22779.04    Proof 3    08-10-13
Veterinary Products for Companion Animals
Annual Report
for the year ended 30
th 
June 2013
www.animalcaregroup.co.uk
Stock Code: ANCR
Animalcare Annual Report 2013.indd   2 08/10/2013   16:26:10 22779.04    Proof 3    08-10-13
Look Out For These Icons
See further content for the Annual Report and 
Accounts 2013 online at 
animalcare.annualreport2013.com  
View more content within this report
Welcome to Animalcare Group plc
Animalcare Group plc is focused on growing its 
veterinary business.
Animalcare is a leading supplier of generic veterinary 
medicines and animal identification products to 
companion animal veterinary markets.
It develops and sells goods and services to veterinary professionals principally 
for use in companion animals; operating directly in the UK and through 
distribution and development partners in key markets in Western Europe.
Its principal product lines are licensed veterinary medicines and companion 
animal identification products and services.
Animalcare Annual Report 2013.indd   3 08/10/2013   16:26:14 22779.04    Proof 3    08-10-13
Highlights
Contents
Operational Highlights
Our Business
Highlights 1
Our Business and Strategy 2
Chairman’s Statement 6
Chief Executive’s Review 7
Financial Review 11
Our Governance
Board of Directors 12
Directors’ Report 14
Statement of Directors’ 
Responsibilities 
17
Our Financials
Independent Auditor’s Report 18
Consolidated Statement of 
Comprehensive Income
19
Statements of Changes in 
Shareholders’ Equity
20
Balance Sheets 21
Cash Flow Statements 22
Notes to the Accounts 23
Officers and Professional 
Advisors
45
Financial Highlights
Read more about our performance on 
page 7
View our interactive highlights at
animalcare.annualreport2013.com
Revenue
– continuing operations
£m 
Underlying* Basic EPS
– continuing operations
pence 
Underlying* Operating Profit
– continuing operations
£m 
+11.6%
at £12.1m
+12.9%
at 10.5p
+17.0%
at £2.7m
9.7
11.2
11.8
10.9
12.1
09 10 11 12 13
7.2
11.2
11.8
9.3
10.5
09 10 11 12 13
1.8
2.6
3.1
2.3
2.7
09 10 11 12 13
 ● Strong revenue growth from Licensed Veterinary Medicines against a flat UK companion 
animal pharmaceuticals market
 ● Focus on Companion Animal Identification has stabilised the decline in sales of 
microchips. Associated services derived from microchip database growing
 ● Three new products launched in the year and a fourth gained its Marketing Authorisation 
during the year
 ● Relocation to new premises with better facilities and increased capacity and with no 
disruption to trading
 ● Executive and senior management changes successfully completed according to plan
 ● Continued strong cash generation with year end cash of £3.7m (up from £2.3m)
*  Underlying measures are before the effect of 
exceptional costs and other items. These are 
analysed in note 4.
1
Animalcare Group plc Annual Report 2013
Our Business Our Performance Our Financials Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Animalcare Annual Report 2013.indd   1 08/10/2013   16:26:14 22779.04    Proof 3    08-10-13
Our Business and Strategy
Group at a Glance
91%
UK
NPD &
Manufacturing
across EU 
Geographic
Growth Opportunities
9% 
EU 
Licensed Veterinary Medicines
Companion Animal Identification
Animal Welfare Products
Revenue profile
59.4%
55% (2012)
48% (2011)
18.5%
21.5% (2012)
27.4% (2011)
22.0%
23.5% (2012)
23.7% (2011)
View our Group at a Glance at
animalcare.annualreport2013.com/our-business/group-at-a-glance
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
2
Animalcare Annual Report 2013.indd   2 08/10/2013   16:26:15 22779.04    Proof 3    08-10-13
Our Business and Strategy continued
Business Model
Value Capture Elements
Marketing, sales and distribution
Products sold to veterinary customers in UK and to EU distributor network
Options
Undifferentiated
Generics
 
“almost 
 identical”
Differentiated
Generics 
 
“same action,
 improved 
  acceptance” 
Enhanced 
Generics 
“pharmaceutically
 enhanced” 
 
Pool of pioneer 
veterinary
 pharmaceuticals
 
Formulation and manufacturing development,
licence application, contract manufacture
Management of EU partner network;
development projects and
product distribution in UK
Identification and selection process
based on value generation opportunities
Animal 
welfare
products
Microchips 
and associated
services
developed
and supplied 
Value
Value
Value
 ● 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 pharmaceuticals co-development projects and quid pro quo distribution
 ● Extensive reach of sales and marketing into UK veterinary customer base
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 Types: Primarily companion animals.
Products and Services: Licensed veterinary medicines, companion animal identification and animal welfare products.
Geographic Reach: Currently 91% revenue in the UK; 9% in EU with expansion plans further into EU.
3
Animalcare Group plc Annual Report 2013
Our Business Our Performance Our Financials Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Animalcare Annual Report 2013.indd   3 08/10/2013   16:26:15 22779.04    Proof 3    08-10-13
Investment case
Over the last 10 years the strategy to license and sell generic veterinary medicines has delivered significant growth; 
demonstrated by the increasing dominance of the product group in 2013 versus 2003 (59% of £12.1m revenue versus 
44% of £6.8m, respectively).
Our Business and Strategy continued
Investment Case & Strategy
2003 2013
Licensed Veterinary Medicines £3.0m (44%) £7.2m (59%)
Total £6.8m £12.1m
Where 5 or 10 years ago Animalcare 
was one of only a few companies 
pursuing a generics strategy that 
was protected from competition by 
several barriers to entry; this is no 
longer the case with a proliferation of 
companies across Northern Europe 
that have gained this know-how and 
capability.
In order to grow the profitability of its 
Licensed Veterinary Medicines group 
against new entrants to the market, 
increasng competition and greater 
pressure on margins, Animalcare 
is evolving its strategy to develop 
differentiated products and services. 
This will be achieved through 
implementation of our new product 
development strategy, Project 
Sustain. 
Through Project Sustain we will 
select well-established veterinary 
medicines and reformulate them 
to create a new range of enhanced 
generics. This will create the 
opportunity to deliver protectable 
products with increased margins 
and greater market share.
We will utilise our strong cash flow to 
invest in Sustain projects. The more 
complex development and regulatory 
requirements will result in a time to 
market of 4 to 5 years compared with 
an undifferentiated generic typically 
taking 3 years. We will manage the 
development risk by focusing on 
enhanced generic medicines based 
on known active ingredients or 
common delivery platforms.
The table opposite details the 
product development pipeline 
showing both differentiated and 
Project Sustain enhanced generic 
medicines. This is an evolving 
programme; as products are 
commercialised more are added into 
development.
A dog being scanned for a microchip
View our Investment Case & Strategy at
animalcare.annualreport2013.com/our-business/strategy
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
4
Animalcare Annual Report 2013.indd   4 08/10/2013   16:26:17 22779.04    Proof 3    08-10-13
Product development pipeline
Project Sector Expected launch* Target Markets Years to Maturity
Differentiated and 
undifferentiated generics
Stone 1 Livestock Q3 13
†
Limited EU 5
Stone 2 Companion Animal Q2 14 Limited EU 3
Poppy II Companion Animal Q2 13
†
Selected EU 2
High Companion Animal Q4 15 Selected EU 3
Pavot Companion Animal Q1 16 Limited EU 2
Amigo Companion Animal Q2 16 Selected EU 3
Trowel Companion Animal Q2 16 Limited EU 2
Raleigh Companion Animal Q2 16 EU and others 3
Beat Companion Animal Q2 16 EU and others 3
Isle Companion Animal Q3 16 EU and others 3
Sustain Projects – 
enhanced generics
Archipelago Companion Animal Q2 17 EU and others 2
Team Companion Animal Q4 17 EU and others 2
Cardinal Companion Animal and 
Livestock
Q2 18 EU and others —
* All dates are financial year 
†
 Launched as planned
At maturity UK sales are expected to be between £5 to £7 million per annum
Strategy
Our strategy for 2013–14 is to:
 ● continue our development of differentiated generic medicines at the current frequency
 ● focus on Project Sustain, to develop enhanced generic medicines
 ● increase the sales of our current products outside the UK
 ● through existing distribution in current markets
 ● by adding geographic cover with new distribution in new markets
 ● selectively strengthen UK Companion Animal Identification range of goods and services
 ● continue to rationalise non-core product groups
Our Business and Strategy continued
What is a generic medicine?
In order to obtain a Marketing Authorisation for a licensed generic medicine it has to be “essentially similar” to the originator product. 
In particular, pharmaceutical performance must be almost identical, i.e. not substantially better or worse than the originator product.
Animalcare classifies generic veterinary medicines into three broad categories:
 ● undifferentiated generics — veterinary medicines whose pharmaceutical action is the same as the originator product and which 
are almost identical in all aspects (packaging, composition, dosage size) to the originator product
 ● differentiated generics — veterinary medicines whose pharmaceutical action is the same as the originator product but where 
one or more aspects are modified to improved its acceptance by vets, owners or pets (for example packaging, flavouring, coating, 
tablet size, etc).
 ● enhanced generics — veterinary medicines developed using well-established veterinary medicines but which have been 
formulated in such a way that their pharmaceutical performance is enhanced.
5
Animalcare Group plc Annual Report 2013
Our Business Our Performance Our Financials Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Animalcare Annual Report 2013.indd   5 08/10/2013   16:26:17 22779.04    Proof 3    08-10-13
Chairman’s Statement
Introduction
I am pleased to announce that 
during the past financial year, 
Animalcare has returned to growth 
and is now in a much stronger 
position to build on this in both the 
current and subsequent years. 
