Animalcare Group PLC Trading Update & Notice of Results (1191E)
July 14 2016 - 2:00AM
UK Regulatory
TIDMANCR
RNS Number : 1191E
Animalcare Group PLC
14 July 2016
Animalcare Group plc
("Animalcare" or the "Group")
Trading Update & Notice of Results
Animalcare (AIM: ANCR), a leading supplier of veterinary
medicines, provides the following trading update for the year ended
30(th) June 2016, in advance of releasing its preliminary results
on Wednesday 12(th) October 2016.
Trading Update
The Board is very pleased to report a positive trading
performance for the year ended 30(th) June 2016. Revenues across
the Group were up by 8.6% to GBP14.70m (2015: GBP13.54m) and
underlying operating profits are expected to be broadly in line
with last year, exceeding market expectations.
Revenue from sales of the Licensed Veterinary Medicines group
was up 7.7% to GBP9.24m (2015: GBP8.58m), with growth driven by
full year sales of new distribution products launched late in the
prior period.
The Companion Animal Identification group revenues increased by
16.0% to GBP2.68m (2015: GBP2.31m). Legislation making it
compulsory to microchip dogs in the United Kingdom had little
effect until the very last minute of its introduction in April
2016. A short-lived but significant increase in sales accounted for
most of the increase along with continued strong performance from
database services.
Sales from the Animal Welfare Products group improved by 4.9% to
GBP2.78m (2015: GBP2.65m) driven by our growing infusion
accessories range.
In line with one of our stated strategic objectives a dedicated
export manager was employed at the start of the financial year and
as a result sales to territories outside the UK have grown by
22.8%, ahead of management expectations.
We expect both Underlying Operating Profit and Basic Underlying
EPS to be broadly in line with prior year, ahead of market
expectations during a period of further strengthening of the core
business. The year-end cash position was GBP7.1m (30(th) June 2015:
GBP5.8m) with the business continuing to generate strong levels of
cash through its investment phase. For the second year, planned
investment in our product pipeline has increased significantly on
the prior year to circa GBP1.5m (2015: GBP0.8m).
Summary and Outlook
During the full year Animalcare re-launched its market leading
intravenous fluids with a new European contract manufacturer
allowing the range to be extended, product presentation and margin
to be improved. We are planning the launch of several new products
in the new financial year, some on distribution and others from our
own in-house development pipeline.
It is expected that the compulsory microchipping legislation for
dogs in the UK will result in a decline in the available dog
market. However, Animalcare has plans to evolve the established
business model to build upon the anticipated lower revenue
levels.
The product development pipeline is progressing well; investment
has increased 8-fold in the space of two years and is already
producing returns.
The result of the EU referendum has introduced some uncertainty
in the UK economy and in particular sterling weakness which the
Group will continue to monitor. This will impact the cost of a
large proportion of our pharmaceutical products imported from
mainland Europe, denominated in Euros, and microchips supplied in
USD. However this is balanced in part by the increasing level of
Euro-denominated sales outside the UK and in the short-term, our
hedging position.
Notwithstanding the above, the Group has a strong balance sheet
and our long-term business plans are unchanged and being actively
pursued without delay.
Following the strong trading performance in the year,
particularly from the Licensed Veterinary Medicines group, the
Board remains confident about the prospects for the new financial
year and is pleased with the momentum of the product development
pipeline and the new UK distribution opportunities the company has
attracted. In addition, export opportunities will have increasing
significance on the success of the business in the coming two to
three years.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
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
Paul McManus Mob: 07980 541 893
Lianne Cawthorne Mob: 07584 391 303
About Animalcare
Animalcare is a leading veterinary sales and marketing company
based in York with 60 employees including a sales team of 22
selling to veterinary practices around the United Kingdom.
Animalcare has developed a range of generic veterinary medicines
and animal identification products primarily to companion animal
veterinary markets.
Animalcare operates in three product areas:
-- Licensed Veterinary Medicines
-- Companion Animal Identification
-- Animal Welfare Products
For more information see: Home - Animalcare Group plc
This information is provided by RNS
The company news service from the London Stock Exchange
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