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

AnimalcareAnnouncement

25/01/2022 07:05

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RNS Number : 4539Z  Animalcare Group PLC  25 January 2022

ANIMALCARE GROUP PLC

 

(the "Company" or the "Group")

 

Trading update and Notice of 2021 Full Year Results

 

25 January 2022. Animalcare Group plc (AIM: ANCR), the international animal
health business, provides the following unaudited trading update for the 12
months ended 31 December 2021. Full year results are due to be published on 29
March 2022.

 

Highlights

 

·    Strong full year trading performance driven by increased Companion
Animals demand and growth from new products

·    Revenue of around £74.0 million (2020: £70.5 million) in line with
market expectations, representing a c5% increase on prior year (c8% at
constant currency)

·    Earnings anticipated to be in line with previously upgraded market
expectations

·    Continuing strong cash conversion enables significant reduction in
the net debt position to approximately £5.3 million

 

Trading overview

 

Revenues grew to around £74.0 million, up approximately 5% on the prior year
(around 8% at constant currency). As anticipated, revenue growth was weighted
towards the first half as a result of exceptional veterinary demand in Q1 and
markets returning to more normal levels through the course of the financial
year. Companion Animals recorded a double-digit sales increase reflecting
positive market fundamentals such as increased pet ownership and the easing of
COVID-19 counter measures compared to 2020. Revenues also benefited from
growth in new products including Daxocox which was successfully launched as a
treatment for osteoarthritis-related pain in dogs in 2021.

 

Earnings are anticipated to be in line with market expectations which were
upgraded in September 2021. The Group expects that the rate of growth of
underlying EBITDA will be ahead of revenue. This is largely as a result of a
higher margin sales mix, while absorbing increased SG&A costs related to
organisational drivers of growth.

 

Very strong cash conversion drove further balance sheet improvement with net
debt reduced to approximately £5.3 million at year end. Leverage is now
comfortably below the Group's stated target range of 1-2 times underlying
EBITDA, providing the flexibility and firepower to continue pursuit of
pipeline and business development opportunities that support the long-term
growth strategy.

 

Jenny Winter, Chief Executive Officer commented: "The continuing evolution of
our product portfolio and the successful launch of Daxocox were important
contributors to the Group's very positive trading performance in 2021. Looking
to the future, the further strengthening of our balance sheet provides us with
increased capacity to invest in our long-term growth strategy. The entire
Animalcare team deserves huge credit for their focus, hard work and agility in
this fast-changing and dynamic market."

 

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

 

 

 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

 Fred Walsh

 Nick Adams

 Panmure Gordon                            +44 (0)20 7886 2500

 (Joint Broker)

 Corporate Finance

 Freddy Crossley/Emma Earl

 Corporate Broking

 Rupert Dearden

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:

 

 

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