Animalcare reports healthy profits
MASHAM-based Animalcare has seen its profits increase and anticipates further growth on the back of new product launches.
The North Yorkshire firm, which specialises in the supply of veterinary medicines and animal identification products, said today that results for the six months to the end of December 2009 had witnessed revenue growth across all three of its key product ranges.
The company saw an increase in revenue to £8.93m from £7.76m last time while its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose to £1.21m from £0.82m the previous year.
While Animalcare’s animal welfare product range delivered ‘modest’ revenue growth, it suffered a loss due to one off costs and pressure on profit margins.
The company’s unaudited interim results makes it clear that the bulk of the loss related to the withdrawal from low margin activities, the sharp fall in the value of the New Zealand dollar and a decline in sheep identification volumes ahead of the implementation of new rules.
Animalcare has said that it does not intend to declare an interim dividend in line with previous years.
James Lambert, chairman of Animalcare said “I am pleased to report strong growth in revenue and EBITDA, especially in our companion animal business.
“Although the market for our key livestock products is challenging we anticipate trading to improve in the second half of the year and are confident that our licensed veterinary medicines will continue to deliver revenue and profit growth in line with expectations.
“The companion animal market remains strong and we are confident that our licensed veterinary medicines will continue to deliver revenue and profit growth in line with market expectations.
“I am pleased to report that we have been granted a marketing authorisation in the United Kingdom and certain other EU markets for a further licensed veterinary medicine which will be launched in the next few months.
“The market for our key livestock products is challenging due to the implementation of the new regulations for the electronic identification of sheep and downward pressure on identification tag pricing.
“We are confident that our livestock business is well placed to deliver an improved performance in the traditionally stronger second half of our financial year.”
Last March, the group – which changed its name from Ritchey to Animalcare after the reverse takeover of the former Genus subsidiary – reported a move into profit for the previous financial year after restructuring the business.
Animalcare has also announced that its group finance director and company director John Tobin is leaving the company to pursue an independent business career.
He is expected to leave around May or June and the company is now actively looking for his replacement.
