24942.04   13/10/2016   Proof 6
www.animalcaregroup.co.uk
Stock Code: ANCR
Supplying  
& Supporting
Veterinary Professionals  
throughout the UK
Animalcare Group plc
Annual Report
for the year ended 30
th
 June 2016
Animalcare-AR2016-Proof 6.indd   2 17/10/2016   17:04:05 24942.04   13/10/2016   Proof 6
 F ormor ein f orma tions eeGr oupa taGlanceon
pag es04and05
 SeeourIn v es tme n tc aseonpag e03
Animalcare Group plc is focused 
on growing its veterinary business.
We are a leading supplier of generic 
veterinary medicines and identification 
products to companion animal veterinary 
markets.
We develop and sell goods and services to 
veterinary professionals principally for use 
in companion animals; operating through 
UK wholesalers and distribution and 
development partners in key markets in 
Western Europe.
We have three product groups:
 ■ Licensed Veterinary Medicines
 ■ Companion Animal Identification
 ■ Animal Welfare Products
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  See further content online 
at www.animalcaregroup.co.uk
 
 View more content  
withinthisr eport
R eadaboutourperf ormancea t: 
www.animalcaregroup.co.uk/year-in-review
Contents
STRATEGIC REPORT
Our Business
Financial Highlights 01
Operational Highlights 01
Chairman’s Statement 02
Investment Case 03
Group at a Glance 04
Business Model 06
Strategy 08
Our Performance
Key Performance Indicators 10
Chief Executive’s Review 11
Chief Financial Officer’s Review 14
Principal Risks  16
OUR GOVERNANCE
Board of Directors 18
Corporate Governance 20
Directors’ Report 21
Statement of Directors’ 
Responsibilities  23
OUR FINANCIALS
Independent Auditor’s Report 24
Consolidated Statement  
of Profit and Loss and 
Comprehensive Income 25
Statements of Changes in 
Shareholders’ Equity 26
Balance Sheets 27
Cash Flow Statements 28
Notes to the Accounts 29
Five Year Summary 59
Advisers IBC
WELCOME TO 
ANIMALCARE GROUP PLC 24942.04   13/10/2016   Proof 6
F I N AN CI A L  HI G HLI GHTS
OPE R A TIONAL  H I G H LI G HTS
+8.6%
+3.2%
+2.6%
+6.6%
at £14.7m
at 13.0p
at £3.2m
at 6.5p
12.9
2014
14.7
2016
13.5
2015
10.8
2014
13.0
2016
12.6
2015
2.8
2014
3.2
2016
3.1
2015
5.5
2014
6.5
2016
6.1
2015
Revenue
£m
Underlying 
Operating Profit
£m
*
Dividend 
Per Share
Pence
 ■ Strong financial performance with underlying operating profit 
and underlying basic EPS slightly ahead of recently revised market 
forecasts of £3.1m and 12.6p per share respectively. 
 ■ 7.2% increase in sales of Licensed Veterinary Medicines, with 
associated export revenues increasing by 22.5%. 
 ■ Advantage taken from compulsory microchipping for dogs 
opportunity resulting in an incremental revenue benefit of c£0.3m.
 ■ Cash generation remains strong which enabled the business to 
propose a 6.6% increase in the total dividend to 6.5p per share during 
our investment phase.
 ■ Strong momentum in building value within our product development 
pipeline with investment increasing by 100% to £1.6m.
 View our Financial Highlights online at:  
www.animalcaregroup.co.uk/year-in-review
 R eadmor eabout ourC hie fEx ecutiv eOffi cer ’ s
R e vie wonpag es12t o13
Underlying  
Basic EPS
Pence
*
*Underlying measures are before the effect of exceptional and other items as analysed in note 4
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
STRATEGIC REPORT 
Our Business
01 24942.04   13/10/2016   Proof 6
C HA I R M AN ’ S  S T A TE M E NT
Animalcare has performed well during 
the financial year, particularly during 
the second half, with growth from 
all three product groups: Licensed 
Veterinary Medicines, Companion Animal 
Identification, and Animal Welfare 
Products. The core medicines group 
achieved increased sales of c8.0% during 
the year.
Financial Trading
Group revenue increased by 8.6% 
from £13.5m to £14.7m. This was 
achieved principally by increasing 
sales of Licensed Veterinary Medicines 
both in the UK and Export markets by 
over £650,000 combined. Incremental 
revenue of approximately £300,000 was 
also recognised from the introduction 
of compulsory microchipping in dogs 
during April which benefited the second 
half performance. Basic EPS increased 
from 12.1p to 12.5p. Cash generation 
has remained strong, with year end 
cash increasing from £5.8m to £7.1m. 
This has been achieved during a period 
of significant investment in product 
development to £1.6m together with 
recruiting more colleagues in all areas of 
the business to help drive future growth. 
P e o pl e
These good results are testament to the 
strength of our Senior Management Team 
which continues to flourish under the able 
leadership of our CEO Iain Menneer. We 
have further strengthened our product 
development, marketing, sales and 
distribution teams in order to continue to 
grow your business in the future.
P r od u c tDe v e lo pm e n t
Our European partners have more than 
filled the gap we had in our development 
pipeline during this financial year. This 
allowed your Company to increase sales 
of its generic drugs whilst we continued 
to progress our own development 
programme. The first products from our 
renewed development pipeline have been 
licensed and launched in the year and we 
expect further launches over the following 
two years.
Dividend
Given the strong cash generation during 
the financial year your Board proposes to 
increase the final dividend to 4.7 pence per 
share. With 1.8 pence paid as the interim 
dividend this takes the total for the year to 
6.5 pence per share representing growth of 
c7%. from 6.1 pence last year. This is well 
covered by both increased earnings and 
cash flow and still leaves sufficient cash to 
invest in our future.
P ros pec t s
Given the pipeline from both our in-house 
product development and that of our 
European partners, plus a much improved 
export business, your Board looks forward 
to continuing your Company’s record of 
consistent growth. This is being delivered 
by a stronger, more capable management 
team and committed and hard-working 
colleagues. I would like to personally thank 
them all for their dedication and hard work 
to the success of your business.
JAMES LAMBERT 
Non-Executive Chairman
“Our strategy is 
on track to build a 
strong business and 
invest in product 
development 
and geographic 
expansion.”
JAMES LAMBERT Chairman
02 Animalcare Group plc is a sales and marketing  
and product development company.
The UK pet medicines market has grown 
consistently over the last ten years at a 
Compound Annual Growth Rate of 5.2% 
demonstrating remarkable resilience in the 
challenging economic climate of the last  
eight years.
It is a highly regulated and specialist  
market with significant intellectual and 
financial barriers to entry. In addition, 
consolidation of pharmaceutical suppliers 
has made our significant and skilled  
sales and marketing function a rare and 
valuable asset.
As a result we believe there are four 
compelling reasons to invest in Animalcare 
Group plc:
 y Animalcare is a sustainable growing 
business (revenue +6.8% CAGR) in a 
growing market (+5.2% CAGR over ten 
years)
 y Animalcare is cash generative and 
debt-free
 y Animalcare is dividend paying and 
expects to maintain its current dividend 
policy during its investment phase
 y Animalcare is implementing a clear 
strategy to accelerate its growth over 
the next three to five years
1958 1988 1994 1999 2006 2008 2010
24942.04   13/10/2016   Proof 6
INVESTMENT CASE
ANIMALCARE
Timeline
Formed Vet Drug Company 
(veterinary wholesaler)
Genus plc formed from  
the break up of the  
Milk Marketing Board
Animal Health Division 
divested (excluding 
Animalcare)
Original Ritchey 
businesses divested 
to focus solely on the 
veterinary operations 
of Animalcare Ltd
Vet Drug Company forms 
product development 
company Animalcare Ltd
Vet Drug Company and 
Animalcare acquired  
by Genus plc to form  
Animal Health Division
Ritchey plc acquires 
Animalcare Ltd. The 
enlarged group subsequently 
commenced trading on 
AIM under the name of 
Animalcare Group plc
STRATEGIC REPORT 
Our Business
03
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR OUR MAIN LOCATION
Our head office and warehousing 
operation are both located in York, UK.
OUR DISTRIBUTION POINTS
Animalcare is building a strong network  
of distribution and development partners.
G R O U P  A T  A  G L ANCE
POTENTIAL NEW DISTRIBUTION TERRITORIES
24942.04   13/10/2016   Proof 6
Animalc ar eemplo y s63
people;withasalest eamof22
support edb yamark e tingt eam
of5.Thet echnic alandpr oduct
de v elopmen tt eamno wt ot als7.
Animalcare does not manufacture 
an yofitspr oducts,thesebeing
contract manufactured on its 
behalfb yar ang eofc ompanies
loc a t edpr edominan tlyin
mainlandEur ope.
Animalc ar e’ smainmark e tisthe
UKwithe xportsalest ot alling8%
ofr e v enues,deriv edfr omsaleson
dis tributioninIr eland,German y ,
Fr ance,Spain,theNe therlands,
P ortug al,BelgiumandIt aly .
Animalcare is a 
sales, marketing and 
product development 
business operating 
from its head office in 
York, North Yorkshire.
04 The product portfolio is divided into three groups; pharmaceuticals (Licensed 
Veterinary Medicines); pet microchips (Companion Animal Identification); and 
consumable items (Animal Welfare Products).
24942.04   13/10/2016   Proof 6
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
STRATEGIC REPORT 
Our Business
05
Market Overview
Total UK veterinary medicines market is 
worth approximately £625m, of which 
£344m is for companion animals (dogs, 
cats, horses and small mammals), with 
the whole animal medicines market 
growing by a little over 1% and a little 
under 1% for companion animals  
(www.noah.co.uk).
Market Overview
Annual UK sales volume estimated to 
reduce from approximately 1,300,000 
microchips for companion animals 
(excluding equine) to 810,000 in the 
aftermath of compulsory microchipping. 
Two main microchip database providers 
servicing the UK (The Kennel Club’s 
Petlog ~7.7m pets, Animalcare’s Anibase 
~4.8m pets), with several much smaller 
operators.
Market Overview
This grouping covers a wide range of 
products and consequently suppliers. 
Accessing the veterinary market 
through different channels, for example 
established veterinary and human 
healthcare wholesalers, internet providers 
and ad hoc local suppliers. Accordingly, 
this fragmented market is very hard to 
quantify. 
LICENSED  
VETERINARY  
MEDICINES
 
