TIDMANCR
RNS Number : 1634C
Animalcare Group PLC
14 October 2015
Animalcare Group plc
("Animalcare", the "Company" or the "Group")
Full Year Results
Animalcare Group plc (AIM: ANCR), a leading supplier of
veterinary medicines, announces results for the year ended 30(th)
June 2015. This year has seen good progress which is reflected in
the financial performance and strong cash position, placing the
Group in an excellent position to take advantage of investment
opportunities as and when they arise.
Animalcare is made up of three product groups: Licensed
Veterinary Medicines, Companion Animal Identification and Animal
Welfare Products.
Financial Highlights
-- Revenue up 5.1% to GBP13.5m (2014: GBP12.9m)
-- Underlying* operating profit up 11.0% to GBP3.1m (2014: GBP2.8m)
-- Underlying* basic earnings per share up 16.7% to 12.6p (2014: 10.8p)
-- Reported pre-tax profits up 12.6% to GBP3.01m (2014: GBP2.67m)
-- Strong, debt free balance sheet with net cash of GBP5.8m (2014: GBP3.8m)
-- Cash generated from operations GBP4.5m (2014: GBP1.6m)
-- Total recommended dividend up 10.9% to 6.1p (2014: 5.5p)
*underlying measures are before the effect of exceptional costs
and other items
Operational Highlights
-- Strong increase in sales of Licensed Veterinary Medicines, up
8.8% to GBP8.6m (2014: GBP7.88m)
-- Volume of microchips sold increased in the period, with
revenues impacted by the phasing of equine export chip sales
-- Revenues from the Animal Welfare Products range increased 2.6% to GBP2.65m (2014: GBP2.58m)
-- Investment in product development pipeline has increased
substantially in the period. 3 development projects progressed to
regulatory submission, of which 1 licence has been granted
-- A new post of European Development Manager has been
successfully filled to focus entirely on expanding potential from
territories outside the UK
Iain Menneer, Chief Executive Officer of Animalcare, said: "I am
delighted that we've followed last year's growth with another set
of solid results, particularly with a strong performance from our
Licensed Veterinary Medicines business. Again a key feature of our
financial results has been the impressive cash generation of the
business which has allowed us to continue our investment in new
product development whilst maintaining a progressive dividend
policy. We are well positioned to deliver further growth as planned
from 2017 onwards."
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: 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 60 employees including a field sales force of 16
representatives selling to all 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 - 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.
Chairman's Statement
Animalcare remains focused on three product groups: Licensed
Veterinary Medicines, Companion Animal Identification and Animal
Welfare Products; all sold through veterinary practices. The three
areas of the business have performed well during the year; in
particular the continued growth of Licensed Veterinary Medicines by
8.8% is very pleasing and follows a strong year in 2014.
Financial Trading
Group revenues increased by 5.1% from GBP12.9m to GBP13.5m
principally due to the growth in sales of Licensed Veterinary
Medicines by GBP696k to GBP8.6m. This good performance has led to
pre-tax profits increasing by 12.7% during the year and over 30% in
the past two years. Basic earnings per share have increased from
10.3p to 12.1p, up 17.5% in the period and 33% in the past two
years. Cash generation has remained very strong, with cash
increasing from GBP3.8m to GBP5.8m.
People
The senior management of your business has been further
strengthened during the year with high calibre individuals from the
human and animal pharmaceutical industry. A Senior Management Team
meeting made up of all the heads of departments is chaired monthly
by our CEO Iain Menneer, setting and monitoring budgets, and
running the business day-to-day.
The plc Board, which meets eight times a year, is chaired by
myself as Non-Executive Chairman, having held CEO and Chairman
roles for thirty years. Nick Downshire also has wide business
experience and is a qualified accountant and chairs the Audit
Committee. Ray Harding is a qualified veterinary surgeon and set up
and ran a successful pharmaceutical regulatory consultancy for
fifteen years and is Chairman of the Remuneration and the
Nomination Committees. Along with the CEO and CFO your Board sets
the strategy to enhance shareholder value in all three main
operating areas of the business. I believe the success and the
long-term growth of Animalcare are well served by a stable,
experienced, well balanced and challenging Board. This coupled with
an able, talented hard working management team gives your Company
real opportunity for continued growth over the coming years.
Product Development Pipeline
Progress has been made during the period developing new products
in our in-house development pipeline. Our investment in product
development and in regulatory assessment fees has grown
significantly during the year to almost GBP800k, an area which is
core to our growth strategy.
Dividend
Your Board proposes, subject to shareholder approval, an
increased final dividend of 4.3 pence per share. With 1.8 pence per
share paid as the interim dividend this brings the total for the
year to 6.1 pence per share, representing growth of 10.9% (2014:
5.5 pence per share), which is in line with underlying operating
profit and is well covered by the increase in cash balances.
Prospects
With the significant increase in investment in new product
development and in the infrastructure across all areas of its
business, Animalcare is well positioned and delivering its strategy
for further growth in sales from 2017 onwards. Your Company
possesses not only an experienced, talented and well-balanced
leadership team but also a capable hard working workforce. I would
like to thank them all for their commitment during the year, which
continues to deliver an exciting growing business.
James Lambert
Non-Executive Chairman
Chief Executive's Review
Introduction
I am very pleased to report increased sales for the business
during a period of investment. Revenues have grown in the period by
5.1% to GBP13.5m (2014: GBP12.8m). During the last two years we
have been building a business that provides a strong platform from
which to launch a new period of growth. This has been based on
bringing together the best team possible and giving them the right
environment to deliver our key strategic objectives. I am very
happy with the progress we are making to deliver that growth.
Business Review
The veterinary market continues to evolve, presenting new
opportunities to work differently with a customer base that is
consolidating and looking for increasing value from the products
and services we provide.
Latest industry figures show that dog numbers in the UK have
declined by 4.7% to 8.5m and cats by 6.8% to 7.4m (Pet Food
Manufacturers' Association, www.pfma.co.uk), with this trend
appearing to reflect across other pet species too. There are no
clear reasons for this change at a time when the economy is getting
stronger in the UK after several years of recession. The national
dog and cat charities believe these changes are as a result of
their campaigns promoting responsible pet ownership. We believe we
have limited exposure to these changes in pet population due to the
clinical nature of our product portfolio and the demographic of
veterinary customers likely to have been affected by changes in pet
ownership.
Licensed Veterinary Medicines
The Licensed Veterinary Medicines group again generated strong
sales, growing by 8.8%. During the first half of the period the
main competitor to our product Buprecare (an analgesic and
controlled drug) was absent from the market for a period of several
months allowing Animalcare to benefit from non-recurring sales
estimated at GBP0.2m.
In the first half of the year we launched the Pet Remedy range
of over the counter products on distribution in the UK and Ireland.
Pet Remedy is based on a patented formulation containing valerian
at a specific level to calm pets. It can be used across all species
and has proved very popular and effective in many domestic and
veterinary settings.
(MORE TO FOLLOW) Dow Jones Newswires
October 14, 2015 02:00 ET (06:00 GMT)
During the second half we launched four new pharmaceutical
products, all on distribution from an EU partner. Synthadon and
Anaestamine both complemented our growing anaesthetic and analgesic
range; Clavubactin and Fungiconazole are an antibiotic and
antifungal product respectively. All are focused on the companion
animal market. Whilst in the first few months of their launch
phase, sales of each are progressing well.
Encouragingly, our pharmaceutical products are growing above
market rates in comparison to the most recent UK market data which
show a 1.1% increase for companion animal medicines revenues in the
12 months to March 2015 (National Office of Animal Health,
www.noah.co.uk).
Companion Animal Identification
The sales volume of our Identichip microchips increased in the
period by 1.7%, however UK revenues decreased by 2.2%,
like-for-like. A significant equine export order fulfilled late in
the prior period adversely affected revenues from this channel in
this reporting period.
In April 2016 it will be a legal requirement for all dogs in
England to be microchipped and in addition it will be an offence if
the owners' details are not kept up to date on the associated
microchip database. The Scottish Parliament and Welsh Assembly have
recently followed suit in introducing similar legislation,
effective April 2016.
This impending change in the law has not had a dramatic effect
on the uptake of microchipping. However, our veterinary customers
have become more price sensitive and responsive to short-term
promotional campaigns. We have plans underway to bring value back
into the market once it settles down.
Pleasingly through this period our revenues from services
derived from the microchip database have continued to rise.
Animal Welfare Products
The Animal Welfare Products group grew by 2.6% in the period.
The infusion accessories range complements our prescription
medicine intravenous fluids range and grew in the period by 5.3%,
representing over 50% of the product group. Other categories in
this group achieved revenues meeting our expectations with very
modest levels of commercial support.
As stated before, we continue to assess our product portfolio
not only to rationalise poor performing or lower margin items but
to selectively invest in new opportunities that complement our
existing ranges to enhance revenue growth and profit
generation.
People
General
Animalcare is a great place to work and we pride ourselves on
the positive and supportive culture. I have highlighted in previous
reports that changes have been made to bring the personnel systems
up to date and to a level befitting a company of its size and
stature. I am very pleased that further progress has been made
during the year to incentivise and reward colleagues better.
Attention has now focused on staff engagement by improving
company-wide communication and awareness raising. These efforts are
having a positive effect in all areas of the business; and I am
pleased that this year we have again experienced more staff
promotions into new and responsible positions.
Management
Senior management changes during the financial year have
resulted in a stronger, more capable leadership team. Sarah
McKenzie joined as Head of Marketing from a senior commercial
position at Teva UK, the global generic pharmaceutical company.
Sarah brings directly applicable skills and experience from some
very similar dynamics in the human generics market.
More recently, Martin Gore, formerly of Novartis Animal Health's
leadership team in the UK, was appointed to a newly created
position to focus on European development. Martin has a wealth of
commercial skills gained in the animal and human health sector and
has recent experience as a country manager in Ireland.
