REG - Eco Animal Health Gp - Results for the six months ended 30 September 2025
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RNS Number : 6382J Eco Animal Health Group PLC 01 December 2025
1 December 2025
ECO Animal Health Group plc
Results for the six months ended 30 September 2025
Revenues ahead of guidance, with improved gross margins driving greater
profitability
ECO Animal Health Group plc ("ECO", the "Company", or the "Group") (AIM: EAH),
a rapidly growing global animal health company with a portfolio of marketed
veterinary products and a maturing proprietary research and development
("R&D") pipeline, today announces its unaudited interim results for the
six months ended 30 September 2025. As a result of increased volume plus
price improvements and lower cost of sales, revenue and adjusted EBITDA are
ahead of the Board's previously announced guidance set out in the 25 September
2025 AGM Trading Update.
HIGHLIGHTS
Financial
· Group Revenue increased 19% to £39.4 million (H1 2024: £33.2
million)
o Revenues on a constant currency basis increased 23%
o Revenue in USA and Canada increased by 30% to £11.2 million (H1 2024:
£8.6 million)
o Revenue in China and Japan recovered strongly, showing an increase of 48%
to £12.1 million (H1 2024: £8.2 million)
· Gross margins increased to 49.6% (H1 2024: 40.3%), driven by
improved pricing and lower input costs
· Adjusted EBITDA at £3.0 million (H1 2024: £0.4 million)
· Loss per share of 0.54p (H1 2024: loss per share: 2.50p)
· Cash generated by operations before working capital increased to
£4.5 million (H1 2024: £0.8 million)
· Cash balances increased to £18.6 million (30 September 2024:
£18.3 million)
Operational (including post-period end)
· Positive Opinion received ahead of schedule from the European
Medicines Agency EMA for ECOVAXXIN(®) MS, the Group's poultry vaccine against
Mycoplasma synoviae, establishing an anticipated EU commercial launch in H2
CY2026
· Other late-stage projects for poultry and swine continued to
progress towards regulatory submission broadly according to plan, with
launches planned for 2026 and 2027
David Hallas, Chief Executive Officer of ECO Animal Health Group plc,
commented: "We are delighted to report on a period of strong progress for the
Group, with financial performance ahead of guidance. We have seen market
conditions return to normal in key regions such as China, while new business
activity in the USA has also contributed to a significant increase in revenues
year-over-year. Coupled with strengthening gross margins, this has driven a
substantial improvement in adjusted EBITDA for the period.
"Post-period end, we achieved an important milestone in our R&D pipeline
through the receipt of a Positive Opinion from the European Medicines Agency
for ECOVAXXIN(®) MS. The Positive Opinion is a precursor to EU marketing
authorisation which we expect to receive during H1 2026. Subject to this, we
anticipate commercially launching ECOVAXXIN(®) MS in H2 CY2026.
"We continue to expect an H2 weighting for FY 2026, due to historically
observed higher demand for Aivlosin(®) associated with the Northern
Hemisphere winter. Together with our signed order books for H2 and current run
rate, our strong H1 performance is underpinning confidence from the Board in
reporting FY 2026 results in-line with current market expectations*."
* Market consensus for the year ending 31 March 2026 is
understood to be revenue of £83.8 million and adjusted EBITDA of £7.7
million
Forward-Looking Statements
This announcement contains certain forward-looking statements. The
forward-looking statements reflect the knowledge and information available to
the Company and Group during preparation and up to the publication of this
announcement. By their very nature, these statements depend upon circumstances
and relate to events that may occur in the future and thereby involve a
degree of uncertainty. Therefore, nothing in this announcement should be
construed as a profit forecast by the Company or Group.
Contacts
020 8447 8899
ECO Animal Health Group plc
David Hallas (Chief Executive Officer)
Christopher Wilks (Chief Financial Officer)
ICR Healthcare
Mary-Jane Elliott 020 3934 6630
Jessica Hodgson
Singer Capital Markets (Nominated Adviser & Joint Broker)
Philip Davies 020 7496 3000
Sam Butcher
Panmure Liberum (Joint Broker)
Emma Earl 020 3100 2000
Will Goode
Mark Rogers
Rupert Dearden
Equity Development
Hannah Crowe 020 7065 2692
Matt Evans
About ECO Animal Health
ECO Animal Health is a world leader in animal health, developing and marketing
branded veterinary pharmaceuticals globally, with expertise in antibiotics and
vaccines for pigs and poultry. We have a maturing proprietary R&D
pipeline.
Headquartered in the UK, with global offices including R&D and
manufacturing, we have marketing authorisations in over 70 countries and
employ over 200 people worldwide.
Our lead product, Aivlosin(®) is a proprietary, patented medication which is
effective against both respiratory and intestinal diseases in pigs and
poultry.
