Dechra reports rise in profits

The group, which has its Dales Pharmaceuticals division in Skipton, has achieved its fifth successive year of double digit underlying earnings growth.

In the year ended June 30 2011, the company’s revenue increased by 5.4 per cent from £369.4m to £389.2m, while underlying operating profit increased by 12.9 per cent from £28.2m to £31.8m.

Underlying profit before taxation increased by 15.4 per cent from £26.1m to £30.1m.

Dechra has been on a buying spree recently. In December it paid £5.4m for Genitrix, based in West Sussex, which followed the £40m purchase of DermaPet in October.

Michael Redmond, the company’s chairman, said: “Two acquisitions, which will be earnings enhancing in the first full year of ownership, have been completed and integrated into the business, our branded products have continued to outperform the market, several new products have been launched and our international scope has increased.

“Furthermore, we have continued to make advancements with our product development pipeline and have increased investment in people and infrastructure to ensure growth is sustained in the future.

“Although footfall through veterinary practices has declined and the general economic climate remains uncertain we are continuing to demonstrate solid growth in markets in which we trade. Our branded product range, the focus of our key strategic objective, continues to grow strongly.

“To sustain this growth we have increased investment in product development, extended the geographies in which we operate, acquired complementary businesses and increased the number of people within sales and marketing. We believe, therefore, that we are well positioned to ensure future solid growth is maintained and shareholder value enhanced.”