24171.04    21 October 2015 1:21 PM    Proof 10
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 2015 24171.04    21 October 2015 1:21 PM    Proof 10
Wel Come to 
AnimAl CAre GroUP Pl C
l ooK oUt F or these iC ons
  See further content for the Annual Report and Accounts 2015 
online at : animalcare.annualreport2015.com
  View more content within this report
 F ormor ein f orma tions eepag es04 and 05
Animalcare Group plc is focused on 
growing its veterinary business.
We are a leading supplier of generic 
veterinary medicines and animal 
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
inVestment CAse
 ■ Animalcare is a sustainable business in a 
growing market. In the year ended  
30
th
 June 2015 Animalcare recorded 
revenue and gross profit growth of 5.1% 
and 6.0% respectively; continuing its track 
record of topline growth
 ■ Animalcare is cash generative and debt 
free, hence in a strong financial position 
to invest in future growth
 ■ Animalcare is dividend paying and 
given its strong balance sheet expects 
to maintain its current dividend policy 
during the investment phase
 ■ Animalcare has a clear strategy for 
growth by investing in the development 
of enhanced veterinary generic 
pharmaceuticals to accelerate its 
progress over the next three to five years  24171.04    21 October 2015 1:21 PM    Proof 10
01
Fin An CiAl hiGhli Ghts
 View our Financial Highlights online at: 
animalcare.annualreport2015.com
 R eadmor eabout ourfi nancialperf ormance,de finitionof
underlyinganddividendpershar eintheChie fFinancialOfficer ’ s
review on pages 13 and 14.
CONTENTS
+5.1% +11.0% +16.7% +10.9%
at £13.5m at £3.1m at 12.6p at 6.1p
12.1
2013
12.9
2014
13.5
2015
2.7
2013
2.8
2014
3.1
2015
10.5
2013
10.8
2014
12.6
2015
5.3
2013
5.5
2014
6.1
2015
re VenUe
£m
UnderlyinG  
BAsiC ePs
Pence
diVidend 
Per shAre
Pence
UnderlyinG 
oPerA tinG ProFit
£m
str Ate GiC r ePort
our Business
Financial Highlights 01
Operational Highlights 02
Chairman’s Statement 03
Group at a Glance 04
Business Model 06
Strategy 08
our Performance
Chief Executive’s Review 10
Chief Financial Officer’s Review 13
Principal Risks  
and Uncertainties 15
 
oUr Go Vern An Ce
Board of Directors 16
Directors’ Report 18
Statement of Directors’ 
Responsibilities  20
oU r FinA n CiAls
Independent Auditor’s Report 21
Consolidated Statement  
of Profit and Loss and 
Comprehensive Income 22
Statements of Changes in 
Shareholders’ Equity 23
Balance Sheets 24
Cash Flow Statements 25
Notes to the Accounts 26
Five Year Summary 52
Advisers iBC
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
Strategic Report
Our Business
01 24171.04    21 October 2015 1:21 PM    Proof 10
oP er Ation Al hi Ghli Ghts
 ■ Strong increase in sales of Licensed Veterinary Medicines, by 8.8%
 ■ Volume of microchips sold increased in the period with revenues 
impacted by the timing of a horse microchip tender
 ■ Revenues from the Animal Welfare Products range increased slightly 
in the year, 2.6%
 ■ Investment in product development pipeline has increased 
substantially in the period. 3 development projects progressed to 
regulatory submission, of which 1 licence has been granted
 ■ A new post of European Development Manager has been successfully 
filled to focus entirely on expanding potential from territories outside 
the UK
 View our Financial Highlights online at: 
animalcare.annualreport2015.com
 R eadmor eabout ourC hie fEx ecutiv eOffi cer ’ s
Review on pages 10 to 12
02 24171.04    21 October 2015 1:21 PM    Proof 10
ChAirmAn’s st Atement
Animalcare remains focused on three 
product groups: Licensed Veterinary 
Medicines, Companion Animal 
Identification and Animal Welfare Products; 
all sold through veterinary practices. The 
three areas of the business have performed 
well during the year; in particular the 
continued growth of Licensed Veterinary 
Medicines by 8.8% is very pleasing and 
follows a strong year in 2014.
Financial trading
Group revenues increased by 5.1% from 
£12.9m to £13.5m principally due to the 
growth in sales of Licensed Veterinary 
Medicines by £696k to £8.6m. This good 
performance has led to pre-tax profits 
increasing by 12.7% during the year and 
over 30% in the past two years. Basic 
earnings per share have increased from 
10.3p to 12.1p, up 17.5% in the period and 
33% in the past two years. Cash generation 
has remained very strong, with cash 
increasing from £3.8m to £5.8m.
People
The senior management of your business 
has been further strengthened during the 
year with high calibre individuals from 
the human and animal pharmaceutical 
industry. A Senior Management Team 
meeting made up of all the heads of 
departments is chaired monthly by our 
CEO Iain Menneer, setting and monitoring 
budgets, and running the business  
day-to-day. 
The plc Board, which meets eight times a 
year, is chaired by myself as Non-Executive 
Chairman, having held CEO and Chairman 
roles for thirty years. Nick Downshire also 
has wide business experience and is a 
qualified accountant and chairs the Audit 
Committee. Ray Harding is a qualified 
veterinary surgeon and set up and ran 
a successful pharmaceutical regulatory 
consultancy for fifteen years and is 
Chairman of the Remuneration and the 
Nomination Committees. Along with the 
CEO and CFO your Board sets the strategy 
to enhance shareholder value in all three 
main operating areas of the business.  
I believe the success and the long-term 
growth of Animalcare are well served by  
a stable, experienced, well balanced  
and challenging Board. This coupled 
with an able, talented hard working 
management team gives your Company 
real opportunity for continued growth over 
the coming years.
Product development Pipeline
Progress has been made during the period 
developing new products in our in-house 
development pipeline. Our investment in 
product development and in regulatory 
assessment fees has grown significantly 
during the year to almost £800k, an area 
which is core to our growth strategy. 
Further information is available on pages 8 
and 9.
dividend
Your Board proposes, subject to 
shareholder approval, an increased final 
dividend of 4.3 pence per share. With 
1.8 pence per share paid as the interim 
dividend this brings the total for the year to 
6.1 pence per share, representing growth 
of 10.9% (2014: 5.5 pence per share), 
which is in line with underlying operating 
profit and is well covered by the increase in 
cash balances.
Prospects
With the significant increase in investment 
in new product development and in 
the infrastructure across all areas of its 
business, Animalcare is well positioned 
and delivering its strategy for growth in 
sales from 2017 onwards. Your Company 
possesses not only an experienced, 
talented and well balanced leadership 
team but also a capable hard working 
workforce. I would like to thank them all for 
their commitment during the year, which 
continues to deliver an exciting growing 
business.
James lambert 
Non-Executive Chairman
“The three areas 
of the business 
have performed 
well during the 
year; in particular 
the continued 
growth of Licensed 
Veterinary 
Medicines”
James lambert Chairman
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
Strategic Report
Our Business
03 24171.04    21 October 2015 1:21 PM    Proof 10
Gro UP At A Gl An Ce
l iCensed  
Veterin Ary  
mediC ines
 
Anim Al 
Wel FAre 
Prod UCts
ComPAnion 
Anim Al 
identi FiCAtion
oU r mAin l o CAtion
Our head office and increased 
warehousing operation are both located 
in York, UK.
oU r d istri BUtion Points
Animalcare has a strong network of 
distribution and development partners 
across Western Europe.
04 24171.04    21 October 2015 1:21 PM    Proof 10
l icensed Veterinary medicines
Market Overview
Total UK veterinary medicines market is worth 
£610m, of which £332m is for companion 
animals (dogs, cats, horses and small mammals). 
In the year to March 2015 the whole medicines 
market grew by 1.5% and 1.1% for companion 
animals (www.noah.co.uk). 
Operational Achievements
 » Successful launch of 5 new products in the 
period
 » Focus on anaesthetics and analgesics range 
has driven market penetration for these key 
products
 » Product development pipeline has gained 
momentum
Companion Animal identification
Market Overview
Annual UK sales volume currently estimated 
to be approximately 960,000 microchips for 
companion animals (excluding equine). Two 
main microchip database providers servicing 
the UK (The Kennel Club’s Petlog ~7.7m pets, 
Animalcare’s Anibase ~4.2m pets), with several 
much smaller operators.
Operational Achievements
 » Volume of Identichip units sold increased by 
1.7% in the period
 » Operational efficiencies implemented in pet 
owner database during the year offering cost 
savings whilst maintaining service levels
 » New microchip launched just after the year 
end offering slimmer form factor for smaller 
pets but without losing all the performance 
features
Animal Welfare Products
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 with any certainty.
