Half-Year Report

RNS Number : 9854N
Eco Animal Health Group PLC
04 February 2021
 

ECO Animal Health Group plc (''ECO")

(AIM: EAH)

 

Results for the six months ended 30 September 2020

 

ECO REPORTS A BUOYANT FIRST HALF AND POSITIVE FULL YEAR INDICATIONS

 

HIGHLIGHTS

 

Financials

· Sales at £42.5m (2019 restated*: £28.3m)

· EBITDA at £6.7m (2019 restated*: £1.7m)

· Profit before taxation of £4.5m (2019 restated profit*: £1.1m)

· Profit after taxation of £3.9m (2019 restated profit*: £1.3m)

· Earnings per share of 3.13p (2019: restated Earnings per share*: 1.68p)

· Cash generated by operations of £3.5m (2019 restated*: £1.3m)

· Net cash at 30th September 2020 of £12.9m (2019: £13.4m)

*  Prior period figures have been restated to reflect adjustments arising from the March 2020 audit.

Operations

· Exceptionally strong recovery in China following the African Swine Fever impact in 2019

· USA recovery following the easing in geopolitical trade tensions between China and the USA

· Latin America performing strongly, led by Brazil

· New marketing authorisation from the European Medicines Agency for the use of Aivlosin® 625 mg/g Water Soluble Granules in pigs for the treatment of Mycoplasma hyopneumoniae

· Strong trading in the third quarter 

 

Dr Andrew Jones, Non-executive Chairman of ECO Animal Health Group plc, commented:

"This set of results for the first half builds upon the strong trading seen in China during the latter part of last year with an acceleration in sow restocking and an appreciation of the benefits that Aivlosin® brings to animal health and productivity.  We are pleased to be releasing these Interim results at the same time as the audited final results for March 2020 and together they mark a turning point in the reassessment of the Group's prior accounting.  We are experiencing strong forward trading as evidenced by the successive trading updates and we are also excited with the continued new product development successes.  The Directors are confident and excited about the future prospects for the business."

 

 

 

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

 

 

 

 

 

 

 

 

 

 

 

Contacts:

 

 

ECO Animal Health Group plc

Marc Loomes (CEO)

Christopher Wilks (CFO)

Andrew Jones (Chairman)

 


020 8447 8899

 

IFC Advisory

Graham Herring

Zach Cohen

 

020 3934 6630

 

N+1 Singer (Nominated Adviser & Joint Broker)

Mark Taylor

Iqra Amin

 

020 7496 3000

Peel Hunt LLP (Joint Broker)

James Steel

Dr Christopher Golden

020 7418 8900

 















 

ECO Animal Health Group plc ("ECO" or "the Group") researches, develops and commercialises products for livestock. Our business strategy is to generate shareholder value by achieving the maximum sales potential from the existing product portfolio whilst investing in Research and Development ("R&D") for new products, particularly vaccines, and seeking to in-license new products.



 

Chairman's statement

I am pleased to report that despite the considerable challenges presented by Covid-19 we report a set of interim results which demonstrate considerable strength in revenue and profitability.

We welcome Dr Frank Armstrong to our Board.  Frank joined us on the 1st May 2020 and he brings a wealth of experience in life sciences - businesses large and small - and in particular around the areas of management of Research and Development.  This is an increasing feature of our business and his experience will add greatly to our future endeavours.

Audit of the Group's results for the Year ended 31st March 2020

We are releasing this Interim statement on the same day as the delayed release of the Annual report for the year ended 31st March 2020.  We are pleased that the first audit by our new auditors, BDO, is complete and the thorough review undertaken, together with the comprehensive prior year restatements sets the Group on a positive footing for future periods.

Covid-19

This trading period has coincided with the primary outbreak of Covid-19 in Europe and the USA and necessary transition to remote working and social distancing has by and large been a smooth and uninterrupted process.  Certainly in terms of order volumes, reaching customers and the logistics of order fulfilment we could not have hoped for a better process.  The adoption of new ways of working and utilising all that modern on-line communication offers has been a great credit to the skills of our staff members, customers and suppliers and on behalf of the Board I would like to express our gratitude to them.

