Animalcare Group plc
("Animalcare" or the "Group" or the "Company")

Half Year Results for the six months ended 30 June 2025

Strong first-half performance, delivering double-digit revenue and profit growth with continued delivery against strategic priorities

30 September 2025. Animalcare Group plc (AIM: ANCR), the international animal health business, announces its unaudited interim results for the six months ended 30 June 2025.

Animalcare is pleased to report a positive first half performance with continued strategic delivery and significant growth in both revenue and profit, underpinned by the successful acquisition and integration of Randlab. Strong cash generation has enabled further investments in both innovation and strategic opportunities to drive growth.  

Outlook

Based on the first half performance and trading post period end, the Board is confident that full year results will be in line with expectations. The Group continues to make good progress optimising its existing portfolio and developing its innovative pipeline to position the Company for accelerated sustainable growth in the medium to long-term.

Financial highlights

^1.         The Group presents a number of non-GAAP Alternative Performance Measures (APMs) which exclude non-underlying items. APMs are calculated in line with the Group's accounting policies and therefore may not be directly comparable with other companies.

^2.         Proforma leverage is a measure of the Group's net debt compared to its earnings before interest, tax, depreciation and amortisation, adjusted to include the last 12 months' unaudited results from Randlab as if it had been part of the Group since 1 July 2024.

Strategic and Operational highlights

Flagship brands continuing to deliver double-digit growth

Increased scale and international reach through acquisition 

Building new product pipeline

Animalcare's Chief Executive Officer, Jenny Winter, commented: "Our positive first half performance was characterised by strong commercial execution and progress against our strategic priorities. Revenues and margins materially benefited from Randlab, our Australian equine business acquired on 3 January 2025, while our key brands, Plaqtiv+ and Daxocox, again recorded double-digit growth. Accelerated activity and investment in building our development pipeline provides further opportunities to meet the increasing needs and growing global demand for innovative treatments in the animal health market. Looking to the rest of 2025, we are confident in a continued strong trading performance and strengthening medium to long-term outlook."

Analyst briefing/webcast

A briefing for analysts will be held at 09:00 BST on Tuesday 30 September 2025 via Zoom. Analysts wishing to join should contact animalcare@almastrategic.com.

A briefing for retail investors will be held at 16:00 BST on Monday 6 October 2025 via the Investor Meet Company platform. Investors wishing to join should register here: https://www.investormeetcompany.com/animalcare-group-plc/register-investor

A copy of the analyst presentation is available on the Group website using the link below: https://www.animalcaregroup.com/investors/document-library/results-and-presentations/

Enquiries

About Animalcare

Animalcare Group plc is a UK AIM-listed international veterinary sales and marketing organisation. Animalcare operates in seven European countries as well as Australia, New Zealand and the UAE and exports to approximately 40 countries in Europe and worldwide. The Group is focused on bringing new and innovative products to market through its own development pipeline, partnerships and via acquisition.

For more information about Animalcare, please visit www.animalcaregroup.com

Chair's Statement

I am pleased to report a strong first-half performance for Animalcare, delivering robust financial results, including double-digit topline growth, and continued execution against our strategic priorities.

The Group's significant revenue and profit growth reflects steady organic progress combined with the successful integration of Randlab. Acquired on 3 January 2025, the Australia-based equine business contributed meaningfully to our sales and profits, with our Equine portfolio revenues more than doubling in the period. Organic growth was delivered across our Companion Animals and Production Animals segments underpinned by the encouraging performance of key brands, such as Daxocox and our dental range encompassing Orozyme and Plaqtiv+, with growth supported by innovative launches of products, such as the ProAuris and ProAtop microbiome treatments.

Underlying EBITDA rose by approximately 40% demonstrating our strategic focus on higher margin, differentiated products within our portfolio and the significant profit contribution from Randlab. Cash conversion remains healthy and in line with our full-year guidance, and we continue to maintain a strong balance sheet with leverage at 0.7 times proforma EBITDA.

The Group's continuing solid financial platform provides the firepower for M&A and R&D activity, illustrated during the period by our strategic equity investment in InVetro Pty Ltd. Our initial 25% stake in the Australia-based companion animals business builds on our acquisition of Randlab and further strengthens our position in the global veterinary market, particularly in the Asia-Pacific region, reflecting our commitment to expand our geographic footprint.

