No explanation for sudden jump in Animalcare shares
DIRECTORS at Masham-based Animalcare have said they are not aware of any reason for a sudden jump in the company’s shares.
The AIM quoted veterinary medicines and animal identification supplier saw its shares leap an impressive 39.8% yesterday.
A statement was released by the firm saying that it had “noted the recent movement in the company’s share price” but that they knew of no reason for the positive rush.
Animalcare, which was formerly known as Ritchey, moved from the junior PLUS Markets stock exchange to AIM in January following the reverse takeover of the former Genus subsidiary in a £14m deal that trebled the company’s size.
At the time the firm, which is perhaps best known for supplying animal tags, said that the acquisition of Animalcare would help it focus on the relatively stable and growing animal care maket, broaden its portfolio for a wider range of animals and help balance the business against seasonal fluctuations.
Despite repeated crises in the farming sector the company reported in September that the outlook was favourable and in line with market expectations.
Pre-tax profits for the year ended June 30 rose 99% from £610,000 in 2007 to £1.21m. Group revenue rose 42% from £8.3m to £11.76m for the same period.
James Lambert, chairman of Animalcare, said that the group had performed strongly and that sales and profits were in line with targets.
“We received marketing authorisations in key EU markets for Benazecare, a generic version of the canine heart failure treatment based on benazepril, and first orders to key European markets were fulfilled towards the end of the period,” he said.
“The Ritchey livestock business experienced lower sales due to the outbreaks of Foot and Mouth and Bluetongue but this was mitigated by higher selling prices and robust cost control.”
He added: “The companion animal market continues to grow and our veterinary medicine development programme continues to deliver encouraging results.
“The agricultural market has improved considerably behind higher selling prices for both dairy products and livestock. We therefore remain confident about future prospects.”