Click here for more information: https://ecoanimalhealth.com
(https://ecoanimalhealth.com)
CHAIRMAN AND CHIEF EXECUTIVE'S COMBINED STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025
The Board is pleased to present the results for the Group for the six months
ended 30 September 2025 ("H1 2025"). During the first half of the financial
year, the Group experienced continuing sales momentum and gross margin
improvement. The China market returned to a more usual level of sales after a
disappointing H1 in the prior year. Pass through of price increases, the
expiry of some discounting agreements and control of input costs has seen
gross margins increase substantially compared to the prior year.
This significant increase in revenues and improvement in gross margins,
combined with overhead management, has resulted in a material increase in
operating profit and adjusted EBITDA. Investment in the Group's promising
R&D pipeline increased and we were pleased to recently report that a
Positive Opinion was received from the Committee for Medicinal Products for
Veterinary Use ("CVMP") of the European Medicines Agency ("EMA") for the
marketing approval of ECOVAXXIN(®) MS, a poultry vaccine against Mycoplasma
synoviae, with marketing authorisation expected in H1 CY2026. This represents
the first output from the investment in R&D and marks a significant
milestone in the development of the Group.
Financial Performance
Group revenue was 19% higher in H1 2025 at £39.4 million (H1 2024: £33.2
million). China and Japan revenue of £12.1 million represented 31% of Group
revenue (H1 2024: 25%). On a constant currency basis, the Group's revenue in
H1 2025 was £41.0 million; an increase of 23% compared with H1 2024. The
principal currency effects were from a weaker US Dollar and Chinese RMB
compared with Sterling during the period.
The gross margin in H1 2025 was 49.6% (H1 2024: 40.3%). Gross margins were
impacted by exchange rate losses but offset by savings in cost of sales. The
gross margin movement may be analysed as follows:
%
Gross margin in the six months ended 30 September 2024 40.3
Foreign exchange impact on revenue (4.0)
Foreign exchange impact on cost of sales 2.6
Reduction in input costs 4.9
Price increases 2.4
Mix, other 3.4
Gross margin in the six months ended 30 September 2025 49.6
Administrative expenses at £15.8 million were 18% higher than the comparative
period last year (H1 2024: £13.4 million). This arose in the main from higher
personnel costs relating to the accrual of bonuses associated with improved
financial performance compared with the prior year and a prudent increase in
balance sheet provisioning.
R&D expense and amounts capitalised were in aggregate a cash investment of
£4.6 million (H1 2024: £4.1 million). This represented 12% of revenue
generated in the period (H1 2024: 12%). R&D expensed to the P&L was
£2.7 million (H1 2024: £2.4 million); this represented good progress in the
Group's mid-stage and early-stage pipeline.
Earnings before interest, tax, depreciation, amortisation and impairment,
share based payments and foreign exchange movements ("Adjusted EBITDA") were
£3.0 million (H1 2024: £0.4 million). This increase was principally due to
the strong revenue and margin.
Cash generated from operations was an inflow of £0.2 million (H1 2024:
£nil). The underlying cash profits in the period (operating cash flows before
movements in working capital) improved significantly to £3.0 million (H1
2024: £0.8 million). The unwind of year end trade payables resulted in an
adverse movement in working capital. Trade receivables generated £5.1 million
as the high debtors from year end were collected.
Cash balances as at 30 September 2025 can be analysed as follows:
At 30 September
2025 2024
(£'m) (£'m)
Held in UK 3.6 6.9
Held in non-China subsidiaries 2.6 1.2
Held in China 100% owned subsidiary 3.2 1.5
Held in China 51% owned subsidiary 9.2 8.7
18.6 18.3
The Group repatriates cash from China by annual dividend declarations; this is
subject to withholding taxes of 5% and is paid according to the relevant
shareholdings. On a day‐to‐day basis, the Board considers the cash held
in the Group's joint venture subsidiary in China to be unavailable to the
Group outside of China; accordingly, cash management and funds available for
investment in R&D is based upon the cash balances outside of China.
During June 2025, dividends net of withholding tax totalling £3.4 million (H1
2024: £2.8 million) were received from China.
The Group's committed banking facilities remain at £15.0 million, being a
£5.0 million overdraft facility and a £10.0 million revolving credit
facility ("RCF"). During the current facility period the Group has not drawn
down the RCF. These facilities expire on 30 June 2026 and were undrawn as at
30 September 2025.
Basic loss per share in the six months ended 30 September 2025 was greatly
improved at 0.54p (H1 2024: loss 2.50p), reflecting the strong revenue and
gross margin performance in the period.
