Dog microchipping decision good news for Animalcare

The company, which is poised to move to new premises north west of York, said the recent announcement by the Government that all dogs must be microchipped is good news for the group’s companion animal identification range.

New chief executive Iain Menneer said: “We’re a leading seller of microchips and we’re well placed for sales to rise. We have around two million dog owners on our database so there is a real opportunity for us.”

Animalcare plans to launch four new vet products this year to continue the group’s growth record.

Dr Menneer said the four will include canine ageing drug vitofyllin, dog and cat analgesic buprecare, a cattle drug and one other product that can’t be named for competitive reasons.

First half revenues for the six months to December 31 rose 13 per cent to £6.1m, while underlying pre-tax profits climbed 21.5 per cent to £1.5m.

Dr Menneer said the increase was driven almost entirely by growth of the veterinary medicines business.

Much of the increased sales in the first half were achieved through the sale of generic medicines launched either this financial year or last financial year and still not at maturity.

The group said it has managed to stabilise the companion animal identification and animal welfare divisions.

The group said prospects for the second half of the financial year look good and the group is trading in line with market expectations for the year as a whole.

Analyst Chris Glasper at N+1 Singer said: “These results should further reassure that Animalcare is back on track.

“Buprecare ampoule sales have made a positive resumption and underlying trading is robust. Management succession is now complete and the second line management team has been strengthened.

“The move up the value chain through Project Sustain into enhanced generics and a renewed focus on international opportunities bodes well for the investment case.”

Last month Stephen Wildridge stepped down as chief executive of the company, but he will stay on until October to ensure a smooth handover to former managing director Iain Menneer.

Mr Wildridge is staying on as director of strategy and business development.