COMPANION  
ANIMAL  
IDENTIFICATION
ANIMAL WELFARE 
PRODUCTS
Revenue
 £9.2m
Revenue
 £2.7m
Revenue
 £2.8m
63%
63% (2015)   61% (2014) 17% (2015)   19% (2014) 20% (2015)   20% (2014)
18% 19%
Opera t i on a lAch i e v em en t s
 f Str ongsalesofthefiv ene wpr oducts
launchedla t einFY15
 f LeadingpositionintheUKanaes the tic
and analgesic market by breadth and 
v olumeofsales.
 f Thr eepr oductlicencesgr an t edfr om
pr oductde v elopmen tpipeline.
Opera t i on a lAch i e v em en t s
 f T ookfulladv an t ag eofc ompulsor y
micr ochippingf ordogsopportunity
withmicr ochipsalesup15%.
 f Anibase,micr ochipda t abase,r eceiv ed
c1,100c allsada y ,thr eetimesnormal
le v els,withser vicele v elsmain t ained
thr oughout.
 f Launchofne wIden tichipUltr a,a
smallermicr ochip,t oaddr esschang e
inmark e tt o w ar dssmallermicr ochip s.
Opera t i on a lAch i e v em en t s
 f Str ongr e v enuegr o w th(+10%)of
infusion accessories range to further 
c omplemen tourmark e tleadingI. V .
fluidpharmaceutic als.
 f Ne wimpr o v edhar dsurf acecleaning
pr oductslaunchedintheperiodand
c on tributingt oh y giener ang esales
incr easeof12.5%.
 Read more online at:  
www.animalcaregroup.co.uk
 R eadmor eabout ourS tr a t egyonpag es08t o09 “This is the Animalcare Group 
plc Business Model, which 
seeks to outline how we 
create, deliver and capture 
shareholder value.”
De v e lo pm e n tT e a m
Our in-house and partner developers identify pharmaceutical 
products to develop undifferentiated, differentiated and 
enhanced generics. Each project is assessed against technical and 
commercial criteria to determine its suitability to become a full 
development project. 
Distribution
Animalcare sells its products to veterinary wholesalers in 
bulk. These products are then sold by the wholesalers to their 
veterinary practice customers. Similarly, some pharmaceutical 
products are sold to our partners to distribute in their home 
territories in Europe and ROW.
Sales and Marketing Team
Our marketing team provides promotional literature for our sales 
team and support materials to help veterinary professionals 
explain medical conditions and therapies to their pet owning 
clients. Our highly trained sales team call on veterinary practices 
across the UK to promote our products and services, thereby 
pulling demand through the veterinary wholesalers. The regular 
visits from our sales representatives mean we have first hand 
experience of what our customers need, and can channel their 
feedback back to our development team.
P e tM i c r o c h i pD a t a b a s e
Our database staff receive over 100,000 calls a year from owners 
updating their contact details and animal welfare professionals 
wanting to reunite lost pets.
Primary markets: Supply of goods and services to veterinary 
professionals.
Animal types: Primarily companion animals (dogs, cats, horses 
and small mammals). 
Products and services: Licensed Veterinary Medicines, Companion 
Animal Identification and Animal Welfare Products. 
Geographic reach: Currently 92% revenue in the UK; 8% in EU 
with expansion plans to further penetrate the EU and ROW.
 y Robust process of identification of generic pharmaceuticals 
 y Core competence in pharmaceutical licence applications 
 y Broad experience of pharmaceutical formulation and contract 
manufacturers
 y Strong EU partner network for pharmaceutical co-development 
projects and quid pro quo distribution
 y Extensive reach of sales and marketing into UK veterinary 
practice customer-base
STRENGTH THROUGH 
Our People
24942.04   13/10/2016   Proof 6
B U SI N ESS  MOD E L
06 PRODUCT 
ACQUISITION
PRODUCTS ON 
DISTRIBUTION
DISTRIBUTED IN EU 
& ROW THROUGH 
PARTNER NETWORK
UK VETERINARY 
PRACTICES
PET OWNERS
RECRUITMENT & 
INDUCTION
CAREER & 
SUCCESSION 
PLANNING
PERFORMANCE 
MANAGEMENT
REWARD & 
RECOGNITION
PEOPLE 
DEVELOPMENT
T alent Management 
PROGRAMME
The TMP is designed to recognise, develop 
and appreciate all the various talents we 
have and to build on them, to make us 
even more successful
IN-HOUSE 
PRODUCT 
DEVELOPMENT 
PIPELINE
ANIMALCARE-
OWNED PRODUCTS
UK VETERINARY 
WHOLESALERS
24942.04   13/10/2016   Proof 6
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
STRATEGIC REPORT 
Our Business
07 24942.04   13/10/2016   Proof 6
S TR A TE G Y
Introduction
The UK veterinary market, whilst still 
relatively fragmented, is consolidating at an 
increasing rate. In the last decade we have 
experienced the inception of the corporate 
consolidator, be it stock market or private 
equity financed. The early players have 
increased significantly in size and now 
there are several smaller players entering 
the market. Over that ten year period 
we have also witnessed the saturation of 
the buying group model, where practices 
maintain their independence but join a 
group to improve their buying power. The 
buying groups offer additional central 
functions to differentiate themselves. As 
this space has become saturated it is now 
commonplace to see practices lured from 
one buying group to another. An example 
of the market maturing further, in the 
last 12 months one leading corporate 
has acquired a buying group and one of 
the main UK veterinary wholesalers has 
acquired two of the largest buying groups.
As in the human pharmaceutical arena, 
there are fewer and fewer original 
medicines being discovered and registered. 
The knock-on effect is that there are 
subsequently fewer products of which to 
make a generic. Also, as seen in human 
pharma, as opportunities become scarcer, 
global players acquire or launch their own 
range of generics.
For example, Animalcare was the first 
company in Europe to launch a generic 
buprenorphine in 2008 into a sub-£2m 
market. There are now five generic 
competitors in that market.
C u r r e n tM a r k e tDe v e lo pm e n t s
Two years ago saw the acquisition of 
Novartis Animal Health by Ely Lilly/Elanco. 
This year we are awaiting the expected 
regulatory clearance for the asset swap 
that will see Sanofi’s animal health 
business, Merial, taken over by Boehringer 
Ingelheim, catapulting the latter from 
number six to the second biggest in the 
world with a combined annual turnover of 
approximately £3.3 billion; and the largest 
animal health business in Europe.
The effect of this M&A activity is mixed for 
Animalcare. Whilst it is clear that the larger 
and larger global companies do not and 
cannot focus on the tail of their expanding 
product ranges, the sheer size of the 
newly combined product range is hard to 
compete against. It has also been hard to 
gain access to the product disposal fall-out 
from the M&A. 
There are many examples in business that 
show the space and fertile environment 
created when consolidation occurs at the 
top end of a market. There is still a place 
and space for Animalcare in this evolving 
market but it was these market dynamics 
that made it clear that we had to invest 
in our product pipeline in order to offer 
our customers extensive product ranges 
and to renew the range as products move 
though their product life cycles. Investing 
in enhanced generics and furthermore in 
innovative, novel products will strengthen 
Animalcare’s position in the market and 
in commercial transactions, moving the 
discussion away from price. The additional 
time to develop such products requires 
Animalcare to invest in these projects now. 
Even before the referendum vote in June, 
it was clear that Animalcare had great 
potential to open up to markets further 
south and east in Europe but importantly 
beyond our continent. 
In conclusion we are making the most of 
what we have and doing what we do, only 
better. 
08 Strategic Objectives
We have developed four strategic themes to maximise 
Animalcare’s growth in these market conditions.
Our strategy for 2016 to 2018 is to:
Progress Against Strategic Themes
              Product Development Pipeline 
The diagram right highlights the number of projects 
at each stage of the development pipeline. Progress is 
evident by the comparison to the number at the same 
time one year ago.
               Identifying Novel  
Pharmaceuticals to License
The investment in the technical and product 
development team has given us the extra capacity to 
actively search out novel, ideally patent protected, 
products to acquire or license. Several such 
opportunities have progressed to co-development 
projects or commercial negotiation during the period.
              Innovating in Companion  
Animal Identification
In preparation for the recent implementation of 
compulsory microchipping of dogs in England, 
Scotland and Wales, and the anticipated disruption 
to the market, we have reviewed our entire business 
model. As a result one project has started detailed 
planning in Q1 of the new financial year and another 
will be executed in Q3.
             Increasing Sales Outside the UK
We have had a very successful first year implementing 
our planned expansion into more territories in Europe 
and the ROW , with revenues increased by 23%. 
Further progress will be made during the next two 
years as we gain the regulatory certification in each 
new territory.
Identify product candidates to 
maintain flow into and through 
development pipeline
1
Increase efforts to license in new 
pharmaceutical products
2
Assess opportunities to innovate 
and strengthen Companion 
Animal Identification group
3
Increase the sales of our current 
products outside the UK
4
4
1
2
3
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
24942.04   13/10/2016   Proof 6
Identification
Feasibility
Development
Regulatory
Commercial
2–3 years
to maturity
Candidate identification and selection
2016: 14 Projects 
2015: 28 Projects
Investment case prepared based on 
development, contract manufacturing, active 
ingredient source and market intelligence
2016: 10 Projects 
2015: 9 Projects
Data generated from manufacturing  
and clinical trials
2016: 12 Projects 
2015: 7 Projects
Licence application dossier  
prepared and submitted
2016: 2 NPD + 3 EPD Projects 
2015: 4 NPD + 3 EPD Projects
New product launched
2016: 3 Projects 
2015: 0 Projects
 Read more online at: www.animalcaregroup.co.uk
STRATEGIC REPORT 
Our Business
09 24942.04   13/10/2016   Proof 6
KEY PERFORMANCE INDICATORS
The Group utilises the following Key Performance Indicators 
(KPIs) to measure and monitor progress against our strategic 
and financial targets. 
KPI Why this is important Past performance Link to strategy
Turnover growth 
8.6%
Revenue growth encompasses all aspects of our 
strategy and demonstrates our success in key 
areas including increasing flow into and through 
our development pipeline and increasing sales 
both inside and outside the UK. 
1
 
2
 
3
 
4
Basic Underlying 
Earnings per share 
(“EPS”)
13.0p
Underlying EPS is a key measure of our overall 
performance and the return we generate for 
shareholders before exceptional items. 
1
 
2
 
3
 
4
Cash generated  
by operations
£4.6m
Cash generation is a measure of the quality of 
earnings and having strong operating cash flow 
enables the business to generate the funds 
needed to invest in our product development 
pipeline, maintain its strong balance sheet and 
deliver dividend flow through our investment 
phase. 
1
 
2
 
3
 
Product 
development 
expenditure
£1.6m
It is critical that Animalcare reinvests its free 
cash to develop and advance our product 
development pipeline to support future organic 
growth in line with the strategic objectives. 
1
  
12.9
2014
14.7
2016
13.5
2015
1.6
2014
4.6
2016
4.5
2015
10.9
2014
13.0
2016
12.6
2015
0.2
2014
1.6
2016
0.8
2015
10 24942.04   13/10/2016   Proof 6
Introduction
I am very pleased with the progress we 
have made this year. Our revenues have 
continued to grow, +8.6% to £14.7m (2015: 
£13.5m). Our export strategy is already 
making early gains from ‘low hanging 
fruit’ with more to follow once product 
registrations have been made in the 
various territories we serve.
We have been in an investment phase for 
almost three years now. As expected the 
products from that investment are now 
starting to flow from the development 
pipeline and, at the same time, our core 
business continues to perform well in a 
tough commercial environment. Projects 
further back in the development pipeline 
are also progressing well in accordance 
with plan.
Our shareholders can be assured that our 
plans are on track and we are confident 
they we will continue to deliver.
Momentum in the period has been 
supported by further work to ensure the 
business has a strong platform for growth.
Bu s in essR e vi e w
Growth has come from all areas of the 
business.
Licensed Veterinary Medicines
The Licensed Veterinary Medicines group 
continued to grow strongly in the financial 
year increasing by 7.7% to over £9.2m 
(2015: £8.6m). In general the new products 
we have launched over the last five years 
continue to gain market share and grow 
revenues, while the older products in the 
final phases of their product life cycles are 
being eroded by commercial pressures 
and by substitution. However, five new 
pharmaceutical products were launched 
on distribution late in the prior year. With 
no new products to launch in this period 
this allowed us to focus on consolidating 
our market position for these products; the 
combined revenues of these five products 
increased by 262% to £0.95m (2015: 
£0.26m).
C o mp a n i o nA n i m a lI d e n t i f i c at i o n
Compulsory microchipping of dogs became 
law in England, Scotland and Wales in April 
2016. Not only is it a legal requirement for 
all dogs over the age of eight weeks to be 
microchipped it is also mandatory for the 
dog’s keeper’s name and contact details 
to be registered on a DEFRA approved 
database. We did not experience any uplift 
in microchip sales or database registrations 
until April when we had an unprecedented 
surge in both. Through careful planning 
and the considerable efforts of our staff 
and suppliers we managed to supply all 
our veterinary customers and ensure all 
registrations were fulfilled in a timely 
manner, unlike several of our competitors. 
It is too soon after the disruption to the 
market caused by this legislative change 
to conclude the long-term impact, but we 
believe there will be a lasting reduction 
in realised prices and microchip volumes. 
This was predicted and so plans are in the 
advanced stage to evolve our business 
models and market offering. 
CH I E F  EX E C UTIVE ’ S  R EVI EW
“We have made 
great progress 
in the year with 
increased revenues, 
our development 
pipeline delivering, 
exports growing and 
exploring exciting 
opportunities to 
invest in innovation.”
IAIN MENNEER Chief Executive Officer
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
11
STRATEGIC REPORT 
Our Performance 24942.04   13/10/2016   Proof 6
Animal Welfare Products
The Animal Welfare Product group grew 
again in the period with an increase of 
5.1% to £2.8m (2015: £2.6m). Our Infusion 
Accessories range grew by almost 10% as 
a result of sales and marketing focus and 
withdrawal of a modest competitor during 
the year. The Hygiene Products range grew 
too as a result of renewed focus following 
the launch of a new range of hard surface 
cleaners in the period which increased by 
12% to £0.67m. 
E xp o r t
Martin Gore joined Animalcare on 1
st
 
