REG - Eco Animal Health Gp - Results for the year ended 31 March 2025
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RNS Number : 8967Q Eco Animal Health Group PLC 14 July 2025
14 July 2025
ECO Animal Health Group plc
("ECO" or the "Company")
Results for the year ended 31 March 2025
ECO Animal Health (AIM: EAH), a rapidly growing global animal health company
with a portfolio of marketed veterinary products and a maturing proprietary
R&D pipeline, announces its audited results for the year ended 31 March
2025.
HIGHLIGHTS
Financial
· Revenue in-line and adjusted EBITDA in-line with revised market
expectations following strong second half to the year
· Group sales of £79.6m (2024: £89.4m)
o North America revenue growth of 16%, contributing a growing share of Group
revenues
· Constant currency revenue £81.6m (2024: £89.4m)
· Gross margin increased to 45% (2024: 42%), due to disciplined cost
control and pricing, and geographical mix favouring high margin markets
· Adjusted EBITDA of £7.3m (2024: £8.0m), in line with consensus
· Adjusted EBITDA margin improved to 9.2% (2024: 9.0%)
· Research and development expenditure increased to £8.6m (2024:
£8.3m), as planned
· Profit before tax increased to £4.0m (2024: £3.0m), driven in part
by disposals of non-core assets
· Earnings per share increased by 61% to 2.49p (2024: 1.55p)
· Net cash at the end of the period £25.0m (2024: £22.4m),
reinforcing the Group's strong balance sheet with 40% of cash held outside
China (2024: 36%)
· RCF facility (£10m) and overdraft (£5m) available and undrawn
Operational
· Aivlosin® demand continues to be robust in key markets, with
particular growth in North America
· Regulatory dossier for mycoplasma poultry vaccine ECOVAXXIN® MS
submitted to EMA, with further submissions expected in next 12 months
· Broader progress across R&D pipeline, with up to 9 products
expected to receive US and EU approval in the next 5 - 6 years
Post-year end highlights
· Revenue in USA and China out performing budgets
· Gross margins strengthening
· South East Asia strong recovery with order book supporting outlook
· Continuing operational improvement including further ERP system
roll-out across subsidiaries
· Launch of share buy-back to support future employee share incentives
vesting
David Hallas, Chief Executive Officer of ECO Animal Health Group plc,
commented: "We are pleased to report another robust financial year for ECO
Animal Health, with favourable pricing, geographic mix and disciplined cost
control driving an improvement in gross margin and continued cash generation.
We've achieved this despite unusually challenging trading and market
conditions, including lower disease incidence in some regions, currency
headwinds and macroeconomic and political uncertainty."
"ECO is focused on advancing its R&D pipeline and the Company has
continued to make targeted investment to position this as the engine of future
growth. We are delighted to have submitted the dossier for Mycoplasma poultry
vaccine ECOVAXXIN® MS, with further submissions expected in the next 12
months. This lays the foundations for multiple planned vaccine launches from
2026 onwards, which we believe will underpin the next phase of growth from our
pipeline, and we look forward to updating the market on progress."
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.
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 involving 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 (Financial PR) 020 3709 5700
Mary-Jane Elliott
Jessica Hodgson
Singer Capital Markets (Nominated Adviser & Joint Broker) 020 7496 3000
Philip Davies
Sam Butcher
Investec (Joint Broker) 020 7597 5970
Gary Clarence
Lydia Zychowska
Equity Development 020 7065 2692
Hannah Crowe
Matt Evans
CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S COMBINED STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
ECO strives to provide best in class, scientifically validated, ethical
solutions to optimise the health, productivity and wellbeing of pigs and
poultry.
Overview
We are pleased to update on another positive year for ECO, with continued
investment in the Group's late-stage pipeline and further progress across our
core commercial operations. This has been achieved despite challenging trading
and market conditions, including lower disease incidence in some regions and
currency headwinds.
We are particularly pleased to have advanced our regulatory and commercial
readiness for our next generation of products. In particular, we were pleased
to submit our first poultry vaccine Marketing Authorisation Application to the
European Medicines Agency. This is an important milestone in our journey to
advance our late-stage product pipeline to commercialisation, which we are
targeting from 2026 and we believe will deliver significant long-term value to
investors.
Strong product sales and robust profitability
Total revenues for the period were £79.6m (2024: £89.4m), reflecting a
strong performance in the second half and momentum in key growth markets.
Aivlosin®, the Group's patented antimicrobial used under veterinary
prescription for respiratory and gastrointestinal disease in pigs and poultry,
remains our flagship product and it has continued to grow in North America,
Latin America and India. We secured new and renewed marketing authorisations
in a number of geographies and saw a stabilisation of pork prices in major
markets.
Sales of Aivlosin® were £72.9m (2024: £82.4m. Ecomectin® and all other
non-core products contributed £6.7m (2024: £7.0m).
Gross margin was 45.1% (2024: 42.1%). Adjusted EBITDA was £7.3m (2024:
£8.0m). The Group remained cash generative, maintaining a strong cash
position across core regions.
The North America market grew by 18% at constant exchange rates, demonstrating
another strong year of growth, and the strength of our market proposition in
that region.
China had a subdued start but recovered with the six months to 31 March 2025
3% ahead of the prior year on a constant currency basis, benefitting from both
strong disease demand and PRRSv eradication programmes.
South and South East Asia was down due to the loss of a major customer in
Thailand. However we saw good growth in the nascent markets of Bangladesh,
Philippines and Pakistan as we continue to expand our sales to new
geographies.
Research and development pipeline and regulatory progress
We continued to make progress across our proprietary pipeline during the year,
with R&D spend of £8.6m (2024: £8.3m), reflecting sustained investment
in late-stage vaccine assets.
In March 2025, ECO submitted its first EU Marketing Authorisation Application
to the European Medicines Agency for ECOVAXXIN® MS, a poultry vaccine
targeting Mycoplasma synoviae. This represents a significant milestone for the
Group, with commercial launch targeted for 2026. The submission complements
our ongoing regulatory work in the US and Europe for ECOVAXXIN® MG, the
sister vaccine against Mycoplasma gallisepticum.
We were pleased to host an R&D Day on March 13(th) 2025, where the
leadership team presented a detailed update on the Group's innovation strategy
and progress across the vaccine pipeline. Details can be found at:
https://ecoanimalhealth.com/investors/reports-presentations/
Disposal of non-core assets
As part of our ongoing focus on core species and geographies, the Group
completed the divestment of a number of non-core product lines. These included
the equine product Ecomectin® Horsepaste, sold to ACME Drugs S.r.l. for
€1.3m (£1.1m) in April 2024, as well as parasite treatment licences for
sheep and cattle in Southern Africa, sold for a total of £0.5m in February
2025.
These disposals have allowed ECO to continue streamlining its focus and
reinvesting proceeds into its R&D pipeline and share buyback programme to
cover the potential vesting of employee share incentives.
People
On behalf of the Board, we would like to thank our global team for their
continued dedication, professionalism and hard work during the year. Our
people remain at the heart of ECO's success, and we were pleased to see a
second year of improved results in our global engagement survey, reflecting
the positive impact of new wellbeing, training and workplace initiatives.
We were also proud to again receive the highest Environment, Social and
Governance (ESG) rating from Integrum ESG, a provider of independent ESG
ratings. This underlines our commitment to continually improving our
governance and prioritising social and environmental concerns in all aspects
of the business.
During the period, we further strengthened the Group through targeted hires
across science, development and commercial functions.
Governance and leadership transition
On 31 March 2025, Dr Andrew Jones retired as Chairman after six years in the
role. We would like to thank Andrew for his leadership and his significant
contributions to ECO's development and growth.
Following a planned succession process, we are pleased to confirm that Dr
Joachim Hasenmaier has now assumed the role of Chairman. Joachim brings over
two decades of international experience in animal health and has already made
a strong contribution to the Board since joining in February 2024.
Dividend
ECO's current investment strategy is to reinvest to support its extensive and
deep R&D pipeline, which the Board believes will deliver significant
revenue and profit growth and long-term shareholder value. As such no dividend
is recommended in respect of the year ended 31 March 2025.
Outlook
Aivlosin® continues to perform well in high-growth territories, and the Group
remains well positioned to take market share in North America and Latin
America. Trading continues to follow a seasonal pattern and remains
second-half weighted. We are encouraged by improving market conditions in
China.
The Group is focused on executing its commercial and R&D strategies, with
multiple vaccine launches targeted from 2026. We look forward to updating
shareholders as we continue to build a global leader in sustainable animal
health.
As of the end of our financial year, the global macroeconomic environment was
in a state of flux due to the evolving geopolitical and tariff landscape. This
has had no material impact on our financial results. International trade
tariffs in veterinary pharmaceuticals have been less affected than other
sectors, at least at the time of writing. Post-year end we altered our
pricing, which is expected to mitigate the current tariff impacts in North
America. We remain vigilant to potential changes and continue to assess any
implications on our pricing and global customer relationships. The Group will
take appropriate action should the situation change and is actively exploring
all possible solutions to mitigate any future disruption.
Dr Joachim
Hasenmaier
David Hallas,
Chairman
Chief
Executive Officer
REPORT OF THE CHIEF FINANCIAL OFFICER
FOR THE YEAR ENDED 31 MARCH 2025
Introduction
I am pleased to report a strong year with improving profits. Operationally the
business' margins improved substantially and this translated into a
significantly stronger cash balance at the end of the year.
The improving margins and resulting cashflow allowed strong progress to be
made with the Group's new product developments and a significant milestone was
reached during the year with the submission of the first vaccine for marketing
approval.
The finance function led the implementation of a new ERP system during the
year; the NetSuite project was delivered on time, within budget and without
interruption to the normal routines in the business and financial reporting.
Efficiencies have been delivered during this first year and more improvements
are expected. This is something I am very proud of and demonstrates the
Group's values in action.
Trading
Previous years have seen a pattern of stronger trading in the second half of
the year. This is associated with disease prevalence in pigs during the
northern hemisphere winter. This pattern of trading has continued in the year
ended 31 March 2025 with the second half accounting for 58% (2024: 57%) of the
annual revenue. The main contributors to the second half weight this year were
China/Japan with a 64% H2 weight and North America also with a 60% H2 weight.
The geographical analysis of revenue corresponding to the Group's operating
segments is as follows:
Revenue summary - actual exchange rates Year ended 31 March
2025 2024 % change
(£'m) (£'m)
China and Japan 22.9 24.7 (7%)
North America (USA and Canada) 21.4 18.5 16%
South and Southeast Asia 11.9 17.4 (32%)
Latin America 16.3 19.9 (18%)
Europe 4.9 6.5 (25%)
Rest of World and UK 2.2 2.4 (8%)
79.6 89.4 (11%)
Overall all markets showed revenue declines year on year except for North
America which has continued to grow strongly. As noted in our interim report,
the exchange rates in the first half proved to be a headwind; in the second
half of our financial year the exchange rates were more consistent with the
prior year. The geographical analysis of revenue on a constant currency basis
is as follows:
Revenue summary - constant currency Year ended 31 March
2025 2024 % change
(£'m) (£'m)
China and Japan 23.6 24.7 (4%)
North America (USA and Canada) 21.9 18.5 18%
South and Southeast Asia 12.1 17.4 (30%)
Latin America 16.6 19.9 (17%)
Europe 5.1 6.5 (22%)
Rest of World and UK 2.3 2.4 (4%)
81.6 89.4 (9%)
China revenue on a constant currency basis declined by 8% (£1.6m) but this
decline was compensated by strong trading in Japan, an increase of 19%
(£0.5m) year on year. However, China showed signs of improved performance in
the second half being 3% ahead of prior year for the 6 months to 31 March 2025
on a constant currency basis. China's second half performance was strong
driven by disease demand for Aivlosin in swine production - porcine
reproductive and respiratory disease syndrome virus ("PRRSv") control and
eradication programmes. This demand has continued since the year end.
At £21.4m (constant currency £21.9m), North America again grew strongly
exceeding its previous highest revenue of £18.5m in the year ended 31 March
2024. The strength in this market was also disease driven - PRRSv as well as
enteric disease resulted in demand for Aivlosin reaching record levels.
South and South East Asia revenue declined 30% on a constant currency basis.
This was principally due to the loss of a major customer in Thailand and a
slowdown in India and Vietnam. However, the year saw good growth in the
nascent markets of Bangladesh, Indonesia, Malaysia, Philippines and Pakistan
as we seek to access new markets and re-enter markets where previous marketing
authorisations had expired and been re-issued.
Latin America comprises Brazil and Mexico (where the Group operates through
wholly owned subsidiaries) and a group of other countries in South America
where trade is conducted through exclusive distribution arrangements. Brazil
on a constant currency basis was broadly flat year on year. Mexico performed
poorly during the year; excess stock levels in the distribution channels and
generic price pressure created some difficulties. Colombia had a poor year
resulting from some rearrangement of the distribution arrangements which have
now been resolved. Argentina
at £2m represented a 39% increase in revenue.
The European market segment is dominated by sales into Spain - £1.5m (2024:
£1.8m) and Poland - £1.3m (2024: £1.3m). Spain accepted the resumption of
sales of Aivlosin® Pre-Mix formulation in the period, reversing a hiatus in
sales of this product in the year ended 31 March 2024. Sales in the UK at
£1.1m (2024: £0.9m) is consistent with prior year.
Gross margins were 45.1% in the year ended 31 March 2025 (2024: 42.1%). This
improvement in gross margins arose despite the foreign exchange impact of
Sterling compared with the US Dollar and the Chinese Yuan. As noted above, on
a constant currency basis the revenues for the year are £81.6m; recalculating
the gross margin based on constant currency revenue would provide a gross
margin of 46.2%. As anticipated in our interim report for the six months ended
30 September 2024, there was a strong recovery in the gross margins in the
second half of the financial year - this was driven by the second half
weighting and geographical mix favouring high margin markets.
The Group hedges its largest currency exposures through a layering of four
forward contracts covering the four successive financial quarters and a
portion of the anticipated US Dollar generation. On a quarterly basis these
forward contracts are supplemented by additional layers, thus providing an
averaging effect to the US Dollar- Sterling exchange rate. The hedging policy
provides protection to net profit, earnings per share and cash but has no
effect on gross profit or gross margin because the gains and losses are
accounted for in finance costs.
Administrative expenses, at £28.7m (2024: £29.4m), show a 2% improvement;
personnel costs reduced by 10% as a consequence of lower financial performance
related bonus accruals.
All R&D programmes progressed well during the year, and the milestone of
dossier submission to the regulatory authorities for our first mycoplasma
poultry vaccine was reached - ECOvaxxin® MS. The group expects further
submissions in the next and following years supporting the targeted investment
in innovative vaccine technology. The strong market potential and technical
success supports the capitalisation of late stage R&D expenditure which
showed no indications of impairment. At the current time the Group capitalises
expenditure on ECOVaxxin® MG and ECOVaxxin® MS as well as a long acting
Florfenicol based anti-infective, ECOFlor, for swine respiratory disease.
Total cash expenditure on R&D (inclusive of that amount capitalised) in
the year was £8.6m (2024: £8.3m). The total expenditure on R&D can be
analysed as follows:
Year ended 31 March
2025 2024
(£'m) (£'m)
Research and development expenses - expensed in period 4.0 4.2
Development expenditure - capitalised in intangible assets 4.6 4.1
Total expenditure 8.6 8.3
Overall R&D expenditure in the year was 4% higher than the prior year,
reflecting increased spending on clinical stage assets. Expenditure on late
stage assets (capitalised items) was 53% of total expenditure compared with
49% in the prior year. This R&D programme continues to be funded from the
Group's cashflow and is 11% of revenue (2024 - 9%) expenditure ensures that
all programmes (late, mid and early stage) receive the required funding to
advance them according to plan. The R&D programme was described in some
detail during the Group's R&D day held in March 2025.
More details of this presentation, as well as a video recording of the meeting
are available on the Group's website.
EBITDA is a key performance measure for the Group; the removal of
amortisation, depreciation and other non-cash charges to profit provides a
good indication of the underlying cash trading performance of the business.
The charge for amortisation of intangible assets in the year was £1.2m (2024:
£1.2m). The adjusted EBITDA, operating profit excluding exceptional items,
share based payments, depreciation, amortisation and foreign exchange gains
and losses, at £7.3m (2024: £8.0m) was slightly above market expectations
and was achieved despite challenging trading conditions and higher R&D
expense by tight overhead costs control and strongly improved gross margins.
Furthermore, the adjusted EBITDA margin, excluding foreign exchange movements
and expressed as a percentage of revenue in the period, was 9.2% in the year
ended 31 March 2025 compared with 9.0% in the year ended 31 March 2024.
Profit before income tax was higher in the year ended 31 March 2025 at £4.0m
(2024: £3.0m). An important contributor to this increase was the exceptional
gain during the year.
The exceptional items were profits on disposal of the non-core product line
Ecomectin horse paste to an Italian distributor and parasite treatment
licences for Southern Africa.