Operational Achievements
 » Infusion Accessories range continuing to grow
 » Preparations nearing completion for our 
hygiene range ahead of implementation of 
stringent EU Biocides Regulations 
re VenUe
 £8.6m
re VenUe
£2.3m
re VenUe
£2.6m
 Read more online at:  
www.animalcaregroup.co.uk
 Read more online at:  
www.animalcaregroup.co.uk
 Read more online at:  
www.animalcaregroup.co.uk
63%
17%
20%
61% (2014)   59% (2013)
19% (2014)   19% (2013)
20% (2014)   22% (2013)
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
Strategic Report
Our Business
05 24171.04    21 October 2015 1:21 PM    Proof 10
“This is the Animalcare Group 
plc Business Model, which 
seeks to outline how we 
create, deliver and capture 
shareholder value.”
Primary markets: Supply of goods and services to 
veterinary professionals.
Animal t ypes: Primarily companion animals.
Products and services: Licensed Veterinary Medicines, 
Companion Animal Identification and Animal Welfare 
Products.
Geographic r each: Currently 93% revenue in the UK; 
7% in EU with expansion plans to further penetrate  
the EU.
 ■ Robust process of identification of generic pharmaceuticals
 ■ Core competence in pharmaceutical licence applications
 ■ Broad experience of pharmaceutical formulation and 
contract manufacturers
 ■ Strong EU partner network for pharmaceutical co-
development projects and quid pro quo distribution
 ■ Extensive reach of sales and marketing into UK veterinary 
customer base
deVeloPment te Am
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. our development 
pipeline has generated in excess of £25m revenue since 2006.
strenG th throUGh  
oUr PeoPle
BUsiness model
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 European partners 
to distribute in their home territories.
sAles And mArKetinG te Am
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. our european partners distribute in 
their home territories.
Pet miCroChiP d AtABAse
Our database staff receives over 100,000 calls a year from 
owners updating their contact details and animal welfare 
professionals wanting to reunite lost pets.
06 24171.04    21 October 2015 1:21 PM    Proof 10
hEADING
strapline
ComPAny  
CUltUre
st AFF 
deVeloPment
Kno WledGe & 
eXPertise
stronG eXternAl
relA tionshiPs
nPd
Wholes Alers
VeterinAry 
PrAC tiCes
Pet o Wners
IN-HOUSE  
ProdUC ts
eU 
sUPPl y ChAin
eU distriBUtion 
& deVeloPment  
PArtners
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
Strategic Report
Our Business
07 24171.04    21 October 2015 1:21 PM    Proof 10
str AteGy
neW ProdUC t deVeloPment 
(NPD) Pr OCESS
In recent years UK veterinary practices have 
consolidated; be it by corporate acquisition 
or joint-venture partnership, joining buying 
groups and growth of the charitable sector.
The veterinary pharmaceutical sector 
has seen increased competition through 
numbers of suppliers and generic products.
Conversely, in part through M & A activity, 
there are now fewer high quality routes to 
market for those pharmaceutical licence 
holders without domestic sales channels.
We have developed our internal capability, 
expertise and cash position to take 
advantage of these market conditions and 
opportunities to focus our strategy in the 
following areas.
our strategy for 2015 to 2018 is to:
1
  identify product candidates to 
maintain flow into and through 
development pipeline
2
  increase efforts to license in 
new pharmaceutical products
3
  Assess opportunities to 
innovate and strengthen 
Companion Animal 
Identification group
4
  increase the sales of our 
current products outside  
the UK
identification Feasibility
Candidate  
iden tific a tion 
andselection
28 Candidates 9 Projects
Investment case prepared 
based on development, 
contract manufacturing, 
activ eingr edien tsour ce
and market intelligence
identification 
Animalcare draws on many areas to 
iden tif ypr oductst obec onsider ed
for the pipeline. Our experienced 
s t a ffusetheirmark e tandpr actic al
knowledge as a great source of ideas 
andinno v a tionalongwithmark e t
research with veterinary customers. 
Each project is assessed against 
criteria to determine its suitability.
The main criteria include:
 ■ size of market
 ■ technical and regulatory 
feasibility
 ■ number of competitors
 ■ competitor profile
 ■ fit to existing and future range
Feasibility 
Ifanopportunitysa tis fiesthese
criteria the team assemble a 
pr ojectfiletha twillincludethe
regulatory strategy and a shortlist 
off acilitiesablet ode v elopand
manufacture the product. Early 
stage feasibility work may be 
undertaken. The investment 
pr oposalissubmitt edt otheBoar d
to gain their approval.
n Pd Pipeline monitoring
Regular project meetings are held with in-house teams 
and external partners, with progress monitored against the 
project timeline and budget using project management 
software. The development pipeline is reviewed by the 
Board at all Board meetings.
08 24171.04    21 October 2015 1:21 PM    Proof 10
The varied nature of product development dictates 
that the exact process can be different for each project; 
however the diagram below explains some of the key 
steps in the Animalcare process.
 Read more online at:  
www.animalcaregroup.co.uk
development r egulatory
7 Projects
Data generated from 
manufacturing and 
clinical trials
Licenceapplic a tion
dossier prepared and 
submitt ed
Commercial
2-3 years 
to maturity
New product launched
First Product Launches 
Planned H2 FY16
development
In most cases the product will 
be developed at the Contract 
Manuf acturingOr g anisa tion
(CMO)whichwillultima t ely
manufacture the product. Work 
will start immediately to source 
theActiv ePharmaceutic al
Ingredient (API) and develop 
analy tic alme thods.Smallsc ale
development batches will be 
manuf actur edf orse ttingasideon
stability and for use in any clinical 
studies.
r egulatory
The dossier is assembled and 
submitt edt other egula t or y
authoritiesandismonit or ed
through the process by the 
Animalcare team. The regulatory 
assessment process is controlled 
b yas tricttime t able;f ormos t
of our projects this is 210 days. 
In our experience it takes 12 
mon thsfr omsubmittingthe
dossier to launching the product 
on the UK market.
launch 
Oncethemark e tingauthorisa tion
is received, and packaging layouts 
have been approved by the 
authorities,launchba t chesc an
be manufactured and packed 
ready for commercial launch. In 
all, the process outlined above 
ma yt ak ebe tw eenthr eeandfiv e
y ear sdependingonthepr oject ’ s
complexity and the development 
and clinical trials required.
Existing Product 
development
Whilst the model and stages 
outlined above are followed 
for new product development, 
fr omtimet otimew eiden tif y
an opportunity to modify an 
e xis tingpharmaceutic alpr oduct
in our range, which would 
pr o videadditionalf ea tur est o
increase sales or prolong the 
product life cycle. These types 
ofpr ojectsar et ermedExis ting
Product Development (EPD) and 
necessitate trials, studies and 
regulatory fees, therefore an 
in v es tmen tpr oposalw oulds tillbe
considered by the Board as with 
the NPD process.
4 nPd + 4 ePd Projects
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
Strategic Report
Our Business
09 24171.04    21 October 2015 1:21 PM    Proof 10
ChieF eXeCUti Ve’s r eVieW
introduction
I am very pleased to report increased 
sales for the business during a period of 
investment. Revenues have grown in the 
period by 5.1% to £13.5m (2014: £12.8m). 
During the last two years we have been 
building a business that provides a strong 
platform from which to launch a new 
period of growth. This has been based on 
bringing together the best team possible 
and giving them the right environment 
to deliver our key strategic objectives. I 
am very happy with the progress we are 
making to deliver that growth.
Business r eview
The veterinary market continues to evolve, 
presenting new opportunities to work 
differently with a customer base that is 
consolidating and looking for increasing 
value from the products and services we 
provide. 
Latest industry figures show that dog 
numbers in the UK have declined by 4.7% 
to 8.5m and cats by 6.8% to 7.4m (Pet Food 
Manufacturers’ Association, www.pfma.
co.uk), with this trend appearing to reflect 
across other pet species too. There are 
no clear reasons for this change at a time 
when the economy is getting stronger in 
the UK after several years of recession. The 
national dog and cat charities believe these 
changes are as a result of their campaigns 
promoting responsible pet ownership. 
We believe we have limited exposure to 
these changes in pet population due to the 
clinical nature of our product portfolio and 
the demographic of veterinary customers 
likely to have been affected by changes in 
pet ownership. 
l icensed Veterinary medicines
The Licensed Veterinary Medicines group 
again generated strong sales, growing by 
8.8%. During the first half of the period the 
main competitor to our product Buprecare 
(an analgesic and controlled drug) was 
absent from the market for a period of 
several months allowing Animalcare to 
benefit from non-recurring sales estimated 
at £0.2m. 
In the first half of the year we launched 
the Pet Remedy range of over the counter 
products on distribution in the UK and 
Ireland. Pet Remedy is based on a patented 
formulation containing valerian at a specific 
level to calm pets. It can be used across all 
species and has proved very popular and 
effective in many domestic and veterinary 
settings. 