Animalcare is made up of three 
product groups: Licensed Veterinary 
Medicines, Companion Animal 
Identification and Animal Welfare 
products that are all sold mainly 
through veterinary practices. The 
Licensed Veterinary Medicines 
group, which continues to be the 
main focus of our investment, 
has grown strongly in the current 
year with sales up by 20.6%. The 
Management has stabilised the 
Companion Animal Identification 
group after a difficult year in the 
previous period.
Financial Trading
Group revenues during the financial 
year increased by 11.6% from 
£10.9m to a record £12.1m. This 
is in the context of latest market 
statistics which indicate that sales of 
veterinary medicines in the UK have 
been flat. This performance has 
resulted in an increase in underlying 
operating profits, pre-exceptional and 
other items, from £2.3m to £2.7m, a 
full 17.0%. Basic underlying earnings 
per share increased to 10.5p from 
9.3p. The Group continued to be 
strongly cash generative during 
the year with the cash position 
increasing from £2.3m to £3.7m at 
the year-end which demonstrates 
the strength of the business model. 
Additional sales coming from the 
Licensed Veterinary Medicine group 
enabled us to improve margins from 
54% to 56%. The main driver of the 
increased licensed veterinary sales 
was a replacement supply of ‘single-
dose’ Buprecare ampoules and the 
launch of two new licensed generic 
veterinary medicines.
Dividend
With the increase in cash generation 
during the year and the return 
to profitable growth, your Board 
proposes to increase the final 
dividend to 3.8 pence per share. 
With this increase of 0.8 pence per 
share, and the maintained first half 
dividend of 1.5 pence per share, this 
gives a total dividend for the year 
of 5.3 pence per share, an increase 
of 17.8%.
The Board
During the financial year, your 
Board announced that Stephen 
Wildridge would step down as 
Group CEO, to be replaced by 
Dr Iain Menneer, formerly Managing 
Director of Animalcare Ltd, and 
that Stephen would remain on the 
Board as Director of Strategy and 
Business Development until the 
end of October. This has allowed 
a smooth transition for Iain into the 
role of CEO and the appointment of 
a senior management team to head 
up sales, marketing and product 
development. The Board wishes to 
thank Stephen for all his endeavours 
in building your business over the 
past ten years into one of the leading 
UK animal health companies. Iain is 
ideally qualified to take on the CEO 
role with experience in a number 
of positions within the business 
over the past ten years including 
marketing, sales and business 
development.
Prospects
Your Board is pleased with the 
return to growth of your business 
over the past 12 months and 
believes it is in a strong position 
to deliver its stated strategy. Your 
Board is also encouraged by trading 
at the beginning of the current 
financial year.
James Lambert
Chairman
James Lambert Chairman
Your Board is pleased with the return 
to growth of the business over the past 
12 months and believes it is in a strong 
position to deliver its stated strategy.
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
6
Animalcare Annual Report 2013.indd   6 08/10/2013   16:26:19 22779.04    Proof 3    08-10-13
Chief Executive’s Review
Introduction
Animalcare Group plc has delivered 
a strong performance for the year 
to 30
th 
June 2013. This noteworthy 
result has been achieved during 
a year of transition; transition that 
has placed Animalcare in a strong 
position to grow and succeed into 
the next decade. Executive and 
senior management changes have 
been completed alongside a long-
anticipated change of premises, 
both of which give us capacity for 
the future.
In addition, the Group is firmly in the 
transition to a new strategy to bring 
enhanced generic products into 
the development pipeline which will 
deliver protectable and sustainable 
commercial benefits over the 
long-term.
Iain Meneer Chief Executive Officer
The Group is firmly in the transition to a new 
strategy to bring enhanced generic products 
into the development pipeline which 
will deliver protectable and sustainable 
commercial benefits over the long-term.
Business Overview
The UK companion animal 
medicines market decreased by 
0.02% in the year to December 
2012, making our performance all 
the more significant (reference: 
National Office of Animal Health, 
www.NOAH.co.uk). Output from the 
current in-house and EU partner 
pipelines has continued to drive 
growth with three launches in the 
period, of which the principal launch 
was the re-introduction of Buprecare 
‘single-dose’ ampoules.
Revenues derived from services 
marketed to pet owners on our 
microchip pet database, Anibase, 
continued to rise in the period. 
Microchip sales volumes were 
marginally ahead of management 
expectations despite competitive 
pressure. The Animal Welfare group 
continued to perform steadily in line 
with management expectations.
Animalcare launched three products 
in 2013 (Vitofyllin, Buprecare 
ampoules and Marbocare injection). 
A fourth product received its 
Marketing Authorisation in the 
last month of the financial year 
and will be launched in H1 of the 
current year. 
Licensed Veterinary Medicines
The importance of the contribution 
from new product launches is clear, 
of less obvious impact is the critical 
mass that has been achieved by 
launching such a range of new 
products. Animalcare now has a 
much more comprehensive range of 
companion animal pharmaceuticals 
in more therapeutic areas than 
10 years ago, giving its UK sales 
team greater significance in UK 
veterinary practices.
Since the launch of Benazecare 
in 2006, the first licensed generic 
veterinary pharmaceutical in the 
recent strategy, Animalcare has 
launched 17 further new products 
that have either been products of 
our highly successful new product 
development pipeline, collaboration 
projects with our EU partners 
or straightforward distribution 
opportunities from our EU partners.
12 months 
to
 30 June 
2013
 £'000
12 months 
to
 30 June 
2012
 £'000 % change
Licensed Veterinary Medicines 7,200 5,972 20.6%
Companion Animal Identification 2,244 2,338 (4.0%)
Animal Welfare Products 2,674 2,546 5.0%
7
Animalcare Group plc Annual Report 2013
Our Financials Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Business Our Performance
Animalcare Annual Report 2013.indd   7 08/10/2013   16:26:20 22779.04    Proof 3    08-10-13
Chief Executive’s Review continued
Vitofyllin (project Quattro), the first 
of the three products to be launched 
in the period, is a treatment for 
the symptoms of old age in dogs. 
Good sales have been achieved 
through the year exceeding our 
expectations in this £2m market. 
Whilst Animalcare is looking to grow 
its market share we also believe 
that there is potential to grow this 
market as the symptoms are often 
overlooked by owners and veterinary 
professionals alike.
A new, more robust manufacturer 
has been found for Buprecare 
ampoules and in December the 
product was relaunched on schedule 
following a successful registration 
process. Revenues from sales in the 
second half have been strong and in 
line with our expectations. Buprecare 
ampoules complement the multi-
dose presentation that was launched 
in the second half of last year (ended 
30
th 
June 2012). The two Buprecare 
products generated combined 
revenues in the UK of £0.9m in the 
year ended 30
th 
June 2013.
The third launch in the year was 
Marbocare injection (project Stone 
1), a codevelopement with one of 
our EU partners. It is used in the 
treatment of respiratory infections in 
cattle and pigs. Whilst not significant 
target species for Animalcare, this 
successful registration will allow us 
to develop this active ingredient into 
our core species market.
Companion Animal Identification
Continuing sales and marketing 
efforts which have significantly 
slowed the decline in microchips 
sales to 6% in the period are set 
to maintain a positive effect. Over 
3.5 million owners have their 
pets registered on our microchip 
database, Anibase. Improvements 
in the way we are able to market 
associated goods and services to 
these pet owners has allowed us to 
increase revenues and at improved 
margins as efficiencies have 
been achieved in operational and 
marketing activities.
Animal Welfare Products
The Animal Welfare product group 
is made up of a variety of product 
sub-groups. Half of this group’s 
revenue is generated from infusion 
accessories that complement the 
sale of our intravenous infusion 
fluids. The infusion accessories 
sub-group grew by 3% in the year to 
30
th 
June 2013. The remaining half 
is made up of unconnected legacy 
products that are increasingly difficult 
to differentiate from their competitor 
products. They also continue to 
require operational support. Most 
of these products are in decline 
and it is our strategy to selectively 
withdraw from these markets. During 
the year, the first of these products 
was discontinued from sale.
Vitofyllin
Database Operative, Anibase
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
8
Animalcare Annual Report 2013.indd   8 08/10/2013   16:26:24 22779.04    Proof 3    08-10-13
Operational Overview
Animalcare had outgrown its leased 
warehouse and offices some time 
ago. In March, after a programme 
of refurbishment, the business was 
moved to the new premises, still in 
the York area, with no disruption 
to trading. The new warehouse 
operation has approximately 70% 
more capacity than the old facility, 
allowing for the planned business 
growth to 2020 and beyond. 
The office move has allowed IT 
infrastructure to be upgraded 
resulting in a much more capable 
and robust system. Overall, our 
operations are now in good shape 
for the years ahead.
In January, the Company announced 
that Stephen Wildridge would leave 
the business in October 2013. In 
the intervening period he assumed 
the role of Director of Strategy and 
Business Development. In August 
2013 Karolyn Tapper joined the 
business as Director of Business 
Development. Karolyn has 19 years’ 
experience working in a global 
contract manufacturing company 
with experience in pharmaceutical 
formulation, project management 
and business development. There 
has been a thorough handover 
to ensure the momentum of new 
product development is maintained.
Also in August, Torben Orskov was 
promoted to Director of Technical 
and Regulatory Affairs. Torben is 
a qualified veterinary surgeon with 
10 years’ experience in companion 
and large animal practice before he 
joined Animalcare in 2006. Torben 
has been heavily involved in the 
technical and regulatory aspects of 
the product development pipeline.
