Trading Update

RNS Number : 2163V

Dechra Pharmaceuticals PLC

07 July 2009

 



Issued by Citigate Dewe Rogerson Ltd, Birmingham

Date:  Tuesday, 7 July 2009   

Immediate Release

Dechra® Pharmaceuticals PLC

('Dechra' or 'The Group')

Trading Update

The Board of Dechra issues the following update ahead of the publication of the Group's Preliminary Results for the year ended 30 June 2009 which will be announced on Tuesday 1 September 2009.

Trading for the year ended 30 June 2009 was in line with management's expectations, with Group revenues ahead by approximately 15.0% in comparison with last year.

Product Development

Our product development pipeline continues to deliver results. During the year Vetoryl® received approval in the US, Australia and Canada and Felimazole® was approved in the US. Additionally, several products have been launched across the EU.

As announced at our Half-Year Results, a number of new and novel pharmaceutical products have been identified which will result in increased product development expenditure in the forthcoming year as we begin new clinical trials. Subsequently, on the strength of the good growth in our specialist pet diets, we have identified a number of new opportunities to develop our SpecificTM brand of veterinary exclusive therapeutic diets. It is anticipated that annual diet development costs will be increased by £0.5 million.

Pharmaceuticals Division

Revenue from this division increased by approximately 57.5% compared to last year, including the full year effect of the acquisition of VetXX® Holdings A/S in January 2008.

Revenue from US Vetoryl in the period was US$2.2 million.

Our manufacturing business, Dales® Pharmaceuticals, performed well during the period due to improved efficiency and increased production of both our own and third party products.

Services Division

This division produced a good performance with revenue increasing by approximately 6.4% compared to last year.

Following the continuing expansion of NVS®, we are planning to increase warehouse capacity at our central logistics facility. Additionally, we intend to go live on a new ERP system in the forthcoming financial year. We anticipate annualised additional costs to be approximately £1.0 million.  

Balance Sheet

Operating cash flow during the period was strong, resulting in a further reduction in net borrowings.

Summary

The Group continues to perform robustly in challenging economic conditions. Although our markets have experienced a slower rate of growth, we have demonstrated solid progress compared to last year. With new product launches imminent and increased penetration of existing markets, we remain confident about the future growth prospects of the Group.

Enquiries:
Ian Page, Chief Executive	Fiona Tooley, Director
Simon Evans, Group Finance Director	Keith Gabriel, Senior Account Manager
Dechra Pharmaceuticals PLC	Citigate Dewe Rogerson
Telephone: + 44 (0) 1782 771100	Telephone: [phone]
Mobile: [phone] (IP)	Mobile: [phone] (FT)
Mobile: [phone] (SE)
	Ticker: Full Listing (Pharmaceuticals): DPH

Trade Marks appear throughout this release in italics. Dechra and the Dechra 'D' logo are registered Trade Marks of Dechra Pharmaceuticals PLC.

 

END

 

 

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