TIDMANCR
RNS Number : 6546F
Animalcare Group PLC
24 February 2015
Animalcare Group plc
("Animalcare" or the "Group")
Half Yearly Report
Animalcare Group plc (AIM: ANCR), a leading supplier of
veterinary medicines, announces interim results for the six months
ended 31(st) December 2014 and confirms a solid first half to all
three areas of the business. Animalcare is made up of three product
groups: Licensed Veterinary Medicines, Companion Animal
Identification and Animal Welfare products.
Financial Highlights
6 months to 6 months to
31(st) Dec 31(st) Dec
2014 2013 % change
------------------------------- ----------- ----------- --------
Revenue GBP6.93m GBP6.46m +7.2%
------------------------------- ----------- ----------- --------
Underlying* EBITDA GBP1.93m GBP1.58m +22.2%
------------------------------- ----------- ----------- --------
Underlying* operating profit GBP1.79m GBP1.44m +24.7%
------------------------------- ----------- ----------- --------
Profit before tax GBP1.76m GBP1.38m +27.6%
------------------------------- ----------- ----------- --------
Basic underlying* earnings per
share 6.8p 5.5p +23.6%
------------------------------- ----------- ----------- --------
Interim dividend 1.8p 1.5p +20.0%
------------------------------- ----------- ----------- --------
Cash and cash equivalents GBP5.04m GBP3.64m +38.5%
------------------------------- ----------- ----------- --------
* Underlying measures are before the effect of exceptional and
other items. These are analysed in note 3.
Operational Highlights
-- Strong revenue growth from our Licensed Veterinary Medicines
group, up 10.6% to GBP4.40m (2013: GBP3.98m) in part due to a
non-recurring benefit from sales of Buprecare as a result of
competitor supply issues.
-- Companion Animal Identification group continued to perform
well, delivering revenue growth of 5.0% to GBP1.26m (2013:
GBP1.20m). Sales of both microchips and database services increased
in the period.
-- Continued focus on investment in our product development
pipeline, with expenditure weighted to the second half. Further
recruitment planned to expand the business development team and
support growth plans.
-- Cash generation in the period was stronger than expected,
with Group cash balances up GBP1.23m to GBP5.04m (2013:
GBP3.64m).
-- Interim dividend increased by 20% to 1.8 pence per share (2013: 1.5p per share).
James Lambert, Chairman of Animalcare Group plc, said: "I am
delighted to report a solid start to our financial year in all
three areas of the business. The Group remains on target to perform
in line with management expectations for the full year to 30(th)
June 2015. The Board is committed to its strategy to invest in
enhanced generic medicines that will deliver growth and protectable
revenue to the medium to long-term. I am extremely pleased to be
able to increase the interim dividend to 1.8 pence per share, given
the solid trading performance and strong financial position of the
Group."
Animalcare Group plc Tel: 01904 487 687
Iain Menneer, Chief Executive Officer
Chris Brewster, Chief Financial
Officer
Panmure Gordon (Nominated Adviser and Tel: 020 7886 2500
Broker)
Freddy Crossley/Peter Steel
Walbrook PR Ltd Tel: 020 7933 8780 or animalcare@walbrookpr.com
Paul McManus Mob: 07980 541 893
Lianne Cawthorne Mob: 07584 391 303
Chairman's Statement
I am delighted to report a solid first half in all three areas
of the business leading to an overall increase in sales of 7.2% to
GBP6.9m. The strategy to focus on both the Licensed Veterinary
Medicines and the Companion Animal Identification products and
services has delivered this result. This has flowed through to
basic underlying earnings per share of 6.8p (2013: 5.5p), a year on
year increase of over 19%.
The 10.6% growth in Licensed Veterinary Medicines revenue was
driven by organic growth and a one-off benefit from sales of
Buprecare, as a result of supply issues experienced by one of
competitors. This more than offset reduced sales of some of our
lower margin pharmaceuticals.