Financial Performance

Revenue was sharply higher in the first six months to 30th September 2020 at £42.5 million (30th September 2019 - £28.3 million, driven in the main by a resurgence in China.  This is further discussed in the Business Performance comments below.  At £42.5 million this first half period is at roughly the same run-rate with the £43.8 million revenue recorded in the second half of the year ended 31st March 2020.  Given the historical pattern of second half weighting to revenue this underlines the strength of the revenue performance in this period.

The gross margin in the first six months has been an average of 48%. This is ahead of the full year ended 31st March 2020 (46%) and considerably stronger than that recorded in the six months ended 30th September 2019 (43%).  As reported last year the gross margins were negatively impacted in the USA and as a result of the stronger pork market in the USA the margins have recovered to previously seen levels.

Administrative expenses of £10.5 million (2019 - £7.2 million) were incurred, the increase being associated with variable costs such as performance related bonus accruals, investment in new members of staff and certain exceptional costs.

Research and development expenditure shown on the income statement and together with the amount capitalised represented a cash investment of 10% of revenue in the six months ended 30 September 2020 (17% in the six month period ended 30th September 2019 restated).  In response to the Covid-19 pandemic the Board instigated a prioritisation exercise in the R&D portfolio to conserve cash.  Additionally, the revenue in the period was ahead of budget which also results in a slightly lower ratio for a budgeted amount of R&D expenditure.

Earnings before interest, tax, depreciation, amortisation, share based payments and foreign exchange movements ("Adjusted EBITDA") were £6.7 million (2019 restated: £1.7 million).  This increase in profitability was directly a result of the higher revenue at greater gross margins and partially offset by increased R&D investment and overheads.

Cash generated from operations was £3.5 million (2019: £1.3 million).  This was a particularly strong performance which was inline with the cash generated in 2019 allowing for an element of inventory build which was planned ahead of Brexit.

Net cash at 30th September 2020 was £12.9 million (31st March 2020: £9.8 million).  The higher cash position arose from stronger trading and judicious control of cash expenditure in the midst of uncertainty surrounding Covid-19 and its impact on world economies.  This consolidated cash position at 30th September 2020 includes £9.7 million (March 2020 - £5.3 million) which is held in the Group's subsidiary in China.  A portion of this cash is repatriated from China once per annum by dividend declaration; the Group's share which is received in the UK is 51%.

Business Performance

The geographical analysis of the Group's revenue in the six months ended 30th September 2020 compared to the prior period in 2019 and the full year ended 31st March 2020 was as follows:

Revenue Summary


6 months ended 30th September


Year ended





2020

2019


31st March

 2020

% change




(£'m)

(£'m)


(£'m)

2019 to 2020





Restated


Restated


China and Japan

20.8

7.0


23.1

197%

North America (USA and Canada)


6.4

3.6


11.6

78%

South and South East Asia


4.0

7.1


14.2

(44%)

Latin America


6.4

5.1


12.6

25%

Europe


4.1

4.7


7.6

(13%)

Rest of World and UK


0.8

0.8


3.0

0%




42.5

28.3


72.1

50%

 

Group revenue improved by 50% to £42.5 million compared to the prior period in 2019 - a period which continued to be dominated by the unprecedented impact of Covid-19. 

The recovery from ASF in China has been widely reported.  The rate of restocking of the pig herd has been ahead of most predictions; the strong pork commodity price driving a number of mechanisms to increase the number of breeding sows and resulting in extraordinary farm profitability.  This is turn has resulted in the greater use of premium medications such as Aivlosin®.  It is believed that the efficacy benefits that new users have experienced will result in a number of new, long term, customers. 

Revenue in North America, USA in particular, has been strong with a return to pre-2019 levels of business and margins.  This has been a result of a normalisation in pork prices in that market as well as export markets (China) becoming available.

India had a steady six months; the poultry market has been badly affected during the Covid-19 pandemic but commentators are expecting a recovery during 2022.

Brazil continues to record strong revenue resulting from a buoyant domestic and export swine market as well as an effective in-country distributor.

