 2009. Revenues declined from £74.8m to £69.9m in challenging market conditions. The shipbuilding sector is a major customer and this is in the doldrums at the moment. The interim dividend has been increased from 2.86p to 3p a share. Panmure Gordon expects Aveva to have net cash of £148.8m by the end of March 2010. The broker estimates that Aveva needs around £50m for the business. The software company could use some of the cash on acquisitions but share buy backs and/or special dividends appear likely. FTSE TechMARK - RisersBT Group (BT.A) 150.10p +5.70%Aveva Group (AVV) 965.00p +5.46%XP Power (XPP) 336.00p +5.16%Alphameric (ALM) 31.50p +5.00%Ark Therapeutics (AKT) 39.00p +4.00%AEA Technology (AAT) 29.00p +3.57%Psion (PON) 120.75p +3.21%Alterian (ALN) 205.00p +3.02%NXT (NTX) 18.00p +2.86%Ricardo Group (RCDO) 235.00p +2.17%FTSE TechMARK - FallersGenus (GNS) 585.50p -8.52%Oxford Biomedica (OXB) 13.50p -3.57%RM Group (RM.) 145.00p -2.85%Kewill (KWL) 97.00p -1.52%Dialight (DIA) 206.00p -1.44%Vernalis (VER) 80.50p -1.23%Renovo Group (RNVO) 25.25p -0.98%Intec Telecom (ITL) 108.25p -0.92%ProStrakan (PSK) 108.75p -0.91%Sinclair Pharma (SPH) 33.75p -0.74%