During the second half we launched four 
new pharmaceutical products, all on 
distribution from an EU partner. Synthadon 
and Anaestamine both complemented 
our growing anaesthetic and analgesic 
range; Clavubactin and Fungiconazole 
are an antibiotic and antifungal product 
respectively. All are focused on the 
companion animal market. Whilst in the 
first few months of their launch phase, 
sales of each are progressing well.
Encouragingly, our pharmaceutical 
products are growing above market rates 
in comparison to the most recent UK 
market data which show a 1.1% increase 
for companion animal medicines revenues 
in the 12 months to March 2015 (National 
Office of Animal Health, www.noah.co.uk).
“I am very pleased 
to report that 
good progress 
has been made 
in our product 
development 
pipeline.”
iain menneer Chief Executive Officer
10 24171.04    21 October 2015 1:21 PM    Proof 10
Companion Animal identification
The sales volume of our Identichip 
microchips increased in the period by 1.7%, 
however UK revenues decreased by 2.2%, 
like for like. A significant equine order 
fulfilled late in the prior period adversely 
affected revenues from the equine channel 
in this reporting period.
In April 2016 it will be a legal requirement 
for all dogs in England to be microchipped 
and in addition it will be an offence if the 
owners’ details are not kept up to date on 
the associated microchip database. The 
Scottish Parliament and Welsh Assembly 
have recently followed suit in introducing 
similar legislation, effective April 2016.
This impending change in the law has not 
had a dramatic effect on the uptake of 
microchipping. However, our veterinary 
customers have become more price 
sensitive and responsive to short-term 
promotional campaigns. We have plans 
underway to bring value back into the 
market once it settles down.
Pleasingly through this period our revenues 
from services derived from the microchip 
database have continued to rise.
Animal Welfare Products
The Animal Welfare Products group grew by 
2.6% in the period. The infusion accessories 
range complements our prescription 
medicine intravenous fluids range and grew 
in the period by 5.3%, representing over 
50% of the product group. Other categories 
in this group achieved revenues meeting 
our expectations with very modest levels of 
commercial support.
As stated before, we continue to assess our 
product portfolio not only to rationalise 
poor performing or lower margin items but 
to selectively invest in new opportunities 
that complement our existing ranges 
to enhance revenue growth and profit 
generation.
People
General
Animalcare is a great place to work and 
we pride ourselves on the positive and 
supportive culture. I have highlighted in 
previous reports that changes have been 
made to bring the personnel systems up to 
date and to a level befitting a company of 
its size and stature. I am very pleased that 
further progress has been made during the 
year to incentivise and reward colleagues 
better. Attention has now focused on staff 
engagement by improving company-wide 
communication and awareness raising. 
These efforts are having a positive effect in 
all areas of the business; and I am pleased 
that this year we have again experienced 
more staff promotions into new and 
responsible positions.
management
Senior management changes during the 
financial year have resulted in a stronger, 
more capable leadership team. Sarah 
McKenzie joined as Head of Marketing 
from a senior commercial position at Teva 
UK, the global generic pharmaceutical 
company. Sarah brings directly applicable 
skills and experience from some very 
similar dynamics in the human generics 
market.
More recently, Martin Gore, formerly 
of Novartis Animal Health’s leadership 
team in the UK, was appointed to a newly 
created position to focus on European 
development. Martin has a wealth of 
commercial skills gained in the animal 
and human health sector and has recent 
experience as a country manager in Ireland.
sales
During the period we have concluded 
the reorganisation of our sales team. It is 
divided into two regions addressing the 
north and south of the UK. A structure 
has been introduced to support sales 
management. This change allows 
us to reward and motivate senior 
representatives more effectively. Field sales 
have been supported by the successful 
introduction of a telesales team. The final 
development is the strengthening of our 
key account support necessitated by the 
increase in corporate and buying group 
customers. Structural changes have been 
complemented by significant investment 
in training and development of our 
sales team. It is our goal to better serve 
our customers’ changing requirements 
and build a team that is capable of fully 
exploiting the new products and services 
that our product pipeline will bring to 
market.
Product Pipeline
I am very pleased to report that good 
progress has been made in our product 
development pipeline. Development work 
has focused on identifying new product 
opportunities and also ways to significantly 
enhance the commercial potential of 
existing pharmaceutical products.
Four new and four existing product 
development projects reached the 
‘Regulatory’ stage of our pipeline (see page 
9), three being submitted to the authorities 
for assessment. One of these products 
has already been approved and will be 
launched to the UK market early in the 
second half of the current financial year. 
The other two are currently progressing 
through regulatory assessment successfully 
to date.
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
11
Strategic Report
Our Performance 24171.04    21 October 2015 1:21 PM    Proof 10
These submissions are a clear sign that the 
strengthening of the development process 
is having an effect and that progress is 
being made; evidence of which will be in 
their launch from January 2016 onwards. 
Furthermore, other submissions will be 
made during the current financial year.
europe
Animalcare’s sales outside the UK have 
been broadly constant for several years, 
averaging 8% of total turnover. The growth 
in our home UK market has not been 
reflected in mainland Europe. Therefore 
one of Animalcare’s stated strategic 
objectives is to increase sales outside the 
UK and reach the potential that patently 
exists.
A major step forward was the creation of 
a new post with the sole responsibility to 
achieve this. As outlined above, Martin 
Gore was appointed Head of Export 
Development late in the period.
Martin will assess current distribution 
arrangements in existing territories, 
offering support and insight from our 
central technical and marketing functions 
as required. In addition he will also identify 
new territory and distribution partner 
opportunities. In doing so Martin will 
increase our exposure in Europe with the 
intention to stimulate more inward product 
opportunities too.
o perations
supply Chain
During the year our operations function 
has started a structured programme to 
manage the supply chain more robustly, 
including monitoring supplier performance 
and developing more informed forecasting 
models. It is believed that both of these 
elements will improve product supply and 
tighten control of stock levels.
o utlook
Over the past two financial years significant 
effort has been made to build a strong 
platform to launch into a new growth 
phase in Animalcare’s history. I believe 
the essential ingredients are now in place 
and are already delivering progress in key 
areas of sales, product development and 
European growth.
During the past six months significant 
progress has been made increasing 
networks and contacts in an effort to 
source products to acquire or in-license. 
Whilst still in the early stages, there 
are some exciting opportunities under 
discussion.
Our business is strongly cash generative 
giving us the necessary resources to invest 
significantly in our product pipeline. We 
will continue to invest in and develop our 
enthusiastic and committed Animalcare 
team who are at the core of everything  
we do.
iain menneer 
Chief Executive Officer
ChieF eXeCUti Ve’s r eVieW CONTINUED
12 24171.04    21 October 2015 1:21 PM    Proof 10
ChieF Fin AnC iAl o FFiCer ’s re VieW
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.
o verview
We delivered another solid performance 
during the financial year to 30
th
 June 2015, 
with underlying operating profit increasing 
by 11.0% compared with previous year to 
£3.1m. This reflects our strong operational 
performance, both in revenue and margin 
terms, while continuing to make the 
necessary investment in our business to 
support future growth.
Our balance sheet strength continues to 
build, with Group cash balances of £5.8m 
at 30
th
 June 2015. The Group’s consistent 
profitable growth has enabled us to 
generate the funds we need to invest in our 
product development pipeline, a key part 
of our organic growth strategy. 
Overall revenues grew by 5.1% to £13.5m 
(2014: £12.8m). Our Licensed Veterinary 
Medicines group, which represents 63% of 
total revenue, again delivered good growth 
of 8.8%, 5.5% of which is like-for-like 
growth. As we noted in our Interim Report 
dated 31st December 2014, this includes a 
circa £0.2m non-recurring first half benefit 
from sales of Buprecare as a result of 
supply issues with a competitor product. 
The remaining growth is largely driven by 
sales of recently launched new products.
The strong performance in Licensed 
Veterinary Medicines was offset by a 
decline in Companion Animal Identification 
sales, mostly due to the phasing of export 
equine chip sales. 
Our Animal Welfare Products group grew 
modestly driven by our growing infusion 
accessories range, which represents around 
50% of the £2.6m sales. 
Gross profit increased by 6.0% to £7.6m 
(2014: £7.1m). Our gross margins improved 
to 55.9% (2014: 55.4%), primarily due 
to the non-recurring Buprecare benefit 
noted above. Due to favourable sales 
mix, underlying gross margins remain 
comparable with the prior year.
The financial performance of each product 
group is reviewed in more detail within 
the Business Review section of the Chief 
Executive’s Review.
“The Group 
continues to make 
good progress 
which is reflected 
in our financial 
performance.”
