Animalcare Group PLC Trading update & Notice of Results (7088W)
August 03 2018 - 1:01AM
UK Regulatory
TIDMANCR
RNS Number : 7088W
Animalcare Group PLC
03 August 2018
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Animalcare Group plc
(the "Group" or the "Company")
Trading update & Notice of Results
Animalcare Group plc (AIM: ANCR) provides the following
unaudited trading update for the Group's financial period for the
six months ended 30(th) June 2018 (the "Period") ahead of
publishing its interim results on 25(th) September 2018.
The acquisition of Ecuphar NV ("Ecuphar") was completed on
13(th) July 2017 and treated as a reverse acquisition. Therefore
the Group's results for the Period will comprise the consolidated
results of the Group with comparatives for the six months ended
30(th) June 2017 comprising the results of Ecuphar NV only. In
order to provide a like-for-like comparison, the unaudited
financial information and narrative presented below refer to the
Group's results for the Period with pro forma comparatives that
reflects trading of the Group for the six-month period to 30(th)
June 2017.
Trading review
Trading in the Period was in line with management expectations.
Total Group revenue for the Period increased by c.6.4% at AER
(c.4.8% at CER) to c.GBP47.8m (2017: GBP44.9m). Pharmaceutical
segment revenues increased by c.6.7% at AER (c.5.2% at CER) to
GBP35.4m (2017: GBP33.1m). This was primarily driven by a stronger
product mix with a c.7.0% increase in the Companion Animal Product
category offset by a 1% decline in Production Animals. Revenues
within the wholesale segment during the Period, increased by c.5.7%
at AER (c.3.8% at CER) to c.GBP12.4m (2017: GBP11.8m).
Due to an improving product mix over the last six months and
focus on costs, gross margin within the Pharmaceutical segment is
now stabilising compared to FY17, and the Group remains focussed on
this and EBITDA development.
Net debt during the Period was in line with FY17 and the Group
has sufficient facilities available to fund its operational and
investment requirements. Animalcare continues to focus on improving
operating cash generation.
Directorate changes
Animalcare also announced today the appointment of Jenny Winter
as Chief Executive Officer, effective from 1(st) October 2018.
Jenny joins Animalcare with over twenty years' experience working
in big pharma in various senior management and commercial roles for
AstraZeneca and GlaxoSmithKline.
Chris Cardon the current Chief Executive will step down on
Jenny's arrival but remain on the Board of the Company as Chief
Strategy Officer. As Chief Strategy Officer, Chris will continue to
lead the Company's international strategic vision and acquisition
strategy and be part of Jenny's leadership team.
Operational update
The Company remains focused on creating a strong platform for
future growth and driving long-term shareholder value. Delivering
integration and reorganisation to unlock scale benefits and
structure the business for future growth remains a core focus, and
good progress is being made, most notably during the Period with
the restructuring of the UK commercial team, as well as with the
Groups upgrade and integration of its IT systems. We continue to
expect commercial and efficiency synergies from the merger with
Ecuphar to be delivered over the course of late 2018 and full year
2019.
As part of our growth strategy, Animalcare has been focused on
expanding markets for our own products in new territories and
launching new in-licensed products. Several of these new launches
that were due to take place in the first half of 2018 have been
subject to delays by distribution partners. We are still confident
in the ability to launch these products in the second half of 2018
or early 2019.
Pharmaceutical division product development pipeline
The product pipeline has continued to progress in line with
expectations over the first half. In June we received a positive
opinion from the Committee for Medicinal Products for Veterinary
European Medicines for a centralised registration for a new product
(Cortacare), which will be launched in 2018. During the Period,
decentralised procedures for four new products were submitted and a
further two are planned in the second half of the year. It is
expected that these six new products will be launched across a
number of territories in 2019.
Animalcare also announces today that is has agreed the
distribution rights in Western Europe for a patented, targeted
pulsed electromagnetic field device for treating pain and
inflammation, the Assisi Euro Loop 2.0, from Assisi Animal Health
LLC. The Euro Loop 2.0 compliments the current Animalcare
portfolio, allowing multimodal inflammation and pain treatment for
deep tissue conditions in smaller animals, in conjunction with
other clinic therapies. The product has been sold in the US since
2014 and will be launched into selected European countries by
Animalcare in late 2018.
Summary and Outlook
The Board is pleased with the continued revenue growth of the
Group during the Period, and the improving translation through to
profit. Our focus remains on our goal of becoming a leading
pan-European Animal Health company, in order to deliver maximum
future value for our shareholders. The Board remains confident in
the Group's ability to deliver revenue growth in the second half,
notwithstanding the delays in the launch of certain new products
from our distribution partners. The Board continues to expect
improved profitability over the second half compared to H2
FY17.
-Ends-
For further information, please contact:
Animalcare Group plc Tel: 01904 487 687
Chris Cardon, Chief Executive Officer
Chris Brewster, Chief Financial Officer
Panmure Gordon (Nominated Adviser & Broker) Tel: 020 7886 2500
Corporate Finance
Freddy Crossley / Emma Earl
Corporate Broking
James Stearns
Consilium Strategic Communications Tel: 020 3709 5700
Amber Fennell animalcare@consilium-comms.com
Chris Welsh
Olivia Manser
About Animalcare Group plc
Animalcare is a pan-European sales, marketing and product
development company focused on the veterinary and animal health
sectors. The Company has operations across Europe with direct sales
in seven countries (UK, Belgium, Netherlands, Spain, Portugal,
Italy and Germany), and exports to approximately 40 markets
worldwide through global partnerships. The Company sells over 300
products including pharmaceuticals, vaccines and nutraceuticals.
Animalcare has a diverse pipeline of products in development and a
strong network of distribution and in-license partnerships. For
more information, please visit: www.animalcaregroup.co.uk
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END
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