Dechra Pharmaceuticals records rise in revenues and profits

Dechra Pharmaceuticals raised its dividend by 15.1 per cent as the company achieved higher revenues and profits during the second half of 2012.

Dechra Pharmaceuticals raised its dividend by 15.1 per cent as the company achieved higher revenues and profits during the second half of 2012.

The veterinary medicines company returned an interim dividend per share of 4.34p, compared to 3.77p for the same period a year earlier.

Group revenues climbed 20.4% year-on-year to £252.2m for the half year while profits before tax soared 29.25 to £11.5m.

Results were driven by strong performance of licensed branded veterinary products in specialist pet diets in key segments in Europe and the US.

Contract manufacturing saw double digit sales growth while the group's services segment realised solid revenues and a modest improvement in operating margin.

Dechra began to see rewards from the successful integration of Eurovet Animal Health which the company acquired last May. Eurovet is a Netherlands-based business which operates in the companion animal pharmaceuticals and farm animal pharmaceuticals markets.

"The first phase of the integration has progressed in line with our strategy and is delivering the expected cost and revenue synergies," the company said.

Net borrowings were up £102m at the end of the year, compared to £87m at June 30th and £46.1m at the end of 2011.

Operating profits jumped 37.3% to £15.1m while basic earnings per share increased 6.9% to 9.91p.

The firm's outlook for the year ahead was positive as trading was expected to remain robust. However, the company said it was cautious given the economic environment, particularly in European markets.

Dechra said bad weather also hit sales in the service sector in January but anticipates the segment will bounce back.

"The group continues to deliver its strategic objectives; with additional synergies from the Eurovet acquisition, new product introductions, improved efficiency and international expansion we remain well positioned to maintain our strong growth."

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

The Bank of England should create a "Bitpound" digital currency and take the world by storm
Bitcoin

The Bank of England should create a "Bitpound" digital currency and take the world by storm

The Bank of England could win the race to create a respectable digital currency if it moves quickly, says Matthew Lynn.
18 Oct 2020
Negative interest rates and the end of free bank accounts
Bank accounts

Negative interest rates and the end of free bank accounts

Negative interest rates are likely to mean the introduction of fees for current accounts and other banking products. But that might make the UK bankin…
19 Oct 2020
What would negative interest rates mean for your money?
UK Economy

What would negative interest rates mean for your money?

There has been much talk of the Bank of England introducing negative interest rates. John Stepek explains why they might do that, and what it would me…
15 Oct 2020