Animalcare Group LON:ANCR the AIM-listed, York-based international veterinary pharmaceutical and services business, published its results today (24th September).
For six months ended 30th June, Animalcare reported a positive first half performance following strong revenue growth in operations and improved levels of cash conversion.
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Animalcare is an international veterinary pharmaceutical and services business with operations in seven European states and export partnerships in 40 countries globally. The company develops animal health care products through its own development pipeline as well as seeking strategic acquisitions.
Profitable and growing market
The pharma company is operating in a profitable and growing market, with 46% of European households owning one pet, with the global market growing about 5% in 2023. In many ways spending on companion animal wellbeing, per head, is more or less equal to that of humans and as all pet owners know, there isn’t an NHS for pets and vet’s bills are expensive..
Animalcare segments its business between companion animals (cats, dogs, gerbils etc.), production animals (cows, pigs, sheep) and the equine market. The company sees growth in the companion market, and as the demand for animal protein increases, a growth in the production animals segment.
During the year Animalcare sold Identicare and its minority interest in STEM, and reinvested the proceeds back into the business to enable it to seek more opportunities in the animal pharma sector and invest in its own R&D.
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The company saw revenues increased 4.8% year-on-year to GBP36.9m with increases in both price and volume and growth across its three divisions. The AIM-listed company saw its underlying earnings grow 2.5% to GBP6.6m, a reflection of Animalcare’s improved gross margins.
This led to an increase of statutory profit to GBP18.8m, a significant jump from the GBP1.6m from 1H23. Not everything was positive, as underlying continuing basic earnings per share fell 4.8% to 5.8p, down from 6.1p in 1H23, as a result of a larger tax bill.
Disposals are transformational for Animalcare
The big turnaround story in the year was the receipt of the monies from the Identicare and STEM disposals, which saw Animalcare’s net cash position swell to GBP32.9m by the end of the first half; a significant upgrade from the GBP1.7m of cash at the end of 1H23.
The company’s management declared a 2p dividend, which was in line with the year previous. Animalcare’s shares opened trading today at 244.5p up 34% over one-year and up 44% year-to-date. The company has a market capitalisation of GBP146.7m.
Animalcare’s strong first-half performance, driven by revenue growth and improved cash conversion, has positioned the company for continued success in the growing veterinary pharmaceutical market. With a focus on innovation and strategic acquisitions, the North Yorkshire company is well-equipped to capitalise on the increasing demand for animal healthcare products and services.
