Annual Report
for the year ended 30
th 
June 2014
www.animalcaregroup.co.uk
Stock Code: ANCR
Supplying & Supporting
veterinary professionals throughout the UK
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  See further content for the Annual Report and Accounts 2014 
online at : animalcare.annualreport2014.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 through UK 
wholesalers and 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.
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Highlights
Contents
Strategic Report
Our Business
Highlights 1
Group at a Glance 2
Business Model 3
Investment Case & Strategy 4
Chairman’s Statement 8
Chief Executive’s Review 9
Financial Review 14
Our Governance
Board of Directors 16
Directors’ Report 18
Statement of Directors’ 
Responsibilities 
23
Our Financials
Independent Auditor’s Report 24
Consolidated Statement of 
Comprehensive Income
25
Statements of Changes in 
Shareholders’ Equity
26
Balance Sheets 27
Cash Flow Statements 28
Notes to the Accounts 29
Five Year Summary 54
Advisers 55
Shareholder Notes 56
Financial Highlights
Revenue
£m 
+6.3% at £12.9m
10.9
2012
12.1
2013
12.9
2014
Underlying* basic EPS
Pence 
+2.9% at £10.8p
9.3
2012
10.5
2013
10.8
2014
Underlying* operating profit
£m 
+4.4% at £2.8m
2.3
2012
2.7
2013
2.8
2014
*  Underlying measures are before the effect of 
exceptional costs and other items. These are 
analysed in note 4.
  Read more about our Financial Review on 
pages 14 and 15
   View our Financial Highlights online at 
animalcare.annualreport2014.com
Operational Highlights
• Strong revenue growth from our Licensed Veterinary Medicines 
group, up 9.5% to £7.9m (2013: £7.2m)
• Companion Animal Identification group sales and marketing strategy 
started to deliver with revenue growth of 7.8% to £2.4m (2013: 
£2.2m)
• Animal welfare products has seen top line decline, with margin 
improvement in line with management intention to streamline lower 
value products
• Three new products launched this year
• Investment in infrastructure and senior management team to drive 
future growth
• IT investment creating a more robust infrastructure to business and 
Identichip database
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Our Performance Our Financials Our Governance Our Business
Our Business / Highlights
Stock Code: ANCR
Animalcare Annual Report 2014 - Proof 3.indd   1 10/27/2014   12:11:01 PM Group at a Glance
Our Distribution Points
Animalcare has a strong network
of distribution and development 
partners across Western Europe.
Our Main Location
Our new head office and 
increased warehousing operation
are both located in York, UK. 
Animal Welfare Products Companion Animal Identification Licensed Veterinary Medicines
£2.6m, 20% 
20% (2013)
24% (2012)
£2.4m, 19% 
19% (2013)
22% (2012)
£7.9m, 61%
59% (2013)
55% (2012)
Animalcare Group plc Annual Report 2014
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www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   2 10/27/2014   12:11:01 PM “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 90% revenue in the UK; 10% in EU with expansion plans further into EU.
Our marketing team provides promotional literature 
for our sales team and support materials to help 
veterinary professionals explain medical conditions 
and therapies to their pet owning clients.
Our highly trained sales team call on veterinary 
practices across the UK to promote our products 
and services, thereby pulling demand through the 
veterinary wholesalers.
The regular visits from our sales representatives 
mean we have first hand experience of what our 
customers need, and can channel their feedback 
back to our development team.
Distribution
Animalcare sells its products to veterinary 
wholesalers in bulk. These products are then 
sold by the wholesalers to their veterinary 
practice customers.
 
Similarly, some pharmaceutical products are sold 
to our European partners to distribute in their 
home territories. 
Development Team
Our in-house and partner developers identify 
pharmaceutical products to develop undifferentiated, 
differentiated and enhanced generics.
 
Each project is assessed against technical and 
commercial criteria to determine its suitability to 
become a full development project.
Our development pipeline has generated in excess 
of £25m revenue since 2006.
UK 
Wholesalers
Contact 
Manufacture
Sales and Marketing Team
Strength through 
Our People
Company
Culture
Distribution
Suppliers
NPD / EPD
Products
Pet
Owners
Staff
Development
Knowledge &
Experience
Strong
External
Relationships
EU
Distribution
Veterinary
Practices
Pet Microchip Database
Our database staff receives over 100,000 calls a 
year from owners updating their contact details and 
animal welfare professionals wanting to reunite lost pets.
• 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
Business Model
3
Stock Code: ANCR
Our Performance Our Financials Our Governance Our Business
Our Business / Group at a Glance / Business Model
Animalcare Annual Report 2014 - Proof 3.indd   3 10/27/2014   12:11:01 PM Investment Case & Strategy
Investment Case
Animalcare is a sustainable growing business in 
a growing market. In the year ended 30
th
 June 2014 
Animalcare recorded revenue and gross profit growth of 
6.3% and 5.2% respectively; continuing its track record of 
top line growth.
Animalcare is cash generative and debt free, hence in a 
strong financial position to invest in future growth.
Animalcare is dividend paying and given its strong 
balance sheet expects to maintain its current dividend policy 
during the investment phase.
Animalcare has a clear strategy for growth by 
investing in development of enhanced veterinary generic 
pharmaceuticals to accelerate its progress over the next 
three to five years. 
Strategy
In recent years UK veterinary practices have consolidated; 
be it by corporate acquisition or joint-venture partnership, 
joining buying groups and growth of the charitable sector.
The veterinary pharmaceutical sector has seen increased 
competition through numbers of suppliers and generic 
products.
Conversely, in part through M & A activity, there are now 
fewer high quality routes to market for those pharmaceutical 
licence holders without domestic sales channels.
We have developed our internal capability, expertise and 
cash position to take advantage of these market conditions 
and opportunities to focus our strategy in the following areas.
Our strategy for 2015 to 2018 is to:
1. Continue development of differentiated generic medicines
2. Advance enhanced generic medicines (Project Sustain) 
into product development pipeline
3. Identify new candidates to maintain flow into the 
development pipeline
4. Increase the sales of our current products outside the UK
i. through existing distribution in current markets
ii. by adding geographic cover with new distribution in new 
markets
iii. building on the progress of the Companion Animal 
Identification range and explore opportunities to innovate 
and strengthen the range of products and services
iv. strengthening value creating products in the Animal 
Welfare Products range and further rationalise less profitable 
lines at appropriate opportunities
Animalcare Group plc Annual Report 2014
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www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   4 10/27/2014   12:11:02 PM New Product Development (NPD) Process
The varied nature of product development dictates that the 
exact process can be different for each project; however 
the diagram below explains some of the key steps in the 
Animalcare process.
Value Value
Shortlist of 
Development 
and Manufacturing 
CMO; API Source; 
and Technology 
in the Case of 
Project Sustain
Early Stage 
Feasibility Study
and Detailed
Commercial
Viability Assessed
Feasibility
Development 
Stage 1
(Analytical 
Methods 
Validation and 
Engineering 
Batches)
Development
Development 
Stage 2
(Pilot Batches 
for Stability and 
Clincial Studies)
Commerical/
Launch
Batches 
Manufactured
Marketing
Authorisation
Received
Regulatory
Commercial
Dossier
Prepared
and 
Submitted
New
Product
Launched
Project 
Proposal
Submitted to 
ACG Board
Candidate 
Identification
Candidate 
Selection
Criteria
Determine 
Regulatory 
Strategy 
Identification
NPD Pipeline Monitoring
Regular project meetings are held with in-house teams 
and external partners, with progress monitored against 
the project timeline and budget using project management 
software. The development pipeline is reviewed by the 
Board at all Board meetings.
Identification
Animalcare draws on many areas to identify product 
development candidates to be considered for the pipeline.
We have experienced professionals across the business 
in sales, marketing, technical, regulatory and business 
development functions; their market and practical knowledge 
is a great source of ideas and innovation. Their combined 
time in the veterinary and healthcare industry is considerable 
and inevitably extensive personal networks have been built, 
offering further opportunities to generate and grow ideas. 
One such network is our group of partner companies in the 
major northern European markets.
The team also has access to market sales data and sector 
online resources and news feeds. Market research is carried 
out with trusted veterinary customers and more formally with 
agencies.
Each project is assessed against many criteria to determine 
its suitability to be taken into the next stage of the 
development process. The main criteria include:
• size of market
• technical and regulatory feasibility
• number of competitors
• competitor profile
• fit to existing and future range
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Stock Code: ANCR
Our Performance Our Financials Our Governance Our Business
Our Business / Investment Case & Strategy 
Animalcare Annual Report 2014 - Proof 3.indd   5 10/27/2014   12:11:02 PM Feasibility
If an opportunity satisfies a mix of these criteria the team 
will start to put together a project file that will include the 
regulatory requirements and strategy, and a shortlist of 
facilities able to develop and manufacture the product. 
Where appropriate, early stage feasibility work is 
undertaken.
An investment proposal is prepared and submitted to the 
Board to gain approval for each development project. All 
necessary sections are covered to allow the Board to assess 
the investment case for the project including a detailed risk 
assessment and forecast financial return.
Buprecare
Development
In most cases the product will be developed at the Contract 
Manufacturing Organisation (CMO) which will ultimately 
manufacture the product. Work will start immediately to 
source the Active Pharmaceutical Ingredient (API) and 
develop analytical methods. Small scale development 
batches will be manufactured for setting aside on stability 
under set temperatures and humidity levels and for use in 
any clinical studies required.
Regulatory
Once all necessary data has been compiled and meets 
the required regulations the dossier is assembled by the 
regulatory team and external consultants. The completed 
dossier is submitted to the regulatory authorities and is 
monitored through the process by the Animalcare team. 
The regulatory assessment process is controlled by a 
strict timetable; for most of our projects this is 210 days, 
typically with 30 to 60 days to respond to questions from the 
authority. Therefore in our experience it takes 12 months 
from submitting the dossier to launching the product on 
the UK market, be it for a new application for either an 
undifferentiated or enhanced generic.
Launch
Once the marketing authorisation is received, and packaging 
layouts have been approved by the authorities, launch 
batches can be manufactured and packed ready for 
commercial launch.
In all, the process outlined above may take between three 
and five years depending on the project’s complexity and the 
development and clinical trials required.
Animalcare Group plc Annual Report 2014
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www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   6 10/27/2014   12:11:03 PM Projects currently in our development pipeline are listed in the table below.
Identification Feasibility Development Regulatory Commercial
2-3 years 
to maturity
Continuing process 
of identification
Main Criteria:
4 candidates undergoing
feasibility studies
7 candidates in development
Target species ranging from 
dogs,cats, equine, small 
mammals and exotics
All products addressing 
EU markets
2 candidates; dossiers being
prepared for submission
First products to launch 
from 2016 onwards
Size of market
Technical / regulatory feasibility
No. of competitors
Competitor profile
Fit to existing and future range
Existing Product Development
Whilst the model and stages outlined above are followed for new product development, from time to time we identify an 
opportunity to modify an existing pharmaceutical product in our range, which would provide additional features to increase 
sales or prolong the product life cycle.
These types of projects are termed Existing Product Development (EPD) and necessitate trials, studies and regulatory fees, 
therefore an investment proposal would still be considered by the Board as with the NPD process.
New Product Distribution
Animalcare continues to attract novel opportunities across the three product groups.
