Animalcare's (ANCR) results showed the benefit of several years of heavy lifting as the company developed its veterinary medicines business. The resulting higher margins from developing and selling generic medicines to pet owners meant Animalcare's underlying operating profits increased by 17 per cent to £2.7m in what was an otherwise flat animal medicines market in the UK. However, the investment needed to develop its product pipeline means that broker Panmure Gordon is forecasting relatively flat adjusted pre-tax profits of £2.65m in the current financial year, giving EPS of 10.1p, down from 10.5p last year.
It was the relaunch of Buprecare painkiller ampoules for cats and dogs that boosted Animalcare's licensed veterinary medicines segment. Revenues here rose by 20.6 per cent to £7.2m, which more than offset the ongoing sales decline at companion animal identification. Animalcare has encountered fierce competition for pet microchipping and sales here dipped by 4 per cent to £2.2m, as a result. Meanwhile, animal welfare product revenues rose by 5 per cent overall to £2.7m, helped by the company's range of infusion accessories. Despite this, the segment is in long-term decline and management plans to eventually run it down.
Chief executive Ian Menneer said Animalcare will become more focused on launching undifferentiated generic drugs and will launch two new products in the second half.
ANIMALCARE (ANCR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 172.5p | MARKET VALUE: | £35.7m | |
| TOUCH: | 170-175p | 12-MONTH HIGH: | 172.5p | LOW: 121p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 87p* | NET CASH: | £3.7m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 17.6 | 1.53 | 5.3 | 2.50 |
| 2010 | 11.2 | 2.04 | 7.1 | 3.00 |
| 2011 | 11.8 | 2.89 | 11.0 | 4.00 |
| 2012 | 10.8 | 2.10 | 8.4 | 4.50 |
| 2013 | 12.1 | 2.33 | 9.1 | 5.30 |
| % change | +12 | +11 | +8 | +18 |
Ex-div: 2 Oct Payment: 14 Nov *Includes intangible assets of £14.2m, or 69p a share | ||||