Sales in our Companion Animal Identification group generated
growth of 5.0% with a small increase in gross profit. The
commercial and political opportunities and threats that the
compulsory chipping of dogs in 2016 will bring to Animalcare are
much clearer now and I believe there should be modest benefits to
us.
Sales from our Animal Welfare Products group fell by 1.2% with a
small increase in gross margin, leaving the profitability broadly
flat year on year.
Operating cash flow growth was created by a general reduction in
stock, increased profits and a below originally planned investment
in new products.
As I stated in our 2014 Annual Report, we have gathered a strong
team and are increasing the level of investment in our Licensed
Veterinary Medicines new product development pipeline, which will
provide added benefits to both the veterinary practitioner and the
animals in their care. Progress is being made on projects in the
development pipeline with several new opportunities identified in
the period. An uplift in investment is expected in the second half
and in subsequent years.
I am very pleased to welcome Mr George Gunn on to the Board of
Animalcare. George joined the Board in February 2015 having stepped
down recently as Head of the Animal Health Division and from the
Executive Committee of Novartis AG on completion of the sale of
that division on 1(st) January 2015. He has extensive experience in
Animal Health Pharmaceuticals over a career that has spanned 30
years within the industry.
George will complement the skills of the existing Board members
and bring additional commercial and product development experience
to the team to help deliver our strategy.
Given the strong trading in the first half and the structural
improvements to the business, the Board remains confident about the
prospects and outcome for the full year and beyond.
James Lambert
Chairman
Business Review
Introduction
The Group delivered another solid trading performance during the
six month period ended 31(st) December 2014, building on the firm
foundations established during the previous financial year. This
performance resulted in a 7.2% increase in revenues to GBP6.93m
(2013: GBP6.46m) and a 24.7% increase in underlying operating
profit, our measure of trading performance before exceptional
items, to GBP1.79m (2013: GBP1.44m).
Our robust balance sheet and cash position continues to reflect
the highly cash generative nature of our operations, supported in
the first half by planned activity to reduce our inventory
levels.
Strategically, we continue to focus on delivering growth from
our current core business and our product development pipeline to
accelerate our organic expansion from 2016 onwards.
Our sustained trading performance and balance sheet strength
prompted the Board's to increase the dividend by 20% to 1.8 pence
per share (2013: 1.5 pence per share).
Operating results
6 months to 6 months to
Revenue 31(st) Dec 31(st) Dec
GBP'000 2014 2013 % change
-------------------------------- ----------- ----------- --------
Licensed Veterinary Medicines 4,396 3,975 10.6%
-------------------------------- ----------- ----------- --------
Companion Animal Identification 1,261 1,201 5.0%
-------------------------------- ----------- ----------- --------
Animal Welfare Products 1,271 1,286 (1.2%)
-------------------------------- ----------- ----------- --------
TOTAL 6,928 6,462 7.2%
-------------------------------- ----------- ----------- --------
The Licensed Veterinary Medicines group, representing around 60%
of overall business revenues, continues to be our main growth
driver, with sales up 10.6% versus prior period to GBP4.40m, 8.7%
of which is like-for-like. This increase 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 has come from products launched during FY14 which have
performed well in the first half.
Our Companion Animal Identification group has continued to
perform well, delivering an overall increase in sales of 5.0% to
GBP1.26m. With increasing competition in the pet insurance market,
much of this growth was driven by microchip revenues following
further sales and marketing focus.
Revenues from our Animal Welfare Products group fell modestly to
GBP1.27m however, as observed in the previous financial year,
overall gross profitability has been broadly maintained as a result
of improved sales mix, including growth in the infusion accessories
range.
Gross profit increased by 10.0% to GBP4.0m (2013: GBP3.6m). Our
gross margins increased to 57.1% (2013: 55.6%) primarily reflecting
the non-recurring benefit of higher than expected sales of
Buprecare as noted above, however, underlying gross margins have
also modestly improved due to favourable sales mix.