Sales
During the period we have concluded the reorganisation of our
sales team. It is divided into two regions addressing the north and
south of the UK. A structure has been introduced to support sales
management. This change allows us to reward and motivate senior
representatives more effectively. Field sales have been supported
by the successful introduction of a telesales team. The final
development is the strengthening of our key account support
necessitated by the increase in corporate and buying group
customers. Structural changes have been complemented by significant
investment in training and development of our sales team. It is our
goal to better serve our customers' changing requirements and build
a team that is capable of fully exploiting the new products and
services that our product pipeline will bring to market.
Product Pipeline
I am very pleased to report that good progress has been made in
our product development pipeline. Development work has focused on
identifying new product opportunities and also ways to
significantly enhance the commercial potential of existing
pharmaceutical products.
Four new and four existing product development projects reached
the 'Regulatory' stage of our pipeline, three being submitted to
the authorities for assessment. One of these products has already
been approved and will be launched to the UK market early in the
second half of the current financial year. The other two are
currently progressing through regulatory assessment successfully to
date.
These submissions are a clear sign that the strengthening of the
development process is having an effect and that progress is being
made; evidence of which will be in their launch from January 2016
onwards. Furthermore, other submissions will be made during the
current financial year.
Europe
Animalcare's sales outside the UK have been broadly constant for
several years, averaging 8% of total turnover. The growth in our
home UK market has not been reflected in mainland Europe. Therefore
one of Animalcare's stated strategic ojectives is to increase sales
outside the UK and reach the potential that patently exists.
A major step forward was the creation of a new post with the
sole responsibility to achieve this. As outlined above, Martin Gore
was appointed Head of Export Development late in the period.
Martin will assess current distribution arrangements in existing
territories, offering support and insight from our central
technical and marketing functions as required. In addition he will
also identify new territory and distribution partner opportunities.
In doing so Martin will increase our exposure in Europe with the
intention to stimulate more inward product opportunities too.
Operations
Supply Chain
During the year our operations function has started a structured
programme to manage the supply chain more robustly, including
monitoring supplier performance and developing more informed
forecasting models. It is believed that both of these elements will
improve product supply and tighten control of stock levels.
Outlook
Over the past two financial years significant effort has been
made to build a strong platform to launch into a new growth phase
in Animalcare's history. I believe the essential ingredients are
now in place and are already delivering progress in key areas of
sales, product development and European growth.
During the past six months significant progress has been made
increasing networks and contacts in an effort to source products to
acquire or in-license. Whilst still in the early stages, there are
some exciting opportunities under discussion.
Our business is strongly cash generative giving us the necessary
resources to invest significantly in our product pipeline. We will
continue to invest in and develop our enthusiastic and committed
Animalcare team who are at the core of everything
we do.
Iain Menneer
Chief Executive Officer
Chief Financial Officer's Review
Presentation of results
We present our financial results on two bases. Underlying
results show the performance of the business before exceptional and
other items since the Directors believe this provides a clearer
understanding of business performance. IFRS results include these
items to give the statutory results.
Overview
We delivered another solid performance during the financial year
to 30(th) June 2015, with underlying operating profit increasing by
11.0% compared with previous year to GBP3.1m. This reflects our
strong operational performance, both in revenue and margin terms,
while continuing to make the necessary investment in our business
to support future growth.
Our balance sheet strength continues to build, with Group cash
balances of GBP5.8m at 30(th) June 2015. The Group's consistent
profitable growth has enabled us to generate the funds we need to
invest in our product development pipeline, a key part of our
organic growth strategy.
Revenue and gross profit
Revenue GBP'000 2015 2014 % change
-------------------------------- ------ ------ --------
Licensed Veterinary Medicines 8,579 7,883 8.8%
Companion Animal Identification 2,309 2,418 (4.5%)
Animal Welfare Products 2,648 2,580 2.6%
-------------------------------- ------ ------ --------
TOTAL 13,536 12,881 5.1%
-------------------------------- ------ ------ --------
Overall revenues grew by 5.1% to GBP13.5m (2014: GBP12.8m). Our
Licensed Veterinary Medicines group, which represents 63% of total
revenue, again delivered good growth of 8.8%, 5.5% of which is
like-for-like growth. As we noted in our Interim Report dated
31(st) December 2014, this includes a circa GBP0.2m non-recurring
first half benefit from sales of Buprecare as a result of supply
issues with a competitor product. The remaining growth is largely
driven by sales of recently launched new products.
The strong performance in Licensed Veterinary Medicines was
offset by a decline in Companion Animal Identification sales,
mostly due to the phasing of export equine chip sales.
Our Animal Welfare Products group grew modestly driven by our
growing infusion accessories range, which represents around 50% of
the GBP2.6m sales.
(MORE TO FOLLOW) Dow Jones Newswires
October 14, 2015 02:00 ET (06:00 GMT)
Gross profit increased by 6.0% to GBP7.6m (2014: GBP7.1m). Our
gross margins improved to 55.9% (2014: 55.4%), primarily due to the
non-recurring Buprecare benefit noted above. Due to favourable
sales mix, underlying gross margins remain comparable with the
prior year.
The financial performance of each product group is reviewed in
more detail within the Business Review section of the Chief
Executive's Review.
Operating results
Revenue GBP'000 2015 2014 % change
---------------------------- ----- ----- --------
Underlying EBITDA 3,423 3,162 8.3%
Depreciation & amortisation (313) (360)
Underlying operating profit 3,110 2,802 11.0%
---------------------------- ----- ----- --------
Profit before tax 3,010 2,672 12.7%
---------------------------- ----- ----- --------
Underlying operating profit increased by 11.0% to GBP3.1m and
our operating margin improved by 120 basis points to 23% (2014:
21.8%). Overheads, excluding research and development expenses,
increased by GBP0.2m to GBP4.3m, as we continue to make the
necessary investment, in particular in our management and support
teams, to position the business for future growth. Research and
development costs, which incorporate a share of the salaries of the
product development team, have decreased by GBP0.1m against last
year, reflecting the largely capital nature of the overall spend on
our product pipeline.
Non-underlying items principally incorporate the amortisation of
acquired intangibles as detailed in note 4 to this
announcement.
Reflecting all of the above, Group profit before tax was up
12.7% to GBP3.0m (2014: GBP2.7m).
Cash flow
Our Group cash position grew by GBP2.0m to GBP5.8m as at 30(th)
June 2015. Cash generated by operations was very strong at GBP4.5m
(2014: GBP1.6m). We have focused on optimising our stock position
following the peak seen in FY14 which has, to date, delivered a
reduction of GBP0.8m. This project continues to ensure we maintain
the necessary focus on our supply chain and the resulting impact of
streamlining our working capital.
It is of primary importance that the Group reinvests the free
cash in our business to support future growth and, as planned,
during the year we have substantially increased our expenditure in
our product development pipeline as shown in the table below:
Year ended 30(th) Capitalised development
June costs (GBPm)
------------------ ------------------------
2013 GBP0.1m
------------------ ------------------------
2014 GBP0.2m
------------------ ------------------------
2015 GBP0.8m
------------------ ------------------------
The four-fold increase in expenditure against 2014 highlights
the progress made in our pharmaceutical pipeline, as a result of
the decisions made during FY14 to recruit additional resource
within our Technical and Business Development teams.
Earnings per share ("EPS")
Basic underlying EPS improved by 16.7% to 12.6 pence (2014: 10.8
pence). Basic EPS rose by 17.5% to 12.1 pence (2014: 10.3 pence)
reflecting the lower cost of exceptional items incurred during
2015.
Dividends
Since 2008 we have returned GBP5.5m to shareholders or 26.6
pence per share. This reflects the consistent and continuing
strength of our operations, our balance sheet and cash
position.
The Board is proposing a final dividend in respect of the year
of 4.3 pence per share, giving a total dividend of 6.1 pence per
share for 2015 (2014: 5.5 pence per share). This final dividend is
subject to shareholder approval at the Annual General Meeting on
17(th) November 2015 and will be paid on 27(th) November 2015 to
shareholders on the register at the close of business on 23(rd)
October 2015.
The ordinary shares will become ex-dividend on 22(nd) October
2015.
The Board will continue to monitor the Group's cash position to
ensure an appropriate balance between investment for future growth
and dividend flow to deliver overall value for our
shareholders.
Summary
The Group continues to make good progress which is reflected in
our financial performance. We enter the 2016 financial year with a
strong cash position, placing our business in an excellent position
to take advantage of investment opportunities as and when they
arise. Focused investment will continue, both within our employee
base and product development pipeline, to deliver sustainable
profitable growth in the coming years.
Chris Brewster
Chief Financial Officer
Consolidated Statement of profit and loss and Comprehensive
Income
Year ended 30 June 2015
Underlying
Underlying results before
results
before exceptional Exceptional
exceptional Exceptional
and and and and
other items other items(i) Total other items other items(i) Total
2015 2015 2015 2014 2014 2014
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- ---- ------------- --------------- -------- --------------- --------------- --------
Revenue 5 13,536 - 13,536 12,881 - 12,881
Cost of sales (5,963) - (5,963) (5,739) - (5,739)
-------------------------- ---- ------------- --------------- -------- --------------- --------------- --------
Gross profit 7,573 - 7,573 7,142 - 7,142
Distribution costs (279) - (279) (257) - (257)
Administrative expenses (4,041) (110) (4,151) (3,823) (119) (3,942)
Research & development
expenses (143) - (143) (260) - (260)
-------------------------- ---- ------------- --------------- -------- --------------- --------------- --------
Operating profit/(loss) 4, 6 3,110 (110) 3,000 2,802 (119) 2,683
Finance income 27 - 27 27 - 27
Finance expense 9 - (17) (17) - (38) (38)
-------------------------- ---- ------------- --------------- -------- --------------- --------------- --------
Profit/(loss) before
tax 4, 6 3,137 (127) 3,010 2,829 (157) 2,672
Income tax
(expense)/credit 10 (502) 26 (476) (570) 35 (535)
-------------------------- ---- ------------- --------------- -------- --------------- --------------- --------
Total comprehensive
income/
(loss) for the year 2,635 (101) 2,534 2,259 (122) 2,137
-------------------------- ---- ------------- --------------- -------- --------------- --------------- --------
Earnings per share
Basic 12 12.6p 12.1p 10.8p 10.3p
Fully diluted 12 12.5p 12.0p 10.8p 10.2p
Total comprehensive income/(loss) for the year is attributable
to the equity holders of the parent.
i. In order to aid understanding of underlying business
performance, the Directors have presented underlying results before
the effect of exceptional and other items. These exceptional and
other items are analysed in detail in note 4 to these financial
statements.
