Animalcare Group Plc : Full Year Results

RNS Number : 8085O

Animalcare Group PLC

25 September 2013

25  th  September 2013

Animalcare Group plc

Full Year Results

Animalcare Group plc ("the Group" or "Animalcare"), a leading supplier of veterinary medicines, announces results for the year ended 30  th  June 2013. Animalcare sells products in three discreet groups: Licensed Veterinary Medicines, Companion Animal Identification and Animal Welfare products.

Financial Highlights

· Revenue increased 11.6% to £12.1m (2012 - £10.9m)

s Sales of Licensed Veterinary Medicines up 20.6%

· Underlying* EBITDA increased by 16.6% to £2.9m (2012 - £2.5m)

· Underlying* operating profit up 17.0% to £2.7m (2012 - £2.3m)

· Underlying* basic earnings per share increased by 12.9% to 10.5p (2012 - 9.3p)

· Continued strong cash generation with year-end cash of £3.7m (up from £2.3m)

· Total dividend for the year up 17.8% to 5.3p (2012 - 4.5p)

* Underlying measures are before the effect of exceptional costs and other items.

Operational Highlights

· Strong revenue growth from Licenced Veterinary Medicines against a flat UK companion animal pharmaceuticals market

· Focus on Companion Animal Identification has stabilized the decline in sales of microchips. Associated services derived from microchip database growing

· Three new products launched in the year and a fourth gained its Marketing Authorisation during the year

· Relocation to new premises with better facilities and increased capacity achieved with no disruption to trading

· Executive and senior management changes successfully completed according to plan

James Lambert, Chairman of Animalcare, said:

"Your Board is pleased with the return to growth of your business over the past 12 months and believes it is in a strong position to deliver its stated strategy. Your Board is also encouraged by trading at the beginning of the current financial year."

For further information, please contact:

Iain Menneer (Chief Executive Officer

Animalcare Group plc

Panmure Gordon (Nominated Advisor & Broker)

Chris Brewster (Chief Financial Officer)

Tel: [phone]

Nicola Marrin	Tel: [phone]
Joanne Lake / Peter Steel	Tel: [phone]
Walbrook PR Ltd	Tel: [phone] or [e-mail]
Paul McManus	Mob: [phone]
Helen Cresswell	Mob: [phone]

Chairman's Statement

Introduction

I am pleased to announce that during the past financial year, Animalcare has returned to growth and is now in a much stronger position to build on this in both the current and subsequent years. Animalcare is made up of three product groups: Licensed Veterinary Medicines, Companion Animal Identification and Animal Welfare products that are all sold mainly through veterinary practices. The Licensed Veterinary Medicines group, which continues to be the main focus of our investment, has grown strongly in the current year with sales up by 20.6%. The Management has stabilized the Companion Animal Identification group after a difficult year in the previous period.

Financial Trading

Group revenues during the financial year increased by 11.6% from £10.9m to a record £12.1m. This is in the context of latest market statistics which indicate that sales of veterinary medicines in the UK have been flat. This performance has resulted in an increase in underlying operating profits, pre-exceptional and other items, from £2.3m to £2.7m, a full 17.0%. Basic underlying earnings per share increased to 10.5p from 9.3p. The Group continued to be strongly cash generative during the year with the cash position increasing from £2.3m to £3.7m at the year-end which demonstrates the strength of the business model. Additional sales coming from the Licensed Veterinary Medicine group enabled us to improve margins from 54% to 56%. The main driver of the increased licensed veterinary sales was a replacement supply of 'single-dose' Buprecare ampoules and the launch of two new licensed generic veterinary medicines.

Dividend

With the increase in cash generation during the year and the return to profitable growth, your Board proposes to increase the final dividend to 3.8 pence per share. With this increase of 0.8 pence per share, and the maintained first half dividend of 1.5 pence per share this gives a total dividend for the year of 5.3 pence per share, an increase of 17.8%.

The Board

During the financial year, your Board announced that Stephen Wildridge would step down as Group CEO, to be replaced by Dr Iain Menneer, formerly Managing Director of Animalcare Ltd, and that Stephen would remain on the Board as Director of Strategy and Business Development until the end of October. This has allowed a smooth transition for Iain into the role of CEO and the appointment of a senior management team to head up sales, marketing and product development. The Board wishes to thank Stephen for all his endeavours in building your business over the past ten years into one of the leading UK animal health companies. Iain is ideally qualified to take on the CEO role with experience in a number of positions within the business over the past ten years including marketing, sales and business development.

Prospects

Your Board is pleased with the return to growth of your business over the past 12 months and believes it is in a strong position to deliver its stated strategy. Your Board is also encouraged by trading at the beginning of the current financial year.

James Lambert