Underlying* operating profit increased by 24.7% to GBP1.79m
(2013: GBP1.44m) largely as a result of improved gross profits
whilst maintaining control of overall overheads, excluding research
and development costs, at similar levels to H1 FY13. During the
period, we completed the restructuring of our UK sales team,
including the introduction of a telesales function. We expect to
continue to invest in our staff base in a planned and measured way
to support our growth strategy.
Cash flow
Cash flows generated by operations were GBP2.55m (2013:
GBP0.95m). During the period, as planned, the Group has focused on
reducing its inventory levels from the peak seen in FY14. Whilst
the GBP0.48m stock decrease was higher than expected, partly due to
strong December sales, we continue to focus on optimising our
inventory mix whilst ensuring our customers' requirements are
met.
Net income taxes paid at GBP0.29m include a GBP0.10m cash
benefit in relation to FY13 research and development tax
credits.
Capital expenditure in the period principally relates to
investment in our product development pipeline. Whilst
significantly higher than prior period, this was lower than
originally planned. This is an important activity for the Group and
is progressing well and has benefitted from the additions made to
the Technical and Business Development teams during FY14. We expect
overall FY15 expenditure to be weighted to the second half.
Group cash balances at 31(st) December 2014 were GBP5.04m
(30(th) June 2014: GBP3.81m, 31(st) December 2013: GBP3.64m).
Earnings per share ("EPS")
Basic underlying* EPS increased by 23.6% to 6.8 pence (2013: 5.5
pence). The statutory basic EPS increased by 26.9% to 6.6 pence
(2013: 5.2 pence) reflecting the lower cost of exceptional items in
the period.
Dividend
Given the solid trading performance and strong financial
position of the Group, the Board is pleased to announce, a 20%
increase in the interim dividend to 1.8 pence per share (2013: 1.5
pence per share), which follows the 4.0% increase in the final
dividend for FY14. The interim dividend will be paid on 7(th) May
2015 to shareholders on the register on 10(th) April 2015.
The Board will continue to monitor the Group's cash position to
ensure an appropriate balance between investment for growth and
return for shareholders.
New Product Development
As previously stated, we have a strategy to grow the business
through investment in the Licensed Veterinary Medicines group.
Though it inevitably takes time for this progress to be visible
externally, the activity in our product development pipeline has
increased significantly in the last 18 months.
As can be seen in the table below the projects in our pipeline
are moving forward through the stages.
Please see this link for a copy of the table:
http://www.rns-pdf.londonstockexchange.com/rns/6546F_-2015-2-23.pdf
In addition, the number of potential projects short-listed from
our structured product identification process has increased
significantly in H1 FY15. These projects will be assessed for their
technical and commercial feasibility before Board assessment and
the start of investment.
More novel technologies are being reviewed as part of our
enhanced generic strategy and we believe that George Gunn's
appointment to the Board as a director will undoubtedly enhance the
quality and number of opportunities available to Animalcare.
Summary and outlook
Changes to the product development team and processes are having
a positive effect on the progress of our new pharmaceutical product
pipeline. In order to maintain momentum and explore the extensive
range of business opportunities available to Animalcare, we are
starting to recruit additional resource.
We expect to launch three new pharmaceutical products in the
second half of the financial year, on distribution from one of our
European partners, which will keep up the momentum in the core part
of our business.
Introduction of compulsory microchipping for dogs in Wales has
been delayed from March 2015 and may now coincide with its
introduction in England in April 2016. Industry changes to the
Animalcare pet and owner database requested by DEFRA are almost
complete ahead of schedule. Engagement by dog owners in preparation
for the deadline in England in April 2016 has been slow but as this
gathers momentum Animalcare is well placed to benefit.
The Board is committed to its strategy to invest in enhanced
generic medicines that will deliver growth and protectable revenue
in the medium to long-term. As anticipated, the market remains
challenging which results in continued pressure on margins,
however, the business remains on target to perform in line with
management expectations in H2 and for the full year to 30(th) June
2015.