Chris Brewster Chief Financial Officer
r evenue and gross profit 
Revenue £’000 2015 2014 % change
Licensed Veterinary Medicines 8,579 7,883 8.8%
Companion Animal Identification 2,309 2,418 (4.5%)
Animal Welfare Products 2,648 2,580 2.6%
TOTAL 13,536 12,881 5.1%
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
13
Strategic Report
Our Performance 24171.04    21 October 2015 1:21 PM    Proof 10
Underlying operating profit increased by 
11.0% to £3.1m and our operating margin 
improved by 120 basis points to 23% (2014: 
21.8%). Overheads, excluding research 
and development expenses, increased by 
£0.2m to £4.3m, as we continue to make 
the necessary investment, in particular in 
our management and support teams, to 
position the business for future growth. 
Research and development costs, which 
incorporate a share of the salaries of 
the product development team, have 
decreased by £0.1m against last year, 
reflecting the largely capital nature of the 
overall spend on our product pipeline. 
Non-underlying items principally 
incorporate the amortisation of acquired 
intangibles as detailed in note 4 on  
page 32. 
Reflecting all of the above, Group profit 
before tax was up 12.7% to £3.0m (2014: 
£2.7m). 
Cash flow
Our Group cash position grew by £2.0m 
to £5.8m as at 30
th
 June 2015. Cash 
generated by operations was very strong 
at £4.5m (2014: £1.6m). We have focused 
on optimising our stock position following 
the peak seen in FY14 which has, to date, 
delivered a reduction of £0.8m. This project 
continues to ensure we maintain the 
necessary focus on our supply chain and 
the resulting impact of streamlining our 
working capital. 
It is of primary importance that the Group 
reinvests the free cash in our business to 
support future growth and, as planned, 
during the year we have substantially 
increased our expenditure in our product 
development pipeline as shown in the 
chart below:
0.1
2013
0.2
2014
0.8
2015
CAPit Alised deVelo Pment 
Costs
£m
The four-fold increase in expenditure vs 
2014 highlights the progress made in our 
pharmaceutical pipeline, as a result of 
the decisions made during FY14 to recruit 
additional resource within our Technical 
and Business Development teams. 
earnings per share (“ePs”)
Basic underlying EPS improved by 16.7% 
to 12.6 pence (2014: 10.8 pence). Basic 
EPS rose by 17.5% to 12.1 pence (2014: 
10.3 pence) reflecting the lower cost of 
exceptional items incurred during 2015. 
dividends
Since 2008 we have returned £5.5m to 
shareholders or 26.6 pence per share. 
This reflects the consistent and continuing 
strength of our operations, our balance 
sheet and cash position.
The Board is proposing a final dividend in 
respect of the year of 4.3 pence per share, 
giving a total dividend of 6.1 pence per 
share for 2015 (2014: 5.5 pence per share). 
This final dividend is subject to shareholder 
approval at the Annual General Meeting 
on 17
th
 November 2015 and will be paid 
on 27
th
 November 2015 to shareholders 
on the register at the close of business on 
23
rd
 October 2015. The Ordinary shares will 
become ex-dividend on 22
nd
 October 2015. 
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.
summary
The Group continues to make good 
progress which is reflected in our financial 
performance. We enter the 2016 financial 
year with a strong cash position, placing 
our business in an excellent position to take 
advantage of investment opportunities as 
and when they arise. Focused investment 
will continue, both within our employee 
base and product development pipeline, to 
deliver sustainable profitable growth in the 
coming years. 
Chris Brewster 
Chief Financial Officer
o perating results
Revenue £’000 2015 2014 % change
Underlying EBITDA 3,423 3,162 8.3%
Depreciation & amortisation (313) (360)
Underlying operating profit 3,110 2,802 11.0%
Profit before tax 3,010 2,672 12.7%
 
ChieF Fin AnC iAl o FFiCer ’s re VieW CONTINUED
14 24171.04    21 October 2015 1:21 PM    Proof 10
PrinC iPAl r isKs And UnC ert Ainties
r isk description and potential impact mitigation trend
Product 
development 
risk
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. 
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. External consultants, where deemed 
necessary, are employed to aid effective 
management of the development and 
regulatory process. 
the Group 
plans to 
commit 
significantly 
higher 
resources to 
expand our 
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. This presents 
an opportunity for growth but potentially at the 
expense of margins.
The reorganisation of the sales team 
completed in the financial year was in part 
driven by our strategy to strengthen key 
account support and achieve our goal to 
better serve our changing customer base. 
Our marketing offering is also evolving 
via more tailored propositions to further 
strengthen support to our sales team, 
veterinary practices and their customers. 
supply chain 
risk
The Group purchases goods for resale under 
contract manufacturer supply and distribution 
agreements. Any disruption to the relationship 
with our key supply partners or interruption to 
the supply chain could result in significant loss 
of Group revenue. Generally, it is not in the 
commercial interests of the Group to implement 
dual sourcing for finished product.
Supply chain risk mitigation strategies 
include close monitoring of supplier 
performance, dual sourcing of raw material 
and the maintenance of contingency stocks 
where appropriate.
People risk 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. Failure 
to retain and attract high calibre individuals 
could impact the successful implementation of 
our strategy. 
Succession planning for the Board is 
overseen by the Nomination Committee. 
Planning for key senior management 
positions is given consideration by the 
Board. 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.
increase decrease Unchanged
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
15
Strategic Report
Our Performance 24171.04    21 October 2015 1:21 PM    Proof 10
Bo Ard o F direC tors
James l ambert oB e 
Non-Executive Chairman
Length of service
7 years; appointed to the Board in 2008
Committee membership
Nomination Committee
Key skills and experience
James was appointed Chairman of 
Animalcare in 2008 when Animalcare was 
acquired by Ritchey plc for whom he was 
chairman since 2005 and non-executive 
director since 2003. Under James’ 
leadership, R&R Ice Cream made a series 
of acquisitions to become the largest ice 
cream manufacturer by volume in the UK. 
James is now chairman of Burton’s Biscuits, 
a company he helped Ontario Teachers’ 
Pension Plan acquire in 2013. He was also 
awarded the EY UK Entrepreneur of the 
Year award in 2014.
l ord downshire
Non-Executive Director
Length of service
7 years; appointed to the Board in 2008
Committee membership
Audit Committee and  
Remuneration Committee
Key skills and experience
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 has worked in corporate finance 
and venture capital, plus holding non-
executive directorships in a diverse range 
of businesses in the insurance, agricultural, 
hospitality, education and technology 
sectors. He runs an estate in Yorkshire with 
a range of activities including quarrying, 
renewables, forestry and a hotel as well 
as agriculture and property. He is also 
Chairman of the CLA for Yorkshire and 
sits on their national policy committee, as 
well as acting as a Trustee for a number of 
charitable and land related trusts.
ray h arding
Non-Executive Director
Length of service
4 years; appointed to the Board in 2011
Committee membership
Chair of the Nomination Committee  
and Remuneration Committee
Key skills and experience
Ray has worked in the veterinary 
pharmaceutical industry since 1979 
in many technical and product related 
roles for several international ‘blue 
chip’ companies. He established Cyton 
Biosciences Ltd in 1997 to provide specialist 
services in new product development and 
registration for bioscience industries in 
Europe. Ray left Cyton in 2012 and is now 
an independent consultant.
Being a qualified veterinary surgeon Ray 
brings unique technical expertise to the 
Board. He has extensive experience in the 
development of veterinary medicines and 
in the European regulatory environment. 
His knowledge encompasses the complete 
range of veterinary medicines and the 
market in which they compete in Europe.
16 24171.04    21 October 2015 1:21 PM    Proof 10
iain menneer
Chief Executive Officer
Length of service
12 years; appointed to the Board in 2011
Committee membership
Secretary of the Nomination Committee 
and Remuneration Committee and  
by invitation
Key skills and experience
Iain joined Animalcare Ltd in 2003, 
working in sales, marketing and business 
development roles, 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 Limited in March 
2012 and subsequently Chief Executive 
Officer in January 2013.
Chris Brewster 
Chief Financial Officer  
and Company Secretary
Length of service
3 years; appointed to the Board in 2012
Committee membership
By invitation
Key skills and experience
Chris has been Chief Financial Officer since 
June 2012. He qualified as a chartered 
accountant in 2003 and spent ten years 
at KPMG, working across a number of 
functions including Audit, Transaction 
Services and Corporate Finance, gaining 
a broad range of experience across a 
diversified portfolio of clients. Prior to 
joining Animalcare, Chris was Group 
Accounting Manager at Findus Group 
where he was responsible for the UK and 
European financial accounting, taxation and 
reporting requirements.
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
17
Our Governance 24171.04    21 October 2015 1:21 PM    Proof 10
dire Ctor’s re Port
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 2015.
Principal Activities
The principal activity of the Group during the year was the 
sale and distribution of licensed veterinary pharmaceuticals 
and identification products and services to companion animal 
veterinary markets. 
