Resilient results at animal health company despite markets disruption
Listed animal health business, Animalcare Group, has today reported revenues of £70.5m, a 0.9% decline on the previous year’s figure (2019: £71.1m).
The York-based company, which has issued its full year results for the 12 months ended 31 December 2020, says its revenues demonstrate the firm’s resilience in the face of COVID-19 disruption to key markets.
Over the same period the company’s statutory pre-tax profits – incorporating non-underlying items – increased to £0.2m (2019: £1.6m loss), with a reported basic profit per share at 0.4 pence (2019: 2.2 pence loss per share).
Underlying EBITDA declined by 8% to £12.1m (2019: £13.1m).
Animalcare says it has made significant progress in rebalancing, refocusing and defragmenting its product portfolio.
In September last year the business finalised a deal with Canada-based Kane Biotech to create STEM Animal Health Inc, a joint venture to exploit the potential of biofilm-targeting anti-infective technology.
Animalcare will commercialise existing STEM products in markets outside the Americas while working together to develop new treatments.
And the company says there has also been important progress within its own pipeline, highlighting its E-6087 product, known as Daxocox, which is a novel and differentiated COX-2 inhibitor for treatment of chronic pain in dogs.
The business’s report states: “We are confident Daxocox will be a significant new treatment option for vets. It also has the potential to lift the Group into a high-value and fast-growing segment of the animal health market.”
Chief executive officer, Jenny Winter said: “It’s testament to Animalcare’s resilience, agility and focus that we were able to further strengthen our financial position and make significant strategic progress during an extraordinarily challenging year.
“The impact of COVID-19 was felt across all our markets in 2020, especially in the second quarter and most acutely in the Companion Animals sector.
“But despite widespread disruption to the operation of veterinary practices, we returned revenues ahead of market expectations, delivered continuing strong cash conversion and further reduced our net debt while investing in drivers of future growth.
“The encouraging trading levels over the early months of 2021, combined with the evident benefits of the mass vaccination programmes and the adaptations made by the Group, makes us confident we will return to normal business conditions and growth this year.
“Thanks to the skills and commitment of our people across all our markets, Animalcare has entered 2021 in a strong position and we continue to execute our long-term growth strategy.”