Both appointments reflect our 
continued emphasis on the new 
product development strategy and 
more specifically the increasing 
importance of Project Sustain.
Future Developments
Animalcare will continue to launch 
undifferentiated generic licensed 
veterinary medicines from its 
in-house development pipeline, 
co-developed projects with our 
European partners or simple 
distribution products from our 
existing partners in Europe.
In July 2013, we launched 
an enhanced presentation of 
Phenoleptil, a product used in the 
prevention of epileptic seizures in 
dogs. Phenoleptil was originally 
launched in June 2011. The 
enhanced presentation makes 
accurate dosing of patients easier 
and will allow us to gain faster 
market penetration as it has practical 
prescribing advantages for the 
veterinary surgeon.
Two further products, one from our 
own development pipeline and one 
a distribution product, are in the final 
commercialisation planning stages 
for launch in Q2 of this year. Both 
products are for use in companion 
animal medicine.
Depending on the time required to 
fully develop the market for the three 
products outlined above we may also 
launch a fourth product in H2.
During this financial year we will 
be upgrading the software tools 
available to our sales team. We 
have identified a partner who will be 
able to enhance the management 
information we can derive from 
our sales data; as well as reducing 
the administrative work by the 
wider team.
We also expect to see significant 
progress on Project Sustain that 
will crystalise the work already 
undertaken. We forecast the first 
products to launch in 2017-18.
In addition, we expect to take the 
first steps in this period to expand 
the geographic footprint of territories 
in which Animalcare distributes 
outside the UK.
A dog being implanted with a microchip
9
Animalcare Group plc Annual Report 2013
Our Financials Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Business Our Performance
Animalcare Annual Report 2013.indd   9 08/10/2013   16:26:24 22779.04    Proof 3    08-10-13
Outlook
In February, the UK Parliament 
announced that it will be 
compulsory for all dogs in England 
to be microchipped by April 2016. 
Furthermore, the Welsh Assembly 
has now announced that it will 
introduce similar legislation for 
implementation in March 2015. 
Whilst there will be some undoubted 
commercial opportunities as a 
result of this legislation, in the short 
to medium-term, it is not yet clear 
how the initial implementation will 
impact Animalcare. However, as 
a company selling microchips and 
also administering the Anibase pet 
database of over 3.5million pets and 
their owners, Animalcare remains in 
a strong position in this market for 
the medium-term after a potential 
initial disruptive period.
We have commented in previous 
reports that competition is strong 
in the Licensed Veterinary 
Medicines market, however, we 
have consistently outperformed 
the UK market and we believe this 
will continue.
Over the past seven years, since 
the launch of the first product 
from the Animalcare new product 
pipeline, the Group has achieved 
increased revenues and profitability. 
However, with this upside comes 
the requirement to invest further 
in the routine maintenance 
of the associated Marketing 
Authorisations. The number of 
Marketing Authorisation licences that 
Animalcare owns and therefore must 
maintain was 14 in 2003 rising to 
136 in 2013.
Having delivered a successful 
undifferentiated and differentiated 
generics strategy, the Company is 
moving into a period of investment 
for the future. We intend to invest 
more in research and development, 
particularly in enhanced generics, 
than we have to date. In this context, 
we expect limited growth in the 
coming 12 to 36 months, however 
this will put the foundations in 
place to deliver the next phase in 
our strategy.
As these projects are 
commercialised from 2017 onwards 
we believe the rewards will be 
significant and ensure the future 
growth and success of the Group.
Iain Menneer
Chief Executive Officer
Aqupharm intravenous fluids in use
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
10
Animalcare Annual Report 2013.indd   10 08/10/2013   16:26:24 22779.04    Proof 3    08-10-13
The Group has made good progress 
during the financial year, achieving 
a 17.0% increase in underlying* 
operating profit to £2.7m (2012 — 
£2.3m) and a £0.6m increase in 
cash generated by operations to 
£3.1m (2012 — £2.5m). We continue 
to have a robust balance sheet to 
support the strategy and invest in our 
long-term future. 
Revenue and gross profit
Group revenues increased by 11.6% 
to £12.1m (2012 — £10.9m), the 
key driver of which was the strong 
growth achieved in our Licensed 
Veterinary Medicines product group. 
For further analysis of the Group’s 
revenue performance please refer to 
our Chief Executive’s Review.
The gross profit margin for 2013 was 
56%, representing a year-on-year 
increase of 2%. This was achieved 
through a combination of successful 
new product launches and a shift 
towards a larger proportion of 
Group sales being generated by 
our Licensed Veterinary Medicines 
product group.
Operating profit
Underlying* operating profit 
increased by 17.0% to £2.7m (2012 
— £2.3m) reflecting the improved 
trading performance offset in part by 
an increase in administrative costs 
of £0.5m. The increase primarily 
resulted from additional staff costs of 
£0.3m, reflecting the strengthening 
of the senior management team 
and higher performance-related 
pay, together with a £0.1m increase 
in share based payment charges. 
Notwithstanding the increase, the 
Group continues to maintain a firm 
control on costs.
During the year we incurred 
exceptional costs of £0.3m 
(2012 — £0.1m) largely as a result 
of executive Board changes and 
one-off head office relocation costs. 
Further details are provided in  
note 4.
Reflecting all of the above, Group 
operating profit was up 8.9% to 
£2.3m (2012 — £2.1m).
Taxation
The tax charge for the year of £0.4m 
(2012 — £0.4m) takes into account 
prior year research and development 
tax credits totalling £0.2m. Hence the 
effective tax rate of 19.1% (2012 — 
17.9%) is again below the headline 
rate of corporation tax.
Earnings per share (“EPS”)
Basic underlying* EPS increased 
by 12.9% to 10.5 pence (2012 — 
9.3 pence). The statutory basic 
EPS increase was lower at 8.3% 
to 9.1 pence (2012 — 8.4 pence), 
principally due to the higher 
exceptional items in the year.
Dividend
Subject to shareholder approval 
at the Annual General Meeting 
on 5
th 
November 2013, the Board 
proposes paying a final dividend 
of 3.8 pence per share on 
14
th 
November 2013 to shareholders 
on the register on 4
th 
October 2013. 
This would make a total dividend 
of 5.3 pence per share for 2013, 
an increase of 17.8%, reflecting 
the growth in earnings and cash 
generated from operations. The 
total dividend for the year is covered 
2.0 times by underlying* earnings 
(2012 — 2.1 times).
Cash flow
Cash flows generated by operations 
were £3.1m (2012 — £2.5m). 
£0.2m of this increase is attributable 
to favourable working capital 
movements which reversed in the 
first week of 2014.
Net income taxes paid at £0.3m 
(2012 — £0.4m) include a £0.2m 
cash benefit in relation to prior 
year research and development 
tax credits.
Capital expenditure increased to 
£0.5m (2012 — £0.3m), driven 
primarily by the Group’s relocation 
to its newly refurbished head office 
and warehouse which were occupied 
from March 2013. Expenditure on 
new product development during 
2012 at £0.1m (2012 — £0.2m) 
was lower than anticipated due to 
delays in certain project schedules. 
However, in line with our strategy we 
plan to accelerate capital spending in 
2014 and during the last 6 months, 
the Board has approved 3 new 
development projects.
Net cash increased by £1.4m to 
£3.7m (2012 — £2.3m). This strong 
cash flow is enabling the Group to 
fund its new product development 
pipeline from internal resources.
Chris Brewster
Chief Financial Officer
*  Underlying measures are before the 
effect of exceptional costs and other 
items. These are disclosed in note 4 to 
the financial statements.
Chris Brewster Chief Financial Officer
Financial Review
11
Animalcare Group plc Annual Report 2013
Our Financials Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Business Our Performance
Animalcare Annual Report 2013.indd   11 08/10/2013   16:26:26 22779.04    Proof 3    08-10-13
www.animalcaregroup.co.uk Stock Code: ANCR
Chris Brewster
Chief Financial Officer and 
Company Secretary
Age: 38
Board Committee membership: 
None
Experience: 
Chris was appointed Chief Financial Officer 
in June 2012. A chartered accountant by 
profession, Chris worked at KPMG for 10 
years before assuming the role of Group 
Accounting Manager at Findus Group 
during 2010.
Lord Downshire
Non-Executive Director
Age: 54
Board Committee membership: 
Audit Committee and Remuneration 
Committee
Experience: 
He joined the board of Animalcare in 
2008 when it was acquired by Ritchey 
plc for whom he acted as a director since 
1998. Nicholas is a qualified accountant 
who has worked in corporate finance 
and venture capital, plus holding non-
executive directorships in a diverse range 
of businesses.
James Lambert
Non-Executive Chairman
Age: 55
Board Committee membership: 
Nomination Committee
Experience: 
James was appointed Chairman in 2008 
when it was acquired by Ritchey plc for 
whom he was chairman since 2005 and 
non-executive director since 2003. James 
started at Richmond Foods in 1998 leading 
a series of acquisitions to make Richmond 
the largest ice cream manufacturer by 
volume in the UK. James is now chairman 
of R & R Ice cream. 
Board of Directors
1
1
2
2
3
3
4
View our interactive Board of Directors online at 
animalcare.annualreport2013.com/our-governance/board-of-directors
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
12
Animalcare Annual Report 2013.indd   12 08/10/2013   16:26:42 22779.04    Proof 3    08-10-13
13
www.animalcaregroup.co.uk Stock Code: ANCR
Our Business
4
4
5
5
6
6
Iain Menneer
Chief Executive Officer
Age: 43
Board Committee membership: 
Secretary Remuneration Committee from 
January 2013, Secretary Nomination 
Committee from January 2013
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.
