ECO Animal Health thrives on higher-margin approach

AIM-listed veterinary drug specialist ECO Animal Health enjoyed a strong first six months of the year, traditionally its weaker period. A robust drug pipeline and a strong start to the second half leaves company management optimistic about full year results. For the half-year to September 30th earnings before interest, tax, depreciation and amortisation rose 45% to £2.97m on revenues up 34% to £15.3m.The impact of the group's new focus on higher-margin business is being reflected positively in the financial performance as it progressively switches away from large volume sales of lower margin generic drugs to concentrate on more profitable lines. Executive Chairman Peter Lawrence said: "The second half of the year, which traditionally provides the majority of the contribution to our full year results, has started well. "The recent granting of important new approvals has further strengthened the company's growth prospects and this will be boosted again when additional important marketing authorisations, currently still with the regulatory authorities, are granted."Shares in ECO Animal Health were up 4% 208.5p at 15:30 on Tuesday.OH