Statements of Changes in Shareholders' Equity
Year ended 30 June 2015
Share Share Retained
Capital Premium Account Earnings Total
Group Note GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------------------- ---- -------- ---------------- --------- --------
Balance at 1(st) July 2013 4,149 6,192 7,621 17,962
Total comprehensive profit for the year - - 2,137 2,137
Transactions with owners of the Company, recognised
in equity:
Dividends paid 11 - - (1,103) (1,103)
Issue of share capital 23 43 199 - 242
Share-based payments 25 - - 215 215
---------------------------------------------------- ---- -------- ---------------- --------- --------
Balance at 1(st) July 2014 4,192 6,391 8,870 19,453
Total comprehensive profit for the year - - 2,534 2,534
Transactions with owners of the Company, recognised
in equity:
Dividends paid 11 - - (1,217) (1,217)
(MORE TO FOLLOW) Dow Jones Newswires
October 14, 2015 02:00 ET (06:00 GMT)
Issue of share capital 23 12 70 - 82
Share-based payments 25 - - 139 139
---------------------------------------------------- ---- -------- ---------------- --------- --------
Balance at 30(th) June 2015 4,204 6,461 10,326 20,991
---------------------------------------------------- ---- -------- ---------------- --------- --------
Share Share Retained
Capital Premium Account Earnings Total
Company Note GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------------------- ---- -------- ---------------- --------- --------
Balance at 1(st) July 2013 4,149 6,192 2,399 12,740
Total comprehensive profit for the year - - 2,166 2,166
Transactions with owners of the Company, recognised
in equity:
Dividends paid 11 - - (1,103) (1,103)
Issue of share capital 23 43 199 - 242
Share-based payments 25 - - 86 86
---------------------------------------------------- ---- -------- ---------------- --------- --------
Balance at 1(st) July 2014 4,192 6,391 3,548 14,131
Total comprehensive loss for the year - - (327) (327)
Transactions with owners of the Company, recognised
in equity:
Dividends paid 11 - - (1,217) (1,217)
Issue of share capital 23 12 70 - 82
Share-based payments 25 - - 74 74
---------------------------------------------------- ---- -------- ---------------- --------- --------
Balance at 30(th) June 2015 4,204 6,461 2,078 12,743
---------------------------------------------------- ---- -------- ---------------- --------- --------
As permitted by section 408 of the Companies Act 2006, the
statement of comprehensive income of the parent Company is not
presented as part of these financial statements.
Balance Sheets
Year ended 30 June 2015
Group Company
2015 2014 2015 2014
Note GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------------- ---- -------- -------- -------- --------
Non-current assets
Goodwill 13 12,711 12,711 - -
Other intangible assets 14 1,780 1,327 6 -
Property, plant and equipment 15 306 372 - -
Investments in subsidiary companies 16 - - 14,361 14,361
Deferred tax asset 22 - - 88 39
--------------------------------------------- ---- -------- -------- -------- --------
14,797 14,410 14,455 14,400
--------------------------------------------- ---- -------- -------- -------- --------
Current assets
Inventories 17 1,653 2,420 - -
Trade and other receivables 18 2,247 1,883 238 144
Cash and cash equivalents 19 5,777 3,812 1,576 1,315
--------------------------------------------- ---- -------- -------- -------- --------
9,677 8,115 1,814 1,459
--------------------------------------------- ---- -------- -------- -------- --------
Total assets 24,474 22,525 16,269 15,859
--------------------------------------------- ---- -------- -------- -------- --------
Current liabilities
Trade and other payables 19 (2,186) (1,606) (3,526) (1,728)
Current tax liabilities (212) (385) - -
Deferred income 21 (234) (242) - -
(2,632) (2,233) (3,526) (1,728)
--------------------------------------------- ---- -------- -------- -------- --------
Net current assets/(liabilities) 7,045 5,882 (1,712) (269)
--------------------------------------------- ---- -------- -------- -------- --------
Non-current liabilities
Deferred income 21 (724) (730) - -
Deferred tax liabilities 22 (127) (109) - -
--------------------------------------------- ---- -------- -------- -------- --------
(851) (839) - -
--------------------------------------------- ---- -------- -------- -------- --------
Total liabilities (3,483) (3,072) (3,526) (1,728)
--------------------------------------------- ---- -------- -------- -------- --------
Net assets 20,991 19,453 12,743 14,131
--------------------------------------------- ---- -------- -------- -------- --------
Capital and reserves
Called up share capital 23 4,204 4,192 4,204 4,192
Share premium account 6,461 6,391 6,461 6,391
Retained earnings 10,326 8,870 2,078 3,548
--------------------------------------------- ---- -------- -------- -------- --------
Equity attributable to equity holders of the
parent 20,991 19,453 12,743 14,131
--------------------------------------------- ---- -------- -------- -------- --------
Cash Flow Statements
Year ended 30 June 2015
Group Company
2015 2014 2015 2014
Note GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------------- ---- -------- -------- -------- --------
Comprehensive income/(loss) for the year
before tax 10 3,010 2,672 (464) (519)
Adjustments for:
Depreciation of property, plant and equipment 15 73 69 - -
Amortisation of intangible assets 14 359 410 1 -
Finance income 9 (27) (27) (15) (20)
Share-based payment expense 25 139 152 74 86
Release of deferred income 21 (14) (49) - -
---------------------------------------------- ---- -------- -------- -------- --------
Operating cash flows before movements
in working capital 3,540 3,227 (404) (453)
Decrease/(increase) in inventories 17 767 (1,002) - -
(Increase)/decrease in receivables 18 (392) (221) (6) 7
Increase/(decrease) in payables 19 608 (376) 1,798 (2,294)
---------------------------------------------- ---- -------- -------- -------- --------
Cash generated by operations 4,523 1,628 1,388 (2,740)
Income taxes (paid)/received (631) (561) - 552
Net cash flow from operating activities 3,892 1,067 1,388 (2,188)
---------------------------------------------- ---- -------- -------- -------- --------
Investing activities:
Payments to acquire intangible assets 14 (812) (199) (7) -
Payments to acquire property, plant and
equipment 15 (7) (32) - -
Receipts from sale of property, plant
and equipment - 2 - -
Dividends received - - - 2,553
Interest received 27 27 15 20
Net cash (used in)/generated by investing
activities (792) (202) 8 2,573
---------------------------------------------- ---- -------- -------- -------- --------
Financing:
Receipts from issue of share capital 82 305 82 242
Equity dividends paid 11 (1,217) (1,103) (1,217) (1,103)
Net cash used in financing activities (1,135) (798) (1,135) (861)
---------------------------------------------- ---- -------- -------- -------- --------
Net increase/(decrease) in cash and cash
(MORE TO FOLLOW) Dow Jones Newswires
October 14, 2015 02:00 ET (06:00 GMT)
equivalents 1,965 67 261 (476)
Cash and cash equivalents at start of
year 3,812 3,745 1,315 1,791
---------------------------------------------- ---- -------- -------- -------- --------
Cash and cash equivalents at end of year 5,777 3,812 1,576 1,315
---------------------------------------------- ---- -------- -------- -------- --------
Comprising:
Cash and cash equivalents 18 5,777 3,812 1,576 1,315
---------------------------------------------- ---- -------- -------- -------- --------
Notes to the Accounts
Year ended 30 June 2015
1. General Information
Animalcare Group plc ("the Company") is a company incorporated
in England and Wales under the Companies Act 2006 and is domiciled
in the United Kingdom. The Group comprises Animalcare Group plc and
its subsidiary, Animalcare Ltd.
The following new standards and amendments to standards are
mandatory for the first time for financial periods beginning on or
after 1(st) January 2014. Their effect has been limited to
disclosure amendments.
IFRS 10: Consolidated Financial Statements
IAS 27: Separate Financial Statements
Amendments to IAS 32: Financial Instruments: Disclosures -
Offsetting Financial Assets & Liabilities
Amendments to IAS 36: Recoverable Amount Disclosures for
non-Financial Assets
The IASB and IFRIC have issued the following standards and
interpretations, endorsed by the EU, with an effective date after
the date of these financial statements. Their adoption, where
applicable, is not expected to have a material effect on the
financial statements of the Group.
International Financial Reporting Standards Applies to periods beginning after
------------------------------------------- ----------------------------------
Annual Improvements to IFRSs 2010-2012 1(st) February 2015
Cycle
Annual Improvements to IFRSs 2011-2013 1(st) February 2015
Cycle
2. Significant Accounting Policies
Basis of preparation
The Group and Company financial statements have been prepared
and approved by the Directors under the historical cost convention,
except for the revaluation of certain financial instruments, in
accordance with International Financial Reporting Standards
("IFRS") as adopted by the European Union ("adopted IFRSs") and the
Companies Act 2006 as applicable to companies reporting under IFRS.
They have also been prepared in accordance with the requirements of
the AIM Rules.