Animalcare stands out in its market with a sales team of 16 field-based staff with an emphasis on technical and sales 
training. Furthermore, we strive to enhance our relationship with our veterinary customers through continuing professional 
development (CPD) provision and product support for practices and veterinary professionals, often with support materials for 
them to use with their pet-owning clients, making the veterinary practice and client bond stronger and helping to make the 
veterinary professionals life easier.
Dog Health Check
7
Stock Code: ANCR
Our Performance Our Financials Our Governance Our Business
Our Business / Investment Case & Strategy 
Animalcare Annual Report 2014 - Proof 3.indd   7 10/27/2014   12:11:04 PM Chairman’s Statement
James Lambert Chairman
Introduction
Animalcare is made up of three product groups: Licensed 
Veterinary Medicines, Companion Animal Identification 
and Animal Welfare products that are sold mainly through 
veterinary practices. I am pleased to announce that all three 
product areas have continued to show solid performance 
during the 2014 financial year. The Licensed Veterinary 
Medicines group, which is the main focus of our investment, 
has grown strongly in the current year by 9.5%.
Financial Trading
Group revenues increased by 6.3% from £12.1m to a 
record £12.9m, driven by increasing our market share in the 
Licensed Veterinary Medicines market and continuing to 
grow in the animal identification market. This performance 
has resulted in pre tax profits increasing by 14.7% from 
£2.3m to £2.7m and basic earnings per share increased 
from 9.1 pence per share to 10.3 pence per share, or 
13.2%. Year end cash increased by £0.1m to £3.8m, with 
the decision taken during the year to increase stock levels of 
certain licensed veterinary medicines with long lead times.
“I am pleased to announce that all three 
product areas have continued to show 
solid performance during the 2014 
financial year.”
People
Under Chief Executive Iain Menneer’s leadership, we 
invested in increasing the quality and strength of the 
senior management team to position your Company for 
much increased product development in future years. 
I am therefore delighted that we have a new Head of 
Sales, Director of Business Development and several new 
colleagues across the business to support their work. This 
as we announced with our interim results will allow a step 
change in our ability to bring an increased number of new 
and important generic veterinary medicines to market from 
2016-2017 onwards. This should make a real difference to 
Animalcare’s future prospects.
Dividend
Your Board proposes, subject to shareholder approval, an 
increased final dividend of 4.0 pence per share (2013: 3.8 
pence). With 1.5 pence per share being paid as the interim 
dividend, this brings the total dividend for 2014 to 5.5 pence 
per share, representing growth over the prior year of 4%, in 
line with our underlying earnings.
Prospects
Your Board, I believe, has totally repositioned Animalcare 
over the past year or so to allow the use of the Company’s 
cash to rapidly grow the business organically from 2016 
onwards. We are working to develop a high quality, 
experienced senior management team to deliver this growth 
plan. With the new share incentive scheme that has been 
introduced during the year for both executive directors, 
the interests of shareholders and colleagues are aligned 
to deliver an exciting and profitable growth phase for your 
business.
James Lambert 
Chairman
Animalcare Group plc Annual Report 2014
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www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   8 10/27/2014   12:11:04 PM Chief Executive’s Review
Iain Menneer Chief Executive Officer
Introduction
Animalcare has again delivered record sales, up 6.3% to 
£12.9m, continuing its track record of top line growth.
This result has been achieved against a backdrop of a 
veterinary market that is very slowly responding to the 
strengthening economy.
Activities in the period can be split into the following three 
main areas: revenue delivery, product development pipeline 
and business infrastructure. I am very pleased with the 
progress we have made in all these areas.
Animalcare has changed significantly in the last decade 
and achieved much; as we move into the next stage of the 
journey the business must change further for it to achieve 
even more.
The veterinary market is evolving and consolidating; it 
is imperative therefore that Animalcare develops a new 
approach too, whilst not losing sight of its core strengths that 
set it apart from its competitors.
Our objective is to deliver further growth from the current 
core business and to accelerate that growth with the 
introduction of enhanced generic veterinary medicines. In 
response to the number of opportunities available, we have 
developed a more structured approach for managing and 
monitoring progress in our development pipeline.
Market Review
Whilst surveys have shown consumers are generally feeling 
better off now than a year ago, this nascent confidence has 
been slow to flow through to veterinary practices. Results 
from a survey carried out annually show that 37% of UK 
veterinary practices believe that “things are still the same”, 
with 35% saying things had improved and 29% that they had 
got worse. (CM Research July 2014)
In contrast, according to the latest available data, the pet 
medicines market reportedly grew by 10.7% for the year 
ending December 2013 (National Office of Animal Health 
www.noah.co.uk).
The veterinary industry has seen further consolidation during 
the period under review on two fronts: veterinary practices 
and pharmaceutical manufacturers and suppliers.
Listed and private equity backed consolidators have 
continued to swell their estates with double digit percentage 
acquisition growth. These key accounts offer an opportunity 
for Animalcare to negotiate significant revenues and 
buy-in from the centre; though of course this comes at a 
cost. Buying groups have also grown during the period, 
however as this model matures this growth has been 
mainly in member numbers and inter-group switching rather 
than number of buying groups. The crowded space has 
prompted an increasing number of buying groups to seek to 
differentiate themselves through premium service offerings 
which gives Animalcare an opportunity to engage more.
There has been a 9% growth in the number of independent 
small animal practices in the UK over the last three years, 
with a 25% increase in the number of corporate and charity 
practices. The number of practices joining a buying group 
has grown by 74% over the same period (Veterinary Record, 
January 2014).
The European animal health (AH) sector has experienced 
unprecedented merger and acquisition activity during the 
past 12 months, most notably with the sale of Novartis AH to 
Elanco (Ely Lilly) for $5.4bn. Within the UK, one competitor, 
Alstoe AH, was purchased by the French company 
Sogeval, only for the latter to be purchased itself by Ceva 
Santé Animale (Fr). There are unlikely to be many product 
acquisition possibilities from this activity but the industry 
consolidation and distraction does give Animalcare other 
opportunities in the marketplace as a result.
9
Stock Code: ANCR
Our Financials Our Governance Our Performance Our Business
Our Performance / Chairman’s Statement / Chief Executive’s Review
Animalcare Annual Report 2014 - Proof 3.indd   9 10/27/2014   12:11:04 PM Business Review
Licensed Veterinary Medicines
Our Licensed Veterinary Medicines product group grew 
by 9.5% to £7.9m and gross profit by 6.2% to £4.4m 
representing a strong result against the prior period and in 
line with the companion animal pharmaceutical market.
The proportion of total Group revenue from veterinary 
pharmaceuticals has grown again in the year, up almost 2%, 
to 61.2%. Sales of products from our development pipeline 
grew in the period and importantly the group of older, lower 
margin legacy medicines has experienced strong growth too.
The change in sales mix as a result of the strength of our 
lower gross margin older products has had a modest effect 
on the gross profit of the product group compared to the 
prior period. The consolidation in our customer base has 
also meant that margins are under some pressure from the 
increased buying power.
Our strategy of progress through new products has 
continued with three launches in the period.
The first, early in the period, was an extension to the range 
of Phenoleptil tablets, the epileptic treatment for dogs. The 
addition of 25mg and 100mg tablet strengths to the existing 
range launched previously and gives veterinary surgeons 
a range of options to fine tune the dosing of patients. As 
expected, Phenoleptil sales have been increasing slowly 
as patients must be transferred very carefully from other 
therapies.
“In response to the number of opportunities 
available, we have developed a more 
structured approach for managing and 
monitoring progress in our development 
pipeline.”
In January, Animalcare launched Thiafeline, a treatment 
for hyperthyroidism in cats, a chronic disease affecting 
an estimated 12% of the UK cat population. Thiafeline is 
the first generic to be launched in this therapy area in the 
UK. Sales are growing steadily and we believe there is 
good potential for the product as hyperthyroidism is under-
diagnosed, which gives Animalcare the opportunity to 
penetrate the existing market and also grow the total market 
through education and technical support.
The third launch of the year was Marbocare tablets, the 
associated in-house development of Marbocare injection 
launched last period. Marbocare contains an antibiotic for 
the treatment of infections in dogs and cats. Restrictions on 
the use of antibiotics in production animals are having an 
impact on their use in companion animals too. Several other 
generic products were also launched in the year having an 
impact on the anticipated growth of Marbocare.
Companion Animal Identification
Cat Health Check
Our Companion Animal Identification group sales and 
marketing strategy has started to deliver results with revenue 
growth of 7.8% to £2.4m, and gross profit up by 6.0% to 
£1.7m, an even more pleasing result against the backdrop 
of uncertainty over new legislation and the Dogs Trust free 
microchipping campaign through veterinary practices.
Microchip sales grew by 8.2% whilst our database of 
pet owners, Anibase, has now grown to 4.0 million. The 
revenues derived from services sold to these owners also 
grew in line with microchip sales revenues, at 7.1%.
Chief Executive’s Review continued
Animalcare Group plc Annual Report 2014
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www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   10 10/27/2014   12:11:05 PM In February 2013, the English Parliament announced that it 
would be compulsory for all dogs in England to be implanted 
with a microchip and have up-to-date owner contact details 
on a database from April 2016 onwards. This was soon 
followed by the Welsh Assembly announcing the same 
legislation would be introduced in March 2015 for dogs in 
Wales. It is already compulsory in Northern Ireland and the 
Scottish Parliament is reviewing the situation.
At the same time as the English Parliament’s announcement 
the Dogs Trust announced it would fund a million free 
microchips in a year-long campaign leading up to April 2016.
As a result of this activity the microchip market has seen 
some price pressure in the short-term.
The lack of clarity and disruption in the market around both 
announcements has now settled and we better understand 
how both will be implemented, however uncertainty 
remains as to what extent owners and veterinary practices 
will engage in either the legislation or free microchipping 
campaign respectively.
Animal Welfare Products
We further rationalised some of our lower margin, 
commoditised lines in the Animal Welfare Products group 
resulting in a fall in revenue of 3.6% to £2.6m but gross 
profit increasing by 0.5% to £1.1m. Approximately half of 
the revenue from this group is generated from our growing 
infusions accessories range which complements our 
intravenous fluids portfolio.
 Operational Overview
As one of the three focus areas over the past twelve months, 
a lot of work has gone into building a strong foundation to 
underpin our investment phase over the next three to five 
years.
These infrastructure improvements outlined below have all 
been implemented in a planned and measured way, keeping 
control of our cost base whilst not restricting our growth.
People
Sales
Our sales team is a rare asset in the animal health sector 
and vital for our success. Our new Head of Sales, Samantha 
Williamson, joined us from a senior sales role in Novartis 
human health and has had an immediate impact on the 
shape and culture of the team. The UK sales team has 
been split into two geographic territories with stronger 
management support and coaching. In addition, Animalcare 
has embarked on a long-held plan and is introducing a 
telesales team. The breadth of products across all three 
product groups means we need to identify new channels 
to better address our market. The new structure has 
allowed our Head of Sales to invigorate our approach to 
key accounts, the corporate, charity and buying groups 
mentioned earlier. All three elements of our rejuvenated 
sales operations will take time to show full effect, however 
the early signs in all areas are promising.
