New CEO at Animalcare looking to lead firm’s ‘sustainable and profitable’ growth
Biotech business Animalcare has dropped into pre-tax losses in the year it sold its wholesale division to concentrate on higher margin veterinary pharmaceuticals; as the new CEO looks forward to achieving “sustainable and profitable” growth.
Announcing its full year results for the year ended 31 December 2018, the York-based listed firm said it saw revenues rise 16.3% from £62.3m in 2017 (re-stated from the £83m total revenue announced at its annual results last year) to £72.5m in 2018.
The business, which develops and sells of veterinary products in the companion animal, production animal and equine markets, said its total pre-tax losses stood at £357,000 – a drop from last year’s pre-tax profits of £377,000. On an underlying basis, pre-tax profits stood at £9m; up from £6.9m in the previous year. Underlying EBITDA increased by 21.7% to £11.8m (2017: £9.7m).
Animalcare sold its wholesale division in September 2018 for £2.4m and is expecting a further two payments of £362,000 and £214,000 relating to the sale but these are dependent on the division’s performance. The firm said the sale was conducted to enable it to focus on the higher-margin veterinary pharmaceuticals business.
In 2017, Animalcare completed the reverse acquisition of Ecuphar NV for £134m.
Jenny Winter, formerly of AstraZeneca, was appointed Chief Executive in October 2018. The firm’s former CEO, Chris Cardon, stepped down to chief strategy officer from October 1.
Winter said: “Since joining Animalcare in October last year, I have been impressed by the competitive strengths of the business and the size of the growth opportunity. I have conducted a detailed review of all areas of the business and set out a strategy to enable us to build upon our capabilities.
“Our goal is to deliver sustainable and profitable growth and to achieve this, we will focus on meeting the needs of vets in therapeutic areas where we have existing strengths and can further add value. Improving cash generation is a key focus for the business and we will continue to drive improvements in supply chain efficiency and closely monitor our cost base, whilst selectively investing in future innovation. Achieving this will build an effective and focused organisation that is fit for the future and deliver growth over the next three to five years. “
The firm said it had launched ten new products in 2018 with an additional six submissions made for products that are scheduled for launch in 2019 or early 2020. Post period, Animalcare’s new strategy which focuses on the new combined group, was approved by the Board. Animalcare added: ” It builds on the experience and success of the legacy companies and reflects the rapidly growing and changing marketplace.”
Jan Boone, Chairman of Animalcare, said: “Animalcare made good progress in 2018 as we focus on creating a competitive platform for future growth in the global animal health sector.
“We continue to improve the underlying profitability of the Group, and the disposal of our Wholesale Division was in line with our strategy to focus on the higher-margin veterinary pharmaceuticals business, a key growth driver.”
