Animalcare Grp Share News (ANCR)

Animalcare has completed the sale and closure of its livestock products businesses and it will focus on its pet treatments business from now on. In the year to June 2010, Animalcare's revenue increased 13% to £19.9m. Both sides of the business grew revenues but the growth in the livestock products side came from low margin electronic tags for sheep. All the growth in profit came from the companion animals business. Underlying pre-tax profit increased by 50% to £3.02m. That figure excludes the £3.58m of exceptional charges that mainly relate to the jettisoning of the non-core businesses. They also include a £212,000 pay off to the former chief executive. The livestock products business was sold for £3.25m in September - £2m was paid up front and the rest will be paid before the end of 2010. The Travik Chemicals business is being closed. The cash raised from the disposal will move the company into a net cash position. The dividend was raised from 2.5p a share to 3p a share. House broker Brewin Dolphin forecasts a profit of £3.1m in 2010-11, plus a net cash figure of £2.3m by the end of June 2011. The share price rose 17.5p to 117.5p.