Last checked at 15 Jan 2014 07:00
Animalcare Group plc
("Animalcare" or the "Group")
Trading Update & Notice of Results
Animalcare, a leading supplier of veterinary medicines, is pleased to issue the following trading update for the six months ended 31st December 2013, in advance of releasing its interim results on Wednesday 26th February 2014.
Trading update
Trading in the first six months has been in line with management expectations with revenues for the first half of the year increased by 5.9% to approximately £6.5m (2012: £6.1m).
The UK licensed veterinary medicines market has shown single digit growth in recent months and Animalcare management is pleased to announce that sales in its Licensed Veterinary Medicines product group continue to track comfortably ahead of the wider market.
Furthermore, the Companion Animal Identification product group revenue has increased over the period, both from microchip sales and database services.
Previously announced rationalisation of older undifferentiated, lower margin Animal Welfare products has resulted in a reduction in revenue for this product group, but has achieved improved gross profit versus the prior period.
Operating cash flows were in line with management expectations and reflect the higher working capital carried by the business at 31st December 2013 as previously referred to in the 2013 Annual Report. Cash balances at 31st December 2013 were £3.6m compared to £3.7m at 30th June 2013 and £3.0m at 31st December 2012.
Summary and Outlook
Recently launched products from our pipeline of licensed veterinary medicines have continued to drive sales growth underpinned by a robust core of longstanding products. Three new products have been launched on schedule in H1.
In Q1 we launched an enhanced presentation of Phenoleptil, that was originally launched in 2011, a product used in the prevention of epileptic seizures in dogs. The enhanced presentation complements the existing product, further improving dosage flexibility and accuracy.
In Q2 we launched Marbocare and Thiafeline tablets. Marbocare is an antibiotic for dogs and cats to treat skin, respiratory and urinary tract infections. It is the result of a successful co-development project with one of our European partners. The divisible tablets offer improved accuracy of dosing. Thiafeline is licensed for the management of hyperthyroidism in cats; hyperthyroidism is a common condition believed to affect 12% of the 2.9 million cats over the age of nine years in the UK, an estimated 350,000 cats.
Our focus on the Companion Animal Identification group has delivered a return to revenue growth and leaves Animalcare well placed to benefit from the compulsory microchipping legislation that is planned for England and Wales.
The Board is committed to its strategy to invest in enhanced generic medicines that will deliver growth and protectable revenue in the medium to long-term. To ensure the Group exploits the available development opportunities, further recruitment is in progress to support the senior management changes announced in the 2013 Annual Report.
We expect Animalcare's strong cash position to fund the significant new product development investment identified in the strategic plan.
The Board is pleased with the solid first half performance and remains confident about the prospects and outcome for the full year.
For further information, please contact:
Animalcare Group plc | Tel: 01904 487 427 |
Iain Menneer, Chief Executive Officer | |
Chris Brewster, Chief Financial Officer | |
Panmure Gordon (Nominated Adviser and Broker) | |
Nicola Marrin | Tel: 0207 886 2500 |
Joanne Lake/Peter Steel | Tel: 0113 357 1150 |
Walbrook PR Ltd | Tel: 020 7933 8780 or animalcare@walbrookpr.com |
Paul McManus | Mob: 07980 541 893 |
Helen Cresswell | Mob: 07841 917 679 |
Notes to editors
Animalcare is a leading veterinary sales and marketing company based in York with 55 employees including a field sales force of 15 representatives selling to all veterinary practices around the United Kingdom.
Animalcare has developed a range ofgeneric 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; antibacterials, anaesthetics and analgesics, Aqupharm intravenous fluids 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.