This announcement has been prepared based on accounting policies
which are consistent with those described in the Annual Report for
the year ended 30 June 2014. Whilst the financial information
included in this preliminary announcement has been computed in
accordance with IFRS as adopted by the European Union, this
announcement does not itself contain sufficient information to
comply with IFRS. The Company expects to publish full financial
statements before the end of October 2015.
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 30 June 2015 or
2014 but is derived from the 2015 accounts. Statutory accounts for
2014 have been delivered to the Registrar of Companies and those
for 2015 will be delivered in due course. The Auditor has reported
on those accounts; the report was (i) unqualified, (ii) did not
include references to any matters to which the Auditor drew
attention by way of emphasis without qualifying the reports and
(iii) did not contain statements under section 498(2) or (3) of the
Companies Act 2006.
Going concern
An analysis of the factors likely to impact on the Group's
future business activities, performance and strategy are set out in
the Chief Executive's Review and Chief Financial Officer's
Review.
For the purposes of their assessment of the appropriateness of
the preparation of the Group's accounts on a going concern basis,
the Directors have considered the current cash position and
forecasts of future trading including working capital and
investment requirements.
During the year the Group met its day-to-day general corporate
and working capital requirements through existing cash resources.
At 30(th) June 2015 the Group had cash on hand of GBP5.8m (30(th)
June 2014: GBP3.8m).
Overall, the Directors believe the Group is well placed to
manage its business risks successfully. The Group's forecasts and
projections, taking account of reasonable possible changes in
trading performance, show that the Group should have sufficient
cash resources to meet its requirements for at least the next 12
months. Accordingly, the adoption of the going concern basis in
preparing the financial statements remains appropriate.
Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and the entity controlled by the Company
(its subsidiary) made up to 30(th) June each year. Control is
achieved where the Company has the power to govern the financial
and operating policies of an investee entity so as to obtain
benefits from its activities.
The results of a subsidiary acquired or disposed of during the
year are included in the consolidated statement of comprehensive
income from the effective date of acquisition or up to the
effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial
statements of the subsidiary to bring the accounting policies used
into line with those used by the Group.
All intra-Group transactions, balances, income and expenses are
eliminated on consolidation.
Exceptional and other items
Exceptional items are material items of income or expense which,
because of their nature and the expected frequency of the events
giving rise to them, merit separate disclosure.
Other items relate to the amortisation of acquired intangible
assets and fair value movements on foreign exchange hedging.
The separate presentation of exceptional and other items enables
the users of the accounts to better understand the elements of
trading performance during the year and hence to better assess
trends in that performance.
Goodwill
Goodwill arising on consolidation represents the excess of the
cost of acquisition over the Group's interest in the fair value of
the identifiable assets and liabilities of a subsidiary, associate
or jointly controlled entity at the date of acquisition. Goodwill
is initially recognised as an asset at cost and is subsequently
measured at cost less any accumulated impairment losses. Goodwill
which is recognised as an asset is reviewed for impairment at least
annually. Any impairment is recognised immediately in comprehensive
income and is not subsequently reversed.
For the purpose of impairment testing, goodwill is allocated to
each of the Group's cash-generating units ("CGUs") expected to
benefit from the synergies of the combination. CGUs to which
goodwill has been allocated are tested for impairment annually, or
more frequently when there is an indication that the CGU may be
impaired. If the recoverable amount of the CGU is less than its
carrying amount, the impairment loss is allocated first to reduce
the carrying amount of any goodwill allocated to the unit and then
to the other assets of the CGU pro rata on the basis of the
carrying amount of each asset in the CGU. An impairment loss
recognised for goodwill is not reversed in a subsequent period.
On disposal of a subsidiary, associate or jointly controlled
entity, the attributable amount of goodwill is included in the
determination of the profit or loss on disposal.
Intangible assets
The Group recognises intangible assets at cost less accumulated
amortisation and impairment losses. Intangible assets arise both as
a result of applying IFRS 3 which requires the separate recognition
of intangible assets from goodwill on all business combinations
from 1(st) January 2004, and from the purchase of software (that is
separable from any associated hardware), and development machinery
and from research and development (see below).
Intangible assets are amortised on a straight-line basis over
their useful economic lives as follows:
Customer relationships 10 years
Brands 15 years
Software Estimated useful life, normally 2-4
years
New product development costs & Estimated economic life, normally
marketing authorisations 5-7 years
Research and development costs
Expenditure on research activities, undertaken with the prospect
of gaining new scientific or technical knowledge and understanding,
is recognised as an expense in the year in which it is
incurred.
An internally generated intangible asset arising from the
Group's new product development is recognised only if all of the
following conditions are met:
-- an asset is created that can be identified (such as a new pharmaceutical product);
-- it is probable that the asset created will generate future economic benefits; and
-- the development cost of the asset can be measured reliably.
Internally generated intangible assets are amortised on a
straight-line basis over their estimated economic lives. Where no
internally generated intangible asset can be recognised,
development expenditure is recognised as an expense in the year in
which it is incurred.
Revenue recognition
Revenue is measured at the fair value of the consideration
received or receivable and represents amounts receivable for goods
and services provided in the normal course of business, net of
discounts, VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the risks and
rewards of ownership are transferred which is generally when goods
are delivered.
(MORE TO FOLLOW) Dow Jones Newswires
October 14, 2015 02:00 ET (06:00 GMT)
Income received in relation to long-term service contracts is
deferred and subsequently recognised over the life of the relevant
contracts. Further details are contained in note 21.
Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial
asset to that asset's net carrying value.
Leasing
Leases are classified as finance leases whenever the terms of
the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as
operating leases.
The Group as lessee
Rentals payable under operating leases are charged to income on
a straight-line basis over the term of the relevant lease.
Retirement benefit costs Payments to defined contribution
retirement benefit schemes are charged as an expense as they fall
due. Payments made to state-managed retirement benefit schemes are
dealt with as payments to defined contribution schemes where the
Group's obligations under the schemes are equivalent to those
arising in a defined contribution retirement benefit scheme.
Foreign currencies
In preparing the financial statements of the individual
companies, transactions in currencies other than the entity's
functional currency (foreign currencies) are recorded at the rates
of exchange prevailing on the dates of the transactions. At each
balance sheet date, monetary assets and liabilities that are
denominated in foreign currencies are retranslated at the rates
prevailing on the balance sheet date. Non-monetary items carried at
fair value that are denominated in foreign currencies are
translated at the rates prevailing at the date when the fair value
was determined. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary
items, and on the retranslation of monetary items, are included in
comprehensive income for the year.
Segment reporting
An operating segment is a component of the Group that engages in
business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to
transaction with any of the Group's other components. An operating
segment's operating results are reviewed regularly by the Board to
make decisions about resources to be allocated to the segment and
assess its performance, and for which discrete financial
information is available.
Inventories
Inventories are stated at the lower of cost and net realisable
value. Cost comprises direct materials and where applicable, direct
labour costs and those overheads that have been incurred in
bringing the inventories to their present location and condition.
Cost is calculated using the first-in, first-out principle. Net
realisable value represents the estimated selling price less all
estimated costs of completion and costs to be incurred in
marketing, selling and distribution.
Dividends
Dividends paid are recognised within the Statement of Changes in
Equity only when an obligation to pay the dividend arises prior to
the year end.
Share-based payments
The Group issues equity-settled share-based payments to certain
employees. Equity-settled share-based payments are measured at fair
value (excluding the effect of non market-based vesting conditions)
at the date of grant. The fair value determined at the grant date
of such equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Group's
estimate of shares that will eventually vest and adjusted for the
effect of non market-based vesting conditions (with a corresponding
movement in equity).
Fair value is measured by use of the Black-Scholes model. The
expected life used in the model has been adjusted, based on
management's best estimate, for the effects of non-transferability,
exercise restrictions, and behavioural considerations.
The fair value of the shares issued under the new Long Term
Incentive Plan were valued on a discounted cash flow basis in
conjunction with a third party valuation specialist.
Taxation
The tax expense represents the sum of the tax currently payable
and deferred tax.
The tax currently payable is based on taxable profit for the
year. Taxable profit differs from net profit as reported in the
statement of comprehensive income because it excludes items of
income or expense that are taxable or deductible in other years and
it further excludes items that are never taxable or deductible. The
Group's liability for current tax is calculated using tax rates
that have been enacted or substantively enacted by the balance
sheet date.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit, and is accounted for using the
balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which
deductible temporary differences can be utilised. Such assets and
liabilities are not recognised if the temporary difference arises
from the initial recognition of goodwill or from the initial
recognition (other than in a business combination) of other assets
and liabilities in a transaction that affects neither the tax
profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow
all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset is
realised. Deferred tax is charged or credited in the statement of
comprehensive income, except when it relates to items charged or
credited directly to equity, in which case the deferred tax is also
dealt with in equity.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied
by the same taxation authority and the Group intends to settle its
current tax assets and liabilities on a net basis.
Property, plant and equipment
Land and buildings and other assets held for use in the
production or supply of goods and services or for administrative
purposes, fixtures and equipment are stated at cost less
accumulated depreciation and any recognised impairment loss.
Other than for land, which is not depreciated, depreciation is
charged so as to write off the cost of assets, less their estimated
residual value, over their estimated useful lives, as follows:
Straight-line
Leasehold improvements 10 years
Plant and equipment 4-7 years
Office furniture and equipment 3-5 years
The gain or loss arising on the disposal or retirement of an
asset is determined as the difference between the net sales
proceeds and the carrying amount of the asset and is recognised in
the statement of comprehensive income as incurred.
Provisions
Provisions are recognised when the Group has a present
obligation as a result of a past event, and it is probable that the
Group will be required to settle that obligation. Provisions are
measured at the Directors' best estimate of the expenditure
required to settle the obligation outstanding at the balance sheet
date, and are discounted to present value where the effect is
material.
