RNS Number:0451O
Genetix Group PLC
29 July 2003


               Genetix Group plc announces Interim Financial Results
                     for the six months ended 30 June 2003

New Milton, UK, 29 July 2003 - Genetix Group plc (LSE:GTX), the genomics and
proteomics technology group, today announces its interim financial results for
the six months ended 30 June 2003.

Summary:

*  Sales of #4.9 million (2002: #6.3 million) in continuing difficult trading 
   environment
*  Pre-tax profit of #0.4 million (excluding goodwill of #0.2 million) (2002: 
   #1.1 million); pre-tax profit #0.2 million (2002: #1.0 million)
*  Sustained investment in R&D and sales and marketing
*  Strengthened sales presence in key US market
*  New aQuire scanner successfully launched; aliQuot micro-dispenser ready for 
   launch
*  Cash balance increased to #21.4 million (2002: #21.1 million)

Commenting on the results, Mark Reid, Chief Executive of Genetix, said:

"In line with many other companies in our sector, Genetix faced challenging
conditions throughout the first six months of 2003.  Difficulties for the
biotechnology sector in raising funds, cutbacks and delays in academic grants,
and pressure on pharmaceutical companies to orientate their R&D towards
late-stage products have put pressure on supplier companies such as Genetix.  We
have reacted by sustaining investment in R&D and sales and marketing, to ensure
we will benefit fully from the expected upturn in our core markets.  In
particular, we are focusing our new products more towards the biopharmaceutical
sector, strengthening our US sales team through key appointments and
concentrating on improving sales opportunities across all areas of the business.
  Despite these tough conditions, Genetix remains profitable overall and
financially strong with #21.4 million of cash in the bank and an innovative
pipeline of new products to generate future revenue."

Enquiries:

Genetix Group plc
Mark Reid, Chief Executive
Gary Corsi, Finance Director
Tel:  01425 624600

Financial Dynamics
Jonathan Birt/Sarah MacLeod
Tel:  020 7831 3113

The release will be available on the Company's website: www.genetix.com

Notes to Editors

About Genetix Group plc

Genetix Group plc is leading developer of automated systems for the
understanding of systems biology.  Genetix made a significant contribution to
the Human Genome Project by supplying high-throughput equipment to seven of the
leading eight laboratories in the consortia. Genetix, through its R&D expertise
and scientific resource, is committed to the continual development of innovative
solutions to accelerate the rate of global scientific discovery. Genetix is
quoted on the London Stock Exchange and is based in New Milton, Hampshire, UK.



Chairman's Statement

Financial review

Genetix generated turnover of #4.9 million in the first six months of the year.
Like many companies in our sector, we encountered cash conservation among
customers that has slowed the pace of order placement.  Consequently, turnover
was down 23% compared to the same period last year and the resultant loss of
gross margin produced #0.4 million profit before tax (excluding goodwill of #0.2
million).

Sales of instruments fell 29% to #3.2 million compared with #4.5 million in the
same period last year; sales of consumables and services were down 9% to #1.7
million from #1.9 million in 2002.

The Group's gross margin was stable at 49% (2002: 50%).  An operating profit of
#0.1 million (excluding goodwill of #0.2 million) was achieved despite increased
investment in sales and marketing expenditure and continued commitment to
research and development.  R&D expenditure was #0.7 million (2002: #0.7 million)
before taking credit for UK governmental LINK grant recoveries of #0.1 million
(2002: nil).

The Group's earnings per share excluding goodwill were 0.49p (2002: 1.11p).

In May 2003, Genetix purchased and cancelled 1,000,000 ordinary shares at a
price of 24p.

The Group generated cash during the first six months through careful management
of working capital, interest received and modest capital expenditure
requirements.  Cash increased by #0.7 million (including exchange gains) before
funding the share buy-back of #0.2 million, bringing the balance at the end of
June 2003 to #21.4 million.

The current intention of the Directors is that any earnings will be retained in
the business and no dividend is proposed for 2003.

Operational review

Despite the challenging economic climate, Genetix continued to make progress
against its key objectives for 2003.

We established four business groups to concentrate our sales opportunities on
our main areas of interest - Picking, Microarraying, Liquid Handling and
Consumables and Services.  This is the first stage of a reallocation of
responsibilities within the business, with direct accountability for the
strategic development of our product groups.  By the fourth quarter of 2003, we
will have completed the recruitment of key people to operate the new structure.

