15th May 2018 11:15
LONDON (Alliance News) - Animalcare Group PLC said Tuesday its profit fell sharply in 2017 on acquisition-related costs despite revenue rising significantly in what it described a "transformational" year.
In 2017, pretax profit dropped to GBP544,000 from GBP5.2 million the year prior. This was despite revenue rising 22% to GBP83.7 million from GBP68.4 million the year before.
Profit performance was hurt by GBP6.6 million in exceptional costs in the year compared to just GBP681,000 the year prior. Most of this rise in costs was associated with the amortisation of acquisition-related intangibles and other acquisition-related costs, totalling GBP6.6 million.
Animalcare declared a 2.0 pence final dividend. For the full year, the dividend totalled 6.7p per share.
"2017 was a transformational year for Animalcare Group," Animalcare Chairman Jan Boone said. "Whilst characterised by continued strong organic revenue growth, the most dominant factor during the year was the reverse acquisition of Ecuphar NV. It has positioned the group to take advantage of the opportunities arising from the significantly enlarged footprint and sales network to deliver profitable, cash-generative growth enabling the company to deliver long-term shareholder value."
In July 2017, Animalcare acquired Ecuphar in a reverse takeover worth GBP34.0 million.
Shares in Animalcare were flat at 190.00 pence on Tuesday.
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