* Underlying measures are before the effect of exceptional costs
and other items as disclosed in note 3.
Iain Menneer Chris Brewster
Chief Executive Officer Chief Financial Officer
Condensed Consolidated Statement of Comprehensive Income -
Unaudited
Six months ended 31(st) December 2014
6 months ended 31(st) December 6 months ended 31(st) December
2014 2013
----------------------- ---- --------------------------------------- ----------------------------------------------
Exceptional
and other Exceptional and
Underlying items (i) Total Underlying results other items (i) Total
Note results GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
======================= ==== ---------------- ----------- -------- ================== ================ ========
Revenue 6,928 - 6,928 6,462 - 6,462
----------------------- ---- ---------------- ----------- -------- ------------------ ---------------- --------
Cost of sales (2,971) - (2,971) (2,867) - (2,867)
======================= ==== ---------------- ----------- -------- ================== ================ ========
Gross profit 3,957 - 3,957 3,595 - 3,595
----------------------- ---- ---------------- ----------- -------- ------------------ ---------------- --------
Distribution
costs (135) - (135) (144) - (144)
----------------------- ---- ---------------- ----------- -------- ------------------ ---------------- --------
Administrative
expenses (1,948) (49) (1,997) (1,883) (59) (1,942)
======================= ==== ---------------- ----------- -------- ================== ================ ========
Research &
development
expenses (84) - (84) (133) - (133)
======================= ==== ---------------- ----------- -------- ================== ================ ========
Operating profit/loss 1,790 (49) 1,741 1,435 (59) 1,376
----------------------- ---- ---------------- ----------- -------- ------------------ ---------------- --------
Finance
income/(expense) 13 1 14 14 (14) -
======================= ==== ---------------- ----------- -------- ================== ================ ========
Profit/(loss)
before tax 1,803 (48) 1,755 1,449 (73) 1,376
----------------------- ---- ---------------- ----------- -------- ------------------ ---------------- --------
Income tax
(expense)/credit (374) 10 (364) (305) 16 (289)
======================= ==== ---------------- ----------- -------- ================== ================ ========
Total comprehensive
income/(loss)
for the period 1,429 (38) 1,391 1,144 (57) 1,087
----------------------- ---- ---------------- ----------- -------- ------------------ ---------------- --------
Basic earnings
per share 6 6.8p 6.6p 5.5p 5.2p
----------------------- ---- ---------------- ----------- -------- ------------------ ---------------- --------
Fully diluted
earnings per
share 6 6.8p 6.6p 5.5p 5.2p
----------------------- ---- ---------------- ----------- -------- ------------------ ---------------- --------
Total comprehensive income/(loss) for the period 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 items are analysed
in note 3.
Condensed Consolidated Statement of Comprehensive Income -
Audited
Year ended 30(th) June 2014
Exceptional
Underlying and other items
results (i) Total
Note GBP'000 GBP'000 GBP'000
----------------------------------- ---- ---------- ---------------- --------
Revenue 12,881 - 12,881
----------------------------------- ---- ---------- ---------------- --------
Cost of sales (5,739) - (5,739)
----------------------------------- ---- ---------- ---------------- --------
Gross profit 7,142 - 7,142
----------------------------------- ---- ---------- ---------------- --------
Distribution costs (257) - (257)
----------------------------------- ---- ---------- ---------------- --------
Administrative expenses (3,823) (119) (3,942)
----------------------------------- ---- ---------- ---------------- --------
Research & development expenditure (260) - (260)
----------------------------------- ---- ---------- ---------------- --------
Operating profit/(loss) 2,802 (119) 2,683
----------------------------------- ---- ---------- ---------------- --------
Finance income 27 27
----------------------------------- ---- ---------- ---------------- --------
Finance expense - (38) (38)
----------------------------------- ---- ---------- ---------------- --------
Profit/(loss) before tax 2,829 (157) 2,672
----------------------------------- ---- ---------- ---------------- --------
Income tax (expense)/credit (570) 35 (535)
----------------------------------- ---- ---------- ---------------- --------
Total comprehensive income/(loss)
for the year 2,259 (122) 2,137
----------------------------------- ---- ---------- ---------------- --------
Basic earnings per share 6 10.8p 10.3p
----------------------------------- ---- ---------- ---------------- --------
Fully diluted earnings per
share 6 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 costs and other items. These items are
analysed in note 3.