The Group's effective tax rate was 34% for the year ended 31 March 2025 (2024:
32%). Factors causing the effective rate to be greater than the headline UK
rate of 25% are the withholding tax suffered on intragroup dividends received
from China and the Group's policy of not recognising a deferred tax asset in
respect of losses in the Group's parent company. The 2 percentage-point
increase to 34% from 32% in the prior year is due to the more-restrictive
R&D tax credit arrangements now in effect in the UK.
Earnings per share (EPS) has improved from 1.55 pence in the year ended 31
March 2024 to 2.49 pence per share in the year ended 31 March 2025 and diluted
EPS has improved strongly from 1.52 pence in the year ended 31 March 2024 to
2.43 pence per share in the year ended 31 March 2025, due to improved gross
margins, good cost control, and the exceptional gain described earlier.
Operating cash inflow before movements in working capital was £7.6m (2024:
£7.7m). Continuing close management of working capital - in particular
inventories and receivables - has resulted in operating cash flow of £12.1m
(2024: £10.5m). Jurisdiction of cash balances were as follows:
At 31 March
2025 2024
(£'m) (£'m)
Held in UK 8.4 6.2
Held in non-China subsidiaries 1.6 1.9
Held in China 100% owned subsidiary 4.0 2.4
Held in China 51% owned subsidiary 11.0 11.9
25.0 22.4
The Group repatriates cash from China by annual dividend declaration; 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, treasury management decisions and funds
available for investment in R&D are based upon the cash balances outside
of China.
During June 2024, two dividends totalling £2.8m (post withholding tax) were
received from China. In addition, during June 2025, two dividends totalling
£3.4m (post withholding tax) were received from China.
The Group's committed banking facilities remain at £15.0m, being a £5.0m
overdraft facility and a £10m revolving credit facility. These facilities
expire on
30 June 2026 and were undrawn as at 31 March 2025.
The Group's inventory balance reduced to £14.6m on 31 March 2025 from £17.0m
on 31 March 2024. This reduction was principally in finished goods and
reflected the strong end to the year in China and the USA. Overall inventory
days the annual cost of sales were steady at 122 days against 120 days for the
prior year.
Trade receivables decreased from £32.2m at 31 March 2024 to £28.5m on 31
March 2025 with average debtor days (expressed as an average of the annual
revenue) steady at 131 days (prior year: 131 days).
Simplified presentation of the Group
In response to certain stakeholder requests to provide a simplified
description of the Group's performance we present the following analysis.
The ECO Group can be thought of in three components, the first, a core trading
business which manufactures and sells its products worldwide through wholly
owned subsidiaries or direct to market. This applies to all territories
except China where ECO operates through a 51% owned subsidiary. Cash returns
from this China subsidiary is by way of a dividend.
Accordingly, the second component to this analysis of the Group is an
investment in a China business that pays the Group an annual dividend. The
third component of this analysis is an R&D business which employs a team
of people undertakes studies and trials through third parties and has
developed a body of intellectual property with rich potential for high
future returns.
With these three components in mind one can disaggregate the Group results
using already disclosed information, as follows:
ECO Animal Health Group plc - Disaggregation analysis
ECO excluding ECO Biok (£'m) ECO Biok* ECO R&D operation Consolidated
(£'m) (£'m) group
(£'m)
Revenue 60.1 19.5 79.6
Cost of sales (31.4) (12.3) (43.7)
Gross profit 28.7 7.2 - 35.9
48% 37% 45%
Administrative expenses (22.3) (4.5) (1.9) (28.7)
Research & Development expenses (4.0) (4.0)
Other income - 0.1 0.1
Exceptional items 1.0 1.0
Profit from operating activities 7.4 2.8 (5.9) 4.3
Net finance cost (0.1) (0.2) - (0.3)
Profit before income tax 7.3 2.6 (5.9) 4.0
Income tax credit/(charge) (0.6) (0.7) 0.1 (1.2)
Withholding tax on dividends (0.1) (0.1)
Profit for the year 6.6 1.9 (5.8) 2.7
ECO Animal Health Group plc - Disaggregation analysis continued
ECO excluding ECO Biok (£'m) ECO Biok* ECO R&D operation Consolidated
(£'m) (£'m) group
(£'m)
Profit:
Profit from operating activities 7.4 2.8 (5.9) 4.3
Deprecation 0.3 0.6 0.9
Amortisation 1.6 0.3 1.9
Share based payments and foreign exchange differences 1.2 1.2
Exceptional items (1.0) (1.0)
Adjusted EBITDA 9.5 3.7 (5.9) 7.3
China dividend
Received by ECO group from China JV in year 1.1 (1.1) 0.0
Balance sheet
Intangible fixed assets 30.6 11.6 42.2
Tangible fixed assets 4.4 3.0 7.4
Deferred tax balance 0.0 0.2 0.2
Inventories 11.7 2.9 14.6
Receivables 23.4 5.1 28.5
Other current assets 1.9 1.9
Cash balance 14.0 11.0 25.0
Trade payables (13.0) (2.1) (15.1)
Lease liabilities (0.8) (3.0) (3.8)
Other payables (5.4) (0.7) (6.1)
Net assets 66.8 16.4 11.6 94.8
Cash flow
Profit before tax 7.3 2.6 (5.9) 4.0
Non-cash items 2.6 1.0 3.6
Net working capital movements/ 4.0 (1.5) 2.5
net finance cost and tax payments
Cashflow from operating activities 13.9 2.1 (5.9) 10.1
Cashflow from investing activities 0.1 (0.1) (4.6) (4.6)
Cashflow from financing activities 0.7 (2.6) (2.0)
Foreign exchange movements (0.9) (0.4) (1.3)
Net increase/(decrease) in cash 13.8 (1.0) (10.5) 2.3
Opening cash 0.2 12.0 10.5 22.7
Closing cash 14.0 11.0 0.0 25.0
*The Group owns 51% of ECO Biok with 49% owned by a minority shareholder.
Details of ECO Biok are disclosed in note 15.
By performing this analysis for prior years the following comparative
performance for the core group can be set out as follows:
Year ended 31 March
Group excluding China and R&D 2022 2023 2024 2025
Revenue 55.4 61.2 67.8 60.1
Gross margin 46% 45% 43% 48%
Adjusted EBITDA 10.2 7.8 9.4 9.5
Adjusted EBITDA margin 18% 13% 14% 16%
Effective tax rate 31% 12% 24% 8%
Inventories 16.1 17.4 13.0 11.7
Receivables 19.7 22.9 27.6 23.9
Cash balance 8.2 6.8 10.4 14.0
Cash generated from Operations 10.8 7.2 10.3 14.0
Cash received from China JV dividend 2.3 1.9 2.9 1.1
R&D component
R&D cash expenditure (net of tax credits) 8.6 8.2 8.0 8.5
Effective R&D tax credit rate 12% 14% 15% 1%
China 51% Subsidiary
Revenue 26.8 24.1 21.6 19.5
Gross margin 36% 44% 38% 37%
Adjusted EBITDA 3.7 6.6 3.9 3.7
Adjusted EBITDA margin 14% 27% 18% 19%
Effective tax rate 37% 34% 36% 33%
Inventories 14.1 5.0 4.0 2.9
Receivables 6.3 3.9 4.5 5.1
Cash balance 6.1 14.9 11.9 11.0
As disclosed previously the dividend from the China 51% subsidiary in respect
of the year ended 31 December 2024 has been received at a value of £2.6m.
The dividend received in the financial year ended 31 March 2025 was
comparatively lower than prior years and the subsequent year because it
reflected the year in which the new factory in China was built.
In summary the Group can be described as a core trading business which has
delivered consistent (and rising) profitability in the last three years
approaching £10m, rising cash generation and cash balances and which receives
a consistent annual dividend of £2m - £3m and from which a new product
development programme is being funded.
Christopher Wilks
Chief Financial Officer
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
2025 2024
Notes £000's £000's
Revenue 3 79,596 89,422
Cost of sales (43,682) (51,739)
Gross profit 35,914 37,683
45.1% 42.1%
Administrative expenses (28,727) (29,394)
Research and development expenses (3,988) (4,169)
Other income 4 148 66
Exceptional items 5 954 (651)
Operating profit 4,301 3,535
Share of profit of associate 15 50 53
Finance income 6 110 150
Profit before financing and income tax 4,461 3,738
Finance costs 6 (452) (764)
Profit before income tax 4,009 2,974
Income tax charge 8 (1,375) (966)
Profit for the year 2,634 2,008
Profit attributable to:
Owners of the parent Company 1,686 1,048
Non-controlling interest 26 948 960
Profit for the year 2,634 2,008
Earnings per share (pence) 7 2.49 1.55
Diluted earnings per share (pence) 7 2.43 1.52
Adjusted EBITDA (Non-GAAP measure) 5 7,299 8,046
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
2025 2024
Notes £000's £000's
Profit for the year 2,634 2,008
Other comprehensive loss:
Items that may be reclassified to profit or loss:
Foreign currency translation differences (368) (1,828)
Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit pension schemes 23 (14) 43
Other comprehensive loss for the year (382) (1,785)
Total comprehensive income for the year 2,252 223
Attributable to:
Owners of the parent Company 1,611 1
Non-controlling interest 26 641 222
2,252 223
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
Share Capital Share Premium Revaluation Reserve Treasury Shares Other Reserves Foreign Exchange Reserve Retained Earnings Total Non-controlling Interest Total Equity
Reserve
£000's £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
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 ESOT - - - (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
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
Company
Share Capital Share Premium Revaluation Reserve Treasury Shares Reserve Other Reserves Retained Earnings Total
£000's £000's £000's £000's £000's £000's £000's
Balance at 31 March 2023 3,381 63,319 386 - 106 7,236 74,428
Loss for the year - - - - - (1,158) (1,158)
Other comprehensive income:
Foreign currency differences - - - - - - -
Deferred tax on revaluation of freehold property - - - - - - -
Actuarial gains on pension - - - - - 43 43
scheme assets
Total comprehensive income for the year - - - - - (1,115) (1,115)
Transactions with owners:
Issue of shares in the year 6 - - - - - 6
Revaluation reserve - - (386) - - 386 -
Share-based payments - - - - - 413 413
Transactions with owners 6 - (386) - - 799 419
Balance at 31 March 2024 3,387 63,319 - - 106 6,920 73,732
Loss for the year - - - - - (658) (658)
Other comprehensive income:
Deferred tax on revaluation of freehold property - - - - - - -
Foreign currency differences - - - - - - -
Actuarial gains on pension - - - - - (14) (14)
scheme assets
Total comprehensive income for the year - - - - - (672) (672)
Transactions with owners:
Issue of shares in the year 1 - - - - - 1
Acquisition of shares by ESOT - - - (204) - - (204)
Share-based payments - - - - - 401 401
Transactions with owners 1 - - (204) - 401 198
Balance at 31 March 2025 3,388 63,319 - (204) 106 6,649 73,258
STATEMENTS OF FINANCIAL POSITION (CO. NUMBER: 01818170)
AS AT 31 MARCH 2025
Group Company
2025 2024 2025 2024
Notes £000's £000's £000's £000's
Non-current assets
Intangible assets 11 41,834 38,351 - -
Property, plant and equipment 12 4,038 4,802 - -
Right-of-use assets 14 3,399 3,672 20 59
Investments 15 316 268 21,690 21,451
Amounts due from subsidiary company 17 - - 48,937 51,078
Deferred tax assets 18 1,074 1,437 - -
Total non-current assets 50,661 48,530 70,647 72,588
Current assets
Inventories 16 14,553 16,955 - -
Trade and other receivables 17 28,516 32,175 1,664 1,698
Income tax recoverable 13 1,143 2,687 - -
Other taxes and social security 724 525 182 -
Cash and cash equivalents 19 25,006 22,374 1,515 363
Assets held for sale - 18 - -
Total current assets 69,942 74,735 3,361 2,061
TOTAL ASSETS 120,603 123,265 74,008 74,649
Current Liabilities
Trade and other payables 20 (15,071) (17,353) (673) (804)
Provisions 22 (4,964) (5,859) - -
Income tax payable 13 (801) (687) - -
Other taxes and social security payable (305) (632) - -
Lease liabilities 21 (621) (646) (15) (50)
Dividends (50) (50) (50) (50)
Total current liabilities (21,812) (25,227) (738) (904)
Net current assets 48,130 49,508 2,623 1,157
Total assets less current liabilities 98,791 98,038 73,270 73,745
Non-current liabilities
Deferred tax liabilities 18 (862) (1,279) (9) -
Lease liabilities 21 (3,164) (3,379) (3) (13)
TOTAL ASSETS LESS TOTAL LIABILITIES 94,765 93,380 73,258 73,732
EQUITY
Issued share capital 25 3,388 3,387 3,388 3,387
Share premium account 63,319 63,319 63,319 63,319
Revaluation reserve 27 271 271 - -
Treasury shares reserve 27 (204) - (204) -
Other reserves 27 106 106 106 106
Foreign exchange reserve 27 747 788 - -
Retained earnings 17,872 15,819 6,649 6,920
Shareholders' funds 85,499 83,690 73,258 73,732
Non-controlling interests 26 9,266 9,690 - -
TOTAL EQUITY 94,765 93,380 73,258 73,732
STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
Group Company
2025 2024 2025 2024
Notes £000's £000's £000's £000's
Cash flows from operating activities
Profit before income tax 4,009 2,974 (725) (1,349)
Adjustment for:
Finance income 6 (110) (150) (1,124) (1,708)
Finance cost 6 452 764 4 62
Foreign exchange (gain)/loss 5 720 572 (132) 204
Depreciation 12 984 958 - 20
Amortisation of right-of-use assets 14 681 683 32 33
Amortisation of intangible assets 11 1,166 1,154 - -
Impairment of right-of-use assets 5 - 80 - -
Share of associate's results 15 (50) (53) - -
Share based payment charge 24 401 413 162 127
Exceptional items 5 (954) 306 - (282)
Operating cash flows before movements in working capital 7,299 7,701 (1,783) (2,894)
Decrease in inventory 2,088 4,741 - -
Decrease/(increase) in receivables 4,156 (4,961) 1,995 (133)
(Decrease)/increase in payables (1,339) 2,456 (211) 284
(Decrease)/increase in provision and pensions (90) 554 (14) 43
Cash generated from/(used in) operations 12,114 10,491 (13) (2,700)
Finance costs 6 (200) (473) - (51)
Income tax (1,466) (601) (9) (23)
Net cash from/(used in) operations 10,448 9,417 (22) (2,774)
Cash flows from investing activities
Acquisition of property, plant and equipment 12 (356) (502) - -
Proceeds from sale of property, plant and equipment - 1,058 - 1,058
Purchase of intangibles 11 (4,648) (4,122) - -
Net cash flow from disposal and acquisition activities 5 288 - - -
Finance income 6 110 150 1,124 1,708
Dividends received - - 85 225
Net cash (used in)/from investing activities (4,606) (3,416) 1,209 2,991
Cash flows from financing activities
Proceeds from issue of share capital 1 6 1 6
Interest paid on lease liabilities 21 (252) (291) (4) (11)
Principal paid on lease liabilities 21 (638) (593) (38) (34)
Dividends paid (1,065) (2,813) - -
Net cash used in financing activities (1,954) (3,691) (41) (39)
Net increase in cash and cash equivalents 3,888 2,310 1,146 178
Foreign exchange movements (1,256) (1,594) 6 (203)
Balance at the beginning of the period 22,374 21,658 363 388
Balance at the end of the period 19 25,006 22,374 1,515 363
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 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, N14 6BN.
2. Summary of the Group and Company's significant
accounting policies
2.1 Basis of preparation
These financial statements have been prepared in accordance with UK-adopted
International Financial Reporting Standards. There were no changes to
accounting policies on adoption of UK IFRSs.
The preparation of financial statements, in accordance with UK-adopted
international accounting standards, requires the use of estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenue and
expenses during the reporting period. Although these estimates are based on
management's best knowledge of the amount, event or actions, actual results
ultimately may differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or in the period
of the revision and future periods if the revision affects both current and
future periods. Further details of estimates and judgements are provided in
note 2.29 and 2.30.
The principal accounting policies are set out below and have been applied
consistently in dealing with items which are considered material in relation
to the financial statements. They are prepared under the historical cost
convention with the exception of certain items which are measured at fair
value as described in the accounting policies below.
Going concern
After making appropriate enquiries, the Directors have, at the time of
approving the financial statements, formed a judgement that there is a
reasonable expectation that the Group and Company have adequate resources to
continue in operational existence for the foreseeable future. For this reason,
the Directors continue to adopt the going concern basis in preparing the
financial statements.
This conclusion is based on a review of the resources available to the Group,
taking account of the Group's financial projections together with available
cash and committed borrowing facilities. The Directors have performed a
reverse stress test on the business, by considering what quantum of revenue
and gross margin reduction would be required to exhaust all available funds
within 12 months of the date of approving the accounts, having due regard to
the identified strategic risks. The Directors concluded that the likelihood of
such a reduction was remote, and therefore that no material uncertainty exists
in respect of going concern.