We recruited a senior sales executive to manage North America (which now
represents 52% of total sales) and have added sales staff for consumables and
applications support, based in our Boston office.  In the second half of the
year, we will be recruiting another US sales person to cover the mid-West
territory.

We have made further improvements to our aQuire scanner since its launch at the
end of 2002, including new software and imaging.  We have already made initial
sales and plan to follow this up with marketing campaigns during the second half
of the year.

Our new micro-dispensing instrument, the aliQuot, has moved from prototype to
finished product within the last six months.  We are excited about prospects for
this product in view of its potential applications within the pharmaceutical
sector and, in general, the wider opportunities for new liquid handling products
over the medium-term given our growing expertise in this area.

We have developed a new cell picker based on our QPix and gelPix technologies
that will be launched at the end of 2003.  This product has many applications
within the cell biology sector, with the bio-pharmaceutical market being
targeted as one of the fastest growing areas of interest for Genetix.

Research collaborations

We continue to make good progress on the LINK research project for
protein-protein interaction.  Genetix has produced its first prototype of an
automated system and validated it against the standard manual method of
measuring protein-protein interactions.  We have also demonstrated a method of
measuring protein-protein interactions in mammalian cells using modified Genetix
equipment.

Our expertise in genomics was further recognised by the award of an EU grant to
investigate environmental effects on gene regulation.  Genetix is contracted to
provide genomics-based reagents and services worth Euro0.2 million over 3 years to
members of the consortium.

Outlook

Genetix continues to be a significant player in the markets it serves and we
remain confident in the Company's ability to increase its share of these as well
as the opportunities to enter new markets.  Whilst the external environment
continues to remain tough, we will continue to do what is necessary to position
the business to take advantage of current and future opportunities arising,
including the positioning of new products into growing sectors.

In view of the continuing uncertain trading environment, we remain cautious
about prospects for 2003, but anticipate maintaining a strong cash position of
over #20 million throughout the year.  We are encouraged by recent signs of a
return of investor confidence in the biotech sector on the back of promising
clinical data and product approvals, which underline the long-term promise of
the industry.  We believe that the changes we are making in sales and marketing
will begin to improve our sales performance towards the end of the year and
leave Genetix well positioned to respond to the challenges of this dynamic
market place.

John Morgan
Chairman



Unaudited consolidated profit & loss account
for the six months ended 30 June 2003


                                                                 Unaudited         Unaudited           Audited
                                                                first half        first half         full year
                                                                      2003              2002              2002
                                                                      #000              #000              #000
                                                                    ______            ______            ______
Turnover - continuing operations                                     4,889             6,329            12,572
Cost of sales                                                      (2,503)           (3,186)           (6,255)
                                                                    ______            ______            ______
Gross profit                                                         2,386             3,143             6,317
Research & development                                               (591)             (689)           (1,448)
Sales & administrative expenses                                    (1,743)           (1,686)           (3,356)
Amortisation of goodwill                                             (181)             (181)             (362)
                                                                    ______            ______            ______
Total administrative expenses                                      (2,515)           (2,556)           (5,166)
                                                                    ______            ______            ______
Operating (loss) / profit - continuing operations                    (129)               587             1,151
Net interest receivable                                                379               381               799
                                                                    ______            ______            ______
Profit on ordinary activities before taxation                          250               968             1,950
Tax on profit on ordinary activities                                  (75)             (290)             (585)
                                                                    ______            ______            ______
Profit for the period                                                  175               678             1,365
                                                                    ______            ______            ______

Adjusted earnings per share                                          0.49p             1.11p             2.23p
Earnings per share                                                   0.24p             0.87p             1.76p



Unaudited consolidated statement of total recognised gains and losses
for the six months ended 30 June 2003


                                                                 Unaudited         Unaudited           Audited
                                                                first half        first half         full year
                                                                      2003              2002              2002
                                                                      #000              #000              #000
                                                                    ______            ______            ______
Profit for the period                                                  175               678             1,365
Currency translation differences on foreign
currency net investments                                               (5)               (8)              (28)
                                                                    ______            ______            ______
Total recognised gains and losses for the
period                                                                 170               670             1,337
                                                                    ______            ______            ______



