REG - Animalcare Group PLC - Trading Update and Notice of Full Year Results

AnimalcareAnnouncement

26/01/2023 07:00

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RNS Number : 8983N  Animalcare Group PLC  26 January 2023

ANIMALCARE GROUP PLC

 

(the "Company" or the "Group")

 

Trading Update and Notice of 2022 Full Year Results

 

26 January 2023. Animalcare Group plc (AIM: ANCR), the international animal
health business, provides the following unaudited trading update for the year
ended 31 December 2022. Full year results are due to be published on 28 March
2023.

 

Performance highlights

 

·    Underlying EBITDA anticipated to be approximately in line with market
expectations

·    Revenue c£71.6 million (2021: £74.0 million)

·    Improved cash conversion drives second half reduction in net debt and
continuing balance sheet strength

·    Daxocox on track; now a top 10 selling Animalcare product

 

Trading overview

 

Trading activity in 2022 reflected the continued moderation of market growth
across Europe from the exceptionally high levels of post pandemic-related
demand in 2021. Full year revenues are expected to be c£71.6 million (2021:
£74.0 million), a decline of c3% at CER and AER. Revenues generated by
Companion Animals were also impacted by conclusion of distribution agreements
while sales in the Production Animals segment, as previously reported,
reflected the application of EU laws in Spain designed to further reduce the
widespread use of antibiotics.

 

The Group anticipates that underlying EBITDA, which includes investment in
Orthros-related R&D, will be approximately in line with market
expectations. Signed in March 2022, the agreement with Orthros Medical secured
a global licence for innovative early-stage VHH antibody candidates, initially
addressing canine osteoarthritis. Underlying EBITDA margins are expected to be
broadly at the same level as the prior year, driven by a strong increase in
gross margins and disciplined management of SG&A costs.

 

Rationalisation of the portfolio, which has concentrated the Group's attention
on higher quality, larger selling products, is materially complete and
continued to benefit sales mix and gross margins. Notably, Daxocox is now
comfortably a top 10 selling Animalcare product while our oral antibiofilm
Plaqtiv+ range made a positive contribution following its launch during the
year. In addition, Identicare Ltd, the Group's UK-based pet microchipping and
consumer-focused services business delivered double-digit revenue growth over
the period.

 

Strong cash conversion in the second half helped maintain the Group's healthy
balance sheet with net debt standing at c£5.4 million at year end (2021:
£5.3 million), well below the target range of one to two times underlying
EBITDA. This solid financial platform provides the flexibility and firepower
to continue pursuit of opportunities that support the Group's long-term growth
strategy.

 

Jenny Winter, Chief Executive Officer commented: "We remain confident in the
resilience of the Group and the animal health sector despite the impact of
exceptional macroeconomic challenges on our markets over the course of 2022. I
am particularly pleased that our ongoing focus on improving margins delivered
for our business across the year. Benefiting from our strong financial
platform, we will continue to grow our business through investment in our
people, our pipeline and external business development opportunities."

 

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

 

About Animalcare

Animalcare Group plc is a UK AIM-listed international 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.

 

For more information about Animalcare, please visit www.animalcaregroup.com
(http://www.animalcaregroup.com) or contact:

 

 Animalcare Group plc                      +44 (0)1904 487 687

 Jenny Winter, Chief Executive Officer

 Chris Brewster, Chief Financial Officer

 Media/investor relations                  communications@animalcaregroup.com

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

(Nominated Adviser & Joint Broker)

 Ben Maddison

 Nick Adams

 Nicholas Harland

 Panmure Gordon                            +44 (0)20 7886 2500

 (Joint Broker)

 Corporate Finance

 Freddy Crossley/Emma Earl

 Corporate Broking

 Rupert Dearden

 

 

 

 

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