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veterinary products for companion animals
annual report
for the year ended 30
th 
june 2013
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see further content for the annual report and 
accounts 2013 online at 
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view more content within this report
welcome to animalcare group plc
animalcare group plc is focused on growing its 
veterinary business
animalcare is a leading supplier of generic veterinary 
medicines and animal identification products to 
companion animal veterinary markets
it develops and sells goods and services to veterinary professionals principally 
for use in companion animals operating directly in the uk and through 
distribution and development partners in key markets in western europe
its principal product lines are licensed veterinary medicines and companion 
animal identification products and services
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highlights
contents
operational highlights
our business
highlights 1
our business and strategy 2
chairman’s statement 6
chief executive’s review 7
financial review 11
our governance
board of directors 12
directors’ report 14
statement of directors’ 
responsibilities 
17
our financials
independent auditor’s report 18
consolidated statement of 
comprehensive income
19
statements of changes in 
shareholders’ equity
20
balance sheets 21
cash flow statements 22
notes to the accounts 23
officers and professional 
advisors
45
financial highlights
read more about our performance on 
page 7
view our interactive highlights at
animalcareannualreport2013com
revenue
– continuing operations
£m 
underlying basic eps
– continuing operations
pence 
underlying operating profit
– continuing operations
£m 
116
at £121m
129
at 105p
170
at £27m
97
112
118
109
121
09 10 11 12 13
72
112
118
93
105
09 10 11 12 13
18
26
31
23
27
09 10 11 12 13
 ● strong revenue growth from licensed veterinary medicines against a flat uk companion 
animal pharmaceuticals market
 ● focus on companion animal identification has stabilised the decline in sales of 
microchips associated services derived from microchip database growing
 ● three new products launched in the year and a fourth gained its marketing authorisation 
during the year
 ● relocation to new premises with better facilities and increased capacity and with no 
disruption to trading
 ● executive and senior management changes successfully completed according to plan
 ● continued strong cash generation with year end cash of £37m up from £23m
  underlying measures are before the effect of 
exceptional costs and other items these are 
analysed in note 4
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animalcare group plc annual report 2013
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our business and strategy
group at a glance
91
uk
npd 
manufacturing
across eu 
geographic
growth opportunities
9 
eu 
licensed veterinary medicines
companion animal identification
animal welfare products
revenue profile
594
55 2012
48 2011
185
215 2012
274 2011
220
235 2012
237 2011
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animalcare group plc annual report 2013
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our business and strategy continued
business model
value capture elements
marketing sales and distribution
products sold to veterinary customers in uk and to eu distributor network
options
undifferentiated
generics
 
“almost 
 identical”
differentiated
generics 
 
“same action
 improved 
  acceptance” 
enhanced 
generics 
“pharmaceutically
 enhanced” 
 
pool of pioneer 
veterinary
 pharmaceuticals
 
formulation and manufacturing development
licence application contract manufacture
management of eu partner network
development projects and
product distribution in uk
identification and selection process
based on value generation opportunities
animal 
welfare
products
microchips 
and associated
services
developed
and supplied 
value
value
value
 ● robust process of identification of generic pharmaceuticals
 ● core competence in pharmaceutical licence applications
 ● broad experience of pharmaceutical formulation and contract manufacturers
 ● strong eu partner network for pharmaceuticals codevelopment projects and quid pro quo distribution
 ● extensive reach of sales and marketing into uk veterinary customer base
this is the animalcare group plc business model which seeks to outline how 
we create deliver and capture shareholder value
primary markets supply of goods and services to veterinary professionals
animal types primarily companion animals
products and services licensed veterinary medicines companion animal identification and animal welfare products
geographic reach currently 91 revenue in the uk 9 in eu with expansion plans further into eu
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investment case
over the last 10 years the strategy to license and sell generic veterinary medicines has delivered significant growth 
demonstrated by the increasing dominance of the product group in 2013 versus 2003 59 of £121m revenue versus 
44 of £68m respectively
our business and strategy continued
investment case  strategy
2003 2013
licensed veterinary medicines £30m 44 £72m 59
total £68m £121m
where 5 or 10 years ago animalcare 
was one of only a few companies 
pursuing a generics strategy that 
was protected from competition by 
several barriers to entry this is no 
longer the case with a proliferation of 
companies across northern europe 
that have gained this knowhow and 
capability
in order to grow the profitability of its 
licensed veterinary medicines group 
against new entrants to the market 
increasng competition and greater 
pressure on margins animalcare 
is evolving its strategy to develop 
differentiated products and services 
this will be achieved through 
implementation of our new product 
development strategy project 
sustain 
through project sustain we will 
select wellestablished veterinary 
medicines and reformulate them 
to create a new range of enhanced 
generics this will create the 
opportunity to deliver protectable 
products with increased margins 
and greater market share
we will utilise our strong cash flow to 
invest in sustain projects the more 
complex development and regulatory 
requirements will result in a time to 
market of 4 to 5 years compared with 
an undifferentiated generic typically 
taking 3 years we will manage the 
development risk by focusing on 
enhanced generic medicines based 
on known active ingredients or 
common delivery platforms
the table opposite details the 
product development pipeline 
showing both differentiated and 
project sustain enhanced generic 
medicines this is an evolving 
programme as products are 
commercialised more are added into 
development
a dog being scanned for a microchip
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animalcare group plc annual report 2013
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product development pipeline
project sector expected launch target markets years to maturity
differentiated and 
undifferentiated generics
stone 1 livestock q3 13
†
limited eu 5
stone 2 companion animal q2 14 limited eu 3
poppy ii companion animal q2 13
†
selected eu 2
high companion animal q4 15 selected eu 3
pavot companion animal q1 16 limited eu 2
amigo companion animal q2 16 selected eu 3
trowel companion animal q2 16 limited eu 2
raleigh companion animal q2 16 eu and others 3
beat companion animal q2 16 eu and others 3
