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