Pet meds firm Dechra hails ‘strong’ half year

PET pharmaceuticals firm Dechra has reported steady progress in the six months to December 31.

The Cheshire and Staffordshire-based group reported underlying operating profit growth of 14.1%.
 
Dechra said half year profitability improved as a result of a strong gross margin, prudent cost management and the on-going delivery of synergies from the Eurovet acquisition.
 
Group revenue declined by 0.7% due to under-performance in the Netherlands, phasing of export orders and continuing supply issues in the US. Adjusting for these items, revenue growth was 3.4%.
 
During the period Dechra completed three in-licensed product deals, one for the US and two for the EU.
 
The firm said that following the £38m divestment of its services segment last August, it has refined its strategy and now has a clear focus as a purely veterinary pharmaceutical and related products business.
 
Its net debt position has improved considerably. After the services sale Dechra repaid all of its fixed term loan and part of a revolving credit facility in September 2013, reducing net debt from £80.8m at 30 June 2013 to £10.5m at 31 December 2013.
 
Ian Page, chief executive officer, said: “We continue to make progress in all aspects of our strategy and we believe we are well positioned to continue to strengthen our position within the global animal health markets and to deliver future growth.”

The Northwich-headquartered group said it is looking for acquisitions and to expand into new fast-growth markets.

The company announced a 9.4% hike in its interim dividend to 4.75p per share.