On 25 March 2020, the Animalcare Group announced the deferral of its final dividend for 2019, preserving cash of £1.4m, with the aim of supporting financial strength and providing a platform to continue progressing opportunities during the global COVID-19 pandemic. They noted that the decision would be reviewed later in the financial year once they had more clarity about the ongoing effects of the pandemic business, at which time any decision will consider what actions are in the best interest of long-term shareholder value.
Other financial highlights include:
Resilient financial performance at higher end of the Board's range of pandemic scenario modelling
Revenue £34.5m (2019: £36.1m), a decline of 4.4% (4.8% at CER) compared to prior year period due to COVID-19. Production Animals sales increased by 13.1%, partially offsetting the negative impact of government pandemic controls on the Companion Animals sector
Underlying EBITDA down 2.4% on the prior year, reflecting cost efficiencies generated in 2019 and decisive realignment of SG&A spend during Q2 2020
Cash conversion rate of 56.9% (2019: 92.3%) for first half as a result of COVID-19 disruption and previously announced strategic stock build in relation to manufacturing transfers
Net debt £18.1m as of 30 June 2020 (£17.8m at 1 January 2020), adversely impacted by currency variations
Underlying basic EPS 5.9 pence (6.4 pence for first half 2019)