Animalcare reports improved full-year revenue, earnings

(Sharecast News) - Animalcare reported a rise in full-year revenue and underlying earnings on Wednesday, supported by the contribution from Randlab, growth in flagship brands and progress in its product pipeline.

The AIM-traded animal health business said revenue increased 20.0% to £89.1m in the year ended 31 December, from £74.2m in 2024.

It said the performance reflected a significant contribution from Randlab, alongside like-for-like organic growth of 1.7%, or 0.7% at constant exchange rates, with revenue growth across all three product categories.

Underlying EBITDA rose 52.6% to £17.7m from £11.6m, while underlying EBITDA margin before research and development expenditure improved by 500 basis points to 20.6%.

Underlying profit after tax from continuing operations increased to £10.9m from £6.7m.

Reported profit after tax fell to £5.1m from £18.5m, with the prior year benefiting from gains on the disposal of Identicare and STEM.

Underlying continuing basic earnings per share rose 44.0% to 15.7p, while reported basic earnings per share fell to 7.3p from 30.3p.

Cash conversion was 79.7%, in line with guidance of about 80.0%, compared with 103.1% in 2024.

Net debt excluding lease liabilities was £9.1m at the year end, compared with £9.0m a year earlier, representing leverage of 0.7 times underlying EBITDA.

Following the announcement on 16 April of a recommended acquisition of Animalcare by CCP Paw 2, an indirect subsidiary of funds managed by Charterhouse Capital Partners, the board proposed no final dividend for 2025.

Chief executive Jenny Winter said 2025 had been "a year of strategic execution and financial delivery".

"Our flagship brands experienced good momentum, supported by new product launches and commercial excellence and we strengthened our international footprint and team through the acquisition of Randlab and strategic investment in InVetro," she said.

Animalcare said its flagship brands continued to deliver strong double-digit growth, supported by new indications.

Daxocox grew 23%, while its dental range recorded growth of 42% for Plaqtiv+ and 30% for Orozyme.

The group expanded the Daxocox range during the year, including the launch of a new peri-operative pain indication in Europe, while approval was granted in Japan.

Randlab, which expanded Animalcare's presence in the Asia-Pacific region, delivered like-for-like organic growth of about 12.0% at constant exchange rates and was successfully integrated.

Animalcare also made a 25% strategic equity investment in InVetro, an Australian companion animal business.

Research and development investment increased to 4.5% of revenue from 2.8% in 2024, reflecting accelerated activity across the new product pipeline.

The group acquired the VHH NGF antibody programme and related assets, supporting expansion of its pain portfolio, and added a novel biological treatment for equine sweet itch through a licence agreement with 272Bio.

Animalcare said its pipeline delivery capability was strengthened by the appointment of Dr Hafid Benchaoui as chief strategy and science officer in November.

The group said trading since the period end had continued in line with management expectations.

At 1424 BST, shares in Animalcare Group were down 0.18% at 331.9p.

Reporting by Josh White for Sharecast.com.

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