We continue to focus on developing our pipeline of innovative new treatments, typically through partnerships with companies seeking to bring their novel technologies to market. Among recent developments in R&D was our post-period end acquisition of the VHH NGF programme and related assets, previously licensed to Animalcare from Orthros Medical. We are now advancing this programme through collaboration with 272Bio, specialists in antibody technology. In an additional licencing and research collaboration, the Group is also partnering with 272Bio on an early-stage programme for the development of an innovative treatment for sweet itch, a common allergic skin condition with a significant unmet need in the equine market.  

Looking ahead for the full year, we believe the Group is well positioned to build on the momentum of the first half. We anticipate continued growth from our core brands and further contribution from Randlab as we expand its commercial reach. While potential currency headwinds from higher than anticipated Sterling appreciation are expected to persist, our diversified geographic footprint and strong operational execution provide resilience.

Strategically, we remain focused on delivering our priorities: enhancing our product portfolio, accelerating pipeline development, and pursuing value-generating partnerships and acquisitions. With a clear roadmap and a strong platform for growth, the Board is confident in the Group's ability to deliver sustainable value for shareholders in the second half and beyond.

The Board has declared an interim dividend of 2.2 pence per share, up 10% on the prior period. The decision to increase the interim dividend by 10% relative to EPS growth of 67% reflects our targeted approach to capital allocation. We believe retaining capital to prioritise investment in our R&D pipeline, aiming to spend c.5% of revenue per year, is the most effective way to drive long-term growth, while preserving balance sheet flexibility to pursue inorganic opportunities. This approach ensures we reward shareholders today, while building sustainable value for the future.

Finally, I would like to extend my personal thanks to our shareholders for their continuing support while recognising the contribution of the entire Animalcare team for their hard work and commitment underpinning the results and strategic progress we see today.

Ed Torr, Non-Executive Chair

Business and Financial review

Strong trading performance and execution against growth strategy

The first half of the year has been marked by strong execution and strategic progress. The acquisition of Randlab has proven transformational, accelerating our growth and enhancing our profitability. With our growing international footprint, continued growth in our leading brands, and an increasingly attractive product portfolio and pipeline, we are confident in our ability to build on this momentum in the second half.

Strong trading

Total revenues were up 18.5% at AER (20.8% at CER), reflecting the marked beneficial effect of the successful acquisition and integration of Randlab. In Companion Animals, flagship brands, such as Daxocox and Plaqtiv+, delivered strong double-digit momentum, fuelled by the addition of two new tablet strengths to the Daxocox range and an increased focus on sales and marketing, while the Production Animals portfolio also contributed positively, reflecting ongoing demand for several of the Group's leading brands. Notwithstanding these positive dynamics, overall organic growth in Companion Animals was tempered by the unexpected introduction of antibiotic consumption surveillance from January 2025 in Spain. We are in active discussions with regulatory authorities regarding these challenges, while continuing to simultaneously target other portfolio areas for additional growth opportunities. Equine performed very strongly, benefitting from the significant contribution from Randlab.

Randlab proving a strategic success

The integration of Randlab into the Group is proceeding well, and in some cases ahead of expectations. The progress and performance in the first half are testament to the leadership team brought in to oversee the business and their strong collaboration with the highly experienced local team as well as their new Animalcare colleagues. Through working together, opportunities were identified to grow the business, enabling the acceleration of investment plans within Australia and into new markets to scale commercially, including the UAE, while at the same time nurturing the local entrepreneurial culture that defines Randlab and makes it a trusted choice with its loyal customer base.

Continued strategic investment for long-term growth

Inorganic growth is an important pillar of the Group's growth strategy. Supported by the Group's strong balance sheet, Animalcare continues to pursue inorganic opportunities that can generate value-creating growth, through M&A, in-licensing and partnerships, and we have a healthy pipeline at various stages of assessment, undergoing our disciplined assessment process.

