SUPPLY problems with a competitor 's product contributed to a rise in revenues at York veterinary medicines specialist Animalcare.

In a trade update, ahead of publishing its interim results next month, the firm reported a 7.2 per cent increase in turnover for the six months ending December 31, up to £6.93 million.

Based at York Business Park, in Nether Poppleton, Animalcare saw improved sales across two of its three divisions, with revenues from Licenced Veterinary Medicines up 10.6 per cent to £4.4 million.

The Group said this increase included planned organic growth and a non-recurring benefit from sales of Buprecare as a result of supply problems of a competitor product balanced by lower than expected sales of some older, lower margin pharmaceuticals.

Sales in the Companion Animal Identification group continued to perform well, increasing by 5 per cent to £1.26 million with microchip revenues up in the period.

However revenues from the Animal Welfare group fell by 1.2 per cent to £1.27 million, though was mitigated by a moderate increase in gross profitability following the rationalisation of the less profitable products.

Iain Meneer, chief executive at Animalcare, said: "During the period Animalcare started the distribution of Pet Remedy in the UK and Ireland, which is a natural de-stressing and calming product.

"The sales and marketing teams are planning the UK launch of three pharmaceutical products on behalf of a European partner in the second half and these are expected to make a small contribution to revenue in the current financial year with greater impact in the next year.

"The product development pipeline activities are progressing well with expenditure weighted to the second half.

"Following the solid trading performance in the first half, particularly across the Licensed Veterinary Medicines and Companion Animal Identification product groups, the Board remains confident about the prospects and outcome for the full year."

The group's update said Animalcare benefited from the planned reduction in stock levels, which together with lower than planned investment in product pipeline in the first half, has contributed to a higher than expected cash position of approximately £5 million.