Sales rise a pet subject for Animalcare

Ripon-based Animalcare is leading the market with innovative new drugs for dogs, cats and other household pets.

A particular success has been a new beef flavoured version of its generic heart drug Benazecare.

Pets are loathe to take medicine, but if it tastes like beef they are more likely to swallow it.

Two other new products were launched in the year to June 30, an antibiotic called Enrocare, which treats a number of species, and a dog epilepsy drug called Phenoleptil.

A number of new products will come on the market this year, but the group is keeping them under wraps until the launch.

Shares in Animalcare rose nearly 10 per cent, a rise of 10p to 115p, valuing the company at 22.95m.

The group said year-end earnings are expected to be slightly above market expectations, prompting analysts at Brewin Dolphin to up their rating from 'add' to 'buy'.

"The trading update makes for very positive reading," said Brewin analysts Chris Glasper and Sahill Shan in a note.

"Revenues have grown in both divisions, but the key highlight is from the companion animal business, with top line growth coming in at an impressive 20 per cent, driven largely by increased penetration from the new veterinary medicines programme."

Brewin Dolphin raised its target price from 133p to 135p and said it expects to increase 2010 forecasts by around nine per cent and 2011 estimates by around five per cent.

Group revenues for the year to June 30 were 15 per cent up on last year.

Revenues in the combined agriculture businesses of Ritchey, Fearing International and Travik were nine per cent ahead of the same period last year thanks to a strong performance from Ritchey's electronic sheep tags.

However the group said that trading in this division is still challenging and it will announce the outcome of a strategic review of the business at the preliminary results on October 4.