 

 

 

Research and Development

In our core product area, a marketing authorisation was obtained from the European Medicines Agency for the use of Aivlosin® Water Soluble Granules in the treatment of pigs for Mycoplasma hyopneumoniae.  This, together with the equivalent authorisation in the USA and Canada received in January 2021 further demonstrates the strength and depth of our cornerstone product family and the "evergreening" of the Group's core offering.

The Group will continue to invest in building a product pipeline targeting both viral and bacterial diseases of economic importance in pigs and poultry, with the intention of developing a range of vaccines and new products to complement our existing antimicrobial business. The product pipeline contains a mix of well-established concepts as well as novel, potentially disruptive technologies and approaches.  These are in various stages of development thereby ensuring that the Group has several mid and late stage projects able to deliver revenues from 2022/23.  We were very pleased to announce the approval of the first of these vaccine projects - this was received in January 2021 in Brazil and is for the combined vaccination of pigs against Porcine Circovirus Type2 and Mycoplasma hyopneumoniae. 

Brexit

The Group has successfully transferred all EU marketing authorisations to a new European subsidiary, ECO Animal Health Europe Limited with a registered address in Dublin, Republic of Ireland. All contingency planning is in place and the financial and operational impact of Brexit is expected to be minimal.

Prior to 31st December 2020, the vast majority of orders for delivery in the first quarter of the calendar year 2021 were delivered to insulate the Group from any possible effects of logistical issues, port delays and transport interruptions.

Dividend

The directors recognise the importance of the dividend to shareholders.  However, having due regard to the Group's significant investment in new product development, operating cash flow, and cash balances, the directors consider it prudent to defer the declaration of a dividend at this time.

Outlook

Performance so far in the current financial year ending 31st March 2021 has been strong with the strength seen in both our Chinese and US markets continuing into the second half of our current financial year. In October 2020, we announced that n otwithstanding the historical second half weighting to the Group's revenue, if the first half revenue trends continued through the second half of the financial year the Board expected that the Group's full year revenue for the year ending 31st March 2021 would exceed market expectations. This resulted in an upgraded market expectation both for revenue and profitability.

On 24th November 2020 we confirmed that strong trading had continued during November and, being mindful of the continuing global uncertainties and four months remaining until the end of the financial year, we were confident of meeting the upgraded market expectations.  

On 21st January 2021 we issued a positive trading update, confirming Group revenues and EBITDA were expected to be significantly ahead of market expectations for the year ending 31st March 2021.  We noted that the strength in the Chinese market, supported by the rebuilding of pig herds and the high price for pork, continued through the third quarter and the outlook for the final quarter sales continued these strong trading trends.

We look forward to the rest of this financial year and our reporting prospects for 2021 with continuing optimism.

Dr Andrew Jones

Non-Executive Chairman

3 February 2021

 

CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS TO 30th SEPTEMBER 2020








Six months

Six months

Year ended



to 30.09.20

to 30.09.19

31.03.20


Notes

(unaudited)

(unaudited)

(audited)



 000's

 000's

 000's




 Restated*


Revenue

4

  42,530

  28,316

  72,106

Cost of sales


  (22,098)

  (16,197)

  (38,742)

Gross Profit


  20,432

  12,119

  33,364

Other income


  397

  8

  105

Administrative expenses


  (10,524)

  (7,154)

  (16,991)

R&D expense


  (4,093)

  (3,563)

  (8,775)

Currency profits/(losses)


  (843)

  714

  (539)

Amortisation of intangible assets


  (789)

  (821)

  (1,685)

Share based payments


  (85)

  (208)

  (284)

Profit from operating activities:


4,495

  1,095

  5,195

Net finance cost


  (39)

  (4)

  (30)

Share of profit of associate


  -

  42

  42

Profit before income tax


  4,456

  1,133

  5,207

Income tax benefit/(charge)


  (598)

  130

  (1,032)

Profit for the period


3,858

  1,263

  4,175






Attributable to:





Owner of parent company


  2,113 

  1,133

  2,582

Non-controlling interest


1,745

  130

  1,593



3,858

  1,263

  4,175






Earnings per share (pence 2019 - restated)

6

3.13

  1.68

  3.82






Diluted earnings per share (pence - restated)

6

3.01

  1.67

  3.67






Earnings before interest, taxation, depreciation,





amortisation and share based payments (EBITDA)


5,838

2,408

7,823

Exclude foreign exchange differences


843

  (714)

  539

Adjusted EBITDA excluding foreign exchange differences


  6,681

  1,694

8,362






*Details of the restatement, which is unaudited, is presented in Note 3.



