Last checked at 25 Jan 2022 07:00
ANIMALCARE GROUP PLC
(the "Company" or the "Group")
Trading update and Notice of 2021 Full Year Results
25 January 2022. Animalcare Group plc (AIM: ANCR), the international animal health business, provides the following unaudited trading update for the 12 months ended 31 December 2021. Full year results are due to be published on 29 March 2022.
Highlights
· Strong full year trading performance driven by increased Companion Animals demand and growth from new products
· Revenue of around £74.0 million (2020: £70.5 million) in line with market expectations, representing a c5% increase on prior year (c8% at constant currency)
· Earnings anticipated to be in line with previously upgraded market expectations
· Continuing strong cash conversion enables significant reduction in the net debt position to approximately £5.3 million
Trading overview
Revenues grew to around £74.0 million, up approximately 5% on the prior year (around 8% at constant currency). As anticipated, revenue growth was weighted towards the first half as a result of exceptional veterinary demand in Q1 and markets returning to more normal levels through the course of the financial year. Companion Animals recorded a double-digit sales increase reflecting positive market fundamentals such as increased pet ownership and the easing of COVID-19 counter measures compared to 2020. Revenues also benefited from growth in new products including Daxocox which was successfully launched as a treatment for osteoarthritis-related pain in dogs in 2021.
Earnings are anticipated to be in line with market expectations which were upgraded in September 2021. The Group expects that the rate of growth of underlying EBITDA will be ahead of revenue. This is largely as a result of a higher margin sales mix, while absorbing increased SG&A costs related to organisational drivers of growth.
Very strong cash conversion drove further balance sheet improvement with net debt reduced to approximately £5.3 million at year end. Leverage is now comfortably below the Group's stated target range of 1-2 times underlying EBITDA, providing the flexibility and firepower to continue pursuit of pipeline and business development opportunities that support the long-term growth strategy.
Jenny Winter, Chief Executive Officer commented: "The continuing evolution of our product portfolio and the successful launch of Daxocox were important contributors to the Group's very positive trading performance in 2021. Looking to the future, the further strengthening of our balance sheet provides us with increased capacity to invest in our long-term growth strategy. The entire Animalcare team deserves huge credit for their focus, hard work and agility in this fast-changing and dynamic market."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
Animalcare Group plc Jenny Winter, Chief Executive Officer Chris Brewster, Chief Financial Officer Media/investor relations
| +44 (0)1904 487 687
communications@animalcaregroup.com
|
Stifel Nicolaus Europe Limited(Nominated Adviser & Joint Broker) Ben Maddison Fred Walsh Nick Adams
| +44 (0)20 7710 7600 |
Panmure Gordon (Joint Broker) Corporate Finance Freddy Crossley/Emma Earl Corporate Broking Rupert Dearden
| +44 (0)20 7886 2500 |
About Animalcare
Animalcare Group plc is a UK AIM-listed international veterinary sales and marketing organisation. Animalcare operates in seven countries and exports to approximately 40 countries in Europe and worldwide. The Group is focused on bringing new and innovative products to market through its own development pipeline, partnerships and via acquisition.
For more information about Animalcare, please visit www.animalcaregroup.com or contact: