Animalcare Group PLC Trading Update & Notice of Interim Results (3724M)
January 20 2016 - 2:00AM
UK Regulatory
TIDMANCR
RNS Number : 3724M
Animalcare Group PLC
20 January 2016
Animalcare Group plc
("Animalcare" or the "Group")
Trading Update & Notice of Interim Results
Animalcare (AIM: ANCR), a leading supplier of veterinary
medicines, provides the following trading update for the six months
ended 31(st) December 2015, in advance of releasing its interim
results on Wednesday 10(th) February 2016.
Trading Update
The Board is pleased to report good progress during the Period,
achieving top line growth during a phase of significantly increased
investment to deliver our strategy.
Revenues across the Group were up by 2.7% to GBP7.11m (2014:
GBP6.93m).
Revenue from sales of Licensed Veterinary Medicines was up 4.2%
to GBP4.58m (2014: GBP4.40m). This increase has been delivered
despite the impact of the prior period GBP0.2m non-recurring first
half benefit from sales of Buprecare as a result of competitor
supply issues, therefore reflecting strong sales growth of products
launched in the second half of the previous financial year.
The companion animal microchipping market has become
significantly more competitive ahead of compulsory microchipping in
England, Wales and Scotland in April 2016. Sales in the Companion
Animal Identification group declined by 5.2% to GBP1.20m (2014:
GBP1.26m). Whilst microchip revenues were adversely affected other
products and services in this group performed well, increasing by
7.2%.
Revenues from the Animal Welfare Products group increased by
5.0% to GBP1.34m (2014: GBP1.27m) driven primarily by increased
sales of our Infusion Accessories range.
As we noted in our FY15 results in October last year, we entered
the 2016 financial year with a continued focus on investment, both
in our people and product development pipeline. In the first six
months of FY16 we have invested over 300% more in our product
development pipeline versus the prior period. We expect overheads
for the period to increase by approximately GBP0.2m compared with
the first six months of FY15 as we position the business for future
growth.
Our Group cash position increased by GBP0.3m to GBP6.1m (30(th)
June 2015: GBP5.78m; 31(st) December 2014: GBP5.04m). We continue
to maintain robust control over our working capital hence operating
cash flows remain strong.
Summary and Outlook
In line with our strategy of product development and investment,
one new product will be launched on distribution in H2. In addition
one Existing Product Development product will be commercialised
early in H2 delivering significant commercial benefit. Three other
in-house product development projects are expected to receive
regulatory approval during H2, with commercialisation soon
after.
The rate of progress of our product development pipeline is
expected to continue; the estimated rate of expenditure is expected
to be between GBP1.0m and GBP1.5m for the current financial year
and beyond, leaving Animalcare well positioned to drive growth from
2017 onwards.
Whilst the uptake of microchips for dogs in England, Scotland
and Wales remains modest there has been increased competition
between suppliers to the market. Animalcare has plans in place to
respond to this and to maximise the value from this segment beyond
the current financial year.
Following the solid trading performance in the first half,
particularly across the Licensed Veterinary Medicines and Animal
Welfare Product groups, the Board remains confident about the
prospects and outcome for the full year.
For further information, please contact:
Animalcare Group plc Tel: 01904 487 687
Iain Menneer, Chief Executive
Officer
Chris Brewster, Chief Financial
Officer
Panmure Gordon (Nominated Adviser
and Broker)
Freddy Crossley/Peter Steel Tel: 020 7886 2500
Walbrook PR Ltd Tel: 020 7933 8780 or animalcare@walbrookpr.com
Lianne Cawthorne Mob: 07584 391 303
Notes to editors
Animalcare is a leading supplier of generic veterinary medicines
and animal identification products to companion animal veterinary
markets.
Animalcare develops and sells goods and services to veterinary
professionals principally for use in companion animals; operating
through UK wholesalers and distribution and development partners in
key markets in Western Europe.
Animalcare has three product groups:
-- Licensed Veterinary Medicines - a range of branded veterinary
licensed pharmaceuticals sold to veterinary professionals in the UK
and selected markets in Europe. The range can be divided into four
main categories; antimicrobials, anaesthetics & analgesics,
fluid therapy and 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, hygiene solutions and
trauma management products.
This information is provided by RNS
The company news service from the London Stock Exchange
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