isle companion animal q3 16 eu and others 3
sustain projects – 
enhanced generics
archipelago companion animal q2 17 eu and others 2
team companion animal q4 17 eu and others 2
cardinal companion animal and 
livestock
q2 18 eu and others —
 all dates are financial year 
†
 launched as planned
at maturity uk sales are expected to be between £5 to £7 million per annum
strategy
our strategy for 2013–14 is to
 ● continue our development of differentiated generic medicines at the current frequency
 ● focus on project sustain to develop enhanced generic medicines
 ● increase the sales of our current products outside the uk
 ● through existing distribution in current markets
 ● by adding geographic cover with new distribution in new markets
 ● selectively strengthen uk companion animal identification range of goods and services
 ● continue to rationalise noncore product groups
our business and strategy continued
what is a generic medicine
in order to obtain a marketing authorisation for a licensed generic medicine it has to be “essentially similar” to the originator product 
in particular pharmaceutical performance must be almost identical ie not substantially better or worse than the originator product
animalcare classifies generic veterinary medicines into three broad categories
 ● undifferentiated generics — veterinary medicines whose pharmaceutical action is the same as the originator product and which 
are almost identical in all aspects packaging composition dosage size to the originator product
 ● differentiated generics — veterinary medicines whose pharmaceutical action is the same as the originator product but where 
one or more aspects are modified to improved its acceptance by vets owners or pets for example packaging flavouring coating 
tablet size etc
 ● enhanced generics — veterinary medicines developed using wellestablished veterinary medicines but which have been 
formulated in such a way that their pharmaceutical performance is enhanced
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chairman’s statement
introduction
i am pleased to announce that 
during the past financial year 
animalcare has returned to growth 
and is now in a much stronger 
position to build on this in both the 
current and subsequent years 
animalcare is made up of three 
product groups licensed veterinary 
medicines companion animal 
identification and animal welfare 
products that are all sold mainly 
through veterinary practices the 
licensed veterinary medicines 
group which continues to be the 
main focus of our investment 
has grown strongly in the current 
year with sales up by 206 the 
management has stabilised the 
companion animal identification 
group after a difficult year in the 
previous period
financial trading
group revenues during the financial 
year increased by 116 from 
£109m to a record £121m this 
is in the context of latest market 
statistics which indicate that sales of 
veterinary medicines in the uk have 
been flat this performance has 
resulted in an increase in underlying 
operating profits preexceptional and 
other items from £23m to £27m a 
full 170 basic underlying earnings 
per share increased to 105p from 
93p the group continued to be 
strongly cash generative during 
the year with the cash position 
increasing from £23m to £37m at 
the yearend which demonstrates 
the strength of the business model 
additional sales coming from the 
licensed veterinary medicine group 
enabled us to improve margins from 
54 to 56 the main driver of the 
increased licensed veterinary sales 
was a replacement supply of ‘single
dose’ buprecare ampoules and the 
launch of two new licensed generic 
veterinary medicines
dividend
with the increase in cash generation 
during the year and the return 
to profitable growth your board 
proposes to increase the final 
dividend to 38 pence per share 
with this increase of 08 pence per 
share and the maintained first half 
dividend of 15 pence per share this 
gives a total dividend for the year 
of 53 pence per share an increase 
of 178
the board
during the financial year your 
board announced that stephen 
wildridge would step down as 
group ceo to be replaced by 
dr iain menneer formerly managing 
director of animalcare ltd and 
that stephen would remain on the 
board as director of strategy and 
business development until the 
end of october this has allowed 
a smooth transition for iain into the 
role of ceo and the appointment of 
a senior management team to head 
up sales marketing and product 
development the board wishes to 
thank stephen for all his endeavours 
in building your business over the 
past ten years into one of the leading 
uk animal health companies iain is 
ideally qualified to take on the ceo 
role with experience in a number 
of positions within the business 
over the past ten years including 
marketing sales and business 
development
prospects
your board is pleased with the 
return to growth of your business 
over the past 12 months and 
believes it is in a strong position 
to deliver its stated strategy your 
board is also encouraged by trading 
at the beginning of the current 
financial year
james lambert
chairman
james lambert chairman
your board is pleased with the return 
to growth of the business over the past 
12 months and believes it is in a strong 
position to deliver its stated strategy
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chief executive’s review
introduction
animalcare group plc has delivered 
a strong performance for the year 
to 30
th 
june 2013 this noteworthy 
result has been achieved during 
a year of transition transition that 
has placed animalcare in a strong 
position to grow and succeed into 
the next decade executive and 
senior management changes have 
been completed alongside a long
anticipated change of premises 
both of which give us capacity for 
the future
in addition the group is firmly in the 
transition to a new strategy to bring 
enhanced generic products into 
the development pipeline which will 
deliver protectable and sustainable 
commercial benefits over the 
longterm
iain meneer chief executive officer
the group is firmly in the transition to a new 
strategy to bring enhanced generic products 
into the development pipeline which 
will deliver protectable and sustainable 
commercial benefits over the longterm
business overview
the uk companion animal 
medicines market decreased by 
002 in the year to december 
2012 making our performance all 
the more significant reference 
national office of animal health 
wwwnoahcouk output from the 
current inhouse and eu partner 
pipelines has continued to drive 
growth with three launches in the 
period of which the principal launch 
was the reintroduction of buprecare 
‘singledose’ ampoules
revenues derived from services 
marketed to pet owners on our 
microchip pet database anibase 
continued to rise in the period 
microchip sales volumes were 
marginally ahead of management 
expectations despite competitive 
pressure the animal welfare group 
continued to perform steadily in line 
with management expectations
animalcare launched three products 
in 2013 vitofyllin buprecare 
ampoules and marbocare injection 
a fourth product received its 
marketing authorisation in the 
last month of the financial year 
and will be launched in h1 of the 
current year 
licensed veterinary medicines
the importance of the contribution 
from new product launches is clear 
of less obvious impact is the critical 
mass that has been achieved by 
launching such a range of new 
products animalcare now has a 
