- Animalcare, a leading supplier of veterinary medicines, reports a solid trading performance for the year ended 30 June.

Revenues across the group were up by 5.1% to £13.54m (2014: £12.88m) and underlying operating profits are at least in line with market expectations.

Revenue from sales of the Licensed Veterinary Medicines group was up 8.8% to £8.58m (2014: £7.88m) which includes encouraging sales of recently launched new products. The Companion Animal Identification group revenues fell by 4.5% to £2.31m (2014: £2.42m), largely due to phasing of export equine chip sales where a substantial annual order was placed very late in the prior year. Whilst UK sales volumes were slightly up, net revenues were held back as a result of a national charity's free microchipping campaign. Sales from the database services continued to rise in the year. Sales from the Animal Welfare Products group rose by 2.6% to £2.65m (2014: £2.58m) with further improvement in gross profitability following the rationalisation of lower margin products in the prior year. Overall underlying operating profit for the full year are at least £3.0m. The year-end cash position was £5.78m (30 June 2014: £3.81m). Continuing from the half year position, operating cash flows have been strong driven in particular by managed reduction in stock levels.

Planned investment in the product pipeline in the year increased significantly on the prior year. Investment in the product development pipeline over the last two years is bearing fruit; three projects have reached important milestones in the second half and were submitted for regulatory approval.

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