This week: Animalcare flies, Avesco Rises and Wren Extra Care is expanding.
Animalcare Group (LON:ANCR 117.5p / £23.37m)
Supplier of pharmaceutical and other premium products and services to the veterinary industry and the manufacturer and supplier of premium quality livestock products to agricultural retailers has been moving up from the £1 per share level all this year. Last week it announced its interim results for the six months ended 31 December 2009 and demonstrated why the share price is on the move.
James Lambert, Chairman of Animalcare said “I am pleased to report strong growth in revenue and EBITDA, especially in our companion animal business. Although the market for our key livestock products is challenging we anticipate trading to improve in the second half of the year and are confident that our licensed veterinary medicines will continue to deliver revenue and profit growth in line with expectations.”
We attended a well turned out analyst meeting at which the company presented a substantial increase in revenue to £8.93m (2008 £7.76m) and EBITDA of £1.21m (2008 £0.82m). The companion animal business continued to deliver excellent revenue and profit growth with both the core business and the recently introduced licensed veterinary medicines making strong progress. Sales of Benazecare, Buprecare and Cephacare continue to grow in line with Animalcare Group’s expectations. The livestock business delivered modest revenue growth but suffered a loss due to one off costs and pressure on profit margins. The bulk of the loss related to the withdrawal from low margin activities unrelated to the ongoing business. In addition the business suffered a modest loss due to higher product costs arising from the sharp fall in the New Zealand $/GB £ exchange rate and a decline in sheep identification market volumes ahead of the implementation of new identification rules.
Adjusted basic earnings per share increased to 3.1p (2008 1.4p). Net cash flow from operating activities was £0.93m (2008 £0.94m) and at 31 December 2009 the group had net debt of £3.82m (2008 £4.99m).
The company announced a Marketing Authorisation in the UK and certain other EU markets for a further licensed veterinary medicine which will be launched in the next few months. As well as new product launches, we can expect potential acquisitions that will strengthen Animalcare’s market position and enhance earnings. We like the diversification of the three separate divisions and two distinct…