much more comprehensive range of 
companion animal pharmaceuticals 
in more therapeutic areas than 
10 years ago giving its uk sales 
team greater significance in uk 
veterinary practices
since the launch of benazecare 
in 2006 the first licensed generic 
veterinary pharmaceutical in the 
recent strategy animalcare has 
launched 17 further new products 
that have either been products of 
our highly successful new product 
development pipeline collaboration 
projects with our eu partners 
or straightforward distribution 
opportunities from our eu partners
12 months 
to
 30 june 
2013
 £000
12 months 
to
 30 june 
2012
 £000  change
licensed veterinary medicines 7200 5972 206
companion animal identification 2244 2338 40
animal welfare products 2674 2546 50
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chief executive’s review continued
vitofyllin project quattro the first 
of the three products to be launched 
in the period is a treatment for 
the symptoms of old age in dogs 
good sales have been achieved 
through the year exceeding our 
expectations in this £2m market 
whilst animalcare is looking to grow 
its market share we also believe 
that there is potential to grow this 
market as the symptoms are often 
overlooked by owners and veterinary 
professionals alike
a new more robust manufacturer 
has been found for buprecare 
ampoules and in december the 
product was relaunched on schedule 
following a successful registration 
process revenues from sales in the 
second half have been strong and in 
line with our expectations buprecare 
ampoules complement the multi
dose presentation that was launched 
in the second half of last year ended 
30
th 
june 2012 the two buprecare 
products generated combined 
revenues in the uk of £09m in the 
year ended 30
th 
june 2013
the third launch in the year was 
marbocare injection project stone 
1 a codevelopement with one of 
our eu partners it is used in the 
treatment of respiratory infections in 
cattle and pigs whilst not significant 
target species for animalcare this 
successful registration will allow us 
to develop this active ingredient into 
our core species market
companion animal identification
continuing sales and marketing 
efforts which have significantly 
slowed the decline in microchips 
sales to 6 in the period are set 
to maintain a positive effect over 
35 million owners have their 
pets registered on our microchip 
database anibase improvements 
in the way we are able to market 
associated goods and services to 
these pet owners has allowed us to 
increase revenues and at improved 
margins as efficiencies have 
been achieved in operational and 
marketing activities
animal welfare products
the animal welfare product group 
is made up of a variety of product 
subgroups half of this group’s 
revenue is generated from infusion 
accessories that complement the 
sale of our intravenous infusion 
fluids the infusion accessories 
subgroup grew by 3 in the year to 
30
th 
june 2013 the remaining half 
is made up of unconnected legacy 
products that are increasingly difficult 
to differentiate from their competitor 
products they also continue to 
require operational support most 
of these products are in decline 
and it is our strategy to selectively 
withdraw from these markets during 
the year the first of these products 
was discontinued from sale
vitofyllin
database operative anibase
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operational overview
animalcare had outgrown its leased 
warehouse and offices some time 
ago in march after a programme 
of refurbishment the business was 
moved to the new premises still in 
the york area with no disruption 
to trading the new warehouse 
operation has approximately 70 
more capacity than the old facility 
allowing for the planned business 
growth to 2020 and beyond 
the office move has allowed it 
infrastructure to be upgraded 
resulting in a much more capable 
and robust system overall our 
operations are now in good shape 
for the years ahead
in january the company announced 
that stephen wildridge would leave 
the business in october 2013 in 
the intervening period he assumed 
the role of director of strategy and 
business development in august 
2013 karolyn tapper joined the 
business as director of business 
development karolyn has 19 years’ 
experience working in a global 
contract manufacturing company 
with experience in pharmaceutical 
formulation project management 
and business development there 
has been a thorough handover 
to ensure the momentum of new 
product development is maintained
also in august torben orskov was 
promoted to director of technical 
and regulatory affairs torben is 
a qualified veterinary surgeon with 
10 years’ experience in companion 
and large animal practice before he 
joined animalcare in 2006 torben 
has been heavily involved in the 
technical and regulatory aspects of 
the product development pipeline
both appointments reflect our 
continued emphasis on the new 
product development strategy and 
more specifically the increasing 
importance of project sustain
future developments
animalcare will continue to launch 
undifferentiated generic licensed 
veterinary medicines from its 
inhouse development pipeline 
codeveloped projects with our 
european partners or simple 
distribution products from our 
existing partners in europe
in july 2013 we launched 
an enhanced presentation of 
phenoleptil a product used in the 
prevention of epileptic seizures in 
dogs phenoleptil was originally 
launched in june 2011 the 
enhanced presentation makes 
accurate dosing of patients easier 
and will allow us to gain faster 
market penetration as it has practical 
prescribing advantages for the 
veterinary surgeon
two further products one from our 
own development pipeline and one 
a distribution product are in the final 
commercialisation planning stages 
for launch in q2 of this year both 
products are for use in companion 
animal medicine
depending on the time required to 
fully develop the market for the three 
products outlined above we may also 
launch a fourth product in h2
during this financial year we will 
be upgrading the software tools 
available to our sales team we 
have identified a partner who will be 
able to enhance the management 
information we can derive from 
our sales data as well as reducing 
the administrative work by the 
wider team
we also expect to see significant 
progress on project sustain that 
will crystalise the work already 
undertaken we forecast the first 
products to launch in 201718
in addition we expect to take the 
first steps in this period to expand 
the geographic footprint of territories 
in which animalcare distributes 
outside the uk
a dog being implanted with a microchip
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our business our performance
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outlook
in february the uk parliament 
announced that it will be 
compulsory for all dogs in england 
to be microchipped by april 2016 
furthermore the welsh assembly 
has now announced that it will 
introduce similar legislation for 
implementation in march 2015 
whilst there will be some undoubted 
commercial opportunities as a 
result of this legislation in the short 
to mediumterm it is not yet clear 
how the initial implementation will 
impact animalcare however as 
a company selling microchips and 
also administering the anibase pet 
database of over 35million pets and 
their owners animalcare remains in 
a strong position in this market for 