July 2015 in the role of Head of Export 
Development to focus on growing our 
product distribution in existing and 
new territories in Europe as this had 
underperformed in the past due to lack of 
focus. A year on, this has proved to be a 
great success not only growing revenues of 
existing products in existing territories 
but also sales of existing over-the-counter 
veterinary medicines products in new 
territories. This has resulted in export sales 
growth of almost 23% on the prior period. 
Martin has signed distribution agreements 
for some of our veterinary licensed 
products in territories well beyond Europe. 
Being regulated products there will be a 
modest delay until first sales while local 
licences are secured.
P e o pl e
Animalcare, like any organisation, is only 
as good as its employees. Therefore we 
have worked hard over the last three 
years during our investment phase to 
make sure we have the right people in the 
right roles to deliver our plan. We are well 
through this process to ensure we have the 
necessary roles covered and have made 
further important progress during the 
period. Underpinning the changes we have 
made to our team was the introduction 
of a Talent Management Programme 
which is a framework to make sure we 
recruit, develop, reward and engage all our 
employees as best we can.
In addition to recruitment in export 
sales, we have further strengthened our 
product development and registration 
team with appointments in both areas. To 
reflect the evolution of the UK veterinary 
customers towards consolidated corporate 
customers and buying groups we have 
strengthened our sales team yet further 
with experienced key account specialists 
now on the team.
We have conducted a review of our supply 
chain and identified key areas to improve 
supplier performance and demand 
planning. Consequently we have started to 
build a specialist supply chain team late in 
the period.
CH I E F  EX E C UTIVE ’ S  R EVI EW CONTINUED
12 24942.04   13/10/2016   Proof 6
P r od u c tDe v e lo pm e n t
Three years ago we overhauled our 
product development activities and 
embarked on a large number of new 
projects. These projects were expected to 
take approximately three years to reach 
commercial launch. It is therefore very 
satisfying to see the successful registration 
of three products in the period, right on 
target. 
Two years ago Animalcare took the 
decision to move the contract manufacture 
of its largest product, Aqupharm I.V. Fluids, 
away from a global manufacturer to one 
better suited in terms of flexibility, cost, 
size and culture. This was the largest 
development and regulatory project 
tackled to date. I am pleased to report 
that the project went smoothly and was 
fully implemented in H2 FY16 with no 
product supply disruption or impact on our 
customers.
The impact of the contract manufacturing 
move detailed above meant the loss 
of UK distribution rights for a general 
anaesthetic, Isocare. We embarked on a 
project to register our own product. The 
product was successfully registered in 
H2 and has since been launched to the 
market, again with no disruption, in Q1 
FY17.
Both these products were solely UK 
licensed so we took the opportunity to 
extend the product authorisations to 
several European territories. 
Another product successfully registered 
in H2 was Acecare, a premedicant to 
complement our extensive anaesthetic 
and analgesic range. It is the first generic 
acepromazine on the UK veterinary market.
In all we submitted five licence applications 
during the period, a record number for 
Animalcare. Furthermore, during the 
period we prepared, entirely in-house, 
Animalcare’s first dossier submission to 
the veterinary regulatory authorities. Until 
now we have relied to a varying degree on 
external consultancies. This is a measure 
of the level of experience and quality of 
personnel that now work in the technical 
and regulatory team. 
The further strengthening of our product 
development and registration function 
gives us greater capacity to uncover novel 
and more complex product opportunities 
by expanding our network. We have 
a growing database of such ideas. We 
are also attracting more distribution 
opportunities from a wider pool of animal 
health companies, most from outside the 
UK.
Br e x it
The referendum result in June 2016 
will inevitably have an impact on our 
business, although the extent of this is, 
of course, still unclear. The timing of the 
result allowed us to put plans in place to 
incorporate the initial currency instability 
into our new financial year and we will 
continue to monitor the situation and take 
necessary and available action.
The encouraging early progress of our 
sales in territories outside Europe will go 
some way to diversifying our markets in 
the short-term. The launch of products will 
take one to two years to materialise due 
to the various pharmaceutical regulatory 
requirements in place.
Subsequent changes to the European 
pharmaceutical regulatory framework are 
of course currently unknown but we will 
monitor this closely and put plans in place 
to protect our business. 
Summary and Outlook
I am confident that we have built a strong 
and scalable platform in the business. 
We will continue to focus hard on our 
in-house development pipeline and our 
efforts to source novel products. The 
strong progress made on our distribution 
territory expansion will be cemented 
and we will make further progress with 
regulatory registrations through the year. 
We recognise that it is vital for the future 
of the business that we identify the right 
products and invest in novel products. 
Animalcare will continue to be active on 
this key strategic front. 
Whilst the animal health industry evolves 
with customer consolidations and supplier 
M&A we have shown that we can continue 
to grow organically through launching new 
products and providing a superior service 
to our customers.
With the first products successfully through 
our development pipeline we will start 
to see early revenue growth with more 
significant impact in subsequent periods. 
More product registrations are expected in 
the current period. 
In summary, Animalcare is in good health, 
generating strong cash flows to invest in 
the business and at such a rate that we 
are in a position to step up our investment 
in products and wider opportunities to 
provide the long-term success of the 
business.
IAIN MENNEER 
Chief Executive Officer
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
13
STRATEGIC REPORT 
Our Performance 24942.04   13/10/2016   Proof 6
CH I E F  F I NANCIAL  OF F ICE R ’ S  R EVI EW
Presentation of Results
We present our financial results on 
two bases. Underlying results show the 
performance of the business before 
exceptional and other items since the 
Directors believe this provides a clearer 
understanding of business performance. 
IFRS results include these items to give the 
statutory results.
Overview of Financial Results
The Group has delivered another year of 
strong top line growth whilst we continue 
to invest in our business. Underlying 
operating profit increased by 2.6% 
compared with previous year to £3.2m, 
slightly ahead of recently revised market 
forecasts of £3.1m.
We have maintained sound financial 
discipline and our balance sheet strength 
continues to build, reflecting the cash 
generative nature of our operations. Group 
cash balances increased to £7.1m as at 
30
th
 June 2016, providing the business 
with the funds we need to continue the 
momentum of our product development 
pipeline and support future growth. 
“2016 was a strong 
year for the Group 
achieving underlying 
operating profit 
ahead of market 
expectations .”
CHRIS BREWSTER Chief Financial Officer
Revenue 
£’000 2016 2015 % change
Licensed Veterinary Medicines 9,238 8,579 7.7%
Companion Animal Identification 2,680 2,309 16.1%
Animal Welfare Products 2,783 2,648 5.1%
Total Revenue 14,701 13,536 8.6%
Revenue increased by 8.6% to £14.7m 
(2015: £13.5m) driven by growth in the UK 
of 7.2% and outside the UK of 25.8%. As a 
result export revenues contributed 8.2% 
(2015: 7.1%) of Group revenues. 
The Licensed Veterinary Medicines group, 
which represents 63% of total revenue, 
continued its strong track record of growth, 
with sales up 7.7% to £9.2m, primarily 
reflecting full year sales of new products 
launched during FY15 which increased 
by £0.7m. Like-for-like sales declined by 
0.3% with growth in our export business 
offsetting the prior year UK c£0.2m non-
recurring first half benefit from sales of 
Buprecare in the UK as a result of supply 
issues with a competitor. 
Companion Animal Identification sales 
increased by 16.1%. Legislation has been 
implemented making it compulsory to 
microchip dogs in the UK from April 2016 
resulting in an incremental sales benefit  
of c£0.3m. Price competition amongst 
suppliers has adversely impacted gross 
margins as noted below. 
Our Animal Welfare Products group grew 
by 5.1% driven by our growing Infusion 
Accessories range, which represents 
around 56% of the £2.8m sales. 
The financial performance of each product 
group is reviewed in more detail within 
the Business Review section of the Chief 
Executive’s Review.
14 24942.04   13/10/2016   Proof 6
G ro ssP ro f it
2016 2015 % change
Gross Profit (£’000) 7,999 7,573 5.6%
Gross Margin (%) 54.4% 56.0% (1.6ppts)
The strong sales performance led to gross profit increasing by 5.6% on prior year to 
£8.0m however our gross margin decreased from 56.0% to 54.4%. Microchip pricing was 
particularly competitive throughout the majority of the financial year in the run up to 
compulsory microchipping. Within our Licensed Veterinary Medicines group, overall gross 
margin has remained consistent with prior year.
We anticipate gross margins to improve across the business during FY17 through a 
combination of favourable sales mix and cost of goods initiatives. 
Ope rat ingR es ult s
£’000 2016 2015 % change
Underlying operating profit 3,190 3,110 2.6%
Exceptional and other items (173) (110)
Reported operating profit  3,017 3,000 0.6%
Operating margin % 20.5% 22.2% (1.7ppts)
Reported profit after tax 2,634 2,534 4.0%
Basic underlying EPS (p) 13.0 12.6 3.2%
Basic EPS (p) 12.5 12.1 3.3%
Cash Flow
The Group cash position grew by £1.3m 
to £7.1m as at 30
th
 June 2016, with the 
business continuing to generate strong 
levels of operating cash. We maintain focus 
on robust working capital management 
however expect a net investment within 
working capital during FY17 to support 
growth. 
The strong momentum in building value 
within our product development pipeline 
continues, with planned investment 
substantially increasing as shown in the 
chart below.
0.2
2014
1.6
2016
0.8
2015
Product 
Development 
Expenditure
£m
Summary and Outlook
Whilst the decision by the people of the 
UK to leave the EU has not as yet resulted 
in any current legal or regulatory change, 
it is clear there are immediate secondary 
effects of this decision, in particular 
political and economic uncertainty, as 
well as significant exchange rate volatility. 
Nevertheless, as yet we have not observed 
major disruption to our operating activities 
and our strategic objectives remain at this 
present time unchanged – we will continue 
to invest in our business for future 
growth. Sterling weakness has impacted 
on our costs of goods, in particular our 
pharmaceutical products imported from 
mainland Europe. The business is taking 
steps to mitigate certain of this exposure 
and the growth in our export business 
will provide some natural hedge. Our 
strong balance sheet will help absorb 
the uncertainty in the macroeconomic 
environment. 
Overall the Group continues to make 
good progress in executing its strategy 
to drive future growth, which is reflected 
in our financial performance and level of 
investment in the business. 
CHRIS BREWSTER 
Chief Financial Officer
Underlying operating profit increased by 
2.6% to £3.2m and our operating margin 
reduced by 170 basis points to 20.5%, the 
latter reflecting the continuing investment 
in our business, in particular our people for 
which employee costs increased by £0.3m, 
to position the business for future growth. 
Exceptional and other items principally 
incorporate the amortisation of acquired 
intangibles as detailed in note 4.
Our effective tax rate has reduced from 
15.8% to 14.6% as a result of the significant 
increase in product development 
investment on which research and 
development tax credits are claimed for 
qualifying expenditure. 
Reflecting all of the above, reported profit 
after tax was up 4.0% to £2.6m (2015: 
£2.5m).
Basic underlying EPS improved by 3.2% to 
13.0 pence (2015: 12.6 pence). Basic EPS, 
which incorporates non-underlying items, 
rose by approximately the same amount to 
12.5 pence (2015: 12.1 pence). 
Dividends
The Board is proposing a final dividend in 
respect of the year of 4.7 pence per share, 
giving a total dividend of 6.5 pence per 
share for 2016 (2015: 6.1 pence per share). 
This final dividend is subject to shareholder 
approval at the Annual General Meeting 
on 15
th
 November 2016 and will be paid 
on 25
th
 November 2016 to shareholders 
on the register at the close of business on 
21
st
 October 2016.
The ordinary shares will become ex-
dividend on 20
th
 October 2016. 
The Board will continue to monitor 
the Group’s cash position to ensure an 
appropriate balance between investment 
for future growth and dividend flow to 
deliver overall value for our shareholders.
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
15
STRATEGIC REPORT 
Our Performance 24942.04   13/10/2016   Proof 6
PRINCIPAL RISKS
Risk Management Framework
The Board is responsible for maintaining and reviewing the effectiveness of our risk management activities, intended to monitor and 
mitigate, rather than eliminate, the significant risks that the Group is exposed to. Animalcare has implemented policies and procedures 
to address risk including with respect to product development, operations and regulatory compliance. 
In accordance with our governance practices, the Audit Committee supports the Board of Directors in monitoring the Group’s risk 
appetite and exposures, and is responsible for reviewing the effectiveness of the risk management and internal control systems.
Our Risks
A summary of the principal risks together with an explanation of how the Group mitigates each risk their trend and linkage to our 
strategy are set out in the table below.
Key
Up Down Same
Risk Alignment to strategy Potential impact Mitigation Trend
Product 
d e v e lo pm e n tr i s k
Pharmaceutical 
development is 
complex, involving 
technical, regulatory and 
financial risk. Failure to 
successfully deliver new 
product development 
projects could have a 
material impact on the 
Group’s results and 
damage our market 
position and relationship 
with our customers.
1
  
2
Complete failure of a 
project or failure to meet 
commercial expectations 
due to for example 
competitor launches 
(generic or novel) would 
result in impairment of 
capitalised development 
costs.
Following careful 
selection of development 
strategy, each new 
product development 
project undergoes 
rigorous review by the 
cross-discipline senior 
management team with 
final sign-off by the 
Board. The pipeline is 
reviewed regularly, with 
corresponding updates 
provided to the Board, 
to ensure each project 
is progressing according 
to plan. 
The Group 
continues and 
plans to commit 
significant 
resources 
to expand 
our product 
portfolio.
Market risk
The veterinary market 
continues to see a 
customer-base that is 
consolidating via the 
emergence of buying 
groups and corporate 
customers who are 
looking for value from the 
products and services we 
provide.
1
  
2
  
3
  
4
The growth of corporate 
customers and buying 
groups presents an 
opportunity for growth 
but at the expense of 
margins.
We continue to develop 
and strengthen our sales 
and marketing teams in 
respect of key account 
support and achieve our 
goal to better serve our 
changing customer-base. 
16 24942.04   13/10/2016   Proof 6
Risk Alignment to strategy Potential impact Mitigation Trend
Distribution risk
The supply of products to 
our customers in a timely 
manner is vital to the 
success of the Group.
The Group does not 
manufacture any of 
its own products and 
is solely reliant on an 
increasing third party 
supplier and contract 
manufacturer base across 
the UK and Europe. 
1
  
3
  
4
Any disruption to the 
relationship with our 
key supply partners or 
interruption to the supply 
chain could result in 
significant loss of revenue 
and damage the Group’s 
reputation with its 
customers.
Given the increasing 
complexity and diversity 
in our supply chain, we 
have identified the need 
for increased specialist 
resource in this area, the 
recruitment for which is 
ongoing. 
Supply chain risk 
mitigation strategies 
include close monitoring 
of supplier performance 
and maintenance of 
adequate inventories, 
including safety 
stock held by our 
suppliers, based on risk 
assessments. 
P e o pl er i s k
The Group has a small 
Executive and senior 
management team 
whose skills, knowledge, 
experience and 
performance make a 
large contribution to the 
success of the Group. 
1
  