Ray Harding
Non-Executive Director
Age: 63
Board Committee membership: 
Remuneration Committee (Chair), 
Nomination Committee (Chair)
Experience: 
Ray Harding was appointed to the Board 
in 2011. He 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 in 2012 and is now an independent 
consultant.
Stephen Wildridge
Director of Strategy and 
Business Development
Age: 57
Board Committee membership: 
Secretary Remuneration Committee until 
January 2013
Experience: 
Stephen Wildridge joined Animalcare Ltd 
as Managing Director in April 2003 and 
joined the Board of Animalcare Group plc 
on its formation in January 2008. He was 
appointed Chief Executive Officer of the 
Group in April 2010 and stepped down 
in January 2013 to become Director of 
Strategy and Business Development. He 
will resign from the Group in October 2013.
13
Animalcare Group plc Annual Report 2013
Our Performance Our Financials
www.animalcaregroup.co.uk Stock Code: ANCR
Our Governance Our Business
Animalcare Annual Report 2013.indd   13 08/10/2013   16:26:57 22779.04    Proof 3    08-10-13
www.animalcaregroup.co.uk Stock Code: ANCR
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 2013.
Principal Activities
The principal activity of the Group 
during the year was the sales and 
distribution of veterinary medicines, 
identification and other products for 
companion animals. 
Business Review and Future 
Developments
A review of the business and 
future developments is provided in 
the Chairman’s Statement, Chief 
Executive’s Review and Financial 
Review.
Research and Development
Our new product development 
programme is key to the future 
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 2013 the Group 
incurred research and development 
expenses of £138,000 (2012 — 
£89,000) and a further £102,000 
(2012 — £169,000) was capitalised 
as development costs.
Dividends
Subject to shareholder approval 
at the Annual General Meeting 
on 5
th 
November 2013, the Board 
proposes paying a final dividend 
of 3.8 pence per share on 
14
th 
November 2013 to shareholders 
on the register on 4
th 
October 2013. 
This would make a total dividend of 
5.3 pence per share for 2013.
Capital Structure
The Company’s issued share capital 
as at 30
th 
June 2013 was 20,745,204 
ordinary shares of 20 pence each, 
each credited as fully paid.
Directors
The following Directors held office 
during the year ended 30
th 
June 2013 
and subsequently:
C J Brewster
Lord Downshire
R B Harding
J S Lambert
I D Menneer
S M Wildridge
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 2013 and remains in 
place at the date of this report.
Directors’ Report
Principal Risks and Uncertainties
Risk Description and Mitigation
Failure of new product 
development projects
A key element of the Group’s strategy is to expand its portfolio of veterinary medicines, the success of 
which depends on these products meeting the required regulatory standards and achieving the necessary 
marketing authorisations. Rejection of applications or delays in the regulatory process could have an 
important impact on the Group’s results. Also there can be no guarantee of the commercial success of 
these products following their launch. The risks of failure, rejection or delay are mitigated or reduced 
by the careful selection of development strategies that although they may increase initial cost or time 
of development, reduce the likelihood of complete unexpected failure of a project. At the same time the 
overall risk of any one project failure having a major influence on the performance of the business is 
reduced by having a product development pipeline that has numerous projects within it at various stages of 
development.
Reliance on a small number 
of key customers
The Group derives a substantial proportion of its revenue from a number of key customers. In the event 
that these relationships are lost the effect on the Group’s revenue could be significant. In the UK however, 
such effect is likely to be temporary as the supply chain would rapidly adjust to take up the slack brought 
about by any catastrophic failure. Equally, as our business develops its scope into new markets the key 
customer base continues to grow.
Failure of a major supplier or 
contract manufacturer
The Group purchases goods for resale under supply and distribution agreements with a number of 
key suppliers and contract manufacturers. Failure of supply under these arrangements could result in 
significant loss of Group revenue. Dual sourcing is implemented where practicable for key elements of the 
range and where that is not possible, different parts of the range are sourced from different suppliers. Our 
increased warehouse capacity now allows us the ability to maintain contingency stocks where deemed 
appropriate.
Loss of key employees The Group has a small senior Executive and management team whose skills, knowledge and experience 
are key to the success of the Group's performance. Succession planning is given consideration by the 
Board and remuneration policies are designed to attract, retain and reward key employees with ability and 
experience to execute the Group's strategy. We have recently implemented a single performance appraisal 
process to help align Executive remuneration with individual performance.
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
14
Animalcare Annual Report 2013.indd   14 08/10/2013   16:26:57 22779.04    Proof 3    08-10-13
15
www.animalcaregroup.co.uk Stock Code: ANCR
Our Business
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 2013 was 61 days 
(2012 — 50 days).
Corporate Governance
The Directors support the underlying 
principles of the Combined Code, 
not withstanding that the Company 
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 Company’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. 
Charitable and Political 
Donations
During the year the Group 
made charitable donations of 
£50 (2012 — £166). No political 
donations were made during the 
year (2012 — £nil).
Employees
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.
The Directors recognise the 
importance of good communications 
with employees and continue to 
consult and inform them on matters 
affecting them and the performance 
of the Group. Employees are 
provided with financial incentives 
related to the performance of 
the Group in the form of annual 
bonuses and the opportunity to 
participate in approved sharesave 
schemes. During the financial year 
the Company granted options under 
the Animalcare Group plc Savings 
Related Share Option Scheme 
(SAYE) to all employees.
Substantial Shareholdings
On 13
th 
September 2013 the 
Company had been notified, in 
accordance with the Disclosure 
Rules and Transparency Rules, of 
the following interests exceeding the 
3% notification threshold:
Name of holder
No. of
 ordinary 
shares
%
 holding
Investec Wealth Management Limited including the beneficial shareholding of  
S F Riddell of 927,000 shares (4.5%)* 3,035,239 14.6%
Brewin Dolphin including the shareholding of J S Lambert of 1,413,691 shares 
(6.8%) 2,169,417 10.5%
Liontrust Asset Management 2,059,251 9.9%
Octopus Investments 1,670,216 8.1%
Lord Downshire** 1,420,029 6.9%
Unicorn Asset Management 1,250,500 6.0%
Hargreave Hale 1,219,997 5.9%
Allianz Global Investors KAG 1,068,000 5.2%
N R Sale 613,400 3.0%
* S F Riddell’s shareholding includes a non-beneficial interest in 565,500 ordinary shares
** Lord Downshire’s interest includes a non-beneficial interest in 310,446 ordinary shares
15
Animalcare Group plc Annual Report 2013
Our Performance Our Financials
www.animalcaregroup.co.uk Stock Code: ANCR
Our Governance Our Business
Animalcare Annual Report 2013.indd   15 08/10/2013   16:26:57 22779.04    Proof 3    08-10-13
www.animalcaregroup.co.uk Stock Code: ANCR
Directors’ Report continued
Going Concern
The principal risks and uncertainties 
facing the Group are set out on 
page 14.
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 
2013 the Group had cash on hand 
of £3.75 million (30
th 
June 2012 — 
£2.31 million).
Overall, the Directors believe the 
Group is well placed to manage its 
business risks successfully despite 
the current uncertain economic 
outlook. 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.
Auditors
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 auditors are 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 Company’s auditors are 
aware of that information.
This confirmation is given and should 
be interpreted in accordance with the 
provisions of s418 of the Companies 
Act 2006.
Our auditors, KPMG Audit Plc, 
have instigated an orderly wind 
down of their business. The Board 
has decided to put KPMG LLP 
forward to be appointed as auditors 
and a resolution concerning their 
appointment will be put to the 
members at the forthcoming Annual 
General Meeting.
Animalcare Group plc
By order of the Board,
Chris Brewster
Company Secretary
24
th 
September 2013
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
16
Animalcare Annual Report 2013.indd   16 08/10/2013   16:26:57 22779.04    Proof 3    08-10-13
17
www.animalcaregroup.co.uk Stock Code: ANCR
Our Business
Statement of Directors’ Responsibilities
in respect of the Annual Report and the Financial Statements for the year ended 30ᵗʰ June 2013
The Directors are responsible for preparing 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.
17
Animalcare Group plc Annual Report 2013
Our Performance Our Financials
www.animalcaregroup.co.uk Stock Code: ANCR
Our Governance Our Business
Animalcare Annual Report 2013.indd   17 08/10/2013   16:26:57 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Independent Auditor’s Report to the 
Members of Animalcare Group plc
We have audited the financial statements of Animalcare Group plc for the year ended 30
th 
June 2013 set out on pages 19 to 44. 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 
auditors’ 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.
Respective responsibilities of Directors and auditors
As explained more fully in the Directors’ Responsibilities Statement set out on page 17 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.
Opinion 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 2013 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;
 ● the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the 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.
Chris Hearld (Senior 
Statutory Auditor)
For and on behalf of
KPMG Audit Plc
Statutory Auditor
Chartered Accountants
1 The Embankment
Leeds
LS1 4DW
24
th 
September 2013
18
Animalcare Annual Report 2013.indd   18 08/10/2013   16:26:57 22779.04    Proof 3    08-10-13
Note
Underlying
 results before
 exceptional 
and
 other items
 2013
 £'000
Exceptional and
other items(i)
2013
£'000
Total
2013
£'000
Underlying
results before
exceptional and
other items
2012
£'000
Exceptional and
other items(i)
2012
£'000
Total
2012
£'000
Revenue 5 12,118 — 12,118 10,856 — 10,856
Cost of sales (5,337) — (5,337) (4,994) — (4,994)
Gross profit 6,781 — 6,781 5,862 — 5,862
Distribution costs (271) — (271) (262) — (262)
Administrative expenses (3,826) (392) (4,218) (3,306) (190) (3,496)
Operating profit/(loss) 4, 6 2,684 (392) 2,292 2,294 (190) 2,104
Finance income 9 27 11 38 2 — 2
Profit/(loss) before tax 4, 6 2,711 (381) 2,330 2,296 (190) 2,106
Income tax (expense)/credit 10 (535) 90 (445) (395) 18 (377)
Total comprehensive 
income/(loss) for the year 2,176 (291) 1,885 1,901 (172) 1,729
Earnings per share
Basic 12 10.5p 9.1p 9.3p 8.4p
Fully diluted 12 10.4p 9.0p 9.2p 8.4p
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.
