Animalcare gears up for compulsory micro-chips

The York-based company said action by pet owners to meet the deadline has been slow, but as this gathers momentum it is well placed to benefit.

Animalcare’s CEO Iain Menneer said: “The legislative change will give a massive bump to the sector, but 60 to 70 per cent of dogs are already micro-chipped and a certain percentage of dog owners won’t micro-chip so we are looking at a 10 per cent increase in micro-chipping.

“We are very well placed to benefit. Our chip sales are growing while our nearest competitors are in decline. Our rivals are not doing as well as us. Our database is ready and scalable to take on new orders.”

The group also expects to boost its vet medicines division with the launch of three new pharmaceutical products in its second half.

Pre-tax profits rose 28 per cent to £1.8m in the six months to December 31 while revenue rose seven per cent to £6.9m.

Analyst Savvas Neophytou at Panmure said: “Animalcare reported first half results materially ahead of our forecasts.

“These are strong results overall, with individual businesses performing particularly well.”

Revenue from veterinary medicines ​rose 11 per cent following organic growth and a non-recurring benefit from sales of one of its drugs, Buprecare, as a result of supply problems at a competitor.