Shares of York-based Animalcare Group plc, the international veterinary sales and marketing business, rose as much as 5% after it published an unaudited trading update for the year ended December 31, 2023, saying revenues are expected to rise to about £74.4 million.
Animalcare is AIM-listed, operates in seven countries, and exports to about 40 countries.
“Animalcare is pleased to report growth in revenue and underlying EBITDA in line with market expectations along with a further strengthening of the financial platform,” said the firm.
“The group returned to revenue growth in 2023 with sales increasing across all product segments and direct operations.
“Overall, full year revenues are expected to be approximately £74.4 million (2022: £71.6 million), an increase of c. 4.0% at AER (c. 2.0% at CER).
“Headline revenues benefited from strong growth in the Companion Animals oral health range, notably Plaqtiv+, demand for Danilon in Equine and continuing momentum of the Identicare pet microchipping and consumer-focused services business.
“Additionally, Daxocox recorded double-digit growth across Animalcare’s direct sales territories.
“The group anticipates that underlying EBITDA will be in line with market expectations and at least in line with 2022 (2022: £13.1 million), reflecting a combination of strong gross margins and targeted SG&A investment, primarily on our people.
“Continued strong cash generation, approximately in line with the rate delivered in 2022, further reinforced the balance sheet.
“The group ended the financial year in a net cash position, pre IFRS16 leases, of £1.7 million, (31 December 2022: £2.4 million debt).
“This very strong financial platform enables the pursuit of inorganic and organic opportunities that support the group’s long-term growth strategy.”
Animalcare CEO Jenny Winter said: “I am delighted to deliver such a positive performance update for the full year which underlines our growing capability as well as the attractive fundamentals of the markets in which we operate.
“Our financial platform – stronger than ever – equips us with the firepower and flexibility to grow our business over the long term through investment in our people, our pipeline and external business development opportunities.
“That remains a key priority.”