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Received wisdom has it that in hard times people will cut their spending on their children before they make economies on their pets. Possibly so, but there is a suspicion that a decision to economise is behind a slowing in the rate of growth in sales of diet foodstuffs in the French, Dutch and Scandinavian markets for Dechra Pharmaceuticals. Dechra is an attractive way of investing in a robust sector of pharma but, with the shares on about 12 times’ this year’s earnings, the good news would seem to be in the price, the Times says. However, the Independent says buy. The US business is performing strongly, net debt is down and group revenues are up. They are also up in Europe. Moreover, at under 14 times forward earnings for this year and around 11 times on the estimates for next year, the valuation also remains attractive.
Trading Update The Board of Dechra issues the following update ahead of the publication of the Group's Preliminary Results for the year ended 30 June 2011 which will be announced on Tuesday 6 September 2011. Group revenue for the year ended 30 June 2011 was approximately 5.1% ahead of the equivalent period last year. Acquisitions contributed 1.8% of this figure whilst foreign currency movements had a negative impact of 0.5%. European Pharmaceuticals Revenue from this division increased by approximately 5.0% compared to last year. As indicated in our Interim Management Statement dated 10 May 2011, pharmaceuticals performed robustly (including the Genitrix® brands acquired in December 2010) but growth in diets revenue slowed in the second half of the financial year. US Pharmaceuticals Overall revenue was approximately 48.7% higher than last year. This figure includes sales from the DermaPet® acquisition completed in October 2010. DermaPet is now fully integrated into our existing US operations with the expected synergies being realised. Services Revenue grew by approximately 3.7% compared to last year with operating margin being broadly consistent with that achieved in the 2010 financial year. Net Borrowings As expected, cash flow in the second half of the financial year was strong leading to a substantial reduction in net borrowings compared to 31 December 2010. Summary Although economic conditions have had an impact on our markets, the Group has performed in line with our expectations and made solid progress in the financial year. We remain confident about our future.
http://www.investegate.co.uk/Article.aspx?id=201107110700070779K
Interim Management Statement Dechra Pharmaceuticals PLC ("Dechra" or the "Group"), publishes its Interim Management Statement covering the period from 1 January 2011 to the date of this announcement. Overall trading in the third quarter of the current financial year was in line with our expectations and remained consistent with the level seen in the first half of the financial year. Group revenue for the three months ended 31 March 2011 was 4.1% ahead of last year. For the nine months ended 31 March 2011, Group revenue increased by 4.0% over the corresponding period in the prior year. In the third quarter, our European products business revenue grew by 5.1% compared to the same period last year. For the nine months to 31 March 2011 revenue was ahead of the comparable period by 5.5%. Pharmaceuticals revenue was in line with expectations but diets revenue, whilst still outperforming the market, has experienced some softness. Revenue from US Pharmaceuticals was ahead of last year by 68.1% in the third quarter and by 36.4% for the nine months ended 31 March 2011. The third quarter growth includes the benefit of the DermaPet acquisition completed in October 2010. The Services division increased revenues in the third quarter by 2.6% whilst revenue for the nine months ended 31 March 2011 was 2.9% ahead of the equivalent period last year. Other than as noted above, there have been no material events or transactions between 1 January 2011 and the date of this announcement. Current trading remains in line with the Board's expectations and we remain confident that the Group will continue to make good strategic progress throughout the remainder of the financial year.
http://www.investegate.co.uk/Article.aspx?id=201105100700122337G
Following interim results, Brewin Dolphin maintained its "hold" recommendation for Dechra Pharmaceuticals (DPH) with an increased target price of 520p, up from 515p. Whilst Brewin believes underlying progress has been "admirable", it is cautious on the impact of both competitive pressures on the group and currency headwinds on revenues generated overseas (approximately 20%). That said, with little new news on the development pipeline to get excited about, the broker sees few catalysts in the short run. Shares in Dechra dipped 8p to 506p.
Panmure Gordon maintained its "hold" recommendation for Dechra Pharmaceuticals (DPH), the veterinary pharmaceutical business, with an increased target price from 510p to 525p. The broker thinks the firm should be a core holding for investors looking to introduce healthcare stocks into their portfolio, as it provides good growth and defensive characteristics. That said, Panmure believes the shares will be capped until better visibility of how well the firm is doing in the US is revealed.
