Last checked at 18 Apr 2018 07:00
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
Animalcare Group plc
(the "Group" or the "Company")
Trading update
Animalcare Group plc (AIM: ANCR) provides the following trading update for the Group ahead of publishing its preliminary results on 15 May 2018.
2017 expectations unchanged
Expectations for the Group's first financial period ended 31 December 2017 remain unchanged, and as previously announced total revenues will show a year-on-year increase of c. 9.5% to £91.9m, slightly ahead of management expectations, and earnings for the period will be broadly in line with management expectations.
Update on 2018
Sales growth is expected to be stronger across the Group during the current financial year as the integration of the businesses continues to progress throughout the year. The Company is expected to deliver further incremental growth in underlying EBITDA, underlying net earnings and EPS against 2017 results, maintaining at least double digit growth at these levels. However due to the impact on gross margins of a changing sales mix and competitive pressures, these levels of earnings, whilst still significantly ahead of the prior year, will be below market expectations for 2018.
Management focus
The management continues to focus on building shareholder value in the long term by delivering:
· strong cash generation - enabling the Group to invest in future growth
· continuing dividend payments - cash generation and the Group's strong balance sheet allows the current dividend policy to be maintained whilst continuing to invest in new product development
· a clear strategy for growth - through an enhanced geographic footprint and sales, marketing and distribution network, and a strong product development pipeline.
In addition further synergies and cross-selling opportunities will start to take effect during 2018 as integration progresses, but will deliver a more meaningful impact on profit margins during 2019.
Chris Cardon, CEO of Animalcare Group plc, commented:
"As a Board we are focussed on building long term shareholder value through continued strong cash generation, which enables us to invest in further growth via new product development, as well as maintaining our current dividend policy. We remain confident of the strategic rationale of a leading Pan-European animal-health business and the long-term share value that will come with it."
Animalcare Group plc | Tel: 01904 487 687 | |
Chris Cardon, Chief Executive Officer | ||
Chris Brewster, Chief Financial Officer | ||
Iain Menneer, Chief Operating Officer | ||
Panmure Gordon (Nominated Adviser & Broker) | Tel: 020 7886 2500 | |
Freddy Crossley / Peter Steel (Corporate Finance) | ||
James Stearns (Corporate Broking) | ||
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).