the mediumterm after a potential 
initial disruptive period
we have commented in previous 
reports that competition is strong 
in the licensed veterinary 
medicines market however we 
have consistently outperformed 
the uk market and we believe this 
will continue
over the past seven years since 
the launch of the first product 
from the animalcare new product 
pipeline the group has achieved 
increased revenues and profitability 
however with this upside comes 
the requirement to invest further 
in the routine maintenance 
of the associated marketing 
authorisations the number of 
marketing authorisation licences that 
animalcare owns and therefore must 
maintain was 14 in 2003 rising to 
136 in 2013
having delivered a successful 
undifferentiated and differentiated 
generics strategy the company is 
moving into a period of investment 
for the future we intend to invest 
more in research and development 
particularly in enhanced generics 
than we have to date in this context 
we expect limited growth in the 
coming 12 to 36 months however 
this will put the foundations in 
place to deliver the next phase in 
our strategy
as these projects are 
commercialised from 2017 onwards 
we believe the rewards will be 
significant and ensure the future 
growth and success of the group
iain menneer
chief executive officer
aqupharm intravenous fluids in use
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the group has made good progress 
during the financial year achieving 
a 170 increase in underlying 
operating profit to £27m 2012 — 
£23m and a £06m increase in 
cash generated by operations to 
£31m 2012 — £25m we continue 
to have a robust balance sheet to 
support the strategy and invest in our 
longterm future 
revenue and gross profit
group revenues increased by 116 
to £121m 2012 — £109m the 
key driver of which was the strong 
growth achieved in our licensed 
veterinary medicines product group 
for further analysis of the group’s 
revenue performance please refer to 
our chief executive’s review
the gross profit margin for 2013 was 
56 representing a yearonyear 
increase of 2 this was achieved 
through a combination of successful 
new product launches and a shift 
towards a larger proportion of 
group sales being generated by 
our licensed veterinary medicines 
product group
operating profit
underlying operating profit 
increased by 170 to £27m 2012 
— £23m reflecting the improved 
trading performance offset in part by 
an increase in administrative costs 
of £05m the increase primarily 
resulted from additional staff costs of 
£03m reflecting the strengthening 
of the senior management team 
and higher performancerelated 
pay together with a £01m increase 
in share based payment charges 
notwithstanding the increase the 
group continues to maintain a firm 
control on costs
during the year we incurred 
exceptional costs of £03m 
2012 — £01m largely as a result 
of executive board changes and 
oneoff head office relocation costs 
further details are provided in  
note 4
reflecting all of the above group 
operating profit was up 89 to 
£23m 2012 — £21m
taxation
the tax charge for the year of £04m 
2012 — £04m takes into account 
prior year research and development 
tax credits totalling £02m hence the 
effective tax rate of 191 2012 — 
179 is again below the headline 
rate of corporation tax
earnings per share “eps”
basic underlying eps increased 
by 129 to 105 pence 2012 — 
93 pence the statutory basic 
eps increase was lower at 83 
to 91 pence 2012 — 84 pence 
principally due to the higher 
exceptional items in the year
dividend
subject to shareholder approval 
at the annual general meeting 
on 5
th 
november 2013 the board 
proposes paying a final dividend 
of 38 pence per share on 
14
th 
november 2013 to shareholders 
on the register on 4
th 
october 2013 
this would make a total dividend 
of 53 pence per share for 2013 
an increase of 178 reflecting 
the growth in earnings and cash 
generated from operations the 
total dividend for the year is covered 
20 times by underlying earnings 
2012 — 21 times
cash flow
cash flows generated by operations 
were £31m 2012 — £25m 
£02m of this increase is attributable 
to favourable working capital 
movements which reversed in the 
first week of 2014
net income taxes paid at £03m 
2012 — £04m include a £02m 
cash benefit in relation to prior 
year research and development 
tax credits
capital expenditure increased to 
£05m 2012 — £03m driven 
primarily by the group’s relocation 
to its newly refurbished head office 
and warehouse which were occupied 
from march 2013 expenditure on 
new product development during 
2012 at £01m 2012 — £02m 
was lower than anticipated due to 
delays in certain project schedules 
however in line with our strategy we 
plan to accelerate capital spending in 
2014 and during the last 6 months 
the board has approved 3 new 
development projects
net cash increased by £14m to 
£37m 2012 — £23m this strong 
cash flow is enabling the group to 
fund its new product development 
pipeline from internal resources
chris brewster
chief financial officer
  underlying measures are before the 
effect of exceptional costs and other 
items these are disclosed in note 4 to 
the financial statements
chris brewster chief financial officer
financial review
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chris brewster
chief financial officer and 
company secretary
age 38
board committee membership 
none
experience 
chris was appointed chief financial officer 
in june 2012 a chartered accountant by 
profession chris worked at kpmg for 10 
years before assuming the role of group 
accounting manager at findus group 
during 2010
lord downshire
nonexecutive director
age 54
board committee membership 
audit committee and remuneration 
committee
experience 
he joined the board of animalcare in 
2008 when it was acquired by ritchey 
plc for whom he acted as a director since 
1998 nicholas is a qualified accountant 
who has worked in corporate finance 
and venture capital plus holding non
executive directorships in a diverse range 
of businesses
james lambert
nonexecutive chairman
age 55
board committee membership 
nomination committee
experience 
james was appointed chairman in 2008 
when it was acquired by ritchey plc for 
whom he was chairman since 2005 and 
nonexecutive director since 2003 james 
started at richmond foods in 1998 leading 
a series of acquisitions to make richmond 
the largest ice cream manufacturer by 
volume in the uk james is now chairman 
of r  r ice cream 
board of directors
1
1
2
2
3
3
4
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our business
4
4
5
5
6
6
iain menneer
chief executive officer
age 43
board committee membership 
secretary remuneration committee from 
january 2013 secretary nomination 
committee from january 2013
experience 
iain joined animalcare ltd in 2003 
working in sales marketing and 
business development roles including 
an instrumental role in the new product 
development pipeline iain was promoted to 
the board as director of marketing in july 
2011 iain was appointed managing director 
of animalcare limited in march 2012 and 
subsequently chief executive officer in 
january 2013
ray harding
nonexecutive director
age 63
board committee membership 
remuneration committee chair 
nomination committee chair
experience 
ray harding was appointed to the board 
in 2011 he has worked in the veterinary 
pharmaceutical industry since 1979 in many 
technical and product related roles for 
several international ‘blue chip’ companies 
