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LONDON (Alliance News) - Animalcare Group PLC Tuesday stepped up its interim dividend as it posted a rise in pretax profit for its first half, and said it remains on target to perform in line with its expectations for the full year.
The veterinary medicines firm proposed an interim dividend of 1.8 pence, up from 1.5 pence the year before.
The company posted pretax profit of GBP1.8 million for the half year to end-December, compared to GBP1.4 million a year before, as revenue rose to GBP6.9 million from GBP6.5 million.
Its Licensed Veterinary Medicines arm's revenue rose 10.6%, boosted by a one-off gain from its Buprecare product for post-operative analgesia and sedation, due to supply issues experience by one of its competitors, which helped offset lower sales from some of its lower-margin pharmaceuticals.
In its Companion Animal Identification arm, revenue rose 5.0%. "The commercial and political opportunities and threats that the compulsory chipping of dogs in 2016 will bring to Animalcare are much clearer now, and I believe there should be modest benefits to us," Chairman James Lambert said in a statement.
Compulsory chipping in Wales has been delayed from March, and may now coincide with England in April 2016.
The company expects to launch three new pharmaceutical products in its second half.
Animalcare is continuing to focus on investing its product development pipeline, with expenditure expected to be weighted towards its second half as it expands its business development team.
"The board is committed to its strategy to invest in enhanced generic medicines that will deliver growth and protectable revenue to the medium to long-term," Lambert said.
Shares in Animalcare are trading up 3.2% at 190.95 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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