Growth in revenue from sales of licensed veterinary products helped Animalcare Group plc achieve an increase in profits for the year ended June 30.
Animalcare chief executive Iain Menneer said the results showed good overall growth.
“It is pleasing that with our strong cash position we will be able to fund our investment programme while maintaining the dividend policy,” he said.
“Our investment in infrastructure and people, as well as our pipeline of enhanced generic products, provides a strong platform for a business that is already debt free and cash generative, and hence is well positioned for future growth.”
Financial highlights of the annual report, issued today (October 15), included:
- Revenues increased 6.3% to £12.9m (2013: £12.1m)
- Underlying* EBITDA up 8.4% to £3.2m (2013: £2.9m)
- Underlying* operating profit up 4.4% to £2.8m (2013: £2.7m), reflecting investments in infrastructure and people
- Underlying* basic earnings per share increased by 2.9% to 10.8p (2013: 10.5p)
- Reported pre tax profits up 14.7% to £2.7m (2013: £2.3m)
- Reported basic earnings per share up 13.2% to 10.3p (2013: 9.1p)
- Strong, debt free balance sheet with net cash of £3.8m (2013: £3.7m)
- Total recommended dividend increased in line with earnings to 5.5p (2013: 5.3p). Board intention to maintain this policy during investment phase.
*underlying measures are before the effect of exceptional costs and other items
Operational highlights included:
- Strong revenue growth from its licensed veterinary medicines group, up 9.5% to £7.9m (2013: £7.2m)
- Companion animal identification group sales and marketing strategy started to deliver with revenue growth of 7.8% to £2.4m (2013: £2.2m)
- Animal welfare products has seen top line decline, with margin improvement in line with management intention to streamline lower value products
- Three new products launched this year
- Investment in infrastructure and senior management team to drive future growth
- IT investment creating a more robust infrastructure to business and Identichip database.