2
  
4
Failure to retain and 
attract high calibre 
individuals could 
impact the successful 
implementation of our 
strategy. 
Remuneration packages 
are reviewed annually 
to help ensure that the 
Group has the right mix 
of base salary, short-term 
and long-term incentives 
to attract, retain and 
reward key employees 
to execute our growth 
strategy.
Furthermore, we have 
introduced a Talent 
Management Programme 
to help engage all of our 
employees.
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
17
STRATEGIC REPORT 
Our Performance 24942.04   13/10/2016   Proof 6
BO AR D  OF  DI R E C TORS
James Lambert
Non-Executive Chairman
Length of service
8 years; appointed to the Board in 2008
C o mm i t t e em e m b e r sh i p
Audit Committee and Nomination 
Committee
K e ysk i ll san de x p e r i e n c e
James was appointed Chairman of 
Animalcare in 2008 when it was acquired 
by Ritchey plc for whom he was Chairman 
from 2005 and a NED from 2003. Before 
this, in 1985, he was Co-Founder and CEO 
for 28 years of R&R Ice Cream and retired 
as Executive Chairman in 2014, which 
during this time became one of Britain’s 
most successful businesses. James was 
appointed Chairman of Burton’s Biscuits in 
2013, Chairman of Inspired Pet Nutrition 
in 2015, Chairman of Whitman Howard in 
2016 and NED of Story Homes in 2016. He 
also won the EY UK Entrepreneur of the 
Year award in 2014 and represented the 
UK in the world finals. James has spent a 
lifetime helping build, develop and manage 
successful businesses enabling them to 
reach their full potential and give them 
strategic direction. 
Nick Downshire
Non-Executive Director 
Length of service
8 years; appointed to the Board in 2008
C o mm i t t e em e m b e r sh i p
Chair of the Audit Committee and  
Remuneration Committee
K e ysk i ll san de x p e r i e n c e
Nick joined the Board of Animalcare 
when it was acquired by Ritchey plc for 
whom he acted as a director since 1998. 
Nick is a qualified chartered accountant 
who worked in corporate finance and 
venture capital before becoming the 
finance director of a software company. 
He has held non-executive directorships 
in a diverse range of businesses in the 
insurance, agricultural, hospitality, 
education and technology sectors. He 
runs an estate in Yorkshire and is also 
Chairman of the CLA for Yorkshire and 
also chairs their Agriculture and Land Use 
national committee, as well as acting as 
a Trustee for a number of charitable and 
land related trusts. His experience with 
other organisations and his professional 
background assist him to chair the audit 
committee and bring objectivity and 
analysis to the remuneration committee.
Ray Harding
Non-Executive Director 
Length of service
5 years; appointed to the Board in 2011
C o mm i t t e em e m b e r sh i p
Chair of the Nomination Committee and 
Remuneration Committee
K e ysk i ll san de x p e r i e n c e
A qualified veterinarian Ray has worked 
in the veterinary pharmaceutical industry 
since 1979 in a number of technical 
and product development roles in 
several major, global, research-based 
companies. He established the team 
at Cyton Biosciences Ltd in 1997 to 
provide specialist services in new product 
development and registration of veterinary 
medicines in Europe. He left the company 
in 2012 to take the role of independent 
consultant. Appointed in 2011, he brings a 
unique technical expertise to the board of 
Animalcare with his extensive international 
experience of the development and 
regulation of veterinary medicines and 
the commercial environment in which 
the company operates. In addition he 
provides an independent and objective role 
as chair of the Board Remuneration and 
Nomination Committees.
18 24942.04   13/10/2016   Proof 6
Iain Menneer
Chief Executive Officer
Length of service
13 years; appointed to the Board in 2011
C o mm i t t e em e m b e r sh i p
Secretary of the Nomination Committee 
and Remuneration Committee by invitation
K e ysk i ll san de x p e r i e n c e
Iain gained his PhD in chemistry in 1996. 
He worked in product and technical 
development in the brewing industry, 
first at an independent consultancy 
then at Bass Brewers Ltd before 
moving to the University of York in a 
business development role in their 
technology transfer department. Iain 
joined Animalcare in 2003 and has since 
held positions in marketing, business 
development and sales, including an 
instrumental role in the new product 
development pipeline. Iain was promoted 
to the Board as Director of Marketing in 
July 2011. Iain was appointed Managing 
Director of Animalcare Ltd in March 
2012 and subsequently Chief Executive 
Officer in January 2013. Iain has 
extensive experience of the Animalcare 
business, the animal health industry and 
pharmaceutical development. Iain has 
lead the transformation of the business 
infrastructure over the last three years.
Chris Brewster
Chief Financial Officer  
and Company Secretary
Length of service
4 years; appointed to the Board in 2012
C o mm i t t e em e m b e r sh i p
By invitation
K e ysk i ll san de x p e r i e n c e
Chris joined the Board as Chief Financial 
Officer in June 2012. He has a broad 
range of experience gained during his 
ten years’ working across a number of 
functions at KPMG and through his role 
as Group Accounting Manager at Findus 
Group. Since joining, Chris has developed 
the systems, controls and management 
information needed to support the growth 
and strategy of the business. More recently 
Chris has taken responsibility for leading 
the changes required within the supply 
chain function to provide a robust platform 
for growth. 
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
19
OUR GOVERNANCE 24942.04   13/10/2016   Proof 6
C O R P O R A TE  G O VE R N A N C E
Whilst the Group is listed on AIM, it is not required to comply with the provisions of the UK Corporate Governance Code (“the Code”). 
The Board, however, is committed to a high standard of corporate governance across the Group, recognising that it is important in 
protecting shareholders’ interests and the long-term success of the Group. It has therefore adopted some of the principles of the Code 
so far as the Board consider practicable and appropriate to the size of the Group.
B o a r da n dC o m m i t t e eS t r u c t u r e
B o a r do fD i r e c t o r s
The Board, which is headed by the Chairman, comprises five 
Directors, three of whom are non-executive. Directors’ profiles are 
detailed on pages 18 and 19. The Board meet at least seven times 
throughout the year, with further ad hoc meetings as required. 
Audit Committee
Through the Audit Committee, the Directors ensure the integrity 
of financial information, the effectiveness of the financial controls 
and the internal control and risk management systems. The Audit 
Committee is composed of two Non-Executive Directors including 
Nick Downshire who has been appointed Chairman. The Chief 
Financial Officer and external auditors attend by invitation.
Nomination Committee
The Company has established a Nomination Committee currently 
composed of two Non-Executive Directors including Ray Harding 
as Chair. Meetings are arranged as necessary. The Committee 
is responsible for nominating candidates (both Executive and 
Non-Executive) for the approval of the Board, to fill vacancies or 
appoint additional persons to the Board. 
All Directors are required to seek election by shareholders at 
the first opportunity after their appointment and must stand for 
re-election to the Board every three years under the Company’s 
Articles of Association.
Remuneration Committee
The members of the Remuneration Committee are Ray 
Harding (Chairman) and Nick Downshire. Under its Terms of 
Reference, the Remuneration Committee is required to meet 
at least twice a year and at such times as the Chairman of the 
Committee shall think fit.
The Committee’s primary responsibilities are to set key 
performance targets for Executive Directors, assess executive 
remuneration against targets, and ensure that remuneration 
standards at the Company are in line with best practice and 
guidance. During 2016, the Committee sought external guidance 
for the setting of FY17 remuneration. Further, during 2014 the 
advice of KPMG LLP was taken to provide guidance on the Group’s 
Long Term Incentive Plan. The Remuneration Committee reports 
on its activities to the Board meeting immediately following the 
committee’s meetings.
Senior Management Team
This comprises six senior managers and the CFO and is chaired 
by the CEO. The SMT meet monthly to consider in particular 
strategic and operational plans, monitor operating and financial 
performance and assess and manage business risk. 
TO BE DRAWN
Audit
Senior
Management Team
Board of Directors
CEO
20 24942.04   13/10/2016   Proof 6
DI R E C T OR S ’  R E P OR T
The Directors present their Annual Report on the affairs of the 
Group together with the financial statements and auditor’s report 
for the year ended 30
th
 June 2016.
P r i n ci p a lA c t i vi t i e s
The principal activity of the Group during the year was the 
development, sale and distribution of licensed veterinary 
pharmaceuticals and identification products and services to 
companion animal veterinary markets. 
B u s i n e s sR e v i e wa n dF u t u r eDe v e l o p m e n t s
A review of the business and future developments is provided 
in the Chairman’s Statement, Chief Executive’s Review and Chief 
Financial Officer’s Review.
R e s e a r c ha n dD e v e l o p m e n t
Our new product development programme is key to the future 
long-term growth and success of the Group and we are committed 
to the development of new and innovative products to meet the 
needs of our customers. Further information in relation to product 
development can be found in the Our Business and Strategy 
section of this report. During the year to 30
th
 June 2016 the 
Group incurred research and development expense of £156,000 
(2015: £143,000) and a further £1,563,000 (2015: £768,000) was 
capitalised as development costs.
Dividends
Subject to shareholder approval at the Annual General Meeting on 
15
th
 November 2016, the Board proposes paying a final dividend 
of 4.7 pence per share on 25
th
 November 2016 to shareholders on 
the register on 21
st
 October 2016. This will make a total dividend 
of 6.5 pence per share for 2016.
C ap italS t ruc t u r e
The Company’s issued share capital as at 30
th
 June 2016 was 
21,059,636 ordinary shares of 20 pence each, each credited as 
fully paid.
Directors
The following Directors held office during the year ended  
30
th
 June 2016 and subsequently:
C J Brewster 
Lord Downshire 
R B Harding 
J S Lambert 
Dr I D Menneer
Details of Directors’ share options and long-term incentive plans 
are provided in note 7 to the financial statements.
The Company maintains Directors’ and Officers’ liability insurance 
for the benefit of its Directors, which was in place throughout the 
year ended 30
th
 June 2016 and remains in place at the date of this 
report.
Creditor Payment Policy
We endeavour to maintain strong trading relationships with our 
suppliers. Terms of payment are agreed with suppliers in advance 
and it is the Group’s policy to settle its liabilities in accordance 
with these terms. The number of days purchases included in trade 
creditors at 30
th
 June 2016 was 59 days (2015: 44 days).
Corpora t eGo ve rn a nce
The Group’s approach and policies surrounding Corporate 
Governance, which this Director’s Report comprises, are shown on 
page 20. 
Charitable and Political Donations
During the year the Group made charitable donations of £71 
(2015: £325). No political donations were made during the year 
(2015: £nil).
E m plo y ee s
The Board recognises that the Group’s performance and success 
are directly related to our ability to attract, retain and motivate 
high calibre employees. We are committed to linking reward to 
business and individual performance, thereby giving employees 
the opportunity to share in the financial success of the Group. 
Employees are typically provided with financial incentives related 
to the performance of the Group in the form of annual bonuses. 
The Board also recognises employees for their contribution 
through the use of employee incentive plans and share plans 
within overall remuneration.
Applications for employment by disabled persons are given full 
and fair consideration. When existing employees become disabled 
every effort is made to provide continuing employment wherever 
possible.
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
21
OUR GOVERNANCE 24942.04   13/10/2016   Proof 6
Substantial Shareholdings
In accordance with the Disclosure Rules and Transparency 
Rules, the Company has been notified of the following interests 
exceeding the 3% notification threshold as at 30
th
 September 
2016, a date not more than one month before the date of the 
notice of the Annual General Meeting:
Name of holder
No. of
 ordinary 
shares
%
 holding
Liontrust Asset Management 2,732,413 12.9%
Unicorn Asset Management 1,681,900 8.0%
Octopus Investments 1,425,384 6.8%
Lord Downshire** 1,420,029 6.7%
Mr J S Lambert 1,313,691 6.2%
Investec Wealth & Investment 1,280,933 6.1%
Hargreave Hale 1,221,792 5.8%
Lazard Freres Gestion 1,160,000 5.5%
**  Lord Downshire’s interest includes a non-beneficial interest in 310,446 ordinary 
shares
Go i n gC o nce r n
The principal risks and uncertainties facing the Group are set out 
on page 16.
For the purposes of their assessment of the appropriateness 
of the preparation of the Group’s accounts on a going concern 
basis, the Directors have considered the current cash position 
and forecasts of future trading including working capital and 
investment requirements.
During the year the Group met its day-to-day general corporate 
and working capital requirements through existing cash resources. 
At 30
th
 June 2016 the Group had cash on hand of £7.1m  
(30
th
 June 2015: £5.8m).
Overall, the Directors believe the Group is well placed to manage 
its business risks successfully and continue to be profitable and 
cash generative. The Group’s forecasts and projections, taking 
account of reasonable possible changes in trading performance, 
show that the Group should have sufficient cash resources to meet 
its requirements for at least the next 12 months. Accordingly, the 
adoption of the going concern basis in preparing the financial 
statements remains appropriate.
Auditor
Each of the persons who is a Director at the date of this Annual 
Report confirms that:
 y So far as the Director is aware, there is no relevant audit 
information of which the Company’s auditor is unaware; and
 y The Director has taken all the steps that he ought to have taken 
as a Director in order to make himself aware of any relevant 
audit information and to establish that the Group’s auditor is 
aware of that information.
This confirmation is given and should be interpreted in accordance 
with the provisions of s418 of the Companies Act 2006.
A resolution to reappoint KPMG LLP as auditors and to authorise 
the Directors to determine their remuneration will be put to the 
members at the forthcoming Annual General Meeting.
Animalcare Group plc
By order of the Board,
CHRIS BREWSTER 
Company Secretary
11
th
 October 2016
DI R E C T OR S ’  R E P OR T CONTINUED
22 24942.04   13/10/2016   Proof 6
ST A TE M E NT  OF  DI R E C TORS ’  R ESPONSI B I LITI ES
in respect of the Annual Report and the  
Financial Statements for the year ended 30ᵗʰ June 2016
The Directors are responsible for preparing the Strategic Report, 
the Annual Report and the financial statements in accordance 
with applicable law and regulations. Company law requires 
the Directors to prepare Group and parent Company financial 
statements for each financial year. As required by the AIM Rules 
of the London Stock Exchange they are required to prepare the 
Group financial statements in accordance with IFRSs as adopted by 
the EU and applicable law and have elected to prepare the parent 
Company financial statements on the same basis.
Under company law the Directors must not approve the financial 
statements unless they are satisfied that they give a true and fair 
view of the state of affairs of the Group and parent Company and 
of their profit or loss for that period. In preparing each of the 
Group and parent Company financial statements, the Directors are 
required to:
 y select suitable accounting policies and then apply them 
consistently;
 y make judgements and estimates that are reasonable and 
prudent;
 y state whether they have been prepared in accordance with 
IFRSs as adopted by the EU; and
 y prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the Group and the 
parent Company will continue in business
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the parent 
Company’s transactions and disclose with reasonable accuracy 
at any time the financial position of the parent Company and 
enable them to ensure that its financial statements comply with 
the Companies Act 2006. They have general responsibility for 
taking such steps as are reasonably open to them to safeguard the 
assets of the Group and to prevent and detect fraud and other 
irregularities.
The Directors are responsible for the maintenance and 
integrity of the corporate and financial information included 
