£134m European acquisition boosts Animalcare revenues
Biotech business Animalcare, which completed a multi-million pound reverse takeover of a European health company last year, is expecting to report a 9.5% increase in revenues for 2017 to £91.9m.
The York-based group, which completed the acquisition of Belgium-based Ecuphar last summer, trebling the size of the business, said the revenue increase was slightly ahead of management expectations while earnings for the year to the end of December will be “broadly in line” with forecasts.
Meanwhile, updating the markets on its expectations for 2018, the group said sales growth is will be stronger across the group during the current financial year as the integration of the businesses continues to progress.
“The company is expected to deliver further incremental growth in underlying EBITDA, underlying net earnings and EPS against 2017 results, maintaining at least double digit growth at these levels. However due to the impact on gross margins of a changing sales mix and competitive pressures, these levels of earnings, whilst still significantly ahead of the prior year, will be below market expectations for 2018.”
It added that further cross-selling opportunities will start to take effect during 2018 as integration progresses, but will deliver a “more meaningful impact” on profit margins during 2019.
Chris Cardon, CEO of Animalcare Group, said: “As a board we are focussed on building long term shareholder value through continued strong cash generation, which enables us to invest in further growth via new product development, as well as maintaining our current dividend policy.
“We remain confident of the strategic rationale of a leading pan-European animal-health business and the long-term share value that will come with it.”
The deal with Ecuphar was agreed by shareholders in July with the enlarged group admitted to AIM.
York-based Animalcare raised £30m for the acquisition, which increased its workforce from 65 to around 200 staff.
