Animalcare profits to beat expectations as revenues rise

14th Jul 2016 16:54

(ShareCast News) - Veterinary medicine supplier Animalcare said full year revenues rose by 8.6% to £14.70m and underlying operating profits were expected to be broadly in line with last year, exceeding market expectations.Revenue from sales of the Licensed Veterinary Medicines group was up 7.7% to £9.24m, with growth driven by full year sales of new distribution products launched late in the prior period, Animalcare said."The result of the EU referendum has introduced some uncertainty in the UK economy and in particular sterling weakness which the group will continue to monitor," the company said."This will impact the cost of a large proportion of our pharmaceutical products imported from mainland Europe, denominated in Euros, and microchips supplied in US dollars.""However this is balanced in part by the increasing level of Euro-denominated sales outside the UK and in the short-term, our hedging position."The company also said it expected that the compulsory microchipping legislation for dogs in the UK will result in a "decline in the available dog market". However, it said it had plans to evolve the established business model to build upon the anticipated lower revenue levels.