25 September 2013 – annual results
Another impressive set of results for the year to 30 June has seen this veterinary group increase revenues by over 11% to £12.1m, with pre-tax profit before exceptional items rising by 18% to £2.7m. Earnings per share on the same basis were 13% higher at 10.5p with the annual dividend being raised 18% to 5.3p. Net cash at the year end was £3.7m (2012: £2.3m) and the group’s strong cash flow enables it to fund its product development pipeline internally. The group has stated that it intends to commit more funds to its R & D programme and this will result in limited growth over the next two or three years although as these new projects are commercialised from 2017 onwards there could be significant rewards. We originally recommended the shares at 123.5p and with slower growth in the short-term now seeming likely we believe the current share rating is high enough – TAKE PROFITS.