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AnimalcareAnnouncement

06/09/2014 14:42

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RNS Number : 0385M
Animalcare Group PLC
11 July 2014 
 
Animalcare Group plc 
 
("Animalcare" or the "Group") 
 
Trading Update & Notice of Results 
 
Animalcare, a leading supplier of veterinary medicines, provides the following
trading update for the year ended 30th June 2014, in advance of releasing its
results on Wednesday 15th October 2014. 
 
Trading Update 
 
The Board is very pleased with trading in the year. Revenues across the Group
are up by 6.3% to approximately £12.9m (2013: £12.1m), ahead of market
expectations. 
 
Sales of the Licensed Veterinary Medicines product group were up by 10% versus
the prior period and broadly in line with the growth seen in the wider UK
licensed veterinary companion animal medicines market. The Companion Animal
Identification product group has made further progress following positive
results at the half-year with sales up over 8% on last year due to strong
contributions from both microchip sales and database services. 
 
The planned rationalisation of older, lower margin Animal Welfare products has
focused the range, with revenues reducing by 4% but with gross profit growing
by 8%. 
 
Overall underlying operating profit is in line with market expectations and at
least £2.6m for the full year. Operating cash flows reflect the planned higher
inventory levels of certain commercially important products. The year end cash
position remains robust at £3.8m (31st December 2013: £3.6m; 30th June 2013:
£3.7m) and, alongside positive trading, gives the Board the confidence to
maintain the dividend flow during the current investment cycle. 
 
Summary and Outlook 
 
The Board is very pleased to report the strong progress of the business versus
the prior period. Revenues from key product groups, Licensed Veterinary
Medicines and Companion Animal Identification, have grown well. 
 
The engagement of veterinary practices and the dog-owning public in compulsory
microchipping has been more measured than expected by the wider industry.
However, a promotion through the calendar year to celebrate the 25th
anniversary of the introduction of Animalcare's Identichip, the first
microchip in the UK, has been very successful so far. 
 
Emphasis on the structure and development of the sales function will further
drive the business in the coming period and beyond. 
 
The Board is committed to significant investment in product development which
will be financed from cash generated by the business. Animalcare has recruited
further staff to strengthen the product development team working on enhanced
generic medicine projects. The Board believes that this investment will be key
to generating continued growth in the business and further enhancing
shareholder value. 
 
The Board believes that the underlying business will continue to deliver
growth whilst maintaining the dividend flow during the coming period of
increased investment. 
 
For further information, please contact: 
 
 Animalcare Group plc                            Tel: 01904 487 687                               
 Iain Menneer, Chief Executive Officer                                                            
 Chris Brewster, Chief Financial Officer                                                          
                                                                                                  
 Panmure Gordon  (Nominated Adviser and Broker)                                                   
 Nicola Marrin                                   Tel: 0207 886 2500                               
 Joanne Lake/Peter Steel                         Tel: 0113 357 1150                               
                                                                                                  
 Walbrook PR Ltd                                 Tel: 020 7933 8780 or animalcare@walbrookpr.com  
 Paul McManus                                    Mob: 07980 541 893                               
 Lianne Cawthorne                                Mob: 07584 391 303                               
 
 
Notes to editors 
 
Animalcare is a leading veterinary sales and marketing company 
 
based in York with 57 employees including a field sales force of 15
representatives selling to all veterinary practices around the United
Kingdom. 
 
Animalcare has developed a range of 
 
generic veterinary medicines and animal identification products primarily to
companion animal veterinary markets. 
 
Animalcare operates in three product areas: 
 
· 
 
Licensed Veterinary Medicines 
 
- a range of branded veterinary licensed pharmaceuticals sold to veterinary
professionals in the UK and selected markets in Northern Europe. The range can
be divided into four main categories; 
 
antibacterials, anaesthetics and analgesics, 
 
Aqupharm intravenous fluids 
 
and 
 
vitamins & speciality pharmaceuticals. 
 
· 
 
Companion Animal Identification 
 
- Identichip is the pioneering microchip identification system in the UK.
Animalcare also owns and operates the Anibase database; together the market
leader in electronic identification for pets in the UK. 
 
· 
 
Animal Welfare Products 
 
- a range used by veterinary professionals in the diagnosis and care of their
patients, for example intravenous infusion accessories, ophthalmic
instruments, hygiene solutions and bandages and dressings. 
 
This information is provided by RNS
The company news service from the London Stock Exchange