Animalcare Grp Regulatory News (ANCR)

31 Mar 2008 07:01

Animalcare Group PLC31 March 2008 ANIMALCARE GROUP PLC ("Animalcare" or "the Company") Unaudited Interim Results for the six months ended 31 December 2007 Animcalcare, the supplier of pharmaceutical and other premium products andservices to the veterinary industry and the manufacturer and supplier of premiumquality livestock products to agricultural retailers to announces its interimresults for the six months ended 31 December 2007. CHAIRMAN'S STATEMENT The unaudited results for Animalcare Group plc for the six months to 31 December2007, the period prior to the acquisition of Animalcare Ltd., when the Companywas trading as Ritchey plc ("Ritchey"), show group turnover of £3,406,000 (2006- £3,684,000) and EBITDA (earnings before interest, taxation, depreciation andamortisation) of £122,000 (2006 - £287,000). As a result of the fall in groupturnover, there was a small pre-tax loss for the period. The Company is not declaring an interim dividend. On 15 January 2008 we announced the acquisition of Animalcare Ltd, thesuccessful placing of new shares with institutional investors to raise £6.4million net of expenses and the commencement of trading on AIM under our newname of Animalcare Group plc. I am pleased to report that the integration ofAnimalcare Ltd, which has transformed the profitability and growth prospects ofthe group, is proceeding smoothly and that trading at Animalcare Ltd is also inline with management expectations. Trading, in what is traditionally the Company's slower half of the year, hasbeen challenging due to the damage suffered by the livestock industry, arisingfrom the disruption to livestock movements following the Foot and Mouth andBluetongue outbreaks. The restriction on livestock movements resulted in asubstantial reduction in livestock trading volumes and much lower sellingprices, particularly in the sheep industry. Furthermore, the business isseasonal with the second half of the year traditionally yielding the majority ofprofitability, largely due to the lambing season which runs from January toApril. A trading arrangement with a major supplier was changed during the period, withthe effect that sales which were previously invoiced by Ritchey, have beeninvoiced directly by the supplier, with Ritchey receiving a commission. This hasresulted in a reduction in sales of £100,000 during this period and we estimatethat the effect across the full financial year will be a reduction in sales of£420,000. The increase in Gross Profit margin during this period from 57.4% to59.6% is almost entirely due to the removal of the dilutive effect on grossmargin of these sales. For the six months to 31 December 2007 the Company's profits were almostneutral, making a small loss after taxation of £5,000 versus a small profit of£110,000 during the same period in 2006. Net cash outflow from operatingactivities across the period was -£133,000 (2006 - cash inflow of £275,000);this broadly reflects the different trading performances in the two periods andthe movements in working capital. Despite this the Company retained a net cashbalance of £230,000 at the end of the period. The livestock industry has shown encouraging signs of improvement across recentmonths behind increased trading volumes and higher livestock selling prices.However the trading environment remains highly challenging with significantreductions in livestock numbers anticipated. I am, however, pleased to reportthat trading in the second half of the year is showing signs of improvement andthat the outlook for the balance of the year appears favourable and in line withmarket expectations. Overall, we are confident that the integration of Animalcare Ltd will becompleted during 2008 and that we will make good progress in establishing aplatform for future, profitable growth. J.S. Lambert Chairman For further information:Animalcare plcJames Lambert (Chairman) 01765 689541Simon Riddell (Chief Executive) Brewin Dolphin (NOMAD) 0845 270 8610Neil Baldwin Bankside Consultants (Financial PR) 020 7367 8888Simon Bloomfield or Andy Harris CONDENSED CONSOLIDATED INCOME STATEMENT Six months ended 31 December 2007 Condensed consolidated income statement Note 6 month 6 month 12 month period ended period ended period ended 31 December 31 December 30 June 2007 2006 2007 Unaudited Unaudited Audited £'000 £'000 £'000 Revenue 3,406 3,684 8,286 Cost of sales (1,376) (1,571) (3,504) ----------------------------------- Gross profit 2,030 2,113 4,782 Distribution costs (164) (173) (362)Administrative expenses (1,870) (1,781) (4,101) ----------------------------------- Operating (loss)/profit (4) 159 319 Investment