 

 

 

 

   CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME







Six months

 Six months

Year ended


to 30.09.20

  to 30.09.19

31.03.20


(unaudited)

 (unaudited)

(audited)


 000's

 000's

 000's



 Restated*






Profit for the period

3,858

  1,263

4,175





Other Comprehensive income/(losses) (net of related tax effects):








Items that will or may be reclassified to profit/(loss) in future periods:




Revaluation of freehold property

-

-

  (92)

Adjustment for intangible assets - note 3

  -

  835

-

Adjustment to tax rates on previously reported adjustments - note 3

  -

  (617)

-

Foreign currency translation differences

  507

  47

  98





Items that will not be reclassified:




Defined benefit plan - actuarial losses

  -

  -

  12





Other comprehensive income/(losses) for the period

507

  265

  18





Total comprehensive income for the period

  4,365

  1,528

  4,193





Attributable to:




Owners of the parent Company

  2,651

  1,424

  2,561

Non-controlling interest

  1,714

  104

  1,632


  4,365

1,528

  4,193





*Details of the restatement, which is unaudited, is presented in Note 3.



 

 

 



 

 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY









Share

Share

Revaluation

Other

Foreign Exchange

Retained

Total

Minority

Total


Capital

Premium

Reserves

Reserves

Reserve

Earnings


Interest

Equity


Account

Account









£000's

£000's

£000's

£000's

£000's

£000's

£000's

£000's

£000's

FOR THE YEAR ENDED 31 MARCH 2020









Balance as at 31 March 2019

  3,372

  62,650

664

  106

  467

  17,214

  84,473

  5,102

  89,575

Profit for the year

 -

 -

 -

 -

 -

2,582

2,582

1,593

4,175

Other comprehensive income:










Foreign currency differences

 -

 -

 -

 -

 59

  -

59

39

98

Revaluation of freehold

 -

 -

(92)

-

-

-

(92)

-

(92)

Actuarial (losses) on pension scheme assets

 -

 -

 -

 -

 -

  12

12

  -

12

Total comprehensive income for the year

  -

  -

  (92)

-

59

2,594

2,561

1,632

4,193

Transactions with owners recorded directly in equity:










Issue of shares in the year

5

232

 -

 -

 -

 -

237

  -

237

Share-based payments

 -

 -

  -

 -

 -

284

284

  -

284

Deferred tax on share-based payments

 -

 -

-

 -

 -

(373)

(373)

  -

(373)

Dividends

 -

 -

 -

 -

 -

  (7,453)

  (7,453)

  (968)

  (8,421)

Transactions with owners

  5

  232

  -

  -

  -

  (7,542)

  (7,305)

  (968)

  (8,273)

Balance as at 31 March 2020

  3,377

  62,882

  572

  106

  526

  12,266

  79,729

  5,766

85,495











FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020









Profit for the period

  -

  -

  -

  -

  -

  2,113

  2,113

1,745

3,858

Other comprehensive income:










Foreign currency differences

  -

  -

  -

  -

538

-

538

(31)

507

Total comprehensive income for the period

  -

  -

  -

  -

538

2,113

2,651

1,714

4,365

Transactions with owners recorded directly in equity:










Issue of shares in the period

 -

6

  -

 -

 -

-

6

  -

6

Share-based payments

 -

 -

  -

 -

 -

85

85

  -

85

Total transactions with owners

  -

6

  -

  -

  -

  85

91

  -

91

Balance as at 30 September 2020

  3,377

  62,888

  572

  106

  1,064

  14,464

82,471

7,480

89,951

 

 

 

 

 

 

 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY












Share

Share

Revaluation

Other

Foreign Exchange

Retained

Total

Minority

Total


Capital

Premium

Reserves

Reserves

Reserve

Earnings


Interest

Equity


Account

Account









£000's

£000's

£000's

£000's

£000's

£000's

£000's

£000's

£000's

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019









 

