Export success is a shot in the arm for pet medicine group
ANIMALCARE, the York-based manufacturer of pet medicine, is in the midst of “exciting times” as it continues to grow its revenues strongly on the back of investment in new products and markets.
The AIM-listed business saw its pre-tax profits edge up to £3.1m after doubling the investment in its product development pipeline to £1.6m.
It said it has “strong momentum” as it looks to build value from its new products and it is continuing to seek “novel” products to take to market.
“There are some great opportunities out there,” said Animalcare’s chief executive Iain Menneer. “These are exciting times for us.”
Animalcare had £7.1m cash in the bank at the year end which will enable it to continue to strengthen its growing areas.
He added: “The group is currently in a strong position and generating significant cash flows. We will use this to invest in the business and are now in a good position to step up our investment in products and wider opportunities to provide the long-term success of the business.”
Animalcare’s sales grew 8.6% in the year to June, to £14.7m. This included a 26% increase in overseas sales – and although the weak pound is costing the business in the short-term, it expects its rising exports to create a natural hedge in the future.
Although the impact of Brexit is uncertain, Animalcare is looking beyond Europe and expects sales to start coming through from new markets in the next 1-2 years.
Mr Menneer added: “The pet medicines market is running at an increase of about 1%. Our sales growth is a success, the pipeline is a success.”
Animalcare’s share price is up 44% since March, and went above 300p for the first time earlier this month. The company, which employs 63 people, currently has a market value just above £60m.
