Animalcare Group plc - Media Contacts

Strong finances

Financial sustainability through revenue growth, cash conversion, EPS growth and EBITDA margin growth

Revenue growth

Key initiatives

Focus on segments and products with highest potential
New product launches
Leverage strengths across all our direct markets
Maximise opportunities in other high growth markets through partnerships or selective acquisition

Progress

New product sales of £2.2m (2019: £1.8m)
Fast growing contribution from Italy
c3.2% like-for-like growth from top 40 products in base portfolio

2021 priorities

Continue to scale up in fast-growing countries
UK and Belgium return to growth
Successful launch of Daxocox and STEM biofilm range in H2

Cash conversion and net debt

Key initiatives

Optimise inventory
Tax efficiency
Net debt reduction

Progress

Strong underlying cash conversion of 102.9%
Strong underlying cash conversion of 102.9%
£13.6m net debt; reduced by 24% over course of 2020
Net debt to underlying EBITDA leverage ratio further reduced to 1.1 times

2021 priorities

Maintain strong cash conversion focus to provide investment for growth strategy
Maintain EBITDA leverage in the range of 1 to 2 times

Underlying EBITDA margin and EPS growth

Key initiatives

Focus on higher margin products
Operating efficiency and leverage

Progress

Low margin tail products reduced to around 200 (c330 at time of merger)
Underlying EBITDA margin 17.2% reflecting decisive management of SG&A costs and increased investment in people, business development and pipeline
Underlying EPS of 10.6 pence

2021 priorities

Investment in new product launches and other growth opportunities while maintaining focus on operational efficiency

Key leadership

Organisation for success; leadership strength and core capabilities

Attract, retain and develop talented people

Key initiatives

Build leadership capabilities
Align reward to performance
One-team culture
Drive effective communication and collaboration
Improve diversity

Progress

11% improvement in annual engagement survey score
Strengthened business development and sales and marketing capabilities
Regular pulse surveys during pandemic, supporting well-being
Performance management process rolled out

2021 priorities

Implement actions from employee engagement survey
Improve two-way employee communication
Implement Group-wide talent management programme
Live our new brand

Organisation for growth

Key initiatives

Reorganisation to drive growth agenda with clear leadership accountabilities

Progress

Launched new structure to support delivery of growth strategy (February 2021)
Creation of streamlined Senior Executive Team (SET)

2021 priorities

Complete recruitment of SET roles
Embed new structure and ways of working

Growth portfolio

Focused portfolio in key therapy areas in growing market segments

Focus on existing core brands that generate sustainable growth and margins

Key initiatives

Improve quality of portfolio; focus on smaller number of bigger selling, higher margin brands

Progress

100 smaller tail products removed since merger: now around 200 brands
£2.2m of new product sales with launches of Procanicare, Doxycare and Metrocare helping to reinforce base portfolio
Strengthened sales and marketing excellence

2021 priorities

Drive growth in Companion Animals and maintain strong presence in Production Animals
Continue to reduce tail with long-term portfolio target of c150 brands while maintaining or growing revenues
Continued investment in product launch capability

Business development

Work with partners to build a pipeline of products that meet our criteria for growth

In-license or acquire products and develop network partnerships

Key initiatives

In-license or acquire innovative pipeline or market-ready products
Establish Animalcare as partner of choice, especially for companies selling into Europe
Build partnerships to exploit growing global markets

Progress

STEM joint venture gives access to companion animal biofilm-targeting products today and influence over development of products in the future

2021 priorities

Continue to pursue value-creating partnerships and in-licensing opportunities
Recruit and onboard Strategic Product and Business Development Director to continue capability build
Complete carve-out of UK Identibase business to increase management focus and facilitate growth opportunities

Innovative pipeline

Building a pipeline of novel and differentiated products

Launch new products and develop differentiated and innovative pipeline of products for the future

Key initiatives

Strengthen internal pipeline of differentiated products through partnerships, in-licensing and acquisitions
Prioritise and accelerate in-house R&D projects

Progress

CVMP recommends approval for Daxocox in EU (February 2021)
Initiation of life cycle management (LCM) programmes for Daxocox to support new indications and geographical expansion
Completed development of branded generics pipeline to reinforce base portfolio

2021 priorities

Increase investment in pipeline versus 2020
Execute clinical and regulatory programme for Daxocox LCM
Drive launch of Daxocox and STEM products
Identify potential development opportunities from STEM joint venture

Media Contacts

Journalists with enquiries about Animalcare Group should email