Consolidated Statement of Comprehensive Income
Year ended 30ᵗʰ June 2013
19
Animalcare Group plc Annual Report 2013
Our Performance Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Financials Our Business
Animalcare Annual Report 2013.indd   19 08/10/2013   16:26:58 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Group Note
Share Capital
£'000
Share Premium 
Account
£'000
Retained 
Earnings
£'000
Total
£'000
Balance at 1
st
 July 2011 4,075 6,045 5,669 15,789
Total comprehensive loss for the year — — 1,729 1,729
Transactions with owners of the Company, recognised in 
equity:
Dividends paid 11 — — (926) (926)
Issue of share capital 23 69 128 — 197
Share-based payments — — 48 48
Balance at 1
st
 July 2012 4,144 6,173 6,520 16,837
Total comprehensive profit for the year 1,885 1,885
Transactions with owners of the Company, recognised in 
equity:
Dividends paid 11 (932) (932)
Issue of share capital 23 5 19 — 24
Share-based payments — — 148 148
Balance at 30
th 
June 2013 4,149 6,192 7,621 17,962
Company Note
Share Capital
£'000
Share Premium 
Account
£'000
Retained 
Earnings
£'000
Total
£'000
Balance at 1
st
 July 2011 4,075 6,045 5,054 15,174
Total comprehensive loss for the year — — (438) (431)
Transactions with owners of the Company, recognised in 
equity:
Dividends paid 11 — — (926) (926)
Issue of share capital 23 69 128 — 197
Share-based payments — — 22 22
Balance at 1
st
 July 2012 4,144 6,173 3,712 14,029
Total comprehensive loss for the year — — (471) (471)
Transactions with owners of the Company, recognised in 
equity:
Dividends paid 11 — — (932) (932)
Issue of share capital 23 5 19 — 24
Share-based payments — — 90 90
Balance at 30
th 
June 2013 4,149 6,192 2,399 12,740
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.
Statements of Changes in Shareholders’ Equity
Year ended 30ᵗʰ June 2013
20
Animalcare Annual Report 2013.indd   20 08/10/2013   16:26:58 22779.04    Proof 3    08-10-13
Note
     Group     Company
2013
£'000
2012
£'000
2013
£'000
2012
£'000
Non-current assets
Goodwill 13 12,711 12,711 — —
Other intangible assets 14 1,538 1,728 — —
Property, plant and equipment 15 412 83 — —
Investments in subsidiary companies 16 — — 14,361 14,361
Deferred tax asset 22 — — 32 31
14,661 14,522 14,393 14,392
Current assets
Inventories 17 1,418 1,420 — —
Trade and other receivables 18 1,662 1,297 578 866
Cash and cash equivalents 19 3,745 2,305 1,791 1,738
6,825 5,022 2,369 2,604
Total assets 21,486 19,544 16,762 16,996
Current liabilities
Trade and other payables 19 (1,982) (1,316) (4,022) (2,967)
Current tax liabilities (362) (169) — —
Deferred income 21 (231) (207) — —
Current liabilities (2,575) (1,692) (4,022) (2,967)
Net current assets/(liabilities) 4,250 3,330 (1,653) (363)
Non-current liabilities
Deferred income 21 (790) (844) — —
Deferred tax liabilities 22 (159) (171) — —
(949) (1,015) —
Total liabilities (3,524) (2,707) (4,022) (2,967)
Net assets 17,962 16,837 12,740 14,029
Capital and reserves
Called up share capital 23 4,149 4,144 4,149 4,144
Share premium account 6,192 6,173 6,192 6,173
Retained earnings 7,621 6,520 2,399 3,712
Equity attributable to equity holders of
the parent 17,962 16,837 12,740 14,029
The financial statements of Animalcare Group plc, registered number 1058015, were approved by the Board of Directors and authorised for 
issue on 24th September 2013.
They were signed on its behalf by:
 
Chris Brewster
Chief Financial Officer
Balance Sheets
30ᵗʰ June 2013
21
Animalcare Group plc Annual Report 2013
Our Performance Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Financials Our Business
Animalcare Annual Report 2013.indd   21 08/10/2013   16:26:58 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Note
     Group     Company
2013
£'000
2012
£'000
2013
£'000
2012
£'000
Comprehensive income/(loss) for the year before tax 10 2,330 2,106 (596) (528)
Adjustments for:
Depreciation of property, plant and equipment 15 32 19 — —
Amortisation of intangible assets 14 319 307 — —
Finance income 9 (27) (2) (25) (2)
Share-based payment award 25 149 48 90 22
(Release)/deferral of deferred income 21 (30) 7 — —
Loss on disposal of motor vehicles 21 — — —
Operating cash flows before movements in working capital 2,794 2,485 (531) (508)
Decrease/(increase) in inventories 17 2 (74) — —
(Increase)/decrease in receivables 18 (365) 384 413 1
Increase/(decrease) in payables 19 665 (250) 1,056 2,765
Cash generated by operations 3,096 2,545 938 2,258
Income taxes paid (265) (422) —
Net cash flow from operating activities 2,831 2,123 938 2,258
Investing activities:
Payments to acquire intangible assets 14 (129) (215) — —
Payments to acquire property, plant and equipment 15 (379) (55) — —
Interest received 25 2 23 2
Net cash (used in)/generated by investing activities (483) (268) 23 2
Financing:
Receipts from issue of share capital 24 197 24 197
Equity dividends paid 11 (932) (926) (932) (926)
Net cash used in financing activities (908) (729) (908) (729)
Net increase in cash and cash equivalents 1,440 1,126 53 1,531
Cash and cash equivalents at start of year 2,305 1,179 1,738 207
Cash and cash equivalents at end of year 3,745 2,305 1,791 1,738
Comprising:
Cash and cash equivalents 18 3,745 2,305 1,791 1,738
Cash Flow Statements
Year ended 30ᵗʰ June 2013
22
Animalcare Annual Report 2013.indd   22 08/10/2013   16:26:58 22779.04    Proof 3    08-10-13
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 subsidiaries. The nature of the Group’s operations and its principal 
activities are set out in note 5 and within the Directors’ Report.
The IASB and IFRIC have issued the following standards and interpretations, 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 2009-2011 January 2013
IAS 19 Post-employment benefits (amended) January 2013
IFRS 10 Consolidated Financial Statements January 2013
IFRS 12 Disclosure of Interests in Other Entities January 2013
IFRS 13 Fair value measurement January 2013
IFRS 9 Financial Instruments January 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
The principal risks and uncertainties facing the Group are set out in the Directors’ Report.
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 2013 the Group had cash on hand of £3.75m (30
th 
June 2012 — £2.31m).
Overall, the Directors believe the Group is well placed to manage its business risks successfully despite the current uncertain economic 
outlook. 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 entities controlled by the Company (its 
subsidiaries) 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 subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income 
from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries 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.
Business combinations
The acquisition of subsidiaries and other businesses is accounted for using the purchase method. The cost of the acquisition is measured 
at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued 
by the Group in exchange for control of the acquiree. Costs directly attributable to the business combination are expensed. The acquiree’s 
identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 (revised) are recognised at their 
fair value at the acquisition date, except for non-current assets (or disposal groups) that are classified as held for sale in accordance with 
IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations, which are recognised and measured at fair value less costs to sell.
Notes to the Accounts
23
Animalcare Group plc Annual Report 2013
Our Performance Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Financials Our Business
Animalcare Annual Report 2013.indd   23 08/10/2013   16:26:58 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Notes to the Accounts continued
2. Significant Accounting Policies continued
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, fair value movements on interest rate hedging and impairment of 
goodwill.
The separate presentation of exceptional and other items enables the users of the accounts to better understand the elements of financial 
performance during the year and hence to better assess trends in that financial 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.
Goodwill arising on acquisitions before the date of transition to IFRS (1
st
 July 2004) has been retained at the previous UK GAAP amounts 
subject to being tested for impairment at that date. Goodwill written off to reserves under UK GAAP prior to 1998 has not been reinstated 
and is not included in determining any subsequent profit or loss on disposal.
Intangible assets
The Group recognises intangible assets at cost less accumulated amortisation and impairment losses. Intangible assets arise both as a 
result of applying IFRS 3 which requires the separate recognition of intangible assets from goodwill on all business combinations from 
1
st
 January 2004, and from the purchase of software (that is separable from any associated hardware), and development machinery and 
from research and development (see below).
Intangible assets are amortised on a straight-line basis over their useful economic lives as follows:
Customer relationships 10 years
Brands 15 years
Software Useful life of the software
Research and development Estimated economic life, normally 4–7 years
The useful life of software is currently estimated to be 2–4 years.
Internally generated intangible assets — research and development expenditure
Expenditure on research activities is recognised as an expense in the year in which it is incurred.
An internally generated intangible asset arising from the Group’s product development is recognised only if all of the following conditions  
are met:
 ● an asset is created that can be identified (such as software and new processes);
 ● it is probable that the asset created will generate future economic benefits; and
 ● the development cost of the asset can be measured reliably.