Condensed Consolidated Statement of Changes in Shareholders'
Equity
Six months ended 31(st) December 2014
Year ended
6 months ended 6 months ended 30(th) June
31(st) December 31(st) December 2014
2014 Unaudited 2013 Unaudited Audited
Note GBP'000 GBP'000 GBP'000
---------------------------- ---- ---------------- ---------------- ------------
Balance at beginning
of period 19,453 17,962 17,962
---------------------------- ---- ---------------- ---------------- ------------
Total comprehensive
income for the period 1,391 1,087 2,137
---------------------------- ---- ---------------- ---------------- ------------
Transactions with owners
of the Company, recognised
in equity:
---------------------------- ---- ---------------- ---------------- ------------
Dividends paid 5 (838) (788) (1,103)
---------------------------- ---- ---------------- ---------------- ------------
Issue of share capital 11 15 242
---------------------------- ---- ---------------- ---------------- ------------
Share-based payments 73 65 215
---------------------------- ---- ---------------- ---------------- ------------
Balance at end of period 20,090 18,341 19,453
---------------------------- ---- ---------------- ---------------- ------------
Condensed Consolidated Balance Sheet
31(st) December 2014
31(st) December 31(st) December
2014 2013 30(th) June 2014
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------ --------------- --------------- ----------------
Non-current assets
------------------------------ --------------- --------------- ----------------
Goodwill 12,711 12,711 12,711
------------------------------ --------------- --------------- ----------------
Other intangible assets 1,395 1,379 1,327
------------------------------ --------------- --------------- ----------------
Property, plant and equipment 330 403 372
------------------------------ --------------- --------------- ----------------
14,436 14,493 14,410
------------------------------ --------------- --------------- ----------------
Current assets
------------------------------ --------------- --------------- ----------------
Inventories 1,938 1,800 2,420
------------------------------ --------------- --------------- ----------------
Trade and other receivables 2,165 1,528 1,883
------------------------------ --------------- --------------- ----------------
Cash and cash equivalents 5,037 3,640 3,812
------------------------------ --------------- --------------- ----------------
9,140 6,968 8,115
------------------------------ --------------- --------------- ----------------
Total assets 23,576 21,461 22,525
------------------------------ --------------- --------------- ----------------
Current liabilities
------------------------------ --------------- --------------- ----------------
Trade and other payables (1,976) (1,579) (1,606)
------------------------------ --------------- --------------- ----------------
Current tax liabilities (481) (475) (385)
------------------------------ --------------- --------------- ----------------
Deferred income (242) (231) (242)
------------------------------ --------------- --------------- ----------------
(2,699) (2,285) (2,233)
------------------------------ --------------- --------------- ----------------
Net current assets 6,441 4,683 5,882
------------------------------ --------------- --------------- ----------------
Non-current liabilities
------------------------------ --------------- --------------- ----------------
Deferred income (703) (764) (730)
------------------------------ --------------- --------------- ----------------
Deferred tax liabilities (84) (71) (109)
------------------------------ --------------- --------------- ----------------
(787) (835) (839)
------------------------------ --------------- --------------- ----------------
Total liabilities (3,486) (3,120) (3,072)
------------------------------ --------------- --------------- ----------------
Net assets 20,090 18,341 19,453
------------------------------ --------------- --------------- ----------------
Capital and reserves
------------------------------ --------------- --------------- ----------------
Called up share capital 4,194 4,152 4,192
------------------------------ --------------- --------------- ----------------
Share premium account 6,400 6,204 6,391
------------------------------ --------------- --------------- ----------------
Retained earnings 9,496 7,985 8,870
------------------------------ --------------- --------------- ----------------
Equity attributable to
equity holders of the parent 20,090 18,341 19,453
------------------------------ --------------- --------------- ----------------
