Vet services specialist Animalcare (LON:ANCR) posted higher sales in its latest half year despite growing competition in the pet microchip market.
Revenues rose by 2.7% to £7.1mln, though profits eased 13% to £1.55mln as the proportion of lower margin exports rose.
James Lambert, chairman, said it was a decent performance as the comparative half year was very strong and had benefited from a rival’s supply problems.
The business has three arms. Licensed veterinary medicine’s sales rose by 4% to £4.6mln and animal welfare by 5.1% though chip identification saw sales fall 5% to £1.2mln as compulsory micro-chipping for dogs was introduced.
Lambert added he was confident over the full year outcome given the top line growth and increased levels of investment. R&D spending will be £1-£1.5mln over the twelve months he said, with 26 projects under development.
Cash balances rose to £6.1mln even with the heavier investment while the interim dividend was maintained at 1.8p.
Shares eased 2% to 204p.