REG - Animalcare Group PLC - Half year Trading Update and Notice of Interims

AnimalcareAnnouncement

27/07/2023 07:15

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RNS Number : 3236H  Animalcare Group PLC  27 July 2023

ANIMALCARE GROUP PLC

("Animalcare" or the "Group" or the "Company")

 

Half Year Trading Update and Notice of Interim Results

 

 

27 July 2023. Animalcare Group plc (AIM: ANCR), the international animal
health business, provides the following unaudited trading update for the six
months ended 30 June 2023 ahead of publishing its interim results on 26
September 2023.

 

Trading overview

Animalcare is pleased to report strong gross margins and improved cash
generation in the first half of 2023 during a period of some moderation in
veterinary demand across Europe.

 

Revenues are expected to be approximately £36.7m for H1 2023 (vs. H1 2022:
£38.3m), an overall c. 4% decline at AER (c. 7% decline at CER) for the
period. However, the Board remains confident that the Group will deliver
revenue in line with market expectations for this full year and demonstrate
revenue growth versus 2022. Companion Animals sales benefited from an
enthusiastic customer response to the recently launched Plaqtiv+ oral health
range and increased momentum from the Identicare business. This was offset by
wholesaler destocking in certain territories and phasing of customer orders,
the latter also impacting our International Partners revenues in respect of
Production Animals products. Equine sales increased during the period in which
we took Danilon, one of our largest brands, back into the UK business. The
Group continues to invest in sales and marketing activities to drive Daxocox
uptake.

 

We expect underlying EBITDA margin to be ahead of FY 2022 (18.3%) through a
combination of strong gross margins and disciplined management and allocation
of SG&A costs as the Group continues to gain from its strategic focus on a
more streamlined portfolio of profitable products.

 

As anticipated, cash conversion rate improved markedly to approximately 50%
leading to a further reduction in net debt to around £4.0m as of 30 June 2023
(31 December 2022: £5.4m), comfortably below the target leverage ratio of one
to two times underlying EBITDA. This equips Animalcare with the financial
strength and flexibility to continue the pursuit of value-creating
opportunities through M&A, partnerships and pipeline deals such as the VHH
antibody research alliance with Orthros Medical.

 

Jenny Winter, Chief Executive Officer said: "Animalcare made positive
progress on margins and cash conversion, despite some moderation in demand
during the first half, and we continue to expect revenue growth for the full
year. Looking further ahead, we remain confident in the prospects of the Group
and the long-term fundamentals of the animal health sector and continue to
employ our strong financial position to invest in drivers of growth."

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014.

 

 

Enquiries

 

 Animalcare Group plc
 Jenny Winter, Chief Executive Officer     +44 (0)1904 487 687

 Chris Brewster, Chief Financial Officer   communications@animalcaregroup.com (mailto:communications@animalcaregroup.com)

 Stifel Nicolaus Europe Limited            +44 (0)20 7710 7600

 (Nominated Adviser & Joint Broker)
 Ben Maddison

 Nick Adams

 Nicholas Harland

 Francis North

 Panmure Gordon                            +44 (0)20 7886 2500

 (Joint Broker)

 Corporate Finance

 Freddy Crossley/Emma Earl

 Corporate Broking

 Rupert Dearden

 

About Animalcare www.animalcaregroup.com (http://www.animalcaregroup.com)

Animalcare Group plc is a UK AIM-listed international development-focused
veterinary sales and marketing organisation. Animalcare operates in seven
countries and exports to approximately 40 countries in Europe and worldwide.
The Group is focused on bringing new and innovative products to market through
its own development pipeline, partnerships and via acquisition.

 

 

 

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