..impressing the market: RNS Number : 8248U Dechra Pharmaceuticals PLC 22 October 2010 Issued by Citigate Dewe Rogerson, Birmingham Date: Friday, 22 October 2010 Dechra® enhances its US business through acquisition Dechra Pharmaceuticals PLC ("Dechra" or "the Group") is pleased to announce the acquisition of DermaPet Inc. ("DermaPet"). The maximum cash consideration for the acquisition is US$64 million; · US$42 million has been paid on completion; · Payments of US$1 million are due on the second and fourth anniversaries of the completion date; · US$15 million will become payable between the second and sixth anniversaries of completion if DermaPet achieves revenues in excess of US$15 million in any rolling 12-month period following the first anniversary of completion; · If revenues on the same criteria exceed US$20 million, a further US$5 million will become due. DermaPet, a Florida based business was established in 1991 by a leading veterinary dermatology referral specialist, Dr Steve Melman. DermaPet develops and markets a range of dermatological preparations, including shampoos, conditioners and ear products, for the US and overseas companion animal markets. These veterinary products are marketed and distributed through the same channels as Dechra's current US product portfolio. Dermatological problems are the most frequently diagnosed and treated conditions in companion animals by veterinarians. The range of innovative products, which have five granted patents and one pending, increases Dechra's US presence and complements its EU range in this key strategic therapeutic category. For the six months ended 30 June 2010, DermaPet's revenue was US$6.9 million and pre-tax income was US$3.0 million. Gross assets at 30 June 2010 were US$2.8 million. In the last full financial year ended 31 December 2009, DermaPet achieved revenue of US$10.7 million and pre-tax income of US$4.0 million. Gross assets at 31 December 2009 were US$2.4 million. Ian Page, Chief Executive of Dechra, commented: "This acquisition is expected to be materially earnings enhancing in its first full year of ownership. It also further strengthens our position as a leader in the worldwide veterinary dermatological market whilst significantly increasing our presence and scale of operation in the United States. The DermaPet brand and the high quality natural product line is a perfect fit with our existing dermatological range and accelerates Dechra's strategic objective of becoming a leading supplier of specialist veterinary exclusive products in this key market." The Group has also agreed a new £78 million four-year bank facility which will replace the Group's existing borrowing facilities and finance this acquisition. An analysts presentation will be held today (22 October) at 8.
Seems Dechra are weathering the recession well. Good solid company this, and with a good loyal customer base.
That's more or less the situation with LLOY at present, the RI is like a pair of ankle cuffs keeping things from moving quickly. Yes there is the issue of increased mortgage exposure via HBOS but with the recent better figures coming from housing the return the reflection in the share price should have been better. I do suspect though, especially in the states, that the figures have been "fiddled" somewhat. No coincidence the Mark to Market law was changed and various banks reporting profits for Q1. Technically both RBS and LLOY have a lot of heardroom to move up over the coming weeks but it's that old addage where a piece of news (from over the pond) will stop the rally in it's tracks.
Is there a vaccine for pigs ?
Topping up at this price....
Good steady rise today... onwards and upwards..
I understand the OFT came out in favour of National Veterinary Services. Loads of info in the web. The margins for this sector are so low, the OFT had to come out in favour. NVS is the only UK owned, out of three, suppliers of vets prescription pharmaceuticals. The other two are American owned, and dont have the experience of the UK market. DYOR, but this isnt going to fail you. A good steady stock to hold.
This share is going into my pot as a good long term stock. They have new products to hit the market, and the NVS part of the company is the market leader in vets distribution, and are producing good results.
NVS, which account for 70% of Dechra profits, are about to be investigated by the OFT (Office of Fair Trading). This appears to be as a result of complaints, from serveral other wholesalers and manufacturers, to the OFT. My understanding is that the OFT have looked at the aligations made my the others parties and have found that there is a case to be made, and a full investigation into NVS's trading practices is about to begin, if it has not already started. I still remember the nose drive the share price took when the last official government report into "price fixing" classed NVS as a monopoly. Are we going to see the same again? Anyone know what %-age of OFT investigations lead to fines and other forms of punishment? I think they can fine upto 10% of turnover!