REG - Eco Animal Health Gp - Trading update, Appointment of Joint Broker & CMD

ECO Animal HealthAnnouncement

12/01/2022 07:00

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RNS Number : 1321Y  Eco Animal Health Group PLC  12 January 2022

 

ECO Animal Health Group plc

(''ECO" or "the ECO Group") (AIM: EAH)

 

 Trading update, Appointment of Joint Broker and Capital Markets Day

 

ECO Animal Health Group plc, a leader in the development, registration and
marketing of pharmaceutical products for global animal health market provides
an update on its operations in China.

 

The pork price in China has increased from less than RMB12/kg in early October
2021 to over RMB18/kg in early December 2021 before settling between RMB15/kg
and RMB16/kg in early January 2022. Whilst the improvement in the pork price
has resulted in improved trading conditions for pork producers, the commodity
price continues to be volatile and producers remain cautious. Consequently,
sales of Aivlosin® during the first three quarters of our financial year are
subdued compared to the same period last year. However, revenue generated
elsewhere in the Group continues in line with the prior year and, overall, the
Board expects to report full year revenue in line with current market
expectations. Cash repatriation from China has progressed as planned with both
the royalty payment and dividend (totalling £4.6 million) having been
received by ECO.  Additionally, ECO has used some of its cash in its wholly
owned Chinese subsidiary to assist with non-China cashflows and provide
greater headroom for the ECO Group.

 

ECO is also exploring the possibility of increasing its banking facilities to
provide greater flexibility to support ECO's growth plans.

 

Appointment of Joint Broker and Capital Markets Day

 

As part of the development of the ECO Group, the Board of Directors has
appointed Investec Bank plc ("Investec") as a joint broker with immediate
effect.  Singer Capital Markets ("SingerCM") is retained as Nominated Advisor
and joint broker and Peel Hunt LLP continues as joint broker ("Peel Hunt").

 

ECO plans to hold a Capital Markets Day at 9.00 a.m. on 26 January 2022. It is
currently expected that the meeting will be held virtually to comply with
current Covid-19 guidelines. Planning is underway and Investec, SingerCM and
Peel Hunt will confirm participation arrangements in due course. The meeting
will aim to provide insight into the ECO Group's research and new product
development activities.

 

Marc Loomes, CEO said:

"The pork commodity price in China is an important cornerstone to our business
and we look forward to a steady recovery in that market. Despite difficult
market conditions for the business in China, the Board expects, overall, to be
reporting full year revenue in line with market expectations."

 

"ECO started a programme of significant R&D investment in vaccines about
four years ago and, notwithstanding that the programme is on-going, we have
seen meaningful progress. We look forward to sharing some exciting insights
and providing further details of the potential commercial value that exists
within our new product development pipeline to existing and potential
investors, analysts and media at the upcoming Capital Markets Day."

 

The information contained within this announcement is deemed by the Group to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR") as it forms part of United Kingdom domestic law by
virtue of the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement via a Regulatory Information Service ("RIS"), this inside
information is now considered to be in the public domain.

 

Contacts:

                                                                020 8447 8899

 ECO Animal Health Group plc

 Marc Loomes (CEO)

 Chris Wilks (FD)

 IFC Advisory                                                   020 3934 6630

 Graham Herring

 Zach Cohen

 Singer Capital Markets (Nominated Adviser & Joint Broker)      020 7496 3000

 Mark Taylor

 George Tzimas

 Investec (Joint Broker)                                        020 7597 5970

 Gary Clarence

 Alex Penney

 Carlo Spingardi

 Peel Hunt LLP (Joint Broker)                                   020 7418 8900

 Dr Christopher Golden

 James Steel

 

 Equity Developments  020 7065 2692

 Hannah Crowe

 Matt Evans

 

 

About ECO Animal Health

ECO Animal Health Group plc ("ECO" or "the "GROUP") researches, develops and
commercialises products for livestock. Our business strategy is to generate
shareholder value by achieving the maximum sales potential from the existing
product portfolio whilst investing in Research and Development ("R&D") for
new products, particularly vaccines, and seeking to in-license new products.

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