Last checked at 21 Jan 2019 07:00
21 January 2019
Animalcare Group plc
(the "Group" or the "Company")
Trading Update & Notice of Results
21 January 2019 Animalcare Group plc (AIM: ANCR), the international animal health business, today provides the following unaudited trading update for the financial year ended 31 December 2018, the first full-year results since the merger of Animalcare and Ecuphar NV in July 2017. Preliminary results will be published on 30 April 2019.
Trading overview
Total revenue for the year ended 31 December 2018 increased by 3.6% (c.2.7% on a constant currency basis) to £84.2m (2017: £81.3m). Excluding the wholesale business which was sold on 4 September 2018, sales from our continuing Pharmaceuticals segment increased by 3.2% (2.5% on a constant currency basis) to £71.8m (2017: £69.5m).
Sales growth was affected by supply challenges relating to certain third-party manufacturers. Also, delays to some new product launches and lower demand in the large animal portfolio, particularly for antibiotics, impacted performance. This has been partially offset by the disciplined focus on our operating costs. As a result, the Board expects 2018 EBITDA for the continuing Pharmaceuticals segment to be approximately in line with the prior year. Net debt is expected to be around £24.0m (2017: £25.9m).
2019 focus and priorities
After joining the business as Chief Executive Officer on 1 October 2018, Jenny Winter, alongside the Group's newly established leadership team, has undertaken a review of Animalcare's strategy and business model, with the objective of establishing a strong and efficient platform, realigning the cost base relative to sales, in order to drive increased growth, profitability and cash generation. The focus during 2019 and beyond will be on five strategic priorities that will help to boost growth and profitability while increasing operational effectiveness and efficiency. These are:
· accelerating the integration process and realising the resulting benefits
· increasing commercial capabilities to drive organic growth
· driving supply chain efficiencies including associated working capital
· reviewing the portfolio to focus resources on profitable growth, enhanced through in-licensing and M&A
· strengthening leadership to focus on key priorities
We continue with our Brexit contingency preparations in order to maintain commercial supply of product to our customers.
The Company will provide further information on its growth strategy with preliminary results on 30 April 2019.
Animalcare's Chief Executive Officer, Jenny Winter, said:
"We are focused on implementing the strategic priorities and operational objectives to enable the Group to take advantage of opportunities in the animal health market. With a new and highly focused leadership team in place, I am confident we can drive the necessary changes to deliver profitable growth, improved cash generation and long-term value creation for our shareholders."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
For further information, please contact:
Animalcare Group plc | Tel: 01904 487 687 |
Jenny Winter, Chief Executive Officer |
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Chris Brewster, Chief Financial Officer
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Panmure Gordon (Nominated Adviser & Broker) | Tel: 020 7886 2500 |
Corporate Finance |
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Freddy Crossley / Emma Earl |
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Corporate Broking |
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James Stearns |
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Consilium Strategic Communications | animalcare@consilium-comms.com |
Amber Fennell/Angela Gray/Olivia Manser |
About Animalcare (www.animalcaregroup.co.uk)
Animalcare Group plc is a UK AIM listed veterinary sales, marketing and product development company resulting from the merger of Animalcare and Ecuphar NV in July 2017.
Animalcare operates in seven countries and exports to approximately 50 markets worldwide. The company is focused on bringing new and innovative products to market through its own development pipeline, partnerships and via acquisition.