Business Performance
The geographical analysis of the Group's revenue in the six months ended 30
September 2025 compared to the prior period in 2024 and the full year ended 31
March 2025 was as follows:
Revenue Summary 6 months ended 30 September Year ended
2025 2024 H1 25 vs H1 24 31 March 2025
(£'m) (£'m) % Change (£'m)
China and Japan 12.1 8.2 48% 22.9
North America (USA and Canada) 11.2 8.6 30% 21.4
South and Southeast Asia 4.8 5.1 (6%) 11.9
Latin America 7.5 8.3 (10%) 16.3
Europe 2.4 2.1 14% 4.9
Rest of World and UK 1.4 0.9 56% 2.2
Total Group 39.4 33.2 19% 79.6
Group revenue increased by 19% to £39.94 million (H1 2024: £33.2 million).
On a constant currency basis, the increase in revenue was 23% in H1 2025
compared with H1 2024. The main components of this revenue increase were China
(increase of £5.4 million), and North America (increase of £2.6m) partly
offset by declines in Japan (£1.4 million) and Brazil (£1.0 million).
Revenue performance in China returned to more normal trading after low disease
incidence during the early summer months of 2024 saw a significant reduction
in revenue from trend in the prior year. Whilst pork prices have softened
somewhat over the summer, we expect China to continue trading in line with
historical trends. Japan has seen reduced revenue from prior year but is in
line with the contractual agreements with its customer base.
The USA business has traded well retaining customers and winning new business
and Aivlosin(®) has been the product of choice during severe disease
outbreaks and for mycoplasma eradication programmes. Canada has traded in line
with the prior year.
Southeast Asia benefitted from the regaining of business in Thailand lost in
the prior year, and successful entries into the markets of Vietnam and
Philippines. However, the Group has recorded subdued sales in India due to
challenging poultry producer economics in the first half.
Latin America has traded flat this year, however a restructuring of our
commercial operations in Brazil is yielding improved local margins and sales
are recovering.
The pig and poultry health markets are both experiencing continuing growth,
but each faces distinct macroeconomic pressures and opportunities. The food
animal sector faces pressures from zoonotic diseases and limited healthcare
innovation (compared to companion animal health), necessitating advancements
in vaccines and digital technologies. Addressing antimicrobial resistance and
environmental impacts are key areas for future development.
The global swine healthcare market was valued at USD 3.2 billion in 2024 and
is projected to reach USD 5.6 billion by 2033, growing at a CAGR of c. 6.15%.
Key drivers include the rising demand for pork in Asia, expansion of
commercial swine farming, and heightened awareness of pork-transmitted
diseases. However, producers continue to battle persistent health challenges
(such as PRRS virus). Macroeconomic factors such as trade policy shifts,
disease outbreaks in Europe, and consumer demand for responsibly produced pork
are shaping profitability, while sustainability pressures are pushing farms
toward more biosecure and welfare-focused practices in some markets.
For poultry, the outlook is comparatively resilient. The global poultry market
is forecast to grow 2.5% in 2025, maintaining steady expansion despite trade
and disease pressures. Poultry continues to be the most affordable protein
source, especially as beef and pork prices rise, making it a cornerstone of
food security in emerging markets. Lower feed costs, thanks to improved grain
harvests, are boosting profitability across regions. The poultry health
segment itself is expected to expand at a CAGR of 8.5% between 2025 and 2030,
driven by demand for vaccines, anti-infectives and diagnostic tools. Overall,
the poultry sector benefits from balanced supply and strong consumer demand,
but sustained investment in biosecurity and disease prevention will be
essential to maintaining margins and ensuring long-term stability.
Accelerated growth through R&D investment
This year has represented an inflection point in the Group's new product
development programme. The first product from the Group's R&D pipeline,
ECOVAXXIN(®) MS, should shortly receive marketing approval in the EU. A
Positive Opinion (the precursor to marketing approval) was received several
months early, reflecting the high-quality dossier and technical responses
provided. The Board continues to believe that the wider R&D portfolio is
extremely valuable and will create long-term value for shareholders,
underpinning the Group's next phase of growth.
In the USA marketing approval by the US Department of Agriculture ("USDA") is
achieved through a staged (chapter-by-chapter) submission process.
ECOVAXXIN(®) MS in the US was initially delayed due to trial timing, however,
the key trial (the pivotal efficacy study) has now been accepted by the USDA
and marketing approval is now expected by end of CY2026. The UK dossier has
been ready for submission for some months, but the UK Veterinary Medicines
Directorate has been unable to nominate a diary date for receipt of the
dossier. The Board is expecting a delay of six months in the UK approval but
this represents a minor market with peak revenues of less than £0.5m.
ECOVAXXIN(®) MG is our second Mycoplasma poultry vaccine, targeted against
Mycoplasma gallisepticum infection with first marketing approval in EU and US
expected at the end of CY2027. In the medium term, second phase projects, the
PCV2/Mhyo bivalent vaccine for pigs is demonstrating strong efficacy,
particularly in the PCV2 component of the vaccine. It is expected that the
programme will be delayed due to the need to repeat studies, with marketing
approval expected in 2028.
