SEEKING out new markets and new products is on the agenda for a York specialist company which has announced a strong set of results.

Animalcare Group revealed yesterday that its revenue for the year ending June 30 was up 8.6 per cent at £14.7 million, compared with £13.5 million the previous year.

Underlying operating profit was up 2.6 per cent, at £3.2 million compared with £3.1 million, and the veterinary medicines supplier reported a debt-free balance sheet with net cash of £7.1 million, compared with £5.8 million in 2015.

Chief executive Iain Menneer said: “I am pleased with the progress we have made this year. The group is currently in a strong position and generating significant cash flows. We will use this to invest in the business and are now in a good position to step up our investment in products and wider opportunities to provide the long-term success of the business.”

In the company’s three ‘product groups’, sales increased by 7.7 per cent to £9.2 million in sales of Licensed Veterinary Medicines; in the Companion Animal Identification group revenue was up 16.1 per cent to £2.7m, which included an incremental benefit of £300,000 following the law making it compulsory for dogs to be microchipped; and revenues from the Animal Welfare Products range increased 5.1 per cent to £2.78 million.

Mr Menneer said a number of products had also come through its ‘development pipeline’ during the financial year, precisely as scheduled. “We are really pleased to be able to deliver on that promise,” he said.

Chief financial officer Chris Brewster said: “We have got a strong balance sheet,which means we are continuing to invest in people and the development pipeline.”

Mr Menneer said there had been a growth of almost 23 per cent in export sales from a relatively low base. Brexit would inevitably have an effect on the business, but of course the extent of this was still unclear.

The group was looking at markets outside Europe, including Canada, New Zealand, Australia, Israel and Thailand. The pound’s weakness did have an impact, but he said: “The big thing is to carry on increasing the export business, that’s the best way to mitigate currency risk.”

Animalcare had invested £1.6 million in its development pipeline last year and that figure was likely to go over £2 million next year,with a particular emphasis on developing ‘novel’ products such as new medicines as well as generic ones. “That’s an exciting area, a new strategy, with bigger risks and bigger upsides,” said Mr Menneer.

The group ran a talent management programme to recruit, develop, reward and engage all of its employees in the best way, strengthening its team with new appointments.