Internally generated intangible assets are amortised on a straight-line basis over their useful 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.
24
Animalcare Annual Report 2013.indd   24 08/10/2013   16:26:58 22779.04    Proof 3    08-10-13
2. Significant Accounting Policies continued
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.
Assets held under finance leases are recognised as assets of the Group at their fair value or, if lower, at the present value of the minimum 
lease payments, each determined at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as 
a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve 
a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income, unless they are 
directly attributable to qualifying assets, in which case they are capitalised in accordance with the Group’s general policy on borrowing costs 
(see below).
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 Chief Executive Officer to make decisions about resources to be allocated to the segment 
and assess its performance, and for which discrete financial information is available.
Segment results that are reported to the Chief Executive Officer include items directly attributable to a segment, as well as those that can be 
allocated on a reasonable basis. Unallocated items comprise mainly central Group administration costs, interest, taxation, and bank loans.
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 
weighted average method. 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.
25
Animalcare Group plc Annual Report 2013
Our Performance Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Financials Our Business
Animalcare Annual Report 2013.indd   25 08/10/2013   16:26:58 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Notes to the Accounts continued
2. Significant Accounting Policies continued
Share-based payments
The Group has applied the requirements of IFRS 2 Share-based Payment. In accordance with the transitional provisions, IFRS 2 has been 
applied to all grants of equity instruments after 7
th 
November 2002 that were unvested at 1
st
 January 2005.
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.
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
Freehold Buildings 50 years
Leasehold improvements 10 years
Plant and equipment 4 to 7 years
Office furniture and equipment 3 to 5 years
Motor vehicles 4 years
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, 
over the term of the relevant lease.
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.
26
Animalcare Annual Report 2013.indd   26 08/10/2013   16:26:59 22779.04    Proof 3    08-10-13
2. Significant Accounting Policies continued
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.
Derivative financial instruments
The Group uses derivative financial instruments including interest rate swaps to hedge its exposure to interest rate risks arising from 
operational and financial activities. The Group does not hold any derivative financial instruments for trading purposes. However, derivative 
financial instruments that do not qualify for hedge accounting are accounted for as trading instruments.
Hedge accounting is not adopted and therefore the movement on remeasurement to fair value is recognised immediately as part of 
finance income or finance costs in the Consolidated Statement of comprehensive income. Derivatives not designated into an effective 
hedge relationship are classified as a current asset or current liability. Fair value movements on interest rate hedging are included within 
“exceptional and other items” on the face of the statement of comprehensive income.
27
Animalcare Group plc Annual Report 2013
Our Performance Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Financials Our Business
Animalcare Annual Report 2013.indd   27 08/10/2013   16:26:59 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Notes to the Accounts continued
3. Critical Accounting Judgements and Key Sources of Estimation Uncertainty
Critical judgements in applying the Group’s accounting policies
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 research & development expenditure
It is the Group’s policy to capitalise development expenditure and to amortise this expenditure over the estimated life of the asset. 
Expenditure incurred to date relates primarily to the following:
 ● certain costs associated with preparing regulatory dossiers in support of applications for generic veterinary medicine Marketing 
Authorisations.
The Directors have adjudged these costs to meet the relevant criteria of IAS 38 “Intangible Assets”.
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, 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 11.9% (2012 — 11.3%). The Directors’ 
sensitivity analysis indicates significant headroom to the carrying value of the CGU when taking into account a reasonably possible change 
in any one of the key assumptions used in the value in use calculations. 
The Group prepares cash flow forecasts derived from the most recent financial budgets and projections approved by management for the 
next five years, thereafter assuming an estimated growth rate of 1.3% (2012 — 1.9%). 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 an annual stockholding review to determine any slow-moving or obsolete lines and accordingly makes provision in its 
financial statements for writing down or writing off the value of such lines in order to reflect the true value of its stock.
28
Animalcare Annual Report 2013.indd   28 08/10/2013   16:26:59 22779.04    Proof 3    08-10-13
4. Exceptional and Other Items
Note
2013
£'000
2012
£'000
Executive and management severance payments 152 71
Amortisation of acquired intangible assets 14 119 119
Head office relocation 121 —
Fair value movements on foreign currency hedging 9 (11) —
Total exceptional and other items 381 190
On 11
th 
January 2013, Stephen Wildridge stepped down from the position as Group CEO and will remain in the Group until the end of 
October 2013 as Director of Strategy and Business Development. The total compensation package agreed on 11
th 
January 2013 in relation 
to Stephen stepping down as CEO is £71,000 which is due to be paid on 31
st
 October 2013, and in addition, an accelerated share based 
payments charge of £39,000 has been recognised to reflect Stephen’s ability to exercise early any outstanding share options at 31
st
 October 
2013. The balance of £42,000 relates to management severance payments.
Head office relocation costs principally represent operating costs of the new premises whilst unoccupied together with one-off regulatory 
costs associated with changing the address on our pharmaceutical licences. 
On 11
th 
November 2011 Peter Warner resigned from the Board. On termination of this contract, he received a compensation package 
totalling £71,000 including associated employer’s national insurance.
5. Revenue and Operating 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 Chief Executive Officer of Animalcare Group plc. Performance assessment is based on underlying operating profit.
The Group solely comprises one reportable segment, being Companion Animal.
Note
Companion 
Animal
2013
£'000
Companion 
Animal
2012
£'000
Revenue 12,118 10,856
Gross Profit 6,781 5,862
Underlying Operating Profit 2,684 2,294
Other Items 4 (119) (119)
Exceptional items 4 (273) (71)
Operating Profit 2,292 2,104
Finance Income 9 38 2
Profit before tax 2,330 2,106
29
Animalcare Group plc Annual Report 2013
Our Performance Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Financials Our Business
Animalcare Annual Report 2013.indd   29 08/10/2013   16:26:59 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Notes to the Accounts continued
5. Revenue and Operating Segments continued
Note
Companion 
Animal
2013
£'000
Companion 
Animal
2012
£'000
Products and Services
Licensed veterinary 7,200 5,972
Animal identification 2,244 2,338
Animal welfare 2,674 2,546
12,118 10,856
Other information
Intangible asset additions 14 129 215
Property, plant and equipment additions 15 379 55
Depreciation and amortisation 14, 15 351 326
Consolidated assets 21,486 19,544
Consolidated liabilities (3,524) (2,707)
Consolidated net assets 17,962 16,837
2013
£'000
2012
£'000
Key customers
Number 3 3
Percentage of total revenue 80% 74%
Key customers, all within the Companion Animal segment, are those responsible for 10% or more of segmental revenue.
2013
£'000
2012
£'000
Geographical market
United Kingdom 11,061 10,023
Other European countries 1,057 833
12,118 10,856
All the Group assets are wholly located in the United Kingdom and accordingly no geographical analysis of assets and liabilities is 
presented.
An analysis of total Group revenue is as follows:
2013
£'000
2012
£'000
Revenue from sale of goods 11,250 10,052
Revenue from provision of services 868 804
12,118 10,856
Finance income 27 2
12,145 10,858
30
Animalcare Annual Report 2013.indd   30 08/10/2013   16:26:59 22779.04    Proof 3    08-10-13
6. Total Comprehensive Income/(Loss) for the Year
2013
£'000
2012
£'000
Total comprehensive income/(loss) for the year has been arrived at after charging:
Cost of inventories recognised as expense 5,218 4,911
Depreciation of tangible assets 32 19
Amortisation of intangible assets 319 307
Research and development 138 89
Operating lease rentals 211 206
Foreign exchange losses 24 2
Increase in provision for receivables 6 —
Increase in provision for inventories 18 —
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 auditors is as follows:
2013
£'000
2012
£'000
Fees payable to the Company’s auditors for the audit of the Company's annual accounts 13 25
Fees payable to the Company’s auditors for other services to the Group 3
The audit of the Company’s subsidiaries pursuant to legislation 17 28
Total audit fees 30 56
Tax services 11 26
Other services 3 4
Total non-audit fees 14 30
Total auditors’ remuneration 44 86
31
Animalcare Group plc Annual Report 2013
Our Performance Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Financials Our Business
Animalcare Annual Report 2013.indd   31 08/10/2013   16:26:59 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Notes to the Accounts continued
7. Directors’ Remuneration and Interests
Emoluments
The various elements of remuneration received by each Director were as follows:
Year ended 30
th
 June 2013
Salary
£'000
Bonus
£'000
Company 
pension
contributions
£'000
Benefits
£'000
Compensation 
for
loss of office
£'000
Total
£'000
J S Lambert* 33 — — — — 33
Lord Downshire* 22 — — 2 — 24
R B Harding* 22 — — — — 22
S M Wildridge 128 — — — — 128
Dr I D Menneer 100 — 12 6 — 118
C J Brewster 92 8 11 1 — 112
Total 397 8 23 9 — 437
Year ended 30
th 
June 2012
J S Lambert* 31 — — — — 31
Lord Downshire* 21 — — 2 — 23
R B Harding* 
(appointed 11
th 
November 2011) 13 — — — — 13
S M Wildridge 151 34 11 — — 196
P O R Warner
(resigned 11
th 
November 2011) 29 5 4 — 66 104
Dr I D Menneer 
(appointed 1
st
 July 2011) 71 8 9 6 — 94
C J Brewster 
(appointed 21
st
 June 2012) 8 — — — — 8
Total 324 47 24 8 66 469
* Indicates Non-Executive Directors.
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 will be settled by 28
th 
November 2013. The compensation for loss 
of office in relation to P Warner was paid in cash during 2012.