Business r eview and Future developments
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 esearch and development
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 2015 the 
Group incurred research and development expenses of £143,000 
(2014: £260,000) and a further £768,000 (2014: £156,000) was 
capitalised as development costs.
dividends
Subject to shareholder approval at the Annual General Meeting on 
17
th
 November 2015, the Board proposes paying a final dividend 
of 4.3 pence per share on 27
th
 November 2015 to shareholders on 
the register on 23
rd
 October 2015. This will make a total dividend of 
6.1 pence per share for 2015.
Capital structure
The Company’s issued share capital as at 30
th
 June 2015 was 
21,019,636 ordinary shares of 20 pence each, each credited as 
fully paid.
directors
The following Directors held office during the year ended 30
th
 June 
2015 and subsequently:
C J Brewster 
Lord Downshire 
G Gunn (appointed 9
th
 February 2015, resigned 2
nd
 June 2015) 
R B Harding 
J S Lambert 
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 2015 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 2015 was 44 days (2014: 54 days).
Corporate Governance
The Directors support the underlying principles of the UK 
Corporate Governance Code, notwithstanding that the Group is 
not required to comply with all of the Code’s recommendations. 
The Board recognises its overall responsibility for the Group’s 
systems of internal control and their effective operation and it 
has sought to comply with those provisions of the Code judged 
appropriate for the current size and nature of the Group, being the 
establishment of an audit committee, a remuneration committee 
and a nominations committee.
Formally constituted audit, remuneration and nominations 
committees, with membership comprising two of the Group’s 
three Non-Executive Directors, were established on the Group’s 
admission to AIM and are active in the conduct of internal financial 
control, Executive performance and remuneration and Board 
appointments respectively. 
Charitable and Political donations
During the year the Group made charitable donations of £325 
(2014: £100). No political donations were made during the year 
(2014: £nil).
employees
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.
18 24171.04    21 October 2015 1:21 PM    Proof 10
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 2015, 
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
Investec Wealth Management 
Limited including the beneficial 
shareholding of S F Riddell of 
863,500 shares (4.1%)* 2,259,497 10.7%
Liontrust Asset Management 2,059,251 9.8%
Octopus Investments 1,424,984 6.8%
Lord Downshire** 1,420,029 6.8%
Mr J S Lambert 1,413,691 6.7%
Unicorn Asset Management 1,250,800 6.0%
Lazard Freres Gestion 1,174,000 5.6%
Hargreave Hale 1,148,474 5.5%
* S F Riddell’s shareholding includes a non-beneficial interest in 596,000 ordinary 
shares
** Lord Downshire’s interest includes a non-beneficial interest in 310,446 ordinary 
shares
Going Concern
The principal risks and uncertainties facing the Group are set out 
on page 15.
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 2015 the Group had cash on hand of £5.8m (30
th
 June 
2014: £3.8m).
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:
•	 So far as the Director is aware, there is no relevant audit 
information of which the Company’s auditor is unaware; and
•	 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 re-appoint 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
13
th
 October 2015
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
19
Our Governance 24171.04    21 October 2015 1:21 PM    Proof 10
stAtement o F dire Ctors’ r esPonsi Bilities
in respect of the Annual r eport and the Financial Statements for the year ended 30ᵗʰ June 2015
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:
•	 select suitable accounting policies and then apply them 
consistently;
•	 make judgements and estimates that are reasonable and 
prudent;
•	 state whether they have been prepared in accordance with 
IFRSs as adopted by the EU; and
•	 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.
20 24171.04    21 October 2015 1:21 PM    Proof 10
inde Pendent AUditor’s re Port
We have audited the financial statements of Animalcare Group 
plc for the year ended 30
th
 June 2015 set out on pages 22 to 51. 
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 espective responsibilities of directors and 
auditor
As explained more fully in the Statement of Directors’ 
Responsibilities 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.
scope of the audit of the financial statements
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 pinion on financial statements
In our opinion:
•	 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 
2015 and of the Group’s profit for the year then ended;
•	 the Group financial statements have been properly prepared in 
accordance with IFRSs as adopted by the EU;
•	 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
•	 the financial statements have been prepared in accordance 
with the requirements of the Companies Act 2006.
o pinion on other matters prescribed by the 
Companies Act 2006
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.
matters on which we are required to report by 
exception
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:
•	 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
•	 the parent Company financial statements are not in agreement 
with the accounting records and returns; or
•	 certain disclosures of Directors’ remuneration specified by law 
are not made; or
•	 we have not received all the information and explanations we 
require for our audit.
lindsey Crossland (senior statutory Auditor)
For and on behalf of
KPMG LLP
Statutory Auditor
Chartered Accountants
1 The Embankment
Leeds
LS1 4DW
13
th
 October 2015
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
21
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
Note
Underlying
 results before
 exceptional 
and
 other items
 2015
 £'000
exceptional 
and
other items
(i)
2015
£'000
total
2015
£'000
Underlying
results before
exceptional 
and
other items
2014
£'000
Exceptional 
and
other items
(i)
2014
£'000
Total
2014
£'000
r evenue 5 13,536 — 13,536 12,881 — 12,881
Cost of sales (5,963) — (5,963) (5,739) — (5,739)
Gross profit 7,573 — 7,573 7,142 — 7,142
Distribution costs (279) — (279) (257) — (257)
Administrative expenses (4,041) (110) (4,151) (3,823) (119) (3,942)
Research & development expenses (143) — (143) (260) — (260)
operating profit/(loss) 4, 6 3,110 (110) 3,000 2,802 (119) 2,683
Finance income 27 — 27 27 — 27
Finance expense 9 — (17) (17) — (38) (38)
Profit/(loss) before tax 4, 6 3,137 (127) 3,010 2,829 (157) 2,672
Income tax (expense)/credit 10 (502) 26 (476) (570) 35 (535)
total comprehensive income/
(loss) for the year 2,635 (101) 2,534 2,259 (122) 2,137
earnings per share
Basic 12 12.6p 12.1p 10.8p 10.3p
Fully diluted 12 12.5p 12.0p 10.8p 10.2p
Total comprehensive income/(loss)for the year is attributable to the equity holders of the parent.
(i) 
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.
Consolid Ated s tAtement o F Pro Fit A nd loss  
And Com Prehensi Ve in Come
Year ended 30ᵗʰ June 2015
22 24171.04    21 October 2015 1:21 PM    Proof 10
stAtements o F ChAnG es in s hAreholders’ e q Uity
Year ended 30ᵗʰ June 2015
Group Note
Share 
Capital
£'000
Share 
Premium 
Account
£'000
Retained 
Earnings
£'000
Total
£'000
Balance at 1
st
 July 2013 4,149 6,192 7,621 17,962
Total comprehensive profit for the year — — 2,137 2,137
Transactions with owners of the Company, recognised in equity:
Dividends paid 11 — — (1,103) (1,103)
Issue of share capital 23 43 199 — 242
Share-based payments 25 — — 215 215
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 30
th
 June 2015 4,204 6,461 10,326 20,991
Company Note
Share 
Capital
£'000
Share 
Premium 
Account
£'000
Retained 
Earnings
£'000
Total
£'000
Balance at 1
st
 July 2013 4,149 6,192 2,399 12,740
Total comprehensive profit for the year — — 2,166 2,166
Transactions with owners of the Company, recognised in equity:
Dividends paid 11 — — (1,103) (1,103)
Issue of share capital 23 43 199 — 242
Share-based payments 25 — — 86 86
Balance at 1
st
 July 2014 4,192 6,391 3,548 14,131
Total comprehensive loss 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 30
th
 June 2015 4,204 6,461 2,078 12,743
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.