he established cyton biosciences ltd 
in 1997 to provide specialist services in 
new product development and registration 
for bioscience industries in europe ray 
left in 2012 and is now an independent 
consultant
stephen wildridge
director of strategy and 
business development
age 57
board committee membership 
secretary remuneration committee until 
january 2013
experience 
stephen wildridge joined animalcare ltd 
as managing director in april 2003 and 
joined the board of animalcare group plc 
on its formation in january 2008 he was 
appointed chief executive officer of the 
group in april 2010 and stepped down 
in january 2013 to become director of 
strategy and business development he 
will resign from the group in october 2013
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the directors present their 
annual report on the affairs of the 
group together with the financial 
statements and auditor’s report for 
the year ended 30
th 
june 2013
principal activities
the principal activity of the group 
during the year was the sales and 
distribution of veterinary medicines 
identification and other products for 
companion animals 
business review and future 
developments
a review of the business and 
future developments is provided in 
the chairman’s statement chief 
executive’s review and financial 
review
research and development
our new product development 
programme is key to the future 
success of the group and we are 
committed to the development of 
new and innovative products to meet 
the needs of our customers 
further information in relation to 
product development can be found 
in the our business and strategy 
section of this report during the 
year to 30
th 
june 2013 the group 
incurred research and development 
expenses of £138000 2012 — 
£89000 and a further £102000 
2012 — £169000 was capitalised 
as development costs
dividends
subject to shareholder approval 
at the annual general meeting 
on 5
th 
november 2013 the board 
proposes paying a final dividend 
of 38 pence per share on 
14
th 
november 2013 to shareholders 
on the register on 4
th 
october 2013 
this would make a total dividend of 
53 pence per share for 2013
capital structure
the company’s issued share capital 
as at 30
th 
june 2013 was 20745204 
ordinary shares of 20 pence each 
each credited as fully paid
directors
the following directors held office 
during the year ended 30
th 
june 2013 
and subsequently
c j brewster
lord downshire
r b harding
j s lambert
i d menneer
s m wildridge
details of directors’ share options 
and longterm incentive plans are 
provided in note 7 to the financial 
statements
the company maintains directors’ 
and officers’ liability insurance for 
the benefit of its directors which 
was in place throughout the year 
ended 30
th 
june 2013 and remains in 
place at the date of this report
directors’ report
principal risks and uncertainties
risk description and mitigation
failure of new product 
development projects
a key element of the group’s strategy is to expand its portfolio of veterinary medicines the success of 
which depends on these products meeting the required regulatory standards and achieving the necessary 
marketing authorisations rejection of applications or delays in the regulatory process could have an 
important impact on the group’s results also there can be no guarantee of the commercial success of 
these products following their launch the risks of failure rejection or delay are mitigated or reduced 
by the careful selection of development strategies that although they may increase initial cost or time 
of development reduce the likelihood of complete unexpected failure of a project at the same time the 
overall risk of any one project failure having a major influence on the performance of the business is 
reduced by having a product development pipeline that has numerous projects within it at various stages of 
development
reliance on a small number 
of key customers
the group derives a substantial proportion of its revenue from a number of key customers in the event 
that these relationships are lost the effect on the group’s revenue could be significant in the uk however 
such effect is likely to be temporary as the supply chain would rapidly adjust to take up the slack brought 
about by any catastrophic failure equally as our business develops its scope into new markets the key 
customer base continues to grow
failure of a major supplier or 
contract manufacturer
the group purchases goods for resale under supply and distribution agreements with a number of 
key suppliers and contract manufacturers failure of supply under these arrangements could result in 
significant loss of group revenue dual sourcing is implemented where practicable for key elements of the 
range and where that is not possible different parts of the range are sourced from different suppliers our 
increased warehouse capacity now allows us the ability to maintain contingency stocks where deemed 
appropriate
loss of key employees the group has a small senior executive and management team whose skills knowledge and experience 
are key to the success of the groups performance succession planning is given consideration by the 
board and remuneration policies are designed to attract retain and reward key employees with ability and 
experience to execute the groups strategy we have recently implemented a single performance appraisal 
process to help align executive remuneration with individual performance
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our business
creditor payment policy
we endeavour to maintain strong 
trading relationships with our 
suppliers terms of payment are 
agreed with suppliers in advance 
and it is the group’s policy to settle 
its liabilities in accordance with 
these terms the number of days 
purchases included in trade creditors 
at 30
th 
june 2013 was 61 days 
2012 — 50 days
corporate governance
the directors support the underlying 
principles of the combined code 
not withstanding that the company 
is not required to comply with all 
of the code’s recommendations 
the board recognises its overall 
responsibility for the group’s 
systems of internal control and their 
effective operation and it has sought 
to comply with those provisions of 
the code judged appropriate for 
the current size and nature of the 
group being the establishment of 
an audit committee a remuneration 
committee and a nominations 
committee
formally constituted audit 
remuneration and nominations 
committees with membership 
comprising two of the company’s 
three nonexecutive directors 
were established on the group’s 
admission to aim and are active 
in the conduct of internal financial 
control executive performance 
and remuneration and board 
appointments 
charitable and political 
donations
during the year the group 
made charitable donations of 
£50 2012 — £166 no political 
donations were made during the 
year 2012 — £nil
employees
applications for employment by 
disabled persons are given full and 
fair consideration when existing 
employees become disabled every 
effort is made to provide continuing 
employment wherever possible
the directors recognise the 
importance of good communications 
with employees and continue to 
consult and inform them on matters 
affecting them and the performance 
of the group employees are 
provided with financial incentives 
related to the performance of 
the group in the form of annual 
bonuses and the opportunity to 
participate in approved sharesave 
schemes during the financial year 
