Animalcare Group PLC Trading update & Notice of Interim Results (5900T)
09 January 2017 - 6:00PM
UK Regulatory
TIDMANCR
RNS Number : 5900T
Animalcare Group PLC
09 January 2017
Animalcare Group plc
(the 'Group' or the 'Company')
Trading update & Notice of Interim Results
Animalcare Group plc (AIM: ANCR), a leading supplier of
veterinary medicines, provides a trading update for the first six
months of the current financial year ahead of publishing its
interim results on 15(th) February 2017. Following a very strong
first half-year for the Group, the Board is pleased to announce
that it expects that trading for the year ending 30(th) June 2017
will be ahead of current market expectations.
Trading Update
Trading during the period has been ahead of the Board's
expectations in both sales and profit terms, which saw revenue
growth of 12.0% versus the same period last year to GBP7.97m (2015:
GBP7.11m).
The Licensed Veterinary Medicines group continued to grow
strongly in the first half with revenues increasing 17.2% to
GBP5.37m (2015: GBP4.58m), driven by growth in the UK of 14.6% and
outside the UK of 37.7%. Sales from new products launched in the
period contributed around GBP0.20m, or 4%, of the overall 17.2%
growth. Gross margins have improved versus the prior year through a
combination of favourable sales mix and cost of goods
initiatives.
Sales from the Animal Welfare Products group improved by 13.4%
to GBP1.51m (2016: GBP1.34m) driven by continued strong growth of
our infusion accessories range.
The Companion Animal Identification group revenues decreased by
9.2% to GBP1.09m (2016: GBP1.20m). Following the implementation of
compulsory microchipping of dogs in the United Kingdom in April
2016, we expected and have observed a reduction in microchip
volumes, which we expect to last into the medium-term. Database
services however have continued to grow.
The Group's cash position remains strong with period end cash
balances at approximately GBP7.0m (30(th) June 2016: GBP7.1m,
31(st) December 2015: GBP6.1m). As expected, we have made a
significant net investment in working capital to support
growth.
Summary and Outlook
Four products were launched in the first half; three as part of
a range of ear cleaners and treatments, all on distribution, and
one new product from our in-house development pipeline, Acecare (a
companion animal sedative).
It is expected that there will be two further product launches
in H2, both on distribution from EU partners and both for use with
companion animals.
As we highlighted in our FY16 results in October, despite the
uncertainty of Brexit, the Board took the decision to accelerate
investment in new products on the strength of continued positive
trading momentum and the Group's strong financial position. We are
pleased to report good progress in our product development
pipeline, in particular with regard to the identification of novel
formulations which, as previously stated, are strategic focus for
the Group. We expect expenditure on our pipeline to increase for
the current financial year to around GBP2.0m (FY16: GBP1.6m).
Following a very strong first half-year for the Group, the Board
is pleased to announce that for the year ending 30(th) June 2017 it
expects trading will be ahead of current market expectations and
revenues to be in line with the first half.
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 & Broker)
Freddy Crossley Tel: 020 7886 2500
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
About Animalcare
Animalcare is a leading veterinary sales and marketing company
based in York with 68 employees including a sales team of 24
selling to veterinary practices around the United Kingdom.
Animalcare has developed a range of generic veterinary medicines
and animal identification products primarily to companion animal
veterinary markets.
Animalcare operates in three product areas:
-- Licensed Veterinary Medicines
-- Animal Welfare Products
-- Companion Animal Identification
For more information see: www.animalcaregroup.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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