2.2 Adoption of new and revised standards
The below are the standards that are new/amended for accounting periods that
begin on or after 1 January 2024:
• Classification of liabilities as current or non-current
(Amendments to IAS 1);
• Deferred tax related to assets and liabilities arising from a
single transaction (Amendments to IAS 12);
• Lease Liability in a Sale and Leaseback (Amendments to IFRS 16);
• Classification of Financial Instruments (Amendments to IFRS 9);
• Non-current liabilities with covenants (Amendments to IAS 1);
and
• Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7).
No new standards or amendments that became effective in the financial year had
a material impact in preparing these financial statements. There are a number
of standards and amendments to standards which have been issued by the IASB
that are effective in future accounting periods that have not been adopted
early.
The following amendments are effective for annual reporting periods beginning
on or after 1 January 2025:
· Guidance on the exchange rate to use when a currency is not
exchangeable (Amendments to IAS 21);
· Accounting treatment for the sale or contribution of assets
(Amendments to IFRS 10 and IAS 28).
The following amendments are effective for annual reporting periods beginning
on or after 1 January 2026:
· Amendments to the classification and measurement of financial
instruments (Amendments to IFRS 9 and IFRS 7);
· Annual Improvements to IFRS Standards 2022 - 2024 Cycle (covering
amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10, IAS 7).
The following standards are effective for annual reporting periods beginning
on or after 1 January 2027:
· IFRS 18 Presentation and Disclosure in Financial Statements;
· IFRS 19 Subsidiaries without Public Accountability: Disclosures.
Beyond the information above, it is not practicable to provide a reasonable
estimate of the effect of these standards until a detailed review has been
completed.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
2.3 Basis of consolidation
The consolidated financial statements comprise the accounts of the Company and
its subsidiaries drawn up to 31 March 2025.
An entity is classed as a subsidiary of the Company when, as a result of
contractual arrangements, the Company has the power to govern its financial
and operating policies so as to obtain benefits from its activities.
The purchase method of accounting is used to account for the acquisition of
subsidiaries by the Group. The cost of an acquisition is measured as the fair
value of the assets given, equity instruments issued and liabilities incurred
or assumed at the date of exchange. Identifiable assets acquired and
contingent liabilities assumed in a business combination are measured
initially at their fair values at the acquisition date, irrespective of the
extent of any non-controlling interest. The excess of the cost of acquisition
over the fair value of the Group's share of the identifiable net assets
acquired is recorded as goodwill. If the cost of acquisition is less than the
fair value, the difference is recognised directly in the income statement.
Accounting policies of subsidiaries have been changed where material to ensure
consistency with the policies adopted by the Group. Although the subsidiaries
in Brazil and China and the joint operations in the USA and Canada all have
December year ends, the Group uses management accounts to the end of March to
prepare the Group accounts.
Subsidiaries are wholly consolidated from the date on which control is
transferred to the Group. They are deconsolidated from the date that control
ceases.
Inter-company transactions, balances and unrealised gains on transactions
between Group companies are eliminated on consolidation.
The Group initially recognises any non-controlling interest in the acquiree at
the non-controlling interest's proportionate share of the acquiree's net
assets. For each business combination, the Group elects whether to measure the
non-controlling interests in the acquiree at fair value or at the
proportionate share of the acquiree's identifiable net assets.
Acquisition-related costs are expensed as incurred and included in
administrative expenses. The Group has not elected to take the option to use
fair value in acquisitions completed to date.
Profit or loss and each component of other comprehensive income are attributed
to the equity holders of the parent of the Group and to the non-controlling
interests, even if this results in the non-controlling interests having a
deficit balance.
2.4 Segment reporting
Operating segments are reported in a manner consistent with the internal
reporting to the chief operating decision-maker. The chief operating
decision-maker who is responsible for allocating resources and assessing
performance of the operating segments has been identified as the Board.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
2.5 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of each of the Group's entities are
measured using the currency of the primary economic environment in which the
entity operates ('functional currency'). The consolidated and Company
financial statements are presented in Pounds Sterling, which is the Group and
the Company's functional currency.
(b) Transactions and balances
Monetary assets and liabilities denominated in foreign currencies are
translated into Pounds Sterling at the rates of exchange ruling at the date of
the financial statements.
Foreign currency transactions are translated into the functional currency
using the exchange rates prevailing at the date of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions
and from the translation at period end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in the income
statement within administrative expenses.
Foreign exchange gains and losses that relate to borrowing and cash and cash
equivalents are presented in the income statement within administrative
expenses.
(c) Group companies
The results and financial position of all Group entities that have a
functional currency different from the Group's functional and presentation
currency are translated into the Group's functional and presentation currency
as follows:
· assets and liabilities for each statement of financial position
presented are translated at the closing exchange rate at the date of the
statement of financial position;
· income and expenses for each income statement are translated at
average exchange rates unless this average is not a reasonable approximation
of the cumulative effect of the rates prevailing on the transaction dates, in
which case the income and expenses are translated at the rate on the dates of
the transaction; and
· all resulting exchange differences are recognised through other
comprehensive income as a separate component of equity.
When a foreign operation is partially disposed or sold, exchange differences
that were recognised in equity are recognised in the income statement as part
of the gain or loss on sale. Goodwill and fair value adjustments arising on
the acquisition of a foreign entity are treated as assets and liabilities of
the foreign entity and translated at the closing exchange rate.
2.6 Financial instruments
Financial assets
Financial assets comprise mainly trade and other receivables and cash and cash
equivalents in the consolidated statement of financial position. These
financial assets arise principally from the provision of goods to customers
and are measured at amortised cost.
Impairment provisions for current and non-current trade receivables are
recognised based on the simplified approach within IFRS 9 using a provision
matrix in the determination of the lifetime expected credit losses. During
this process, the probability of the non-payment of the trade receivables is
assessed with reference to historical data adjusted by forward-looking
information. This probability is then multiplied by the amount of the expected
loss arising from default to determine the lifetime expected credit loss for
the trade receivables. For trade receivables, which are reported net, such
provisions are recorded in a separate provision account with the loss being
recognised within administrative expenses in the consolidated income
statement. On confirmation that the trade receivable will not be collectable,
the gross carrying value of the asset is written off against the associated
provision.
Impairment provisions for receivables from related parties and loans to
related parties are recognised based on a forward-looking expected credit loss
model. The methodology used to determine the amount of the provision is based
on whether there has been a significant increase in credit risk since initial
recognition of the financial asset. For those where the credit risk has not
increased significantly since initial recognition of the financial asset,
12-month expected credit losses along with gross interest income are
recognised. For those where the credit risk has increased significantly,
lifetime expected credit losses along with gross interest income are
recognised. Where there is a high level of variation and uncertainty in
possible outcomes, management will assess these on a probability weighted
basis to determine an appropriate provision. For those that are determined to
be credit impaired, lifetime expected credit losses along with interest income
on a net basis are recognised.
The group uses forward foreign exchange contracts to manage its currency
exposure. Certain foreign currency inflows that would typically be translated
to sterling at spot to meet liabilities are sold forward to reduce the Group's
exposure to fluctuations in exchange rates. The group has not opted to use
hedge accounting for these instruments, and any changes in fair value are
recognised in the income statement.
Financial liabilities
Financial liabilities comprise mainly trade and other payables and bank
overdrafts in the consolidated statement of financial position. These
financial liabilities are initially recognised at fair value and subsequently
measured at amortised cost in accordance with IFRS 9.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
2.7 Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the
costs of acquisition over the Group's interest in the net fair value of the
identifiable assets, liabilities and contingent liabilities of the entity
recognised at the date of acquisition. Please refer to note 11 for further
details.
Goodwill is initially recognised as an asset at cost and is subsequently
measured at cost less any accumulated impairment losses. Goodwill is not
subject to amortisation but is tested for impairment annually.
Negative goodwill arising on an acquisition is recognised directly in the
income statement. On disposal of a subsidiary or a jointly controlled entity,
the attributable amount of goodwill is included in the determination of the
profit or loss recognised in the income statement on disposal. Goodwill
arising before the date of transition to IFRS, on 1 April 2004, has been
retained at the previous UK GAAP amounts, subject to being tested for
impairment at that date. Goodwill written off to reserves under UK GAAP prior
to 1998 has not been reinstated and is not included in determining any
subsequent profit or loss on disposal.
2.8 Other intangible assets
Other intangibles are detailed in note 11. IAS 38 - Intangible Assets includes
guidance on the accounting for research and development expenditure. Such an
intangible asset is a resource that is controlled by the entity as a result of
past events (for example, purchase or self-creation) and from which future
economic benefits (inflows of cash or other assets) are expected. The three
critical attributes of an intangible asset are:
· identifiability;
· control (power to obtain benefits from the asset); and
· future economic benefits (such as revenues or reduced future
costs).
Identifiability
An intangible asset is identifiable when it:
· is separable (capable of being separated and sold, transferred,
licensed, rented, or exchanged, either individually or together with a related
contract); or
· arises from contractual or other legal rights, regardless of
whether those rights are transferable or separable from the entity or from
other rights and obligations.
Development expenditure - whether purchased or self-created (internally
generated) is an example of an intangible asset, governed under IAS 38.
Recognition criteria
IAS 38 requires an entity to recognise an intangible asset (at cost) if, and
only if:
· it is probable that the future economic benefits that are
attributable to the asset will flow to the entity; and
· the cost of the asset can be measured reliably.
IAS 38 includes additional recognition criteria for internally generated
intangible assets.
Expenditure on the research phase of an internal project is expensed as
incurred. Expenditure in the development phase of an internal project is
capitalised if the entity can demonstrate:
a) the technical feasibility of completing the intangible asset so that
it will be available for use or sale.
b) its intention to complete the intangible asset and use or sell it.
c) its ability to use or sell the intangible asset.
d) how the intangible asset will generate probable future economic
benefits. Among other things, the entity can demonstrate the existence of a
market for the output of the intangible asset or the intangible asset itself
or, if it is to be used internally, the usefulness of the intangible asset.
e) the availability of adequate technical, financial and other resources
to complete the development and to use or sell the intangible asset.
f) its ability to measure reliably the expenditure attributable to the
intangible asset during its development.
The probability of future economic benefits must be based on reasonable and
supportable assumptions about conditions that will exist over the life of the
asset.
If an entity cannot distinguish the research phase of an internal project to
create an intangible asset from the development phase, the entity treats the
expenditure for that project as if it were incurred in the research phase
only.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
2.8 Other intangible assets (continued)
The Group context of IAS 38
Since the early start-up stages of the business, the Group has and continues
to invest significant expenditure in research and development into new animal
treatments and therapies. This has resulted in a significant family of
pharmaceutical treatments for pigs and poultry. Branded as Aivlosin®, this
product has developed over 20 years into treatments for multiple respiratory
and intestinal infections - each of which have separate regulatory and
marketing approvals in each target market. The work to bring Aivlosin® from
the laboratory to the commercial farm has moved through the classical phases
of pharmaceutical development and the ECO Animal Health R&D model can be
described by the following broad phases:
• The discovery phase - in vitro, in laboratory.
• The proof of concept phase - key efficacy trials in small groups
of animals.
• The exploratory development phase - optimisation of dose,
economic validation.
• The full development phase - building the data set for dossier
submission.
• Submission of an application for regulatory approval.
• Marketing and regulatory approval granted - commercial revenue
begins.
The application of the principles of IAS 38 to the above model is to treat
expenditure on research and development as an expense until the likely
commercial benefits that will flow from the project can be judged to be highly
probable. This means that the technical feasibility (judged by reference to
efficacy) must be certain, the economic feasibility (judged by reference to
manufacturing methodology, market intelligence, overall programme cost) has to
be highly probable and the likelihood of gaining regulatory approval must be
judged to be highly probable. The Directors consider that capitalisation will
generally commence once a project enters the full development phase.
In practice, work that is undertaken to build towards regulatory approval for
a new treatment claim using Aivlosin®, vaccines or other technologies, or an
approval for marketing new technologies of applications in a new geographical
market can be viewed as starting at the full development phase and are likely
to meet the capitalisation criteria whereas costs in relation to some of the
Group's recently announced projects, on vaccine development, for example, are
likely to meet the capitalisation requirements once they are approved
internally to commence the full development phase, subject to careful
consideration of residual technical feasibility/risk.
The Group's R&D team prepare a technical profile for new products in
development, with timings for development activity reflecting the technical
challenges that must be overcome in order to obtain a marketing authorisation
for the relevant regulator. In turn the R&D team work with the Group's
marketing team to develop a business case for a new product by considering a
number of additional factors. These additional factors will include local
intelligence on the appetite for new products gathered through the Group's
global network of existing sales channels, third-party data on the size of
potential markets for new products, and suitable pricing strategies in the
context of potential competitor products.
Amortisation of capitalised expenditure is determined with reference to the
point at which regulatory approval is given to the product to which the
expenditure relates. For historic periods, the approach adopted has been to
amalgamate the expenditure incurred on all projects relating to the same
product since the last regulatory approval and then identify the next nearest
regulatory approval given for that product in either the same or a subsequent
half-year. Amortisation begins in the half-year following the receipt of
regulatory approval. A full six months of amortisation is charged in the first
half-year for which costs are amortised.
Where it is possible to allocate an individual capitalised cost to a single
identifiable project the start date for amortisation is the half-year
following the half-year period in which the project receives regulatory
approval. Where regulatory approval has not been received for a project,
the amortisation has not started.
Amortisation is provided at rates calculated to write off the cost less
estimated residual value of each asset over its expected useful life, as
follows:
Aivlosin®
5% on cost
Ecomectin®
10% on cost
Vaccines
5% on cost
Trade marks and patents 10% on cost
2.9 Property, plant and equipment and depreciation
Plant and equipment are stated at cost less depreciation. Depreciation is
provided at rates calculated to write off the cost less estimated residual
value of each asset over its expected useful life, as follows:
Plant and
machinery
10%-20% on cost
Fixtures, fittings and equipment
10%-20% on cost
Motor
vehicles
25% on cost
Leasehold
improvement
18%-25% on cost
Freehold land and buildings valuations are measured as a level 3 recurring
fair value measurement. The property is professionally valued by a qualified
surveyor at least once every three years. Surpluses (which are not reversals
of previous deficits) arising from the periodic valuations are taken to other
comprehensive income, and deficits (which are not reversals of previous
surpluses) are taken to the income statement within administrative expenses.
Depreciation is provided at a rate calculated to expense the valuation less
estimated residual value over the remaining useful life of the building at a
rate of 2% per annum on a straight-line basis. Land is not depreciated.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
2.10 Impairment of non-financial assets
The carrying amounts of assets are reviewed at each year end to determine
whether there is any indication of impairment. If any such indication exists,
the asset's recoverable amount is estimated in order to determine the
impairment loss if any. The recoverable amount is the higher of its fair value
and its value in use. For intangible assets with an indefinite useful life or
not available for use, an impairment test is performed at each year end.
In assessing value in use, the expected future cash flows from the asset are
discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific
to the asset.
An impairment loss is recognised in the income statement whenever the carrying
amount of an asset or its cash-generating unit exceeds its recoverable amount.
A previously recognised impairment loss for costs other than goodwill is
reversed if the recoverable amount increases as a result of a change in the
estimates used to determine the recoverable amount, but not to an amount
higher than the carrying amount that would have been determined (net of
depreciation) had no impairment loss been recognised in prior years and no
reversal of impairment losses recognised on goodwill.
2.11 Investments in subsidiaries
An investment in a subsidiary is where the Group own a controlling interest in
an entity. Investments in subsidiaries are stated at cost less impairment in
the parent Company's statement of financial position.
Other non-current asset investments are stated at fair value. They are
recognised or derecognised on the date when the contract for acquisition or
disposal requires the delivery of that investment.
Investments are assessed for impairment at the end of each reporting period.
An impairment is recognised in profit or loss when the recoverable amount of
an asset is less than its carrying amount, with the value of any impairment
being the difference between the recoverable amount and carrying amount.
Impairments can be reversed in subsequent periods where there is any
indication that the impairment loss recognised in a prior period may no longer
exist or have decreased.
During the year the Group established an Employee Share Ownership Trust (the
'ESOT'). The assets, liabilities and returns of the ESOT are consolidated
within the results of the ESOT's sponsoring company, Eco Animal Health Group
plc.
During the year the ESOT acquired shares in Eco Animal Health Group plc. The
shares held by the ESOT are treated as treasury shares in the accounts of Eco
Animal Health Group plc.
2.12 Joint arrangements
A joint arrangement is a contractual arrangement whereby the Group and other
parties undertake an economic activity that is subject to joint control; that
is, when the strategic financial and operating policy decisions relating to
the activities require the unanimous consent of the parties sharing control.
The Group classifies its interests in joint arrangements as either:
- Joint ventures: where the Group has rights to only the net
assets of the joint arrangement; or
- Joint operations: where the Group has both the rights to assets
and obligations for the liabilities of the joint arrangement.
In assessing the classification of interests in joint arrangements, the Group
considers:
- The structure of the joint arrangement;
- The legal form of joint arrangements structured through a
separate vehicle;
- The contractual terms of the joint arrangement agreement;
- Any other facts and circumstances (including any other
contractual arrangements).