Balance as at 31 March 2019

  3,372 

62,650

  664

106

467

17,214

84,473

  5,102

  89,575

 

Profit for the period - as reported

  -

  -

  -

  -

  -

  1,018

  1,018

  130

  1,148

Prior period adjustments:










Adjustment for intangible assets - note 3

  -

  -

  -

  -

  -

115

115

-

115

Profit for the period - restated

-

-

-

-

-

1,133

1,133

130

1,263

Other comprehensive income:










Adjustment for intangible assets - note 3

  -

  -

  -

  -

  -

835

835

-

835

Adjustment to tax rates on previously reported adjustments - note 3

  -

  -

  -

  -

  -

(617)

(617)

-

(617)

Foreign currency differences

  -

  -

-

  -

73

-

73

(26)

47

Total comprehensive income for the period

  -

  -

  -

  -

  -73

1,351

1,424

  104

1,528

Transactions with owners recorded directly in equity:










Issue of shares in the period

  5

  232

 -

 -

 -

 -

  237

  -

  237

Share-based payments

 -

 -

 -

  -

  -

208

  208

  -

  208

Dividends

 -

 -

 -

 -

 -

  (7,453)

  (7,453)

  -

  (7,453)

Total transactions with owners

  5

  232

  -

  -

  -

  (7,245)

  (7,008)

  -

  (7,008)

Balance as at 30 September 2019

  3,377

  62,882

  664

  106

540

11,320

  78,889

  5,206

  84,095

































 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION








As at

As at

As at



30.09.20

30.09.19

31.03.20



(unaudited)

(unaudited)

(audited)


Notes

£000's

£000's

£000's




Restated*


Non-current assets





Intangible assets

7

40,667

  41,470

  41,439

Property, plant and equipment


  2,323

  2,044

  2,426

Investment property


305

  200

  305

Right of use assets


1,525

  2,043

  1,658

Investments


  150

  166

  166



44,970

  45,923

  45,994

Current assets





Inventories


  20,282

  20,647

  17,264

Trade and other receivables


  28,083

  19,896

  28,353

Income tax recoverable


1,964

  1,416

  1,265

Other taxes and social security


359

  420

  652

Cash and cash equivalents


  17,058

  13,411

  11,877



  67,746

  55,790

59,411

Total assets


  112,716

  101,713

  105,405

Current liabilities





Trade and other payables


  (16,304)

  (9,653)

  (14,486)

Borrowings


(4,117)

-

  (2,032)

Income tax


  (25)

  (55)

  (940)

Other taxes and social security


  -

  (690)

  -

Amounts due under leases


  (375)

  (431)

  (342)

Dividends


  (50)

  (4,803)

  (50)



  (20,871)

  (15,632)

  (17,850)






Total assets less current liabilities


91,845

  86,081

87,555






Non-current liabilities





Deferred tax


  (686)

  (309)

  (636)

Amounts due under leases


  (1,208)

  (1,677)

  (1,424)

Total assets less total liabilities


89,951

84,095

  85,495






Equity





Capital and reserves





Issued share capital


  3,377

  3,377

  3,377

Share premium account


  62,888

  62,882

  62,882

Revaluation reserve


572 

  664

  572

Other reserves


106

  106

  106

Foreign exchange reserve


1,064

540

526

Retained earnings


14,464

11,320

  12,266

Shareholders' funds


82,471

78,889

  79,729

Non-controlling interests


7,480

  5,206

  5,766

Total equity


  89,951

84,095

  85,495






*Details of the restatement, which is unaudited, is presented in Note 3.