on the Company’s website. Legislation in the UK governing the 
preparation and dissemination of financial statements may differ 
from legislation in other jurisdictions.
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
23
OUR GOVERNANCE 24942.04   13/10/2016   Proof 6
I N DE PE N DE NT  A U DITOR ’ S  R E PORT
We have audited the financial statements of Animalcare Group 
plc for the year ended 30
th
 June 2016 set out on pages 25 to 58. 
The financial reporting framework that has been applied in their 
preparation is applicable law and International Financial Reporting 
Standards (IFRSs) as adopted by the EU and, as regards the parent 
Company financial statements, as applied in accordance with the 
provisions of the Companies Act 2006.
This report is made solely to the Company’s members, as a body, 
in accordance with Chapter 3 of Part 16 of the Companies Act 
2006. Our audit work has been undertaken so that we might 
state to the Company’s members those matters we are required 
to state to them in an auditor’s report and for no other purpose. 
To the fullest extent permitted by law, we do not accept or 
assume responsibility to anyone other than the Company and the 
Company’s members, as a body, for our audit work, for this report, 
or for the opinions we have formed.
R e s pe c t i v er e s p o n s i b i l i t i e so fD i r e c t o r sa n d
auditor
As explained more fully in the Statement of Directors’ 
Responsibilities set out on page 23, the Directors are responsible 
for the preparation of the financial statements and for being 
satisfied that they give a true and fair view. Our responsibility is 
to audit, and express an opinion on, the financial statements in 
accordance with applicable law and International Standards on 
Auditing (UK and Ireland). Those standards require us to comply 
with the Auditing Practices Board’s Ethical Standards for Auditors.
S c o peo ft h ea u d i to ft h ef i n a n c i a ls t a t e m e n t s
A description of the scope of an audit of financial statements  
is provided on the Financial Reporting Council’s website at  
www.frc.org.uk/auditscopeukprivate.
O p i n i o no nf i n a n c i a ls t a t e m e n t s
In our opinion:
 y the financial statements give a true and fair view of the state of 
the Group’s and of the parent Company’s affairs as at 30
th
 June 
2016 and of the Group’s profit for the year then ended;
 y the Group financial statements have been properly prepared in 
accordance with IFRSs as adopted by the EU;
 y the parent Company financial statements have been properly 
prepared in accordance with IFRSs as adopted by the EU and as 
applied in accordance with the provisions of the Companies Act 
2006; and
 y the financial statements have been prepared in accordance 
with the requirements of the Companies Act 2006.
O p i n i o no no t h e rm a t t e r sp r e s c r i be db yt h e
C o m p a n i e sA c t2 0 0 6
In our opinion the information given in the Strategic Report 
and Directors’ Report for the financial year for which the 
financial statements are prepared is consistent with the financial 
statements.
M a t t e r so nw h i c hw ea r er e q u i r e dt or e p o r tb y
e x c e pt i o n
We have nothing to report in respect of the following matters 
where the Companies Act 2006 requires us to report to you if, in our 
opinion:
 y adequate accounting records have not been kept by the parent 
Company, or returns adequate for our audit have not been 
received from branches not visited by us; or
 y the parent Company financial statements are not in agreement 
with the accounting records and returns; or
 y certain disclosures of Directors’ remuneration specified by law 
are not made; or
 y we have not received all the information and explanations we 
require for our audit.
CLAIRE NEEDHAM (SENIOR STATUTORY AUDITOR) 
For and on behalf of 
KPMG LLP 
Statutory Auditor 
Chartered Accountants 
1 Sovereign Square, Sovereign Street 
Leeds 
LS1 4DA
11
th
 October 2016
24 24942.04   13/10/2016   Proof 6
Note
Underlying
 results before
 exceptional 
and
 other items
 2016
 £'000
Exceptional 
and
other items
2016
£'000
Total
2016
£'000
Underlying
results before
exceptional 
and
other items
2015
£'000
Exceptional 
and
other items
2015
£'000
Total
2015
£'000
Revenue 5 14,701 — 14,701 13,536 — 13,536
Cost of sales (6,702) — (6,702) (5,963) — (5,963)
Gross profit 7,999 — 7,999 7,573 — 7,573
Distribution costs (255) — (255) (279) — (279)
Administrative expenses (4,398) (173) (4,571) (4,041) (110) (4,151)
Research & development expenses (156) — (156) (143) — (143)
Operating profit/(loss) 4,6 3,190 (173) 3,017 3,110 (110) 3,000
Finance income 9 33 36 69 27 — 27
Finance expense 9 — — — — (17) (17)
Profit/(loss) before tax 4,6 3,223 (137) 3,086 3,137 (127) 3,010
Income tax (expense)/credit 10 (479) 27 (452) (502) 26 (476)
Total comprehensive income/
(loss) for the year 2,744 (110) 2,634 2,635 (101) 2,534
Earnings per share
Basic 12 13.0p 12.5p 12.6p 12.1p
Fully diluted 12 12.8p 12.3p 12.5p 12.0p
In order to aid understanding of underlying business performance, the Directors have presented underlying results before the effect of exceptional and other items. These 
exceptional and other items are analysed in detail in note 4 to these financial statements.
Total comprehensive income/(loss)for the year is attributable to the equity holders of the parent.
The notes 1 to 26 form part of these financial statements. 
CONSOLIDATED STATEMENT OF PROFIT AND LOSS  
AND COMPREHENSIVE INCOME
Year ended 30ᵗʰ June 2016
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
25
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
GROUP Note
Share 
capital
£'000
Share 
premium 
account
£'000
Retained 
earnings
£'000
Total
£'000
Balance at 1
st
 July 2014 4,192 6,391 8,870 19,453
Total comprehensive profit for the year — — 2,534 2,534
Transactions with owners of the Company, recognised in equity:
Dividends paid 11 — — (1,217) (1,217)
Issue of share capital 23 12 70 — 82
Share-based payments 25 — — 139 139
Balance at 1
st
 July 2015 4,204 6,461 10,326 20,991
Total comprehensive profit for the year — — 2,634 2,634
Transactions with owners of the Company, recognised in equity:
Dividends paid 11 — — (1,283) (1,283)
Issue of share capital 23 8 45 — 53
Share-based payments 25 — — 120 120
Balance at 30
th
 June 2016 4,212 6,506 11,797 22,515
COMPANY Note
Share 
capital
£'000
Share 
premium 
account
£'000
Retained 
earnings
£'000
Total
£'000
Balance at 1
st 
July 2014 4,192 6,391 3,548 14,131
Total comprehensive profit for the year — — (327) (327)
Transactions with owners of the Company, recognised in equity:
Dividends paid 11 — — (1,217) (1,217)
Issue of share capital 23 12 70 — 82
Share-based payments 25 — — 74 74
Balance at 1
st
 July 2015 4,204 6,461 2,078 12,743
Total comprehensive loss for the year — — (399) (399)
Transactions with owners of the Company, recognised in equity:
Dividends paid 11 — — (1,283) (1,283)
Issue of share capital 23 8 45 — 53
Share-based payments 25 — — 47 47
Balance at 30
th 
June 2016 4,212 6,506 443 11,161
As permitted by section 408 of the Companies Act 2006, the statement of comprehensive income of the parent Company is not 
presented as part of these financial statements.
ST A TE M E NTS  OF  CHAN G ES  I N  SHAR E HOLDE RS ’  E Q U IT Y
Year ended 30ᵗʰ June 2016
26 24942.04   13/10/2016   Proof 6
Group Company
Note
2016
£'000
2015
£'000
2016
£'000
2015
£'000
Non-current assets
Goodwill 13 12,711 12,711 — —
Other intangible assets 14 2,968 1,780 4 6
Property, plant and equipment 15 281 306 — —
Investments in subsidiary companies 16 — — 14,361 14,361
Deferred tax asset 22 — — 105 88
15,960 14,797 14,470 14,455
Current assets
Inventories 17 1,604 1,653 — —
Trade and other receivables 18 2,189 2,247 332 238
Cash and cash equivalents 18 7,118 5,777 1,576 1,576
10,911 9,677 1,908 1,814
Total assets 26,871 24,474 16,378 16,269
Current liabilities
Trade and other payables 19 (3,027) (2,186) (5,217) (3,526)
Current tax liabilities (101) (212) — —
Deferred income 21 (220) (234) — —
(3,348) (2,632) (5217) (3,526)
Net current assets/(liabilities) 7,563 7,045 (3,309) (1,712)
Non-current liabilities
Deferred income 21 (762) (724) — —
Deferred tax liabilities 22 (246) (127) — —
(1,008) (851) — —
Total liabilities (4,356) (3,483) (5217) (3,526)
Net assets 22,515 20,991 11,161 12,743
Capital and reserves
Called up share capital 23 4,212 4,204 4,212 4,204
Share premium account 6,506 6,461 6,506 6,461
Retained earnings 11,797 10,326 443 2,078
Equity attributable to equity holders of the parent 22,515 20,991 11,161 12,743
The notes 1 to 26 form part of these financial statements. 
The financial statements of Animalcare Group plc, registered number 1058015, were approved by the Board of Directors and authorised 
for issue on 12th October 2016. They were signed on its behalf by: 
CHRIS BREWSTER 
Chief Financial Officer
BA L AN C E  S H E E T S
Year ended 30ᵗʰ June 2016
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
27
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
Group Company
Note
2016
£'000
2015
£'000
2016
£'000
2015
£'000
Comprehensive income/(loss) for the year before tax 3,086 3,010 (507) (464)
Adjustments for:
Depreciation of property, plant and equipment 15 66 73 — —
Amortisation of intangible assets 14 369 359 2 1
Finance income 9 (33) (27) (11) (15)
Share-based payment expense 25 120 139 47 74
Net deferral/(release) of deferred income 21 24 (14) — —
Operating cash flows before movements in working capital 3,632 3,540 (469) (404)
Decrease in inventories 49 767 — —
Decrease/(increase) in receivables 77 (392) (3) (6)
Increase in payables 822 608 1,691 1,798
Cash generated by operations 4,580 4,523 1,219 1,388
Income taxes (paid)/received (444) (631) — —
Net cash flow from operating activities 4,136 3,892 1,219 1,388
Investing activities:
Payments to acquire intangible assets 14 (1,604) (812) — (7)
Payments to acquire property, plant and equipment 15 (41) (7) — —
Disposal of intangible assets 14 47 — — —
Interest received 33 27 11 15
Net cash (used in)/generated by investing activities (1,565) (792) 11 8
Financing:
Receipts from issue of share capital 53 82 53 82
Equity dividends paid 11 (1,283) (1,217) (1,283) (1,217)
Net cash used in financing activities (1,230) (1,135) (1,230) (1,135)
Net increase/(decrease) in cash and cash equivalents 1,341 1,965 — 261
Cash and cash equivalents at start of year 5,777 3,812 1,576 1,315
Cash and cash equivalents at end of year 7,118 5,777 1,576 1,576
Comprising:
Cash and cash equivalents 18 7,118 5,777 1,576 1,576
CASH FLOW STATEMENTS
Year ended 30ᵗʰ June 2016
28 24942.04   13/10/2016   Proof 6
1 .G e n e r a lI n f o r m a t i o n
Animalcare Group plc (“the Company”) is a company incorporated in England and Wales under the Companies Act 2006 and is domiciled 
in the United Kingdom. The Group comprises Animalcare Group plc and its subsidiary, Animalcare Ltd. The nature of the Group’s 
operations and its principal activities are set out in note 5 and within the Directors’ Report.
N e w ,r ev i s e do rc h a n g est oe x i s t i n ga c c o un t i n gs t a n d a r d s
The following standards and amendments have been published, endorsed by the EU, with an effective date after the date of these 
financial statements. Their adoption, where applicable, is not expected to have a material effect on the financial statements of the Group 
unless otherwise indicated.
International Financial Reporting Standards Applies to periods beginning after
IFRS 15 Revenue from Contracts with Customers 1
st
 January 2018
IFRS 9 Financial Instruments 1
st
 January 2018
IFRS 16 Leases – this new standard will result in previously recognised 
operating leases, as disclosed in note 24, being treated on-balance sheet 
similar to current finance lease accounting. 1
st
 January 2019
2 .S i g n i f i c a n tA c c o u n t i n gP o l i c i e s
B a si so fp r e p a r at i o n
The Group and Company financial statements have been prepared and approved by the Directors under the historical cost convention, 
except for the revaluation of certain financial instruments, in accordance with International Financial Reporting Standards (“IFRS”) as 
adopted by the European Union (“adopted IFRSs”) and the Companies Act 2006 as applicable to companies reporting under IFRS. They 
have also been prepared in accordance with the requirements of the AIM Rules.
G oingcon c ern
An analysis of the factors likely to impact on the Group’s future business activities, performance and strategy are set out in the Chief 
Executive’s Review and Chief Financial Officer’s Review. The principal risks and uncertainties facing the Group are set out in the Strategic 
Report on pages 16 and 17.
For the purposes of their assessment of the appropriateness of the preparation of the Group’s accounts on a going concern basis, 
the Directors have considered the current cash position and forecasts of future trading including working capital and investment 
requirements.
During the year the Group met its day-to-day general corporate and working capital requirements through existing cash resources. At  
30
th
 June 2016 the Group had cash on hand of £7.1m (30
th
 June 2015: £5.8m).
Overall, the Directors believe the Group is well placed to manage its business risks successfully. The Group’s forecasts and projections, 
taking account of reasonable possible changes in trading performance, show that the Group should have sufficient cash resources to 
meet its requirements for at least the next 12 months. Accordingly, the adoption of the going concern basis in preparing the financial 
statements remains appropriate.
NOTES TO THE ACCOUNTS
Year ended 30ᵗʰ June 2016
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
29
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
B a si so fc o n s o li dat i o n
The consolidated financial statements incorporate the financial statements of the Company and the entity controlled by the Company 
(its subsidiary) made up to 30
th
 June each year. The Group controls an entity when it is exposed to, or has rights to, variable returns from 
its involvement with the entity and has the ability to affect those returns through its power over the entity.
The results of a subsidiary acquired or disposed of during the year are included in the consolidated statement of comprehensive income 
from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of the subsidiary to bring the accounting policies used into line with 
those used by the Group.
All intra-Group transactions, balances, income and expenses are eliminated on consolidation.
E x c e p t i o n a lan do t h e ri t e ms
Exceptional items are material items of income or expense which, because of their nature and the expected frequency of the events 
giving rise to them, merit separate disclosure.
Other items relate to the amortisation of acquired intangible assets and fair value movements on foreign exchange hedging instruments.
The separate presentation of exceptional and other items enables the users of the accounts to better understand the elements of 
trading performance during the year and hence to better assess trends in that performance.
G o o d w i ll
Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group’s interest in the fair value of the 
identifiable assets and liabilities of a subsidiary, associate or jointly controlled entity at the date of acquisition. Goodwill is initially 
recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. Goodwill which is 
recognised as an asset is reviewed for impairment at least annually. Any impairment is recognised immediately in comprehensive income 
and is not subsequently reversed.
For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units (“CGUs”) expected to benefit 
from the synergies of the combination. CGUs to which goodwill has been allocated are tested for impairment annually, or more 
frequently when there is an indication that the CGU may be impaired. If the recoverable amount of the CGU is less than its carrying 
amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other 
assets of the CGU pro rata on the basis of the carrying amount of each asset in the CGU. An impairment loss recognised for goodwill is 
not reversed in a subsequent period.
On disposal of a subsidiary, associate or jointly controlled entity, the attributable amount of goodwill is included in the determination of 
the profit or loss on disposal.
Intangible assets
The Group recognises intangible assets at cost less accumulated amortisation and impairment losses. Intangible assets arise both as a 
result of applying IFRS 3 which requires the separate recognition of intangible assets from goodwill on all business combinations from 
1
st
 January 2004, and from the purchase of software (that is separable from any associated hardware), and development machinery and 
from research and development (see below).
Intangible assets are amortised on a straight-line basis over their useful economic lives as follows:
Customer relationships 10 years
Brands 15 years
Software Estimated useful life, normally 2–4 years
New product development costs & marketing authorisations Estimated economic life, normally 5–7 years
30 24942.04   13/10/2016   Proof 6
R es e a r c han dd ev e l o p m e n tc o s t s
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is 
recognised as an expense in the year in which it is incurred.
An internally generated intangible asset arising from the Group’s new product development is recognised only if all of the following 