Following the acquisition of Randlab, Animalcare has continued to build scale internationally, notably via the 25% strategic equity investment in the Australian development-stage companion animal business, InVetro Pty Ltd, in June 2025, expanding Animalcare's presence in the growing Asia-Pacific veterinary market. With a portfolio of pharmaceutical marketing authorisations and licences enabling immediate and near-term revenue generation, and a pipeline of products tailored to the Australian market, the Board is confident InVetro is poised for rapid growth over the next five years.

New product development

Central to the Group's growth strategy is building a balanced pipeline of new products, to replicate and expand the success of our novel products, Daxocox and Plaqtiv+, and meet the needs of the animal health market. R&D activities and investment have accelerated across a range of opportunities (notably Sweet Itch, VHH NGF and E6132) which the Board believes will drive transformative growth in the medium to long-term.

In total, the Group now has five major projects in the pipeline at different stages with large market opportunities (in excess of c.£100m) and unmet need. Estimated Peak Year Sales are in excess of £15m for each, considerably larger than the Group's current largest products. These programmes have been selected due to their strong fit with the Group's strengths, expertise and commercial relationships across the Equine and Companion Animal markets. All are the Company's own IP, other than Sweet Itch which is in-licenced.

On 22 August 2025, the Group announced the acquisition of the VHH NGF antibody programme and related assets for a net cash consideration of €0.7m, which had previously been licensed from Orthros Medical in March 2022. This provides Animalcare full ownership and control of the intellectual property and associated assets, enabling independent development working alongside 272Bio and commercialisation of the technology to support expansion of the Group's pain portfolio. The Group is advancing the lead equine asset, and early results reinforce the Board's confidence in the potential of the programme.

The Group has also recently entered into a licence agreement with 272Bio to develop a novel biological treatment for a common equine skin condition (sweet itch) that affects an estimated c.8% of horses globally. The deal structure includes an initial commitment of c.£2.0m to fund preclinical research which will be expensed over the next 18 - 24 months as we work towards achieving proof of concept.

Lifecycle management activities of key brands are ongoing, expanding their market reach. In late July, Daxocox received European Union approval for use in a peri-operative setting, adding a new indication for the long-acting NSAID, enabling broader market access and reinforcing the Group's growth ambitions for the Daxocox franchise. Meanwhile, the Group continues to seek regulatory approval for the use of Daxocox in new territories, with approval granted in Japan post period end, as well as exploring the opportunity to launch in the US within the next few years. 

Post period end, Animalcare has appointed Dr Hafid Benchaoui as Chief Strategy and Science Officer, to strengthen the development of our new product pipeline. He will lead R&D at both a strategic and technical level and join the Senior Executive Team. Previously Head of Global Research and Development at ECO Animal Health, Hafid brings extensive international animal health experience to the role.

Financial review - strong growth at higher margins

We delivered a positive overall financial performance, with strong revenue growth, increased gross margins and continued strong cash generation.

A summary of the underlying financial results for the first half of 2025 is shown below. The Group presents a number of Alternative Performance Measures (APM's) which the Directors believe allows investors to better understand the underlying business and trading performance by excluding certain non-underlying items as set out in note 3. The consolidated results are split between existing (Animalcare Europe) and acquired (Randlab) segments as presented in note 4.

Total revenue increased by 18.5% (20.8% at CER), with underlying EBITDA up 39.5% (43.4% at CER), benefitting from the significant contribution from Randlab, partly offset by adverse movements in foreign exchange translation. Group like-for-like sales for the period compared to H1 2024 grew by 1.3% (2.4% at CER) in trading conditions which were varied across our end markets.

Revenue

Revenue performance by product category is shown in the table below:

Companion Animals

Revenue within Companion Animals increased by 1.7% versus the prior period to £24.9m. This included strong double-digit growth in Daxocox (c.39%) and Plaqtiv+ (c.30%). This positive momentum was partially offset by the unexpected regulatory monitoring of the use of topically applied antibiotics, impacting the sales of certain products such as Conofite. The Group is actively engaging with regulatory authorities to address these challenges, while simultaneously targeting other portfolio areas for additional growth opportunities.