Our Performance / Chief Executive’s Review
Vitofyllin
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Stock Code: ANCR
Our Financials Our Governance Our Performance Our Business
Animalcare Annual Report 2014 - Proof 3.indd   11 10/27/2014   12:11:06 PM Chief Executive’s Review continued
Technical and Business Development
Karolyn Tapper, Director of Business Development, was 
appointed at the start of August 2013, allowing for a 
thorough hand over of projects and responsibilities from 
Stephen Wildridge, Animalcare’s previous Director of 
Strategy and Business Development who left the Company 
in October 2013. Karolyn joined Animalcare from Catalent, 
the global pharmaceutical manufacturer, with a wealth 
of formulation, project management and development 
experience. At the same time, Torben Orskov was promoted 
to Director of Technical and Regulatory Affairs. Torben was a 
practising large and small animal veterinary surgeon for ten 
years before joining Animalcare in 2007. It became clear that 
the number of opportunities available to Animalcare meant 
more resource was required in our Technical and Business 
Development departments. In the second half of the period 
both departments were enlarged. These appointments have 
not only increased the capacity of both teams but this has 
in turn allowed both senior managers more time to drive our 
product development strategy.
Moreover, the addition of more veterinary qualified staff 
across technical, marketing and sales functions means our 
expertise and service to our customers will improve further 
still.
General
Animalcare recognises the dedication and calibre of its 
employees. The growth in the business has opened up 
internal promotions and career progression opportunities; 
hard earned expertise being retained, complemented by the 
freshness of a ‘new’ career.
Underpinning our growing business, our suite of personnel 
systems and policies has been brought up-to-date to further 
reinforce commitment to our valued team.
IT
We have carried out upgrades to our computing 
infrastructure during the period to both the core business 
and the microchip database, Anibase. Virtualised servers, 
which provide smooth and uninterrupted operation, have 
drastically reduced the risk of downtime.
In the second half of the period we started the roll out of 
a new sales Customer Relationship Management (CRM) 
software system. This is now implemented and beginning to 
add value to many areas of the business.
Inventories
During the period Animalcare increased its inventory levels 
of certain key products. The increase applied particularly to 
two product lines, microchips and Buprecare. In the case of 
the former, this was in readiness for an anticipated surge in 
demand following the announcement of planned compulsory 
microchipping by the English Parliament and Welsh 
Assembly. Now that we understand more of the dynamics 
of this legislation and the activities of the Dogs Trust we will 
manage stock levels accordingly. Buprecare ampoules were 
reintroduced into the market in January 2013 and we have 
built stock of this key product line to ensure continuity of 
supply.
We will continue to balance having sufficient stocks to meet 
demand and contingency to protect us from unexpected 
eventualities in our supply chain, whilst at the same time, 
keeping our working capital at an acceptable level. The 
nature of a highly regulated industry with prescribed batch 
sizes, and prohibitively expensive regulatory costs to 
maintain a second supplier, means that this process has to 
be managed carefully.
Vetasept in use
Animalcare Group plc Annual Report 2014
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Animalcare Annual Report 2014 - Proof 3.indd   12 10/27/2014   12:11:07 PM Future Developments
Vet Examines Dog
Animalcare will be launching two new veterinary medicines 
in the second half of the new financial year on distribution 
from one of our key European partners. These complement 
existing products within the range very well. A third 
distribution product may be launched towards the end of the 
second half of the current financial year dependent on exact 
timing of regulatory packaging approvals.
Development of new non-pharmaceutical products and 
services is still commercially attractive where this can build 
on our core strengths and improve profitability; where this 
is not possible we will continue to review and potentially 
remove more products from our Animal Welfare Products 
range.
Outlook
In the short-term there is still great potential in our existing 
product range and imminent launches to keep our 
momentum and grow further. Moreover, there is capacity 
for Animalcare to grow sales through building better 
relationships with the key account market.
The strength of our business will continue to generate the 
necessary cash to meet our development and dividend 
targets, particularly through our investment phase.
I am confident that we can keep our pipeline well stocked 
with new product candidates into the medium-term.
I have outlined above the dynamics in the European 
animal health space, leading to a more crowded medicines 
market and pressure on margins from veterinary channel 
consolidation. Our strategy to complement (un)differentiated 
generic medicine launches with enhanced generic product 
development will enable us to grow market share and 
protect margin.
Additions we have made to our team and improved structure 
to our development process will ensure we are on course to 
meet our objectives.
Iain Menneer 
Chief Executive Officer
13
Stock Code: ANCR
Our Financials Our Governance Our Performance Our Business
Our Performance / Chief Executive’s Review
Animalcare Annual Report 2014 - Proof 3.indd   13 10/27/2014   12:11:07 PM Financial Review
The Group delivered another solid performance during the 
financial year to 30
th
 June 2014. Underlying operating profit, 
our measure of trading performance excluding exceptional 
costs, grew by 4.4% to £2.8m. This reflects our continued 
strong revenue growth together with increased investment in 
our business to provide a solid platform for future growth.
We continue to operate a strong, debt-free, balance 
sheet. This not only provides us with the ability to invest 
significantly in new product development opportunities to 
drive long-term growth, but also maintenance of the dividend 
during our planned investment cycle.
Revenue and gross profit
Group revenues increased by 6.3%, broadly comparable to 
the 5.9% delivered in the first half of the financial year. Our 
Licensed Veterinary Medicines product group continues to 
be the main driver for growth, with sales up 9.5% on prior 
year to £7.9m, 8.5% of which is like-for-like growth.
Our Companion Animal Identification grouping has returned 
to growth, delivering an overall increase in sales of 7.8% to 
£2.4m. This growth rate was approximately evenly spread 
across both microchips and database services.
“Building on the strong, solid foundations 
laid down during the year, we will continue 
to invest in the long-term growth and 
development of the business”.
As stated in the Chief Executive’s Review, we took action 
to rationalise some of the older, uncompetitive and less 
profitable products from the Animal Welfare Products group. 
This planned rationalisation led to a reduction in revenues 
of 3.6% to £2.6m however with gross margins improving, 
overall gross profitability has been maintained.
Gross profit increased by 5.2% to £7.1m. Our gross margins 
fell modestly to 55.4% (2013: 56.0%) reflecting the higher 
proportion of export sales, which are generally at lower 
margin, together with the continued competitive market 
conditions.
Operating results
2014 2013
%
change
Underlying* EBITDA 3,162 2,916 8.4%
Depreciation & amortisation (360) (232)
Underlying* operating profit 2,802 2,684 4.4%
Profit before tax 2,672 2,330 14.7%
Underlying* operating profit increased by 4.4% to £2.8m which was achieved by increasing gross profits whilst maintaining overheads (excluding research and 
development expenses) at around 32% of revenue. This was in part achieved through a thorough review of selected operational overheads which generated an 
average of 5% to 10% savings on an annualised basis.
As noted in the Chairman’s Statement, the business 
took a decision during the last financial year, in light of 
our continued solid trading performance, to invest in the 
infrastructure and senior management team to position 
ourselves for future growth. This investment included the 
relocation to our new premises during March 2013 together 
with the increase and strengthening of our employee base, 
in particular, our senior management, sales and product 
development teams.
Chris Brewster Chief Financial Officer
Animalcare Group plc Annual Report 2014
14
www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   14 10/27/2014   12:11:08 PM Research and development costs, which incorporate a share 
of the enhanced product development team, are separately 
analysed in the income statement for the first time in 
preparation for the expected significant increase from FY15.
Non-underlying items of £0.2m are £0.2m lower than prior 
year, principally reflecting the one-off costs incurred during 
2013 in respect of executive Board changes and head office 
relocation costs. Further details are provided in note 4.
Reflecting all of the above, Group profit before tax was up 
14.7% to £2.7m.
Cash flow
Cash flows generated by operations were £1.6m (2013: 
£3.1m). During the year, the Group increased its stock levels 
by £1.0m to ensure we have the inventory depth to improve 
surety of supply of key products and in addition, to support 
certain strategic projects.
The increase in our stock levels was planned; similarly we 
expect to see a reduction of circa £0.3m during the next 
financial year as the run up to compulsory microchipping 
concludes.
Net income taxes paid increased by £0.3m to £0.6m, the 
movement primarily reflecting the lower cash benefit in 
relation to prior year research and development tax credits. 
We continue to take full advantage of the UK’s R&D tax relief 
where appropriate.
Following the relocation of our offices in March 2013, total 
capital expenditure reduced by £0.3m to £0.2m. The 2014 
expenditure primarily related to product development which 
remained broadly in line with prior year. Whilst our spend 
was lower than anticipated, the positive impact of the 
enhanced focus on our product pipeline is clear.
Group cash balances at 30
th
 June 2014 were £3.8m (2013: 
£3.7m).
Earnings per share (“EPS”)
Basic underlying* EPS improved by 2.9% to 10.8 pence 
(2013: 10.5 pence). Basic earnings per share rose more 
significantly by 13.2% to 10.3 pence (2013: 9.1 pence) 
reflecting the lower cost of exceptional items incurred during 
2014.
Dividend
As stated during our interim reporting at 31
st
 December 
2013, the Board intends to maintain the dividend flow during 
the investment cycle. This reflects the continuing strength of 
our balance sheet and cash position. The Board will monitor 
the Group’s cash balances, paying particular regard to future 
investment opportunities.
As a result, the Board is proposing a final dividend in respect 
of the year of 4.0 pence per share, giving a total dividend of 
5.5 pence per share for 2014 (2013: 5.3 pence per share). 
This final dividend is subject to shareholder approval at the 
Annual General Meeting on 18
th
 November 2014 and will be 
paid on 28
th
 November 2014 to shareholders on the register 
at the close of business on 24
th
 October 2014. The ordinary 
shares will become ex-dividend on 23
rd
 October 2014. The 
total dividend is covered 2.0 times underlying* earnings 
(2013 - 2.0 times) 
Summary and outlook
Current trading during the first three periods of the year is in 
line with management expectations.
Building on the strong, solid foundations laid down during 
the year, we will continue to invest in the long-term growth 
and development of the business. In the shorter term, this 
will lead to higher research and development costs, which 
will impact both our cost base as well as capital expenditure. 
Nonetheless, short-term revenue growth is important to 
the business, and we expect to benefit from the sales and 
marketing investments made in the second half of 2014.
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.
15
Stock Code: ANCR
Our Financials Our Governance Our Performance Our Business
Our Performance / Financial Review
Animalcare Annual Report 2014 - Proof 3.indd   15 10/27/2014   12:11:08 PM Board of Directors
James Lambert OBE  
Non-Executive Chairman
Length of service 
6 years; appointed to the Board in 2008
Committee membership 
Nomination Committee
Key skills and experience 
James was appointed Chairman of 
Animalcare in 2008 when Animalcare 
was acquired by Ritchey plc for whom 
he was chairman since 2005 and 
non-executive director since 2003. 
Under James’ leadership, R&R Ice 
Cream made a series of acquisitions 
to become the largest ice cream 
manufacturer by volume in the UK. 
James is now chairman of Burton’s 
Biscuits, a company he helped Ontario 
Teachers’ Pension Plan acquire in 
2013. He was also awarded the EY 
UK Entrepreneur of the Year award in 
2014.