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
23
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
Group
Company
Note
2015
£'000
2014
£'000
2015
£'000
2014
£'000
non-current assets
Goodwill 13 12,711 12,711 — —
Other intangible assets 14 1,780 1,327 6 —
Property, plant and equipment 15 306 372 — —
Investments in subsidiary companies 16 — — 14,361 14,361
Deferred tax asset 22 — — 88 39
14,797 14,410 14,455 14,400
Current assets
Inventories 17 1,653 2,420 — —
Trade and other receivables 18 2,247 1,883 238 144
Cash and cash equivalents 19 5,777 3,812 1,576 1,315
9,677 8,115 1,814 1,459
total assets 24,474 22,525 16,269 15,859
Current liabilities
Trade and other payables 19 (2,186) (1,606) (3,526) (1,728)
Current tax liabilities (212) (385) — —
Deferred income 21 (234) (242) — —
(2,632) (2,233) (3,526) (1,728)
net current assets/(liabilities) 7,045 5,882 (1,712) (269)
non-current liabilities
Deferred income 21 (724) (730) — —
Deferred tax liabilities 22 (127) (109) — —
(851) (839) — —
total liabilities (3,483) (3,072) (3,526) (1,728)
net assets 20,991 19,453 12,743 14,131
Capital and reserves
Called up share capital 23 4,204 4,192 4,204 4,192
Share premium account 6,461 6,391 6,461 6,391
Retained earnings 10,326 8,870 2,078 3,548
equity attributable to equity holders of the parent 20,991 19,453 12,743 14,131
The financial statements of Animalcare Group plc, registered number 1058015, were approved by the Board of Directors and authorised 
for issue on 13
th
 October 2015. They were signed on its behalf by:
Chris Brewster 
Chief Financial Officer
BAl AnC e sheets
Year ended 30ᵗʰ June 2015
24 24171.04    21 October 2015 1:21 PM    Proof 10
Group Company
Note
2015
£'000
2014
£'000
2015
£'000
2014
£'000
Comprehensive income/(loss) for the year before tax 10 3,010 2,672 (464) (519)
Adjustments for:
Depreciation of property, plant and equipment 15 73 69 — —
Amortisation of intangible assets 14 359 410 1 —
Finance income 9 (27) (27) (15) (20)
Share-based payment expense 25 139 152 74 86
Release of deferred income 21 (14) (49) — —
Operating cash flows before movements in working capital 3,540 3,227 (404) (453)
Decrease/(increase) in inventories 17 767 (1,002) — —
(Increase)/decrease in receivables 18 (392) (221) (6) 7
Increase/(decrease) in payables 19 608 (376) 1,798 (2,294)
Cash generated by operations 4,523 1,628 1,388 (2,740)
Income taxes (paid)/received (631) (561) — 552
net cash flow from operating activities 3,892 1,067 1,388 (2,188)
investing activities:
Payments to acquire intangible assets 14 (812) (199) (7) —
Payments to acquire property, plant and equipment 15 (7) (32) — —
Receipts from sale of property, plant and equipment — 2 — —
Dividends received — — — 2,553
Interest received 27 27 15 20
net cash (used in)/generated by investing activities (792) (202) 8 2,573
Financing:
Receipts from issue of share capital 82 305 82 242
Equity dividends paid 11 (1,217) (1,103) (1,217) (1,103)
net cash used in financing activities (1,135) (798) (1,135) (861)
Net increase/(decrease) in cash and cash equivalents 1.965 67 261 (476)
Cash and cash equivalents at start of year 3,812 3,745 1,315 1,791
Cash and cash equivalents at end of year 5,777 3,812 1,576 1,315
Comprising:
Cash and cash equivalents 18 5,777 3,812 1,576 1,315
CAsh Flo W stAtements
Year ended 30ᵗʰ June 2015
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
25
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
n otes to the A CCo Unts
Year ended 30ᵗʰ June 2015
1. General information
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.
The following new standards and amendments to standards are mandatory for the first time for financial periods beginning on or after  
1
st
 January 2014. Their effect has been limited to disclosure amendments.
IFRS 10: Consolidated Financial Statements
IAS 27: Separate Financial Statements
Amendments to IAS 32: Financial Instruments: Disclosures - Offsetting Financial Assets & Liabilities
Amendments to IAS 36: Recoverable Amount Disclosures for non-Financial Assets
The IASB and IFRIC have issued the following standards and interpretations, 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.
International Financial Reporting Standards Applies to periods beginning after
Annual Improvements to IFRSs 2010-2012 Cycle 1
st
 February 2015
Annual Improvements to IFRSs 2011-2013 Cycle 1
st
 February 2015
2. significant Accounting Policies
Basis of preparation
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.
Going concern
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 page 15.
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 2015 the Group had cash on hand of £5.8m (30
th
 June 2014: £3.8m).
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.
Basis of consolidation
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. Control is achieved where the Company has the power to govern the financial and operating 
policies of an investee entity so as to obtain benefits from its activities.
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.
26 24171.04    21 October 2015 1:21 PM    Proof 10
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.
Exceptional and other items
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.
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.
Goodwill
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 
1st 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
Research and development costs
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:
•	 an asset is created that can be identified (such as a new pharmaceutical product);
•	 it is probable that the asset created will generate future economic benefits; and
•	 the development cost of the asset can be measured reliably.
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
27
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
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.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is 
the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying 
value.
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.
Retirement benefit costs Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 
Payments made to state-managed retirement benefit schemes are dealt with as payments to defined contribution schemes where the 
Group’s obligations under the schemes are equivalent to those arising in a defined contribution retirement benefit scheme.
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.
Segment reporting
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.
n otes to the A CCo Unts CONTINUED
Year ended 30ᵗʰ June 2015
28 24171.04    21 October 2015 1:21 PM    Proof 10
Share-based payments
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. 
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.
Property, plant and equipment
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.
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
29
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
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.
Impairment of tangible and intangible assets excluding goodwill
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.
Investments
Investments in Group companies are stated at cost less provisions for impairment losses.
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.
n otes to the A CCo Unts CONTINUED
Year ended 30ᵗʰ June 2015
30 24171.04    21 October 2015 1:21 PM    Proof 10
3. Critical Accounting Judgements and Key sources of estimation Uncertainty
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 11.1% (2014: 
10.2%). 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 2% (2014: 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 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
31
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
4. exceptional and o ther items
Note
2015
£'000
2014
£'000
Amortisation of acquired intangible assets 14 119 119
Supplier legal dispute - dividend received (9) —
Interest rate swap refund (18) —
Fair value movements on foreign currency hedging 9 35 38
total exceptional and other items 127 157
The amortisation charge totalling £119,000 (2014: £119,000) relates to brand and customer relationship intangible assets recognised on 
the acquisition of Animalcare Ltd in January 2008.
5. r evenue and o perating segments
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
2015
£'000
Animalcare
2014
£'000
r evenue 13,536 12,881
Gross Profit 7,573 7,142
Underlying Operating Profit 3,110 2,802
Other Items 4 (119) (119)
Exceptional items 4 9 —
operating Profit 3,000 2,683
Finance income 9 27 27
Finance expense 9 (17) (38)
Profit before tax 3,010 2,672
n otes to the A CCo Unts CONTINUED
Year ended 30ᵗʰ June 2015
32 24171.04    21 October 2015 1:21 PM    Proof 10
Note
Animalcare
2015
£'000
Animalcare
2014
£'000
Products and services
Licensed Veterinary Medicines 8,579 7,883
Companion Animal Identification 2,309 2,418
Animal Welfare 2,648 2,580
13,536 12,881
other information
Intangible asset additions 14 812 199
Property, plant and equipment additions 15 7 32
Depreciation and amortisation 14,15 432 479
Consolidated assets 24,474 22,525
Consolidated liabilities (3,483) (3,072)
Consolidated net assets 20,991 19,453
2015
£'000
2014
£'000
Key customers
Number 3 3
Percentage of total revenue 91% 82%
Key customers, all within the Animalcare segment, are those responsible for 10% or more of segmental revenue.
2015
£'000
2014
£'000
Geographical market
United Kingdom 12,573 11,557
Europe and Rest of World 963 1,324
13,536 12,881
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 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
33
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
An analysis of total Group revenue is as follows:
2015
£'000
2014
£'000
Revenue from sale of goods 12,590 11,951
Revenue from provision of services 946 930
13,536 12,881
Finance income 27 27
13,563 12,908
6. total Comprehensive income for the year
2015
£'000
2014
£'000
Total comprehensive income for the year has been arrived at after charging:
Cost of inventories recognised as expense 5,831 5,639
Depreciation of tangible assets 73 69
Amortisation of intangible assets 359 410
Research and development 143 260
Operating lease rentals 199 187
Foreign exchange losses 1 21
Increase in provision for receivables — 9
Increase in provision for inventories 23 34
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:
2015
£'000
2014
£'000
Fees payable to the Company's auditor for the audit of the Company's annual accounts 13 12
The audit of the Company's subsidiaries pursuant to legislation 20 20
Total audit fees 33 32
Tax services 11 16
Other services 16 44
Total non-audit fees 27 60
Total auditors' remuneration 60 92
n otes to the A CCo Unts CONTINUED
Year ended 30ᵗʰ June 2015
34 24171.04    21 October 2015 1:21 PM    Proof 10
7. directors’ r emuneration and interests
Emoluments
The various elements of remuneration received by each Director were as follows:
year ended 30
th
 June 2015
salary
£'000
Bonus
£'000
Company 
pension
contributions
£'000
Benefits
£'000
Compensation
 for
loss of office
£'000
total
£'000
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
Year ended 30
th
 June 2014
J S Lambert* 33 — — — — 33
Lord Downshire* 22 — — 2 — 24
R B Harding* 22 — — — — 22
S M Wildridge (resigned 31
st
 October 
2013) 30 34 — — 66 130
Dr I D Menneer 135 23 16 7 — 181
C J Brewster 102 16 11 1 — 130
Total 344 73 27 10 66 520
* 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. The compensation for loss of office in relation to S M Wildridge was settled on 31
st
 October 2013.
