Pet drugs supplier Animalcare reported a “solid” trading performance for the year to June 30 with a five per cent jump in revenues to £13.5m.
The York-based form said underlying operating profits will be at least in line with market expectations.
The vet drugs division reported a nine per cent hike in revenues to £8.6m, boosted by encouraging sales of recently launched new products.
However the pet micro-chipping division saw sales fall five per cent to £2.3m, largely due to phasing of export horse chip sales following a substantial order in the previous year.
UK sales volumes were slightly up, but revenues were held back following a national charity’s free micro-chipping campaign. Sales from database services continued to rise in the year.
Sales from animal welfare products rose three per cent to £2.7m with further improvement in profitability following the rationalisation of lower margin products.
The firm said overall underlying operating profit for the full year are at least £3.0m and the year-end cash position was £5.8m.
Over the year Animalcare launched five new products in the UK & Ireland. Pet Remedy was launched in the first half with sales above management expectations. Synthadon and Anaestamine were launched mid-way through the second half and the group said they are already selling strongly.
Towards the end of the half Clavubactin and Fungiconazole were launched; the former is an antibacterial and the latter an antifungal medicine.
The group said: “There is little evidence that dog owners are responding to the imminent compulsory chipping of dogs in England, Wales and Scotland in April 2016. However Animalcare has plans to grow microchip sales in the run up to this legislation and importantly the longer term.
“The product development pipeline is progressing well with a further significant rise in capital expenditure forecast for the new financial year building on the increase in this reporting period.
“Following the solid trading performance in the year, particularly from the Licensed Veterinary Medicines group, the board remains confident about the prospects for the new financial year and is encouraged by the gaining momentum in the product development pipeline.“