Veterinary firm Dechra sees revenue rise
Animal medicine maker Dechra, which has a site in Shropshire, saw revenue increase by 11 per cent in the six months to the end of December.
The veterinary firm, which has a key operation at Sansaw Business Park near Shrewsbury, saw revenue rise to £194.1 million, compared with £172.6m 12 months earlier.
Underlying operating profit growth increased by 22 per cent to £47.4m.
A statement on behalf of the group said: "The group has delivered a strong performance throughout the period, driven by solid revenue growth in our European Pharmaceuticals segment and by excellent revenue growth in our North American Pharmaceuticals segment."
It said all product categories delivered growth, including Companion Animal Products (CAP) at 18.4 per cent, equine at 19.3 per cent, Food Producing Animal Products at 3.2 per cent and nutrition at 2.9 per cent.
It said the operating profit performance was enhanced by "operational leverage, prudent cost control and efficiency gains" within the manufacturing and supply chain.
CEO Ian Page added: "The group has delivered a strong performance during the period.
"The board remains confident that we can continue to implement our strategy and meet our expectations for the current financial year, and deliver further growth in the future."
Dechra employs more than 20 people at Sansaw to the north of Shrewsbury, where its regulatory team works on getting new products into the UK market. The Shropshire base for the firm also contains a marketing operation.
Last month it emerged Dechra is to buy the Netherlands-based AST Farma and Le Vet for a total of 340 million euros in a cash-and-share deal to boost its presence in Europe.
The two firms have worked together, Dechra said, to develop a strong product portfolio and a network of marketing partners across Europe. Together, they hold around 90 product registrations.
The debt-free, cash-free deal will see Dechra paying about 75 per cent in cash and 25 per cent in new Dechra shares, subject to a two-year lock-in, the firm said in a statement.
AST Farma is an animal pharmaceuticals firm that specialises in generic products, while Le Vet focuses on the European markets outside of the Netherlands.
Dechra plans to raise about £100m through a placing of 5.1 million new ordinary shares at 2,050 pence each with institutional investors to fund the deal.
The company will also issue 3.67 million new ordinary shares to the sellers.
