Business
Trading update & notice of results
Trading update & notice of results.
About this update from Animalcare Group Plc
[{"type":"text","content":"\n \nRNS Number : 0385M Animalcare Group PLC 11 July 2014 \n \n\n \n \nAnimalcare Group plc\n(\"Animalcare\" or the \"Group\")\n \nTrading Update & Notice of Results\n \nAnimalcare, a leading supplier of veterinary medicines, provides the following trading update for the year ended 30th June 2014, in advance of releasing its results on Wednesday 15th October 2014. \n \nTrading Update\n \nThe Board is very pleased with trading in the year. Revenues across the Group are up by 6.3% to approximately £12.9m (2013: £12.1m), ahead of market expectations. \n \nSales of the Licensed Veterinary Medicines product group were up by 10% versus the prior period and broadly in line with the growth seen in the wider UK licensed veterinary companion animal medicines market. The Companion Animal Identification product group has made further progress following positive results at the half-year with sales up over 8% on last year due to strong contributions from both microchip sales and database services.\n \nThe planned rationalisation of older, lower margin Animal Welfare products has focused the range, with revenues reducing by 4% but with gross profit growing by 8%.\n \nOverall underlying operating profit is in line with market expectations and at least £2.6m for the full year. Operating cash flows reflect the planned higher inventory levels of certain commercially important products. The year end cash position remains robust at £3.8m (31st December 2013: £3.6m; 30th June 2013: £3.7m) and, alongside positive trading, gives the Board the confidence to maintain the dividend flow during the current investment cycle.\n \nSummary and Outlook\n \nThe Board is very pleased to report the strong progress of the business versus the prior period. Revenues from key product groups, Licensed Veterinary Medicines and Companion Animal Identification, have grown well. \n \nThe engagement of veterinary practices and the dog-owning public in compulsory microchipping has been more measured than expected by the wider industry. However, a promotion through the calendar year to celebrate the 25th anniversary of the introduction of Animalcare's Identichip, the first microchip in the UK, has been very successful so far.\n \nEmphasis on the structure and development of the sales function will furth...