Impairment of tangible and intangible assets excluding
goodwill
At each balance sheet date, the Group reviews the carrying
amounts of its tangible and intangible assets to determine whether
there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent
of the impairment loss (if any). Where the asset does not generate
cash flows that are independent from other assets, the Group
estimates the recoverable amount of the cash-generating unit (CGU)
to which the asset belongs. An intangible asset with an indefinite
useful life is tested for impairment annually and whenever there is
an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to
sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been
adjusted.
If the recoverable amount of an asset (CGU) is estimated to be
less than its carrying amount, the carrying amount of the asset
(CGU) is reduced to its recoverable amount. An impairment loss is
recognised as an expense immediately.
Where an impairment loss subsequently reverses, the carrying
amount of the asset (CGU) is increased to the revised estimate of
its recoverable amount, but so that the increased carrying amount
does not exceed the carrying amount that would have been determined
had no impairment loss been recognised for the asset (CGU) in prior
years. A reversal of an impairment loss is recognised as income
immediately.
Financial instruments
Financial assets and financial liabilities are recognised in the
Group's balance sheet when the Group becomes a party to the
contractual provisions of the instrument.
Trade receivables
(MORE TO FOLLOW) Dow Jones Newswires
October 14, 2015 02:00 ET (06:00 GMT)
Trade receivables are measured at initial recognition at fair
value, and are subsequently measured at amortised cost using the
effective interest rate method. Appropriate allowances for
estimated irrecoverable amounts are recognised in comprehensive
income when there is objective evidence that the asset is impaired.
The allowance recognised is measured as the difference between the
asset's carrying amount and the present value of estimated future
cash flows discounted at the effective interest rate computed at
initial recognition.
Investments
Investments in Group companies are stated at cost less
provisions for impairment losses.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits
repayable on demand, and other short-term highly liquid investments
that are readily convertible to a known amount of cash and are
subject to an insignificant risk of changes in value.
Financial liabilities and equity
Financial liabilities and equity instruments are classified
according to the substance of the contractual arrangements entered
into. An equity instrument is any contract that evidences a
residual interest in the assets of the Group after deducting all of
its liabilities.
Trade payables
Trade payables are initially measured at fair value, and are
subsequently measured at amortised cost, using the effective
interest rate method.
3. Critical Accounting Judgements and Key Sources of Estimation
Uncertainty
Critical judgements in applying the Group's accounting
policies
In the process of applying the Group's accounting policies,
which are described in note 2, management has made the following
judgements that have the most significant effect on the amounts
recognised in the financial statements (apart from those involving
estimations, which are dealt with below).
Capitalised new product development expenditure
It is the Group's policy, where the relevant criteria of IAS 38
"Intangible Assets" are met, to capitalise new product development
expenditure and to amortise this expenditure over the estimated
economic life of the asset (product). Judgement is required when
assessing the technical and commercial feasibility of new product
development projects including whether regulatory approval will
ultimately be achieved.
Capitalised software expenditure
The Group has historically capitalised software projects and
developments. Expenditure on a bespoke web based system, designed
to facilitate online ordering of its products and services, is
currently capitalised in the Group's financial statements as the
Directors have adjudged it to meet the relevant criteria.
The rate of depreciation on capitalised software is set so as to
reflect the pattern of usage and the level of pace of change within
the global information technology market.
Key sources of estimation uncertainty
Impairment of non-current assets
Determining whether a non-current asset is impaired requires an
estimation of the "value in use" and/or the "fair value less costs
to sell" of the cash-generating units ("CGUs") to which the
non-current asset has been allocated. The value in use calculation
requires an estimate of the future cash flows expected to arise
from the CGU and a suitable discount rate in order to calculate
present value. The key assumptions for these value in use
calculations are those regarding discount rates, growth rates and
expected changes to selling prices and direct costs. The Directors
estimate discount rates using pre-tax rates that reflect current
market assessments of the time value of money and the risks
specific to the individual CGU. In the current year the Directors
estimated the applicable rate to be 11.1% (2014: 10.2%). The
Directors' sensitivity analysis indicates significant headroom to
the carrying value of the CGU when taking into account a reasonably
possible change in any one of the key assumptions used in the value
in use calculations.
The Group prepares cash flow forecasts derived from the most
recent financial budgets and projections approved by management for
the next five years, thereafter assuming an estimated growth rate
of 2% (2014: 2%). The growth rates for the five year period are
based on current performance of the existing product portfolio and
the estimated contribution from the Group's new product development
pipeline. The Directors believe that the long-term growth rate does
not exceed the average long-term growth rate for the UK
economy.
Impairment of slow-moving and obsolete inventory
The Group performs regular stock holding reviews, in conjunction
with sales and market information, to help determine any
slow-moving or obsolete lines. Where identified, adequate provision
is made in the financial statements for writing down or writing off
the value of such lines in order to reflect the realisable value of
its stock.
4. Exceptional and Other Items
2015 2014
Note GBP'000 GBP'000
------------------------------------------------- ---- -------- --------
Amortisation of acquired intangible assets 14 119 119
Supplier legal dispute - dividend received (9) -
Interest rate swap refund (18) -
Fair value movements on foreign currency hedging 9 35 38
------------------------------------------------- ---- -------- --------
Total exceptional and other items 127 157
------------------------------------------------- ---- -------- --------
The amortisation charge totalling GBP119,000 (2014: GBP119,000)
relates to brand and customer relationship intangible assets
recognised on the acquisition of Animalcare Ltd in January
2008.
5. Revenue and Operating Segments
IFRS 8 requires operating segments to be identified on the basis
of internal reports about components of the Group that are
regularly reviewed by the Chief Operating Decision Maker to
allocate resources and assess performance. The Chief Operating
Decision Maker is considered to be the Board of Directors of
Animalcare Group plc. Performance assessment is primarily based on
underlying operating profit and cash generation.
The Group solely comprises one reportable segment, being
Animalcare.
Animalcare Animalcare
2015 2014
Note GBP'000 GBP'000
---------------------------- ---- ---------- ----------
Revenue 13,536 12,881
---------------------------- ---- ---------- ----------
Gross Profit 7,573 7,142
---------------------------- ---- ---------- ----------
Underlying Operating Profit 3,110 2,802
Other Items 4 (119) (119)
Exceptional items 4 9 -
---------------------------- ---- ---------- ----------
Operating Profit 3,000 2,683
Finance income 9 27 27
Finance expense 9 (17) (38)
---------------------------- ---- ---------- ----------
Profit before tax 3,010 2,672
---------------------------- ---- ---------- ----------
Animalcare Animalcare
2015 2014
Note GBP'000 GBP'000
---------------------------------------- ----- ---------- ----------
Products and Services
Licensed Veterinary Medicines 8,579 7,883
Companion Animal Identification 2,309 2,418
Animal Welfare 2,648 2,580
---------------------------------------- ----- ---------- ----------
13,536 12,881
---------------------------------------- ----- ---------- ----------
Other information
---------------------------------------- ----- ---------- ----------
Intangible asset additions 14 812 199
---------------------------------------- ----- ---------- ----------
Property, plant and equipment additions 15 7 32
---------------------------------------- ----- ---------- ----------
Depreciation and amortisation 14,15 432 479
---------------------------------------- ----- ---------- ----------
Consolidated assets 24,474 22,525
---------------------------------------- ----- ---------- ----------
Consolidated liabilities (3,483) (3,072)
---------------------------------------- ----- ---------- ----------
Consolidated net assets 20,991 19,453
---------------------------------------- ----- ---------- ----------
2015 2014
GBP'000 GBP'000
---------------------------- -------- --------
Key customers
Number 3 3
---------------------------- -------- --------
Percentage of total revenue 91% 82%
---------------------------- -------- --------
Key customers, all within the Animalcare segment, are those
responsible for 10% or more of segmental revenue.
2015 2014
GBP'000 GBP'000
------------------------- -------- --------
Geographical market
United Kingdom 12,573 11,557
Europe and Rest of World 963 1,324
------------------------- -------- --------
13,536 12,881
------------------------- -------- --------
(MORE TO FOLLOW) Dow Jones Newswires
October 14, 2015 02:00 ET (06:00 GMT)
All the Group assets are wholly located in the United Kingdom
and accordingly no geographical analysis of assets and liabilities
is presented.
An analysis of total Group revenue is as follows:
2015 2014
GBP'000 GBP'000
----------------------------------- -------- --------
Revenue from sale of goods 12,590 11,951
Revenue from provision of services 946 930
----------------------------------- -------- --------
13,536 12,881
Finance income 27 27
----------------------------------- -------- --------
13,563 12,908
----------------------------------- -------- --------
6. Total Comprehensive Income for the Year
2015 2014
GBP'000 GBP'000
---------------------------------------------------------------------------- -------- --------
Total comprehensive income for the year has been arrived at after charging:
Cost of inventories recognised as expense 5,831 5,639
Depreciation of tangible assets 73 69
Amortisation of intangible assets 359 410
Research and development 143 260
Operating lease rentals 199 187
Foreign exchange losses 1 21
Increase in provision for receivables - 9
Increase in provision for inventories 23 34
---------------------------------------------------------------------------- -------- --------
The above items are those charged to total comprehensive income
only. Full details on items charged/(credited) to exceptional and
other items are contained in note 4.
