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 1^st 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 31^st 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: [phone]
COMPANY NUMBER	01818170
INFORMATION AT	www.ecoanimalhealthgroupplc.com

 

END

 

 

IR ZZGGZVDRGMZG