Animalcare is a passionate organisation committed to leading in animal health through innovative and trusted products and services to support the veterinary profession. We care about the well-being of animals and the positive impact that healthy animals have on their owners and society.
Significant improvement in cash performance and reduced net debt
2.6%
£5.8m
Net debt 2019 = £17.8m with net debt: underlying EBITDA leverage ratio at 1.4 times
1.9%
11.3%
(+1.7% adjusted)
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European animal healthcare company operating in companion, equine and production animal markets
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Product sales in 32 European markets through direct commercial presence and partnerships
3.
Supporting the needs of veterinary professionals in our core areas of pain management, dental, dermatology, disease prevention, surgery and microchipping
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Developing a pipeline of novel and differentiated products from external and internal sources
Animalcare is committed to being a responsible member of our community and consider the environmental impact of our operations.
Having the right people, capabilities and engagement across the organisation is fundamental to delivering our strategy and the long-term success of the Group. Our ongoing objective is to create a high performing business driven by a skilled, unified and committed team
As the veterinary market continues to evolve, understanding the needs of our customers enables us to support them as a trusted partner. We continue to work closely with veterinary professionals and other stakeholders to ensure we are aligned with their changing needs.
As the Group does not own any manufacturing assets, it relies extensively on a large base of third-party manufacturers for supply of finished products, whether our own brands or those sold on behalf of our partners via distribution arrangements. We need to maintain trusting relationships with suppliers and partners for mutual benefit and to ensure they are meeting our standards and conducting business ethically.
Trust from our shareholders is key to delivering our strategy as access to capital will be important to the long-term success of our business. We ensure that we provide fair, balanced and understandable information to shareholders, potential investors and investment analysts and work to ensure that they have a strong understanding of our strategy and performance.
We are focusing on the high growth areas of the market including dermatology, dental and disease prevention and moving away from declining and low margin areas.
Geographically we continue to expand our international partners network to take our products to new markets where we do not have the infrastructure or the brands to successfully enter the markets ourselves.
We continue to work closely with our key customer, the vet, to understand their environment and be responsive to the changes. Corporate accounts continue to expand across the continent and we leverage our strong European presence to offer European-wide solutions.
We have in-house experts such as specialist Equine vets, Key Account managers and experienced Animal health marketeers to align with the corporate structures and requirements while still focusing on and understanding the importance of the individual vet, especially in countries with low corporate account penetration such as Germany.
We continue to build on our heritage in the areas of surgery, dermatology and pain by adding the fast-growing area of disease prevention as one of our core focus areas. We expanded our existing pet health range by adding a novel gastrointestinal product to the portfolio that already includes dental and joint supplements and continue to work on future developments or partnerships in this key area.
We are experienced in the use of technology for pet reunification through our Microchip and Identibase business in the UK and are continuing to develop this in line with the new technologies and to look for opportunities to expand in other countries and fully utilise our database.
The diagnostic market is forecast to grow at 8.8% compound annual growth rate (CAGR) from now until 2023 creating a $4bn market. The integration of internet of things (IoT) in pet wearables is expected to have a significant effect on medical treatments and diagnosis of medical problems and contribute to a forecast CAGR of 14.3% for pet wearables up until 2027.
Sales of antibiotics have dropped from 17.0% of the total European market in 2012 to just 12.2% in 2019 and we have reduced our focus on our antibiotics range accordingly.
Number of dogs in the EU
Number of small mammals in the EU
Number of cats in the EU
Number of Equines in the EU
By focusing our resources on the development, supply and marketing of products and services to the veterinary profession, our business model creates value for a range of stakeholders.
Having the right people, capabilities and engagement across the organisation is fundamental to delivering our strategy and the long-term success of the Group. Our ongoing objective is to create a high performing business driven by a skilled, unified and committed team.
We have strong knowledge of the Companion Animal, Equine and Farm Animal markets in which we operate and the regulations that govern them.
The relationships with the individual vets and veterinary groups that are our core customers are key and our sales force has excellent experience and knowledge of their markets and products to support the needs of these customers.
Animalcare operates a portfolio of over 300 brands with particular strengths in our core areas of pain management, dental, dermatology, disease prevention, surgery and microchipping.
Critical to our future growth is the further development of our pipeline.
Our strong financial platform enables us to increase investment and leverage our stronger base to deliver future growth and value to our shareholders.
This diagram represents how our core activities work together to create sustainable profitable growth of Animalcare.
Through our close relationship with stakeholders and our sales and marketing capabilities we are able to sell products to veterinary practices and veterinary groups.
The Board recognises that the long-term success of the Group is enhanced by positive relationships with all stakeholders, including employees, customers, suppliers and shareholders.
Generating strong cash flow enables us to invest in the business to grow, manage our debt, and deliver returns to our shareholders. Trust from our shareholders is key to delivering our strategy as access to capital will be important to the long-term performance of our business.
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Our agility, expertise and local knowledge means we know our markets and are able to adapt to evolving needs.
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We have developed trusted relationships with individual veterinary practices and larger veterinary groups.
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We are increasingly focused on differentiated therapies that can meet the needs of our customers while delivering sustainable above-sector growth.
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We are positioned as a preferred international partner for companies that want to develop new treatments or bring their innovative products into the European market place.
We are pursuing a clear strategy to deliver our goal of above market growth in three to five years and become a leading player in the European animal health market. During 2019 we have made significant progress in all areas, delivering our short-term goals and building our organisation for the future.
The Group’s core areas of strategic focus will be on:
Strong finances
Key Leadership
Growth portfolio
Business Development
Innovative pipeline