Double whammy for Dechra as debts shrink while business grows

ANIMAL pharmaceuticals firm Dechra has shaved £75m off its debts while increasing both its revenue and profit.

The firm, which has a veterinary products arm in Shrewsbury, saw its debts reduce from £80.8m to £5m, largely as a result of the divestment of its services segment.

Announcing its preliminary results for the year ended June 30, the firm reported revenue of £193.6m compared to £189.2m in 2013, while underlying profit before tax was £39.9m (2013: £33.5m).

Chief executive office Ian Page said: “As a pure veterinary pharmaceuticals and related products business, we have focused on our four strategic growth drivers, namely pipeline delivery, portfolio focus, geographical expansion and acquisition.

“We are pleased to report that the group has delivered a solid performance with revenue and operating margins increasing in the majority of countries in which we trade.”

All EU markets are showing growth, with the exception of the Netherlands, while strong performance in the US was driven by o key products growing well and the ophthalmic range re-launch.

A new Italian subsidiary opened in March.

Approval has been received for a new equine product, Osphos, with launch targeted for quarter one of 2015 financial year in the US and UK.

And a dossier has been submitted for approval for a canine endocrine product in the US and EU.