Production Animals

Production Animal revenue growth returned to more typical demand patterns, increasing by 1.4% during a period marked by changes within our distribution partner supply base and end markets. This follows a particularly strong first half in FY24, which saw sales rise by 14.3%. Growth was primarily supported by several larger-selling brands, including two owned brands within our Top 10 products. Looking ahead, the Group remains focused on leveraging existing expertise and its established sales footprint. This includes pursuing new opportunities and partnerships to continue expanding within this important area of our business.

Equine
Revenue within Equine increased by 173.1% to £9.9m, compromising revenue from the existing portfolio of £3.5m and acquired revenue from Randlab of £6.4m. Randlab delivered very strong like-for-like organic growth of approximately 14.0% at CER (c.7.0% at AER), in line with expectations at CER for the first half taking into account phasing of sales orders during June and July 2024. This strong performance was principally driven by growth within the core portfolio and expansion of export market sales. Sales of the ulcer suite of products, the largest in the Randlab portfolio including Ulcershield, a new Top 10 product for the Group, outperformed the broader market. Within the existing portfolio, continued growth in Danilon (up 8.0%) helped to offset a decline in the equine fluids range, which was affected by market changes and competition.

Underlying EBITDA and underlying earnings per share

During the period, the Group's underlying EBITDA notably improved to £9.2m (H1 2024: £6.6m). This 39.5% growth was primarily driven by Randlab's significant contribution to EBITDA of £3.0m, underpinned by its high gross margins, further enhancing the Group's overall profitability and leading to a 310bps improvement in the underlying EBITDA margin to 21.1%.

Gross margins improved by 140bps to 57.9%. This performance predominantly reflects the benefits of the acquired Randlab equine portfolio, which generated gross margins of 73.0% in the period, in line with expectations after taking into account reclassification of certain costs from operating expenses to cost of goods to align with Group accounting policies. On a like for like basis, gross margins decreased to 55.3% (H1 2024: 56.5%) reflecting adverse sales mix, principally within Companion Animals, as well as unfavourable foreign exchange translation effects on our Euro denominated gross profit. The Group continues to address input cost inflation (COGS) through targeted pricing strategies wherever possible.

Underlying overheads, defined as gross profit less underlying EBITDA, increased during the first half to £16.1m (H1 2024: £14.2m), of which £1.7m represent additional operating costs associated with Randlab. As we have progressed with the integration and engagement with the local management team, our confidence in the growth opportunity has been underpinned, leading to accelerated investment in our commercial infrastructure within Australia, and post period end, the UAE. The balance of £0.2m principally encompasses organic investment in people costs alongside good control of our overall SG&A costs.

Basic underlying continuing EPS increased by 67.2% to 9.7 pence (H1 2024: 5.8 pence) primarily driven by the strong profit contribution from Randlab, higher finance income largely resulting from unrealised foreign currency translation exchange gains and a decrease in the underlying effective tax rate to 22.3% (H1 2024: 27.0%; FY24: 18.9%). These positive factors were partially offset by the dilutive impact of the equity raise completed in December 2024. 

Reported results and non-underlying items

Reported Group profit for the period after accounting for non-underlying items was £3.3m (H1 2024: £18.8m), with reported earnings per share at 4.7 pence (H1 2024: 31.2 pence).

Non-underlying items totalling £4.6m relating to profit before tax have been incurred in the period, as further described in note 3. These principally comprise:

Total non-underlying items after tax amounted to £3.4m, versus £15.2m profit in the prior period which included a £13.7m gain on disposal of Identicare and £3.4m profit on sale of the Group's investment in STEM Animal Health Inc.

Strong cash generation and financial position

During the first half of the year, the Group extended its track record of generating strong underlying operating cash flows, with cash conversion at 70.6% (H1 2024: 78.3%), enabling continuing investment in initiatives for future growth while maintaining our strong balance sheet. Our capital allocation is closely aligned to our three strategic priorities: investment in organic growth, carefully selected and value-enhancing acquisitions, and increasing the number of novel and differentiated products in our pipeline.

We are on track to deliver our targeted cash conversion in the region of 80%, the achievement of which will be largely dependent on trading patterns towards the end of the second half and any decisions the Group may take in connection with strategic stock cover to support surety of supply, hence sales, during 2026.   