Lord Downshire 
Non-Executive Director
Length of service 
6 years; appointed to the Board in 2008
Committee membership 
Audit Committee and  
Remuneration Committee
Key skills and experience 
Nick joined the Board of Animalcare 
when it was acquired by Ritchey 
plc for whom he acted as a director 
since 1998. Nick is a qualified 
chartered accountant who has 
worked in corporate finance and 
venture capital, plus holding non-
executive directorships in a diverse 
range of businesses in the insurance, 
agricultural, hospitality, education and 
technology sectors. He runs an estate 
in Yorkshire with a range of activities 
including quarrying, renewables, 
forestry and a hotel as well as 
agriculture and property. He is also 
Chairman of the CLA for Yorkshire and 
sits on their national policy committee, 
as well as acting as a Trustee for a 
number of charitable and land related 
trusts.
Ray Harding 
Non-Executive Director
Length of service 
3 years; appointed to the Board in 2011
Committee membership 
Chair of the Nomination Committee  
and Remuneration Committee
Key skills and experience 
Ray has worked in the veterinary 
pharmaceutical industry since 1979 
in many technical and product related 
roles for several international ‘blue 
chip’ companies. He established 
Cyton Biosciences Ltd in 1997 to 
provide specialist services in new 
product development and registration 
for bioscience industries in Europe. 
Ray left Cyton in 2012 and is now an 
independent consultant.
Being a qualified veterinary surgeon 
Ray brings unique technical expertise 
to the Board. He has extensive 
experience in the development of 
veterinary medicines and in the 
European regulatory environment. His 
knowledge encompasses the complete 
range of veterinary medicines and 
the market in which they compete in 
Europe.
Animalcare Group plc Annual Report 2014
16
www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   16 10/27/2014   12:11:08 PM Iain Menneer 
Chief Executive Officer
Length of service 
11 years; appointed to the Board in 2011
Committee membership 
Secretary of the Nomination Committee 
and Remuneration Committee and  
by invitation
Key skills and experience 
Iain joined Animalcare Ltd in 
2003, working in sales, marketing 
and business development roles, 
including an instrumental role in the 
new product development pipeline. 
Iain was promoted to the Board as 
Director of Marketing in July 2011. Iain 
was appointed Managing Director of 
Animalcare Limited in March 2012 and 
subsequently Chief Executive Officer in 
January 2013.
Chris Brewster  
Chief Financial Officer  
and Company Secretary
Length of service 
2 years; appointed to the Board in 2012
Committee membership 
By invitation
Key skills and experience 
Chris has been Chief Financial Officer 
since June 2012. He qualified as a 
chartered accountant in 2003 and 
spent ten years at KPMG, working 
across a number of functions 
including Audit, Transaction Services 
and Corporate Finance, gaining a 
broad range of experience across a 
diversified portfolio of clients. Prior to 
joining Animalcare, Chris was Group 
Accounting Manager at Findus Group 
where he was responsible for the UK 
and European financial accounting, 
taxation and reporting requirements.
17
Our Performance Our Financials
Stock Code: ANCR
Our Governance Our Business
Our Governance / Board of Directors
Animalcare Annual Report 2014 - Proof 3.indd   17 10/27/2014   12:11:08 PM Directors’ Report
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 2014.
Principal Activities
The principal activity of the Group during the year was the 
sales and distribution of licensed veterinary medicines and 
companion animal identification products and services to 
companion animal veterinary markets. 
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 long-term growth and success of the Group and we 
are committed to the development of new and innovative 
products to meet the needs of our customers. Further 
information in relation to product development can be found 
in the Our Business and Strategy section of this report. 
During the year to 30
th
 June 2014 the Group incurred 
research and development expenses of £260,000 (2013: 
£207,000) and a further £156,000 (2013: £102,000) was 
capitalised as development costs.
Dividends
Subject to shareholder approval at the Annual General 
Meeting on 18
th
 November 2014, the Board proposes paying 
a final dividend of 4.0 pence per share on 28
th
 November 
2014 to shareholders on the register on 24
th
 October 2014. 
This will make a total dividend of 5.5 pence per share for 
2014.
Capital Structure
The Company’s issued share capital as at 30
th
 June 2014 
was 20,960,204 ordinary shares of 20 pence each, each 
credited as fully paid.
Directors
The following Directors held office during the year ended 30
th
 
June 2014 and subsequently:
C J Brewster
Lord Downshire
R B Harding
J S Lambert
I D Menneer
S M Wildridge (resigned 31
st
 October 2013)
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 2014 and remains in 
place at the date of this report.
Animalcare Group plc Annual Report 2014
18
www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   18 10/27/2014   12:11:08 PM Principal Risks and Uncertainties
Risk
Description and Mitigation Trend
Failure of 
new product 
development 
projects
In line with the Group's strategy, we plan to commit a significant amount 
of resources to expand our portfolio of licensed veterinary medicines, the 
success of which would be comprised by a number of factors. Firstly, delay 
or failure to achieve the required regulatory standards could have a material 
impact on the Group’s results, both for future revenues as well as, in the 
result of regulatory failure, accelerated write off of capitalised development 
costs. Also the commercial success of these products following their launch 
may not meet expectations. Following careful selection of development 
strategy, each new product development project undergoes rigorous review 
by the cross-discipline senior management team with final sign off by the 
Board. The pipeline is reviewed regularly, with corresponding updates 
provided to the Board, to ensure each project is progressing according to 
plan. External consultants, where deemed necessary, are employed to aid 
effective management of the development and regulatory process. The 
overall risk of any one project failing is reduced by having numerous projects 
in the pipeline at various stages of development.

Reliance on a 
small number of 
key customers
Due to the supply chain model, the Group derives a substantial proportion 
of its revenue from three main UK wholesalers that serve the circa 4,000 
veterinary practices within the UK. Sales to these wholesalers represent 82% 
of total revenues. In the event that these relationships are lost the effect on 
the Group’s revenue could be significant. However, such effect is likely to 
be temporary as the supply chain would rapidly adjust to take up the slack 
brought about by any significant failure of one wholesaler. Equally, as our 
business develops its scope into new geographical markets the customer 
base will grow.

Continuity of 
supply
The Group purchases goods for resale under contract manufacturer supply 
and distribution agreements. Any disruption to the relationship with our key 
supply partners or interruption to the supply chain could result in significant 
loss of Group revenue. Generally, it is not in the commercial interests of the 
Group to implement dual sourcing for finished product. Supply chain risk 
mitigation strategies include close monitoring of supplier performance, dual 
sourcing of raw material and, due to our increased warehouse capacity, the 
maintenance of contingency stocks where appropriate.

Loss of key 
personnel
The Group has a small Executive and senior management team whose skills, 
knowledge, experience and performance make a large contribution to the 
success of the Group. 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 new Long Term Incentive Plan to ensure 
that (i) key members are appropriately compensated for their contributions (ii) 
their interests are closely aligned to delivering shareholder value and (iii) they 
are incentivised to continue their careers with the Group.

19
Our Performance Our Financials
Stock Code: ANCR
Our Governance Our Business
Our Governance / Directors’ Report
Animalcare Annual Report 2014 - Proof 3.indd   19 10/27/2014   12:11:08 PM 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 2014 was 
54 days (2013: 61 days).
Corporate Governance
The Directors support the underlying principles of the 
UK Corporate Governance Code, notwithstanding that 
the Group is not required to comply with all of the Code’s 
recommendations. The Board recognises its overall 
responsibility for the Group’s systems of internal control 
and their effective operation and it has sought to comply 
with those provisions of the Code judged appropriate 
for the current size and nature of the Group, being the 
establishment of an audit committee, a remuneration 
committee and a nominations committee.
Formally constituted audit, remuneration and nominations 
committees, with membership comprising two of the Group’s 
three Non-Executive Directors, were established on the 
Group’s admission to AIM and are active in the conduct 
of internal financial control, Executive performance and 
remuneration and Board appointments respectively. 
Charitable and Political Donations
During the year the Group made charitable donations of 
£100 (2013: £50). No political donations were made during 
the year (2013: £nil).
Employees
The Board recognises that the Group’s performance and 
success are directly related to our ability to attract, retain 
and motivate high calibre employees. We are committed 
to linking reward to business and individual performance, 
thereby giving employees the opportunity to share in the 
financial success of the Group. Employees are typically 
provided with financial incentives related to the performance 
of the Group in the form of annual bonuses. The Board also 
recognises employees for their contribution through the use 
of employee incentive plans and share plans within overall 
remuneration.
Applications for employment by disabled persons are 
given full and fair consideration. When existing employees 
become disabled every effort is made to provide continuing 
employment wherever possible.
Prednicare Tablets
Animalcare Group plc Annual Report 2014
20
www.animalcaregroup.co.uk
Directors’ Report continued
Animalcare Annual Report 2014 - Proof 3.indd   20 10/27/2014   12:11:09 PM Substantial Shareholdings
In accordance with the Disclosure Rules and Transparency Rules, the Company has been notified of the following interests 
exceeding the 3% notification threshold as at 30
th
 September 2014, a date not more than one month before the date of the 
notice of the Annual General Meeting:
Name of holder
No. of
 ordinary 
shares
%
 holding
Investec Wealth Management Limited including the beneficial shareholding of S F Riddell of 
905,600 shares (4.3%)* 2,323,587 11.1%
Liontrust Asset Management 2,059,251 9.8%
Octopus Investments 1,423,984 6.8%
Lord Downshire** 1,420,029 6.8%
Mr J S Lambert 1,413,691 6.7%
Unicorn Asset Management 1,250,500 6.0%
Lazard Freres Gestion 1,150,000 5.5%
Hargreave Hale 1,074,542 5.1%
* S F Riddell’s shareholding includes a non-beneficial interest in 560,600 ordinary shares 
** Lord Downshire’s interest includes a non-beneficial interest in 310,446 ordinary shares
Going Concern
The principal risks and uncertainties facing the Group are set out above.
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 2014 the Group had cash on hand of £3.8m (30
th
 June 2013: £3.7m).
Overall, the Directors believe the Group is well placed to manage its business risks successfully and continue to be 
profitable and cash generative. The Group’s forecasts and projections, taking account of reasonable possible changes 
in trading performance, show that the Group should have sufficient cash resources to meet its requirements for at least 
the next 12 months. Accordingly, the adoption of the going concern basis in preparing the financial statements remains 
appropriate.
Auditor
Each of the persons who is a Director at the date of this annual report confirms that:
• So far as the Director is aware, there is no relevant audit information of which the Company’s auditor is unaware; and
• The Director has taken all the steps that he ought to have taken as a Director in order to make himself aware of any 
relevant audit information and to establish that the Group’s auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
A resolution to re-appoint KPMG LLP as auditors and to authorise the Directors to determine their remuneration will be put to 
the members at the forthcoming Annual General Meeting.
Animalcare Group plc
By order of the Board,
Chris Brewster 
Company Secretary
14th October 2014
21
Our Performance Our Financials
Stock Code: ANCR
Our Governance Our Business
Our Governance / Directors’ Report
Animalcare Annual Report 2014 - Proof 3.indd   21 10/27/2014   12:11:09 PM Animalcare Group plc Annual Report 2014
22
Animalcare Annual Report 2014 - Proof 3.indd   22 10/27/2014   12:11:10 PM Statement of Directors’ Responsibilities
in respect of the Annual Report and the Financial Statements for the year ended 30ᵗʰ June 2014
The Directors are responsible for preparing the Strategic 
Report, the Annual Report and the financial statements in 
accordance with applicable law and regulations. Company 
law requires the Directors to prepare Group and parent 
Company financial statements for each financial year. As 
required by the AIM Rules of the London Stock Exchange 
they are required to prepare the Group financial statements 
in accordance with IFRSs as adopted by the EU and 
applicable law and have elected to prepare the parent 
Company financial statements on the same basis.
