Animalcare records 21 per cent profits fall

The York-based firm said pre-tax profits fell to £1.09m in the six months to the end of December following temporary supply problems with its key product Buprecare last year.

It has now reintroduced the product, a morphine based pain relief for dogs, in France and is aiming to do the same in the UK in the third quarter.

The problems cost the veterinary supplies firm £323,000 in revenue while a fall in animal microchip product sales resulted in a further £483,000 drop in income.

The company posted revenues of £5.4m for the six months, a 10 per cent fall on the same period in 2010.

Chairman James Lambert said: “During the first six months of this financial year we have overcome the temporary loss of supply of one of our key products, Buprecare ampoules.

“Reduced consumer confidence is however significantly affecting our companion animal identification business, but the strength of our portfolio of licensed veterinary medicines continues to deliver growth greater than the overall market.

“Whilst the second half of the year presents challenges, the board believes that overall trading for the full year will be in line with market expectations.”

The company is set to increase its interim dividend from 1p to 1.5p.