Animalcare in York entered 2020 in a strong financial position

Supplier of veterinary medicines Animalcare Group entered the year in a strong financial position with its most recent trading update on January 23, 2020 showing significant improvements against key performance indicators such as net debt and cash conversion while earnings were in line with expectations.

As of February 29, both net debt and the net-debt-to-underlying-EBITDA leverage ratio were at similar levels to December 31, 2019, the York-based firm added.

Animalcare said: “Despite the macro uncertainty caused by the pandemic, the group has been trading in line with market expectations since the start of the financial year.

“However, feedback from our customers and supply chain partners indicates that some level of disruption to our operations is unavoidable.

“For example, many veterinary practices in our core markets that treat companion animals are now handling emergency cases only.

“The production animal sector, which accounts for around 25 per cent of our revenues, appears to be less affected.”

The business has also decided to defer the payment of its final dividend.

It said: “The decision will be reviewed later in the year once we have more clarity about the ongoing effects of the pandemic on our business.

“At that point the board will consider what actions are in the best interests of shareholders.

“This could result in the payment of a second dividend for the year ended December 31, 2019, or the retention of cash in the business to invest in future growth opportunities.”