StockMarketWire.com - Animalcare has warned that pre-tax profits for the year to the end of June are likely to be materially below market forecasts.

It says that as previously indicated, reduced consumer confidence in general along with changes in distribution and service agreements is significantly affecting the group's companion animal identification business.

Year-to-date sales performance in this area of the group's business is approximately 32% below that of the comparable period and has not shown the anticipated recovery.

The group says it expects that sales in this area will remain subdued for the rest of the current financial year.

It adds: "The core veterinary medicines business has continued to perform in line with our expectations and revenue to April is approximately 4% above last year.

"Removing the effect of the temporary supply disruption of Buprecare ampoules, the progression in veterinary medicines is approximately 15% above last year.

"We expect this performance to continue to the end of the financial year.

"As reported, the Buprecare ampoule supply issues have been addressed and we expect that sale of ampoules will resume in the next year.

"Despite the continued focus on cost control, the impact of the weak revenue trend in companion animal identification means that profit before tax is now expected to be materially below market expectations.

"Second-half pre-tax profit is now expected to be similar to the first-half."

At 8:46am: [LON:ANCR] share price was -17.5p at 152.5p



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