Underlying net cash flow generated by our operations increased to £6.5m (H1 2024: £5.4m) as shown in the table below:

Net working capital increased by £1.6m versus prior period, reflecting good working capital control, notably within our inventories which reduced by £0.8m. This compares to a £1.7m increase in inventories during H1 2024 due to the normalisation of the significant inventory reduction during FY23. The balance of the net working capital movement largely reflects a £2.0m decrease in payables driven by trading and inventory buying patterns towards the period end. Cash tax payments were £0.7m higher compared to 2024, largely reflecting Randlab's payments on account.

Non-underlying cash items principally comprise £1.0m acquisition and integration costs relating to Randlab and £0.1m restructuring expenses in our European operations.      

As noted above, our balance sheet position remains strong as summarised below:

*prior to accounting for IFRS16 leases

Net capital expenditure of £1.3m (H1 2024: £1.3m) largely comprised investment in our product development pipeline and IT business systems and infrastructure.

During 2025, in line with our capital allocation priorities, we targeted to increase investment in R&D spend to approximately 5% of revenue. While at the half year stage the run-rate is below this target, we expect spend to accelerate in the second half. Post period end, we have acquired the VHH NGF programme from Orthros for a net cash consideration of €0.7m and expect to make further investments during H2 in both this programme and Sweet Itch as well as continuing to allocate capital to product lifecycle management to broaden the value of certain existing products.

The Group delivered strong free cash generation before Randlab acquisition costs and after accounting for lease costs, of £4.3m (H1 2024: £3.8m including £0.4m Identicare contribution), leading to a £1.1m reduction in net debt which ended the period, pre IFRS 16 leases, at £7.9m (31 December 2024: £9.0m). Net debt including IFRS16 lease liabilities, was £11.1m (31 December 2024: £11.5m) with leverage at c.0.7 times proforma underlying EBITDA. As of 30 June 2025, the Group had total credit facilities of €52.8m, provided by a syndicate of four banks, with all facilities set to mature on 31 March 2029. These facilities include a committed €44.0m revolving credit facility (RCF) and a €8.8m acquisition line, with €32.1m of the RCF undrawn. Including net cash balances, total headroom on the Group's RCF facilities was approximately £37.4m at the date of the statement of financial position. As at 30 June 2025 and throughout the financial period, all covenant requirements were met with significant headroom across all three measures. 

Dividends

The Board is pleased to declare an interim dividend of 2.2 pence per share, up 10% on the prior period. The interim dividend will be paid on 14 November 2025 to shareholders whose names are on the Register of Members at close of business on 17 October 2025. The ordinary shares will become ex-dividend on 16 October 2025. The Board continues to closely monitor the dividend policy recognising the need to prioritise investment in our R&D pipeline while preserving balance sheet flexibility to pursue inorganic opportunities. This approach ensures we reward shareholders today while building sustainable value for the future.

Summary and outlook

Animalcare recorded a positive performance in the first six months, underpinned by the successful acquisition of Randlab and significant progress in the execution of our strategic priorities. We anticipate continued growth in the second half of the year from our core brands and further contribution from Randlab as we expand its commercial reach. Based on this performance and positive trading post period end, the Board is confident that full year results will be in line with expectations.

As we look further ahead, the Group's strong cash generation provides the basis for increased investment in new product development, strengthening our portfolio and providing the opportunity for transformative growth acceleration over the longer term. Our five major pipeline projects all have considerable market opportunity and unmet need with potential peak sales for each project significantly larger than the Group's current largest product. We also remain focused on identifying and pursuing further partnerships and M&A to accelerate the delivery of our strategy and build scale. With these strong foundations in place, we are confident we have the platform from which to build a successful, innovative animal health business in our chosen markets.

Jenny Winter                                                   Chris Brewster

Chief Executive Officer                                Chief Financial Officer

Condensed consolidated income statement
(unaudited)

In order to aid understanding of underlying business performance, the Directors have presented underlying results before the effect of exceptional and other items. These exceptional and other items are analysed in note 3.