The analysis of remuneration paid to the Company's auditor is as
follows:
2015 2014
GBP'000 GBP'000
--------------------------------------------------------------------- -------- --------
Fees payable to the Company's auditor for the audit of the Company's
annual accounts 13 12
The audit of the Company's subsidiaries pursuant to legislation 20 20
--------------------------------------------------------------------- -------- --------
Total audit fees 33 32
--------------------------------------------------------------------- -------- --------
Tax services 11 16
Other services 16 44
Total non-audit fees 27 60
--------------------------------------------------------------------- -------- --------
Total auditors' remuneration 60 92
--------------------------------------------------------------------- -------- --------
7. Directors' Remuneration and Interests
Emoluments
The various elements of remuneration received by each Director
were as follows:
Compensation
Company pension for
Salary Bonus contributions Benefits loss of office Total
Year ended 30(th) June 2015 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- -------- -------- --------------- -------- --------------- --------
J S Lambert* 34 - - - - 34
Lord Downshire* 23 - - 1 - 24
R B Harding* 23 - - - - 23
Dr I D Menneer 140 16 17 8 - 181
C J Brewster 102 11 12 6 - 131
---------------------------- -------- -------- --------------- -------- --------------- --------
Total 321 27 29 15 - 393
---------------------------- -------- -------- --------------- -------- --------------- --------
Year ended 30(th) June 2014
------------------------------- --- ---
J S Lambert* 33 - - - - 33
Lord Downshire* 22 - - 2 - 24
R B Harding* 22 - - - - 22
S M Wildridge (resigned 31(st)
October 2013) 30 34 - - 66 130
Dr I D Menneer 135 23 16 7 - 181
C J Brewster 102 16 11 1 - 130
------------------------------- --- ---
Total 344 73 27 10 66 520
------------------------------- --- ---
* Indicates Non-Executive Directors.
Mr George Gunn was appointed to the Board as a Non-Executive
Director on 9(th) February 2015 and subsequently resigned on 2(nd)
June 2015. Mr Gunn received no remuneration during this period.
All Company pension contributions relate to defined contribution
pension schemes. Benefits consist of company car and private
medical insurance. The compensation for loss of office in relation
to S M Wildridge was settled on 31(st) October 2013.
Share options
The Directors had the following beneficial options:
I D Menneer
Scheme SAYE EMI EMI EMI Unapproved SAYE Unapproved SAYE Total
------------------------ -------- -------- ------- --------- ---------- ------- ---------- --------- -------
Exercise Price GBP1.34 GBP1.675 GBP1.30 GBP1.325 GBP1.40 GBP1.03 GBP1.415 GBP1.05
Date of Grant 4(th) 14(th) 2(nd) 20(th) 21(st) 22(nd) 20(th) 28(th)
October October August November February May June November
2011 2011 2012 2012 2013 2013 2013 2014
Outstanding at 30(th)
June 2014 3,358 60,000 60,000 50,000 90,000 4,377 90,000 - 357,735
Granted during the year - - - - - - - 5,142 5,142
Exercised during the
year (3,358) - - - - - - - (3,358)
------------------------ -------- -------- ------- --------- ---------- ------- ---------- --------- -------
Outstanding at 30(th)
June 2015 - 60,000 60,000 50,000 90,000 4,377 90,000 5,142 359,519
------------------------ -------- -------- ------- --------- ---------- ------- ---------- --------- -------
C J Brewster
Scheme EMI EMI SAYE EMI SAYE Total
-------------------------------- ------- ------- ------- -------- --------- -------
Exercise Price GBP1.30 GBP1.30 GBP1.03 GBP1.415 GBP1.05
Date of Grant 22(nd) 2(nd) 22(nd) 20(th) 28(th)
June August May June November
2012 2012 2013 2013 2014
-------------------------------- ------- ------- ------- -------- --------- -------
Outstanding at 30(th) June 2014 30,000 30,000 8,754 40,000 - 108,754
-------------------------------- ------- ------- ------- -------- --------- -------
Granted during the year - - - - 8,571 8,571
-------------------------------- ------- ------- ------- -------- --------- -------
Outstanding at 30(th) June 2015 30,000 30,000 8,754 40,000 8,571 117,325
-------------------------------- ------- ------- ------- -------- --------- -------
The Directors' interests in the shares of the Company as at
30(th) June are set out below:
2015 2014
--------------- --------- ----------
Ordinary Ordinary
shares shares of
of 20p 20p
--------------- --------- ----------
J S Lambert 1,413,691 1,413,691
Lord Downshire 1,109,583 1,109,583
I D Menneer 17,739 14,381
C J Brewster 4,079 4,079
--------------- --------- ----------
In addition to the above, Lord Downshire had a non-beneficial
interest in 310,446 shares.
Long Term Incentive Plan (LTIP)
The Animalcare Group plc LTIP was introduced in June 2014 to
provide an effective mechanism for senior executives to participate
in the Company's equity at a meaningful level, aligning their
interests with those of shareholders.
The Directors' interests in the LTIP, which was implemented via
a subscription for growth shares in the capital of Animalcare Ltd,
a subsidiary of the Company, are as follows:
(MORE TO FOLLOW) Dow Jones Newswires
October 14, 2015 02:00 ET (06:00 GMT)
-- Iain Menneer - 31,955 A Ordinary Shares of GBP1.00 each ("A
Shares") for a total cash subscription of GBP31,955, representing
5.2% of Animalcare Ltd's issued share capital; and
-- Chris Brewster - 19,173 A Shares, representing 3% of
Animalcare Ltd's issued share capital and 11,800 B Ordinary Shares
of GBP1.00 each ("B Shares"), representing a further 2% of
Animalcare Ltd's issued share capital, for a total cash
subscription of GBP30,973.
Dr Menneer and Mr Brewster have the right to sell their A Shares
to the Company at any time after 27(th) June 2017 in exchange for
Ordinary Shares of 20 pence each in the Company ("Ordinary
Shares"). The rights of Dr Menneer and Mr Brewster to sell their A
Shares are subject to, amongst other provisions, the Company having
a market capitalisation in excess of GBP39.0m ("the Hurdle") at the
time of sale. The Hurdle was determined by Animalcare's
Remuneration Committee and broadly represented a 20% premium to the
Company's market capitalisation on 27(th) June 2014.
Each holder of A Shares would, on a sale of his entire holding
to the Company, be entitled to receive Ordinary Shares representing
a percentage of the increase in the Company's market capitalisation
above the Hurdle; being 5% for Dr Menneer and 3% for Mr
Brewster.
The B Shares are not entitled to participate in any increase in
the value of the Company above the Hurdle but can be exchanged for
Ordinary Shares of an equal value at any time after 27(th) June
2017.
Further details of the Plan, including the Hurdle, anti-dilution
and other provisions, are set out in Animalcare Ltd's articles of
association, which is available within the Investors section
(constitutional documents) of the Company's website at
http://www.animalcaregroup.co.uk
8. Staff Costs
2015 2014
--------------------------------------------------------------------- ---- ----
Number of employees
The average monthly number of employees (including Directors) during
the year was:
Production and distribution 4 4
Selling and administration 56 53
--------------------------------------------------------------------- ---- ----
60 57
--------------------------------------------------------------------- ---- ----
2015 2014
GBP'000 GBP'000
---------------------- -------- --------
Related costs
Wages and salaries 2,024 1,820
Social security costs 187 166
Other pension costs 78 89
---------------------- -------- --------
2,289 2,075
---------------------- -------- --------
9. Finance Costs and Finance Income
2015 2014
GBP'000 GBP'000
-------------------------------------------- -------- --------
Fair value losses on financial instruments* 35 38
Interest rate swap refund (18) -
-------------------------------------------- -------- --------
Finance costs 17 38
-------------------------------------------- -------- --------
Other net finance income:
Interest income on bank deposits (27) (27)
-------------------------------------------- -------- --------
Finance income (27) (27)
-------------------------------------------- -------- --------
Net finance (income)/costs (10) 11
-------------------------------------------- -------- --------
* Finance gains and losses arising from derivatives held at fair
value through profit and loss relate to fair value movements on the
Group's foreign exchange hedges. These gains and losses are
included within "other items" on the face of the statement of
comprehensive income.
10. Income Tax Expense
2015 2014
Note GBP'000 GBP'000
---------------------------------------------------------------- ---- -------- --------
The income tax expense comprises:
Current tax expense 601 690
Adjustment in the current year in relation to prior years (143) (105)
---------------------------------------------------------------- ---- -------- --------
458 585
The deferred tax (credit)/expense comprises:
Origination and reversal of temporary differences 22 (99) (70)
Adjustment in the current year in relation to prior years 22 117 20
18 (50)
---------------------------------------------------------------- ---- -------- --------
Total tax expense for the year 476 535
---------------------------------------------------------------- ---- -------- --------
The total tax charge can be reconciled to the accounting profit
as follows:
Total comprehensive income for the year 2,534 2,137
Total tax expense 476 535
Profit before tax 3,010 2,672
Income tax calculated at 20.75% (2014: 22.5%) 625 601
---------------------------------------------------------------- ---- -------- --------
Effect of expenses not deductible 42 55
Effect of share-based deductions (88) (13)
Innovation related tax credits (77) -
Change in UK tax rate - (23)
Effect of adjustments in respect of prior years (26) (85)
---------------------------------------------------------------- ---- -------- --------
476 535
---------------------------------------------------------------- ---- -------- --------
The tax credit of GBP26,000 (2014: GBP35,000) shown within
"exceptional and other items" on the face of the statement of
comprehensive income, which forms part of the overall tax charge of
GBP476,000 (2014: GBP535,000) relates to the items analysed in note
4.
The prior year current tax credits in respect of both 2015 and
2014 primarily relate to research and development tax credits. The
prior year deferred tax charge in 2015 of GBP117,000 relates to the
first time recognition of deferred tax in relation to capitalised
development costs.
The Budget on 8(th) July 2015 announced that the UK corporation
tax rate will reduce to 19% by 2017. The change in rates was not
substantively enacted at the balance sheet date and therefore has
not been reflected in the tax rates used for deferred tax purposes.
The future rate reductions will affect the Group's future current
tax charges.
11. Dividends
2015 2014
GBP'000 GBP'000
------------------------------------------------------ -------- --------
Ordinary final dividend paid in respect of prior year 839 788
Ordinary interim dividend paid 378 315
------------------------------------------------------ -------- --------
1,217 1,103
------------------------------------------------------ -------- --------
The final dividend paid during the year ended 30(th) June 2015
was 4.0 pence per share (2014: 3.8 pence per share). The interim
dividend paid during the year ended 30(th) June 2015 was 1.8 pence
per share (2014: 1.5 pence per share).
