Animalcare Group plc Unaudited Interim Results

Animalcare Group plc Unaudited Interim Results

Animalcare, the supplier of pharmaceutical and other premium products and services to the veterinary industry, announces its interim results for the six months ended 31st December 2011.  Unless otherwise indicated, comparative data relates to the six months ended 31st December 2010.   

As stated in the update issued in late January, trading continues to be in line with market expectations for the full year.  The core veterinary medicines business has performed well in spite of the expected supply issues affecting certain product sales during the first half, while the general economic environment has also impacted trading in sales of companion animal identification microchips and related services.

Animalcare is debt free with strong cash generation and the Board proposes an improved interim dividend of 1.5p per ordinary share.

Animalcare continues its focus on the supply of products to veterinary professionals principally for use in companion animal markets.

Financial Highlights (Continuing Operations except EPS) 

  • H1 revenue levels reflect the temporary supply disruptions with our key product, Buprecare, and reductions in sales volumes in microchip identification products and related services.
  • Driven by new product introductions licensed veterinary medicine sales excluding Buprecare increased by 14% compared to the same period last year .
  • Basic underlying earnings per share from total operations of 4.7p (2010: 5.0p) have been supported by a change in the sales mix towards higher margin veterinary medicines, good overall cost management and benefit in the current period of research and development tax credits (see below) reducing the effective tax rate.
  • Cash generation from operations has remained strong (at around £1.3m) and the Group's net cash position has improved to £1.75m as at 31 December 2011 (2010:  £0.43m).

Operational Highlights

  • New products launched in previous year showing good growth above expectations.
  • Four new product launches during the period hitting the annual target for new product launches by the end of October.
  • Reintroduction of Buprecare based products achieved in France in December 2011 and planned for other key markets, including the UK, in Q3. Single dose ampoule being re-introduced in Q4 or early in the next financial year.    
  • Product development pipeline remains on track with Quattro and Stone 1 passing significant milestones.
  • Appointment of Chris Brewster as Chief Financial Officer with effect from 31 May 2012.

Commenting on the performance and outlook, James Lambert, Chairman of Animalcare, said: "During the first six months of this financial year we have overcome the temporary loss of supply of one of our key products, Buprecare ampoules. Reduced consumer confidence is however significantly affecting our companion animal identification business, but the strength of our portfolio of licensed veterinary medicines continues to deliver growth greater than the overall market. Whilst the second half of the year presents challenges, the Board believes that overall trading for the full year will be in line with market expectations."

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