Adoption of IFRS

Genus PLC
05 March 2007


FOR IMMEDIATE RELEASE                                               5 March 2007



                                   GENUS plc

                           ('Genus' or 'the Company')


        Adoption of International Financial Reporting Standards ('IFRS')


As announced on 9 January 2007, Genus will be preparing its consolidated
financial statements for the year ending 30 June 2007 under IFRS, in progressing
towards the Company's move from AIM to the Official List later this year. The
interim financial information for the six months ended 31 December 2006 due to
be announced on 13 March 2007 will also be prepared under IFRS.


To assist investors in their understanding of the impact of IFRS on the Company,
Genus has today posted to the Company website (www.genusplc.co.uk) a Transition
Document setting out the Company's IFRS accounting policies and restated
financial information for the previously published fifteen month period ended 30
June 2006, together with a reconciliation from UK Generally Accepted Accounting
Principles ('UK GAAP') to IFRS. The financial information presented in the
Transition Document has been prepared on the basis of all IFRS that are expected
to be applicable for the Company's 2007 reporting. This information is subject
to ongoing review and possible amendment as set out in the Transition Document.


Adoption of IFRS as a basis of accounting does not alter the underlying
operational performance or cash flows of the Company, or the Company's
distributable reserves.


The main changes, when compared with the Company's financial results for the 15
months ended 30 June 2006 prepared under UK GAAP, are:


   • Operating profit from continuing operations increases from £10.8m to
     £20.1m.


   • Net assets at 30 June 2006 increase by £47.8m to £149.2m.


   • Basic EPS for continuing operations increases from 6.8p to 24.5p.


   • Adjusted EPS* for continuing operations becomes 19.7p due to the
     exclusion of EPS of 5.3p relating to businesses classified under IFRS 5 as
     discontinued. Adjusted EPS of 25.4p under UK GAAP includes businesses
     classified under IFRS as both continuing and discontinued.


* (earnings before the fair value component of the movement in biological
  assets, amortisation of intangible assets, share based payments expense and
  exceptional items).



The changes listed above arise principally from the application of International
Accounting Standard ('IAS') 41 Biological Assets, IFRS 3 Business Combinations
and IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.


Whilst a more detailed description can be found in the Transition Document, a
summary of the impacts of adopting these standards on the Company's profits and
net assets is as follows:


Treatment of Bovine and Porcine Biological Assets (IAS 41)


The animals comprising porcine breeding stock and the bovine bull stud, are
defined as 'Biological Assets' under IAS 41. The inventory of bovine and porcine
semen is defined as 'Agricultural Produce' under IAS 41 and is transferred to
inventory at fair value at point of harvest.

Biological Assets and Agricultural Produce are recognised and measured at fair
value at each balance sheet date.


As a result of the adoption of IAS 41, the higher value of Biological Assets and
Agricultural Produce increased the Company's total assets by £90.0m (before
taking into account deferred tax) and increased operating profit for the fifteen
months ended 30 June 2006 by £7.0m.


Recognition of goodwill and intangible assets on business combinations (IFRS 3)


Under IFRS 3, goodwill is no longer amortised but is subject to annual
impairment reviews. Additionally goodwill and intangible assets are treated as
being denominated in the functional currency of the operating unit to which they
relate. Intangibles are amortised over their useful economic life.

As a result of the adoption of IFRS 3, the Company's total assets have been
increased by £35.1m (before taking into account deferred tax), and operating
profit for the fifteen months ended 30 June 2006 has increased by £3.5m,
principally due to the elimination of goodwill amortisation.


Discontinued Operations (IFRS 5)


In accordance with IFRS 5, the assets and liabilities of the Development
Consulting, Animal Health and Shrimp Genetics businesses at 30 June 2006 have
been reclassified as assets and liabilities held for sale and their results
reclassified in the income statement as discontinued operations.


Income Taxes


The adoption of IFRS as a basis for accounting has been solely for the Company's
consolidated group financial statements. Current taxation is calculated with
reference to the performance of the individual legal entities that form the
Company's group.


The impact of the transition to IFRS at 30 June 2006 has been to increase the
deferred tax asset of £9.5m to £10.8m and to record a deferred tax liability of
£80.2m. The latter increase arises primarily as a result of the recognition of a
deferred tax liability associated with the fair value of Biological Assets
recorded in accordance with IAS 41 and the increase in intangible assets
recorded in accordance with IFRS 3.


Other Impacts on IFRS Adoption


There are no other material impacts on the Company's financial statements
arising from the adoption of IFRS adoption. Non-material impacts relate to
financial instruments, share based payments, finance leases, post employment
medical and retirement benefits and short term employee benefits, and are
detailed in the Transition Document.


Summary Profit and Loss Impact


The table below sets out a reconciliation of operating profit for continuing
operations for the fifteen month period ended 30 June 2006 under UK GAAP and
IFRS.


                                                                            £m
Operating profit as reported under UK GAAP (audited)                      10.8

IAS 41 Biological Assets                                                   7.0
IFRS 3 Business Combinations                                               3.5
IFRS 5 Discontinued Operations                                            (1.1)
Other                                                                     (0.1)
Operating profit restated under IFRS (audited)                            20.1


A more detailed analysis of the adjustments made to the profit and loss account
for the fifteen month period ended 30 June 2006 can be found in the Transition
Document.


Summary Balance Sheet Impact


The table below sets out a reconciliation of net assets under UK GAAP and under
IFRS at 30 June 2006.

               Gross    Recorded against    Total     Deferred Tax on      Net
             Movement     Sygen Goodwill   Assets      Gross Movement   Assets

                  £m                  £m       £m                  £m       £m

Net Assets
at
30th June                                                                
2006
under UK
GAAP                                                                     101.4

Uplift of
Biological
Assets and
Agricultural
Produce to
fair value     135.5               (45.5)    90.0               (48.2)    41.8

Recognition
of
Sygen
intangible      
assets          89.1               (54.0)    35.1               (30.3)     4.8
                 
               224.6               (99.5)   125.1               (78.5)   148.0

Other                                                                      
Impacts                                                                    1.2
                                                                           
Net Assets
at 30 June 2006
under IFRS                                                               
(audited)                                                                149.2
                                                                           


A more detailed analysis of the adjustments made to the balance sheet at 1 April
2005 and 30 June 2006 can be found in the Transition Document.


The potential of short term volatility of the Company's income and net assets
will be greater under IFRS, principally arising from fair value adjustments
under IAS 41. However, the adoption of IFRS will have no impact on the Company's
cash flows.



In order to assist in the understanding of the Company's performance, the Board
believes it is also important to show profits before the fair value adjustments
arising under IAS 41. As a result, the income statement shows separately the
fair value adjustments and adjusted operating profits, defined as operating
profit from continuing operations before fair value adjustments arising on
biological transformation, amortisation of intangibles, share based payments
expense and exceptional expenses.


_____________________________________________________________________



For further information please contact:

Genus plc
David Timmins
Group Finance Director                                    Tel: [phone]



                      This information is provided by RNS
            The company news service from the London Stock Exchange
 END
MSCBZLLBDXBFBBX