DPH.L Share News (DPH)

(Sharecast News) - Joanne Hart at the Mail on Sunday pointed out that with more people than ever owning pets, consumers were looking to spend more on the furry friends, benefiting companies like Dechra Pharmaceuticals, which makes and sells drugs for animals.
In her Midas Share Tips column, Hart acknowledged that after Dechra's annual results, released earlier in the month, showed a 17.5% increase in revenues to £482m, a 27% rise in underlying profits to £127m and a 24% hike in its dividend to 31.6p, but she added that long-standing CEO Ian Page had plenty of reason to remain optimistic regarding the group's future.

While other firms have struggled under the threat of a no-deal Brexit, Hart said the group's resilience largely comes from its "simple but effective strategy" - listening to what vets need and creating products that satisfy those needs, particularly in specialist areas.

Hart expects further growth to likely come from more geographic expansion and well-chosen acquisitions, as Page has bought several businesses over the years and successfully integrated them into Dechra.

All in all, Hart said: "Dechra has come a long way since chief executive Ian Page took the helm in 2001, enjoying 17 years of consistent, double-digit earnings growth.

Hart admitted that investors who bought in 2008 - and later in 2015 - had "done well" and "may choose to bank some profits" but she said most analysts believe the stock could hit £33 in the next year or two and wanted that shareholders should retain most of their stock.