conditions are met:
 y an asset is created that can be identified (such as a new pharmaceutical product);
 y it is probable that the asset created will generate future economic benefits; and
 y the development cost of the asset can be measured reliably.
Internally generated intangible assets are amortised on a straight-line basis over their estimated economic lives. Where no internally 
generated intangible asset can be recognised, development expenditure is recognised as an expense in the year in which it is incurred.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and 
services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the risks and rewards of ownership are transferred which is generally when goods 
are delivered.
Income received in relation to long-term service contracts is deferred and subsequently recognised over the life of the relevant 
contracts. Further details are contained in note 21.
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the 
lessee. All other leases are classified as operating leases.
The Group as lessee
Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease.
E m p l o y e eb e n e f i t s-P e n s i o n s
The Group operates a stakeholder pension scheme available to all eligible employees. Payments to this scheme are charged as an 
expense as they fall due. 
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
31
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
Investments in subsidiaries
Investments in Group companies are stated at cost less provisions for impairment losses.
Foreign currencies
In preparing the financial statements of the individual companies, transactions in currencies other than the entity’s functional currency 
(foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, 
monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet 
date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the 
date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not 
retranslated.
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in 
comprehensive income for the year.
S e gm e n tr e p o r t i n g
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur 
expenses, including revenues and expenses that relate to transaction with any of the Group’s other components. An operating segment’s 
operating results are reviewed regularly by the Board to make decisions about resources to be allocated to the segment and assess its 
performance, and for which discrete financial information is available.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and where applicable, direct labour 
costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated 
using the first-in, first-out principle. Net realisable value represents the estimated selling price less all estimated costs of completion and 
costs to be incurred in marketing, selling and distribution.
Dividends
Dividends paid are recognised within the statement of changes in equity only when an obligation to pay the dividend arises prior to the 
year end.
S h a r e - b a s e dp a y m e n t s
The Group issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair 
value (excluding the effect of non market-based vesting conditions) at the date of grant. The fair value determined at the grant date of 
such equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of 
shares that will eventually vest and adjusted for the effect of non market-based vesting conditions (with a corresponding movement in 
equity).
Fair value is measured by use of the Black–Scholes model. The expected life used in the model has been adjusted, based on 
management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations.
The fair value of the shares issued under the new Long Term Incentive Plan were valued on a discounted cash flow basis in conjunction 
with a third party valuation specialist. 
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
32 24942.04   13/10/2016   Proof 6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of 
comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further 
excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been 
enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the 
financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance 
sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are 
recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be 
utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from 
the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax 
profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer 
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. 
Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items charged or credited 
directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax 
liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax 
assets and liabilities on a net basis.
P r o p e r t y ,p l a n tan de qui p m e n t
Land and buildings and other assets held for use in the production or supply of goods and services or for administrative purposes, 
fixtures and equipment are stated at cost less accumulated depreciation and any recognised impairment loss.
Other than for land, which is not depreciated, depreciation is charged so as to write off the cost of assets, less their estimated residual 
value, over their estimated useful lives, as follows:
Straight-line
Leasehold improvements 10 years
Plant and equipment 4–7 years
Office furniture and equipment 3–5 years
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the net sales proceeds and the 
carrying amount of the asset and is recognised in the statement of comprehensive income as incurred.
Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the Group will 
be required to settle that obligation. Provisions are measured at the Directors’ best estimate of the expenditure required to settle the 
obligation outstanding at the balance sheet date, and are discounted to present value where the effect is material.
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
33
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
I mp a i r m e n to ft a n gi b l ea n di n t a n gi b l ea s s e t se x c lu di n gg o o d w i ll
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there 
is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset 
is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are 
independent from other assets, the Group estimates the recoverable amount of the cash-generating unit (CGU) to which the asset 
belongs. An intangible asset with an indefinite useful life is tested for impairment annually and whenever there is an indication that the 
asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash 
flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of 
money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (CGU) is 
reduced to its recoverable amount. An impairment loss is recognised as an expense immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset (CGU) is increased to the revised estimate of its 
recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined 
had no impairment loss been recognised for the asset (CGU) in prior years. A reversal of an impairment loss is recognised as income 
immediately.
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s balance sheet when the Group becomes a party to the contractual 
provisions of the instrument.
Trade receivables
Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective 
interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in comprehensive income when there 
is objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset’s carrying 
amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits repayable on demand, and other short-term highly liquid investments that 
are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An 
equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.
Trade payables
Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate 
method.
Finance income and expense
Finance income comprises interest receivable on funds invested and foreign exchange gains on hedging instruments that are recognised 
in the income statement (see note 9). Finance expenses comprise foreign exchange losses on hedging instruments that are recognised 
in the income statement (see note 9). 
Derivative financial instruments
The Group uses derivative financial instruments to manage its exposure to foreign exchange risk. Derivatives are initially recognised at 
fair value and the gain or loss recognised on remeasurement to fair value recognised in profit or loss.
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
34 24942.04   13/10/2016   Proof 6
3 .C r i t i c a lA c c o u n t i n gJ u dg e m e n t sa n dK e yS o u r c e so fEs t i m a t i o nU n c e r t a i n t y
C r i t i c a lj u d g e m e n t si nap p l y i n gt h eGr o up ’ sa c c o un t i n gp o li c i es
In the process of applying the Group’s accounting policies, which are described in note 2, management has made the following 
judgements that have the most significant effect on the amounts recognised in the financial statements (apart from those involving 
estimations, which are dealt with below).
Capitalised new product development expenditure
It is the Group’s policy, where the relevant criteria of IAS 38 “Intangible Assets” are met, to capitalise new product development 
expenditure and to amortise this expenditure over the estimated economic life of the asset (product). Judgement is required when 
assessing the technical and commercial feasibility of new product development projects including whether regulatory approval will 
ultimately be achieved.
Capitalised software expenditure
The Group has historically capitalised software projects and developments. Expenditure on a bespoke web based system, designed to 
facilitate online ordering of its products and services, is currently capitalised in the Group’s financial statements as the Directors have 
adjudged it to meet the relevant criteria.
The rate of depreciation on capitalised software is set so as to reflect the pattern of usage and the level of pace of change within the 
global information technology market.
Key sources of estimation uncertainty
Impairment of non-current assets
Determining whether a non-current asset is impaired requires an estimation of the “value in use” and/or the “fair value less costs to 
sell” of the cash-generating units (“CGUs”) to which the non-current asset has been allocated. The value in use calculation requires an 
estimate of the future cash flows expected to arise from the CGU and a suitable discount rate in order to calculate present value. The key 
assumptions for these value in use calculations are those regarding discount rates, growth rates and expected changes to selling prices 
and direct costs. The Directors estimate discount rates using pre-tax rates that reflect current market assessments of the time value of 
money and the risks specific to the individual CGU. In the current year the Directors estimated the applicable rate to be 9.4% (2015: 
13.2%). The Directors’ sensitivity analysis indicates significant headroom to the carrying value of the CGU when taking into account a 
reasonably possible change in any one of the key assumptions used in the value in use calculations. 
The Group prepares cash flow forecasts derived from the most recent financial budgets and projections approved by management for 
the next five years, thereafter assuming an estimated growth rate of 1.8% (2015: 2%). The growth rates for the five year period are based 
on current performance of the existing product portfolio and the estimated contribution from the Group’s new product development 
pipeline. The Directors believe that the long-term growth rate does not exceed the average long-term growth rate for the UK economy.
Impairment of slow-moving and obsolete inventory
The Group performs regular stock holding reviews, in conjunction with sales and market information, to help determine any slow-moving 
or obsolete lines. Where identified, adequate provision is made in the financial statements for writing down or writing off the value of 
such lines in order to reflect the realisable value of its stock.
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
35
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
4 .E x c e p t i o n a la n dO t h e rI t e m s
Note
2016
£'000
2015
£'000
Amortisation of acquired intangible assets 14 118 119
Supplier legal dispute – dividend received — (9)
Strategic review 55 —
Interest rate swap refund — (18)
Fair value movements on foreign currency hedging 9 (36) 35
Total exceptional and other items 137 127
The amortisation charge totalling £119,000 (2015: £119,000) relates to brand and customer relationship intangible assets recognised on 
the acquisition of Animalcare Ltd in January 2008.
5 .R e v e n u ea n dOpe r a t i n gS e g m e n t s
IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly 
reviewed by the Chief Operating Decision Maker to allocate resources and assess performance. The Chief Operating Decision Maker is 
considered to be the Board of Directors of Animalcare Group plc. Performance assessment is primarily based on underlying operating 
profit and cash generation. 
The Group solely comprises one reportable segment, being Animalcare.
Note
Animalcare
2016
£'000
Animalcare
2015
£'000
Revenue 14,701 13,536
Gross profit 7,999 7,573
Underlying operating profit 3,190 3,110
Other Items 4 (119) (119)
Exceptional items 4 (54) 9
Operating profit 3,017 3,000
Finance income 9 69 27
Finance expense 9 — (17)
Profit before tax 3,086 3,010
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
36 24942.04   13/10/2016   Proof 6
Note
Animalcare
2016
£'000
Animalcare
2015
£'000
Products and Services
Licensed Veterinary Medicines 9,238 8,579
Companion Animal Identification 2,680 2,309
Animal Welfare 2,783 2,648
14,701 13,536
Other information
Intangible asset additions 14 1,604 812
Property, plant and equipment additions 15 41 7
Depreciation and amortisation 14,15 435 432
Consolidated assets 26,871 24,474
Consolidated liabilities (4,356) (3,483)
Consolidated net assets 22,515 20,991
2016
£'000
2015
£'000
Key customers
Number 3 3
Percentage of total revenue 81% 82%
Key customers, all within the Animalcare segment, represent the three largest UK veterinary wholesalers as described in the Our 
Business section page 7. Individual customer revenues represent 33%/28%/21% (2015: 33%/28%/22%) of total revenue. 
2016
£'000
2015
£'000
Geographical market
United Kingdom 13,490 12,573
Europe and Rest of World 1,211 963
14,701 13,536
All the Group assets are wholly located in the United Kingdom and accordingly no geographical analysis of assets and liabilities is 
presented.
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
37
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
An analysis of total Group revenue is as follows:
2016
£'000
2015
£'000
Revenue from sale of goods 13,609 12,590
Revenue from provision of services 1,092 946
14,701 13,536
Finance income 33 27
14,734 13,563
6 .T o t a lC o m p r e h e n s i v eI n c o m ef o rt h eY e a r
2016
£'000
2015
£'000
Total comprehensive income for the year has been arrived at after charging:
Cost of inventories recognised as expense 6,515 5,831
Depreciation of tangible assets 66 73
Amortisation of intangible assets 369 359
Research and development 156 143
Operating lease rentals 211 199
Foreign exchange losses 43 1
Increase in provision for inventories 9 23
The above items are those charged to total comprehensive income only. Full details on items charged/(credited) to exceptional and other 
items are contained in note 4.
The analysis of remuneration paid to the Company’s auditor is as follows:
2016
£'000
2015
£'000
Fees payable to the Company's auditor for the audit of the Company's annual accounts 13 13
The audit of the Company's subsidiaries pursuant to legislation 21 20
Total audit fees 34 33
Tax services 11 11
Other services — 16
Total non-audit fees 11 27
Total auditors' remuneration 45 60
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
38 24942.04   13/10/2016   Proof 6
7 .D i r e c t o r s ’R e m u n e r a t i o na n dI n t e r e s t s
Emoluments
The various elements of remuneration received by each Director were as follows:
Year ended 30
th
 June 2016
Salary
£'000
Bonus
£'000
Company 
pension
contributions
£'000
Benefits
£'000
Total
£'000
J S Lambert* 35 — — — 35
Lord Downshire* 23 — — 3 26
R B Harding* 23 — — — 23
Dr I D Menneer 143 18 17 7 186
C J Brewster 102 17 12 6 137
Total 326 35 29 16 406
Year ended 30
th
 June 2015
J S Lambert* 34 — — — 34
Lord Downshire* 23 — — 1 24
R B Harding* 23 — — — 23
Dr I D Menneer 140 16 17 8 181
C J Brewster 102 11 12 6 131
Total 322 27 29 15 393
* Indicates Non-Executive Directors.
Mr George Gunn was appointed to the Board as a Non-Executive Director on 9
th
 February 2015 and subsequently resigned on 2
nd
 June 
2015. Mr Gunn received no remuneration during this period. 
All Company pension contributions relate to defined contribution pension schemes. Benefits consist of company car and private medical 
insurance. 
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
39
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
S h a r eo p t i o n s
The Directors had the following beneficial options:
I D Menneer
Scheme EMI EMI EMI Unapproved SAYE Unapproved SAYE Total
Exercise Price £1.675 £1.30 £1.325 £1.40 £1.03 £1.415 £1.05
Date of Grant
14
th
 
