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Good results pave way for investment at Animalcare
RECORD revenue is paving the way for future investment at Animalcare as its full-year results show a 17 per cent rise in operating profits.
The York-based veterinary products group reported “very pleasing” results, with revenue up 11.6 per cent to £12.1 million from £10.9 million the year before.
The year end, to June 30, finished with cash assets of £3.7 million, compared to £2.3 million in 2012, and total dividend for the year was up 17.8 per cent from 4.5p to 5.3p.
The company has highlighted success over the past year as being able to achieve strong growth in a flat market, launching three new products in the last year with a fourth gaining marketing authorisation, and the completion of a move from Chessingham Park Industrial Park in Dunnington to York Business Park in Poppleton.
Chief executive Iain Menneer said: “We are very pleased with the results. We reported strong half-year results and are now able to put some meat on the bones after a very pleasing performance.
“This is the result of the foundations we put in place a number of years ago with our strategy of bringing growth through our development pipeline.
“We can’t produce growth overnight, its takes three years to licence a new product for the market.
“We put these processes in place about ten years ago and it has really delivered good growth. We are going to launch some new generic products that will add to the business.
“However, we are planning to invest in the business, which will see some of our costs go up.
“We are therefore not expecting to be able to maintain this level of financial growth because it will take some time for these new products we are investing in to come to the market.
“We are investing for the future. We have a good business with a strong core.”
The group is split into three divisions – Licensed Veterinary Medicines, Companion Animal Identification and Animal Welfare.
Licensed Veterinary Medicines and Animal Welfare saw sales increases of 20.6 per cent and 5 per cent respectively, however turnover for Companion Animal Identification dropped by 4 per cent.
Dr Menneer said the company experienced a “difficult year” in 2012 for microchip sales, but they are now seeing a reduction in the decline, with a new sales and marketing emphasis starting to produce results.
Animalcare has 55 staff including a sales team of 15 representatives selling to veterinary practices across the UK.
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