The Group has interests in joint operations. The Group recognises its share of
the assets, liabilities, income, expenses and cash flows of joint operations
combined with the equivalent items in the consolidated financial statements on
a line-by-line basis.
2.13 Investments in associates
An associate is an entity in which an investor has significant influence but
not control or joint control. Significant influence is defined as "the power
to participate in the financial and operating policy decisions but not to
control them".
The Group reports its interests in associates using the equity method of
accounting. Under this method, an equity investment is initially recorded at
cost (subject to initial fair value adjustment if acquired as part of the
acquisition of a subsidiary) and is subsequently adjusted to reflect the
Group's share of the net profit or loss of the associate. If the Group's share
of losses of an associate equal or exceed its "interest in the associate", the
Group discontinues recognising its share of further losses. If the associate
subsequently reports profits, the investor resumes recognising its share of
those profits only after its share of the profits equals the share of losses
not recognised.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
2.14 Leasing
The Group assesses at contract inception whether a contract is, or contains, a
lease. That is, if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.
The Group applies a single recognition and measurement approach for all leases
under IFRS 16, except for short-term leases and leases of low-value assets.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the
lease, which is the date the underlying asset is available for use.
Right-of-use assets are measured at cost, less any accumulated depreciation
and impairment losses, and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and lease payments made
at or before the commencement date, less any lease incentives received.
Right-of-use assets are depreciated on a straight-line basis over the lease
term.
If ownership of the leased asset transfers to the Group at the end of the
lease term or the cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment. Refer to the
accounting policies in section 2.10 for further details.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities
measured at the present value of the lease payments to be made over the lease
term. The lease liabilities include the present value of the following lease
payments:
• fixed payments (including in-substance fixed payments), less any
lease incentives receivable;
• variable lease payments that are based on an index or a rate,
initially measured using the index or rate as at the commencement date;
• amounts expected to be payable by the Group under residual value
guarantees;
• the exercise price of a purchase option if the Group is
reasonably certain to exercise that option; and
• payments of penalties for terminating the lease, if the lease
term reflects the Group exercising that option.
Lease payments to be made under reasonably certain extension options are also
included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the
lease. If that rate cannot be readily determined, the lessee's incremental
borrowing rate is used, being the rate that the individual lessee would have
to pay to borrow the funds necessary to obtain an asset of similar value to
the right-of-use asset in a similar economic environment with similar terms,
security and conditions. In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in the lease term, a change
in the lease payments (for example, changes to future payments resulting from
a change in an index or rate used to determine such lease payments) or a
change in the assessment of an option to purchase the underlying asset.
The Group is exposed to potential future increases in variable lease payments
based on an index or rate, which are not included in the lease liability until
they take effect. When adjustments to lease payments based on an index or rate
take effect, the lease liability is reassessed and adjusted against the
right-of-use asset.
Lease payments are allocated between principal and finance cost. The finance
cost is charged to profit or loss over the lease period to produce a constant
periodic rate of interest on the remaining balance of the liability for each
period.
Extension and termination options
Extension and termination options are included in a number of property and
equipment leases across the Group. These are used to maximise operational
flexibility in terms of managing the assets used in the Group's operations.
The majority of extension and termination options held are exercisable only by
the Group and not by the respective lessor.
The Group applies judgement in evaluating whether it is reasonably certain
whether or not to exercise the option to renew or terminate the lease. That
is, it considers all relevant factors that create an economic incentive for it
to exercise either the renewal or termination. After the commencement date,
the Group reassesses the lease term if there is a significant event or change
in circumstances that is within its control and affects its ability to
exercise or not to exercise the option to renew or to terminate.
Recognition exemptions
The Group applies the short-term lease recognition exemption to its short-term
leases, being those leases that have a lease term of 12 months or less from
the commencement date and do not contain a purchase option.
The Group also applies the recognition exemption to leases of which the
underlying asset is of low value, comprising assets below the Group's
capitalisation threshold. Lease payments on short-term leases and leases of
low-value assets are recognised as an expense on a straight-line basis over
the lease term.
Practical expedients
The Group applies a single discount rate to a portfolio of leases with
reasonably similar characteristics.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
2.15 Inventories
Inventories are valued at the lower of cost and net realisable value. Cost is
determined using the historical batch price of the principal raw materials and
the weighted average cost for other ingredients and other product costs. The
cost of finished goods comprises raw materials, packaging costs and
sub-contracted manufacturing costs. Net realisable value is the estimated
selling price in the ordinary course of business, less any costs which would
be incurred in completing the goods ready for sale.
2.16 Trade receivables
Trade receivables are initially measured at fair value and are subsequently
measured at amortised cost using the effective interest rate method. Trade
receivables are presented net of discounts or other variable consideration
adjustments earned, where the expectation and intention is to settle the
balance net. Impairment provisions are recognised based on the simplified
approach in accordance with IFRS 9 using a provision matrix in the
determination of the lifetime expected credit losses. See impairment section
in section '2.6 Financial instruments' for more details.
2.17 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held on call with
banks, and other short‑term highly liquid investments with original
maturities of three months or less. For the purpose of the statement of cash
flows, bank overdrafts are included in the presentation of cash and cash
equivalents.
2.18 Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument
is any contract that evidences a residual interest in assets after deducting
all of its liabilities.
2.19 Bank borrowings and loans
Interest-bearing bank loans and overdrafts are recorded as the proceeds
received, net of direct issue costs (which equate to fair value). Finance
charges including premiums payable on settlement or redemption and direct
issue costs are accounted for on an amortised cost basis in profit or loss
using the effective interest rate method and are added to the carrying amount
of the instrument to the extent that they are not settled in the period in
which they arise.
2.20 Trade payables
Trade payables are initially measured at fair value and are subsequently
measured at amortised cost using the effective interest rate method.
2.21 Provisions
Provisions are recognised when there is a present obligation as a result of a
past event and it is probable that an outflow of resources will be required to
settle the obligation. Provisions are measured at the Directors' best estimate
of the expenditure required to settle the obligation outstanding at the year
end and are discounted to present value where the effect is material.
2.22 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable
for the sale of goods in the ordinary course of the Group's activities. The
Group's revenue is principally derived from selling goods with revenue
recognised at a point in time when control of the goods has transferred to the
customer. This point in time is determined with reference to INCO terms with
that customer, with control of goods deemed to have transferred as per the
relevant INCO terms. The most common terms used by the Group are Carriage,
Insurance and Freight (CIF), Free On Board (FOB), ExWorks (EXW) and Carriage
and Insurance Paid to (CIP).
· For transactions under CIF and FOB, the revenue is recognised at
the point the goods are loaded onto the vessel or aircraft and a bill of
lading or airway bill is issued.
· For transactions under EXW, the revenue is recognised at the
point the goods are collected from the Group's warehouses or factory.
· For transactions under CIP, the revenue is recognised at the
point the goods are loaded on to a truck at the designated point of departure
and a loading note is issued.
Revenue is shown net of value added tax, returns, rebates and discounts and
after eliminating sales within the Group. Transaction price is determined by
the contract and variable consideration relating to discounts, free goods or
volume rebates has been constrained in estimating contract revenue that is
highly probable by using the most likely amount method.
The Group's contracts for delivery of goods are less than 12 months; there are
no warranties within its sales contracts.
Revenue is recognised when the performance obligation is fulfilled, and the
amount can be measured reliably. The performance obligation is fulfilled
when control of the goods passes to the customer, which is normally in
accordance with Incoterms or receipt by customer. No goods are dispatched on a
sale or return basis. Distributors trade on their own account and not as
agents.
The Group also receives interest and royalty income, which are recognised on
an accrual basis.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
2.23 Pensions
Defined contribution scheme
The pension costs charged against operating profits represent the amount of
the contributions payable to the schemes in respect of the accounting period.
Defined benefit scheme
The regular cost of providing retirement pensions and related benefits is
charged to the income statement over the employees' service lives on the basis
of a constant percentage of earnings. The present value of the defined benefit
obligation less the fair value of the plan assets is disclosed as an asset or
liability in the statement of financial position in accordance with IAS 19.
The disclosure of a net defined benefit asset is limited to the present value
of any economic benefit available in the form of refunds from the plan or
reductions in future contributions to the plan. Actuarial gains or losses are
recognised through other comprehensive income.
2.24 Share-based payments
The Group issues equity-settled share options to certain employees in exchange
for services from those employees. Equity-settled share options are measured
at fair value (excluding the effect of non-market based vesting conditions) at
the date of grant.
The fair value determined at the grant date of such equity-settled share
options is expensed on a straight-line basis over the vesting period, based on
the Group's estimate of shares that will eventually vest and adjusted for the
effect of non-market based vesting conditions (with a corresponding movement
in equity).
Fair value is measured by use of the Black-Scholes model for those options
granted with non-market performance conditions. The expected life used in the
model has been established based on management's best estimate of the effects
of non-transferability, exercise restrictions and behaviour
considerations.
In addition, the binomial model has been used to model future market outcomes
for those options granted with a market performance condition.
Further details of the inputs to the Black-Scholes and the binomial model can
be found in note 24 to the accounts.
Share-based payment charges are credited to retained earnings.
2.25 Taxation
Tax expense for the period comprises current and deferred tax.
Current tax, including UK corporation tax and foreign tax, is provided at
amounts expected to be paid (or recovered) using the tax rates and laws that
have been enacted or substantially enacted by the year end. Tax expenses are
recognised in profit or loss or other comprehensive income according to the
treatment of the transactions which give rise to them.
Deferred income tax is recognised, using the liability method, on temporary
differences arising between the tax basis of assets and liabilities and their
carrying amount in the financial statements.
Deferred income tax is determined using tax rates (and laws) that have been
enacted, or substantially enacted, by the date of the statement of financial
position and are expected to apply when the related deferred tax asset is
realised or deferred tax liability is settled.
Deferred tax assets are recognised only to the extent that it is probable that
future taxable profits will be available against which the temporary
differences can be utilised.
IFRIC 23 Uncertainty over Income Tax Treatments
IFRIC 23 provides guidance on the accounting for current and deferred tax
liabilities and assets in circumstances in which there is uncertainty over
income tax treatments. The interpretation requires:
· the Group to determine whether uncertain tax treatments should be
considered separately or together as a group, based on which approach provides
better predictions of the resolution;
· the Group to determine if it is probable that the tax authorities
will accept the uncertain tax treatment; and
· if it is not probable that the uncertain tax treatment will be
accepted, measure the tax uncertainty based on the most likely amount or
expected value, depending on whichever method better predicts the resolution
of the uncertainty. The measurement is required to be based on the assumption
that each of the tax authorities will examine amounts they have a right to
examine and have full knowledge of all related information when making those
examinations.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
2.26 Equity
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
Amounts arising on the restructuring of equity and reserves to protect
creditor interests are credited to the capital redemption reserve.
Amounts arising from share-based payment expenses are recorded within retained
earnings.
The cost of its own shares bought into treasury is debited to retained
earnings as required by the Companies Act 2006. A subsequent sale of these
shares would result in this entry being wholly or partly reversed with any
profit on the sale being credited to share premium.
Amounts arising from the revaluation of non-monetary assets and liabilities
held in foreign subsidiaries, and joint operations are held within the foreign
exchange revaluation reserve.
2.27 Non-controlling interest
For each business combination, the Group elects to measure any non-controlling
interest in the acquiree either at fair value or at their proportionate share
of the acquiree's identifiable net assets. Changes in the Group's interest in
a subsidiary that do not result in a loss of control are accounted for as
transactions with owners in their capacity as owner. Adjustments to
non-controlling interests are based on a proportionate amount of the net
assets of the subsidiary. No adjustments are made to goodwill and no gain or
loss is recognised in the statement of profit or loss.
2.28 Dividend distribution
Dividends are recorded when they become a legal obligation of the Company. For
final dividends, this will be when they are approved by the shareholders at
the AGM. For interim dividends, this will be when they have been paid.
2.29 Critical accounting estimates
The Group makes estimates and assumptions concerning the future. The resulting
accounting estimates will, by definition, seldom equal the related actual
results. The estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within
the next financial year are as follows:
Fair value measurement
A number of assets and liabilities included in the Group's financial
statements require measurement, and/or disclosure of, fair value.
The fair value measurement of the Group's financial and non-financial assets
and liabilities utilises market observable inputs and data as far as possible.
Inputs used in determining fair value measurements are categorised into
different levels based on how observable the inputs used in the valuation
technique utilised are (the 'fair value hierarchy'):
- Level 1: Quoted prices in active markets for identical items
(unadjusted).
- Level 2: Observable direct or indirect inputs other than level 1
inputs.
- Level 3: Unobservable inputs (i.e. not derived from market
data).
The classification of an item into the above levels is based on the lowest
level of inputs used that has a significant effect on the fair value
measurement of the item.
The Group measures a number of items at fair value, including:
· land and buildings (note 12);
· investment property;
· forward foreign exchange contracts;
· pension and other post-retirement benefit commitments (note 23);
· share-based payments (note 24); and
· initial recognition of financial instruments (note 31).
For more detailed information in relation to the fair value measure of the
items above, please refer to the applicable notes.
Pension scheme
The Group maintains one defined benefit pension scheme which has been
accounted for according to the provisions of IAS 19. Although the assumptions
were determined by a qualified actuary, any change in those assumptions may
materially impact the financial position and results of the Group. Details of
the assumptions used can be found in note 23 of the financial statements.
Share-based payments
The charge to the income statement in respect of share-based payments has been
externally calculated using management's best estimates of the number of
options expected to vest and various other inputs to the Black-Scholes and the
binomial model, as disclosed in note 24. Variations in those assumptions in
the model may have a material impact on the Group's results and financial
position at the time of valuation. Those options that contain market
conditions have been valued using the binomial model, and those without have
been calculated using the Black-Scholes model. Management assesses whether the
charge or vested portion should be amended based on an annual reassessment of
the likelihood of non-market based vesting conditions being met.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
2.30 Critical accounting estimates (continued)
Leases - estimating the incremental borrowing rate
Where the Group cannot readily determine the interest rate implicit in the
lease, it uses its incremental borrowing rate (IBR) to measure lease
liabilities. The IBR is the rate of interest that the Group would have to pay
to borrow over a similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value to the right-of-use asset in a
similar economic environment. The IBR therefore reflects what the Group 'would
have to pay', which requires estimation when no observable rates are available
or when they need to be adjusted to reflect the terms and conditions of the
lease.
In practice, the Group considered the following aspects in the assessment of
IBR. Once decided, the IBR will remain unchanged unless there are
modifications in lease terms or changes in the assessment of an option to
purchase the underlying asset.
A base rate that reflects economic environment and the term of the lease. This
is mainly derived from the yield of a government bond issued by the country in
which the Group has in scope leases. Where the term of the lease does not
conform with the maturity period of the bond, the Group considered other
available information such as yields on the bonds with the nearest maturity
period, or the yield curve published by the country's treasury department.
Considering there is often a difference in the cash flow profile between a
lease and government bond, the Group has decided to reduce the base rate by
0.05% to 0.10%.
Financing factors that reflect the lessee companies' risk premium on
borrowing. Management considered the financial strength and credit risk of the
lessee companies and has estimated the credit spread to be in the range of
1.50% to 5.00%.
Asset factors that reflect the quality of hypothetical security. Depending on
the location and type of underlying assets, the Group expects the quality of
security in this hypothetical borrowing transaction to vary. For example, the
right to use a warehouse in rural areas may provide less relevant security
compared to a commercial office in a major city's central business district.
Based on the Group's assessment, the asset factor ranges between - 0.45% to
- 0.50%.
The following are the critical judgements that have been made in the process
of applying the Group's accounting policies and have the most significant
effects on the amounts recognised in financial statements.
Income taxes
The Group is subject to income taxes in the United Kingdom and also in other
jurisdictions.
Significant judgements are required in determining the provision for income
taxes including the use of tax losses and in estimating deferred tax assets
arising from unused tax losses or credits. There are some transactions and
calculations for which the ultimate tax determination is uncertain, including
tax credits for research and development expenditures. The Group recognises
assets and liabilities based on estimates of the final agreed position.
Where the final tax outcome of these matters is different from the amounts
that were initially recorded, such differences will impact the income tax and
deferred tax provisions in the period in which such determination is made.
Deferred tax assets on timing differences are recognised to the extent by
which the Directors estimate that future profits will be generated to utilise
the underlying costs or losses to which they relate.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
2.30 Critical accounting judgements
Capitalisation of intangible assets
The Group assesses development costs incurred for capitalisation in accordance
with the requirements of IAS 38 and the Group's accounting policy described in
note 2.8. In carrying out its assessment the Group considers a range of
factors, each of which requires the use of judgement, in consultation with the
new product development team. Factors considered include: the stage of
development and assessment of technical and commercial feasibility of the
project; the size of the markets in which the Group currently sells products;
and the size of any additional markets in which the Group intends to sell the
product. For key development projects, where there is a higher degree of
estimation uncertainty over future product releases, independent external
consultants are engaged to validate both technical progress and the overall
market appetite for the new product in order to ensure that it remains
reasonable to capitalise associated project costs.