October 
2011
2
nd
August
 2012
20
th
 
November 
2012
21
st
 
February 
2013
22
nd
 
May 
2013
20
th
 June 
2013
28
th
 
November 
2014
Outstanding at 30
th
 June 2015 and 
30
th
 June 2016 60,000 60,000 50,000 90,000 4,377 90,000 5,142 359,519
C J Brewster
Scheme EMI EMI SAYE EMI SAYE Total
Exercise Price £1.30 £1.30 £1.03 £1.415 £1.05
Date of Grant
22
nd
 
June 
2012
2
nd
 
August 
2012
22
nd
 
May 
2013
20
th
 
June 
2013
28
th
 
November 
2014
Outstanding at 30
th
 June 2015 and 30
th
 June 2016 30,000 30,000 8,754 40,000 8,571 117,325
During FY15, 3,358 shares were allotted to Dr Menneer following exercise under the Animalcare Group Save As You Earn scheme. The 
exercise price was equal to market value at that time hence no gain or loss arose. 
The Directors’ interests in the shares of the Company as at 30
th
 June are set out below:
2016 2015
Ordinary 
shares of 20p
Ordinary 
shares of 20p
J S Lambert 1,313,691 1,413,691
Lord Downshire 1,109,583 1,109,583
I D Menneer 17,739 17,739
C J Brewster 4,079 4,079
In addition to the above, Lord Downshire had a non-beneficial interest in 310,446 shares.
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
40 24942.04   13/10/2016   Proof 6
L o n gT e r mI n c e n t i v eP l a n( L T IP )
The Animalcare Group plc LTIP was introduced in June 2014 to provide an effective mechanism for senior executives to participate in the 
Company’s equity at a meaningful level, aligning their interests with those of shareholders. The Directors’ interests in the LTIP , which was 
implemented via a subscription for growth shares in the capital of Animalcare Ltd, the subsidiary of the Company, are as follows:
 y Iain Menneer – 31,955 A Ordinary Shares of £1.00 each (“A Shares”) for a total cash subscription of £31,955, representing 5.2% of 
Animalcare Ltd’s issued share capital; and
 y Chris Brewster – 19,173 A Shares, representing 3% of Animalcare Ltd’s issued share capital and 11,800 B Ordinary Shares of £1.00 
each (“B Shares”), representing a further 2% of Animalcare Ltd’s issued share capital, for a total cash subscription of £30,973.
The total cash subscriptions were, based on independent valuation, considered to be equal to fair value at the time of acquisition.
Dr Menneer and Mr Brewster have the right to sell their A Shares to the Company at any time after 27
th
 June 2017 in exchange 
for Ordinary Shares of 20 pence each in the Company (“Ordinary Shares”). Their rights to sell the A Shares are subject to, amongst 
other provisions, the Company having a market capitalisation in excess of £39.0m (“the Hurdle”) at the time of sale. The Hurdle was 
determined by Animalcare’s Remuneration Committee and broadly represented a 20% premium to the Company’s market capitalisation 
on 27
th
 June 2014. Each holder of A Shares would, on a sale of his entire holding to the Company, be entitled to receive Ordinary Shares 
representing a percentage of the increase in the Company’s market capitalisation above the Hurdle; being 5% for Dr Menneer and 3% 
for Mr Brewster. The A Shares do not have a right to receive a dividend, except for any amounts distributed on the winding up of the 
Company or on an asset sale.
The B Shares are not entitled to participate in any increase in the value of the Company above the Hurdle but can be exchanged for 
Ordinary Shares of an equal value at any time after 27
th
 June 2017. The B Shares have a right to an annual dividend (on a non-fixed 
coupon basis), calculated by applying a rate of LIBOR + 2% to the nominal value of the B Shares.
Further details of the Plan, including the Hurdle, anti-dilution and other provisions, are set out in Animalcare Ltd’s articles of association, 
which is available within the Investors section (constitutional documents) of the Company’s website at www.animalcaregroup.co.uk.
8 .S t a f fC o s t s
2016 2015
Number of employees
The average monthly number of employees (including Directors) during the year was:
Production and distribution 4 4
Selling and administration 59 56
63 60
2016
£'000
2015
£'000
Related costs
Wages and salaries 2,195 2,024
Social security costs 224 187
Other pension costs 139 78
2,558 2,289
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
41
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
9 .F i n a n c eC o s t sa n dF i n a n c eI n c o m e
2016
£'000
2015
£'000
Fair value losses on financial instruments* — 35
Interest rate swap refund — (18)
Finance costs — 17
Other net finance income:
Fair value gains on financial instruments (36)
 —
Interest income on bank deposits (33) (27)
Finance income (69) (27)
Net finance income (69) (10)
*  Finance gains and losses arising from derivatives held at fair value through profit and loss relate to fair value movements on the Group’s foreign exchange hedges. These gains 
and losses are included within “other items” on the face of the statement of comprehensive income.
1 0 .I n c o m eT a xE x pe n s e
Note
2016
£'000
2015
£'000
The income tax expense comprises:
Current tax expense 481 601
Adjustment in the current year in relation to prior years (148) (143)
333 458
The deferred tax (credit)/expense comprises:
Origination and reversal of temporary differences 22 121 (99)
Adjustment in the current year in relation to prior years 22 (2) 117
119 18
Total tax expense for the year 452 476
The total tax charge can be reconciled to the accounting profit as follows:
Total comprehensive income for the year 2,634 2,534
Total tax expense 452 476
Profit before tax 3,086 3,010
Income tax calculated at 20.0% (2015: 20.75%) 617 625
Effect of expenses not deductible 41 42
Effect of share-based deductions (6) (88)
Innovation related tax credits (65) (77)
Depreciation in excess of capital allowances 15 —
Effect of adjustments in respect of prior years (150) (26)
452 476
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
42 24942.04   13/10/2016   Proof 6
The tax credit of £27,000 (2015: £26,000) shown within “exceptional and other items” on the face of the statement of comprehensive 
income, which forms part of the overall tax charge of £452,000 (2015: £476,000) relates to the items analysed in note 4.
The prior year current tax credits in respect of both 2016 and 2015 primarily relate to research and development tax credits. The prior 
year deferred tax charge in 2015 of £117,000 relates to the first time recognition of deferred tax in relation to capitalised development 
costs. 
The Government has announced that it intends to reduce the rate of corporation tax to 17% with effect from 1
st
 April 2020. This change 
in rates was not substantively enacted at the balance sheet date and therefore has not been reflected in the tax rates used for deferred 
tax purposes. The Finance Act 2015 (No 2) was substantively enacted on 26
th
 October 2015 which will reduce the rate of corporation tax 
to 19% with effect from 1
st
 April 2017 and 18% from 1
st
 April 2020. This will reduce the Group’s future current tax charge accordingly. 
Deferred tax balances at 30
th
 June 2016 have been calculated based on these rates.
1 1 .D ivi d e n ds
2016
£'000
2015
£'000
Ordinary final dividend paid in respect of prior year 904 839
Ordinary interim dividend paid 379 378
1,283 1,217
The final dividend paid during the year ended 30
th
 June 2016 was 4.3 pence per share (2015: 4.0 pence per share). The interim dividend 
paid during the year ended 30
th
 June 2016 was 1.8 pence per share (2015: 1.8 pence per share).
The proposed final dividend of 4.7 pence per share, which is subject to approval of shareholders at the Annual General Meeting, results 
in a total dividend for the year of 6.5 pence per share. The proposed dividend has not been included as a liability as at 30
th
 June 2016, in 
accordance with IAS 10 “Events After the Balance Sheet Date”. 
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
43
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
1 2 .E a r n i n gspe rS h a r e
Basic earnings per share amounts are calculated by dividing the total comprehensive income for the year attributable to ordinary equity 
holders of the Company by the weighted average number of fully paid Ordinary Shares outstanding during the year.
The following income and share data was used in the basic earnings per share computations:
Underlying
earnings 
before
exceptional 
and
other items
2016
£’000
Underlying
earnings 
before
exceptional 
and
other items
2015
£’000
Total
earnings
2016
£’000
Total
earnings
2015
£’000
Total comprehensive income attributable to equity holders of the 
Company 2,744 2,635 2,634 2,534
2016
No.
2015
No.
2016
No.
2015
No.
Basic weighted average number of shares 21,043,846 20,982,367 21,043,846 20,982,367
Dilutive potential Ordinary Shares 319,863 123,127 319,863 123,127
21,363,079 21,105,494 21,363,079 21,105,494
Earnings per share:
Basic 13.0p 12.6p 12.5p 12.1p
Fully diluted 12.8p 12.5p 12.3p 12.0p
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
44 24942.04   13/10/2016   Proof 6
1 3 .G oo d w i l l
Group
£'000
Cost
At 1
st
 July 2014, 1
st
 July 2015 and 30
th
 June 2016 12,711
Accumulated impairment losses
At 1
st
 July 2014, 1
st
 July 2015 and 30
th
 June 2016 —
Net book value
At 30
th
 June 2016 and 30
th
 June 2015 12,711
The carrying amount of Group goodwill is allocated to the Group’s sole cash-generating unit (“CGU”), being the Animalcare segment.
The recoverable amount of goodwill is determined from value in use calculations.
The Group prepares cash flow forecasts derived from the most recent financial budgets and projections approved by management for 
the next five years and thereafter assuming an estimated long-term annual growth rate of 1.8% (2015: 2.0%).
The financial budgets and projections are based on past experience and actual operating results. The growth rates for the five year 
period are based on current performance of the existing product portfolio and the estimated contribution from the Group’s new product 
development pipeline. The Directors believe that the long-term growth rate does not exceed the average long-term growth rate for the 
UK economy, the principal geographic area in which Animalcare operates. 
The Directors estimate the discount rates using the post-tax rates that reflect the current market assessments of the time value of 
money and the risks specific to the cash-generating unit. In the current year the Directors estimated the applicable pre-tax rate to be 
9.4% (2015: 13.2%).
The Directors modelled a range of different scenarios by applying sensitivities to both the cash flow assumptions and the discount rate. 
Based on this sensitivity analysis there is significant headroom between the value in use calculation and the carrying value of the CGU.
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
45
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
1 4 .O t h e rI n t a n g i b l eA s s e t s
Group
Acquired 
brands
£’000
Acquired
customer
relationships
£'000
New product
development
costs
£'000
Capitalised
software
£'000
Total
£'000
Cost
At 1
st
 July 2014 524 837 1,647 165 3,173
Additions — — 768 44 812
Disposals — — — (31) (31)
At 30
th
 June 2015 524 837 2,415 178 3,954
Additions — — 1,563 41 1,604
Disposals — — (47) — (47)
At 30
th
 June 2016 524 837 3,931 219 5,511
Amortisation
At 1
st
 July 2014 227 545 990 84 1,846
Charge for the year 35 84 195 45 359
Disposals — — — (31) (31)
At 30
th
 June 2015 262 629 1,185 98 2,174
Charge for the year 35 83 196 55 369
At 30
th
 June 2016 297 712 1,381 153 2,543
Carrying value
At 30
th
 June 2016 227 125 2,550 66 2,968
At 30
th
 June 2015 262 208 1,230 80 1,780
Veterinary medicine product development costs are amortised over four to seven years. £2.4m of the total £3.9m cost is currently not 
being amortised. Acquired brands are amortised over 15 years and acquired customer relationships are amortised over ten years. The 
amortisation period for capitalised software, which principally relates to the bespoke Anibase pet database, is four years.
Company
Capitalised
software
£'000
Total
£'000
Cost
At 1
st
 July 2015 and 30
th
 June 2016 7 7
Amortisation
At 1
st
 July 2014 — —
Charge for the year 1 1
At 30
th
 June 2015 1 1 
Charge for the year 2 2 
At 30
th
 June 2016 3 3
Carrying value
At 30
th
 June 2016 4 4
At 30
th
 June 2015 6 6
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
46 24942.04   13/10/2016   Proof 6
1 5 .P r o pe r t y ,P l a n ta n dE q u i p m e n t
Group
Leasehold
improvements
£'000
Plant and
equipment
£'000
Office
furniture and
equipment
£'000
Total
£'000
Cost
At 1
st
 July 2014 184 134 268 586
Additions — 2 5 7
Disposals — (17) (129) (146)
At 1
st
 July 2015 184 119 144 447
Additions — 32 9 41
At 30
th
 June 2016 184 151 153 488
Depreciation
At 1
st
 July 2014 22 56 136 214
Charge for the year 19 18 36 73
Disposals — (17) (129) (146)
At 1
st
 July 2015 41 57 43 141
Charge for the year 18 31 17 66
At 30
th
 June 2016 59 88 60 207
Net book value
At 30
th
 June 2016 125 63 93 281
At 30
th
 June 2015 143 62 101 306
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
47
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
1 6 .I n v e s t m e n t si nS u b s i d i a r i e s
Subsidiary undertakings
Company
2016
£'000
2015
£'000
Cost and net book value
At 1
st
 July 2014, 2015 and 30
th
 June 2016 14,361 14,361
The sole subsidiary undertaking of the Company is detailed below.
Country of
registration or
incorporation Class
Shares held
%
Animalcare Ltd England Ordinary 90*
*  In substance 100% ownership, see note 7 for further details. 
The principal activity of this undertaking for the last financial year was the sale of companion animal products and related services.
1 7 .I n ve n torie s
Group
2016
£'000
2015
£'000
Finished goods and goods for resale 1,604 1,653
In the Directors’ opinion, the replacement cost of inventories is not materially different from their balance sheet value.
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
48 24942.04   13/10/2016   Proof 6
1 8 .O t h e rF i n a n c i a lA s s e t s
Trade and other receivables
Group Company
2016
£'000
2015
£'000
2016
£'000
2015
£'000
Trade receivables 1,782 1,924 — —
Amounts receivable from subsidiaries — — — —
Corporation tax – Group relief — — 308 217
Other receivables 7 6 7 6
Derivative financial instruments 18 — — —
Prepayments and accrued income 382 317 17 15
2,189 2,247 332 238
The Directors consider that the carrying amount of trade and other receivables approximates to their fair value.
Movement in allowance for doubtful debts
Group Company
2016
£'000
2015
£'000
2016
£'000
2015
£'000
Balance at 1
st
 July 15 15 — —
Impairment losses recognised (1) — — —
Balance at 30
th
 June 14 15 — —
A g e i n go fp a s tdu eb u tn o ti m p a i r e dr e c e i v a b l es
Group
2016
£'000
2015
£'000
1–30 days past due 4 —
31–90 days past due — 1
91 days and more — —
4 1
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
49
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
Cash and cash equivalents
Group Company
2016
£'000
2015
£'000
2016
£'000
2015
£'000
Cash and cash equivalents 7,118 5,777 1,576 1,576
