- Animalcare - a leading supplier of veterinary medicines - reports good progress during the six months to the end of December and achieved top line growth during a phase of significantly increased investment to deliver its strategy.

Revenues across the group were up by 2.7% to GBP7.11m (2014: GBP6.93m). Revenue from sales of licensed veterinary medicines was up 4.2% to GBP4.58m (2014: GBP4.40m). It says this increase has been delivered despite the impact of the prior period GBP0.2m non-recurring first half benefit from sales of Buprecare as a result of competitor supply issues, therefore reflecting strong sales growth of products launched in the second half of the previous financial year. The companion animal microchipping market has become significantly more competitive ahead of compulsory microchipping in England, Wales and Scotland in April 2016. Sales in the Companion Animal Identification group declined by 5.2% to GBP1.20m (2014: GBP1.26m). Whilst microchip revenues were adversely affected other products and services in this group performed well, increasing by 7.2%. Revenues from the Animal Welfare Products group increased by 5.0% to GBP1.34m driven primarily by increased sales of our Infusion Accessories range. An update adds: "As we noted in our FY15 results in October last year, we entered the 2016 financial year with a continued focus on investment, both in our people and product development pipeline. In the first six months of FY16 we have invested over 300% more in our product development pipeline versus the prior period. We expect overheads for the period to increase by approximately GBP0.2m compared with the first six months of FY15 as we position the business for future growth.

"Our Group cash position increased by GBP0.3m to GBP6.1m (30 June 2015: GBP5.78m; 31 December 2014: GBP5.04m). We continue to maintain robust control over our working capital hence operating cash flows remain strong."

At 8:15am: [LON:ANCR] Animalcare Group PLC share price was -1p at 219p

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