Animalcare Group (LON:ANCR) said on Wednesday its first half results were ahead of management's expectations as it reported a 26% rise in underlying profit.
The AIM-listed supplier of veterinary drugs posted underlying profit (EBITDA) of £2.12mln in the six months to 31 December 2016, compared to £1.68mln the same period a year earlier.
Revenue rose 12% to £7.97mln from £7.11mln, driven by sales growth at its licensed veterinary medicines business. The division, which accounts for 67% of total revenue, saw a 17.2% increase in sales to £5.37mln.
The animal welfare products unit achieved a 13% gain in revenue to £1.51mln, boosted by higher sales of its intravenous fluid infusion accessories.
The animal identification division, however, reported a 9.2% drop in sales to £1.09mln, reflecting a competitive market of microchipping pets.
Animalcare raised its interim dividend 11% to 2.0p per share, saying it has continued confidence in the growth prospects for the group.
“Animalcare is in a good position to build on the strong performance in the first half of the year,” the company said in a statement. “The continued health of the business allows us to invest further in our development activities whilst maintaining our dividend policy.”
Shares rose 3.66% to 318.75p in morning trade.