Business
Trading Update and Notice of Results
Trading Update and Notice of Results.
About this update from Animalcare Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 8176T\n Animalcare Group PLC\n 23 July 2020\n \n \n \n \n ANIMALCARE GROUP PLC\n \n \n (the \"Company\" or the \"Group\")\n \n \n Trading update and Notice of Results\n \n \n \n \n \n \n \n \n \n 23 July 2020. Animalcare Group plc (AIM: ANCR), the international animal health business, provides the following unaudited trading update for the six months ended 30 June 2020 ahead of publishing its interim results on 29 September 2020.\n \n Trading overview\n The Group is pleased to report a resilient first half performance despite the disruption due to COVID-19. While trading for the first half was down on the prior year, our overall performance was at the higher end of the Company's range of scenario modelling, helping maintain our strong financial position and focus on our growth strategy.\n \n Revenue for the period declined by 4.4% to £34.5 million (4.8% at constant exchange rates) reflecting the disruption to veterinary activity across Europe caused by the pandemic. This effect was largely observed within our Companion Animal portfolio during Q2 due to public health measures restricting veterinary activity, offset in part by strong growth in Production Animals. Evidence of a return to more normal customer activity in some markets was visible towards the end of the first half and has continued to develop post period-end. However, uncertainty about the shape and extent of a recovery in demand prevails.\n \n Underlying EBITDA margin is expected to be in line with the first half of 2019 as the Company benefits from the impact of cost efficiencies generated during 2019 together with decisive action to realign SG&A spend during the pandemic. This has not prevented the Company from investing in drivers of future growth including new product launches, pipeline projects and business development opportunities.\n \n As part of our growth strategy, we are committed to strengthening our balance sheet and improving our cash generation to create capacity to invest in future growth. This goal continues to guide us over the long term. As at 30 June 2020 our net debt stood at £18.1 million, broadly in line with the year ended 31 December 2019. As anticipated, cash conversion in the first half was lower than the prior period, largely due to an increase in working capital, in parti...