Last checked at 26 Jul 2017 07:00
Animalcare Group plc
(the "Group" or the "Company")
Trading update & Notice of Interim Results
Animalcare Group plc (AIM: ANCR), a leading supplier of veterinary medicines, provides a trading update for the six month period ended 30th June 2017 ahead of publishing its second half unaudited interim results on 26th September 2017. This follows the Group's change of accounting reference date to 31st December further to the successful acquisition of Ecuphar NV ("Ecuphar") completed on 13th July 2017.
Following a very strong first half-year for the Group, the Board is pleased to announce that trading for the 12 months ended 30th June 2017 is in line with current market expectations.
Pre-Merger Trading Update
Total sales for the 12 months ended 30th June 2017 were up 8% at £15.87m (2016: £14.70m) and underlying operating profits are expected to increase by 11.8% to £3.57m (2016: £3.19m), in line with market expectations.
Following the change of accounting reference date, trading during the six month period to the 30th June 2017 has been in line with the Board's expectations in both sales and profit terms, which saw revenue growth of 4.1% versus the same period last year to £7.90m (2016: £7.59m).
The Licensed Veterinary Medicines group continued to grow strongly in the second half with revenues increasing 17.2% to £5.46m (2016: £4.66m), principally driven by growth of export sales of over 70.0%. Sales from new products launched in the last twelve months contributed around £0.20m. Gross margins remain favourable versus the prior period.
Sales from the Animal Welfare Products group declined by 3.2% to £1.42m (2016: £1.47m) due to a reduction in sales of our hygiene range, however the Infusion Accessories range was up by 7.5% as it continued to experience solid growth.
Companion Animal Identification group revenues fell by £0.44m to £1.02m (2016: £1.46m), primarily as a result of the £0.3m incremental sales benefit observed in the prior period following implementation of compulsory microchipping for dogs in the UK in April 2016 and the expected reduction in sales volume as a result of the lower addressable dog microchipping market. Changes to our business model implemented late in the period have shown good early results in growing microchip database services revenue.
Period end cash balances were approximately £6.3m (31st December 2016: £7.0m; 30th June 2016: £7.1m). As expected, we have made a significant investment during the second half in our product development pipeline, totalling approximately over £1.4m. As anticipated, this brings the total investment for the 12 months ended 30th June 2017 to almost £2.0m.
Summary and Outlook
Investment in our product development pipeline has continued on track, in particular with regard to the identification of novel formulations which, as previously stated, are a strategic focus for the Group.
The Company announced the acquisition of Ecuphar of Belgium on 23rd June 2017 which was approved by shareholders on 12th July, with the enlarged Group admitted to AIM on 13th July 2017.
The announcement of the Group's second half unaudited interim results for the 12 months ended 30th June 2017 is expected on 26th September 2017 and will also include summary interim financial information for Ecuphar for the six months ended 30th June 2017.
For further information, please contact:
Animalcare Group plc | Tel: 01904 487 687 | |
Chris Cardon, Chief Executive Officer |
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Walter Beyers, Chief Financial Officer |
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Iain Menneer, Chief Operating Officer |
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Panmure Gordon (Nominated Adviser & Broker) | Tel: 020 7886 2500 | |
Corporate Finance |
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Freddy Crossley / Peter Steel / Duncan Monteith |
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Corporate Broking |
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James Stearns |
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Walbrook PR Ltd | Tel: 020 7933 8780 or animalcare@walbrookpr.com | |
Paul McManus | Mob: 07980 541 893 | |
Lianne Cawthorne | Mob: 07584 391 303 | |
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.
Post-merger Animalcare is a pan-European animal health company, with a large geographic footprint. The Company now has direct sales in seven countries (UK, Belgium, Netherlands, Spain, Portugal, Italy and Germany) and exports to approximately 50 markets worldwide.
The Company now has nearly 100 sales representatives and 28 agents operating across Europe and owns 50 licensed drugs, eight vaccines and over 100 care and nutraceutical products.
Animalcare invests in developing its own pharmaceutical products, seeks distribution partnerships and product acquisitions.
For more information see Animalcare Ltd (www.animalcare.co.uk) and Ecuphar NV (www.ecuphar.com).