Cash and cash equivalents comprise cash and short-term bank deposits with an original maturity of three months or less.
Credit risk
The Company’s principal financial assets are bank balances and cash, and trade and other receivables. The Company’s credit risk 
is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful 
receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is 
evidence of a reduction in the recoverability of the cash flows. The allowance for doubtful debts represents the difference between the 
carrying value of the specific trade receivables and the present value of the expected recoverable amount. The average credit period on 
sales of goods is 33 days (2015: 31 days). No interest has been charged on overdue receivables.
1 9 .O th e rF i n ancialL iab i l iti e s
Group Company
2016
£'000
2015
£'000
2016
£'000
2015
£'000
Trade payables 1,513 936 97 73
Amounts payable to subsidiaries — — 4,991 3,385
Other taxes and social security costs 448 450 56 46
Other creditors 468 386 20 18
Derivative financial instruments (see note 20) — 18 — —
Accruals 598 396 53 4
3,027 2,186 5,217 3,526
The Directors consider that the carrying amount of trade and other payables approximates to their fair value.
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
50 24942.04   13/10/2016   Proof 6
2 0 .F i n ancialIn st ru m e n t s
C a p i t alan dl i qui di t yr i skm a n a g e m e n t
At 30
th
 June the Group was contractually obliged to make repayments of principal and payments of interest as detailed below:
Within one 
year or on 
demand
£'000
1–2 years
£'000
3–5 years
£'000
More than
5 years
£'000
Total
£'000
2016
Trade and other payables 3,027 — — — 3,027
2015
Trade and other payables 2,186 — — — 2,186
Categories and fair value of financial instruments carrying value
2016
£'000
2015
£'000
Financial assets
Trade and other receivables (including cash and cash equivalents) 8,925 7,707
Financial liabilities
Trade and other payables (3,027) (2,186)
The fair values of the Group’s financial assets and liabilities are not materially different from their carrying values.
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
51
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
Foreign currency risk management
The Group undertakes transactions denominated in foreign currencies which gives rise to the risks associated with currency exchange 
rate fluctuations. Exposures are managed by a combination of matching foreign currency income and expenditure, maintaining foreign 
currency deposits and the use of forward contracts. The carrying value of the Group’s foreign currency assets and liabilities at the 
reporting date was:
Assets Liabilities
2016
£'000
2015
£'000
2016
£'000
2015
£'000
Euro 276 446 109 153
US dollar 4 264 96 —
Foreign currency sensitivity analysis
At 30
th
 June 2016 the Group is mainly exposed to the Euro and the US dollar. The following table details the effect of a 10% increase and 
decrease in the exchange rate of these currencies against sterling when applied to outstanding monetary items denominated in foreign 
currency as at 30
th
 June 2016. A positive number indicates that an increase in profit would arise from a 10% change in value of sterling 
against these currencies, a negative number indicates that a decrease would arise.
Strengthening
£'000
Weakening
£'000
Euro (15) 18
US dollar 8 (10)
Interest rate sensitivity analysis
This sensitivity analysis was not performed as the Group had no exposure to interest rates for either derivatives or non-derivative 
instruments at the balance sheet date.
Forward foreign exchange contracts
The Group had two (2015: three) open foreign exchange contracts at 30
th
 June 2016. The values are shown below:
2016
£'000
2015
£'000
Principal value 200 338
Fair value 18 (18)
C a p i t alm a n a g e m e n t
In line with the disclosure requirements of IAS 1, “Presentation of Financial Statements”, the Company regards its capital as being the 
issued share capital together with its banking facilities, used to manage short-term working capital requirements. Note 23 to the financial 
statements provides details regarding the Company’s share capital and movements in the period. There were no breaches of any 
requirements with regard to any relevant conditions imposed by the Company’s Articles of Association during the periods under review.
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
52 24942.04   13/10/2016   Proof 6
2 1 .D e f e r r e dI n c o m e
Deferred income arises from certain services sold by the Group’s subsidiary Animalcare Ltd. In return for a single up-front payment, 
Animalcare Ltd commits to a fixed term contract to provide certain database, pet reunification and other support services to customers. 
There is no contractual restriction on the amount of times the customer makes use of the service. At the commencement of the 
contract it is not possible to determine how many times the customer will make use of the services, nor does historical evidence provide 
indications of any future pattern of use. As such, income is recognised evenly over the term of the contract, currently eight years.
Movements in the Group’s deferred income liabilities during the current and prior reporting period are as follows:
2016
£'000
2015
£'000
Balance at the beginning of the period 958 972
Income deferred to future periods 263 241
Release of income deferred from previous periods (239) (255)
Balance at end of the period 982 958
The deferred income liabilities fall due as follows:
2016
£'000
2015
£'000
Within one year 220 234
After one year 762 724
982 958
Income recognised during the year is set out below:
2016
£'000
2015
£'000
Income received 282 227
Income deferred to future periods (263) (241)
Release of income deferred from previous periods 239 255
Income recognised in the year 258 241
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
53
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
2 2 .D e f e r r e dT a x
Gr o up
The following are the major components of the deferred tax liabilities/(assets) recognised by the Group, and the movements thereon, 
during the current and prior reporting period:
Property, plant 
and equipment
£'000
Share-based
payments
£'000
Other
£'000
Intangible fixed 
assets
£'000
Total
£'000
Balance at 1
st
 July 2014 41 (43) (7) 118 109
Charge/(credit) to income (4) (111) (1) 134 18
Balance at 30
th
 June 2015 37 (154) (8) 252 127
Charge/(credit) to income (1) (22) — 142 119
Balance at 30
th
 June 2016 36 (176) (8) 394 246
Deferred tax balances have been calculated at an effective rate of 18%, being the substantively enacted rate at 30
th
 June 2016.
C o mp a n y
The following are the major components of the deferred tax assets recognised by the Company, and the movements thereon, during the 
current and prior reporting period:
Accelerated
tax 
depreciation
£'000
Share-based
payments
£'000
Other
£'000
Total
£'000
Balance at 1
st
 July 2014 (12) (25) (2) (39)
Charge/(credit) to income 3 (52) — (49)
Balance at 30
th
 June 2015 (9) (77) (2) (88)
Charge/(credit) to income 2 (19) — (17)
At 30
th
 June 2016 (7) (96) (2) (105)
Deferred tax balances have been calculated at an effective rate of 18%, being the substantively enacted rate at 30
th
 June 2016.
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
54 24942.04   13/10/2016   Proof 6
2 3 .S h a r eC a p i t a l
2016
No.
2015
No.
Allotted, called up and fully paid Ordinary Shares of 20p each 21,059,636 21,019,636
2016
£’000
2015
£’000
Allotted, called up and fully paid Ordinary Shares of 20p each 4,212 4,204
During the year £8,000 (2015: £11,886) of Ordinary Shares were issued for proceeds of £52,525 (2015: £81,814) resulting in a share 
premium of £44,525 (2015: £69,928).
2 4 .O pe r a t i n gL e a s eA r r a n g e m e n t s
T h eGr o upasl e s s e e
2016
£'000
2015
£'000
Lease payments under operating leases recognised as an expense in the year 211 199
At the balance sheet date, the Group had outstanding commitments for future minimum lease payments under non-cancellable 
operating leases, which fall due as follows:
2016
£'000
2015
£'000
Within one year 187 168
In the second to fifth years inclusive 240 298
After five years 45 78
472 544
Operating lease payments principally represent rentals payable by the Group for its office and warehouse properties and motor vehicles.
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
55
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
2 5 .S h a r e - b a s e dP a y m e n t s
During the year the Group operated the Animalcare Group plc Executive Share Option Scheme, the Save As You Earn (SAYE) Share Option 
Scheme and the new Long Term Incentive Plan as described below:
A n i m a l c a r eGr o upp l cE x e c u t i v eS h a r eO p t i o nS c h e m e
Under this scheme, options may be granted to certain executives and senior employees of the Group to subscribe for new shares in 
the Company at a fixed price equal to the market value at the time of grant. The options are exercisable three years after the date of 
grant. Once vested, options must be exercised within six years of the date of grant. The exercise of these options is not subject to any 
performance criteria.
S A Y EO p t i o nS c h e m e
This scheme is open to all UK employees to encourage share ownership. Share options are granted at an option price fixed at a 20% 
discount to the market value at the start of the savings period. The SAYE options vest and are exercisable three years after the date of 
grant and must ordinarily be exercised within six months of the completion of the relevant savings period.
Details of the movement in all share option schemes during the year are as follows:
EMI SAYE Unapproved
Options
Price
£ Options
Price
£ Options
Price
£
Outstanding at beginning of year 495,000 1.446 206,102 1.041 180,000 1.408
Granted during the year 110,000 2.157 — — — —
Lapsed during the year (15,000) 2.175 (13,640) 1.029 — —
Exercised during the year (40,000) 1.313 — — — —
Open at 30
th
 June 2016 550,000 1.578 200,491 1.0422 180,000 1.408
Exercisable at the end of the year 325,000 1.400 — — 180,000 1.408
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
56 24942.04   13/10/2016   Proof 6
The weighted average inputs into the Black–Scholes model at the time of grant were as follows:
EMI
Scheme
SAYE
Scheme
Unapproved
Scheme
Weighted average share price 162p 130p 141p
Weighted average exercise price 162p 104p 141p
Expected volatility 51% 50% 56%
Expected life 3.0 years 3.1 years 3.0 years
Risk-free rate 0.5% 0.5% 0.5%
Expected volatility was determined by calculating the historical volatility of the Group’s share price over the previous three years. The 
expected lives used in the model were estimated based on management’s best estimate for the effects of non-transferability, exercise 
restrictions, and behavioural considerations.
The aggregate estimated fair value of the options granted during the year was £nil (2015: £nil).
The Group recognised a total charge in respect of share based payments of £120,000 (2015 : £139,000) within administrative expenses. 
The respective Company charges were £47,000 (2015: £74,000).
Long Term Incentive Plan
The Animalcare Group plc LTIP was introduced in June 2014 to provide an effective mechanism for senior executives to participate in the 
Company’s equity at a meaningful level, aligning their interests with those of shareholders. 
The Directors’ interests in the LTIP , which was implemented via a subscription for growth shares in the capital of Animalcare Ltd, a 
subsidiary of the Company, are as follows:
 y Iain Menneer – 31,955 A Ordinary Shares of £1.00 each (“A Shares”) for a total cash subscription of £31,955, representing 5.2% of 
Animalcare Ltd’s issued share capital; and
 y Chris Brewster – 19,173 A Shares, representing 3% of Animalcare Ltd’s issued share capital and 11,800 B Ordinary Shares of £1.00 
each (“B Shares”), representing a further 2% of Animalcare Ltd’s issued share capital, for a total cash subscription of £30,973. 
Further details of the Plan are provided in note 7.
The charge for the year to the income statement in respect of the Plan is £nil (2015: £nil). 
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
57
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
2 6 .R e l a t e dP a r t yT r a n s a c t i o n s
Trading transactions
During the year ended 30
th
 June, the following trading transactions took place between the Company and its subsidiary listed in note 16:
2016
Animalcare Ltd
£’000
Total
£’000
Management charges levied 240 240
2015
Animalcare Ltd
£’000
Total
£’000
Management charges levied 240 240
R e m un e r at i o no fk e ym a n a g e m e n tp e r s o nn e l
The remuneration of the Directors, who are the key management personnel of the Group, is set out in aggregate for each of the 
categories specified in IAS 24 “Related Party Disclosures”. Further information about the remuneration of Directors is provided in note 7.
The Directors’ interests in the shares of the Company are contained in note 7.
NOTES TO THE ACCOUNTS CONTINUED
Year ended 30ᵗʰ June 2016
58 24942.04   13/10/2016   Proof 6
 2016 2015 2014 2013 2012
Consolidated Statement of Comprehensive Income
Revenue 14,701 13,536 12,881 12,118 10,856
Underlying EBITDA 3,506 3,423 3,162 2,916 2,501
Underlying operating profit 3,190 3,110 2,802 2,684 2,294
Profit before tax 3,086 3,010 2,672 2,330 2,106
Underlying earnings per share
 basic 13.0p 12.6p 10.8p 10.5p 9.3p
 diluted 12.8p 12.5p 10.8p 10.4p 9.2p
Dividend per share 6.5p 6.1p 5.5p 5.3p 4.5p
Balance Sheets
Non-current assets 15,960 14,797 14,410 14,661 14,522
Current assets 10,911 9,677 8,115 6,825 5,022
Current liabilities (3,348) (2,632) (2,233) (2,575) (1,692)
Non-current liabilities (1,008) (851) (839) (949) (1,015)
Shareholders' funds 22,515 20,991 19,453 17,962 16,837
Cash Flow Statements
Net cash flow from operating activities 4,136 3,892 1,067 2,831 2,123
Net cash used in investing activities (1,565) (792) (202) (483) (268)
Net cash used in financing activities (1,230) (1,135) (798) (908) (729)
Net increase/(decrease) in cash and cash equivalents 1,341 1,965 67 1,440 1,126
FIVE YEAR SUMMARY
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
59
OUR FINANCIALS 24942.04   13/10/2016   Proof 6
60 24942.04   13/10/2016   Proof 6
Directors J S Lambert
Lord Downshire
I D Menneer
C J Brewster
R B Harding
Secretary C J Brewster
Company Number 1058015
Registered Office Unit 7, 10 Great North Way
York Business Park
Nether Poppleton
York
YO26 6RB
Auditor KPMG LLP
1 Sovereign Square
Sovereign Street
Leeds
LS1 4DA
Bankers Barclays Bank PLC
PO Box 190
1 Park Row
Leeds
LS1 5WU
Solicitors Langleys
Queens House
Micklegate
York
YO1 6WG
Nominated Advisor and Broker Panmure Gordon & Co
One New Change
London
EC4M 9AF
Registrars Capita Asset Services
34 Beckenham Road
Beckenham
Kent
BR3 4TU
ADVISERS
Animalcare Group plc Annual Report 2016
www.animalcaregroup.co.uk
Stock Code: ANCR
OUR FINANCIALS
IBC 24942.04   13/10/2016   Proof 6
ADDRESS
10Gr ea tNorthW a y
Y orkBusinessP ark,Y ork
Y O266RB
CONTACT
T: +44(0)1904487687
F: +44(0)1904487611
E:In v es t or s@animalc ar e.c o.uk
W:w w w .animalc ar egr oup.c o.uk