Share options
The Directors had the following beneficial options:
S M Wildridge
Scheme Unapproved EMI Unapproved EMI Total
Exercise Price £0.975 £1.675 £1.675 £1.30
Date of Grant
9
th 
July 
2009
14
th 
October 
2011
14
th 
October 
2011
2
nd
 August 
2012
Outstanding at 30
th 
June 2012 100,000 71,600 28,400 — 200,000
Granted during the year — — — 100,000 100,000
Outstanding at 30
th 
June 2013 100,000 71,600 28,400 100,000 300,000
32
Animalcare Annual Report 2013.indd   32 08/10/2013   16:26:59 22779.04    Proof 3    08-10-13
7. Directors’ Remuneration and Interests continued
I D Menneer
Scheme EMI SAYE EMI EMI EMI Unapproved SAYE Unapproved Total
Exercise 
Price £0.975 £1.34 £1.675 £1.30 £1.325 £1.40 £1.03 £1.415
Date of Grant
9th
July
2009
4th
 October
2011
14th
 October
 2011
2nd
 August 
2012
20th
 November 
2012
21st
 February 
2013
22nd
 May
2013
20th
 June 
2013
Outstanding 
at 30
th 
June 
2012 5,000 3,358 60,000 — — — — — 68,358
Granted 
during the 
year — — — 60,000 50,000 90,000 4,377 90,000 294,377
Outstanding 
at 30
th 
June 
2013 5,000 3,358 60,000 60,000 50,000 90,000 4,377 90,000 362,735
C J Brewster
Scheme EMI EMI SAYE EMI Total
Exercise Price £1.30 £1.30 £1.03 £1.415
Date of Grant 22
nd
 June 2012 2
nd
 August 2012 22
nd
 May 2013 20
th 
June 2013
Outstanding at 30
th 
June 2012 30,000 — — — 30,000
Granted during the year — 30,000 8,754 40,000 78,754
Outstanding at 30th June 2013 30,000 30,000 8,754 40,000 108,754
The Directors’ interests in the shares of the Company as at 30
th 
June are set out below:
2013 2012
Ordinary shares 
of 20p
Ordinary shares 
of 20p
J S Lambert 1,413,691 1,363,691
Lord Downshire 1,109,583 1,109,583
S M Wildridge 177,068 200,068
I D Menneer 9,381 9,381
C J Brewster 4,079 —
In addition to the above, Lord Downshire had a non-beneficial interest in 310,446 shares.
33
Animalcare Group plc Annual Report 2013
Our Performance Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Financials Our Business
Animalcare Annual Report 2013.indd   33 08/10/2013   16:27:00 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Notes to the Accounts continued
8. Staff Costs
2013 2012
Number of employees
The average monthly number of employees (including Directors) during the year was:
Production and distribution 4 4
Selling and administration 53 54
57 58
2013
£'000
2012
£'000
Related costs
Wages and salaries 1,810 1,511
Social security costs 191 176
Other pension costs 78 71
2,079 1,758
9. Finance Income
2013
£'000
2012
£'000
Other net finance income:
Fair value gains on financial instruments* 11 —
Interest income on bank deposits 27 2
Finance income 38 2
*  Finance gains 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 are included within “other items” on the face of the statement of comprehensive income.
34
Animalcare Annual Report 2013.indd   34 08/10/2013   16:27:00 22779.04    Proof 3    08-10-13
10. Income Tax Expense
Note
2013
£'000
2012
£'000
The income tax expense comprises:
Current tax expense 632 470
Adjustment in the current year in relation to prior years (175) (199)
457 271
The deferred tax (credit)/expense comprises:
Origination and reversal of temporary differences 22 (18) 81
Adjustment in the current year in relation to prior years 22 6 25
(12) 106
Total tax expense for the year 445 377
The total tax charge can be reconciled to the accounting profit as follows:
Total comprehensive income for the year 1,885 1,729
Total tax expense 445 377
Profit before tax 2,330 2,106
Income tax calculated at 23.75% (2012 — 25.5%) 553 537
Effect of expenses not deductible 48 3
Effect of share-based deductions 20 28
Change in UK tax rate (7) (13)
Effect of write-back of deferred tax liabilities — (4)
Effect of adjustments in respect of prior years (169) (174)
445 377
The tax credit of £90,000 (2012 — £18,000) shown within “exceptional and other items” on the face of the statement of comprehensive 
income, which forms part of the overall tax charge of £445,000 (2012 — £377,000) relates to the items analysed in note 4.
Reductions in the UK corporation tax rate from 26% to 24% (effective from 1
st
 April 2012) and to 23% (effective 1
st
 April 2013) were 
substantively enacted on 26
th 
March 2012 and 3
rd
 July 2012 respectively. Further reductions to 21% (effective from 1
st
 April 2014) and 20% 
(effective from 1
st
 April 2015) were substantively enacted on 2
nd
 July 2013. Deferred tax balances have been calculated at an effective rate 
of 23%, being the substantively enacted rate at 30
th 
June 2013.
11. Dividends
2013
£'000
2012
£'000
Ordinary final dividend paid in respect of prior year 621 615
Ordinary interim dividend paid 311 311
932 926
The final dividend paid during the year ended 30
th 
June 2013 was 3.0 pence per share (2012 — 3.0 pence per share). The interim dividend 
paid during the year ended 30
th 
June 2013 was 1.5 pence per share (2012 — 1.5 pence per share).
The proposed final dividend was approved by the Board of Directors on 24
th 
September 2013 and is subject to approval of shareholders at 
the Annual General Meeting. The proposed dividend has not been included as a liability as at 30
th 
June 2013, in accordance with IAS 10 
“Events After the Balance Sheet Date”.
35
Animalcare Group plc Annual Report 2013
Our Performance Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Financials Our Business
Animalcare Annual Report 2013.indd   35 08/10/2013   16:27:00 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Notes to the Accounts continued
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
2013
£'000
Underlying
earnings before
exceptional and
other items
2012
£'000
Total
earnings
2013
£'000
Total
earnings
2012
£'000
Total comprehensive income attributable to equity holders  
of the Company 2,176 1,901 1,885 1,729
2013
No.
2012
No.
2013
No.
2012
No.
Basic weighted average number of shares 20,732,636 20,546,961 20,732,636 20,546,961
Dilutive potential ordinary shares 124,519 58,085 124,519 58,085
20,857,155 20,605,046 20,857,155 20,605,046
Earnings per share:
Basic 10.5p 9.3p 9.1p 8.4p
Fully diluted 10.4p 9.2p 9.0p 8.4p
13. Goodwill
Group
£'000
Cost
At 1
st
 July 2011, 1
st
 July 2012 and 30
th 
June 2013 12,711
Accumulated impairment losses
At 1
st
 July 2011, 1
st
 July 2012 and 30
th 
June 2013 —
Net book value
At 30
th 
June 2013 and 30
th 
June 2012 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 1.3% (2012 — 1.9%).
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 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 11.9% 
(2012 — 11.4%).
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.
36
Animalcare Annual Report 2013.indd   36 08/10/2013   16:27:00 22779.04    Proof 3    08-10-13
14. Other Intangible Assets
Group
Acquired
brands and
customer
relationships
£'000
New product
development
costs
£'000
Capitalised
software
£'000
Total
£'000
Cost
At 1
st
 July 2011 1,361 1,228 41 2,630
Additions — 161 54 215
At 30
th 
June 2012 1,361 1,389 95 2,845
Additions — 102 27 129
At 30
th
 June 2013 1,361 1,491 122 2,974
Amortisation
At 1
st
 July 2011 415 393 2 810
Charge for the year 119 169 19 307
At 30
th 
June 2012 534 562 21 1,117
Charge for the year 119 175 25 319
At 30
th 
June 2013 653 737 46 1,436
Carrying value
At 30th June 2013 708 754 76 1,538
At 30
th 
June 2012 827 827 74 1,728
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 relating to the bespoke online 
ordering system is four years.
37
Animalcare Group plc Annual Report 2013
Our Performance Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Financials Our Business
Animalcare Annual Report 2013.indd   37 08/10/2013   16:27:00 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Notes to the Accounts continued
15. Property, Plant And Equipment
Group
Leasehold
improvements
£'000
Plant and
equipment
£'000
Office
furniture and
equipment
£'000
Motor
vehicles
£'000
Total
£'000
Cost
At 1
st
 July 2011 — 63 78 23 164
Additions — — 55 — 55
Disposals — — — (13) (13)
At 1
st
 July 2012 63 133 10 206
Additions 187 44 131 17 379
Disposals (1) (27) (28)
At 30
th
 June 2013 187 107 263 557
Depreciation
At 1
st
 July 2011 — 30 65 22 117
Charge for the year — 10 8 1 19
Disposals — — — (13) (13)
At 1
st
 July 2012 — 40 73 10 123
Charge for the year 3 2 27 — 32
Disposals — — — (10) (10)
At 30
th
 June 2013 3 42 100 145
Net book value
At 30
th 
June 2013 184 65 163 — 412
At 30
th 
June 2012 — 23 60 — 83
16. Investments in Subsidiaries
Subsidiary undertakings
     Company
2013
£'000
2012
£'000
Cost and net book value
At 1
st
 July 2011, 2012 and 30
th 
June 14,361 14,361
The principal subsidiary undertakings of the Company are summarised below. The companies listed include all those which principally 
affected the earnings and assets of the Group.