Key trials have been underway to progress the Group's monoclonal antibody
approach to the prevention and treatment of PRRS virus as well as undertaking
highly innovative work on the Group's project to use monoclonal antibodies in
addressing the significant disease of necrotic enteritis in poultry. Both
projects are on track to their next milestones and are showing highly
encouraging results.
The products in our pipeline are highly complementary to our successful
existing Aivlosin(®) based business, addressing the same markets, producers,
distributors and diseases. As revenue and profits are generated from these new
products the resulting cashflow will be applied in a progressive way to
dividend distribution, further enhancing shareholder value.
We are also delighted to disclose that we have engaged Dr Ian Thompson as
interim Head of R&D. He was previously Global Head of Vaccine R&D at
Elanco Animal Health until 2019 and has worked as an R&D consultant from
2019 for a number of companies, including ECO.
Employee benefit trust purchasing of EAH shares
Following the approval granted in the General Meeting held on 21 August 2025
(and re-confirmed by resolution in the AGM held on 25 September 2025) the
Company's Employee Benefit Trust ("the EBT") has been gifted a total of
£500,000 in 2025 to date and has deployed these funds in the purchase of
shares in ECO Animal Health Group plc. These shares have been purchased in
general trading in the AIM market of the London Stock Exchange and the
trustees have been advised by the Company to hold these shares and transfer
them to employees in the event that share incentives (granted under the
Company Share Option Plan, Long Term Incentive Plan and Deferred Bonus Plan)
vest. In addition, the EBT purchased 270,000 shares (cost £204,000) during
the year ended 31 March 2025. The number of shares purchased as at 28 November
2025 and price paid are as follows:
Date of purchase Shares purchased Price paid (including charges)
Year ended 31 March 2025 270,000 203,890
19/09/2025 50,000 42,035
26/09/2025 65,000 58,919
03/10/2025 35,000 33,819
10/10/2025 55,000 53,133
17/10/2025 50,000 44,329
24/10/2025 50,000 41,534
31/10/2025 50,000 41,635
07/11/2025 50,000 41,194
Totals to date 675,000 560,488
Average price per share (p) 83.03
The EBT continues to buy shares in the market until the maximum of £1 million
or 1.7 million shares is reached (whichever is first achieved).
Strategy
The Group's strategy is to continue to protect and expand the flagship branded
anti-microbial Aivlosin(®) while making targeted investment in our R&D
pipeline of focused new product development. Our strategy review has endorsed
this vision, objectives and pathway and the receipt of the Positive Opinion
from the EMA for ECOVAXXIN(®) MS puts us on course, subject to approval, for
commercialisation in CY 2026. The value in Aivlosin(®) will be reinforced
through further investment in technical and marketing support, while we
continue to invest in our valuable R&D pipeline to progress innovative new
products to commercialisation.
Specific priorities have been identified to bring our near-to-market projects
to completion, preparations for their launch are well underway and business
partners identified. Defence against generic competition within the
Aivlosin(®) business arena is robust and reinforced with sound technical and
marketing initiatives.
The Group is actively pursuing opportunities to collaborate through licencing
in or buying new products and licencing out late and mid stage R&D
programmes.
Our values
Our values, the "3 C's" of Curiosity, Commitment and Collaboration are, we
believe, the critical success factors which will drive the Group towards
achieving its vision.
People
Our people, selected from the best in the animal health industry, ensure that
the Group's ambitions are achievable. The alignment of personal values and
the Group's values are central to employee engagement. The Group is proud of
its social and charitable initiatives, particularly as many of these are
employee led. The Board wishes to thank our people for their continuing
diligence, active engagement and effort throughout the period.
Outlook
The Group expects that the historically observed increased demand for
Aivlosin(®) associated with the Northern Hemisphere winter will once again
result in a stronger second half to our year. 86% (H1 2024: 82%) of the market
consensus revenue for the year ending 31 March 2026 is covered by year-to-date
revenue, order books and run rate from the Group's stocking locations
(excluding China). Additionally, the first half currency headwinds have
normalised and the phasing and mix of revenues, inventory usage and costs all
support the forward profitability. The Board will continue, during the
remainder of this financial year, to invest in our exciting new product
pipeline and pursue options to realise value.
The Board looks forward with confidence to reporting the full year numbers in
line with market expectations.
