Dechra’s full year results benefit from strong showing by Eurovet

PHARMACEUTICALS group Dechra has seen a steep rise in full year pre-tax profits boosted by a strong performance from its Eurovet business.

The Staffordshire-based group’s European Pharmaceuticals segment achieved sales of £168.7m, an increase of 66.3% at constant exchange rates over the previous year. On a like-for-like basis, adjusting 2012 to include a full year of Eurovet ownership, growth is 5%, despite having been affected by slow trading in the third quarter due to bad weather.

Full year group revenue rose to £522.4m (2012: £440m), while pre-tax profits for the year to June 30, 2013 were £44.6m (2012: £32.9m). Earnings per share for continuing operations stands at 29.07p, a rise of 42% on last year. Dividend per share rose 14.1% to 14p.

The group is in the process of a major restructure following its decision last month to dispose of its Services arm in a deal worth almost £88m.

It said it was optimistic for the current year which had got off to a strong start with trading ahead of the same period last year and in line with management’s expectations.

The board said it was confident that the group would continue to perform well despite a challenging environment and that its strategy would deliver enhanced shareholder value.

Ian Page, Dechra CEO, said: “Strategically it has been a momentous year with the successful integration of Eurovet, acquired in May 2012, and with the transformational effect of the £87.5m divestment of the Services businesses.  Dechra is now entirely focused on developing, manufacturing and marketing high margin, cash generative specialist veterinary pharmaceuticals and related products for global markets.”

Mike Redmond, non-executive chairman, added: “This has been a transformational year for Dechra. The disposal of the Services segment represents a major step forward in the board’s strategy to create a specialist veterinary pharmaceuticals business. We expect the quality of the group’s business and its prospects to be enhanced as a result of the disposal.”