Upbeat Dechra Pharmaceuticals growing

The group, which has its Dales Pharmaceuticals division in Skipton making drugs for pets and humans, said revenue for the 12 months ended June 30 was about 5.1 per cent up on last year.

Acquisitions contributed 1.8 per cent of the growth while foreign currency movements had a negative impact of 0.5 per cent.

Dechra said European pharmaceuticals performed “robustly”, including the Genitrix brands acquired in December, but growth in diets revenue slowed in the second half of the financial year.

US pharmaceutical sales were about 48.7 per cent higher than last year, including sales from the DermaPet acquisition in October. Dechra said the business is now fully integrated into its US operations, allowing it to make the expected savings.

In Dechra’s services division revenue grew by approximately 3.7 per cent. The firm said the operating margin was broadly consistent with that achieved in the 2010 financial year.

Cash flow in the second half of the financial year was strong, leading to a “substantial reduction” in net borrowings compared to 31 December, it added.