Veterinary specialist Dechra Pharmaceuticals (DPH) had a much better second half, after difficulties in the Netherlands and supply issues in the US kept growth flat at the halfway point. By the year-end, accelerating sales of the group's core animal health products resulted in an 8 per cent improvement in underlying operating profit to £42m.
In Europe, endocrinology products Felimazole and Forthyron, which treat hormonal disorders, both reported higher sales. So did cardiovascular product Cardisure, which increased its European sales by almost a third. In the US, Felimazole and Vetoryl, another endocrine product, also performed well, reporting 19 per cent and 24 per cent revenue growth respectively.
Turning to pastures new, Dechra opened its new Italian business in March. Chief executive Ian Page says he is likely to open new offices where the value of the extra profits to be made by taking products in-house (and away from third-party distributors) exceeds the infrastructure costs. Next in line is Canada, where the first revenues are expected from February 2015.
Analysts at broker Investec Securities expect pre-tax profits of £42m for the current financial year, giving EPS of 37.7p, up from £40m and 36.3p respectively, in 2014.
| DECHRA PHARMACEUTICALS (DPH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 743p | MARKET VALUE: | £652m | |
| TOUCH: | 743-745p | 12-MONTH HIGH: | 755p | LOW: 655p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 33 | |
| NET ASSET VALUE: | 234p* | NET DEBT: | 2% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 369 | 17.7 | 18.4 | 9.6 |
| 2011 | 389 | 18.5 | 19.5 | 11.1 |
| 2012 | 124 | 6.1 | 5.2 | 12.2 |
| 2013 | 189 | 12.5 | 12.5 | 14 |
| 2014 | 194 | 21.4 | 22.2 | 15.4 |
| % change | +3 | +71 | +78 | +10 |
Ex-div: 6 Nov Payment: 21 Nov *Includes intangible assets of £196m, or 224p a share | ||||