Dr Joachim
Hasenmaier
Dr David Hallas
Chairman
Chief Executive Officer
CONSOLIDATED INCOME STATEMENT
Six months to 30.09.25 (unaudited) Six months to 30.09.24 (unaudited) Year ended 31.03.25 (audited)
Notes £000's £000's £000's
Revenue 6 39,399 33,182 79,596
Cost of sales (19,847) (19,818) (43,682)
Gross profit 19,552 13,364 35,914
49.6% 40.3% 45.1%
Administrative expenses (15,825) (13,388) (28,727)
Research and development expenses (2,685) (2,350) (3,988)
Other income 122 148 148
Exceptional items 7 - 1,046 954
Operating profit/(loss) 1,164 (1,180) 4,301
Share of profit of associate 39 40 50
Finance income 33 59 110
Profit/(loss) before financing and income tax 1,236 (1,081) 4,461
Finance costs (177) (336) (452)
Profit/(loss) before income tax 1,059 (1,417) 4,009
Income tax charge 9 (349) (343) (1,375)
Profit/(loss) for the year 710 (1,760) 2,634
Profit/(loss) attributable to:
Owners of the parent Company (363) (1,697) 1,686
Non-controlling interest 1,073 (63) 948
Profit/(loss) for the year 710 (1,760) 2,634
(Loss)/earnings per share (pence) 8 (0.54) (2.50) 2.49
Diluted (loss)/earnings per share (pence) 8 (0.54) (2.50) 2.43
Adjusted EBITDA (Non-GAAP measure) 6 2,963 445 7,299
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months to 30.09.25 (unaudited) Six months to 30.09.24 (unaudited) Year ended 31.03.25 (audited)
£000's £000's £000's
Profit/(loss) for the year 710 (1,760) 2,634
Other comprehensive loss:
Items that may be reclassified to profit or loss:
Foreign currency translation differences (753) (240) (368)
Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit pension schemes - - (14)
Other comprehensive loss for the year (753) (240) (382)
Total comprehensive (loss)/income for the year (43) (2,000) 2,252
Attributable to:
Owners of the parent Company (904) (1,684) 1,611
Non-controlling interest 861 (316) 641
(43) (2,000) 2,252
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Revaluation Reserve Treasury Other Reserves Foreign Exchange Reserve Retained Earnings Total Non-controlling Interest Total Equity
Shares
Reserves
£000's £000's £000's £000's £000's £000's £000's £000's £000's £000's
Balance at 31 March 2024 3,387 63,319 271 - 106 788 15,819 83,690 9,690 93,380
Profit for the year - - - - - - 1,686 1,686 948 2,634
Other comprehensive income:
Foreign currency differences - - - - - (41) (20) (61) (307) (368)
Actuarial gains on pension - - - - - - (14) (14) - (14)
scheme assets
Total comprehensive income for the year - - - - - (41) 1,652 1,611 641 2,252
Transactions with owners:
Issue of shares in the year 1 - - - - - - 1 - 1
Acquisition of shares by EBT - - - (204) - - - (204) - (204)
Share-based payments - - - - - - 401 401 - 401
Dividends - - - - - - - - (1,065) (1,065)
Transactions with owners 1 - - (204) - - 401 198 (1,065) (867)
Balance at 31 March 2025 3,388 63,319 271 (204) 106 747 17,872 85,499 9,266 94,765
Profit for the period - - - - - - (363) (363) 1,073 710
Other comprehensive income:
Foreign currency differences - - - - - (541) - (541) (212) (753)
Total comprehensive income for the period - - - - - (541) (363) (904) 861 (43)
Transactions with owners:
Acquisition of shares by EBT - - - (100) - - - (100) - (100)
Share-based payments - - - - - - 258 258 - 258
Dividends - - - - - - - - (2,494) (2,494)
Transactions with owners - - - (100) - - 258 158 (2,494) (2,336)
Balance at 30 September 2025 3,388 63,319 271 (304) 106 206 17,767 84,753 7,633 92,386
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Revaluation Reserve Other Reserves Foreign Exchange Reserve Retained Earnings Total Non-controlling Interest Total Equity
£000's £000's £000's £000's £000's £000's £000's £000's £000's
Balance at 31 March 2023 3,381 63,319 657 106 1,878 13,929 83,270 12,281 95,551
Profit for the year - - - - - 1,048 1,048 960 2,008
Other comprehensive income:
Foreign currency differences - - - - (1,090) - (1,090) (738) (1,828)
Actuarial gains on pension - - - - - 43 43 - 43
scheme assets
Total comprehensive income for the year - - - - (1,090) 1,091 1 222 223
Transactions with owners:
Issue of shares in the year 6 - - - - - 6 - 6
Revaluation reserve - - (386) - - 386 - - -
Share-based payments - - - - - 413 413 - 413
Dividends - - - - - - - (2,813) (2,813)
Transactions with owners 6 - (386) - - 799 419 (2,813) (2,394)
Balance at 31 March 2024 3,387 63,319 271 106 788 15,819 83,690 9,690 93,380
Loss for the period - - - - - (1,697) (1,697) (63) (1,760)
