Vet service Animalcare reports positive results after balance sheet “transformation”

International veterinary pharmaceutical and services business Animalcare has reported a “transformation” in its balance sheet after two sales worth £27.7m, as well as a boost in revenue.

The AIM-listed, York-based company told markets this morning that its revenue rose by five per cent to £36.9m, from £35.2m in the first half of 2023.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 2.5 per cent to £6.6m from £6.5m in the same period of 2023.

In particular, Animalcare said its Plaqtiv+ dental range and Daxocox osteoarthritis treatment returned strong double-digit revenue growth.

It said its balance sheet has been transformed by the sale of Identicare, as well as its minority equity stake in STEM Animal Health, which together provided a £27.7m cash boost.

The vet service reported its net cash position at £32.9m, versus £1.7m at the same time last year.

However, underlying continuing basic earnings per share fell by 4.9 per cent to 5.8p, from 6.1p in 2023. The drop was driven by increased taxes, the company said.

Animalcare’s Chief Executive Officer, Jenny Winter, said: “I’m delighted to report that we delivered a positive performance for the first six months of 2024 characterised by increased revenues and profits and improved cash conversion.

“The divestment of Identicare and disposal of our minority stake in STEM Animal Health Inc. in the first half have had a transformative effect on our balance sheet yielding cash of £27.7m net of expenses. 

“The resultant positive cash position equips the group with significantly increased flexibility and firepower as we maintain our pursuit of organic and inorganic investment opportunities to drive sustainable growth in line with our long-term strategy.”

The firm said it was “confident” that its full year results will be in line with market expectations, and said its interim dividend would remain at 2p.