Last checked at 9 Jul 2015 07:00
Animalcare Group plc
("Animalcare" or the "Group")
Trading Update & Notice of Results
Animalcare, a leading supplier of veterinary medicines, provides the following trading update for the year ended 30th June 2015, in advance of releasing its preliminary results on Wednesday 14th October 2015.
Trading Update
The Board is pleased to report a solid trading performance for the year ended 30th June 2015. Revenues across the Group were up by 5.1% to £13.54m (2014: £12.88m) and underlying operating profits are at least in line with market expectations.
Revenue from sales of the Licensed Veterinary Medicines group was up 8.8% to £8.58m (2014: £7.88m) which includes encouraging sales of recently launched new products.
The Companion Animal Identification group revenues fell by 4.5% to £2.31m (2014: £2.42m), largely due to phasing of export equine chip sales where a substantial annual order was placed very late in the prior year. Whilst UK sales volumes were slightly up, net revenues were held back as a result of a national charity's free microchipping campaign. Sales from the database services continued to rise in the year.
Sales from the Animal Welfare Products group rose by 2.6% to £2.65m (2014: £2.58m) with further improvement in gross profitability following the rationalisation of lower margin products in the prior year.
Overall underlying operating profit for the full year are at least £3.0m. The year-end cash position was £5.78m (30th June 2014: £3.81m). Continuing from the half year position, operating cash flows have been strong driven in particular by managed reduction in stock levels. Planned investment in our product pipeline in the year increased significantly on the prior year. Investment in the product development pipeline over the last two years is bearing fruit; three projects have reached important milestones in the second half and were submitted for regulatory approval.
Summary and Outlook
During the full year Animalcare launched five new products in the UK & Ireland, all on distribution. Pet Remedy was launched in the first half with sales above management expectations. Synthadon and Anaestamine were launched mid-way through the second half; both complement our increasing anaesthetics and analgesic ranges and are already selling strongly. Towards the end of the half Clavubactin and Fungiconazole were launched; the former is an antibacterial and the latter an antifungal medicine.
There is little evidence that dog owners are responding to the imminent compulsory chipping of dogs in England, Wales and Scotland (April 2016). However Animalcare has plans to grow microchip sales in the run up to this legislation and importantly the longer term.
The product development pipeline is progressing well with a further significant rise in capital expenditure forecast for the new financial year building on the increase in this reporting period.
Following the solid trading performance in the year, particularly from the Licensed Veterinary Medicines group, the Board remains confident about the prospects for the new financial year and is encouraged by the gaining momentum in the product development pipeline.
For further information, please contact:
Animalcare Group plc | Tel: 01904 487 687 | |
Iain Menneer, Chief Executive Officer | ||
Chris Brewster, Chief Financial Officer | ||
Panmure Gordon (Nominated Adviser and Broker) | ||
Freddy Crossley/Peter Steel | Tel: 020 7886 2500 | |
Walbrook PR Ltd | Tel: 020 7933 8780 or animalcare@walbrookpr.com | |
Paul McManus | Mob: 07980 541 893 | |
Lianne Cawthorne | Mob: 07584 391 303 | |
Notes to editors
Animalcare is a leading veterinary sales and marketing company based in York with 57 employees including a field sales force of 14 representatives selling to all veterinary practices around the United Kingdom.
Animalcare has developed a range of generic veterinary medicines and animal identification products primarily to companion animal veterinary markets.
Animalcare operates in three product areas:
· Licensed Veterinary Medicines - a range of branded veterinary licensed pharmaceuticals sold to veterinary professionals in the UK and selected markets in Northern Europe. The range can be divided into four main categories; anaesthetics & analgesics, Aqupharm intravenous fluids, antibacterials and vitamins & speciality pharmaceuticals.
· Companion Animal Identification - Identichip is the pioneering microchip identification system in the UK. Animalcare also owns and operates the Anibase database; together the market leader in electronic identification for pets in the UK.
· Animal Welfare Products - a range used by veterinary professionals in the diagnosis and care of their patients, for example intravenous infusion accessories, ophthalmic instruments, hygiene solutions and bandages and dressings.