Other comprehensive income:
Foreign currency differences - - - - 13 - 13 (253) (240)
Total comprehensive income for the period - - - - 13 (1,697) (1,684) (316) (2,000)
Transactions with owners:
Share-based payments - - - - - 186 186 - 186
Dividends - - - - - - - (1,065) (1,065)
Transactions with owners - - - - - 186 186 (1,065) (879)
Balance at 30 September 2024 3,387 63,319 271 106 801 14,308 82,192 8,309 90,501
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Group
As at 30.09.25 (unaudited) As at 30.09.24 (unaudited) As at 31.03.25 (audited)
Notes £000's £000's £000's
Non-current assets
Intangible assets 10 43,169 39,561 41,834
Property, plant and equipment 3,570 4,296 4,038
Right-of-use assets 4,696 3,274 3,399
Investments 344 310 316
Deferred tax assets 1,102 1,316 1,074
Total non-current assets 52,881 48,757 50,661
Current assets
Inventories 15,976 16,745 14,553
Trade and other receivables 23,970 26,778 28,516
Income tax recoverable 1,431 991 1,143
Other taxes and social security 1,063 160 724
Cash and cash equivalents 18,635 18,298 25,006
Total current assets 61,075 62,972 69,942
TOTAL ASSETS 113,956 111,729 120,603
Current Liabilities
Trade and other payables (9,765) (10,826) (15,071)
Provisions (5,466) (5,143) (4,964)
Income tax payable (319) 30 (801)
Other taxes and social security payable (29) (306) (305)
Lease liabilities (754) (574) (621)
Dividends (50) (50) (50)
Total current liabilities (16,383) (16,869) (21,812)
Net current assets 44,692 46,103 48,130
Total assets less current liabilities 97,573 94,860 98,791
Non-current liabilities
Deferred tax liabilities (879) (1,279) (862)
Lease liabilities (4,308) (3,080) (3,164)
TOTAL ASSETS LESS TOTAL LIABILITIES 92,386 90,501 94,765
EQUITY
Issued share capital 3,388 3,387 3,388
Share premium account 63,319 63,319 63,319
Revaluation reserve 271 271 271
Treasury shares reserve (304) - (204)
Other reserves 106 106 106
Foreign exchange reserve 206 801 747
Retained earnings 17,767 14,308 17,872
Shareholders' funds 84,753 82,192 85,499
Non-controlling interests 7,633 8,309 9,266
TOTAL EQUITY 92,386 90,501 94,765
Consolidated Cash Flow Statement
Group
Six months to 30.09.25 (unaudited) Six months to 30.09.24 (unaudited) Year ended 31.03.25 (audited)
£000's £000's £000's
Cash flows from operating activities
Profit/(loss) before income tax 1,059 (1,417) 4,009
Adjustment for:
Finance income (33) (59) (110)
Finance cost 177 336 452
Foreign exchange loss 170 1,158 720
Depreciation 462 451 984
Amortisation of right-of-use assets 339 316 681
Amortisation of intangible assets 570 560 1,166
Share of associate's results (39) (40) (50)
Share based payment charge 258 186 401
Exceptional items - (736) (954)
Operating cash flows before movements in working capital 2,963 755 7,299
(Increase)/decrease in inventory (1,416) (153) 2,088
Decrease/(increase) in receivables 5,085 5,298 4,156
Decrease in payables (6,741) (5,571) (1,339)
Increase/(decrease) in provision and pensions 291 (333) (90)
Cash generated from/(used in) operations 182 (4) 12,114
Finance costs (88) (130) (200)
Income tax (1,147) 627 (1,466)
Net cash (used in)/from operations (1,053) 493 10,448
Cash flows from investing activities
Acquisition of property, plant and equipment (69) (100) (356)
Purchase of intangibles (1,905) (1,769) (4,648)
Net cash flow from disposal and acquisition activities - 380 288
Finance income 33 59 110
Net cash (used in)/from investing activities (1,941) (1,430) (4,606)
Cash flows from financing activities
Proceeds from issue of share capital - - 1
Interest paid on lease liabilities (88) (206) (252)
Principal paid on lease liabilities (351) (282) (638)
Dividends paid (2,494) (1,065) (1,065)
Net cash used in financing activities (2,933) (1,553) (1,954)
Net (decrease)/increase in cash and cash equivalents (5,927) (2,490) 3,888
Foreign exchange movements (444) (1,586) (1,256)
Balance at the beginning of the period 25,006 22,374 22,374
Balance at the end of the period 18,635 18,298 25,006
NOTES TO THE PRELIMINARY RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2025
1. General information
ECO Animal Health Group plc ("the Company") and its subsidiaries (together
"the Group") manufacture and supply animal health products globally.
The Company is traded on the AIM market of the London Stock Exchange and is
incorporated and domiciled in the UK. The address of its registered office is
The Grange, 100 High Street, Southgate, London, N14 6BN.