Cash Flow Statement
Six months ended 31(st) December 2014
6 months ended 6 months ended Year ended
31(st) December 31(st) December 30(th) June
2014 Unaudited 2013 Unaudited 2014 Audited
GBP'000 GBP'000 GBP'000
----------------------------------- ---------------- ---------------- -------------
Comprehensive income for
the period before tax 1,755 1,376 2,672
----------------------------------- ---------------- ---------------- -------------
Adjustments for:
----------------------------------- ---------------- ---------------- -------------
Depreciation of property,
plant and equipment 55 49 69
----------------------------------- ---------------- ---------------- -------------
Amortisation of intangible
assets 141 151 410
----------------------------------- ---------------- ---------------- -------------
Finance income (13) (14) (27)
----------------------------------- ---------------- ---------------- -------------
Share-based payment award 73 65 152
----------------------------------- ---------------- ---------------- -------------
Release of deferred income (26) (26) (49)
----------------------------------- ---------------- ---------------- -------------
Operating cash flows before
movements in working capital 1,985 1,627 3,227
----------------------------------- ---------------- ---------------- -------------
(Increase)/decrease in inventories 482 (382) (1,002)
----------------------------------- ---------------- ---------------- -------------
Decrease/(increase) in receivables (282) 134 (221)
----------------------------------- ---------------- ---------------- -------------
Increase/(decrease) in payables 368 (402) (376)
----------------------------------- ---------------- ---------------- -------------
Cash generated by operations 2,553 949 1,628
----------------------------------- ---------------- ---------------- -------------
Income taxes paid (293) (264) (561)
----------------------------------- ---------------- ---------------- -------------
Net cash flow from operating
activities 2,260 685 1,067
----------------------------------- ---------------- ---------------- -------------
Investing activities:
----------------------------------- ---------------- ---------------- -------------
Payments to acquire intangible
assets (195) (6) (199)
----------------------------------- ---------------- ---------------- -------------
Payments to acquire property,
plant and equipment (26) (25) (32)
----------------------------------- ---------------- ---------------- -------------
Receipts from sale of property,
plant and equipment - - 2
----------------------------------- ---------------- ---------------- -------------
Interest received 13 14 27
----------------------------------- ---------------- ---------------- -------------
Net cash used in investing
activities (208) (17) (202)
----------------------------------- ---------------- ---------------- -------------
Financing:
----------------------------------- ---------------- ---------------- -------------
Receipts from issue of share
capital 11 15 305
----------------------------------- ---------------- ---------------- -------------
Equity dividends paid (838) (788) (1,103)
----------------------------------- ---------------- ---------------- -------------
Net cash used in financing
activities (827) (773) (798)
----------------------------------- ---------------- ---------------- -------------
Net (decrease)/increase
in cash and cash equivalents 1,225 (105) 67
----------------------------------- ---------------- ---------------- -------------
Cash and cash equivalents
at start of period 3,812 3,745 3,745
----------------------------------- ---------------- ---------------- -------------
Cash and cash equivalents
at end of period 5,037 3,640 3,812
----------------------------------- ---------------- ---------------- -------------
Comprising:
----------------------------------- ---------------- ---------------- -------------
Cash and cash equivalents 5,037 3,640 3,812
----------------------------------- ---------------- ---------------- -------------
Condensed Notes to the Financial Statements
31(st) December 2014
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 condensed set of financial statements as
at, and for, the six months ended 31(st) December 2014 comprises
the Company and its subsidiaries (together referred to as the
"Group"). The nature of the Group's operations and its principal
activities are set out in the latest Annual Report.
This Interim Report does not constitute statutory accounts as
defined in Section 435 of the Companies Act 2006. The information
contained herein has not been reviewed by the Group's auditor.
