Animalcare Group (ANCR) Investor Update summary

Strategic priorities and business overview

• Focus on organic growth, inorganic expansion through M&A and licensing, and new product development, supported by a strong balance sheet and customer-focused team of 220 people.

• Operates in seven countries with direct sales and exports to 40 countries, maintaining a profitable, cash-generative business.

• Recent leadership change with a new Non-Executive Chair experienced in M&A, enhancing business development capabilities.

Financial performance and trading update

• Organic revenue grew 5% at actual exchange rates and 7% at constant rates, in line with top animal health peers.

• Gross margins improved due to sales mix; cash conversion significantly increased, targeting 85%-90% for the year.

• GBP 33 million cash in the bank post-disposals, with refinanced bank facilities extending to March 2029.

• EPS slightly down due to higher UK tax rate and profit mix; revenue for H1 around GBP 37 million.

Segment performance and product highlights

• Strong growth in flagship products Plaqtiv+ and Daxocox, both high-margin brands with expanding indications and territories.

• Production animal business grew 14.3%, mainly in Southern Europe; equine segment up 20%, led by Danilon.

• Companion animal segment flat in H1 due to supply disruptions but expected to return to mid-single digit growth for the full year.

• Portfolio increasingly weighted toward novel and long-term licensed products, with recent launches accounting for about 10% of revenue.