Country of
registration or
incorporation Class
Shares held
%
Animalcare Ltd England Ordinary 100
Naychem Limited England Ordinary 100
The principal activity of these undertakings for the last financial year was as follows:
Principal activity
Animalcare Ltd Sale of companion animal products and services
Naychem Limited Non-trading
38
Animalcare Annual Report 2013.indd   38 08/10/2013   16:27:00 22779.04    Proof 3    08-10-13
17. Inventories
     Group
2013
£'000
2012
£'000
Finished goods and goods for resale 1,418 1,420
In the Directors’ opinion, the replacement cost of inventories is not materially different from their balance sheet value.
18. Other Financial Assets
Trade and other receivables
     Group     Company
2013
£'000
2012
£'000
2013
£'000
2012
£'000
Trade receivables 1,386 1,134 — —
Amounts receivable from subsidiaries — — — 423
Corporation tax – Group relief — — 556 431
Other receivables 8 66 7 4
Derivative financial instruments (see note 20) 11 — — —
Prepayments and accrued income 257 97 15 8
1,662 1,297 578 866
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
2013
£'000
2012
£'000
2013
£'000
2012
£'000
Balance at 1
st
 July — 5 — —
Impairment losses recognised 6 (5) — —
Balance at 30 June 6 — — —
Ageing of past due but not impaired receivables
     Group
2013
£'000
2012
£'000
1–30 days past due — 31
31–90 days past due 4 —
91 days and more 2 —
6 31
39
Animalcare Group plc Annual Report 2013
Our Performance Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Financials Our Business
Animalcare Annual Report 2013.indd   39 08/10/2013   16:27:00 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Notes to the Accounts continued
18. Other Financial Assets continued
Cash and cash equivalents
     Group     Company
2013
£'000
2012
£'000
2013
£'000
2012
£'000
Cash and cash equivalents 3,745 2,305 1,791 1,738
Cash and cash equivalents comprise cash and short-term bank deposits with an original maturity of three months or less.
The carrying amount of these assets approximates of their fair value.
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 32 days (2012 — 31 days). No interest has been charged on overdue receivables.
19. Other Financial Liabilities
     Group     Company
2013
£'000
2012
£'000
2013
£'000
2012
£'000
Trade payables 983 702 62 70
Amounts payable to subsidiaries — — 3,757 2,821
Other taxes and social security costs 369 338 39 40
Other creditors 288 227 18 27
Accruals 342 49 146 9
1,982 1,316 4,022 2,967
The Directors consider that the carrying amount of trade and other payables approximates to their fair value.
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
2013
Trade and other payables 1,982 — — — 1,982
2012
Trade and other payables 1,316 — — — 1,316
40
Animalcare Annual Report 2013.indd   40 08/10/2013   16:27:01 22779.04    Proof 3    08-10-13
20. Financial Instruments continued
Categories and Fair Value of Financial Instruments
Carrying value
2013
£'000
2012
£'000
Financial assets
Trade and other receivables (including cash and cash equivalents) 5,139 3,505
Financial liabilities
Trade and other payables (1,982) (1,316)
The fair values of the Group’s financial assets and liabilities are not materially different from their carrying values.
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 exchange contracts. The carrying value of the Group’s foreign currency assets and liabilities at the reporting 
date was:
     Assets     Liabilities
2013
£'000
2012
£'000
2013
£'000
2012
£'000
Euro 233 54 33 9
US Dollar 142 — 21 53
Foreign Currency Sensitivity Analysis
At 30
th 
June 2013 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 2013. A positive number indicates that an increase in profit would arise from a 10% strengthening of Sterling against 
these currencies, a negative number indicates that a decrease would arise.
Strengthening
£'000
Weakening
£'000
Euro (18) 22
US Dollar (11) 14
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 nine (2012 — none) open foreign exchange contracts at 30
th 
June 2013. The values are shown below:
2013
£'000
2012
£'000
Principal value 285 —
Fair value 11 —
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.
41
Animalcare Group plc Annual Report 2013
Our Performance Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Financials Our Business
Animalcare Annual Report 2013.indd   41 08/10/2013   16:27:01 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Notes to the Accounts continued
21. Deferred Income
Deferred income arises from certain services sold by the Group’s subsidiary Animalcare Ltd. In return for a single upfront 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:
2013
£'000
2012
£'000
Balance at the beginning of the period 1,051 1,044
Income deferred to future periods 177 189
Release of income deferred from previous periods (207) (182)
1,021 1,051
The deferred income liabilities fall due as follows:
2013
£'000
2012
£'000
Within one year 231 207
After one year 790 844
1,021 1,051
Income recognised during the year is set out below:
2013
£'000
2012
£'000
Income received 190 203
Income deferred to future periods (177) (189)
Release of income deferred from previous periods 207 182
Income recognised in the year 220 196
22. Deferred Tax Liabilities
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 2011 (59) (122) — 246 65
Charge/(credit) to income 45 111 (2) (48) 106
Balance at 30
th 
June 2012 (14) (11) (2) 198 171
Charge/(credit) to income 41 (13) (5) (35) (12)
Balance at 30
th 
June 2013 27 (24) (7) 163 159
As set out in note 10 the rate of corporation tax will be reducing to 21% (effective from 1
st
 April 2014) and 20% (effective from 1
st
 April 2015). 
A reduction of 2% would reduce deferred tax liabilities, if applied at 30
th 
June 2013, by £14,000 to £145,000.
42
Animalcare Annual Report 2013.indd   42 08/10/2013   16:27:01 22779.04    Proof 3    08-10-13
22. Deferred Tax Liabilities continued
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 2011 (56) (100) — (156)
Charge/(credit) to income 35 92 (2) 125
At 30
th 
June 2012 (21) (8) (2) (31)
Charge/(credit) to income 4 (5) — (1)
At 30
th 
June 2013 (17) (13) (2) (32)
As set out in note 10 the rate of corporation tax will be reducing to 21% (effective from 1
st
 April 2014) and 20% (effective from 1
st
 April 2015). 
A reduction of 2% would reduce deferred tax assets, if applied at 30
th 
June 2013, by £3,000 to £29,000.
23. Share Capital
2013
No.
2012
No.
Allotted, called up and fully paid ordinary shares of 20p each 20,745,204 20,720,204
2013
£'000
2012
£'000
Allotted, called up and fully paid ordinary shares of 20p each 4,149 4,144
During the year £5,000 (2012 — £69,000) of ordinary shares were issued for proceeds of £24,375 (2012 — £197,000) resulting in a share 
premium of £19,375 (2012 — £128,000).
24. Operating Lease Arrangements
The Group as lessee
2013
£'000
2012
£'000
Lease payments under operating leases recognised as an expense in the year 211 206
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:
2013
£'000
2012
£'000
Within one year 165 120
In the second to fifth years inclusive 334 69
After five years 143 —
642 189
Operating lease payments principally represent rentals payable by the Group for its office and warehouse properties and motor vehicles.
43
Animalcare Group plc Annual Report 2013
Our Performance Our Governance
www.animalcaregroup.co.uk Stock Code: ANCR
Our Financials Our Business
Animalcare Annual Report 2013.indd   43 08/10/2013   16:27:01 22779.04    Proof 3    08-10-13
Animalcare Group plc Annual Report 2013
www.animalcaregroup.co.uk Stock Code: ANCR
Notes to the Accounts continued
25. Share-based Payments
Details of the movement in share options during the year are as follows:
    EMI    Unapproved    Unapproved
Options
Price
£ Options
Price
£ Options
Price
£
Outstanding at beginning of year 286,600 1.455 72,114 1.34 128,400 1.130
Granted during the year 445,000 1.334 114,140 1.028 180,000 1.408
Lapsed during the year (30,000) 1.42 (47,409) 1.34 — —
Exercised during the year (25,000) 0.975 — — — —
Open at 30
th 
June 2013 676,600 1.392 138,845 1.084 308,400 1.292
Exercisable at the end of the year 20,000 0.975 — — 100,000 0.975
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 133p 144p 121p
Weighted average exercise price 135p 115p 125p
Expected volatility 50% 55% 47%
Expected life 3.1 years 3.1 years 3.1 years
Risk-free rate 0.6% 0.5% 0.7%
Expected volatility was determined by calculating the historical volatility of the Group’s share price over the previous two 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 (2012 — £nil).
The Group recognised total expenses of £149,000 (2012 — £48,000), £110,000 (2012 — £48,000) within administrative expenses and 
£39,000 (2012 — £nil) within exceptional and other items as disclosed in note 4.
26. Related Party Transactions
Trading transactions
During the year ended 30
th 
June, the following trading transactions took place between the Company and its subsidiaries listed in note 16:
2013
Animalcare Ltd
£'000
Total
£'000
Management Charges levied 240 240
2012
Animalcare Ltd
£'000
Total
£'000
Management Charges levied 192 192
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.
44
Animalcare Annual Report 2013.indd   44 08/10/2013   16:27:01 22779.04    Proof 3    08-10-13
Directors J S Lambert
S M Wildridge
Lord Downshire
I D Menneer
C J Brewster
R B Harding
Secretary C J Brewster
Company Number 1058015
Registered Office Unit 7, 10 Great North Way
York Business park
Nether Poppleton
York, YO26 6RB
Auditors KPMG Audit Plc
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
Registrars Capita Asset Services
34 Beckenham Road
Beckenham
Kent
BR3 4TU
Animalcare Group plc Annual Report 2013
45
Animalcare Annual Report 2013.indd   4 08/10/2013   16:27:02 22779.04    Proof 3    08-10-13
Address
10 Great North Way
York Business Park, York
YO26 6RB
Contact
T: +44 (0) 1904 487687
F: +44 (0) 1904 487611
E: orders@animalcare.co.uk
W: www.aniamalcare.co.uk
Animalcare Annual Report 2013.indd   1 08/10/2013   16:27:02