The prior year comparatives are derived from the audited
financial information as set out in the Group's Annual Report for
the year ended 30(th) June 2014 and the unaudited financial
information in the Group's Interim Report for the six months ended
31(st) December 2013. The comparative figures for the financial
year ended 30(th) June 2014 are not the Group's statutory accounts.
Those accounts have been reported on by the Group's auditor and
delivered to the Registrar of Companies. The report of the auditor
was (i) unqualified, (ii) did not include any reference to matters
to which the auditors drew attention without qualifying their
report and (iii) did not contain a statement under section 498(2)
or (3) of the Companies Act 2006.
The Interim Report for the six months ended 31(st) December 2014
was approved by the Board of Directors and authorised for issue on
24(th) February 2015.
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation and accounting policies
Except as described below, the condensed consolidated interim
financial information for the six months ended 31(st) December 2014
has been prepared using accounting policies consistent with those
of the Company's annual accounts for the year ended 30(th) June
2014, which were prepared in accordance with IFRSs as adopted by
the European Union.
Taxes on income in the interim periods are accrued using the
estimated tax rate that would be applicable for the full financial
year.
The following new standards and amendments are mandatory for the
first time for the financial period beginning 1(st) July 2014:
IFRS 10: Consolidated Financial Statements
IFRS 12: Disclosure of Interest in Other Entities
Amendments to IFRS 13: Fair value measurement
IAS 27(Amended): Separate Financial Statements
Amendments to IAS32: Financial Instruments: Disclosures -
Offsetting Financial Assets and Liabilities
Amendments to IAS 36: Recoverable Amount Disclosures for
non-Financial Assets
Amendments to IAS 39: Novation of Derivatives and Continuation
of Hedge Accounting
Adoption where applicable has not had a material effect on the
Group's financial information.
Going concern
The principal risks and uncertainties facing the Group remain
those set out in the latest Annual Report.
For the purposes of their assessment of the appropriateness of
the preparation of the interim financial information 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 period the Group met its day-to-day general corporate
and working capital requirements through existing cash resources.
At 31(st) December 2014 the Group had cash on hand of GBP5.0
million (30(th) June 2014: GBP3.8 million).
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 interim
financial information remains appropriate.
3. EXCEPTIONAL AND OTHER ITEMS
Six months ended 31(st) December 2014
6 months ended 6 months ended Year ended
31(st) December 31(st) December 30(th) June 2014
2014 Unaudited 2013 Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------- ---------------- ---------------- -----------------
Amortisation of acquired
intangible assets 59 59 119
----------------------------- ---------------- ---------------- -----------------
Supplier legal dispute (10) - -
----------------------------- ---------------- ---------------- -----------------
Interest rate swap refund (18)
----------------------------- ---------------- ---------------- -----------------
Fair value movements
on foreign currency hedging 17 14 38
----------------------------- ---------------- ---------------- -----------------
Total exceptional and
other items 48 73 157
----------------------------- ---------------- ---------------- -----------------
4. REVENUE AND OPERATING SEGMENTS
During the period, the principal activity of the Group was the
supply and distribution of veterinary medicines, identification and
other products for companion animals.
The Chief Operating Decision Maker ("CODM") is considered to be
the Chief Executive Officer of Animalcare Group plc. Performance
assessment is principally based on underlying operating profit. The
Group solely comprises one reportable segment, being Companion
Animal.
An analysis of revenue by product group is disclosed within the
Business Review.
5. DIVIDENDS
6 months ended 6 months ended Year ended
31(st) December 31(st) December 30(th) June 2014
2014 Unaudited 2013 Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------- ---------------- ---------------- -----------------
Ordinary final dividend
paid for the year ended
30(th) June 2013 of
3.8p per share - 788 788
-------------------------- ---------------- ---------------- -----------------
Ordinary interim dividend
paid for the year ended
30(th) June 2014 of 1.5p
per share - - 315
-------------------------- ---------------- ---------------- -----------------
Ordinary final dividend
paid for the year ended
30(th) June 2014 of
4.0p per share 834 - -
-------------------------- ---------------- ---------------- -----------------
834 788 1,103
-------------------------- ---------------- ---------------- -----------------
The interim dividend was approved by the Board of Directors on
24(th) February 2015 and has not been included as a liability as at
31(st) December 2014.
