Last checked at 14 Jan 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 six months ended 31st December 2014, in advance of releasing its interim results on Tuesday 24th February 2015.
Trading Update
The Board is pleased to report a solid trading performance for the period ended 31st December 2014. Revenues across the Group were up by approximately 7.2% to £6.93m (2013: £6.46m).
Revenue from sales of Licensed Veterinary Medicines was up 10.6% to £4.40m (2013: £3.98m). This increase includes planned organic growth and a non-recurring benefit from sales of Buprecare as a result of supply problems of a competitor product balanced by lower than expected sales of some older, lower margin pharmaceuticals.
Sales in the Companion Animal Identification group continued to perform well, increasing by 5.0% to £1.26m (2013: £1.20m) versus prior period. Microchip revenues were up in the period and other products and services in this group also performed well following further marketing investment in this area.
Revenues from the Animal Welfare group fell by 1.2% to £1.27m (2013: £1.29m) but, as observed in the previous financial year, with a moderate increase in gross profitability following the rationalisation of the less profitable products.
Operating cash flows have benefited from the planned reduction in stock levels, which will remain a focus area during the second half of the financial year. This, together with lower than planned investment in our product pipeline in the first half, have contributed to a higher than expected cash position of approximately £5.00m (30th June 2014: £3.81m, 31st December 2013: £3.75m).
Summary and Outlook
During the period Animalcare started the distribution of Pet Remedy in the UK and Ireland. Pet Remedy is a natural de-stressing and calming product for use with several companion animal species, crucially with the support of clinical studies.
The sales and marketing teams are planning the UK launch of three pharmaceutical products on behalf of a European partner in the second half and these are expected to make a small contribution to revenue in the current financial year with greater impact in the next year.
The product development pipeline activities are progressing well with expenditure weighted to the second half.
Compulsory microchipping for dogs in Wales has been delayed from March 2015 to a date still to be confirmed. Preparations are well underway for the Animalcare pet and owner database to be ready on the DEFRA timetable. Engagement by dog owners in preparation for the deadline in England in April 2016 has been slow but as this gathers momentum Animalcare is well placed to benefit.
Following the solid trading performance in the first half, particularly across the Licensed Veterinary Medicines and Companion Animal Identification product groups, the Board remains confident about the prospects and outcome for the full year.
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 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 & 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.