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LONDON (Alliance News) - Animalcare Group PLC Wednesday raised its total dividend for the year to end-June as it saw profit rise, and expressed confidence for future growth.
The veterinary medicines company proposed a total dividend of 5.5 pence per share, up from 5.3 pence, and noted that it intends to maintain its policy of increasing its dividend in line with earnings during its investment phase.
Animalcare posted a pretax profit of GBP2.7 million, up from GBP2.3 million a year before, as revenue rose to GBP12.9 million from GBP12.1 million, and it posted slightly lower exceptional costs. In the previous year, the company posted exceptional costs of GBP381,000 relating to a compensation package for its outgoing chief executive, and the relocation of its head office.
Revenue growth was driven by its increased market share in licensed veterinary medicines, and continued growth in the animal identification market, Animalcare said. This offset lower revenue from its animal welfare products business, where it opted to rationalise some of its older uncompetitive and less profitable products.
Animalcare said its current trading is in line with management expectations. It plans to continue investment in its growth and development, and whilst in the short term this will lead to higher research and development costs, it expects to benefit from sales and marketing investments it made in the second half of 2013.
"Our investment in infrastructure and people, as well as our pipeline of enhanced generic products, provides a strong platform for a business that is already debt free and cash generative, and hence is well positioned for future growth," said Chief Executive Officer Iain Menneer in a statement.
Shares in Animalcare are trading flat at 136.00 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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