Impairment review of intangible assets
The Group tests annually whether goodwill or other intangible assets with
indefinite life, or not yet available for use, have suffered any impairment.
Other intangible assets are reviewed for impairment when an indication of
potential impairment exists. Impairment provisions are recorded as applicable
based on Directors' estimates of recoverable values.
The recoverable amounts of the cash-generating units (CGUs) to which
intangible assets are allocated are determined from value in use calculations.
The key assumptions for the value in use calculations are those regarding
discount rates, growth rates and the assumption of an indefinite future life
for the assets giving rise to the cash flows. Where intangible assets relate
to future product releases the key assumptions also relate to forecasts for
market share and product pricing. The Group also reviews and quantifies the
tax implications related to any recognised impairments and these are included
within tax calculations as appropriate.
Further details of the impairment reviews performed can be found in note 11 of
the financial statements.
Provisions
Certain aspects of a sales tax related to imported products in a Group
subsidiary might have been applicable. The subsidiary has been importing an
increasing volume of product in recent years but has recently implemented for
its largest customer a new system to avoid this possible dispute. This matter
has been reviewed by the group's local tax experts but is subject to further
review of the tax legislation and ongoing case law. No tax payment has yet
been determined. However, a substantial tax settlement may be required in due
course and a provision has been recognised due to IFRIC 23 Uncertainty over
Income Tax Treatments.
Accounting for ECO Biok as a subsidiary
The Group has determined that it has control over Zhejiang ECO Biok Animal
Health Products Limited ('ECO Biok') and its results are therefore
consolidated within the Group accounts. The Group owns a 51% interest in ECO
Biok, although decisions are made jointly, it is the entity through which the
Group has chosen to enter the Chinese market. ECO Biok depends on the Group
for the right to sell Aivlosin® products, which gives the Group power over
ECO Biok's activities. Therefore it is appropriate to treat ECO Biok as a
subsidiary.
Calculation of expected credit loss
The Group assesses on an annual basis the expected credit loss on the debtors
it holds as at the balance sheet date. It does so by using the higher of
historic loss rates experienced by the group, or a wider measure of likely
default at a country or regional level and applying this against the debtor
balance when profiled for age and origin.
Where there is indicator of possible non-recovery of a large debtor,
management may separately assess the risk of irrecoverability via
probabilistic modelling of possible outcomes or other means.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
3. 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 the 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 the management to assess the underlying business performance. The
details of Adjusted EBITDA is given in note 5.
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
Year ended 31 March 2025
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
Year ended 31 March 2024
Sale of goods 925 24,656 18,480 17,440 19,891 6,452 1,529 89,373
Royalties - - - - - - 49 49
Revenue from external customers 925 24,656 18,480 17,440 19,891 6,452 1,578 89,422
Adjusted EBITDA** (17,281) 7,007 7,229 5,610 3,578 488 843 7,474
Material non-current assets held by non-UK subsidiaries are disclosed in note
15 to these financial statements.
A reconciliation of Adjusted EBITDA for reportable segments to profit from
operating activities is provided as follows:
2025 2024
£000's £000's
Adjusted EBITDA for reportable segments 6,579 7,474
Depreciation (984) (958)
Amortisation of right-of-use assets (681) (683)
Amortisation (1,166) (1,154)
Impairment of right-of-use assets - (80)
Other exceptional items 954 (651)
Share-based payment charges (401) (413)
Profit from operating activities 4,301 3,535
Foreign exchange differences 720 572
Adjusted EBITDA for the Group 7,299 8,046
**Adjusted EBITDA reported for the segments includes foreign exchange gains
and losses. The Adjusted EBITDA for the Group is presented in note 5.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
3. Segment information (continued)
Product revenues
All product revenues are recognised at a point in time.
2025 2024
£000's £000's
Aivlosin® 72,914 82,436
Ecomectin® 2,156 3,340
Others 4,526 3,646
Total 79,596 89,422
Contract balances
2025 2024
Within one year or on demand £000's £000's
At 1 April 3 1,079
Amounts included in contract liabilities that were recognised as revenue (3) (1,079)
during the period
Cash received in advance of performance and not recognised as revenue during 706 3
the period
At 31 March 706 3
The Group recognised contract liabilities of £706,000 at 31 March 2025 (2024:
£3,000). The Group does not hold any long-term sales contracts and any
rebates, discounts or free goods incentives are settled and recognised as
revenue within the next accounting period. Contract balances are reported
within trade and other payables on the statement of financial position.
4. Other income
2025 2024
£000's £000's
Sundry income 148 66
148 66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
5. Result from operating activities
2025 2024
Notes £000's £000's
Result from operating activities is stated after charging/(crediting):
Cost of inventories recognised as an expense 43,164 51,108
Employee benefits expenses 29 15,054 16,795
Amortisation of intangible assets 11 1,166 1,154
Depreciation 12 984 958
Amortisation of right-of-use assets 14 681 683
(Loss)/gain on foreign exchange transactions (720) (572)
Research and development 3,988 4,169
Impairment losses on trade receivables 17 485 603
Fees payable to the Company's auditor for the audit of the parent Company and 334 312
Group annual accounts
Alternative performance measures
Earnings before interest, tax, depreciation, amortisation, revaluation,
impairment, share-based payments and foreign exchange differences (Adjusted
EBITDA)
2025 2024
£000's £000's
Profit from operating activities 4,301 3,535
Depreciation 984 958
Amortisation of right-of-use assets 681 683
Amortisation 1,166 1,154
Impairment of right-of-use assets - 80
Other exceptional items (954) 651
Share-based payments 401 413
6,579 7,474
Foreign exchange differences 720 572
Adjusted EBITDA 7,299 8,046
Exceptional items
2025 2024
£000's £000's
Cessation of distribution business - (933)
Profit on disposal of properties - 282
Profit on disposal of Ecomectin® Horsepaste assets 1,073 -
Cost associated with acquisition activities (249) -
Profit on disposal of Southern African licences 176 -
Other (46) -
Total exceptional items 954 (651)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
5. Result from operating activities (continued)
Management believe that adjusted EBITDA is an appropriate measure of the
Group's performance as it is the initial source for all re-investment and for
all returns to shareholders. Investors, bankers and analysts all focus on this
important measure of underlying performance because it enables them to make
judgements about the Group's ability to generate sufficient cash to meet all
the re-investment needs of the business while still providing adequate returns
to shareholders. Therefore, adjusted EBITDA has a direct relationship with the
value of the Group and is seen by our investors as a key performance indicator
for management.
The following items are adjusted for in the calculation of Adjusted EBITDA as
defined by the Group.
Item Rationale for Adjustment
Depreciation and amortisation These items are a result of past investments and therefore, although they are
correctly recorded as a cost of the business, they do not reflect current or
future cash outflows.
Additionally, depreciation and amortisation calculations are subject to
judgement regarding useful lives and residual values of particular assets and
the adjustment removes the element of judgement.
Revaluation of investment property These are subject to judgement and do not reflect cash flows.
Impairment of right-of-use assets This item is a result of past investments and therefore, although they are
correctly recorded as income or cost of the business, they do not reflect
current or future cash outflows.
Exceptional items These items are a result of one-off changes to cessation of distribution
business and property disposals and therefore, although they are correctly
recorded as income or cost of the business, they do not reflect current or
future cash outflows.
Share-based payments This item is subject to judgement and will never be reflected in the Group's
cash flows.
Foreign exchange differences Since the key driver of this figure is the revaluation of monetary assets
denominated in foreign currency at the period end, which may reverse prior to
settlement, taking this figure out of the EBITDA figure removes volatility
from the performance measure. Foreign exchange movements are largely outside
of the Group's control, so this gives a better measure of the Group's progress
than statutory profit measures which include them.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
6. Finance income/(expense)
2025 2024
£000's £000's
Finance income
Interest received on short-term bank deposits 110 150
Finance costs
Interest paid (200) (473)
Interest paid on lease liabilities (252) (291)
(452) (764)
Net finance costs (342) (614)
7. Earnings per share
The calculation of basic earnings per share is based on the post-tax profit
for the year divided by the weighted average number of shares in issue during
the year.
2025 2024
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
Earnings attributable to ordinary shareholders on continuing operations after 1,686 67,630 2.49 1,048 67,745 1.55
tax
Dilutive effect of share options - 1,812 - - 1,335 -
Diluted earnings per share 1,686 69,442 2.43 1,048 69,080 1.52
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
8. Taxation
2025 2024
£000's £000's
Current tax charge / (credit)
Foreign corporation tax on profits for the year 1,543 1,745
Foreign withholding tax 162 180
Research and development tax credits claimed in the year (119) (1,027)
Research and development tax credits - adjustment for prior year 16 (333)
Research and development tax credits - true-up for prior year - -
Deferred tax
Origination and reversal of temporary differences (227) 401
Income tax charge 1,375 966
2025 2024
£000's £000's
Factors affecting the tax charge for the year
Profit on ordinary activities before taxation 4,009 2,974
Profit on ordinary activities before taxation multiplied by the applicable 1,002 743
rate of UK corporation tax of 25% (2024: 25%)
Effects of:
Non-deductible expenses 568 1,403
Non-chargeable credits (3) (10)
Right-of-use assets depreciation - (55)
Withholding tax on inter-company dividends 162 180
Enhanced allowance on research and development expenditure (347) (627)
Adjustment in respect of prior years 40 (169)
Different tax rate for foreign subsidiaries 6 (57)
Intra-Group dividend - 34
Origin and reversal of temporary differences (272) 720
Unused tax losses carried forward 1,003 (367)
Tax effect of share based payments - (71)
Patent Box claim (784) (758)
Income tax charge 1,375 966
Effective income tax rate 34% 32%
9. Loss for the financial year
2025 2024
£000's £000's
Parent Company's (loss) for the financial year (658) (1,158)
The Company has elected to take the exemption under Section 408 of the
Companies Act 2006 not to present the parent Company income statement.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
10. Dividends
The Board of Directors does not propose that a dividend be paid for the year
ended 31 March 2025 (2024: Nil).
Proposed dividends on ordinary shares are subject to approval at the Annual
General Meeting and are not recognised as a liability as at the date of the
statement of financial position.
11. 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 2023 17,930 407 25,711 44,048
Additions - - 4,122 4,122
Impairment - - (287) (287)
At 31 March 2024 17,930 407 29,546 47,883
Additions - - 4,648 4,648
Disposal - - (105) (105)
At 31 March 2025 17,930 407 34,089 52,426
Amortisation
At 31 March 2023 - (178) (8,234) (8,412)
Charge for the year - (20) (1,134) (1,154)
Disposal - - 268 268
Impairment - - (234) (234)
At 31 March 2024 - (198) (9,334) (9,532)
Charge for the year - (20) (1,146) (1,166)
Disposal - - 106 106
Impairment - - - -
At 31 March 2025 - (218) (10,374) (10,592)
Net book value
At 31 March 2025 17,930 189 23,715 41,834
At 31 March 2024 17,930 209 20,212 38,351
At 31 March 2023 17,930 229 17,477 35,636
The amortisation and impairment charges are included within administrative
expenses in the income statement.
Distribution rights are amortised over their estimated useful life of 20 years
and reviewed for impairment when any indication of potential impairment
exists. The remaining amortisation period at the date of the financial
statements ranged from 3 to 20 years.
The acquisition of ECO Animal Health Limited in October 2004 gave the Group
ownership of the intellectual property and established distribution networks
in respect of Aivlosin® and Ecomectin® and gave rise to £17,359,000 of
goodwill. The acquisitions of Zhejiang Eco Biok Animal Health Products Limited
in 2007 and ECO Animal Health Japan Inc in 2009 opened further distribution
and sale opportunities for Aivlosin® and Ecomectin® and gave rise to
£94,000 and £477,000 of goodwill respectively.
Goodwill acquired in a business combination is allocated at acquisition to the
cash-generating units (CGUs) that are expected to benefit from the business
combination.
The Group has recalculated the headroom as it would have been at March 2025
when comparing the net present value of cash flows to the carrying value of
goodwill. The goodwill impairment review uses cash flows from the Group's
global revenues in respect of Aivlosin® and Ecomectin®. Expected future
cash flows in respect of new vaccines - both the outflows on research and
development of these new products and the forecast revenues from sales - are
excluded. Intangible assets in respect of new vaccines are tested for
impairment separately. This approach is appropriate given that the
acquisitions which gave rise to the goodwill balance were made to enhance the
Group's global capacity to sell Aivlosin® and Ecomectin® products rather
than new products expected to be introduced following successful completion of
current R&D projects.
The recoverable amount of the CGU is determined from value in use
calculations. The key assumptions for the value in use calculations are those
regarding discount rates, growth rates and the estimated remaining useful life
of the asset.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
11. Intangible assets (continued)
The Group prepares cash flow forecasts that represent a reasonable expectation
of performance over the 12 months post year-end. This expectation is then
extrapolated into the future using a 3% annual growth rate. The directors
believe that the long-term growth rate does not exceed the average long-term
growth rate for the relevant markets.
Management estimates discount rates using the pre-tax rates that reflect
current market assessments of the time value of money and the risks specific
to the CGU. In the current year management estimated the applicable rate to be
11% (2024: 10%). Management considers that there is adequate headroom when
comparing the net present value of the cash flows to the carrying value of
goodwill to conclude that no impairment is necessary this year. On assumptions
as at each period end the excess of recoverable amount over carrying value is
over £107m (2024: £86m).
Management believes that the most significant assumption in the calculation of
value in use is the term over which the cash flows are modelled. However, even
if the growth rate were to be zero, the present value of the cashflows over
the next three years would exceed the carrying amount.
The net book value of drug registrations, patents and licence costs can be
broken down as follows:
2025 2024
£000's £000's
Aivlosin® 11,653 12,655
Ecomectin® 360 500
Vaccines 11,649 7,001
Others 53 56
23,715 20,212
Aivlosin® is a highly effective antibiotic that treats a range of specific
enteric (gut) and respiratory diseases in pigs and poultry, ensuring a rapid
return to health. In addition to the welfare benefits, healthy animals gain
weight faster, digest food more efficiently and get to market earlier which
all bring economic benefit to the farmer. Substantial ongoing product
development covering more formulations, species and diseases is expected to
substantially further increase its revenue generating potential. The remaining
useful life ranges between 7 and 20 years, where the shortest period relates
to assets on the balance sheet which received regulatory approval a number of
years ago and have been amortised over a number of years, and where the
remaining useful life of 20 years relates to capitalised assets which have not
yet received regulatory approval and whose amortisation has not yet commenced.
Ecomectin® is an endectocide that controls worms, ticks, lice and mange in
grazing stock and pigs. The remaining useful life is 2 years.
At 31 March 2025 intangible assets included £11,745,000 (2024: £7,173,000)
of assets capitalised that had not commenced their useful life, of which
approximately £75,000 (2024: £75,000) were Aivlosin® related products.
The impairment review for intangible assets relating to ongoing development
activity, for which regulatory approval is expected to be received at a future
date, is performed with reference to cash flow projections modelled in each
development project's business case. The cash flows in these business cases
reflect the expected economic life of the new product (a period of more than 5
years) and the variables captured include the costs to complete the
development activity, the future product sale price, expected future market
share, the rate of market penetration for new product releases and overall
market size. The market size comprises a number of factors, including the
total population of the target animal species, the replacement rate (which in
the case of poultry is the length of time during which they are productive
layers), the proportion of the species population prone to the diseases to
which ECO's product is directed and the proportion of the population which is
subject to vaccination. In determining these factors uses the expertise of
own teams, particularly members of the R&D, marketing, sales and finance
teams. Third-party data is reviewed to enhance the accuracy of the estimates
used. For key development projects, independent external consultants are
engaged to validate both technical progress and the overall market appetite
for the new product.
Drug registrations and licences are amortised over their estimated useful
lives of 10 to 20 years, which is the Directors' estimate of the time it would
take to develop a new product allowing for the Group's patent protection and
the exclusivity period which comes with certain registrations. All such costs
are recorded in the Corporate/UK reporting segment.