2. Summary of the Group's significant accounting
policies
2.1 Basis of preparation
The financial information for the period to 30 September 2025 does not
constitute statutory accounts as defined by Section 435 of the Companies Act
2006. It has been prepared in accordance with the accounting policies set out
in, and is consistent with, the audited financial statements for year ended 31
March 2025.
This Interim Statement has not been audited or reviewed by the Group's
auditors.
2.2 Statement of compliance
This Interim Statement is prepared in accordance with IAS 34 "Interim
Financial Reporting". Accordingly, whilst the Interim Statement has been
prepared in accordance with IFRS, and the primary statements follow the format
of the annual financial statements, only selected notes are included - those
that provide an explanation of events and transactions that are significant to
an understanding of the changes in financial position and performance of the
Group since the last annual reporting date. IAS 34 states a presumption that
anyone who reads the Group's Interim Statement will also have access to its
most recent annual report. Accordingly, annual disclosures are not repeated in
this Interim Statement.
3. Changes to significant accounting policies and
other restatements
The principal accounting policies which are adopted by the Group in the
preparation of its financial statements are set out in in the consolidated
financial statements of the Group for the year ended 31 March 2025. These
policies have been consistently applied to all prior years. The Group's
accounting policies have been consistently applied in accordance with IFRS for
the six months ended 30 September 2025.
As set out in the consolidated financial statements of the Group for the year
ended 31 March 2025, new standards and amendments came into effect during the
financial year. These standards and amendments do not have a material impact.
4. Revenue
Revenue is derived from the Group's animal pharmaceutical businesses.
5. Principal risks and uncertainties
The principal risks and uncertainties relating to the Group were set out on
pages 26-27 of the Group's Annual Report and Accounts for the year ended 31
March 2025. The key exposures are high reliance on a small number of
outsourced product, manufacturing and research suppliers, high dependency on a
single product, potential threat from generic producers, readiness and market
appetite for launch of new vaccine products portfolio, political and economic
unpredictability, risk of fraud and depletion of Group funds and insufficient
funding for business growth have remained unchanged since the year end.
.
6. Segment information
Management has determined the operating segments based on the reports reviewed
by the Board to make strategic decisions. The Board considers the business
from a geographical perspective. Geographically, management considers the
performance in Corporate/UK, China and Japan, North America, South and
Southeast Asia, Latin America, Europe and the Rest of the World.
Revenues are geographically allocated by the destination of customer.
The performance of these geographical segments is measured using Earnings
before Interest, Tax, Depreciation and Amortisation ("Adjusted EBITDA"),
adjusted to exclude share-based payments, revaluation, impairment and
personnel related litigation matters. Adjusted EBITDA is a non-GAAP measure
used by management to assess the underlying business performance.
Corporate China & Japan North America S & SE Asia Latin America Europe Rest of World Total
/UK
£000's £000's £000's £000's £000's £000's £000's £000's
Six months to 30.09.25 (unaudited)
Sale of goods 521 12,079 11,165 4,845 7,478 2,381 930 39,399
Royalties - - - - - - - -
Revenue from external customers 521 12,079 11,165 4,845 7,478 2,381 930 39,399
Adjusted EBITDA (11,622) 5,189 4,407 1,835 1,548 977 459 2,793
Six months to 30.09.24 (unaudited)
Sale of goods 583 8,164 8,594 5,079 8,334 2,145 283 33,182
Royalties - - - - - - - -
Revenue from external customers 583 8,164 8,594 5,079 8,334 2,145 283 33,182
Adjusted EBITDA (7,856) 1,827 2,384 1,723 540 531 138 (713)
Year ended 31.03.25 (audited)
Sale of goods 1,110 22,898 21,414 11,854 16,307 4,913 796 79,292
Royalties - - - - - - 304 304
Revenue from external customers 1,110 22,898 21,414 11,854 16,307 4,913 1,100 79,596
Adjusted EBITDA (16,986) 7,349 7,529 4,974 1,993 1,035 685 6,579
A reconciliation of Adjusted EBITDA for reportable segments to profit from
operating activities is provided as follows:
Six months to 30.09.25 (unaudited) Six months to 30.09.24 (unaudited) Year ended 31.03.25 (audited)
£000's £000's £000's
Adjusted EBITDA for reportable segments 2,793 (713) 6,579
Depreciation (462) (451) (984)
Amortisation of right-of-use assets (339) (316) (681)
Amortisation (570) (560) (1,166)
Exceptional items - 1,046 954
Share-based payment charges (258) (186) (401)
Operating profit/(loss) from operating activities 1,164 (1,180) 4,301
Adjusted EBITDA for reportable segments 2,793 (713) 6,579
Foreign exchange differences 170 1,158 720
Adjusted EBITDA for the Group 2,963 445 7,299
7. Exceptional items
Six months to 30.09.25 (unaudited) Six months to 30.09.24 (unaudited) Year ended 31.03.25 (audited)
£000's £000's £000's
Profit on disposal of Ecomectin(®) Horsepaste assets - 1,046 1,073
Cost associated with acquisition activities - - (249)
Profit on disposal of Southern African licences - - 176
Other - - (46)
- 1,046 954
8. (Loss)/earnings per share
The calculation of basic earnings per share is based on the profit/(loss)
attributable to owners of the parent company divided by the weighted average
number of shares in issue during the year.
