Last checked at 11 Jul 2014 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 2014, in advance of releasing its results on Wednesday 15th October 2014.
Trading Update
The Board is very pleased with trading in the year. Revenues across the Group are up by 6.3% to approximately £12.9m (2013: £12.1m), ahead of market expectations.
Sales of the Licensed Veterinary Medicines product group were up by 10% versus the prior period and broadly in line with the growth seen in the wider UK licensed veterinary companion animal medicines market. The Companion Animal Identification product group has made further progress following positive results at the half-year with sales up over 8% on last year due to strong contributions from both microchip sales and database services.
The planned rationalisation of older, lower margin Animal Welfare products has focused the range, with revenues reducing by 4% but with gross profit growing by 8%.
Overall underlying operating profit is in line with market expectations and at least £2.6m for the full year. Operating cash flows reflect the planned higher inventory levels of certain commercially important products. The year end cash position remains robust at £3.8m (31st December 2013: £3.6m; 30th June 2013: £3.7m) and, alongside positive trading, gives the Board the confidence to maintain the dividend flow during the current investment cycle.
Summary and Outlook
The Board is very pleased to report the strong progress of the business versus the prior period. Revenues from key product groups, Licensed Veterinary Medicines and Companion Animal Identification, have grown well.
The engagement of veterinary practices and the dog-owning public in compulsory microchipping has been more measured than expected by the wider industry. However, a promotion through the calendar year to celebrate the 25th anniversary of the introduction of Animalcare's Identichip, the first microchip in the UK, has been very successful so far.
Emphasis on the structure and development of the sales function will further drive the business in the coming period and beyond.
The Board is committed to significant investment in product development which will be financed from cash generated by the business. Animalcare has recruited further staff to strengthen the product development team working on enhanced generic medicine projects. The Board believes that this investment will be key to generating continued growth in the business and further enhancing shareholder value.
The Board believes that the underlying business will continue to deliver growth whilst maintaining the dividend flow during the coming period of increased investment.
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) | |
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 |
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 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.