Unaudited consolidated balance sheet
at 30 June 2003


                                                                 Unaudited         Unaudited           Audited
                                                                   30 June           30 June       31 December
                                                                      2003              2002              2002
                                                                      #000              #000              #000
                                                                    ______            ______            ______
Fixed assets                                                                                               
Intangible assets                                                    6,627             6,996             6,826
Tangible assets                                                      2,291             2,366             2,329
Investments                                                              1                 3                 1
                                                                    ______            ______            ______
                                                                     8,919             9,365             9,156
                                                                    ______            ______            ______
Current assets
Stocks                                                               1,518             1,929             1,522
Debtors                                                              2,081             2,161             2,255
Cash at bank and in hand                                            21,372            21,050            20,867
                                                                    ______            ______            ______
                                                                    24,971            25,140            24,644
Creditors due within one year                                      (2,813)           (2,824)           (2,654)
                                                                    ______            ______            ______
Net current assets                                                  22,158            22,316            21,990
                                                                    ______            ______            ______
Total assets less current liabilities                               31,077            31,681            31,146
Provisions for liabilities and charges                               (403)             (238)             (401)
                                                                    ______            ______            ______
Net assets                                                          30,674            31,443            30,745
                                                                    ______            ______            ______

Capital and reserves
Share capital, premium, merger and other reserves                   25,464            25,463            25,464
Profit and loss account                                              5,210             5,980             5,281
                                                                    ______            ______            ______
Equity shareholders' funds                                          30,674            31,443            30,745
                                                                    ______            ______            ______



Unaudited reconciliation of movements in consolidated shareholders' funds
for the six months ended 30 June 2003

                                                                 Unaudited         Unaudited           Audited
                                                                first half        first half         full year
                                                                      2003              2002              2002
                                                                      #000              #000              #000
                                                                    ______            ______            ______
Profit for the period                                                  175               678             1,365
Currency translation differences                                       (5)               (8)              (28)
Share capital issued (net of costs)                                      -                20                21
Share capital re-purchased (including fees)                          (241)                 -           (1,366)
                                                                    ______            ______            ______
Net movement in shareholders' funds                                   (71)               690               (8)
Opening shareholders' funds                                         30,745            30,753            30,753
                                                                    ______            ______            ______
Closing shareholders' funds                                         30,674            31,443            30,745
                                                                    ______            ______            ______



Unaudited consolidated cash flow statement
for the six months ended 30 June 2003

                                                                 Unaudited         Unaudited           Audited
                                                                first half        first half         full year
                                                                      2003              2002              2002
                                                                      #000              #000              #000
                                                                    ______            ______            ______
Net cash inflow from operating activities                              593               456             1,234
                                                                    ______            ______            ______
Returns on investments and servicing of finance
Interest received                                                      379               381               808
Interest paid                                                            -                 -               (9)
                                                                    ______            ______            ______
                                                                       379               381               799
                                                                    ______            ______            ______
Taxation
Corporation tax (paid) / refund                                      (259)               183                13
                                                                    ______            ______            ______
Capital expenditure and financial investment
Purchase of tangible fixed assets                                     (99)             (153)             (289)
Purchase of intangible fixed assets                                   (37)              (33)              (61)
Sale of tangible fixed assets                                            7                 -                 -
                                                                    ______            ______            ______
                                                                     (129)             (186)             (350)
                                                                    ______            ______            ______
Net cash inflow before use of liquid
resources and financing                                                584               834             1,696
                                                                    ______            ______            ______
Financing
Issue of share capital (net of expenses)                                 -                20                21
Share capital re-purchased (including expenses)                      (241)                 -           (1,366)

                                                                    ______            ______            ______
Net cash (outflow) / inflow from financing                           (241)                20           (1,345)
                                                                    ______            ______            ______
Increase in cash                                                       343               854               351
                                                                    ______            ______            ______



Notes to the unaudited interim results

1.         Basis of preparation of interim report

The interim financial information of Genetix Group plc is made up to 30 June
2003.  It has been prepared in accordance with the accounting policies set out
in, and is consistent with, the audited financial statements for the year ended
31 December 2002.

The results for the year ended 31 December 2002 have been extracted from the
audited financial statements, which have been filed with the Registrar of
Companies.  The auditor's report on those accounts was unqualified.