the company granted options under 
the animalcare group plc savings 
related share option scheme 
saye to all employees
substantial shareholdings
on 13
th 
september 2013 the 
company had been notified in 
accordance with the disclosure 
rules and transparency rules of 
the following interests exceeding the 
3 notification threshold
name of holder
no of
 ordinary 
shares

 holding
investec wealth management limited including the beneficial shareholding of  
s f riddell of 927000 shares 45 3035239 146
brewin dolphin including the shareholding of j s lambert of 1413691 shares 
68 2169417 105
liontrust asset management 2059251 99
octopus investments 1670216 81
lord downshire 1420029 69
unicorn asset management 1250500 60
hargreave hale 1219997 59
allianz global investors kag 1068000 52
n r sale 613400 30
 s f riddell’s shareholding includes a nonbeneficial interest in 565500 ordinary shares
 lord downshire’s interest includes a nonbeneficial interest in 310446 ordinary shares
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directors’ report continued
going concern
the principal risks and uncertainties 
facing the group are set out on 
page 14
for the purposes of their 
assessment of the appropriateness 
of the preparation of the group’s 
accounts on a going concern basis 
the directors have considered the 
current cash position and forecasts 
of future trading including working 
capital and investment requirements
during the year the group met its 
daytoday general corporate and 
working capital requirements through 
existing cash resources at 30
th 
june 
2013 the group had cash on hand 
of £375 million 30
th 
june 2012 — 
£231 million
overall the directors believe the 
group is well placed to manage its 
business risks successfully despite 
the current uncertain economic 
outlook the group’s forecasts 
and projections taking account of 
reasonable possible changes in 
trading performance show that the 
group should have sufficient cash 
resources to meet its requirements 
for at least the next 12 months 
accordingly the adoption of the 
going concern basis in preparing 
the financial statements remains 
appropriate
auditors
each of the persons who is a 
director at the date of this annual 
report confirms that
 ● so far as the director is 
aware there is no relevant 
audit information of which the 
company’s auditors are unaware 
and
 ● the director has taken all the 
steps that he ought to have taken 
as a director in order to make 
himself aware of any relevant 
audit information and to establish 
that the company’s auditors are 
aware of that information
this confirmation is given and should 
be interpreted in accordance with the 
provisions of s418 of the companies 
act 2006
our auditors kpmg audit plc 
have instigated an orderly wind 
down of their business the board 
has decided to put kpmg llp 
forward to be appointed as auditors 
and a resolution concerning their 
appointment will be put to the 
members at the forthcoming annual 
general meeting
animalcare group plc
by order of the board
chris brewster
company secretary
24
th 
september 2013
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our business
statement of directors’ responsibilities
in respect of the annual report and the financial statements for the year ended 30ᵗʰ june 2013
the directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and 
regulations company law requires the directors to prepare group and parent company financial statements for each financial year as 
required by the aim rules of the london stock exchange they are required to prepare the group financial statements in accordance with 
ifrss as adopted by the eu and applicable law and have elected to prepare the parent company financial statements on the same basis
under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of 
the state of affairs of the group and parent company and of their profit or loss for that period in preparing each of the group and parent 
company financial statements the directors are required to
 ● select suitable accounting policies and then apply them consistently
 ● make judgements and estimates that are reasonable and prudent
 ● state whether they have been prepared in accordance with ifrss as adopted by the eu and
 ● prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and the parent 
company will continue in business
the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the parent company and enable them to ensure that 
its financial statements comply with the companies act 2006 they have general responsibility for taking such steps as are reasonably open 
to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities
the directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s 
website legislation in the uk governing the preparation and dissemination of financial statements may differ from legislation in other 
jurisdictions
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independent auditor’s report to the 
members of animalcare group plc
we have audited the financial statements of animalcare group plc for the year ended 30
th 
june 2013 set out on pages 19 to 44 the 
financial reporting framework that has been applied in their preparation is applicable law and international financial reporting standards 
ifrss as adopted by the eu and as regards the parent company financial statements as applied in accordance with the provisions of the 
companies act 2006
this report is made solely to the company’s members as a body in accordance with chapter 3 of part 16 of the companies act 2006 our 
audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an 
auditors’ report and for no other purpose to the fullest extent permitted by law we do not accept or assume responsibility to anyone other 
than the company and the company’s members as a body for our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
as explained more fully in the directors’ responsibilities statement set out on page 17 the directors are responsible for the preparation 
of the financial statements and for being satisfied that they give a true and fair view our responsibility is to audit and express an opinion 
on the financial statements in accordance with applicable law and international standards on auditing uk and ireland those standards 
require us to comply with the auditing practices board’s ethical standards for auditors
scope of the audit of the financial statements
a description of the scope of an audit of financial statements is provided on the financial reporting council’s website at 
wwwfrcorgukauditscopeukprivate
opinion on financial statements
in our opinion
 ● the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 30
th 
june 2013 and 
of the group’s profit for the year then ended
 ● the group financial statements have been properly prepared in accordance with ifrss as adopted by the eu
 ● the parent company financial statements have been properly prepared in accordance with ifrss as adopted by the eu and as applied 
in accordance with the provisions of the companies act 2006
 ● the financial statements have been prepared in accordance with the requirements of the companies act 2006
opinion on other matters prescribed by the companies act 2006
in our opinion the information given in the directors’ report for the financial year for which the financial statements are prepared is 
consistent with the financial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following matters where the companies act 2006 requires us to report to you if in our opinion