Six months to 30.09.25 (unaudited) Six months to 30.09.24 (unaudited) Year ended 31.03.25 (audited)
Earnings Weighted average number of shares Per share amount Earnings Weighted average number of shares Per share amount Earnings Weighted average number of shares Per share amount
£000's 000's pence £000's 000's pence £000's 000's pence
Earnings attributable to ordinary shareholders on continuing operations after (363) 67,760 (0.54) (1,697) 67,745 (2.50) 1,686 67,760 2.49
tax
Less the weighted average number of options held by the EBT - (275) - - - - - (130) -
Dilutive effect of share options - - - - - - - 1,812 -
Diluted earnings per share (363) 67,485 (0.54) (1,697) 67,745 (2.50) 1,686 69,442 2.43
The diluted EPS figure reflects the impact of historic grants of share options
and is calculated by reference to the number of options granted for which the
average share price for the year was in excess of the option exercise price.
As the Group's result for the six months ended 30 September 2025 was loss,
there was no dilutive effect on the earnings per share in this period.
9. Taxation
The effective rate of the tax charge in the six months to 30 September 2025 is
33% which is higher than the effective rate in the six months to 30 September
2024 of minus 24%. The effective rate reflects the impact of tax losses
incurred without recognising a corresponding deferred tax asset and of
withholding taxes suffered on dividends received during the period.
10. Intangible assets
Group Goodwill Distribution rights Drug registrations, patents and licence costs Total
£000's £000's £000's £000's
Cost
At 31 March 2024 17,930 407 29,546 47,883
Additions - - 1,770 1,770
At 30 September 2024 17,930 407 31,316 49,653
Additions - - 2,878 2,878
Disposal - - (105) (105)
At 31 March 2025 17,930 407 34,089 52,426
Additions - - 1,905 1,905
At 30 September 2025 17,930 407 35,994 54,331
Amortisation
At 31 March 2024 - (198) (9,334) (9,532)
Charge for the period - (10) (550) (560)
At 30 September 2024 - (208) (9,884) (10,092)
Charge for the period - (10) (596) (606)
Disposal - - 106 106
At 31 March 2025 - (218) (10,374) (10,592)
Charge for the period - (10) (560) (570)
At 30 September 2025 - (228) (10,934) (11,162)
Net book value
At 30 September 2025 17,930 179 25,060 43,169
At 31 March 2025 17,930 189 23,715 41,834
At 30 September 2024 17,930 199 21,432 39,561
At 31 March 2024 17,930 209 20,212 38,351
The amortisation charges are included within administrative expenses in the
income statement.
The Group continuously reviews the status of its research and development
activity, paying close attention to the likelihood of technical success and
the commercial viability of development projects. In the six months ended 30
September 2025 there were no indications that any development projects for
which costs have previously been capitalised were unlikely to achieve
technical success or commercial viability.
11. Related party transactions
Interest and management charges from Parents to the other Group companies
During the period Zhejiang ECO Animal Health Ltd paid gross dividends of
£970,228 (RMB 9,529,703) to ECO Animal Health Ltd (H1 2024: £1,860,759).
During the period Zhejiang ECO Biok Animal Health Products Limited paid gross
dividends of £198,979 (RMB 1,960,000) to ECO Animal Health Group plc (H1
2024: £85,217) and £2,396,631 (RMB 23,540,000) to ECO Animal Health Limited
(H1 2024: £1,023,478).
The Company's Employee Benefit Trust
During the period the Group's Employee Benefit Trust acquired 115,000 shares
in Eco Animal Health Group plc for £100,000 (H1 2024: Nil).
This financial information was approved by the board on 28 November 2025.
This interim statement is available on the Group's website.
DIRECTORS AND OFFICERS Joachim Hasenmaier Non-Executive Chairman
David Hallas Chief Executive Officer
Christopher Wilks Chief Financial Officer
Frank Armstrong Non-Executive Director
Tracey James Non-Executive Director
REGISTERED OFFICE The Grange, 100 High Street, Southgate, London, N14 6BN
Tel: 020 8447 8899
COMPANY NUMBER 01818170
INFORMATION AT www.ecoanimalhealth.com
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