30th Apr 2019 11:05
LONDON (Alliance News) - Veterinary products firm Animalcare Group PLC said on Tuesday it swung to an annual loss following charges related to its reverse acquisition, as it also reduced its dividend.
Revenue for 2018 rose 16% to GBP72.5 million, but the company swung to a pretax loss of GBP357,000 from a GBP377,000 profit the year before.
On a proforma basis, revenue was up 2.7%.
Animalcare completed the reverse acquisition of Ecuphar NV in July 2017, and took a GBP4.6 million charge on acquired intangibles and a GBP2.5 million charge in respect of previous acquisitions made by Ecuphar.
The company said sales growth towards the end of the year was hit by supply challenges related to third-party manufacturers, and Animalcare also experienced delays to some new product launches.
Animalcare said Chief Executive Jenny Winter - appointed in October - has initiated a full review of the business and identified a "clear path".
Animalcare proposed a final dividend of 2.4p per share, giving a total dividend of 4.4p for the year, down from 6.7p the year before.
"Animalcare made good progress in 2018 as we focus on creating a competitive platform for future growth in the global animal health sector," said Chair Jan Boone.
"We continue to improve the underlying profitability of the group, and the disposal of our Wholesale Division was in line with our strategy to focus on the higher-margin veterinary pharmaceuticals business, a key growth driver," Boone added.
Shares in Animalcare were up 1.9% at 144.125 pence on Tuesday.
Related Shares:
Animalcare Grp