Eco Animal Health Group PLC Notice of Results and Trading Update (1701V)
08 Agosto 2022 - 1:00AM
UK Regulatory
TIDMEAH
RNS Number : 1701V
Eco Animal Health Group PLC
08 August 2022
8 August 2022
ECO Animal Health Group plc
("ECO", the "Company" or the "ECO Group") (AIM: EAH)
Notice of Results and Trading Update
ECO Animal Health Group plc, a leader in the development,
registration and marketing of pharmaceutical products for global
animal health markets, is pleased to provide an update to its
expected results for the year ended 31 March 2022.
The audit for the year ended 31 March 2022 is proceeding to its
conclusion and it is expected that the results will be released on
or around the 18(th) August 2022.
Overall, the Group expects to report revenue for the year ended
31 March 2022 in excess of GBP82m and EBITDA of approximately
GBP6.5m, which includes an exchange rate gain of GBP1m and the
effect of the items referred to below.
It has recently come to our attention that certain aspects of a
sales tax related to imported products in a foreign jurisdiction
where we operate through a subsidiary company, might have been
applicable. ECO has been importing an increasing volume of product
into this country in recent years. This issue is at an early stage
and no tax payment has yet been determined. However, it is likely
that a substantial tax settlement could be required in due course
and an estimated sum of GBP2.5million has been provided for in our
results for the year ended 31 March 2022. The sum has been
apportioned to appropriate years and charged to Cost of Sales
within the Income statement. The impact of this item in the year
ended 31 March 2022 was a reduction in EBITDA of GBP1m.
In addition, certain development costs amounting to GBP0.3m
which were initially capitalised but which on subsequent review
were judged to not now meet the required specific criteria for
capitalisation have resulted in a higher than expected charge for
R&D in the consolidated income statement.
The first quarter of financial year 2021/22 saw ECO deliver
record China revenue due to a favourable combination of industry
structural changes and restocking of the pig herd after the ASF
epidemic together with changes in regulations for use of
antibiotics in feed created exceptional levels of demand and sales
opportunity for Aivlosin(R). China revenue in the first quarter of
financial year 2022/23 was significantly below that of the record
levels recorded in the prior year. This is a direct consequence of
continuing low profitability and poor cashflow within major
producers. However, gross margins in China were strong in the first
quarter, reflecting the particular mix of customers. Elsewhere,
Rest of World revenue grew strongly compared with the first quarter
ended 30 June 2021.
A recent Improvement in pork pricing in China provides us with
some optimism for the rest of the year and the Board continues to
review overheads and capital expenditure levels in relation to
trading trends.
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") as it forms part
of United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement
via a Regulatory Information Service ("RIS"), this inside
information is now considered to be in the public domain.
For further information please contact:
ECO Animal Health Group plc
David Hallas (CEO)
Christopher Wilks (CFO) 020 8447 8899
IFC Advisory
Graham Herring
Zach Cohen 020 3934 6630
Singer Capital Markets (Nominated Adviser
& Joint Broker)
Mark Taylor
George Tzimas 020 7496 3000
Investec (Joint Broker)
Gary Clarence
Brough Ransom 020 7597 5970
Carlo Spingardi
Peel Hunt LLP (Joint Broker)
Dr Christopher Golden
James Steel 020 7418 8900
Equity Development
Hannah Crowe
Matt Evans 020 7065 2692
About ECO Animal Health
ECO Animal Health Group plc 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.
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