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 year to March 2025
there were no indications that an impairment was necessary (2024: impairment
of £234,000).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
12. Property, plant and equipment
Group Freehold land and buildings Leasehold improvements Plant and machinery Fixtures, fittings and equipment Motor vehicles Total
£000's £000's £000's £000's £000's £000's
Cost or valuation
At 31 March 2023 720 751 4,604 2,398 372 8,845
Additions - - 366 82 54 502
Disposals (615) - (90) (737) (35) (1,477)
Foreign exchange movements (7) - (144) (127) (18) (296)
At 31 March 2024 98 751 4,736 1,616 373 7,574
Additions 32 - 95 230 - 356
Disposals - - (42) (98) - (140)
Foreign exchange movements (4) - (58) (34) (28) (124)
At 31 March 2025 126 751 4,731 1,714 345 7,667
Depreciation
At 31 March 2023 (63) (331) (451) (1,651) (252) (2,748)
Charge for the year (26) (129) (453) (333) (17) (958)
Disposals 69 - 90 737 35 931
Foreign exchange movements 1 - 2 - - 3
At 31 March 2024 (19) (460) (812) (1,247) (234) (2,772)
Charge for the year (8) (137) (461) (354) (24) (984)
Disposals - - 42 98 - 140
Foreign exchange movements - - (13) 4 (4) (13)
At 31 March 2025 (27) (597) (1,244) (1,499) (262) (3,629)
Net book value
At 31 March 2025 99 154 3,487 215 83 4,038
At 31 March 2024 79 291 3,924 369 139 4,802
At 31 March 2023 657 420 4,153 747 120 6,097
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
12. Property, plant and equipment (continued)
Company Freehold land and buildings Fixtures, fittings and equipment Total
£000's £000's £000's
Cost or valuation
At 31 March 2023 615 183 798
Additions - - -
Disposals (615) (182) (797)
At 31 March 2024 - 1 1
Additions - - -
Disposals - - -
At 31 March 2025 - 1 1
Depreciation
At 31 March 2023 (50) (183) (233)
Charge for the year (19) - (19)
Disposals 69 182 251
At 31 March 2024 - (1) (1)
Charge for the year - - -
Disposals - - -
At 31 March 2025 - (1) (1)
Net book value
At 31 March 2025 - - -
At 31 March 2024 - - -
At 31 March 2023 565 - 565
13. Income tax recoverable and payable
Income tax recoverable 2025 2024
£000's £000's
UK repayable tax credit in respect of R&D expenditure 1,143 2,743
Other overseas tax (payable)/receivable - (56)
1,143 2,687
Income tax payable 2025 2024
£000's £000's
Overseas tax payable (801) (687)
(801) (687)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
14. Right-of-use assets
Group Property Vehicles Other Total
£000's £000's £000's £000's
Cost or valuation
At 31 March 2023 5,387 295 9 5,691
Additions 412 52 - 464
Disposals (315) - (9) (324)
Impairment - - - -
Foreign exchange movements (238) - - (238)
At 31 March 2024 5,246 347 - 5,593
Additions 430 65 - 495
Disposals (132) (83) - (215)
Impairment - - - -
Foreign exchange movements (151) - - (151)
At 31 March 2025 5,393 329 - 5,722
Depreciation
At 31 March 2023 (1,263) (145) (1) (1,409)
Charge for the year (620) (63) - (683)
Disposals 187 - 1 188
Impairment (52) - - (52)
Foreign exchange movements 35 - - 35
At 31 March 2024 (1,713) (208) - (1,921)
Charge for the year (610) (71) - (681)
Disposals 132 68 - 200
Impairment - - - -
Foreign exchange movements 79 - - 79
At 31 March 2025 (2,112) (211) - (2,323)
Net book value
At 31 March 2025 3,281 118 - 3,399
At 31 March 2024 3,533 139 - 3,672
At 31 March 2023 4,124 150 8 4,282
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
14. Right of use assets (continued)
Company Vehicles Other Total
£000's £000's £000's
Cost or valuation
At 31 March 2023 140 - 140
Additions 21 - 21
At 31 March 2024 161 - 161
At 31 March 2025 100 - 100
Depreciation
At 31 March 2023 (69) - (69)
Charge for the year (33) - (33)
At 31 March 2024 (102) - (102)
Charge for the year (32) - (32)
At 31 March 2025 (80) - (80)
Net book value
At 31 March 2025 20 - 20
At 31 March 2024 59 - 59
At 31 March 2023 71 - 71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
15. Investments
Group Investment in associate Unlisted investments Total
£000's £000's £000's
At 31 March 2023 243 9 252
Share of associate's result for the year 53 - 53
Foreign exchange differences (37) - (37)
At 31 March 2024 259 9 268
Share of associate's result for the year 50 - 50
Foreign exchange differences (2) - (2)
At 31 March 2025 307 9 316
Company Unlisted investments (subsidiaries) Total
£000's £000's
Cost
At 31 March 2023 21,165 21,165
Additional investment 286 286
At 31 March 2024 21,451 21,451
Additional investment 239 239
At 31 March 2025 21,690 21,690
Impairment
At 31 March 2023 - -
Impairment charge - -
At 31 March 2024 - -
Impairment charge - -
At 31 March 2025 - -
Net book value
At 31 March 2025 21,690 21,690
At 31 March 2024 21,451 21,451
At 31 March 2023 21,165 21,165
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
15. Investments (continued)
The Company holds more than 20% of the share capital of the following
companies:
Subsidiary undertakings held by the Company
Company Registered office address Country of registration or incorporation Class Shares held %
Zhejiang ECO Biok Animal Health Products Limited Zhongguan Industrial Area, Deqing, Zhejiang Province P. R. China Ordinary 3*
ECO Animal Health Limited The Grange, 100 High Street, Southgate, N14 6BN England & Wales Ordinary 100
Subsidiary undertakings held by the Group
Company Registered office address Country of registration or incorporation Class Shares held %
ECO Animal Health Southern Africa (Pty) Limited. 228 Athol Road, Highlands North, Johannesburg 2192 South Africa Ordinary 100
Zhejiang ECO Biok Animal Health Products Limited. Zhongguan Industrial Area, Deqing, Zhejiang Province P. R. China Ordinary 51*
Shanghai ECO Biok Veterinary Drug Sale Company Ltd. (via Zhejiang ECO Biok Room 1502-3, Imago Plaza, No. 99 Wuning Road, Ptro District, Shanghai 200063 P. R. China Ordinary 51
Animal Products Ltd.)
Zhejiang ECO Animal Health Limited Zhongguan Industrial Area, Deqing, Zhejiang Province P. R. China Ordinary 100
ECO Animal Health do Brasil Comercio de Produtos Veterinarios Ltda. Rua Antonio Amstalden Nº 70, R Antonio Amstalden, Armazem III ALA 02, Capela, Brazil Ordinary 100
Vinhedo
ECO Animal Health Japan Inc. 1-2-1, Hamamatsu-cho, Minato-Ku, Tokyo Japan Ordinary 100
ECO Animal Health USA Corp. 344 Nassau Street, Princeton, New Jersey, 08540 USA Ordinary 100
Interpet LLC. 3775 Columbia Pike, Ellicott City, Maryland, 21043 USA Ordinary 100
ECO Animal Health de Mexico, S de R.L. de C.V. Av Techologico Sur 134-4, Unidad Habitacional Moderna, Queretaro, 76030 Mexico Ordinary 100
ECO Animal Health de Argentina S.A. Calle 4 E 43/44 N: 581 P.6 D:B La Plata, Buenos Aires Argentina Ordinary 100
ECO Animal Health Malaysia Sdn. Bhd. 10(th) Floor, Menara Hap Seng, No 1 & 3, Jalan P Ramlee, 50250 Kuala Malaysia Ordinary 100
Lumpur
ECO Animal Health India (Private) Ltd No 33/5, Second Floor, Mount Kailash Building, Meanee Avenue Road, Ulsoor India Ordinary 100
Bangalore, Karnataka, 560042
ECO Animal Health Europe Ltd 6th Floor, South Bank House, Barrow Street, Dublin, D18 TR29 Republic of Ireland Ordinary 100
*The Group's control over its China based subsidiary Zhejiang ECO Biok Animal
Health Products Limited is achieved via a joint holding of 51% of the entity's
ordinary share capital between the Company (3%) and its UK based trading
subsidiary ECO Animal Health Limited (48%).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
15. Investments (continued)
Subsidiary undertakings held by the Group (continued)
The principal activity of these undertakings for the last relevant financial
year was as follows:
Company name Principal activity
ECO Animal Health Limited Distribution of animal medicines
ECO Animal Health Southern Africa (Pty) Limited Non-trading
Zhejiang ECO Biok Animal Health Products Limited Manufacture of animal medicines
Shanghai ECO Biok Veterinary Drug Sale Company Ltd. Distribution of animal medicines
Zhejiang ECO Animal Health Limited Procurement of raw materials
ECO Animal Health do Brasil Comercio de Produtos Veterinarios Ltda Distribution of animal medicines
ECO Animal Health Japan Inc. Distribution of animal medicines
ECO Animal Health USA Corp. Distribution of animal medicines
Interpet LLC Non-trading
ECO Animal Health de Mexico, S. de R. L. de C. V. Distribution of animal medicines
ECO Animal Health de Argentina S.A. Non-trading
ECO Animal Health Malaysia Sdn. Bhd Non-trading
ECO Animal Health India (Private) Ltd Non-trading
ECO Animal Health Europe Ltd Distribution of animal medicines
During the year the Group established an Employee Share Ownership Trust (the
'ESOT'). The assets, liabilities and returns of the ESOT are consolidated
within the results of the ESOT's sponsoring company, Eco Animal Health Group
plc.
The address of the ESOT is 26 New St, St Helier, Jersey JE2 3RA, Jersey.
Zhejiang ECO Biok Animal Health Products Limited, Zhejiang ECO Animal Health
Limited and ECO Animal Health do Brasil Comercio de Produtos Veterinarios Ltda
all have 31 December year ends. The Group receives management accounts for the
three months to 31 March for these subsidiaries for use in preparing the
consolidated financial statements.
Interpet LLC has been excluded from consolidation as it holds no assets or
liabilities and has ceased trading.
The following trading subsidiaries have no requirement for audit under local
legislation:
ECO Animal Health do Brasil Comercio de Produtos Veterinarios Ltda.
ECO Animal Health Japan Inc.
ECO Animal Health USA Corp.
ECO Animal Health de Mexico, S. de R. L. de C. V.
ECO Animal Health Group plc has given statutory guarantees against all the
outstanding liabilities of ECO Animal Health Ltd, thereby allowing its
subsidiary to be exempt from the annual audit requirement under Section 479A
of the Companies Act, for the year ended 31 March 2025.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
15. Investments (continued)
Non-controlling interests
Zhejiang ECO Biok Animal Health Products Limited (Zhejiang ECO Biok) and
Shanghai ECO Biok Veterinary Drug Sale Company Limited (Shanghai ECO Biok),
both 51% owned subsidiaries of the Group, have material non-controlling
interests (NCI). Summarised financial information in relation to these two
subsidiaries is presented below together with amounts attributable to NCI.
Please note that as Shanghai ECO Biok is a 100% owned subsidiary of Zhejiang
ECO Biok, the summarised results below are consolidated at Zhejiang ECO Biok
level, before wider Group eliminations.
Summarised statement of comprehensive income 2025 2024
For the year ended 31 March £000's £000's
Revenue 19,523 21,599
Cost of sales (12,324) (13,322)
Gross profit 7,199 8,277
Administrative expenses (4,517) (5,394)
Operating profit/(loss) 2,682 2,883
Other income 109 32
Finance income (143) (142)
Profit before tax 2,648 2,773
Tax expense (713) (814)
Profit after tax 1,935 1,959
Profit allocated to NCI 948 960
Other comprehensive (loss)/income allocated to NCI (307) (738)
Summarised balance sheet 2025 2024
As at 31 March £000's £000's
Assets:
Property, plant and equipment 440 570
Right-of-use assets 2,572 3,002
Deferred tax assets 184 189
Inventories 2,875 3,963
Trade and other receivables 5,053 4,528
Cash and cash equivalents 10,951 11,948
22,075 24,200
Liabilities:
Trade and other payables 2,126 2,873
Contract liabilities 705 3
Lease liabilities - short term 286 255
Lease liabilities - long term 2,673 3,050
5,790 6,181
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
15. Investments (continued)
Summarised cash flows 2025 2024
For the year ended 31 March £000's £000's
Cash flows from operating activities 2,058 4,357
Cash flows from investing activities (74) (75)
Cash flows from financing activities (2,622) (6,221)
Foreign exchange movements (359) (989)
Net increase/(decrease) in cash and cash equivalents (997) (2,928)
Joint operations
The Group also holds (by means of its ownership of ECO Animal Health USA
Corp.), a 50% interest in Pharmgate Animal Health LLC, which is resident in
the USA. Pharmgate Animal Health LLC distributes the Group's products in the
USA.
The Group also holds (by means of its ownership of ECO Animal Health Ltd) a
50% interest in Pharmgate Animal Health Canada Inc, which distributes its
products into Canada.
Both Pharmgate Animal Health LLC and Pharmgate Animal Health Canada Inc. have
accounting years which end on 31 December.
The Group's holdings in each of the joint operations' share capital is given
in the table below:
Pharmgate Animal Health Canada Inc Holding Shares Holding
(shares) in issue %
Common shares 100 200 50
Class A shares 100 100 100
Class B shares - 100 -
Pharmgate Animal Health USA LLC Holding Shares Holding
(shares) in issue %
Common shares 100 200 50
Class A shares 100 100 100
Class B shares - 100 -
ECO-Pharm Limited Holding Shares Holding
(shares) in issue %
Common shares 25,000 50,000 50
Class A shares 1 1 100
Class B shares - 1 -
In the case of Pharmgate Animal Health Canada Inc and Pharmgate Animal Health
USA LLC, A shares carry the rights to dividends payable out of profits
attributable to the Group. These are made up of profits made by products
supplied by the ECO Group plus 50% of any profit relating to new products
developed jointly by the partners to the joint operation.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
15. Investments (continued)
The following amounts included in the Group's financial statements are related
to its interest in these joint operations.
Pharmgate Animal Health LLC Pharmgate Animal Health Canada Inc
2025 2024 2025 2024
£000's £000's £000's £000's
Non-current assets - - - -
Current assets 2,292 2,012 418 473
Current liabilities (2,265) (1,984) (418) (473)
Sales 17,366 14,912 4,047 3,568
Profit after tax - - - -
Associated company
The Group also holds (by means of its ownership of ECO Animal Health Japan
Inc.) a 47.62% interest in EcoPharma.com which is resident in Japan. This
company distributes animal health products and other general merchandise
within Japan.
ECO Animal Health Japan Inc's holding in EcoPharma.com is 10,000,000 shares
out of a total of 21,000,000 shares.
The following amounts included in the Group's financial statements are related
to its interests in this associated company.
2025 2024
£000's £000's
Investments (share of net assets)
At 1 April 259 243
Share of results for the year 50 53
Foreign exchange movement (2) (37)
At 31 March 307 259
2025 2024
Summarised financial information £000's £000's
At 31 March
Current assets 920 813
Non-current assets 90 71
Current liabilities (282) (239)
Non-current liabilities (83) (101)
Net assets (100%) 645 544
Group share of net assets (47.62%) 307 259
Year ended 31 March
Revenue 2,124 2,106
Net profit 105 110
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
16. Inventories
Group Company
2025 2024 2025 2024
£000's £000's £000's £000's
Raw materials and consumables 6,542 9,039 - -
Finished goods and goods for resale 3,832 5,425 - -
Work in progress 4,179 2,491 - -
14,553 16,955 - -
The above total includes the provision of inventory amounting to £187,000
(2024: £631,000).
£75,000 of stock was written off in the year ended 31 March 2025 (2024
£nil). Inventory provisions totalling £439,000
were released in this period (2024 £nil).
17. Trade and other receivables
Group Company
2025 2024 2025 2024
£000's £000's £000's £000's
Non-current:
Amounts owed by group undertakings - - 48,937 51,078
The inter-company debt is due on demand, however the Company has classified
the receivable as a non-current asset as it does not expect to realise the
asset within 12 months after the reporting period.
Group Company
2025 2024 2025 2024
£000's £000's £000's £000's
Current:
Trade receivables 25,435 29,835 - -
Other receivables 2,217 1,816 1,393 1,444
Prepayments and accrued income 864 524 271 254
28,516 32,175 1,664 1,698
The ageing analysis of these trade receivables is as follows:
Trade receivables ECL rate ECL allowance Net of impairment
£000's % £000's £000's
Current 18,572 2.09% 388 18,184
Up to 3 months past due 2,581 11.00% 284 2,297
3 to 6 months past due 2,592 5.75% 149 2,443
Over 6 months past due 3,587 30.00% 1,076 2,511
27,332 1,897 25,435
Group 2024
Trade receivables ECL rate ECL allowance Net of impairment
£000's % £000's £000's
Current 24,458 0.66% 161 24,297
Up to 3 months past due 4,115 4.41% 181 3,934
3 to 6 months past due 1,137 9.11% 104 1,033
Over 6 months past due 1,564 63.49% 993 571
31,274 1,439 29,835
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
17. Trade and other receivables (continued)
The Group measures its trade receivables at amortised cost and estimates the
allowance for expected credit loss ("ECL") using a provision matrix based on
the Group's historical credit loss experience or market rates. The market
rates are then adjusted for factors that are specific to the debtors, general
economic conditions and an assessment of both the current as well as the
forecast conditions.
This approach enables the Group to determine unbiased and probability-weighted
estimates of credit losses for the lifetime of those trade receivables as
required by IFRS 9.
The allowance for ECL in FY25 makes up 6.9% of all trade receivable balances
while in FY24, the allowance made up 4.3% of total trade receivable balances.
The allowance for ECL in FY25 makes up 21.7% of all overdue balances.