6. EARNINGS PER SHARE
Basic earnings per share amounts are calculated by dividing the
total comprehensive income for the period attributable to ordinary
equity holders of the Company by the weighted average number of
fully paid ordinary shares outstanding during the period.
The dilutive effect of share options is calculated by adjusting
the weighted average number of ordinary shares outstanding to
assume conversion of all dilutive potential ordinary shares from
the start of the period. The only dilutive potential ordinary
shares of the Company are share options.
The following income and share data was used in the earnings per
share computations:
6 months 6 months
ended 31(st) 6 months Year ended ended 31(st) 6 months Year ended
December ended 31(st) 30th June December ended 31(st) 30(th) June
2014 December 2014 2014 December 2014
Unaudited 2013 Unaudited Audited Unaudited 2013 Unaudited Audited
--------------------- ------------- --------------- ---------- -------------- --------------- --------------
Underlying Underlying Underlying
earnings earnings earnings Total earnings Total earnings Total earnings
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- ------------- --------------- ---------- -------------- --------------- --------------
Total comprehensive
income attributable
to equity holders
of the Company 1,429 1,144 2,259 1,391 1,087 2,137
--------------------- ------------- --------------- ---------- -------------- --------------- --------------
No. No. No. No. No. No.
--------------------- ------------- --------------- ---------- -------------- --------------- --------------
Basic weighted
average number
of shares 20,962,390 20,746,630 20,824,931 20,962,390 20,746,630 20,824,931
--------------------- ------------- --------------- ---------- -------------- --------------- --------------
Dilutive potential
ordinary shares 16,222 226,725 126,980 16,222 226,725 126,590
--------------------- ------------- --------------- ---------- -------------- --------------- --------------
Fully diluted
weighted average
number of shares 20,978,612 20,973,361 20,951,911 20,978,612 20,973,361 20,951,911
--------------------- ------------- --------------- ---------- -------------- --------------- --------------
Total earnings
per share:
--------------------- ------------- --------------- ---------- -------------- --------------- --------------
Basic 6.8p 5.5p 10.8p 6.6p 5.2p 10.3p
--------------------- ------------- --------------- ---------- -------------- --------------- --------------
Fully diluted 6.8p 5.5p 10.48 6.6p 5.2p 10.2p
--------------------- ------------- --------------- ---------- -------------- --------------- --------------
7. CAUTIONARY STATEMENT
This Interim Management Report ("IMR") consists of the
Chairman's Statement and the Operational and Financial Review,
which have been prepared solely to provide additional information
to shareholders to assess the Group's strategies and the potential
for those strategies to succeed. The IMR should not be relied upon
by any other party or for any other purpose.
The IMR contains a number of forward looking statements. These
statements are made by the Directors in good faith based upon the
information available to them up to the time of their approval of
this report and such statements should be treated with caution due
to the inherent uncertainties, including both economic and business
risk factors, underlying any such forward looking information.
This IMR has been prepared for the Group as a whole and
therefore emphasises those matters which are significant to
Animalcare Group plc and its subsidiaries when viewed as a
whole.
8. INTERIM REPORT
The Group's Interim Report for the six months ended 31st
December 2014 was approved and authorised for issue on 24th
February 2015 and is expected to be posted to shareholders during
the week commencing 23rd February 2015. Further copies will be
available to download on the Company's website at:
www.animalcaregroup.co.uk and will also be available from the
Company's head office at 10 Great North Way, York Business Park,
Nether Poppleton, York, YO26 6RB.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUBCPUPAGMW
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