Share options
The Directors had the following beneficial options:
I D Menneer
scheme SAYE EMI EMI EMI Unapproved SAYE Unapproved SAYE Total
Exercise Price £1.34 £1.675 £1.30 £1.325 £1.40 £1.03 £1.415 £1.05
Date of Grant
4
th
 October
2011
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 
2014 3,358 60,000 60,000 50,000 90,000 4,377 90,000 — 357,735
Granted during the year — — — — — — — 5,142 5,142
Exercised during the year (3,358) — — — — — — — (3,358)
outstanding at  
30
th
 June 2015 — 60,000 60,000 50,000 90,000 4,377 90,000 5,142 359,519
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
35
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
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 2014 30,000 30,000 8,754 40,000 — 108,754
Granted during the year — — — — 8,571 8,571
outstanding at 30
th
 June 2015 30,000 30,000 8,754 40,000 8,571 117,325
The Directors’ interests in the shares of the Company as at 30
th
 June are set out below:
2015 2014
ordinary 
shares of 20p
Ordinary 
shares of 20p
J S Lambert 1,413,691 1,413,691
Lord Downshire 1,109,583 1,109,583
I D Menneer 17,739 14,381
C J Brewster 4,079 4,079
In addition to the above, Lord Downshire had a non-beneficial interest in 310,446 shares.
Long Term Incentive Plan (LTIP)
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:
•	 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
•	 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.
n otes to the A CCo Unts CONTINUED
Year ended 30ᵗʰ June 2015
36 24171.04    21 October 2015 1:21 PM    Proof 10
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”). The rights of Dr Menneer and Mr Brewster to sell their 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 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.
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 http://www.animalcaregroup.
co.uk.
8. staff Costs
2015 2014
number of employees
The average monthly number of employees (including Directors) during the year was:
Production and distribution 4 4
Selling and administration 56 53
60 57
2015
£'000
2014
£'000
r elated costs
Wages and salaries 2,024 1,820
Social security costs 187 166
Other pension costs 78 89
2,289 2,075
9. Finance Costs and Finance income
2015
£'000
2014
£'000
Fair value losses on financial instruments* 35 38
Interest rate swap refund (18) —
Finance costs 17 38
Other net finance income: 
Interest income on bank deposits (27) (27)
Finance income (27) (27)
Net finance (income)/costs (10) 11
*  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.
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
37
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
10. income tax expense
Note
2015
£'000
2014
£'000
The income tax expense comprises:
Current tax expense 601 690
Adjustment in the current year in relation to prior years (143) (105)
458 585
The deferred tax (credit)/expense comprises:
Origination and reversal of temporary differences 22 (99) (70)
Adjustment in the current year in relation to prior years 22 117 20
18 (50)
total tax expense for the year 476 535
The total tax charge can be reconciled to the accounting profit as follows:
Total comprehensive income for the year 2,534 2,137
Total tax expense 476 535
Profit before tax 3,010 2,672
Income tax calculated at 20.75% (2014: 22.5%) 625 601
Effect of expenses not deductible 42 55
Effect of share-based deductions (88) (13)
Innovation related tax credits (77) —
Change in UK tax rate — (23)
Effect of adjustments in respect of prior years (26) (85)
476 535
The tax credit of £26,000 (2014: £35,000) shown within “exceptional and other items” on the face of the statement of comprehensive 
income, which forms part of the overall tax charge of £476,000 (2014: £535,000) relates to the items analysed in note 4.
The prior year current tax credits in respect of both 2015 and 2014 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 Budget on 8
th
 July 2015 announced that the UK corporation tax rate will reduce to 19% by 2017. The 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 
future rate reductions will affect the Group’s future current tax charges.
n otes to the A CCo Unts CONTINUED
Year ended 30ᵗʰ June 2015
38 24171.04    21 October 2015 1:21 PM    Proof 10
11. dividends
2015
£'000
2014
£'000
Ordinary final dividend paid in respect of prior year 839 788
Ordinary interim dividend paid 378 315
1,217 1,103
The final dividend paid during the year ended 30
th
 June 2015 was 4.0 pence per share (2014: 3.8 pence per share). The interim dividend 
paid during the year ended 30
th
 June 2015 was 1.8 pence per share (2014: 1.5 pence per share).
The proposed final dividend of 4.3 pence per share, which is subject to approval of shareholders at the Annual General Meeting, results 
in a total dividend for the year of 6.1 pence per share. The proposed dividend has not been included as a liability as at 30
th
 June 2015, in 
accordance with IAS 10 “Events After the Balance Sheet Date”. 
12. earnings per share
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
2015
£’00
Underlying
earnings before
exceptional and
other items
2014
£’000
total
earnings
2015
£’000
Total
earnings
2014
£’000
Total comprehensive income attributable to equity holders of the 
Company 2,634 2,259 2,534 2,137
2015
No.
2014
No.
2015
No.
2014
No.
Basic weighted average number of shares 20,982,367 20,824,931 20,982,367 20,824,931
Dilutive potential ordinary shares 123,127 126,980 123,127 126,980
21,105,494 20,951,911 21,105,494 20,951,911
earnings per share:
Basic 12.6p 10.8p 12.1p 10.3p
Fully diluted 12.5p 10.8p 12.0p 10.2p
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
39
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
13. Goodwill
Group
£'000
Cost
At 1
st
 July 2013, 1
st
 July 2014 and 30
th
 June 2015 12,711
Accumulated impairment losses
At 1
st
 July 2013, 1
st
 July 2014 and 30
th
 June 2015 —
net book value
At 30
th
 June 2015 and 30
th
 June 2014 12,711
The carrying amount of Group goodwill is allocated to the Group’s sole cash-generating unit (“CGU”), being the Companion Animal 
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 2.0% (2014: 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 11.1% 
(2014: 10.2%).
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.
n otes to the A CCo Unts CONTINUED
Year ended 30ᵗʰ June 2015
40 24171.04    21 October 2015 1:21 PM    Proof 10
14. o ther intangible Assets
Group
Acquired
brands and
customer
relationships
£'000
New product
development
costs
£'000
Capitalised
software
£'000
Total
£'000
Cost
At 1
st
 July 2013 1,361 1,491 122 2,974
Additions — 156 43 199
At 30
th
 June 2014 1,361 1,647 165 3,173
Additions — 768 44 812
Disposals — — (31) (31)
At 30
th
 June 2015 1,361 2,415 178 3,954
Amortisation
At 1
st
 July 2013 653 737 46 1,436
Charge for the year 119 253 38 410
At 30
th
 June 2014 772 990 84 1,846
Charge for the year 119 195 45 359
Disposals — — (31) (31)
At 30
th
 June 2015 891 1,185 98 2,174
Carrying value
At 30
th
 June 2015 470 1,230 80 1,780
At 30
th
 June 2014 589 657 81 1,327
Veterinary medicine product development costs are amortised over four to seven years, 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 2014 — —
Additions 7 7
At 30
th
 June 2015 7 7
Amortisation
At 1
st
 July 2014 — —
Charge for the year 1 1
Carrying value
At 30
th
 June 2015 6 6
At 30
th
 June 2014 - -
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
41
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
15. Property, Plant And Equipment
Group
Leasehold
improvements
£'000
Plant and
equipment
£'000
Office
furniture and
equipment
£'000
Total
£'000
Cost
At 1
st
 July 2013 187 107 263 557
Additions — 27 5 32
Disposals (3) — — (3)
At 1
st
 July 2014 184 134 268 586
Additions — 2 5 7
Disposals — (17) (129) (146)
At 30
th
 June 2015 184 119 144 447
depreciation
At 1
st
 July 2013 3 42 100 145
Charge for the year 19 14 36 69
At 1
st
 July 2014 22 56 136 214
Charge for the year 19 18 36 73
Disposals — (17) (129) (146)
At 30
th
 June 2015 41 57 43 141
net book value
At 30
th
 June 2015 143 62 101 306
At 30
th
 June 2014 162 78 132 372
16. investments in subsidiaries
Subsidiary undertakings
Company
2015
£'000
2014
£'000
Cost and net book value
At 1
st
 July 2013, 2014 and 30
th
 June 2015 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
The principal activity of this undertaking for the last financial year was the sale of companion animal products and related services.
n otes to the A CCo Unts CONTINUED
Year ended 30ᵗʰ June 2015
42 24171.04    21 October 2015 1:21 PM    Proof 10
17. inventories
Group
2015
£'000
2014
£'000
Finished goods and goods for resale 1,653 2,420
In the Directors’ opinion, the replacement cost of inventories is not materially different from their balance sheet value.