The increase in the provision is driven by:
- Worsening age profiles of outstanding trade debtors;
- Circumstances affecting certain of the Group's customer
requiring additional allowance.
Movement on the Group provision for impairment of trade receivables is as
follows:
Group 2025 2024
£000's £000's
Balance at 1 April 1,439 845
Additional provision made 753 837
(Recovered) in the year (268) (175)
Written off in the year - (59)
Other (27) (9)
Balance at 31 March 1,897 1,439
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
18. Deferred tax
Group
Deferred tax assets and liabilities are attributable to the following:
2024 2023
£000's £000's
Trade related temporary differences (3,527) (3,875)
Freehold property - -
Investment property - -
Plant and equipment 4 (96)
Pension scheme (58) (58)
Deferred tax on share options 97 128
Tax losses carried forward 2,622 2,622
Total deferred tax (liabilities) (862) (1,279)
Overseas deferred tax assets 1,074 1,437
Total deferred tax assets 1,074 1,437
Sum of assets minus liabilities 212 158
The movement on the deferred tax account can be summarised as follows:
Deferred tax Trade related temporary differences Tax losses carried forward Property Plant and machinery Pension scheme Shares Overseas temporary differences Overseas tax losses Total
£000's £000's £000's £000's £000's £000's £000's £000's £000's
(Charge) / credit for the year through income statement (790) - (26) - (13) 72 141 215 (401)
At 31 March 2024 (3,875) 2,622 - (96) (58) 128 396 1,041 158
(Charge) for the year through income statement 348 - - 100 - (31) (396) 33 54
At 31 March 2025 (3,527) 2,622 - 4 (58) 97 - 1,074 212
Trade related temporary differences relate predominantly to research and
development tax deductions claimed in advance of expense recognition in the
income statement, carried forward trading losses and a provision for
unrealised profit arising on consolidation. The tax losses carried forward are
not expected to expire under current legislation.
Any future dividend received from the Chinese subsidiary Zhejiang ECO Biok
Animal Health Products Limited will be subject to a 5% withholding tax. The
deferred tax liability in respect of this has not been recognised.
Company Property Pension scheme Shares Total
2025 2025 2025 2025
£000's £000's £000's £000's
At 1 April 2023 26 (45) 31 12
Credit/(charge) for the year through income statement (26) (13) 27 (12)
At 1 April 2024 - (58) 58 -
Credit/(charge) for the year through income statement - - (9) (9)
At 31 March 2025 - (58) 49 (9)
At the year ended 31 March 2025 the Group has unused unrecognised overseas tax
losses amounting to £332,000 (2024: £547,000), and unused unrecognised UK
tax losses amounting to £12,315,000 (2024: £6,311,000). These tax losses are
not expected to expire.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
19. Cash and cash equivalents
Cash and cash equivalents comprise cash and short-term deposits held by the
Group net of amounts outstanding on bank overdraft. The carrying amount of
these assets is not significantly different to their fair value.
Group Company
2025 2024 2025 2024
£000's £000's £000's £000's
Cash and cash equivalents 25,006 22,374 1,515 363
Cash and cash equivalents presented in the statement of cash flows 25,006 22,374 1,515 363
Balances drawn on the bank overdraft facility are repayable on demand and form
an integral part of the cash management of the Group and Company. In the
statement of cash flows, the Group and the Company have presented cash and
cash equivalents net of balances outstanding on bank overdrafts. Amounts drawn
and repaid on the overdraft facility are therefore considered as part of
changes in cash and cash equivalents and are not presented as financing cash
flows.
Cash and short-term deposits held in China are subject to local exchange
control regulations. These regulations provide for restrictions on exporting
capital from those countries, other than through normal dividends. The
carrying amount of the assets included within the consolidated financial
statements to which these restrictions apply is £14.9m (2024: £14.3m).
Significant non-cash transactions from investing activities are as follows:
Group Company
2025 2024 2025 2024
£000's £000's £000's £000's
Acquisition of property, plant and equipment by means of leases or not yet 495 464 - 21
paid at year end
Acquisition of intangible assets not yet paid at year end 1,160 272 - -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
20. Trade and other payables
Group Company
2025 2024 2025 2024
£000's £000's £000's £000's
Trade payables 9,794 10,119 149 75
Contract liabilities 706 3 - -
Other payables 1,030 1,205 141 167
Accruals and deferred income 3,541 6,026 383 562
15,071 17,353 673 804
21. Borrowings
Group Company
2025 2024 2025 2024
£000's £000's £000's £000's
Cash and cash equivalents 25,006 22,374 1,515 363
Lease liabilities (3,785) (4,025) (18) (62)
Net cash 21,221 18,349 1,497 301
The Group has an overdraft facility in certain currencies in respect of a pool
of bank accounts held with NatWest Bank plc.
The interest rate for all currency overdrafts is 1.8% over the relevant
currency base rate and the borrowings are secured by two debentures held over
the assets of the Group. Any drawdown of this facility is repayable on demand.
The Company and ECO Animal Health Limited have each given a guarantee to the
Group's bankers for the overdraft facility. The facility has a gross and net
limit of £5,000,000, which may be borrowed and repaid at will.
At 31 March 2025, the undrawn facility was £5,000,000 (2023: £5,000,000).
At 31 March 2025, the Group has an undrawn revolving credit facility
£10,000,000 (2023: £10,000,000) with Natwest. This facility is interest
bearing and can be drawn by the Group on demand, The facility expires on 30
June 2026.
Reconciliation of lease liabilities
Group Company
2025 2024 2025 2024
£000's £000's £000's £000's
Opening lease liabilities (4,025) (4,480) (63) (75)
New lease liabilities 360 (416) - (22)
Repayment 890 884 42 45
Lease liabilities interest (252) (291) (4) (11)
Disposal 25 92 7 -
Foreign exchange (783) 186 - -
Closing lease liabilities (3,785) (4,025) (18) (63)
Current lease liabilities (621) (646) (15) (50)
Non-current lease liabilities (3,164) (3,379) (3) (13)
The Group leases a number of properties and motor vehicles in the
jurisdictions it operates in. At 31 March 2025 there were no termination or
extension options on leases.
The Group expensed £70,000 for the year ended 31 March 2025 (2024: £71,000)
for short-term leases.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
21. Borrowings (continued)
Group leases maturity
At 31 March 2025 the Group held the following number of leases in each of the
maturity categories below.
At 31 March 2025 Property Vehicle Other Total
Number Number Number Number
Up to 1 year 9 2 1 12
Between 1 - 5 years 6 6 2 14
Over 5 years 1 - 2 3
Total number of leases 16 8 5 29
Average remaining lease term (in years) 1.7 1.6 3.2 1.9
At 31 March 2024 Property Vehicle Other Total
Number Number Number Number
Up to 1 year 4 1 2 7
Between 1 - 5 years 8 9 3 20
Over 5 years 2 - - 2
Total number of leases 14 10 5 29
Average remaining lease term (in years) 2.5 1.8 1.5 2.1
Amounts payable under lease arrangements for the Group
The undiscounted contractual cash flows payable under the existing lease
arrangements at 31 March are analysed into the following maturity categories.
Group 2025 2024
£000's £000's
Up to 1 year 1,036 1,135
Between 1 - 5 years 2,123 2,055
Over 5 years 748 1,085
Total 3,907 4,275
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
22. Provisions
Litigation Overseas tax Customer goodwill Total
£000's £000's £000's £000's
At 31 March 2023 456 4,598 124 5,178
Charge for year through income statement - 507 208 715
Foreign Exchange - (34) - (34)
At 31 March 2024 456 5,071 332 5,859
Charge for year through income statement - 216 (332) (116)
Foreign Exchange - (779) - (779)
At 31 March 2025 456 4,508 - 4,964
Provisions include an amount of £456,000 in respect of personnel related
litigation matters. Management has assessed the range of possible outcomes to
these claims and the provision made represents a best estimate, and is
mid-range of the possible outcomes, having taken legal advice. ECO management
is vigorously defending the claims and the timing of any settlement is
uncertain due to the varying nature of the claims and the availability of the
relevant courts if required.
Provisions also include an amount of £4,508,000 in respect of overseas tax
liabilities. Certain aspects of a sales tax related to imported products in a
Group subsidiary might have been applicable. The subsidiary has been importing
an increasing volume of product into this country in recent years. This matter
remains uncertain and subject to further review of the tax legislation and
case law. No tax payment has yet been determined. However, a substantial tax
settlement may be required in due course and a provision has been recognised
alongside a corresponding deferred tax asset.
23. Pension and other post-retirement benefit commitments
Defined contribution pension scheme
The Group operates defined contribution pension schemes. The assets of the
schemes are held separately from the Group and independently administered by
insurance companies. The pension cost charge represents contributions payable
to the funds in the year and amounted to £56,269 (2024: £108,491).
Defined benefit pension scheme
The Group operates a defined benefit pension scheme in the UK for a number of
ex-employees which is closed to new members. A full actuarial valuation was
carried out at 6 April 2022 and updated on 31 March 2025 for IAS 19 purposes
by a qualified independent actuary. The major assumptions used by the actuary
were:
31 March 2025 31 March 2024
Discount rate 5.25% 4.75%
RPI inflation n/a 3.45%
Deferred revaluation rate CPI max 5% p.a. n/a 2.45%
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
23. Pension and other post-retirement benefit commitments
(continued)
Mortality rates
No pre-retirement mortality is assumed (2024: none). Post retirement mortality
is based on 100% of the SAPS 'S4' normal tables, based on the members' year of
birth, improving in line with CMI 2023 projections with a 1.00% long-term
trend rate (2024: 1.00%).
Under these mortality assumptions, the expected future lifetime for a member
retiring at age 65 at the year-end would be 20.9 years for males (2024: 21.0
years) and 23.4 years for females (2024: 23.2 years). For members retiring in
20 years' time, the expectation of life would be 21.9 years for males (2024:
22.0 years) and 24.6 years for females (2024: 24.4 years).
The weighted average term of the liabilities is 5 years (2024: 7 years).
The scheme is exposed to a number of risks including:
§ Interest rate risk: Movements in the discount rate used could affect the
present value of the defined benefit pension obligations.
§ Longevity risk: Changes in the estimated mortality rates of former
employees could affect the present value of the defined benefit pension
obligations.
§ Investment risk: Variations in the actual return from the scheme's
investments could affect the scheme's ability to meet its future pension
obligations
2025 2024
£000's £000's
Assets at start of year 1,202 1,135
Defined benefit obligation at start of year (969) (954)
Net asset/(liability) at 1 April 233 181
Return on assets 54 55
Interest cost (43) (46)
11 9
Gain/(loss) on return on plan assets in excess of interest income 77 40
Gain/(loss) on demographic assumptions 23 4
Gain/(loss) on financial assumptions 26 (1)
Gain/(loss) on experience adjustment (140) -
Statement of other comprehensive income (14) 43
Employer contributions (gross) - -
Net asset at 31 March 230 233
Actual assets at end of year 1,213 1,202
Actual defined benefit obligation at end of year (983) (969)
Gain/(loss) on changes in assumptions was £23,000 gain (2024: £nil) relating
to changes in demographic assumptions and a gain of £26,000 (2024: £1,000
loss) relating to changes in financial assumptions.
The pension fund assets (principally made up of annuities for the benefit of
active pensioners) are all held within a policy managed by an insurance
company regulated by the Financial Conduct Authority of the United Kingdom and
the United Kingdom Pensions Regulator. By law, the trustees are required to
act in the best interests of participants to the schemes. Responsibility for
governance of the plans - including investment decisions and contribution
schedules - lies with trustees.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
23. Pension and other post-retirement benefit commitments
(continued)
Reconciliation of changes in the asset value during the year 2025 2024
£000's £000's
Fair value of assets at 1 April 1,202 1,135
Return on assets 54 55
Gain/(loss) on asset return 77 40
Employer contributions (gross) - -
(Decrease)/increase in secured pensioners' value due to scheme experience - (28)
Benefits paid (120) -
Fair value of assets at 31 March 1,213 1,202
Reconciliation of changes in the liability value during the year
Defined benefit obligation at 1 April 969 954
Interest cost 43 46
(Loss)/gain on demographic assumptions (26) 1
(Loss)/gain on financial assumptions (23) (4)
(Loss)/gain on experience adjustment 140 -
(Decrease)/increase in secured pensioners' value due to scheme experience - (28)
Benefits paid (120) -
Defined benefit obligation at 31 March 983 969
No annual contribution to be paid by the employer is expected (2024: £nil).
Year ended 31 March 2025 2024 2,023 2,022 2,021
£000's £000's £000's £000's £000's
Fair value of plan assets 1,213 1,202 1,135 1,648 1,795
Present value of defined benefit obligation 983 969 954 1,569 1,799
(Deficit)/surplus in plan 230 233 181 79 (4)
Experience (losses)/gains on plan liabilities 77 40 17 (5) -
Plan assets 2025 2024
£000's £000's
Assets under management 341 345
Insured annuities 872 857
Total 1,213 1,202
Assets under management composition
2025 2024
Corporate bonds 43.6% 42.6%
Overseas equities 37.7% 37.1%
UK equities 10.4% 12.5%
Property 7.3% 7.0%
Cash 1.0% 0.8%
100.0% 100.0%
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
23. Pension and other post-retirement benefit commitments
(continued)
Defined benefit obligation - sensitivity analysis
The following amounts are the effect (on the defined benefit obligation) of
reasonably possible changes to the key actuarial assumptions, as required by
IAS 19.
Reasonably possible change (Decrease)/increase in defined benefit obligation
2025 20
24
Actuarial assumptions £000's £000's £000's £000's
Discount rate +/- 0.1% (55) 61 (56) 64
Members' life expectancy +/- 1 year (72) 72 (73) 73
The above sensitivity analyses are based on a change in an assumption while
holding all other assumptions constant. In practice, this is unlikely to
occur, and changes in some of the assumptions may be correlated. When
calculating the sensitivity of the defined benefit obligation to significant
actuarial assumptions the same method (present value of the defined benefit
obligation calculated with the projected unit credit method at the end of the
reporting period) has been applied as when calculating the defined benefit
liability recognised in the statement of financial position.
The methods and types of assumptions used in preparing the sensitivity
analysis did not change compared to the prior period.
The Company has given a floating charge dated 1 December 2006 over all of its
assets to the trustees of the pension fund to secure all present and future
obligations and liabilities to the pension fund.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
24. Share-based payments
The expense recognised for share-based payments made during the year is shown
in the following table:
Group Company
2025 2024 2025 2024
£000's £000's £000's £000's
Total expense arising from equity-settled share-based payments transactions 401 413 162 127
The share-based payment plans are described below:
Movements in issued share options during the year
The following table illustrates the number and weighted average exercise
prices (WAEP) of, and movements in, share options during the period:
Options Options
2025 2025 2024 2024
000's WAEP (£) 000's WAEP (£)
Outstanding at 1 April 3,560 2.18 2,777 2.84
Granted during the year - Employee scheme 128 0.12 485 0.95
Granted during the year - LTIPs 535 0.05 418 0.05
Granted during the year - Deferred bonus 143 0.05 45 0.05
Granted during the year - Restricted stock units 182 0.05 - -
Expired / cancelled during year (1,368) 3.54 (142) 4.47
Exercised during year (15) 0.05 (23) 0.05
Outstanding at 31 March 3,165 0.95 3,560 2.18
Granted < 3 years ago and not vested (2,530) (1,559)
Exercisable at 31 March 635 3.76 2,001 3.62
635,000 options were exercisable at 31 March 2025 (2024: 2,001,493). The WAEP
of exercisable options at 31 March 2025 was 376.0p (2024: 362.0p).
The average share price during the year was 89.1p (2024: 106.9p).
The maximum aggregate number of shares over which options may currently be
granted cannot exceed 10% of the nominal share capital of the Company on the
grant date. The options outstanding at 31 March 2025 had a weighted average
exercise price of £0.95 (2024: £2.18) and a weighted average remaining
contractual life of 7.6 years (2024: 5.4 years).
ECO Animal Health Group plc Executive Share Option Scheme
In accordance with the Executive Share Option Scheme, approved and unapproved
share options are granted to Directors and employees who devote at least 25
hours per week to the performance of duties or employment with the Group.
127,000 share options have been granted in the year under this scheme (2024:
484,900). In addition 535,260 options have been issued under the Group's Long
Term Incentive Plan (2024: 417,704), 182,225 options have been issued under
the Group's new Restricted Stock Units scheme (2024: nil) and 143,452 under
the Group's deferred bonus arrangements (2024: 44,562).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
24. Share-based payments (continued)
The exercise price of the options is equal to the market price of the shares
at the date of grant. The options vest three years from the date of grant and
if the option holder ceases to be a Director or employee of the Company due to
injury, disability, redundancy or retirement on reaching pensionable age or
any other age at which they are bound to retire at in accordance with the
terms of their contract of employment, the option may be exercised within a
period of six months after the option holders so ceasing, although the Board
may, at its discretion, extend this period by up to 36 months after the date
of cessation.