Under company law the Directors must not approve the 
financial statements unless they are satisfied that they give 
a true and fair view of the state of affairs of the Group and 
parent Company and of their profit or loss for that period. In 
preparing each of the Group and parent Company financial 
statements, the Directors are required to:
• select suitable accounting policies and then apply them 
consistently;
• make judgements and estimates that are reasonable and 
prudent;
• state whether they have been prepared in accordance 
with IFRSs as adopted by the EU; and
• prepare the financial statements on the going concern 
basis unless it is inappropriate to presume that the Group 
and the parent Company will continue in business
The Directors are responsible for keeping adequate 
accounting records that are sufficient to show and explain 
the parent Company’s transactions and disclose with 
reasonable accuracy at any time the financial position of 
the parent Company and enable them to ensure that its 
financial statements comply with the Companies Act 2006. 
They have general responsibility for taking such steps 
as are reasonably open to them to safeguard the assets 
of the Group and to prevent and detect fraud and other 
irregularities.
The Directors are responsible for the maintenance and 
integrity of the corporate and financial information included 
on the Company’s website. Legislation in the UK governing 
the preparation and dissemination of financial statements 
may differ from legislation in other jurisdictions.
Vetasept Range
23
Our Performance Our Financials Our Governance Our Business
Stock Code: ANCR
Our Governance / Directors’ Report / Statement of Directors’ Responsibilities
Animalcare Annual Report 2014 - Proof 3.indd   23 10/27/2014   12:11:11 PM 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 2014 set out on pages 25 to 
53. The financial reporting framework that has been applied in their preparation is applicable law and International Financial 
Reporting Standards (IFRSs) as adopted by the EU and, as regards the parent Company financial statements, as applied in 
accordance with the provisions of the Companies Act 2006.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies 
Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are 
required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not 
accept or assume responsibility to anyone other than the Company and the Company’s members, as a body, for our audit 
work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditor
As explained more fully in the Statement of Directors’ Responsibilities the Directors are responsible for the preparation of 
the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit, and express 
an opinion on, the financial statements in accordance with applicable law and International Standards on Auditing (UK and 
Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at 
www.frc.org.uk/auditscopeukprivate.
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 2014 and of the Group’s profit for the year then ended;
• the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the EU;
• the parent Company financial statements have been properly prepared in accordance with IFRSs as adopted by the EU 
and as applied in accordance with the provisions of the Companies Act 2006 and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and Directors’ Report for the financial year for which the financial 
statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, 
in our opinion:
• adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been 
received from branches not visited by us; or
• the parent Company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Chris Hearld (Senior Statutory 
Auditor)
For and on behalf of
KPMG LLP
Statutory Auditor
Chartered Accountants
1 The Embankment
Leeds
LS1 4DW
14
th
 October 2014
Animalcare Group plc Annual Report 2014
24
www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   24 10/27/2014   12:11:11 PM Note
Underlying
 results before
 exceptional 
and
 other items
 2014
 £'000
Exceptional 
and
other items(i)
2014
£'000
Total
2014
£'000
Underlying
results before
exceptional 
and
other items
2013
£'000
Exceptional 
and
other items(i)
2013
£'000
Total
2013
£'000
Revenue 5 12,881 — 12,881 12,118 — 12,118
Cost of sales (5,739) — (5,739) (5,337) — (5,337)
Gross profit 7,142 — 7,142 6,781 — 6,781
Distribution costs (257) — (257) (271) — (271)
Administrative expenses (3,823) (119) (3,942) (3,619) (392) (4,011)
Research & development 
expenses (260) — (260) (207) — (207)
Operating profit/(loss) 4, 6 2,802 (119) 2,683 2,684 (392) 2,292
Finance income 27 — 27 27 11 38
Finance expense 9 — (38) (38) — — —
Profit/(loss) before tax 4, 6 2,829 (157) 2,672 2,711 (381) 2,330
Income tax (expense)/credit 10 (570) 35 (535) (535) 90 (445)
Total comprehensive income/
(loss) for the year 2,259 (122) 2,137 2,176 (291) 1,885
Earnings per share
Basic 12 10.8p 10.3p 10.5p 9.1p
Fully diluted 12 10.8p 10.2p 10.4p 9.0p
Total comprehensive income/(loss)for the year is attributable to the equity holders of the parent.
1.  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 2014
25
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Independent Auditor’s Report / Consolidated Statement of Comprehensive Income
Animalcare Annual Report 2014 - Proof 3.indd   25 10/27/2014   12:11:12 PM Statements of Changes in Shareholders’ Equity
Year ended 30ᵗʰ June 2014
Group Note
Share 
Capital
£'000
Share 
Premium 
Account
£'000
Retained 
Earnings
£'000
Total
£'000
Balance at 1st 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 1st July 2013 4,149 6,192 7,621 17,962
Total comprehensive profit for the year — — 2,137 2,137
Transactions with owners of the Company, recognised in 
equity:
Dividends paid 11 — — (1,103) (1,103)
Issue of share capital 23 43 199 — 242
Share-based payments — — 215 215
Balance at 30th June 2014 4,192 6,391 8,870 19,453
Company Note
Share 
Capital
£'000
Share 
Premium 
Account
£'000
Retained 
Earnings
£'000
Total
£'000
Balance at 1st 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 1st July 2013 4,149 6,192 2,399 12,740
Total comprehensive profit for the year — — 2,166 2,166
Transactions with owners of the Company, recognised in 
equity:
Dividends paid 11 — — (1,103) (1,103)
Issue of share capital 23 43 199 — 242
Share-based payments — — 86 86
Balance at 30th June 2014 4,192 6,391 3,548 14,131
As permitted by section 408 of the Companies Act 2006, the statement of comprehensive income of the parent Company is 
not presented as part of these financial statements.
Animalcare Group plc Annual Report 2014
26
www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   26 10/27/2014   12:11:12 PM Balance Sheets
30ᵗʰ June 2014
Group
Company
Note
2014
£'000
2013
£'000
2014
£'000
2013
£'000
Non-current assets
Goodwill 13 12,711 12,711 — —
Other intangible assets 14 1,327 1,538 — —
Property, plant and equipment 15 372 412 — —
Investments in subsidiary companies 16 — — 14,361 14,361
Deferred tax asset 22 — — 39 32
14,410 14,661 14,400 14,393
Current assets
Inventories 17 2,420 1,418 — —
Trade and other receivables 18 1,883 1,662 144 578
Cash and cash equivalents 19 3,812 3,745 1,315 1,791
8,115 6,825 1,459 2,369
Total assets 22,525 21,486 15,859 16,762
Current liabilities
Trade and other payables 19 (1,606) (1,982) (1,728) (4,022)
Current tax liabilities (385) (362) — —
Deferred income 21 (242) (231) — —
Current liabilities (2,233) (2,575) (1,728) (4,022)
Net current assets/(liabilities) 5,882 4,250 (269) (1,653)
Non-current liabilities
Deferred income 21 (730) (790) — —
Deferred tax liabilities 22 (109) (159) — —
(839) (949) — —
Total liabilities (3,072) (3,524) (1,728) (4,022)
Net assets 19,453 17,962 14,131 12,740
Capital and reserves
Called up share capital 23 4,192 4,149 4,192 4,149
Share premium account 6,391 6,192 6,391 6,192
Retained earnings 8,870 7,621 3,548 2,399
Equity attributable to equity holders of the parent 19,453 17,962 14,131 12,740
The financial statements of Animalcare Group plc, registered number 1058015, were approved by the Board of Directors and 
authorised for issue on 14
th
 October 2014.
They were signed on its behalf by:
Chris Brewster 
Chief Financial Officer
27
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Statements of Changes in Shareholders’ Equity / Balance Sheets
Animalcare Annual Report 2014 - Proof 3.indd   27 10/27/2014   12:11:12 PM Cash Flow Statements
Year ended 30ᵗʰ June 2014
Group Company
Note
2014
£'000
2013
£'000
2014
£'000
2013
£'000
Comprehensive income/(loss) for the year before tax 10 2,672 2,330 (519) (596)
Adjustments for:
Depreciation of property, plant and equipment 15 69 32 — —
Amortisation of intangible assets 14 410 319 — —
Finance income 9 (27) (27) (20) (25)
Share-based payment expense 25 152 149 86 90
Release of deferred income 21 (49) (30) — —
Loss on disposal of property, plant and equipment — 21 — —
Operating cash flows before movements in working capital 3,227 2,794 (453) (531)
(Increase)/decrease in inventories 17 (1,002) 2 — —
(Increase)/decrease in receivables 18 (221) (365) 7 413
Decrease/(increase) in payables 19 (376) 665 (2,294) 1,056
Cash generated by operations 1,628 3,096 (2,740) 938
Income taxes (paid)/received (561) (265) 552 —
Net cash flow from operating activities 1,067 2,831 (2,188) 938
Investing activities:
Payments to acquire intangible assets 14 (199) (129) — —
Payments to acquire property, plant and equipment 15 (32) (379) — —
Receipts from sale of property, plant and equipment 2 — — —
Dividends received — — 2,553 —
Interest received 27 25 20 23
Net cash (used in)/generated by investing activities (202) (483) 2,573 23
Financing:
Receipts from issue of share capital 305 24 242 24
Equity dividends paid 11 (1,103) (932) (1,103) (932)
Net cash used in financing activities (798) (908) (861) (908)
Net increase in cash and cash equivalents 67 1,440 (476) 53
Cash and cash equivalents at start of year 3,745 2,305 1,791 1,738
Cash and cash equivalents at end of year 3,812 3,745 1,315 1,791
Comprising:
Cash and cash equivalents 18 3,812 3,745 1,315 1,791
Animalcare Group plc Annual Report 2014
28
www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   28 10/27/2014   12:11:12 PM Notes to the Accounts
Year ended 30ᵗʰ June 2014
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, endorsed by the EU, with an effective date 
after the date of these financial statements. Their adoption, where applicable, is not expected to have a material effect on the 
financial statements of the Group.
International Financial Reporting Standards Applies to periods beginning after
IFRS 10 Consolidated Financial Statements January 2014
IFRS 12 Disclosure of Interests in Other Entities January 2014
IFRS 13 Fair value measurement January 2014
IAS 27(Revised) Separate Financial Statements January 2014
2. Significant Accounting Policies
Basis of preparation
The Group and Company financial statements have been prepared and approved by the Directors under the historical cost 
convention, except for the revaluation of certain financial instruments, in accordance with International Financial Reporting 
Standards (“IFRS”) as adopted by the European Union (“adopted IFRSs”) and the Companies Act 2006 as applicable to 
companies reporting under IFRS. They have also been prepared in accordance with the requirements of the AIM Rules.
Going concern
An analysis of the factors likely to impact on the Group’s future business activities, performance and strategy are set out in 
the Chief Executive’s Review and Financial Review. 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 2014 the Group had cash on hand of £3.8m (30
th
 June 2013 — £3.7m).
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.
29
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Cash Flow Statements / Notes to the Accounts
Animalcare Annual Report 2014 - Proof 3.indd   29 10/27/2014   12:11:12 PM Notes to the Accounts 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 and fair value movements on foreign exchange hedging.
