- Animalcare - a leading supplier of veterinary medicines - reports a solid trading performance for the six months to the end of December.

Revenues across the group were up by approximately 7.2% to £6.93m (2013: £6.46m). Revenue from sales of Licensed Veterinary Medicines was up 10.6% to £4.40m (2013: £3.98m). This increase includes planned organic growth and a non-recurring benefit from sales of Buprecare as a result of supply problems of a competitor product balanced by lower than expected sales of some older, lower margin pharmaceuticals.

Sales in the Companion Animal Identification group continued to perform well, increasing by 5.0% to £1.26m (2013: £1.20m) versus prior period. Microchip revenues were up in the period and other products and services in this group also performed well following further marketing investment in this area.

Revenues from the Animal Welfare group fell by 1.2% to £1.27m (2013: £1.29m) but, as observed in the previous financial year, with a moderate increase in gross profitability following the rationalisation of the less profitable products.

Operating cash flows have benefited from the planned reduction in stock levels, which will remain a focus area during the second half of the financial year. This, together with lower than planned investment in our product pipeline in the first half, have contributed to a higher than expected cash position of approximately £5.00m (30th June 2014: £3.81m, 31st December 2013: £3.75m).

At 8:07am: [LON:ANCR] Animalcare Group PLC share price was +4p at 172.5p

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