If the option holder ceases employment for any other reason, the option may
not be exercised unless the Board permits. The approved and unapproved options
will be forfeited where they remain unexercised at the end of their respective
contractual lives of ten and seven years respectively.
An analysis of the expiry dates of the outstanding options at 31 March 2025 is
given below:
Date of grant Unapproved Approved Exercise price Expiry date
26 August 2015 21,350 £ 2.650 26 August 2025
19 January 2016 10,200 £ 3.150 19 January 2026
17 February 2016 19,600 £ 3.125 17 February 2026
01 March 2016 9,600 £ 3.125 01 March 2026
12 September 2016 16,200 £ 4.325 12 September 2026
15 September 2016 2,000 £ 4.350 15 September 2026
21 September 2017 35,650 £ 6.200 21 September 2027
12 April 2018 3,900 £ 5.450 12 April 2028
23 October 2018 53,100 £ 3.800 23 October 2028
23 October 2018 205,900 £ 3.800 23 October 2025
19 December 2018 7,800 £ 3.800 19 December 2028
19 December 2018 2,200 £ 3.800 19 December 2025
28 April 2021 129,981 £ 3.495 28 April 2031
28 April 2021 117,519 £ 3.495 28 April 2028
12 December 2022 45,606 £ 0.050 12 December 2032
27 February 2023 550,953 £ 0.050 27 February 2033
25 April 2023 269,800 £ 1.011 24 April 2033
22 December 2023 44,562 £ 0.050 22 December 2033
22 March 2024 417,704 £ 0.050 22 March 2034
22 March 2024 213,600 £ 0.880 22 March 2034
28 August 2024 143,452 £ 0.050 28 August 2034
27 October 2024 535,260 £ 0.050 27 October 2034
27 October 2024 102,725 £ 0.050 27 October 2034
26 March 2025 79,500 £ 0.050 26 March 2035
26 March 2025 127,100 £ 0.585 26 March 2035
2,245,381 919,881
The market price of the shares at 31 March 2025 was 53.5p (2024: 85.5p) with a
range in the year of 58.0p to 131.5p (2024: 84.0p to 122.5p).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
24. Share-based payments (continued)
The Company uses a Black-Scholes model to value share-based payments for
options with service conditions and/or non-market performance conditions and
the following table lists the inputs to this model for the last five years.
2025 2024 2023 2022 2021
Vesting period (years) 3 - 4 3 - 4 3 - 4 3 - 4 n/a
Option expiry (years) 10 10 10 7 - 10
Dividends expected on the shares 0.00% 0.00% 0.00% 1.00%
Risk free rate (average) 4.00% - 4.13% 3.74% - 4.13% 3.20% - 3.75% 0.18%
Volatility of share price 40% 40% 40% 40%
Weighted average fair value (pence) 21.5 -103.3 47.0 -106.2 84.0 -108.0 101.0 - 316.0
The risk-free rate has been based on the yield from UK Government Treasury
coupons. The volatility of the share price was estimated based on standard
deviation calculations on the historic share price.
Long Term Incentive Plan
Under this plan share options may be granted to certain Executive Directors
and members of the Company's Executive Leadership Team. The share options
awarded under the LTIP are subject to an exercise price of £0.05 per share
and performance conditions being achieved that have been set by the
Remuneration Committee and relate to total shareholder return (TSR) and
research and development targets.
Subject to the performance conditions being met, the share options will vest
after the end of a three-year vesting period. The proportion of share options
relating to each performance condition is: (i) 75% in relation to the TSR
conditions; and (ii) 25% in relation to the R&D targets.
The TSR conditions mean that the share options subject to these conditions
will vest subject to the following: (i) 25% of the share options will vest if
the annual compound TSR over the performance period equals 7.5%; (ii) 50% of
the share options will vest if the annual compound TSR over the performance
period equals 10%; and (iii) 100% of the share options will vest if the annual
compound TSR over the performance period equals 20%.
The R&D targets mean that the share options subject to these targets will
vest subject to the following: (i) 25% of the shares options will vest if
specified R&D targets agreed between Executive management and the
Remuneration Committee during the performance period are achieved; and (ii)
100% of the shares options will vest if specified R&D targets agreed
between Executive management and the Remuneration Committee during the
performance period are achieved. The R&D targets comprise a range of
identifiable and quantifiable criteria relating to the introduction of new
R&D projects, the progress of existing R&D projects to later stages of
the development cycle, the submission of projects for approval to relevant
regulators and for the approval of projects by the relevant regulators.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
25. Share capital
2025 2024
£000's £000's
Authorised
68,100,000 ordinary shares of 5p each 3,405 3,405
10,790 deferred ordinary shares of 10p each 1 1
32,334 convertible preference shares of £1 each 32 32
3,438 3,438
Allotted, called up and fully paid
67,759,671 (2024: 67,744,889) ordinary shares of 5p each 3,388 3,387
During the year 14,782 shares were issued (2024: 22,973 shares were issued).
The options were issued following the exercise of share options. The
exercise price was 5 pence per option and consideration of £1,000 was
received.
All share issued are non-redeemable and rank equally in terms of voting rights
(one vote per share); rights to participate in all approved dividend
distribution for that class of shares; and right to participate in any capital
distribution on winding up.
The shares in the original or any increased capital of the Company may be
issued with such preferred, deferred or other special rights or restrictions,
whether in regard to dividend, voting, return of capital as the Company may
from time to time determine.
26. Non-controlling (minority) interests
2025 2024
£000's £000's
Balance as at 1 April 9,690 12,281
Share of subsidiary's profit/(loss) for the year 948 960
Share of foreign exchange gain/(loss) on net investment (307) (738)
641 222
Share of dividend paid by subsidiary (1,065) (2,813)
Balance as at 31 March 9,266 9,690
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
27. Other reserves
The Group held a revaluation reserve of £271,000 as at 31 March 2025 (2024:
£271,000) relating to the acquisition of ECO Animal Health Japan Inc in 2009
and corresponding to the carrying value of its assets.
The Group and Company held a capital redemption reserve of £106,000 as at
31 March 2025 (2024: £106,000).
The Group held a Treasury Shares reserve of £(204,000) as at 31 March 2025
(2024: £nil).
During the year the Group established an Employee Share Ownership Trust (the
'ESOT'). The assets, liabilities and returns of the ESOT are consolidated
within the results of the ESOT's sponsoring company, Eco Animal Health Group
plc.
During the year the ESOT acquired shares in Eco Animal Health Group plc. The
shares held by the ESOT are treated as treasury shares in the accounts of Eco
Animal Health Group plc, with a debit to the Treasury Shares reserve (see note
15).
Included in the Group's foreign exchange reserve are the following exchange
movements on consolidation of the subsidiaries and joint operations listed
below:
At 31 March 2024 Movement in the year At 31 March 2025
£000's £000's £000's
In respect of:
Zhejiang ECO Biok Animal Health Products Limited 331 (320) 11
Zhejiang ECO Animal Health Limited 115 (136) (21)
ECO Animal Health do Brasil Comercio de Produtos Veterinarios Ltda 215 468 683
ECO Animal Health Japan Inc. (184) (5) (189)
ECO Animal Health USA Corp. (15) (33) (48)
ECO Animal Health de Mexico, S. de R. L. de C. V. 370 (15) 355
ECO South Africa (49) - (49)
Pharmgate LLC 5 - 5
Foreign exchange reserve movements charged to consolidated statement of 788 (41) 747
comprehensive income
28. Directors' emoluments
2025 2024
£000's £000's
Emoluments for qualifying services 986 1,211
Company pension contributions to money purchase schemes 31 25
Share-based payments 108 108
Benefits in kind 22 13
1,147 1,357
During the year no Directors exercised share options (2024: none) realising a
gain of £10,000 (2024: £nil).
The highest paid Director received £498,000 (2024: £619,000) including
£33,000 (2024: £33,000) of share-based payments and £nil (2024: £nil) of
pension contributions.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
29. Employees
Number of employees
The average number of employees (including Directors) during the year was:
2025 2024
Number Number
Directors 5 5
Production and development 89 91
Administration 43 48
Sales 87 83
224 227
Employment costs (including amounts capitalised)
2025 2024
£000's £000's
Wages and salaries 12,354 14,393
Share-based payments 401 413
Social security costs 1,997 1,558
Other pension costs 302 431
15,054 16,795
30. Related party transactions
Dividends paid to related parties
During the year Mr P Lawrence (a significant shareholder) and his family
received no dividends (2024: £nil).
The other Directors and their families received dividends to the value of
£nil (2024: £nil).
Interest and management charges from parent to the other Group companies
During the year the Company made management charges on an arm's length basis
to ECO Animal Health Limited amounting to £1,230,000 (2024: £603,786) and
charged interest of £1,100,000 (2024: £1,707,579) to the subsidiary company.
Both of these transactions were made through the inter-company account and
were eliminated on consolidation.
During the year Zhejiang ECO Animal Health Ltd paid dividends to ECO Animal
Health Ltd of £1,860,759 (RMB 17,118,983).
During the year Zhejiang ECO Biok Animal Health Products Limited paid
dividends of £85,217 (RMB 784,000) to ECO Animal Health Group plc (2024:
£255,029) and £1,023,478 (RMB 9,416,000) to ECO Animal Health Limited (2024:
£2,702,641).
During the year ECO Animal Health do Brasil Comercio de Produtos Veterinarios
Ltda paid dividends to ECO Animal Health Ltd of £Nil (2024: £1,398,471).
Key management compensation
The Group regards the Board of Directors as its key management.
2025 2024
£000's £000's
Salaries and short-term benefits 1,008 1,224
Retirement benefits 31 25
Share-based payments 108 108
1,147 1,357
The number of Directors for which retirement benefits were accruing was 1
(2024: 1).
The highest paid Director received £464,000 (2024: £619,000) including
£33,000 (2024: £33,000) of share-based payments and £nil (2024: £nil) of
pension contributions.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
31. Financial instruments
The Group uses financial instruments comprising borrowings, cash and cash
equivalents and various items, such as trade receivables, trade payables etc.
that arise directly from its operations. The main purpose of these financial
instruments is to raise finance for the Group's operations. The Directors are
responsible for the overall risk management.
The main risks arising from the Group's use of financial instruments are
capital and liquidity risk, credit risk and foreign currency risk and they are
summarised below. The policies have remained unchanged throughout the year.
Capital and liquidity risk
The Group manages its capital to ensure continuity as a going concern whilst
maximising returns through the optimisation of debt and equity. As part of
this, the Board considers the cost and risk associated with each class of
capital. The capital structure of the Group consists of cash and cash
equivalents in note 19, borrowings in note 21 and equity attributable to
equity holders of the parent comprising issued capital, reserves and retained
earnings as disclosed in the Group's statement of changes in equity.
Liquidity risk is managed by maintaining adequate reserves and banking
facilities with continuous monitoring of the latest developments by
management.
The Group's objectives when maintaining capital are:
- to safeguard the entity's ability to continue as a going
concern, so that it can continue to provide returns for shareholders and
benefits for other stakeholders; and
- to provide an adequate return to shareholders by pricing
products and services commensurately with the level of risk.
The Group sets the amount of capital it requires in proportion to risk. The
Group manages its capital structure and makes adjustments to it in the light
of changes in economic conditions and the risk characteristics of the
underlying assets. In order to maintain or adjust the capital structure, the
Group may adjust the amount of dividends paid to shareholders, return capital
to shareholders, issue new shares, or sell assets to reduce debt.
As an AIM quoted company, our governance framework is underpinned by the AIM
Rules and the Quoted Companies Alliance (QCA) Corporate Governance Code 2023
(the 'QCA Code'). In addition to the QCA Code, we monitor developments and
guidance in the UK Corporate Governance Code, applicable to main market listed
companies, to keep abreast of matters which we feel could also be embedded as
best practice as part of a progressive approach. We also review the Investment
Association guidelines and seek to comply with these where applicable.
At 31 March 2025, the Group was contractually obliged to make repayments as
detailed below:
2025 2024
Within one year or on demand £000's £000's
Trade payables 9,794 10,119
Other payables 1,030 1,205
Accruals 3,541 6,026
14,365 17,350
Credit risk
Credit risk is that of financial loss as a result of default by a counterparty
on its contractual obligations. The Group's exposure to credit risk arises
principally in relation to trade receivables from customers and on short-term
bank deposits. Customers' creditworthiness is wherever possible checked
against independent rating databases and filing authorities, or otherwise
assessed on the basis of trade knowledge and experience. Exposure and customer
credit limits are continually monitored both on specific debts and overall.
The credit risk in relation to short-term bank deposits is limited because the
counterparties are banks with good credit ratings.
The Group operates in certain geographical areas which are from time to time
subject to restrictions in the free movement of funds. The Board seeks to
minimise the Group's exposure to these markets but the nature of our business
makes it impossible to eliminate this exposure completely.
None of those receivables has been subject to a significant increase in credit
risk since initial recognition and, consequently, 12-month expected credit
losses have been recognised, and there are no non-current receivable balances
lifetime expected credit losses.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
31. Financial instruments (continued)
Foreign currency risk
The Group operates in overseas markets particularly through its subsidiaries
in China, Brazil, Mexico, the USA and Japan as well as its joint operation in
Canada and is therefore subject to currency exposure on transactions
undertaken during the year. The Group does some simple economic hedging of
receivables when the Board feels it is appropriate to do so and foreign
exchange differences on retranslation of foreign monetary items are recorded
in administrative expenses in the income statement.
The table below shows the extent to which the Group companies have monetary
assets and liabilities in currencies other than in Sterling.
US Dollar Euros Chinese RMB Japanese Yen Brazilian Real Canadian Dollar Mexican Peso Other
2025 £000's £000's £000's £000's £000's £000's £000's £000's
Trade and other receivables 50,589 3,660 6,626 542 669 699 2,374 55
Trade and other payables (36,335) (2,775) (7,187) (151) (976) (511) (3,000) (108)
Cash and cash equivalents 6,008 369 15,702 511 988 223 110 40
Total 20,262 1,254 15,141 902 681 411 (516) (13)
US Dollar Euros Chinese RMB Japanese Yen Brazilian Real Canadian Dollar Mexican Peso Other
2024 £000's £000's £000's £000's £000's £000's £000's £000's
Trade and other receivables 30,924 2,961 6,753 134 677 759 2,699 125
Trade and other payables (13,115) (681) (7,312) (1,074) (656) (494) (3,387) (80)
Cash and cash equivalents 4,638 439 14,356 618 878 321 378 64
Total 22,447 2,719 13,797 (322) 899 586 (310) 109
At 31 March 2025 the Group was mainly exposed to the US Dollar, Euro, Chinese
RMB, Japanese Yen, Brazilian Real, Canadian Dollar and Mexican Peso. The
following table details the effect of a 10% movement in the exchange rate of
these currencies against Sterling when applied to outstanding monetary items
denominated in foreign currency as at 31 March 2025.
2025 2024
£000's £000's
U S Dollar 2,251 2,278
Euro 139 265
Chinese RMB 1,682 1,450
Japanese Yen 100 (39)
Brazilian Real 76 100
Canadian Dollar 46 65
Mexican Peso (57) (41)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2025
31. Financial instruments (continued)
Analysis of financial instruments by category
Group Financial assets Financial liabilities Total
2025 £000's £000's £000's
Trade and other receivables(1) 28,516 - 28,516
Cash and cash equivalents 25,006 - 25,006
Trade and other payables(2) - (14,365) (14,365)
Amounts due under leases - (3,784) (3,784)
Borrowings - - -
(1.) This includes prepayments and accrued income £864,000.
(2.) This excludes contract liabilities but includes accruals and deferred
income (£3,541,000).
2024 £000's £000's £000's
Trade and other receivables(1) 32,175 - 32,175
Cash and cash equivalents 22,374 - 22,374
Trade and other payables(2) - (17,350) (17,350)
Amounts due under leases - (4,025) (4,025)
Borrowings - - -
(1.) This includes prepayments and accrued income £524,000.
(2.) This excludes contract liabilities but includes accruals and deferred
income (£6,026,000).
Company Financial assets Financial liabilities Total
2025 £000's £000's £000's
Trade and other receivables(1) 1,664 - 1,664
Cash and cash equivalents 1,515 - 1,515
Trade and other payables(2) - (673) (673)
Amounts due under leases - (17) (17)
Borrowings - - -
Amounts due from group undertakings 48,937 - 48,937
(1.) This includes prepayments and accrued income £271,000.
(2.) This excludes contract liabilities but includes accruals and deferred
income (£383,000).
2024 £000's £000's £000's
Trade and other receivables(1) 1,698 - 1,698
Cash and cash equivalents 363 - 363
Trade and other payables(2) - (804) (804)
Amounts due under leases - (62) (62)
Borrowings - - -
Amounts due from group undertakings 51,078 - 51,078
(1.) This includes prepayments and accrued income £254,000.
(2.) This excludes contract liabilities but includes accruals and deferred
income (£562,000).
All financial assets and liabilities in the Group's and Company's statements
of financial position are classified as held at amortised cost for both the
current and previous year.
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