Animalcare Group (AIM: ANCR) said sales in the six months to 31 December grew across all three product categories, making for a 15% increase in total revenues to £8.93 million, while sales in the second half have been in line with expectations.
Other financial highlights included a 23% decline in the net debt to £3.82 million and a net cash flow of £0.93 million, roughly unchanged from £0.94 million a year ago. EBITDA (earnings before interest, taxes, depreciation and amortisation) climbed 26% to £1.21 million and operating profit soared 62% to £0.98 million.
Overall, the financial performance continued ahead of the group’s banking covenants.
New product development helped veterinary medicines sales, while companion animal identification sales were helped by Identichip companion animal microchip, while Animal Welfare sales were aided by agricultural and companion animal products.
“I am pleased to report strong growth in revenue and EBITDA, especially in our companion animal business. Although the market for our key livestock products is challenging we anticipate trading to improve in the second half of the year and are confident that our licensed veterinary medicines will continue to deliver revenue and profit growth in line with expectations,” said chairman James Lambert.
The group also revealed that it has been granted a marketing authorisation in the United Kingdom and other EU markets for a further licensed veterinary medicine which will be launched in the next few months.
Disclosure: The author holds no positions in the company