Sygen International, recommended at 38.5p back in 2003, announced encouraging profits growth for the half to December, underpinned by a US pig market at the peak of its cycle.

Pre-tax profits at the biotechnology and animal breeding play rose from £2.3m to £4.6m on a flat turnover of £63.5m and investors can expect continued growth in the second half. Sygen continues to make strides with profits wrought from biotechnology applications, such as genetic markers for the improved breeding of pigs and other animals. Gross profits from biotechnology sparked up by 63% to £3.1m in the first half, accounting for 12% of total gross profit. The biotechnology model looks to be working well and should prove even more successful as it is rolled into other species like poultry. Within the US, operating profits perked up by 18% thanks to higher pig prices and lower prices for animal feeds. However operations in Europe, where the pig industry is hogged by big co-operatives less into biotech products, suffered losses of £300,000. In Asia, there was a small improvement in profits driven by growth from China. Sygen's recently launched shrimp ventures in Thailand, Mexico and Brazil (part of the SyAqua division) lost £900,000, as expected, after planned investment. Half-time net cash was a bumper £16.1m, even after investment in SyAqua. Sygen grows ever more robust. Hold.

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