Animalcare Group (ANCR) H2 2024 earnings summary

Executive summary

• Revenue from continuing operations rose 4.9% to £74.2m, with growth across all product categories and strong volume contribution.

• Underlying EBITDA was £11.6m, broadly flat year-over-year, reflecting ongoing investment in people and marketing.

• Cash conversion improved to 103.1%, and net debt at year-end was £9.0m (excluding leases), following a transformative acquisition and disposals.

• The acquisition of Randlab for £59.7m (completed January 2025) significantly expands the Equine segment and geographic reach.

• Disposal of Identicare and STEM non-core assets generated material value and funded growth initiatives.

Financial highlights

• Revenue: £74.2m, up 4.9% year-over-year (7.2% at CER).

• Underlying EBITDA: £11.6m, down 0.4% from prior year.

• Gross margin: 55.6%, down 1.2 percentage points due to product mix and input inflation.

• Basic underlying EPS: 11.0p, up 1.0% year-over-year.

• Net debt: £9.0m at year-end (excluding leases); leverage at 1.0x underlying EBITDA.

• Final dividend proposed: 3.0p per share; total for year: 5.0p per share.

Outlook and guidance

• Randlab acquisition expected to be earnings accretive by over 20% in 2025.

• Continued focus on organic and inorganic growth, with strong balance sheet and £20m firepower post-acquisition.

• R&D investment to increase to ~5% of revenue, targeting sustainable innovation.

• Cash conversion expected to normalize to 80–90% in 2025, reflecting Randlab integration.