            The unaudited profit and loss account for each of the six month
periods and the unaudited balance sheet as at 30 June 2003 do not amount to full
accounts within the meaning of section 240 of the Companies Act 1985 and have
not been delivered to the Registrar of Companies.

            The interim report was approved by the Board of Directors on 29 July
2003.

2.                  Turnover

In the opinion of the Directors, the Group operates only one class of business,
namely the provision of instrumentation, consumables and services for systems
biology.  Turnover can be analysed as follows:


                                                              Unaudited       Unaudited         Audited
                                                             first half      first half       full year
                                                                   2003            2002            2002
                                                                   #000            #000            #000
                                                                 ______          ______          ______

By geographic destination
UK                                                                  683             992           1,487
Rest of Europe                                                    1,066           1,329           2,402
North America                                                     2,563           2,767           6,565
Rest of World                                                       577           1,241           2,118
                                                                 ______          ______          ______
                                                                  4,889           6,329          12,572
                                                                 ______          ______          ______


                                                              Unaudited       Unaudited         Audited
                                                             first half      first half       full year
                                                                   2003            2002            2002
                                                                   #000            #000            #000
                                                                 ______          ______          ______

By type
Instrumentation                                                   3,179           4,451           9,063
Consumables and services                                          1,710           1,878           3,509
                                                                 ______          ______          ______
                                                                  4,889           6,329          12,572
                                                                 ______          ______          ______


3.         Tax on profit on ordinary activities

The tax charge for the period is based upon the estimated effective rate for the
year of 30% (December 2002 - 30%).

4.         Earnings per share

Adjusted earnings per share are calculated on earnings of #175,000 (2002:
#678,000) adjusted for amortisation of goodwill of #181,000 (2002: #181,000) and
weighted average shares in issue of 72,461,119 (2002: 77,532,696).

Earnings per share are calculated on earnings of #175,000 (2002: #678,000) and
weighted average shares in issue of 72,461,119 (2002: 77,532,696).


5.         Notes to the consolidated cash flow statement

(a)        Reconciliation of operating profit to net cash inflow from operating
activities


                                                                  Unaudited        Unaudited         Audited
                                                                 first half       first half       full year
                                                                       2003             2002            2002
                                                                       #000             #000            #000
                                                                     ______           ______          ______


Operating (loss) / profit                                             (129)              587           1,151
Depreciation and amortisation of patents and licences                   192              181             367
Amortisation of goodwill                                                181              181             362
(Profit) / loss on sale of fixed assets                                 (7)                -               2
Decrease / (increase) in stocks                                           4            (152)             255
Decrease / (increase) debtors                                           175            (385)           (479)
Increase / (decrease) in creditors                                      339               98            (50)
Exchange gain on foreign currency                                     (162)             (54)           (374)
                                                                     ______           ______          ______
Net cash inflow from operating activities                               593              456           1,234
                                                                     ______           ______          ______



(b)       Analysis of changes in net funds

                                           At 1 January             Cash         Exchange       At 30 June
                                                   2003             flow         movement             2003
                                                   #000             #000             #000             #000
                                                 ______           ______           ______           ______
Cash at bank and in hand                         20,867              343              162           21,372
                                                 ______           ______           ______           ______
Total                                            20,867              343              162           21,372
                                                 ______           ______           ______           ______



6.         Copies of this report are being sent to all shareholders and copies
are available from the Company's registered office at Queensway, New Milton,
Hampshire, BH25 5NN.

Independent review report by the auditors to Genetix Group plc

Introduction

We have been instructed by the Company to review the financial information for
the six months ended 30 June 2003 which comprise the consolidated profit and
loss account, the consolidated statement of total recognised gains and losses,
the consolidated balance sheet, the consolidated cash flow statement, and the
related notes 1 to 6, together with the reconciliation of movements in
consolidated shareholders' funds.  We have read the other information contained
in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.

This report is made solely to the company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board.  Our work has been undertaken so that we
might state to the company those matters we are required to state to them in an
independent review report and for no other purpose.  To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Company, for our review work, for this report, or for the conclusions we
have formed.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors.  The Directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to interim figures should be consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom.  A
review consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed.  A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions.  It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit.  Accordingly, we do not
express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2003.

Deloitte & Touche
Chartered Accountants
Southampton
29 July 2003



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