The separate presentation of exceptional and other items enables the users of the accounts to better understand the 
elements of 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.
Intangible assets
The Group recognises intangible assets at cost less accumulated amortisation and impairment losses. Intangible assets 
arise both as a result of applying IFRS 3 which requires the separate recognition of intangible assets from goodwill on all 
business combinations from 1
st
 January 2004, and from the purchase of software (that is separable from any associated 
hardware), and development machinery and from research and development (see below).
Intangible assets are amortised on a straight-line basis over their useful economic lives as follows:
Customer relationships 10 years
Brands 15 years
Software Estimated useful life, typically 2-4 years
New product development costs Estimated economic life, normally 4–7 years
Research and development costs
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and 
understanding, is recognised as an expense in the year in which it is incurred.
An internally generated intangible asset arising from the Group’s new product development is recognised only if all of the 
following conditions are met:
• an asset is created that can be identified (such as a new pharmaceutical product);
• it is probable that the asset created will generate future economic benefits; and
• the development cost of the asset can be measured reliably.
Internally generated intangible assets are amortised on a straight-line basis over their estimated economic lives. Where no 
internally generated intangible asset can be recognised, development expenditure is recognised as an expense in the year 
in which it is incurred.
Animalcare Group plc Annual Report 2014
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Animalcare Annual Report 2014 - Proof 3.indd   30 10/27/2014   12:11:12 PM Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for 
goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the risks and rewards of ownership are transferred which is generally 
when goods are delivered.
Income received in relation to long-term service contracts is deferred and subsequently recognised over the life of the 
relevant contracts. Further details are contained in note 21.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate 
applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial 
asset to that asset’s net carrying value.
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of 
ownership to the lessee. All other leases are classified as operating leases.
The Group as lessee
Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease.
Retirement benefit costs
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Payments made 
to state-managed retirement benefit schemes are dealt with as payments to defined contribution schemes where the Group’s 
obligations under the schemes are equivalent to those arising in a defined contribution retirement benefit scheme.
Foreign currencies
In preparing the financial statements of the individual companies, transactions in currencies other than the entity’s functional 
currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each 
balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates 
prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies 
are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured 
in terms of historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included 
in comprehensive income for the year.
Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may earn revenues 
and incur expenses, including revenues and expenses that relate to transaction with any of the Group’s other components. 
An operating segment’s operating results are reviewed regularly by the 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.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and where applicable, 
direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and 
condition. Cost is calculated using the first-in, first-out principle. Net realisable value represents the estimated selling price 
less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
31
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Notes to the Accounts
Animalcare Annual Report 2014 - Proof 3.indd   31 10/27/2014   12:11:12 PM Notes to the Accounts continued
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.
Share-based payments
The Group issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are 
measured at fair value (excluding the effect of non market-based vesting conditions) at the date of grant. The fair value 
determined at the grant date of such equity-settled share-based payments is expensed on a straight-line basis over the 
vesting period, based on the Group’s estimate of shares that will eventually vest and adjusted for the effect of non market-
based vesting conditions (with a corresponding movement in equity).
Fair value is measured by use of the Black–Scholes model. The expected life used in the model has been adjusted, based 
on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations.
The fair value of the shares issued under the new Long Term Incentive Plan were valued on a discounted cash flow basis in 
conjunction with a third party valuation specialist.  
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 
statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other 
years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated 
using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets 
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and 
is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable 
temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be 
available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if 
the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business 
combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no 
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset 
is realised. Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items 
charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against 
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to 
settle its current tax assets and liabilities on a net basis.
Animalcare Group plc Annual Report 2014
32
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Animalcare Annual Report 2014 - Proof 3.indd   32 10/27/2014   12:11:12 PM 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
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the net sales 
proceeds and the carrying amount of the asset and is recognised in the statement of comprehensive income as incurred.
Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the 
Group will be required to settle that obligation. Provisions are measured at the Directors’ best estimate of the expenditure 
required to settle the obligation outstanding at the balance sheet date, and are discounted to present value where the effect 
is material.
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.
33
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Notes to the Accounts
Animalcare Annual Report 2014 - Proof 3.indd   33 10/27/2014   12:11:12 PM Notes to the Accounts continued
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.
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 new product development expenditure
It is the Group’s policy, where the relevant criteria of IAS 38 “Intangible Assets” are met, to capitalise new product 
development expenditure and to amortise this expenditure over the estimated economic life of the asset (product). 
Judgement is required when assessing the technical and commercial feasibility of new product development projects 
including whether regulatory approval will ultimately be achieved.
Capitalised software expenditure
The Group has historically capitalised software projects and developments. Expenditure on a bespoke web based system, 
designed to facilitate online ordering of its products and services, is currently capitalised in the Group’s financial statements 
as the Directors have adjudged it to meet the relevant criteria.
The rate of depreciation on capitalised software is set so as to reflect the pattern of usage and the level of pace of change 
within the global information technology market.
Animalcare Group plc Annual Report 2014
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Animalcare Annual Report 2014 - Proof 3.indd   34 10/27/2014   12:11:12 PM 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 10.2% (2013 : 11.9%). The Directors’ sensitivity analysis 
indicates significant headroom to the carrying value of the CGU when taking into account a reasonably possible change in 
any one of the key assumptions used in the value in use calculations. 
The Group prepares cash flow forecasts derived from the most recent financial budgets and projections approved by 
management for the next five years, thereafter assuming an estimated growth rate of 2% (2013: 1.3%). The growth rates for 
the five year period are based on current performance of the existing product portfolio and the estimated contribution from 
the Group’s new product development pipeline. The Directors believe that the long-term growth rate does not exceed the 
average long-term growth rate for the UK economy.
Impairment of slow-moving and obsolete inventory
The Group performs regular stockholding reviews, in conjunction with sales and market information, to help determine any 
slow-moving or obsolete lines. Where identified, adequate provision is made in the financial statements for writing down or 
writing off the value of such lines in order to reflect the realisable value of its stock.
4. Exceptional and Other Items
Note
2014
£'000
2013
£'000
Executive and management severance payments — 152
Amortisation of acquired intangible assets 14 119 119
Head office relocation — 121
Fair value movements on foreign currency hedging 9 38 (11)
Total exceptional and other items 157 381
During the previous financial year, Stephen Wildridge stepped down from the position as Group CEO and remained in 
the Group until 31
st
 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 of £71,000 was paid on 31
st
 October 2013. In 
addition, an accelerated share based payments charge of £39,000 was recognised to reflect Stephen’s ability to exercise 
early any outstanding share options at 31
st
 October 2013. These options, where Stephen chose to do so, were exercised 
during FY14. The balance of £42,000 related to other management severance payments.
During March 2013, the Group relocated to its new premises. Associated relocation costs principally comprised the costs 
of the new premises whilst unoccupied together with an estimate of the one-off regulatory costs associated with changing 
the address on our pharmaceutical licences. The latter has been fully settled during FY14.
The amortisation charge totalling £119,000 (2013: £119,000) relates to brand and customer relationship intangible assets 
recognised on the acquisition of Animalcare Ltd in January 2008.
35
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Notes to the Accounts
Animalcare Annual Report 2014 - Proof 3.indd   35 10/27/2014   12:11:12 PM Notes to the Accounts continued
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
2014
£'000
Companion 
Animal
2013
£'000
Revenue 12,881 12,118
Gross Profit 7,142 6,781
Underlying Operating Profit 2,802 2,684
Other Items 4 (119) (119)
Exceptional items 4 — (273)
Operating Profit 2,683 2,292
Finance income 9 27 38
Finance expense 9 (38) —
Profit before tax 2,672 2,330
Note
Companion 
Animal
2014
£'000
Companion 
Animal
2013
£'000
Products and Services
Licensed veterinary 7,883 7,200
Animal identification 2,418 2,244
Animal welfare 2,580 2,674
12,881 12,118
Other information
Intangible asset additions 14 199 129
Property, plant and equipment additions 15 32 379
Depreciation and amortisation 14,15 479 351
Consolidated assets 22,525 21,486
Consolidated liabilities (3,072) (3,524)
Consolidated net assets 19,453 17,962
2014
£'000
2013
£'000
Key customers
Number 3 3
Percentage of total revenue 82% 80%
Animalcare Group plc Annual Report 2014
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Animalcare Annual Report 2014 - Proof 3.indd   36 10/27/2014   12:11:12 PM Key customers, all within the Companion Animal segment, are those responsible for 10% or more of segmental revenue.
2014
£'000
2013
£'000
Geographical market
United Kingdom 11,557 11,061
Europe and Rest of World 1,324 1,057
12,881 12,118
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:
2014
£'000
2013
£'000
Revenue from sale of goods 11,951 11,250
Revenue from provision of services 930 868
12,881 12,118
Finance income 27 27
12,908 12,145
6. Total Comprehensive Income for the Year
2014
£'000
2013
£'000
Total comprehensive income for the year has been arrived at after charging:
Cost of inventories recognised as expense 5,639 5,218
Depreciation of tangible assets 69 32
Amortisation of intangible assets 410 319
Research and development 260 207
Operating lease rentals 187 211
Foreign exchange losses 21 24
Increase in provision for receivables 9 6
Increase in provision for inventories 34 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 auditor is as follows:
2014
£'000
2013
£'000
Fees payable to the Company's auditor for the audit of the Company's annual accounts 12 13
Fees payable to the Company's auditor for other services to the Group — —
The audit of the Company's subsidiaries pursuant to legislation 20 17
Total audit fees 32 30
Tax services 16 11
Other services 44 3
Total non-audit fees 60 14
Total auditors' remuneration 93 44
37
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Notes to the Accounts
Animalcare Annual Report 2014 - Proof 3.indd   37 10/27/2014   12:11:12 PM 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 2014
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  
(resigned 31st October 2013) 30 34 — — 66 130
Dr I D Menneer 135 23 16 7 — 181
C J Brewster 102 16 11 1 — 130
Total 344 73 27 10 66 520
Year ended 30
th
 June 2013
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
* 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 was settled on 31
st
 October 2013.
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 
2013 100,000 71,600 28,400 100,000 300,000
Exercised during the year (100,000) — — (100,000) (200,000)
Lapsed during the year — (71,600) (28,400) — (100,000)
Outstanding at 30
th
 June 
2014 — — — — —
Animalcare Group plc Annual Report 2014
38
www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   38 10/27/2014   12:11:13 PM 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
28
th
 August 
2009
4
th
 October
2011
14
th
 
October 
2011
2
nd
August
 2012
20
th
 
November 
2012
21
st
 
February 
2013
22
nd
 
May 
2013
20
th
 June 
2013
Outstanding at 
30th June 2013 5,000 3,358 60,000 60,000 50,000 90,000 4,377 90,000 362,735
Exercised during 
the year (5,000) — — — — — — — (5,000)
Outstanding at 
30th June 2014 — 3,358 60,000 60,000 50,000 90,000 4,377 90,000 357,735
C J Brewster
Scheme EMI EMI SAYE EMI Total
Exercise Price £1.30 £1.30 £1.03 £1.415
Date of Grant 22nd June 2012 2nd August 2012 22nd May 2013 20th June 2013
Outstanding at 30th June 2013 
and 30th June 2014 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:
2014 2013
Ordinary 
shares of 
20p
Ordinary 
shares of 
20p
J S Lambert 1,413,691 1,413,691
Lord Downshire 1,109,583 1,109,583
I D Menneer 14,381 9,381
C J Brewster 4,079 4,079
In addition to the above, Lord Downshire had a non-beneficial interest in 310,446 shares.