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS






Six months to

Six months to

Year ended


30.09.20

30.09.19

31.03.20


(unaudited)

(unaudited)

(audited)


£000's

£000's

£000's



Restated*


Cashflows from operating activities




Profit before income tax

  4,456

  1,133

  5,207





Adjustment for:




Net finance cost

39

  4

  30

Foreign exchange gain/(loss)

(688)

(212)

62

Depreciation

155

  271

  334

Revaluation of investment property

  -

  -

  (64)

Amortisation of right-of-use assets

187

184

389

Amortisation of intangible assets

789

  821

  1,685

Pension payments

  -

  (29)

(59)

Share of associate's results

-

  (42)

  (42)

Share-based payments

85

  208

  284

Operating cash flow before movement in working capital

5,023

  2,338

  7,826





Change in inventories

  (3,018)

  (1,002)

  2,212

Change in receivables

  563

  3,278

  (5,209)

Change in payables

952

  (3,313)

  662

Cash generated from operations

  3,520

  1,301

5,491

Finance costs

(40)

41

  (17)

Income tax

  (116)

  (770)

(1,076)

Net cash from operating activities

  3,364

  572

  4,398





Cash flows from investing activities




Acquisition of property, plant and equipment

  (231)

  (85)

  (767)

Disposal of property, plant and equipment

  -

  -

  -

Purchase of intangibles

  (17)

  (1,282)

  (2,115)

Finance income

  64

  51

  112

Net cash (used in) investing activities

  (184)

  (1,316)

  (2,770)





Cash flows from financing activities




Change in borrowings

2,085

-

2,032

Proceeds from issue of share capital

6

  237

237

Interest paid on lease liabilities

  (63)

  (70)

  (125)

Principal paid on lease liabilities

(182)

-

(364)

Finance lease repayments

-

  (273)

  -

Dividends paid

-

  (2,699)

  (8,421)

Net cash (used in) financing activities

1,846

  (2,805)

  (6,641)





Net (decrease)/increase in cash and cash equivalents

5,026

  (3,549)

  (5,013)

Foreign exchange movements

  155

  97

27

Balance at the beginning of the period

11,877

  16,863

16,863





Balance at the end of the period

17,058

  13,411

  11,877

Free cash flow

  3,180

  (744)

  1,628

*Details of the restatements, which are unaudited, are presented in Note 3.





NOTES TO THE PRELIMINARY RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2020

1.  Basis of preparation

The financial information for the period to 30 September 2020 does not constitute statutory accounts as defined by Section 435 of the Companies Act 2006. It has been prepared in accordance with the accounting policies set out in, and is consistent with, the audited financial statements for year ended 31 March 2020.

 

The Group applies revised IAS 1 "Presentation of Financial Statements (2007)". As a result, the Group presents all non-owner changes in equity in consolidated statements of comprehensive income and all owner changes in equity in consolidated statements of changes in equity.

 

These Interim Statements have not been audited or reviewed by the Group's auditors.

 

2.  Statement of compliance

This interim financial statement is prepared in accordance with IAS 34 "Interim Financial Reporting".  Accordingly, whilst the interim statements have been prepared in accordance with IFRS, and the primary statements follow the format of the annual financial statements, only selected notes are included - those that provide an explanation of events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last annual reporting date. IAS 34 states a presumption that anyone who reads the Group's interim report will also have access to its most recent annual report.  Accordingly, annual disclosures are not repeated in these interim condensed reports.

 

3.  Changes to significant accounting policies and other restatements

The principal accounting policies which are adopted by the Group in the preparation of its financial statements are set out in in the consolidated financial statements of the Group for the year ended 31 March 2020.   These policies have been consistently applied to all prior years.  Where necessary, and as detailed in the consolidated financial statements of the Group for the year ended 31 March 2020, any corrections to the application of the Group's accounting policies to comply with International Financial Reporting Standards have been made as restatements of prior period financial statements for the correction of errors in accordance with IAS8 .  The correct application of the Group's accounting policies in accordance with IFRS continued into the six months ended 30 September 2020. 

 

Since the September 2019 interim accounts the group has completed its review of the capitalization of historic development expenditure, and reviewed the amortization policy applied to such assets.  This has had the effect of increasing the net book value of intangible assets held at September 2019.  Full details are given in the Annual Report and Accounts for the year ended 31 March 2020, but the financial effect is summarized below.