income 12 9 15Finance costs (15) (25) (32) ----------------------------------- (LOSS)/PROFIT BEFORE TAX (7) 143 302 Tax 3 2 (33) (52) ----------------------------------- (LOSS)/PROFIT FOR THE YEAR (5) 110 250 =================================== Basic (loss)/earnings per share 4 (0.1)p 1.9p 4.4pDiluted (loss)/earnings per share 4 (0.1)p 1.9p 4.4p The profit and loss account has been prepared on the basis that all operationsare continuing operations. CONDENSED CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE Six months ended 31 December 2007 Condensed consolidated statement 6 month period 6 month period 12 monthof recognised income and expenses ended ended period ended 31 December 31 December 30 June 2007 2006 2007 Unaudited Unaudited Audited £'000 £'000 £'000 (Loss)/profit for the financial year (5) 110 250 ---------------------------------Total recognised income and expense (5) 110 250 ================================= CONDENSED CONSOLIDATED BALANCE SHEET 31 December 2007 Condensed consolidated balance sheet 31 December 31 December 30 June 2007 2006 2007 Unaudited Unaudited Audited £'000 £'000 £'000NON-CURRENT ASSETSGoodwill 2,677 2,916 2,677Other intangible assets 94 140 115Property, plant and equipment 1,670 1,548 1,670 ---------------------------------- 4,441 4,604 4,462CURRENT ASSETSInventories 1,352 1,237 1,118Trade and other receivables 1,200 1,449 1,400Cash and cash equivalents 377 99 562 ---------------------------------- 2,929 2,785 3,080 ------------------------------------ TOTAL ASSETS 7,370 7,389 7,542 =================================== CURRENT LIABILITIESTrade and other payables (709) (891) (915)Current tax liabilities (31) (98) (33)Obligations under financeleases - (5) -Bank overdraft and loans (147) (23) (60)Deferred consideration (65) (110) (111) --------------------------------- CURRENT LIABILITIES (952) (1,127) (1,119) ---------------------------------- NET CURRENT ASSETS 1,977 1,658 1,961 ---------------------------------- NON-CURRENT LIABILITIESDeferred consideration (34) (66) (34)Deferred tax liabilities (252) (232) (252) ----------------------------------- (286) (298) (286) ----------------------------------- TOTAL LIABILITIES (1,238) (1,425) (1,405) ------------------------------------ NET ASSETS 6,132 5,964 6,137 ==================================== CAPITAL AND RESERVESCalled up share capital 1,132 1,132 1,132Share premium account 943 943 943Profit and loss account 4,057 3,889 4,062 ----------------------------------- EQUITY ATTRIBUTABLE TO EQUITYHOLDERS OF THE PARENT 6,132 5,964 6,137 ==================================== CONDENSED CONSOLIDATED CASH FLOW STATEMENT Six months ended 31 December 2007 Condensed consolidated cashflow 6 month period 6 month period 12 monthstatement ended ended period ended 31 December 31 December 30 June 2007 2006 2007 Unaudited Unaudited Audited £'000 £'000 £'000 Operating (loss)/profit (4) 159 319 Adjustments for: Depreciation of property, plant andequipment and amortisation of intangible fixed assets 126 128 257 Impairment of goodwill - - 237Share based payment award - - 33Loss on disposal of property, plant and equipment - - 21 ---------------------------------- Operating cash flows before movements in working capital 122 287 867Increase in inventories (234) (280) (161)Decrease in receivables 200 349 390Decrease in payables (206) (56) (32) ----------------------------------- Cash (utilised)/generatedby operations (118) 300 1,064Income taxes paid - - (57)Interest paid (15) (25) (22) ---------------------------------- Net cash from operating activities (133) 275 985 ---------------------------------- Investing activities:Interest received 12 9 15Payments to acquire property, plant andequipment (105) (78) (325)Receipts from sale of property, plant andequipment - 2 4Acquisition of Marabo Limited's trade - - (40)Acquisition of Travik Chemicals Limited (46) (75) (75)Receipts from issue of ordinary sharecapital - 88 88 ---------------------------------- Net cash used in investing activities (139) (54) (333) ---------------------------------- Financing:Equity dividends paid - (102) (102)Repayment of bank loan - (214) (214)Capital element of finance leaserepayments - - (5) --------------------------------- Net cash outflow used in financingactivities - (316) (321) --------------------------------- Net (decrease)/increase in cash and cashequivalents (272) (95) 331Cash and cash equivalents at startof period 502 171 171 --------------------------------- Cash and cash equivalents at end ofperiod 230 76 502 =================================== Comprising:Cash and cash equivalents 377 99 562Bank overdrafts (147) (23) (60) ----------------------------------- 230 