3rd Jun 2020 17:32
(Alliance News) - Dechra Pharmaceuticals PLC on Wednesday said its outlook for the year is in line with expectations, shaking off Covid-19 uncertainty, and presented plans for a placing of 5% of its shares.
Dechra said that in the ten months to April 30, revenue rose by 11% year-on-year. The European Pharmaceuticals unit had a 10% revenue urge, with North American Pharmaceuticals rising 11%.
"The board is pleased to confirm that the outlook for the full year 2020 is broadly in line with management expectations, despite the disruption that has been caused by Covid-19. The group has made significant progress with the previously discussed manufacturing issues, with in-house supply issues mostly resolved. It is pleasing to see that North America has returned to growth, as anticipated at the time of the half-year results in February, with a strong performance during the period.
"Although trading has softened, and will most likely remain challenging until year-end, it has been offset by a record March as veterinarians stocked up on essential medicines."
Dechra ends its financial year on June 30.
It plans to place 5.1 million of its shares, about 5% of its capital, through a bookbuild.
It fell short of offering a placing price for now. Its shares closed 1.0% higher at 2,757.36 pence each in London on Wednesday.
Based on its closing price, the placing would secure Dechra GBP141.5 million.
"The current financial year has been busy for Dechra operationally and in terms of acquisition activity. The company expects to have spent roughly GBP180 million by the end of the financial year, or shortly thereafter," Dechra said.
"The placing is being conducted to allow Dechra to maintain a prudent balance sheet, whilst retaining the flexibility to capitalise on the company's well established and proven four key growth drivers: portfolio focus; pipeline delivery; geographic expansion; and acquisition."
By Eric Cunha; [email protected]
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