 ● adequate accounting records have not been kept by the parent company or returns adequate for our audit have not been received from 
branches not visited by us or
 ● the parent company financial statements are not in agreement with the accounting records and returns or
 ● certain disclosures of directors’ remuneration specified by law are not made or
 ● we have not received all the information and explanations we require for our audit
chris hearld senior 
statutory auditor
for and on behalf of
kpmg audit plc
statutory auditor
chartered accountants
1 the embankment
leeds
ls1 4dw
24
th 
september 2013
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note
underlying
 results before
 exceptional 
and
 other items
 2013
 £000
exceptional and
other itemsi
2013
£000
total
2013
£000
underlying
results before
exceptional and
other items
2012
£000
exceptional and
other itemsi
2012
£000
total
2012
£000
revenue 5 12118 — 12118 10856 — 10856
cost of sales 5337 — 5337 4994 — 4994
gross profit 6781 — 6781 5862 — 5862
distribution costs 271 — 271 262 — 262
administrative expenses 3826 392 4218 3306 190 3496
operating profitloss 4 6 2684 392 2292 2294 190 2104
finance income 9 27 11 38 2 — 2
profitloss before tax 4 6 2711 381 2330 2296 190 2106
income tax expensecredit 10 535 90 445 395 18 377
total comprehensive 
incomeloss for the year 2176 291 1885 1901 172 1729
earnings per share
basic 12 105p 91p 93p 84p
fully diluted 12 104p 90p 92p 84p
total comprehensive incomelossfor the year is attributable to the equity holders of the parent
i in order to aid understanding of underlying business performance the directors have presented underlying results before the effect of exceptional and other 
items these exceptional and other items are analysed in detail in note 4 to these financial statements
consolidated statement of comprehensive income
year ended 30ᵗʰ june 2013
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group note
share capital
£000
share premium 
account
£000
retained 
earnings
£000
total
£000
balance at 1
st
 july 2011 4075 6045 5669 15789
total comprehensive loss for the year — — 1729 1729
transactions with owners of the company recognised in 
equity
dividends paid 11 — — 926 926
issue of share capital 23 69 128 — 197
sharebased payments — — 48 48
balance at 1
st
 july 2012 4144 6173 6520 16837
total comprehensive profit for the year 1885 1885
transactions with owners of the company recognised in 
equity
dividends paid 11 932 932
issue of share capital 23 5 19 — 24
sharebased payments — — 148 148
balance at 30
th 
june 2013 4149 6192 7621 17962
company note
share capital
£000
share premium 
account
£000
retained 
earnings
£000
total
£000
balance at 1
st
 july 2011 4075 6045 5054 15174
total comprehensive loss for the year — — 438 431
transactions with owners of the company recognised in 
equity
dividends paid 11 — — 926 926
issue of share capital 23 69 128 — 197
sharebased payments — — 22 22
balance at 1
st
 july 2012 4144 6173 3712 14029
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
sharebased payments — — 90 90
balance at 30
th 
june 2013 4149 6192 2399 12740
as permitted by section 408 of the companies act 2006 the statement of comprehensive income of the parent company is not presented 
as part of these financial statements
statements of changes in shareholders’ equity
year ended 30ᵗʰ june 2013
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note
     group     company
2013
£000
2012
£000
2013
£000
2012
£000
noncurrent assets
goodwill 13 12711 12711 — —
other intangible assets 14 1538 1728 — —
property plant and equipment 15 412 83 — —
investments in subsidiary companies 16 — — 14361 14361
deferred tax asset 22 — — 32 31
14661 14522 14393 14392
current assets
inventories 17 1418 1420 — —
trade and other receivables 18 1662 1297 578 866
cash and cash equivalents 19 3745 2305 1791 1738
6825 5022 2369 2604
total assets 21486 19544 16762 16996
current liabilities
trade and other payables 19 1982 1316 4022 2967
current tax liabilities 362 169 — —
deferred income 21 231 207 — —
current liabilities 2575 1692 4022 2967
net current assetsliabilities 4250 3330 1653 363
noncurrent liabilities
deferred income 21 790 844 — —
deferred tax liabilities 22 159 171 — —
949 1015 —
total liabilities 3524 2707 4022 2967
net assets 17962 16837 12740 14029
capital and reserves
called up share capital 23 4149 4144 4149 4144
share premium account 6192 6173 6192 6173
retained earnings 7621 6520 2399 3712
equity attributable to equity holders of
the parent 17962 16837 12740 14029
the financial statements of animalcare group plc registered number 1058015 were approved by the board of directors and authorised for 
issue on 24th september 2013
they were signed on its behalf by
 
chris brewster
chief financial officer
balance sheets
30ᵗʰ june 2013
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note
     group     company
2013
£000
2012
£000
2013
£000
2012
£000
comprehensive incomeloss for the year before tax 10 2330 2106 596 528
adjustments for
depreciation of property plant and equipment 15 32 19 — —
amortisation of intangible assets 14 319 307 — —
finance income 9 27 2 25 2
sharebased payment award 25 149 48 90 22
releasedeferral of deferred income 21 30 7 — —
loss on disposal of motor vehicles 21 — — —
operating cash flows before movements in working capital 2794 2485 531 508
decreaseincrease in inventories 17 2 74 — —
increasedecrease in receivables 18 365 384 413 1
increasedecrease in payables 19 665 250 1056 2765
cash generated by operations 3096 2545 938 2258
income taxes paid 265 422 —
net cash flow from operating activities 2831 2123 938 2258
investing activities
payments to acquire intangible assets 14 129 215 — —
payments to acquire property plant and equipment 15 379 55 — —
interest received 25 2 23 2
net cash used ingenerated by investing activities 483 268 23 2
financing
receipts from issue of share capital 24 197 24 197
equity dividends paid 11 932 926 932 926
net cash used in financing activities 908 729 908 729
net increase in cash and cash equivalents 1440 1126 53 1531
cash and cash equivalents at start of year 2305 1179 1738 207
cash and cash equivalents at end of year 3745 2305 1791 1738
comprising
cash and cash equivalents 18 3745 2305 1791 1738
cash flow statements
year ended 30ᵗʰ june 2013
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1 general information
animalcare group plc “the company” is a company incorporated in england and wales under the companies act 2006 and is domiciled in 
the united kingdom the group comprises animalcare group plc and its subsidiaries the nature of the group’s operations and its principal 
activities are set out in note 5 and within the directors’ report
the iasb and ifric have issued the following standards and interpretations with an effective date after the date of these financial 
statements their adoption where applicable is not expected to have a material effect on the financial statements of the group
international financial reporting standards applies to periods beginning after
annual improvements to ifrss 20092011 january 2013
ias 19 postemployment benefits amended january 2013
ifrs 10 consolidated financial statements january 2013
ifrs 12 disclosure of interests in other entities january 2013
ifrs 13 fair value measurement january 2013
ifrs 9 financial instruments january 2015
2 significant accounting policies
basis of preparation
the group and company financial statements have been prepared and approved by the directors under the historical cost convention 
