A VETERINARY company with a base in York has reported a “very strong” first half-year.

Animalcare, which has a location in Nether Poppleton, released its results for the six months ending December 2016, which showed a 12 per cent increase in revenue on the same period in 2015.

The increase is credited in part to structural changes made since 2014, and has also seen sales from the Animal Welfare Products group increase by 13.3 per cent to £1.51m - up from £1.2 million in the same period in 2015.

James Lambert, chairman of Animalcare Group plc, released a statement to shareholders which stated

He said: “The business continued to perform strongly during the first six months of its financial year with sales up by 12 per cent to £8 million.

“Given the strong start to the current financial year, and the expected launch of more new pharmaceutical products in the second half, your Board remains confident about the Group’s prospects for the full year and beyond.”

The business is split into three main areas, two of which have seen strong increases in the six months to the end of December - licensed veterinary medicines up 17.2 per cent to £5.37 million, and animal welfare products up 13.3 per cent.

However, revenue for the business’ companion animal identification sector - registering animals to owners - fell by 9.2 per cent to £1.09 million.

The company’s report said this was due to “a very competitive environment, as expected”, and partly due to the compulsory microchipping legislation introduced in the UK in April last year.

Going forward, the company said “new distribution contracts and letters of understanding have been agreed with 14 distribution partners in new markets across Europe, Asia, Australasia and North America”, which should further increase revenue outside the UK.

The company’s report said: “Where products are already licensed in these new markets we expect modest sales revenue this financial year. For the majority of new markets our products require regulatory approval that will take between 18 to 36 months to achieve.”

The company has increased its market to include more than 125 practices around the UK, and there continues to be “good progress” in the company’s product development pipeline. Chief executive officer Iain Menneer said in summary: “Animalcare is in a good position to build on the strong performance in the first half of the year.

“We are pleased with the early success of our strategy to grow revenue from markets outside the UK.”