S M Wildridge, who resigned as Director on 31
st
 October 2013, had interests in 287,068 shares of the Company at 30
th
 June 
2014 (2013 - 177,068 shares).
New Long Term Incentive Plan
As part of the Animalcare board’s consideration of its overall growth strategy, its Remuneration Committee has been 
reviewing the most effective means of providing a mechanism for senior executives to participate in the Company’s equity at 
a meaningful level.
In this regard, on 20
th
 June 2014, the Board approved the Company’s new senior executive Long Term Incentive Plan (the 
“Plan”). On 27
th
 June 2014, Iain Menneer, Chief Executive Officer, and Chris Brewster, Chief Financial Officer, subscribed for 
growth shares in the capital of Animalcare Ltd, a subsidiary of the Company, under the Plan as follows:
• Iain Menneer – 31,955 A Ordinary Shares of £1.00 each (“A Shares”) for a total cash subscription of £31,955, 
representing 5.2% of Animalcare Ltd’s issued share capital; and
• Chris Brewster – 19,173 A Shares, representing 3% of Animalcare Ltd’s issued share capital and 11,800 B Ordinary 
Shares of £1.00 each (“B Shares”), representing a further 2% of Animalcare Ltd’s issued share capital, for a total cash 
subscription of £30,973.
39
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Notes to the Accounts
Animalcare Annual Report 2014 - Proof 3.indd   39 10/27/2014   12:11:13 PM Notes to the Accounts continued
Dr Menneer and Mr Brewster have the right to sell their A Shares to the Company at any time after 27
th
 June 2017 in 
exchange for Ordinary Shares of 20 pence each in the Company (“Ordinary Shares”). The rights of Dr Menneer and Mr 
Brewster to sell their A Shares are subject to, amongst other provisions, the Company having a market capitalisation in 
excess of £39.0m (“the Hurdle”) at the time of sale. The Hurdle was determined by Animalcare’s Remuneration Committee 
and broadly represented a 20% premium to the Company’s market capitalisation on 27
th
 June 2014.
Each holder of A Shares would, on a sale of his entire holding to the Company, be entitled to receive Ordinary Shares 
representing a percentage of the increase in the Company’s market capitalisation above the Hurdle; being 5% for  
Dr Menneer and 3% for Mr Brewster.
The B Shares are not entitled to participate in any increase in the value of the Company above the Hurdle but can be 
exchanged for Ordinary Shares of an equal value at any time after 27
th
 June 2017.
Further details of the Plan, including the Hurdle, anti-dilution and other provisions, are set out in Animalcare Ltd’s articles of 
association, which is available on the investor relations section of the Company’s website http://www.animalcaregroup.co.uk.
8. Staff Costs
2014 2013
Number of employees
The average monthly number of employees (including Directors) during the year was:
Production and distribution 4 4
Selling and administration 53 53
57 57
2014
£'000
2013
£'000
Related costs
Wages and salaries 1,820 1,810
Social security costs 166 191
Other pension costs 89 78
2,075 2,079
9. Finance Costs and Finance Income
2014
£'000
2013
£'000
Fair value losses on financial instruments* 38 —
Finance costs 38 —
Other net finance income: 
Fair value gains on financial instruments* — (11)
Interest income on bank deposits (27) (27)
Finance income (27) (38)
Net finance costs/(income) 11 (38)
*  Finance gains and losses arising from derivatives held at fair value through profit and loss relate to fair value movements on the Group’s foreign exchange 
hedges. These gains and losses are included within “other items” on the face of the statement of comprehensive income.
Animalcare Group plc Annual Report 2014
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www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   40 10/27/2014   12:11:13 PM 10. Income Tax Expense
Note
2014
£'000
2013
£'000
The income tax expense comprises:
Current tax expense 690 632
Adjustment in the current year in relation to prior years (105) (175)
585 457
The deferred tax (credit)/expense comprises:
Origination and reversal of temporary differences 22 (70) (18)
Adjustment in the current year in relation to prior years 22 20 6
(50) (12)
Total tax expense for the year 535 445
The total tax charge can be reconciled to the accounting profit as follows:
Total comprehensive income for the year 2,137 1,885
Total tax expense 535 445
Profit before tax 2,672 2,330
Income tax calculated at 22.5% (2013 — 23.75%) 601 553
Effect of expenses not deductible 55 48
Effect of share-based deductions (13) 20
Change in UK tax rate (23) (7)
Effect of adjustments in respect of prior years (85) (169)
535 445
The tax credit of £35,000 (2013 : £90,000) shown within “exceptional and other items” on the face of the statement of 
comprehensive income, which forms part of the overall tax charge of £535,000 (2013: £445,000) relates to the items 
analysed in note 4.
The prior year current tax credits in respect of both 2014 and 2013 primarily relate to research and development tax credits.
Reductions in the UK corporation tax rate 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 20%, being the 
substantively enacted rate at 30
th
 June 2014. The future rate reductions will affect the Group’s future current tax charges.
11. Dividends
2014
£'000
2013
£'000
Ordinary final dividend paid in respect of prior year 788 621
Ordinary interim dividend paid 315 311
1,103 932
The final dividend paid during the year ended 30
th
 June 2014 was 3.8 pence per share (2013: 3.0 pence per share). The 
interim dividend paid during the year ended 30
th
 June 2014 was 1.5 pence per share (2013: 1.5 pence per share).
The proposed final dividend was approved by the Board of Directors on 14
th
 October 2014 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 
2014, in accordance with IAS 10 “Events After the Balance Sheet Date”.
41
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Notes to the Accounts
Animalcare Annual Report 2014 - Proof 3.indd   41 10/27/2014   12:11:13 PM 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
2014
£’00
Underlying
earnings 
before
exceptional 
and
other items
2013
£’000
Total
earnings
2014
£’000
Total
earnings
2013
£’000
Total comprehensive income attributable to equity holders of the 
Company 2,259 2,176 2,137 1,885
2014
No.
2013
No.
2014
No.
2013
No.
Basic weighted average number of shares 20,824,931 20,732,636 20,824,931 20,732,636
Dilutive potential ordinary shares 126,980 124,519 126,980 124,519
20,951,911 20,857,155 20,951,911 20,857,155
Earnings per share:
Basic 10.8p 10.5p 10.3p 9.1p
Fully diluted 10.8p 10.4p 10.2p 9.0p
13. Goodwill
Group
£'000
Cost
At 1st July 2012, 1st July 2013 and 30th June 2014 12,711
Accumulated impairment losses
At 1st July 2012, 1st July 2013 and 30th June 2014 —
Net book value
At 30th June 2014 and 30th June 2013 12,711
The carrying amount of Group goodwill is allocated to the Group’s sole cash-generating unit (“CGU”), being the Companion 
Animal segment.
The recoverable amount of goodwill is determined from value in use calculations.
The Group prepares cash flow forecasts derived from the most recent financial budgets and projections approved by 
management for the next five years and thereafter assuming an estimated long-term annual growth rate of 2.0%  
(2013: 1.3%).
Animalcare Group plc Annual Report 2014
42
www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   42 10/27/2014   12:11:13 PM 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 10.2% (2013: 11.9%).
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.
14. Other Intangible Assets
Group
Acquired
brands and
customer
relationships
£'000
New product
development
costs
£'000
Capitalised
software
£'000
Total
£'000
Cost
At 1st July 2012 1,361 1,389 95 2,845
Additions — 102 27 129
At 30th June 2013 1,361 1,491 122 2,974
Additions — 156 43 199
At 30th June 2014 1,361 1,647 165 3,173
Amortisation
At 1st July 2012 534 562 21 1,117
Charge for the year 119 175 25 319
At 30th June 2013 653 737 46 1,436
Charge for the year 119 253 38 410
At 30th June 2014 772 990 84 1,846
Carrying value
At 30th June 2014 589 657 81 1,327
At 30th June 2013 708 754 76 1,538
Veterinary medicine product development costs are amortised over four to seven years, acquired brands are amortised over 
15 years and acquired customer relationships are amortised over ten years. The amortisation period for capitalised software, 
which principally relates to the bespoke online ordering system, is four years.
43
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Notes to the Accounts
Animalcare Annual Report 2014 - Proof 3.indd   43 10/27/2014   12:11:13 PM 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 1st July 2012 — 63 133 10 206
Additions 187 44 131 17 379
Disposals — — (1) (27) (28)
At 1st July 2013 187 107 263 — 557
Additions — 27 5 — 32
Disposals (3) — — — (3)
At 30th June 2014 184 134 268 — 586
Depreciation
At 1st July 2012 — 40 73 10 123
Charge for the year 3 2 27 — 32
Disposals — — — (10) (10)
At 1st July 2013 3 42 100 — 145
Charge for the year 19 14 36 — 69
At 30th June 2014 22 56 136 — 214
Net book value
At 30th June 2014 162 78 132 — 372
At 30th June 2013 184 65 163 — 412
16. Investments in Subsidiaries
Subsidiary undertakings
Company
2014
£'000
2013
£'000
Cost and net book value
At 1st July 2012, 2013 and 30th June 2014 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 90
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
Animalcare Group plc Annual Report 2014
44
www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   44 10/27/2014   12:11:13 PM 17. Inventories
Group
2014
£'000
2013
£'000
Finished goods and goods for resale 2,420 1,418
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
2014
£'000
2013
£'000
2014
£'000
2013
£'000
Trade receivables 1,577 1,386 — —
Amounts receivable from subsidiaries — — — —
Corporation tax – Group relief — — 129 556
Other receivables 4 8 4 7
Derivative financial instruments (see note 20) — 11 — —
Prepayments and accrued income 302 257 11 15
1,883 1,662 144 578
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
2014
£'000
2013
£'000
2014
£'000
2013
£'000
Balance at 1st July 6 — — —
Impairment losses recognised 9 6 — —
Balance at 30th June 15 6 — —
Ageing of past due but not impaired receivables
Group
2014
£'000
2013
£'000
1–30 days past due 59 —
31–90 days past due — 4
91 days and more — 2
59 6
45
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Notes to the Accounts
Animalcare Annual Report 2014 - Proof 3.indd   45 10/27/2014   12:11:13 PM Notes to the Accounts continued
Cash and cash equivalents
Group Company
2013
£'000
2013
£'000
2014
£'000
2013
£'000
Cash and cash equivalents 3,812 3,745 1,315 1,791
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 to (see note 19) 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 36 days (2013: 32days). No interest has been charged on overdue 
receivables.
19. Other Financial Liabilities
Group Company
2014
£'000
2013
£'000
2014
£'000
2013
£'000
Trade payables 858 983 63 62
Amounts payable to subsidiaries — — 1,570 3,757
Other taxes and social security costs 226 369 40 39
Other creditors 299 288 15 18
Derivative financial instruments (see note 20) 28 — — —
Accruals 195 342 40 146
1,606 1,982 1,728 4,022
The Directors consider that the carrying amount of trade and other payables approximates to their fair value.