The proposed final dividend of 4.3 pence per share, which is
subject to approval of shareholders at the Annual General Meeting
results in a total dividend for the year of 6.1 pence per share.
The proposed dividend has not been included as a liability as at
30(th) June 2015, in accordance with IAS 10 "Events After the
Balance Sheet Date".
12. Earnings per Share
Basic earnings per share amounts are calculated by dividing the
total comprehensive income for the year attributable to ordinary
equity holders of the Company by the weighted average number of
fully paid ordinary shares outstanding during the year.
The following income and share data was used in the basic
earnings per share computations:
Underlying Underlying
earnings earnings
before before
exceptional exceptional
and and Total Total
other items other items earnings earnings
2015 2014 2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------------------------- ------------ ------------ ---------- ----------
Total comprehensive income attributable to equity
(MORE TO FOLLOW) Dow Jones Newswires
October 14, 2015 02:00 ET (06:00 GMT)
holders of the Company 2,634 2,259 2,534 2,137
-------------------------------------------------- ------------ ------------ ---------- ----------
2015 2014 2015 2014
No. No. No. No.
---------------------------------------- ---------- ---------- ---------- ----------
Basic weighted average number of shares 20,982,367 20,824,931 20,982,367 20,824,931
Dilutive potential ordinary shares 123,127 126,980 123,127 126,980
---------------------------------------- ---------- ---------- ---------- ----------
21,105,494 20,951,911 21,105,494 20,951,911
---------------------------------------- ---------- ---------- ---------- ----------
Earnings per share:
Basic 12.6p 10.8p 12.1p 10.3p
Fully diluted 12.5p 10.8p 12.0p 10.2p
13. Goodwill
Group
GBP'000
--------------------------------------------------------- --------
Cost
At 1(st) July 2013, 1(st) July 2014 and 30(th) June 2015 12,711
--------------------------------------------------------- --------
Accumulated impairment losses
At 1(st) July 2013, 1(st) July 2014 and 30(th) June 2015 -
--------------------------------------------------------- --------
Net book value
At 30(th) June 2015 and 30(th) June 2014 12,711
--------------------------------------------------------- --------
The carrying amount of Group goodwill is allocated to the
Group's sole cash-generating unit ("CGU"), being the Companion
Animal segment.
The recoverable amount of goodwill is determined from value in
use calculations.
The Group prepares cash flow forecasts derived from the most
recent financial budgets and projections approved by management for
the next five years and thereafter assuming an estimated long-term
annual growth rate of 2.0% (2014: 2.0%).
The financial budgets and projections are based on past
experience and actual operating results. The growth rates for the
five year period are based on current performance of the existing
product portfolio and the estimated contribution from the Group's
new product development pipeline. The Directors believe that the
long-term growth rate does not exceed the average long-term growth
rate for the UK economy, the principal geographic area in which
Animalcare operates.
The Directors estimate the discount rates using the post-tax
rates that reflect the current market assessments of the time value
of money and the risks specific to the cash-generating unit. In the
current year the Directors estimated the applicable pre-tax rate to
be 11.1% (2014: 10.2%).
The Directors modelled a range of different scenarios by
applying sensitivities to both the cash flow assumptions and the
discount rate. Based on this sensitivity analysis there is
significant headroom between the value in use calculation and the
carrying value of the CGU.
14. Other Intangible Assets
Acquired
brands and New product
customer development Capitalised
relationships costs software Total
Group GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------------- ------------ ----------- --------
Cost
At 1(st) July 2013 1,361 1,491 122 2,974
Additions - 156 43 199
-------------------- -------------- ------------ ----------- --------
At 30(th) June 2014 1,361 1,647 165 3,173
Additions - 768 44 812
Disposals - - (31) (31)
-------------------- -------------- ------------ ----------- --------
At 30(th) June 2015 1,361 2,415 178 3,954
-------------------- -------------- ------------ ----------- --------
Amortisation
At 1(st) July 2013 653 737 46 1,436
Charge for the year 119 253 38 410
At 30(th) June 2014 772 990 84 1,846
Charge for the year 119 195 45 359
Disposals - - (31) (31)
-------------------- -------------- ------------ ----------- --------
At 30(th) June 2015 891 1,185 98 2,174
-------------------- -------------- ------------ ----------- --------
Carrying value
At 30(th) June 2015 470 1,230 80 1,780
-------------------- -------------- ------------ ----------- --------
At 30(th) June 2014 589 657 81 1,327
-------------------- -------------- ------------ ----------- --------
Veterinary medicine product development costs are amortised over
four to seven years, acquired brands are amortised over 15 years
and acquired customer relationships are amortised over ten years.
The amortisation period for capitalised software, which principally
relates to the bespoke Anibase pet database, is four years.
Capitalised
software Total
Company GBP'000 GBP'000
-------------------- ----------- --------
Cost
At 1(st) July 2014 - -
Additions 7 7
-------------------- ----------- --------
At 30(th) June 2015 7 7
-------------------- ----------- --------
Amortisation
At 1(st) July 2014 - -
Charge for the year 1 1
-------------------- ----------- --------
Carrying value
At 30(th) June 2015 6 6
-------------------- ----------- --------
At 30th June 2014 - -
-------------------- ----------- --------
15. Property, Plant And Equipment
Office
furniture
Leasehold Plant and and
improvements equipment equipment Total
Group GBP'000 GBP'000 GBP'000 GBP'000
-------------------- ------------- ---------- ---------- --------
Cost
At 1(st) July 2013 187 107 263 557
Additions - 27 5 32
Disposals (3) - - (3)
-------------------- ------------- ---------- ---------- --------
At 1(st) July 2014 184 134 268 586
Additions - 2 5 7
Disposals - (17) (129) (146)
-------------------- ------------- ---------- ---------- --------
At 30(th) June 2015 184 119 144 447
-------------------- ------------- ---------- ---------- --------
Depreciation
At 1(st) July 2013 3 42 100 145
Charge for the year 19 14 36 69
-------------------- ------------- ---------- ---------- --------
At 1(st) July 2014 22 56 136 214
Charge for the year 19 18 36 73
Disposals - (17) (129) (146)
-------------------- ------------- ---------- ---------- --------
At 30(th) June 2015 41 57 43 141
-------------------- ------------- ---------- ---------- --------
Net book value
At 30(th) June 2015 143 62 101 306
-------------------- ------------- ---------- ---------- --------
At 30(th) June 2014 162 78 132 372
-------------------- ------------- ---------- ---------- --------
16. Investments in Subsidiaries
Subsidiary undertakings
Company
2015 2014
GBP'000 GBP'000
---------------------------------------------- -------- --------
Cost and net book value
At 1(st) July 2013, 2014 and 30(th) June 2015 14,361 14,361
---------------------------------------------- -------- --------
The sole subsidiary undertaking of the Company is detailed
below.
Country of
registration
or Shares held
incorporation Class %
--------------- --------------- --------- -----------
Animalcare Ltd England Ordinary 90
The principal activity of this undertaking for the last
financial year was the sale of companion animal products and
related services.
17. Inventories
Group
2015 2014
GBP'000 GBP'000
------------------------------------ -------- --------
Finished goods and goods for resale 1,653 2,420
------------------------------------ -------- --------
In the Directors' opinion, the replacement cost of inventories
is not materially different from their balance sheet value.
18. Other Financial Assets
(MORE TO FOLLOW) Dow Jones Newswires
October 14, 2015 02:00 ET (06:00 GMT)
Trade and other receivables
Group Company
2015 2014 2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------- -------- -------- -------- --------
Trade receivables 1,924 1,577 - -
Amounts receivable from subsidiaries - - - -
Corporation tax - Group relief - - 217 129
Other receivables 6 4 6 4
Prepayments and accrued income 317 302 15 11
------------------------------------- -------- -------- -------- --------
2,247 1,883 238 144
------------------------------------- -------- -------- -------- --------
The Directors consider that the carrying amount of trade and
other receivables approximates to their fair value.
Movement in allowance for doubtful debts
Group Company
2015 2014 2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- -------- -------- -------- --------
Balance at 1(st) July 15 6 - -
Impairment losses recognised - 9 - -
----------------------------- -------- -------- -------- --------
Balance at 30(th) June 15 15 - -
----------------------------- -------- -------- -------- --------
Ageing of past due but not impaired receivables
Group
2015 2014
GBP'000 GBP'000
-------------------- -------- --------
1-30 days past due - 59
31-90 days past due 1 -
91 days and more - -
-------------------- -------- --------
1 59
-------------------- -------- --------
Cash and cash equivalents
Group Company
2015 2014 2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------- -------- -------- --------
Cash and cash equivalents 5,777 3,812 1,576 1,315
-------------------------- -------- -------- -------- --------
Cash and cash equivalents comprise cash and short-term bank
deposits with an original maturity of three months or less.
Credit risk
The Company's principal financial assets are bank balances and
cash, and trade and other receivables. The Company's credit risk is
primarily attributable to its trade receivables. The amounts
presented in the balance sheet are net of allowances for doubtful
receivables. An allowance for impairment is made where there is an
identified loss event which, based on previous experience, is
evidence of a reduction in the recoverability of the cash flows.
The allowance for doubtful debts represents the difference between
the carrying value of the specific trade receivables and the
present value of the expected recoverable amount. The average
credit period on sales of goods is 31 days (2014: 36 days). No
interest has been charged on overdue receivables.
19. Other Financial Liabilities
Group Company
2015 2014 2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------------- -------- -------- -------- --------
Trade payables 936 858 73 63
Amounts payable to subsidiaries - - 3,385 1,570
Other taxes and social security costs 450 226 46 40
Other creditors 386 299 18 15
Derivative financial instruments (see note 20) 18 28 - -
Accruals 396 195 4 40
----------------------------------------------- -------- -------- -------- --------
2,186 1,606 3,526 1,728
----------------------------------------------- -------- -------- -------- --------
The Directors consider that the carrying amount of trade and
other payables approximates to their fair value.
