YORK veterinary medicine group Animalcare is setting its sights on overseas growth after posting a 2.7 per cent rise in revenues to £7.11 million.

Releasing its interim results for the six months ending December 31, 2015, Animalcare attributed a 13 per cent loss in pre-tax profits, down to £1.53 million, to increased investment in the business, which resulted in operating costs rising to £2.33 million from £160,000 in the same period for 2014.

Based at York Business Park, the Animalcare group is split into three divisions; Licensed Veterinary Medicines, Companion Animal Identification and Animal Welfare Products.

James Lambert, chairman of Animalcare, said: "The business has continued to perform well during the first six months of its financial year with sales up which is particularly pleasing against a very strong first half in FY15, when we benefitted from a competitor supply issue in one of our key pharmaceutical products.

"Sales of Licensed Veterinary Medicines increased by 4.2 per cent and this was after growth of 10.6 per cent in the first half of FY15.

"The sales of our older licensed veterinary products held up well and we increased our export sales during the period.

"The new product development programme has made good progress during the half with our in-house team working on several new licences in line with our core strategy. We expect the benefits of the increased spending on these projects will start to show in the 2017 financial year.

"Overheads increased during the half in line with our strategy of investing in our people. This is all focused in preparation for our new pipeline of Licensed Veterinary Medicines delivering growth from 2017 onwards."

During the six months the group's Companion Animal Identification division fell back by 5.2 per cent to £1.2 million, in line with its 2013 period sales after the market became "significantly more competitive" ahead of compulsory microchipping in England, Wales and Scotland in April this year.

The group said the first half of the year also saw a planned focus on Animalcare's exports get underway, with commercial benefits already being felt.

Iain Menneer, chief executive of Animalcare said: "We have continued to make strong progress in executing our strategy to drive growth from 2017 onwards.

"Export revenues have improved in the period and the new head of Export Development has made good progress in evaluating existing and new territories and partners to increase our geographic footprint."