Development costs adjustment: Impact on the Balance Sheet and Income Statement


As reported

Adjustment to retained earnings

Adjustment through Income Statement

Restated


Sept 2019



Sept 2019


 000's

£000's

£000's

 000's

Balance sheet





Cost

44,922

(3,900)

(270)

40,752

Accumulated amortisation

(23,004)

4,735

385

(17,884)

Net Book Value

21,918

835

115

22,868











Income Statement






As reported for 6 months to Sept 2019

£000's

Adjustment to retained earnings

£000's

Adjustment through Income Statement

£000's

Restated for 6 months to Sept 2019

£000's

 

R&D Expense

 

3,293

 

-

 

270

 

3,563

Amortisation charge

1,206

-

(385)

821




(115)




 

NOTES TO THE PRELIMINARY RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2020 (Continued)

3.  Changes to significant accounting policies and other restatements (continued)

In addition, during the completion of the audit of the Group's financial statements for the year ended 31 March 2020 the Group identified some amendments that needed to be made to previously reported prior year adjustments.  These amendments arose in respect of changes to the tax rates applied to the previously reported adjustments.  The effect of these changes is reported in the Consolidated Statement of Changes in Equity that forms part of these results, and full details are contained in the Group's Annual Report and Accounts for the year ended 31 March 2020.

 

4.  Revenue is derived from the Group's animal pharmaceutical businesses.

 

 

5.  Principal risks and uncertainties

These were set out on pages 20-22 of the Group's Annual Report and Accounts for the year ended 31 March 2020. The key exposures are to foreign currency exchange rates, potential delays in obtaining marketing authorisations, single sources of supply for some raw materials and trade debtor recovery and have remained unchanged since the year end.  In addition, the Annual Report and Accounts highlighted disease impact to growth in emerging markets as a key risk and this, in the form of ASF, is a principal uncertainty.

 

6.  Earnings per share  


Six months

Six months

Year ended


to 30.09.20

to 30.09.19

31.03.20


(unaudited)

(unaudited)

(audited)



Restated


Weighted average number of shares in issue (000's)

  67,530

  67,493

  67,530

Fully diluted weighted average number of shares in issue (000's)

  70,313

  68,092

  70,313

Profit attributable to equity holders of the company (£000's)

  2,113

  1,133

2,582

Basic earnings per share (pence)

  3.13

1.68

  3.82

Fully diluted earnings per share (pence)

  3.01

  1.67

  3.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTES TO THE PRELIMINARY RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2020 (Continued)

 

7.  Intangible non-current assets


Goodwill

 Distribution rights

Development Costs

Total


 000's

 000's

 000's

 000's

Cost





At 1 April 2019 - restated

  17,930

  1,442

  39,470

58,842

Additions - restated

  -

  -

  1,282

  1,282

At 30 September 2019 - restated

  17,930

  1,442

40,752

60,124

Additions

  -

  -

833

833

At 31 March 2020

  17,930

  1,442

41,585

60,957

Additions

  -

  -

17

17

At 30 September 2020

  17,930

  1,442

  41,602

60,974






Amortisation 





At 1 April 2019 - restated


735

17,098

17,833

Charge for the period - restated


35

786

821

At 30 September 2019 - restated

  -

770

17,884

18,654

Charge for the period

  -

35

829

864

At 31 March 2020

  -

805

18,713

19,518

Charge for the period

  -

35

754

789

At 30 September 2020

  -

840

19,467

20,307






Net Book Value





At 30 September 2020

  17,930

  602

22,135

40,667






At 31 March 2020

  17,930

  637

22,872

41,439






At 30 September 2019 - restated

  17,930

  672

22,868

41,470






At 1 April 2019 - restated

  17,930

  707

22,372

41,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This financial information was approved by the board on 3 February 2021.

Copies of this interim report are being sent to all the Company's shareholders.

 

DIRECTORS AND OFFICERS

Andrew Jones

(Non-Executive Chairman)


Marc Loomes

(Chief Executive)


Chris Wilks

(Chief Financial Officer)


Anthony Rawlinson

Frank Armstrong

(Non-Executive Director)

(Non-Executive Director)

 




REGISTERED OFFICE

78 Coombe Road, New Malden, Surrey. KT3 4QS


Tel: 020 8447 8899





COMPANY NUMBER

01818170

 


INFORMATION AT

www.ecoanimalhealthgroupplc.com


 























 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR ZZGGZVDRGMZG
UK 100

Latest directors dealings