18. o ther Financial Assets
Trade and other receivables
Group Company
2015
£'000
2014
£'000
2015
£'000
2014
£'000
Trade receivables 1,924 1,577 — —
Amounts receivable from subsidiaries — — — —
Corporation tax – Group relief — — 217 129
Other receivables 6 4 6 4
Prepayments and accrued income 317 302 15 11
2,247 1,883 238 144
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
2015
£'000
2014
£'000
2015
£'000
2014
£'000
Balance at 1
st
 July 15 6 — —
Impairment losses recognised — 9 — —
Balance at 30
th
 June 15 15 — —
Ageing of past due but not impaired receivables
Group
2015
£'000
2014
£'000
1–30 days past due — 59
31–90 days past due 1 —
91 days and more — —
1 59
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
43
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
Cash and cash equivalents
Group Company
2015
£'000
2014
£'000
2015
£'000
2014
£'000
Cash and cash equivalents 5,777 3,812 1,576 1,315
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 31 days (2014: 36 days). No interest has been charged on overdue receivables.
19. o ther Financial l iabilities
Group Company
2015
£'000
2014
£'000
2015
£'000
2014
£'000
Trade payables 936 858 73 63
Amounts payable to subsidiaries — — 3,385 1,570
Other taxes and social security costs 450 226 46 40
Other creditors 386 299 18 15
Derivative financial instruments (see note 20) 18 28 — —
Accruals 396 195 4 40
2,186 1,606 3,526 1,728
The Directors consider that the carrying amount of trade and other payables approximates to their fair value.
n otes to the A CCo Unts CONTINUED
Year ended 30ᵗʰ June 2015
44 24171.04    21 October 2015 1:21 PM    Proof 10
20. Financial instruments
Capital and liquidity risk management
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
2015
Trade and other payables 2,186 — — — 2,186
2014
Trade and other payables 1,606 — — — 1,606
Categories and Fair Value of Financial Instruments Carrying value
2015
£'000
2014
£'000
Financial assets
Trade and other receivables (including cash and cash equivalents) 7,707 5,393
Financial liabilities
Trade and other payables (2,186) (1,606)
The fair values of the Group’s financial assets and liabilities are not materially different from their carrying values.
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
45
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
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
2015
£'000
2014
£'000
2015
£'000
2014
£'000
Euro 446 459 153 51
US Dollar 264 34 — 65
Foreign Currency Sensitivity Analysis
At 30
th
 June 2015 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 2015. 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 (27) 33
US Dollar (24) 29
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 three (2014: four) open foreign exchange contracts at 30
th
 June 2015. The values are shown below:
2015
£'000
2014
£'000
Principal value 338 752
Fair value (18) (28)
Capital Management
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.
n otes to the A CCo Unts CONTINUED
Year ended 30ᵗʰ June 2015
46 24171.04    21 October 2015 1:21 PM    Proof 10
21. deferred income
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:
2015
£'000
2014
£'000
Balance at the beginning of the period 972 1,021
Income deferred to future periods 241 182
Release of income deferred from previous periods (255) (231)
Balance at end of the period 958 972
The deferred income liabilities fall due as follows:
2015
£'000
2014
£'000
Within one year 234 242
After one year 724 730
958 972
Income recognised during the year is set out below:
2015
£'000
2014
£'000
Income received 227 195
Income deferred to future periods (241) (182)
Release of income deferred from previous periods 255 231
Income recognised in the year 241 244
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
47
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
22. deferred tax l iabilities
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 2013 27 (24) (7) 163 159
Charge/(credit) to income 14 (19) — (45) (50)
Balance at 30
th
 June 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
Deferred tax balances have been calculated at an effective rate of 20%, being the substantively enacted rate at 30
th
 June 2015.
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 2013 (17) (13) (2) (32)
Charge/(credit) to income 5 (12) — (7)
Balance at 30
th
 June 2014 (12) (25) (2) (39)
Charge/(credit) to income 3 (52) — (49)
At 30
th
 June 2015 (9) (77) (2) (88)
Deferred tax balances have been calculated at an effective rate of 20%, being the substantively enacted rate at 30
th
 June 2015.
n otes to the A CCo Unts CONTINUED
Year ended 30ᵗʰ June 2015
48 24171.04    21 October 2015 1:21 PM    Proof 10
23. share Capital
2015
no.
2014
No.
Allotted, called up and fully paid ordinary shares of 20p each 21,019,636 20,960,204
2015
£’000
2014
£’000
Allotted, called up and fully paid ordinary shares of 20p each 4,204 4,192
During the year £11,886 (2014: £43,000) of ordinary shares were issued for proceeds of £81,814 (2014: £242,125) resulting in a share 
premium of £69,928 (2014: £199,125).
24. o perating l ease Arrangements
The Group as lessee
2015
£'000
2014
£'000
Lease payments under operating leases recognised as an expense in the year 199 187
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:
2015
£'000
2014
£'000
Within one year 168 162
In the second to fifth years inclusive 298 252
After five years 78 110
544 524
Operating lease payments principally represent rentals payable by the Group for its office and warehouse properties and motor vehicles.
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
49
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
25. share-based Payments
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:
Animalcare Group plc Executive Share Option Scheme
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.
SAYE Option Scheme 
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 560,000 1.413 112,172 1.084 180,000 1.408
Granted during the year 20,000 1.725 120,673 1.050 — —
Lapsed during the year (30,000) 1.355 (22,311) 1.218 — —
Exercised during the year (55,000) 1.380 (4,432) 1.340 — —
open at 30
th
 June 2015 495,000 1.432 206,102 1.041 180,000 1.408
exercisable at the end of the year 90,000 1.55 — — — —
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 144p 130p 141p
Weighted average exercise price 144p 104p 141p
Expected volatility 53% 50% 56%
Expected life 3.1 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 (2014: £nil).
The Group recognised a total charge in respect of share based payments of £139,000 (2014 : £152,000) within administrative expenses.
n otes to the A CCo Unts CONTINUED
Year ended 30ᵗʰ June 2015
50 24171.04    21 October 2015 1:21 PM    Proof 10
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:
•	 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
•	 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 (2014: £nil). 
26. r elated Party transactions
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:
2015
Animalcare l td
£’000
total
£’000
Management Charges levied 240 240
2014
Animalcare Ltd
£’000
Total
£’000
Management Charges levied 240 240
Remuneration of key management personnel
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.
Animalcare Group plc Annual Report 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
51
Our Financials 24171.04    21 October 2015 1:21 PM    Proof 10
FiVe yeAr sU mmAry
 2015 2014 2013 2012 2011
Consolidated statement of Comprehensive income
Revenue 13,536 12,881 12,118 10,856 11,825
Underlying EBITDA 3,423 3,162 2,916 2,501 3,267
Underlying operating profit 3,110 2,802 2,684 2,294 3,053
Profit before tax 3,010 2,672 2,330 2,106 2,885
Underlying earnings per share
 basic 12.6p 10.8p 10.5p 9.3p 11.3p
 diluted 12.5p 10.8p 10.4p 9.2p 11.2p
Dividend per share 6.1p 5.5p 5.3p 4.5p 4.0p
Balance sheets
Non-current assets 14,797 14,410 14,661 14,522 14,578
Current assets 9,677 8,115 6,825 5,022 4,206
Current liabilities (2,632) (2,233) (2,575) (1,692) (2,068)
Non-current liabilities (851) (839) (949) (1,015) (927)
Shareholders' funds 20,991 19,453 17,962 16,837 15,789
Cash Flow statements
Net cash flow from operating activities 3,892 1,067 2,831 2,123 2,145
Net cash used in investing activities (792) (202) (483) (268) 2,559
Net cash used in financing activities (1,135) (798) (908) (729) (5,089)
Net increase/(decrease) in cash and cash equivalents 1,965 67 1,440 1,126 (385)
52 24171.04    21 October 2015 1:21 PM    Proof 10
AdVisers
directors J S Lambert
Lord Downshire
I D Menneer
C J Brewster
R B Harding
secretary C J Brewster
Company number 1058015
r egistered office Unit 7, 10 Great North Way
York Business Park
Nether Poppleton
York
YO26 6RB
Auditor KPMG LLP
1 The Embankment
Neville Street
Leeds
LS1 4DW
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
r egistrars Capita Asset Services
34 Beckenham Road
Beckenham
Kent
BR3 4TU
Our Financials
Animalcare Group plc Annual r eport 2015
www.animalcaregroup.co.uk
Stock Code: ANCR
IBC 24171.04    21 October 2015 1:21 PM    Proof 10
Address
10 Great North Way
York Business Park, York
YO26 6RB
Cont ACt
t: +44 (0) 1904 487687
F: +44 (0) 1904 487611
e: Investors@animalcare.co.uk
W: www.animalcaregroup.co.uk