Dechra determined to beat off recent market volatility

The company​, which manufactures pharmaceuticals in Skipton,​ ​reported a 21 per cent rise in annual revenues at constant exchange rates.

Excluding acquisitions, revenue growth was 11​ per cent at constant exchange rates for the year to June 30.

The ​group said the ​momentum in ​its​ North American business ​was ​“​very pleasing​” with revenue increasing by​ 37​ per cent​ at ​constant exchange rates, excluding ​its ​recent Putney and Brovel​ acquisitions.

​​Ian Page, Dechra’s chief executive, said: “With three acquisitions, pipeline product launches, successful trading in our new subsidiaries and solid growth in our focus portfolio, Dechra has delivered another strong performance in the financial year 2016.

​“​We remain confident in our future prospects as we​ ​continue to execute our strategy​. We believe that the growth opportunities available to us should not be​ ​affected by the current market volatility and uncertainty.”​

The ​group said the ​integration of ​its​ acquisitions has advanced in line with expectations​ and will​ provid​e​ a​ ​platform for future growth.

​Analyst Chris Glasper at N+1 Singer said: “An in line/slightly ahead trading update supports the notion of Dechra as another safe haven, particularly given the global nature of activities and increasing US exposure.

“Recent sterling weakness should prompt mid-high single digit upgrades, supported by the underlying strength of trading pretty much across the board. We see more to go for as further growth is delivered and as new products from the pipeline are launched.”

Mr Page said: “Our geographical expansion is accelerating with the acquisitions of Brovel and Genera and our solid​ ​progress in our recently established subsidiaries in Poland and Austria.

​“​The results also include the full​ -year effect of the establishment of the Canadian subsidiary which commenced trading in January 2015.​”

He said that the reorganisation of Genera’s business has been completed, the restructuring of Putney was conducted in the first week of integration and the new management team at Brovel is now in place.