Condensed consolidated statement of comprehensive income
(unaudited)

Condensed consolidated statement of financial position

Condensed consolidated statement of changes in equity
Unaudited

Reverse acquisition reserve

Reverse acquisition reserve represents the reserve that was created upon the reverse acquisition of Animalcare Group plc.

Other reserve

Other reserve relates to currency translation differences. These exchange differences arise on the translation of subsidiaries with a functional currency other than sterling. The increase in the charge through other comprehensive income compared to the prior period reflects exchange differences arising from monetary items that form part of the Group's net investment in a foreign operation.

Condensed consolidated cash flow statements
Unaudited

Condensed consolidated cash flow statements (continued)
(unaudited)

Notes to the consolidated interim report

1          General information

Animalcare Group plc ("the Company") is a public company limited by shares incorporated in the United Kingdom under the Companies Act 2006 and is domiciled in the United Kingdom. The address of its registered office is Moorside, Monks Cross, York, YO32 9LB. The condensed set of financial statements as at, and for, the six months ended 30 June 2025 comprises the Company and its subsidiaries (together referred to as the "Group"). The nature of the Group's operations and its principal activities are set out in the latest Annual Report.

2         Basis of preparation and material accounting policies

This interim financial information has not been audited nor reviewed and does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The information has been prepared in accordance with the recognition and measurement requirements of UK adopted international accounting standards (IFRS's) as adopted by the Group and applied described in the annual report and accounts for the year ended 31 December 2024. The comparative information for the year ended 31 December 2024 does not constitute statutory accounts however is based on the statutory accounts for that year, which have been filed with the Registrar of Companies and are available on the Group's website www.animalcaregroup.com. The auditors, Grant Thornton UK LLP, reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The consolidated financial statements are presented in thousands of pound sterling (£k or thousands of £) and all "currency" values are rounded to the nearest thousand (£000), except when otherwise indicated.

The Interim Report for the six months ended 30 June 2025 was approved by the Board of Directors and authorised for issue on 29 September 2025.

The condensed consolidated interim financial information for the six months ended 30 June 2025 has been prepared in accordance with UK-adopted international accounting standards, using accounting policies consistent with those applied in the Company's annual financial statements for the year ended 31 December 2024. Key estimates, judgments, and assumptions remain consistent with prior periods, except for those relating to cash generating units, goodwill impairment, and externally acquired intangible assets. These areas have been reassessed following the Randlab acquisition and will be discussed in more detail in the Group's Annual Report for the year ending 31 December 2025. The principal risks facing the Group remain unchanged. For further information, please refer to the financial statements for the year ended 31 December 2024. As permitted, this interim report has been prepared in accordance with the AIM rules and not in accordance with IAS 34 "Interim financial reporting". While the financial figures included have been recognised and measured in accordance with IFRSs this announcement does not contain sufficient information to constitute an interim financial report as defined by IAS 34.

The accounts have been prepared on a going concern basis, the justification for which is set out in the Going Concern section below.

New standards, interpretations and amendments adopted by the Group

The following new Standards, Interpretations and Amendments issued by the IASB and the IFRIC as adopted by the European Union are effective for the financial period:

·      Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability 

The adoption of these new standards and amendments has not led to major changes in the Group's accounting policies.

New and revised standards not yet adopted

The Group elected not to early adopt the following new Standards, Interpretations and Amendments, which have been issued by the IASB and the IFRIC but are not yet effective as of 30 June 2025, and/or not yet adopted by the European Union as of 30 June 2025. The Group intends to adopt these standards and interpretations if applicable, when they become effective.

Going Concern

Banking Facilities and Covenants

As of 30 June 2025, the Group had total credit facilities of €52.8m, provided by a syndicate of four banks. These facilities include a committed €44.0m revolving credit facility (RCF) and a €8.8m acquisition line, which is restricted to acquisition purposes and cannot be used for operational funding.

The loans carry a variable, EURIBOR-based interest rate with an applicable margin of either 1.26% or 1.50%. The RCF features bullet repayment at maturity in March 2029, while the acquisition line is amortised through quarterly payments, also concluding in March 2029.

The Group manages its banking arrangements centrally through cross-currency cash pooling. Funds are swept daily from its various bank accounts into central bank accounts to optimise the Group's net interest payable position.