REG - Animalcare Group PLC - H1 Trading Update and Notice of Interim Results

AnimalcareAnnouncement

24/07/2024 07:00

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RNS Number : 4983X  Animalcare Group PLC  24 July 2024

ANIMALCARE GROUP PLC

("Animalcare" or the "Group" or the "Company")

 

Half Year Trading Update and Notice of Interim Results

 

 

24 July 2024. Animalcare Group plc (AIM: ANCR), the international animal
health business, provides the following unaudited trading update for the six
months ended 30 June 2024 ("H1 2024"), with trading in line with management
expectations. The Company expects to announce its H1 2024 interim results on
24 September 2024.

 

Current trading overview

Animalcare continues to implement its accelerated growth strategy and is
pleased to report positive trading in the first half with revenue from
continuing operations, excluding Identicare, of approximately £36.9m (H1
2023: £35.2m), an overall c. 5% increase at AER (c. 7% at CER) for the
period.

 

Companion Animal revenues benefited from strong double-digit growth in both
the Plaqtiv+ oral health range and Daxocox, offset by sales phasing within our
International Partner (export) network and some continuing disruption in
supply of certain brands, the effects of which we expect to ease in H2.
Revenues within Production Animals, which remains an important part of our
overall business, grew strongly in the first half driven by demand for a
number of our larger-selling brands, while Equine sales increased during the
period supported by continuing momentum in Danilon and growth across other
equine products.

 

We expect underlying EBITDA* from continuing operations to be at least in line
with H1 2023 (£6.5m) reflecting sustained gross margins and further targeted
SG&A investment.

 

The Group's balance sheet saw transformational change through the period
following the sale of Identicare and our minority equity stake in STEM Animal
Health Inc., coupled with underlying cash conversion well ahead of H1 2023.
Net cash balances at 30 June 2024 were £32.9m (31 December 2023: £1.7m),
providing the platform and funding headroom to accelerate investment and, with
this, future growth.

 

Jenny Winter, Chief Executive Officer said: "I am very pleased to report a
positive first half performance update following strong revenue growth in our
operations, notably in our Production Animals and Equine segments, and
improved levels of cash conversion. We remain confident in our long-term
growth strategy and are focused on utilising our strong financial position in
pursuit of value-creating opportunities through M&A, licensing and
partnerships to accelerate growth in the future and deliver long-term value
creation for shareholders. Over the period, we have identified an increasing
number of prospects with the potential to grow our business."

 

* The Group presents a number of non-GAAP Alternative Performance Measures
(APMs) which exclude non-underlying items. EBITDA is defined as underlying
earnings before interest, tax, depreciation and amortisation.

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014.

 

About Animalcare

Animalcare Group plc is a UK AIM-listed international development-focused
veterinary sales and marketing organisation. Animalcare operates in seven
countries and exports to approximately 40 countries in Europe and worldwide.
The Group is focused on bringing new and innovative products to market through
its own development pipeline, partnerships and via acquisition.

 

For more information about Animalcare, please visit www.animalcaregroup.com
(http://www.animalcaregroup.com/) or contact:

 

 Animalcare Group plc                      +44 (0)1904 487 687

 Jenny Winter, Chief Executive Officer

 Chris Brewster, Chief Financial Officer

 Media/investor relations                  communications@animalcaregroup.com (mailto:communications@animalcaregroup.com)

 Stifel Nicolaus Europe Limited            +44 (0)20 7710 7600

(Nominated Adviser & Joint Broker)

 Ben Maddison

 Nicholas Harland

 Francis North

 Panmure Liberum                           +44 (0)20 7886 2500

 (Joint Broker)

 Corporate Finance

 Freddy Crossley/Emma Earl

 Corporate Broking

 Rupert Dearden

 

 

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