21st Oct 2020 12:11
(Alliance News) - Shares in ECO Animal Health Group PLC surged on Wednesday as it said revenue for the first half of 2020 was higher than prior year and management expectations, driven by the strength in Chinese markets.
The stock was trading 19% higher at 246.60 pence each midday Wednesday in London.
The Surrey-based pet and livestock pharmaceuticals company stated strength in the Chinese market was supported by the rebuilding of pig herds and the high price for pork. Revenue outperformance in other markets such as the US offset weakness in India and Southeast Asia.
"We are delighted with the continuing recovery from African swine fever in China and the improved revenue performance of the group and we look forward with cautious optimism to this trend continuing during the second half of this financial year. If this business performance is sustained, we look forward to reporting full year revenue in excess of current market expectations," said Chief Executive Marc Loomes.
ECO Animal added investment in research & development and the pipeline of new product development during the first half has resulted in positive outcomes, noting that these include two porcine respiratory and reproductive syndrome virus vaccine development authorisations and licensing deals.
Turning to its financial 2020 statements, the company highlighted steady progress, stating it is targeting the release of its results for the year ended March 31, 2020 on or around the end of November. It explained the additional difficulties arising from auditing its international operations during the Covid-19 pandemic restrictions and against the backdrop of new auditors and new accounting policies adopted, resulted in an extension to the reporting deadlines.
By Ife Taiwo; [email protected]
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