2 August 2014

Sygen International

HOLD

23/04/2003 Leslie Copeland

Smallcap animal genetics and biotechnology expert Sygen's stock market value began to creep up steadily in March and April, no doubt spurred on by two March announcements. Since we recommended the company at 38.5p in the March 2003 Company Watch, Sygen has set up a Funded Chair of Genetic of Genetic Information Systems with the University of of New England in Armidale, Australia, which has strengthened the venture's network of research collaborations around the world. As chief executive Phillip David explained - 'The Sygen Chair further enhances our technical capabilities as we continue to apply our genetics and biotechnology across food animal species'. Furthermore, the market took notice of 301,447 options granted to finance director John Willard Adams exercisable at 38.25p. Sygen's last reported figures were for the half to end-December - pre-tax profits fell from £5.3m to £3.1m on sales of £63m, a drop from £84.1m. Encouragingly however, the core PIC business performed well despite severe downturn in the pig cycle. And the group also continued its transition to an 'indirect business model driven by royalty streams' which should slash the proportion of business exposed to touchy market cycles. Analysts are going for profits of £9.7m and eps of 2.2p a share for the current year, for a forward p/e of 19.5. A forward p/e of 19.5 isn't budget stuff, but you should hold your shares for future potential.

Sector: Food Producers

Companies: Sygen International

Market cap: £126n

PE Forecast: 19.5

Share price: 43p

Growth Company Investor: free trial

Since 2008, our share tips outperformed the benchmark by 281%. Take a free trial and get access to our recommendations today. Start free trial now.

Share recommendations and small-cap stock picks

Small-cap and growth company share recommendations on AIM- and PLUS-listed companies. Latest analysts' stock tips and advice on which are the best shares to buy on London's junior stock markets.

What Investment magazine: save 45% on the shop price

Be the first to receive our independent analysis and research, designed to help you generate more wealth for you and your family over the long term. Subscribe and save.

Popular Recommendations