20. Financial Instruments
Capital and liquidity risk management
At 30(th) June the Group was contractually obliged to make
repayments of principal and payments of interest as detailed
below:
Within one
year More than
or on demand 1-2 years 3-5 years 5 years Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- ------------- --------- --------- --------- --------
2015
Trade and other payables 2,186 - - - 2,186
------------------------- ------------- --------- --------- --------- --------
2014
Trade and other payables 1,606 - - - 1,606
------------------------- ------------- --------- --------- --------- --------
Categories and Fair Value of Financial Instruments Carrying
value
2015 2014
GBP'000 GBP'000
------------------------------------------------------------------ -------- --------
Financial assets
Trade and other receivables (including cash and cash equivalents) 7,707 5,393
------------------------------------------------------------------ -------- --------
Financial liabilities
Trade and other payables (2,186) (1,606)
------------------------------------------------------------------ -------- --------
The fair values of the Group's financial assets and liabilities
are not materially different from their carrying values.
Foreign Currency Risk Management
The Group undertakes transactions denominated in foreign
currencies which gives rise to the risks associated with currency
exchange rate fluctuations. Exposures are managed by a combination
of matching foreign currency income and expenditure, maintaining
foreign currency deposits and the use of forward contracts. The
carrying value of the Group's foreign currency assets and
liabilities at the reporting date was:
Assets Liabilities
2015 2014 2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
---------- -------- -------- -------- --------
Euro 446 459 153 51
---------- -------- -------- -------- --------
US Dollar 264 34 - 65
---------- -------- -------- -------- --------
Foreign Currency Sensitivity Analysis
At 30(th) June 2015 the Group is mainly exposed to the Euro and
the US Dollar. The following table details the effect of a 10%
increase and decrease in the exchange rate of these currencies
against Sterling when applied to outstanding monetary items
denominated in foreign currency as at 30(th) June 2015. A positive
number indicates that an increase in profit would arise from a 10%
change in value of Sterling against these currencies, a negative
number indicates that a decrease would arise.
Strengthening Weakening
GBP'000 GBP'000
---------- ------------- ---------
Euro (27) 33
---------- ------------- ---------
US Dollar (24) 29
---------- ------------- ---------
Interest Rate Sensitivity Analysis
This sensitivity analysis was not performed as the Group had no
exposure to interest rates for either derivatives or non-derivative
instruments at the balance sheet date.
Forward Foreign Exchange Contracts
The Group had three (2014: four) open foreign exchange contracts
at 30(th) June 2015. The values are shown below:
2015 2014
GBP'000 GBP'000
---------------- -------- --------
Principal value 338 752
---------------- -------- --------
Fair value (18) (28)
---------------- -------- --------
Capital Management
In line with the disclosure requirements of IAS 1, "Presentation
of Financial Statements", the Company regards its capital as being
the issued share capital together with its banking facilities, used
to manage short-term working capital requirements. Note 23 to the
financial statements provides details regarding the Company's share
capital and movements in the period. There were no breaches of any
requirements with regard to any relevant conditions imposed by the
Company's Articles of Association during the periods under
review.
21. Deferred Income
(MORE TO FOLLOW) Dow Jones Newswires
October 14, 2015 02:00 ET (06:00 GMT)
Deferred income arises from certain services sold by the Group's
subsidiary Animalcare Ltd. In return for a single up-front payment,
Animalcare Ltd commits to a fixed term contract to provide certain
database, pet reunification and other support services to
customers. There is no contractual restriction on the amount of
times the customer makes use of the service. At the commencement of
the contract it is not possible to determine how many times the
customer will make use of the services, nor does historical
evidence provide indications of any future pattern of use. As such,
income is recognised evenly over the term of the contract,
currently eight years.
Movements in the Group's deferred income liabilities during the
current and prior reporting period are as follows:
2015 2014
GBP'000 GBP'000
------------------------------------------------- -------- --------
Balance at the beginning of the period 972 1,021
Income deferred to future periods 241 182
Release of income deferred from previous periods (255) (231)
------------------------------------------------- -------- --------
Balance at end of the period 958 972
------------------------------------------------- -------- --------
The deferred income liabilities fall due as follows:
2015 2014
GBP'000 GBP'000
---------------- -------- --------
Within one year 234 242
After one year 724 730
---------------- -------- --------
958 972
---------------- -------- --------
Income recognised during the year is set out below:
2015 2014
GBP'000 GBP'000
------------------------------------------------- -------- --------
Income received 227 195
Income deferred to future periods (241) (182)
Release of income deferred from previous periods 255 231
------------------------------------------------- -------- --------
Income recognised in the year 241 244
------------------------------------------------- -------- --------
22. Deferred Tax Liabilities
The following are the major components of the deferred tax
liabilities/(assets) recognised by the Group, and the movements
thereon, during the current and prior reporting period.
Property,
Plant and Share-based Intangible
Equipment payments Other fixed assets Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- ---------- ----------- -------- ------------- --------
Balance at 1(st) July 2013 27 (24) (7) 163 159
Charge/(credit) to income 14 (19) - (45) (50)
---------------------------- ---------- ----------- -------- ------------- --------
Balance at 30(th) June 2014 41 (43) (7) 118 109
Charge/(credit) to income (4) (111) (1) 134 18
---------------------------- ---------- ----------- -------- ------------- --------
Balance at 30(th) June 2015 37 (154) (8) 252 127
---------------------------- ---------- ----------- -------- ------------- --------
Deferred tax balances have been calculated at an effective rate
of 20%, being the substantively enacted rate at 30(th) June
2015.
The following are the major components of the deferred tax
assets recognised by the Company, and the movements thereon, during
the current and prior reporting period:
Accelerated
tax Share-based
depreciation payments Other Total
GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- ------------- ----------- -------- --------
Balance at 1(st) July 2013 (17) (13) (2) (32)
Charge/(credit) to income 5 (12) - (7)
---------------------------- ------------- ----------- -------- --------
Balance at 30(th) June 2014 (12) (25) (2) (39)
Charge/(credit) to income 3 (52) - (49)
---------------------------- ------------- ----------- -------- --------
At 30(th) June 2015 (9) (77) (2) (88)
---------------------------- ------------- ----------- -------- --------
Deferred tax balances have been calculated at an effective rate
of 20%, being the substantively enacted rate at 30(th) June
2015.
23. Share Capital
2015 2014
No. No.
--------------------------------------------------------------- ---------- ----------
Allotted, called up and fully paid ordinary shares of 20p each 21,019,636 20,960,204
--------------------------------------------------------------- ---------- ----------
2015 2014
GBP'000 GBP'000
--------------------------------------------------------------- -------- --------
Allotted, called up and fully paid ordinary shares of 20p each 4,204 4,192
--------------------------------------------------------------- -------- --------
During the year GBP11,886 (2014: GBP43,000) of ordinary shares
were issued for proceeds of GBP81,814 (2014: GBP242,125) resulting
in a share premium of GBP69,928 (2014: GBP199,125).
24. Operating Lease Arrangements
The Group as lessee
2015 2014
GBP'000 GBP'000
---------------------------------------------------------------------- -------- --------
Lease payments under operating leases recognised as an expense in the
year 199 187
---------------------------------------------------------------------- -------- --------
At the balance sheet date, the Group had outstanding commitments
for future minimum lease payments under non-cancellable operating
leases, which fall due as follows:
2015 2014
GBP'000 GBP'000
--------------------------------------- -------- --------
Within one year 168 162
In the second to fifth years inclusive 298 252
After five years 78 110
--------------------------------------- -------- --------
544 524
--------------------------------------- -------- --------
Operating lease payments principally represent rentals payable
by the Group for its office and warehouse properties and motor
vehicles.
25. Share-based Payments
During the year the Group operated the Animalcare Group plc
Executive Share Option Scheme, the Save As You Earn (SAYE) Share
Option Scheme and the new Long Term Incentive Plan as described
below:
Animalcare Group plc Executive Share Option Scheme
Under this scheme, options may be granted to certain Executives
and senior employees of the Group to subscribe for new shares in
the Company at a fixed price equal to the market value at the time
of grant. The options are exercisable three years after the date of
grant. Once vested, options must be exercised within six years of
the date of grant. The exercise of these options is not subject to
any performance criteria.
SAYE Option Scheme
This scheme is open to all UK employees to encourage share
ownership. Share options are granted at an option price fixed at a
20% discount to the market value at the start of the savings
period. The SAYE options vest and are exercisable three years after
the date of grant and must ordinarily be exercised within six
months of the completion of the relevant savings period.
Details of the movement in all share option schemes during the
year are as follows:
EMI SAYE Unapproved
Price Price Price
Options GBP Options GBP Options GBP
----------------------------------- -------- ----- -------- ----- ------- -----
Outstanding at beginning of year 560,000 1.413 112,172 1.084 180,000 1.408
Granted during the year 20,000 1.725 120,673 1.050 - -
Lapsed during the year (30,000) 1.355 (22,311) 1.218 - -
Exercised during the year (55,000) 1.380 (4,432) 1.340 - -
----------------------------------- -------- ----- -------- ----- ------- -----
Open at 30(th) June 2015 495,000 1.432 206,102 1.041 180,000 1.408
----------------------------------- -------- ----- -------- ----- ------- -----
Exercisable at the end of the year 90,000 1.55 - - - -
----------------------------------- -------- ----- -------- ----- ------- -----
(MORE TO FOLLOW) Dow Jones Newswires
October 14, 2015 02:00 ET (06:00 GMT)
Animalcare (LSE:ANCR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Animalcare (LSE:ANCR)
Historical Stock Chart
From Apr 2023 to Apr 2024