76 502 ================================== CONDENSED NOTES TO THE FINANCIAL STATEMENTS 31 December 2007 1. BASIS OF PREPARATION The unaudited financial information contained in this interim report has beenprepared using accounting policies consistent with International FinancialReporting Standards (IFRS). These condensed consolidated accounts do not includeall of the information required for full annual financial statements. The interim report does not constitute statutory accounts as defined in section240 of the Companies Act 1985. The information contained herein has not beenreviewed by the company's auditors, nor has it been delivered to the Registrarof Companies. The financial information for the year ended 30 June 2007 has been derived fromthe audited financial statements of Animalcare Group plc (formerly Ritchey PLC)as delivered to the Registrar of Companies and as restated in accordance withIFRS as described in note 5. The report of the auditors on those statutoryaccounts was unqualified and did not contain a statement under Section 237(2) or(3) of the Companies Act 1985. 2. SIGNIFICANT ACCOUNTING POLICIES The financial information contained in this Interim Report has been preparedunder the historical cost convention. The accounting policies are consistent with those followed in the preparation ofthe AIM admission document which has been published on the Group's website at:http://www.animalcaregroup.co.uk/corporate-documents-and-shareholders-communications/default.aspx except asdescribed in note 3. In addition, the following standards which have not been applied in thesefinancial statements were in issue but not yet effective: IFRS 8 Operating segments IAS 23 Amendment to borrowing costs IFRIC 11 IFRS 2: Group and treasury share transactions IFRIC 12 Service concession arrangements The Group anticipates that the adoption of these standards in future periodswill have no material impact on the financial statements of the Group. 3. TAX ON PROFIT ON ORDINARY ACTIVITIES The charge for taxation is based on an estimate of the likely effective tax ratefor the full year. 4. EARNINGS PER SHARE Basic earnings per share amounts are calculated by dividing net profit for theyear attributable to ordinary equity holders of the parent by the weightedaverage number of ordinary shares outstanding during the year. Diluted earnings per share amounts are calculated by dividing the net profitattributable to ordinary equity holders of the parent by the weighted averagenumber of ordinary shares outstanding during the year plus the weighted averagenumber of ordinary shares that would be issued on the conversion of all thedilutive potential ordinary shares into ordinary shares. The following table reflects the income and share data used in the basic anddiluted earnings per share computations. No diluted loss per share has beencalculated for the 6 month period ended 31 December 2007 as the share optionsare anti-dilutive: 4. EARNINGS PER SHARE (continued) 6 month period 6 month period 12 month ended ended period ended 31 December 31 December 30 June 2007 2006 2007 Unaudited Unaudited Audited £'000 £'000 £'000Net (loss)/profit attributable toequity holders of the parent (5) 110 250 ================================== 6 month period 6 month period 12 month ended ended period ended 31 December 31 December 30 June 2007 2006 2007 Unaudited Unaudited Audited No. No. No. Basic weighted average number ofshares 5,660,257 5,593,953 5,626,628Dilutive potential ordinaryshares:Employee share options - 38,590 64,242 ------------------------------------- Diluted weighted average number ofshares 5,660,257 5,632,543 5,690,870 ======================================== 5. FIRST TIME ADOPTION OF IFRS The last statutory financial statements presented under UK GAAP were for theyear ended 30 June 2007. The Group first presented its consolidated financial statements underInternational Financial Reporting Standards (IFRS) in its AIM admission documentwhich has been published on the Group's website at http://www.animalcaregroup.co.uk/corporate-documents-and-shareholders-communications/default.aspx. These consolidated financial statements were for the year ended 30June 2007 and the date of the Group's transition to IFRS was 1 July 2004. Thedisclosures required in the period of transition are therefore contained withinthe AIM admission document. 6. EVENTS OCCURING SUBSEQUENT TO THE YEAR END On 15 January 2008 the company acquired 100% of the issued share capital ofAnimalcare Limited and the company commenced trading on AIM with its new nameAnimalcare Group plc. ENDS This information is provided by RNS The company news service from the London Stock Exchange