Animalcare Group plc Annual Report 2014
46
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Animalcare Annual Report 2014 - Proof 3.indd   46 10/27/2014   12:11:13 PM 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
2014
Trade and other payables 1,606 — — — 1,606
2013
Trade and other payables 1,982 — — — 1,982
Categories and Fair Value of Financial Instruments Carrying value
2014
£'000
2013
£'000
Financial assets
Trade and other receivables (including cash and cash equivalents) 5,393 5,139
Financial liabilities
Trade and other payables (1,606) (1,982)
The fair values of the Group’s financial assets and liabilities are not materially different from their carrying values.
47
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Notes to the Accounts
Animalcare Annual Report 2014 - Proof 3.indd   47 10/27/2014   12:11:13 PM Notes to the Accounts continued
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
2014
£'000
2013
£'000
2014
£'000
2013
£'000
Euro 459 233 51 33
US Dollar 34 142 65 21
Foreign Currency Sensitivity Analysis
At 30
th
 June 2014 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 2014. 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 (37) 45
US Dollar 3 (3)
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 four (2013 — nine) open foreign exchange contracts at 30
th
 June 2014. The values are shown below:
2014
£'000
2013
£'000
Principal value 752 285
Fair value (28) 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.
Animalcare Group plc Annual Report 2014
48
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Animalcare Annual Report 2014 - Proof 3.indd   48 10/27/2014   12:11:13 PM 21. Deferred Income
Deferred income arises from certain services sold by the Group’s subsidiary Animalcare Ltd. In return for a single up-front 
payment, Animalcare Ltd commits to a fixed term contract to provide certain database, pet reunification and other support 
services to customers. There is no contractual restriction on the amount of times the customer makes use of the service. 
At the commencement of the contract it is not possible to determine how many times the customer will make use of the 
services, nor does historical evidence provide indications of any future pattern of use. As such, income is recognised evenly 
over the term of the contract, currently eight years.
Movements in the Group’s deferred income liabilities during the current and prior reporting period are as follows:
2014
£'000
2013
£'000
Balance at the beginning of the period 1,021 1,051
Income deferred to future periods 182 177
Release of income deferred from previous periods (231) (207)
Balance at end of the period 972 1,021
The deferred income liabilities fall due as follows:
2014
£'000
2013
£'000
Within one year 242 231
After one year 730 790
972 1,021
Income recognised during the year is set out below:
2014
£'000
2013
£'000
Income received 195 190
Income deferred to future periods (182) (177)
Release of income deferred from previous periods 231 207
Income recognised in the year 244 220
49
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Notes to the Accounts
Animalcare Annual Report 2014 - Proof 3.indd   49 10/27/2014   12:11:13 PM 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 1st July 2012 (14) (11) (2) 198 171
Charge/(credit) to income 41 (13) (5) (35) (12)
Balance at 30th June 2013 27 (24) (7) 163 159
Charge/(credit) to income 14 (19) — (45) (50)
Balance at 30th June 2014 41 (43) (7) 118 109
As set out in note 10 deferred tax balances have been calculated at an effective rate of 20%, being the substantively 
enacted rate at 30
th
 June 2014.
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 1st July 2012 (21) (8) (2) (31)
Charge/(credit) to income 4 (5) — (1)
Balance at 30th June 2013 (17) (13) (2) (32)
Charge/(credit) to income 5 (12) — (7)
At 30th June 2014 (12) (25) (2) (39)
As set out in note 10 deferred tax balances have been calculated at an effective rate of 20%, being  the substantively 
enacted rate at 30
th
 June 2014.
Animalcare Group plc Annual Report 2014
50
www.animalcaregroup.co.uk
Notes to the Accounts continued
Animalcare Annual Report 2014 - Proof 3.indd   50 10/27/2014   12:11:13 PM 23. Share Capital
2014
No.
2013
No.
Allotted, called up and fully paid ordinary shares of 20p each 20,960,204 20,745,204
2014
£’000
2013
£’000
Allotted, called up and fully paid ordinary shares of 20p each 4,192 4,149
During the year £43,000 (2013: £5,000) of ordinary shares were issued for proceeds of £242,125 (2013: £24,375) resulting 
in a share premium of £199,125 (2013: £19,375).
24. Operating Lease Arrangements
The Group as lessee
2014
£'000
2013
£'000
Lease payments under operating leases recognised as an expense in the year 187 211
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:
2014
£'000
2013
£'000
Within one year 162 165
In the second to fifth years inclusive 252 334
After five years 110 143
524 642
Operating lease payments principally represent rentals payable by the Group for its office and warehouse properties 
and motor vehicles.
51
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Notes to the Accounts
Animalcare Annual Report 2014 - Proof 3.indd   51 10/27/2014   12:11:14 PM 25. Share-based Payments
During the year the Group operated the Animalcare Group plc Executive Share Option Scheme, the Save As You Earn 
(SAYE) Share Option Scheme and the new Long Term Incentive Plan as described below:
Animalcare Group plc Executive Share Option Scheme
Under this scheme, options may be granted to certain Executives and senior employees of the Group to subscribe for new 
shares in the Company at a fixed price equal to the market value at the time of grant. The options are exercisable three 
years after the date of grant. Once vested, options must be exercised within six years of the date of grant. The exercise of 
these options is not subject to any performance criteria.
SAYE Option Scheme 
This scheme is open to all UK employees to encourage share ownership. Share options are granted at an option price fixed 
at a 20% discount to the market value at the start of the savings period. The SAYE options vest and are exercisable three 
years after the date of grant and must ordinarily be exercised within six months of the completion of the relevant savings 
period.
Details of the movement in all share option schemes during the year are as follows:
EMI Unapproved
Unapproved
Options
Price
£ Options
Price
£ Options
Price
£
Outstanding at beginning of year 676,600 1.392 138,845 1.084 308,400 1.292
Granted during the year 105,000 1.524 — — — —
Lapsed during the year (106,600) 1.575 (26,673) — (28,400) 1.618
Exercised during the year (115,000) 1.258 — — (100,000) 0.975
Open at 30th June 2014 560,000 1.413 112,172 1.084 180,000 1.408
Exercisable at the end of the year 5,000 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 135p 144p 121p
Weighted average exercise price 137p 115p 125p
Expected volatility 50% 54% 45%
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 three 
years. The expected lives used in the model were estimated based on management’s best estimate for the effects of non-
transferability, exercise restrictions, and behavioural considerations.
The aggregate estimated fair value of the options granted during the year was £nil (2013: £nil).
The Group recognised total expenses of £152,000 (2013 : £149,000), £152,000 (2013: £110,000) within administrative 
expenses and £nil (2013 : £39,000) within exceptional and other items as disclosed in note 4.
Animalcare Group plc Annual Report 2014
52
www.animalcaregroup.co.uk
Notes to the Accounts continued
Animalcare Annual Report 2014 - Proof 3.indd   52 10/27/2014   12:11:14 PM New Long Term Incentive Plan
On 20
th
 June 2014, the Board approved the Company’s new senior executive Long Term Incentive Plan (the “Plan”). On  
27
th
 June 2014, Iain Menneer, Chief Executive Officer, and Chris Brewster, Chief Financial Officer, subscribed for growth 
shares in the capital of Animalcare Ltd, a subsidiary of the Company, under the Plan as follows:
• Iain Menneer – 31,955 A Ordinary Shares of £1.00 each (“A Shares”) for a total cash subscription of £31,955, 
representing 5.2% of Animalcare Ltd’s issued share capital; and
• Chris Brewster – 19,173 A Shares, representing 3% of Animalcare Ltd’s issued share capital and 11,800 B Ordinary 
Shares of £1.00 each (“B Shares”), representing a further 2% of Animalcare Ltd’s issued share capital, for a total cash 
subscription of £30,973.
Further details of the Plan are provided in note 7.
The charge for the year to the income statement in respect of the Plan is £nil.  
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:
2014
Animalcare 
Ltd
£’000
Total
£’000
Management Charges levied 240 240
2013
Animalcare 
Ltd
£’000
Total
£’000
Management Charges levied 240 240
Remuneration of key management personnel
The remuneration of the Directors, who are the key management personnel of the Group, is set out in aggregate for each 
of the categories specified in IAS 24 “Related Party Disclosures”. Further information about the remuneration of Directors is 
provided in note 7.
The Directors’ interests in the shares of the Company are contained in note 7.
53
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Notes to the Accounts
Animalcare Annual Report 2014 - Proof 3.indd   53 10/27/2014   12:11:14 PM Five Year Summary
 2014 2013 2012 2011 2010
Consolidated Statement of Comprehensive Income
Revenue 12,881 12,118 10,856 11,825 11,223
Underlying EBITDA 3,162 2,916 2,501 3,267 2,774
Underlying operating profit 2,802 2,684 2,294 3,053 2,597
Profit before tax 2,672 2,330 2,106 2,885 2,483
Underlying earnings per share
 basic 10.8p 10.5p 9.3p 11.3p 8.7p
 diluted 10.7p 10.4p 9.2p 11.2p 8.5p
Dividend per share 5.3p 5.3p 4.5p 4.0p 3.0p
Balance Sheets
Non-current assets 14410 14661 14522 14578 16285
Current assets 8115 6825 5022 4206 6797
Current liabilities (2233) (2,575) (1,692) (2068) (4341)
Non-current liabilities (839) (949) (1015) (927) (4660)
Shareholders' funds 19453 17962 16837 15789 14081
Cash Flow Statements
Net cash flow from operating activities 1066 2831 2123 2145 1936
Net cash used in investing activities (201) (483) (268) 2559 (576)
Net cash used in financing activities (798) (908) (729) (5089) (1328)
Net increase/(decrease) in cash and cash equivalents 67 1440 1126 (385) 32
Animalcare Group plc Annual Report 2014
54
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Animalcare Annual Report 2014 - Proof 3.indd   54 10/27/2014   12:11:14 PM Directors J S Lambert
Lord Downshire
I D Menneer
C J Brewster
R B Harding
Secretary C J Brewster
Company Number 1058015
Registered Office Unit 7, 10 Great North Way
York Business park
Nether Poppleton
York, YO26 6RB
Auditors KPMG LLP
1 The Embankment
Neville Street
Leeds
LS1 4DW
Bankers Barclays Bank PLC
PO Box 190
1 Park Row
Leeds
LS1 5WU
Solicitors Langleys
Queens House
Micklegate
York
YO1 6WG
Nominated Advisor and Broker Panmure Gordon & Co
One New Change
London
EC4M 9AF
Registrars Capita Asset Services
34 Beckenham Road
Beckenham
Kent
BR3 4TU
Advisers
55
Stock Code: ANCR
Our Performance Our Governance Our Financials Our Business
Our Financials / Five Year Summary / Advisers
Animalcare Annual Report 2014 - Proof 3.indd   55 10/27/2014   12:11:14 PM Shareholder Notes
Animalcare Group plc Annual Report 2014
56
www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   56 10/27/2014   12:11:14 PM Stock Code: ANCR
Animalcare Annual Report 2014 - Proof 3.indd   4 10/27/2014   12:11:14 PM Address
10 Great North Way
York Business Park, York
YO26 6RB
Contact
T: +44 (0) 1904 487687
F: +44 (0) 1904 487611
E: Investors@animalcare.co.uk
W: www.animalcaregroup.co.uk
Animalcare Annual Report 2014 - Proof 3.indd   1 10/27/2014   12:11:14 PM