Animal specialist sees top line growth

VETERINARY medicines group Animalcare has achieved “top line growth” with revenues on the up, despite its microchipping division taking a hit as competition ramps up.

Group revenues increased 2.7% to £7.11m for the six months to 31 December 2015.

The AIM-listed company has said that it was focusing on investment, and for the period, it has increased investment in their product development pipeline by 300%.

Consequently Animalcare expects to be spending £200,000 more in overheads than the first six months of the previous year.

The business also said that the companion animal microchipping market has become “significantly more competitive” as compulsory microchipping in England, Wales and Scotland in April 2016.

Sales in that division declined by 5.2% to £1.20m.

In a statement the business said: “The rate of progress of our product development pipeline is expected to continue; the estimated rate of expenditure is expected to be between £1.0m and £1.5m for the current financial year and beyond, leaving Animalcare well positioned to drive growth from 2017 onwards.

“Whilst the uptake of microchips for dogs in England, Scotland and Wales remains modest there has been increased competition between suppliers to the market.

“Animalcare has plans in place to respond to this and to maximise the value from this segment beyond the current financial year.”