YORK veterinary medicine specialist Animalcare has reported a five per cent rise in revenues to £13.5 million following a "solid trading performance" over the last year.

In a trade update, for the year ending June 30, 2015, ahead of releasing its preliminary results in October, the York Business Park-based firm said underlying operating profit for the full year is set to be at least £3 million.

Revenue from two of the business's three division was up on last year, with five new products launched during the year.

The Licensed Veterinary Medicines division saw revenues from sales up 8.8 per cent to £8.58 million, while sales from the Animal Welfare Products division rose by 2.6 per cent to £2.65 million.

Revenue from sales of the Licensed Veterinary Medicines group was up 8.8% to £8.58m (2014: £7.88m) which includes encouraging sales of recently launched new products.

The Companion Animal Identification division saw revenues fall by 4.5 per cent to £2.31 million, which Animalcare has attributed largely to phasing of export equine chip sales, where a substantial annual order was placed very late in the prior year.

While UK sales volumes were slightly up, the business said net revenues were held back as a result of a national charity’s free microchipping campaign.

The trade update said: "Continuing from the half year position, operating cash flows have been strong driven in particular by managed reduction in stock levels.

"Planned investment in our product pipeline in the year increased significantly on the prior year.

"Investment in the product development pipeline over the last two years is bearing fruit."