except for the revaluation of certain financial instruments in accordance with international financial reporting standards “ifrs” as 
adopted by the european union “adopted ifrss” and the companies act 2006 as applicable to companies reporting under ifrs they 
have also been prepared in accordance with the requirements of the aim rules
going concern
the principal risks and uncertainties facing the group are set out in the directors’ report
for the purposes of their assessment of the appropriateness of the preparation of the group’s accounts on a going concern basis the 
directors have considered the current cash position and forecasts of future trading including working capital and investment requirements
during the year the group met its daytoday general corporate and working capital requirements through existing cash resources at 
30
th 
june 2013 the group had cash on hand of £375m 30
th 
june 2012 — £231m
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 intragroup transactions balances income and expenses are eliminated on consolidation
business combinations
the acquisition of subsidiaries and other businesses is accounted for using the purchase method the cost of the acquisition is measured 
at the aggregate of the fair values at the date of exchange of assets given liabilities incurred or assumed and equity instruments issued 
by the group in exchange for control of the acquiree costs directly attributable to the business combination are expensed the acquiree’s 
identifiable assets liabilities and contingent liabilities that meet the conditions for recognition under ifrs 3 revised are recognised at their 
fair value at the acquisition date except for noncurrent assets or disposal groups that are classified as held for sale in accordance with 
ifrs 5 noncurrent assets held for sale and discontinued operations which are recognised and measured at fair value less costs to sell
notes to the accounts
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notes to the accounts continued
2 significant accounting policies continued
exceptional and other items
exceptional items are material items of income or expense which because of their nature and the expected frequency of the events giving 
rise to them merit separate disclosure
other items relate to the amortisation of acquired intangible assets fair value movements on interest rate hedging and impairment of 
goodwill
the separate presentation of exceptional and other items enables the users of the accounts to better understand the elements of financial 
performance during the year and hence to better assess trends in that financial performance
goodwill
goodwill arising on consolidation represents the excess of the cost of acquisition over the group’s interest in the fair value of the identifiable 
assets and liabilities of a subsidiary associate or jointly controlled entity at the date of acquisition goodwill is initially recognised as an 
asset at cost and is subsequently measured at cost less any accumulated impairment losses goodwill which is recognised as an asset is 
reviewed for impairment at least annually any impairment is recognised immediately in comprehensive income and is not subsequently 
reversed
for the purpose of impairment testing goodwill is allocated to each of the group’s cashgenerating units cgus expected to benefit from 
the synergies of the combination cgus to which goodwill has been allocated are tested for impairment annually or more frequently when 
there is an indication that the cgu may be impaired if the recoverable amount of the cgu is less than its carrying amount the impairment 
loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the cgu pro rata 
on the basis of the carrying amount of each asset in the cgu an impairment loss recognised for goodwill is not reversed in a subsequent 
period
on disposal of a subsidiary associate or jointly controlled entity the attributable amount of goodwill is included in the determination of the 
profit or loss on disposal
goodwill arising on acquisitions before the date of transition to ifrs 1
st
 july 2004 has been retained at the previous uk gaap amounts 
subject to being tested for impairment at that date goodwill written off to reserves under uk gaap prior to 1998 has not been reinstated 
and is not included in determining any subsequent profit or loss on disposal
intangible assets
the group recognises intangible assets at cost less accumulated amortisation and impairment losses intangible assets arise both as a 
result of applying ifrs 3 which requires the separate recognition of intangible assets from goodwill on all business combinations from 
1
st
 january 2004 and from the purchase of software that is separable from any associated hardware and development machinery and 
from research and development see below
intangible assets are amortised on a straightline basis over their useful economic lives as follows
customer relationships 10 years
brands 15 years
software useful life of the software
research and development estimated economic life normally 4–7 years
the useful life of software is currently estimated to be 2–4 years
internally generated intangible assets — research and development expenditure
expenditure on research activities is recognised as an expense in the year in which it is incurred
an internally generated intangible asset arising from the group’s product development is recognised only if all of the following conditions  
are met
 ● an asset is created that can be identified such as software and new processes
 ● it is probable that the asset created will generate future economic benefits and
 ● the development cost of the asset can be measured reliably
internally generated intangible assets are amortised on a straightline basis over their useful lives where no internally generated intangible 
asset can be recognised development expenditure is recognised as an expense in the year in which it is incurred
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2 significant accounting policies continued
revenue recognition
revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and 
services provided in the normal course of business net of discounts vat and other sales related taxes
revenue from the sale of goods is recognised when the risks and rewards of ownership are transferred which is generally when goods are 
delivered
income received in relation to longterm 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 straightline basis over the term of the relevant lease
assets held under finance leases are recognised as assets of the group at their fair value or if lower at the present value of the minimum 
lease payments each determined at the inception of the lease the corresponding liability to the lessor is included in the balance sheet as 
a finance lease obligation lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve 
a constant rate of interest on the remaining balance of the liability finance charges are charged directly against income unless they are 
directly attributable to qualifying assets in which case they are capitalised in accordance with the group’s general policy on borrowing costs 
see below
retirement benefit costs
payments to defined contribution retirement benefit schemes are charged as an expense as they fall due payments made to state
managed retirement benefit schemes are dealt with as payments to defined contribution schemes where the group’s obligations under the 
schemes are equivalent to those arising in a defined contribution retirement benefit scheme
foreign currencies
in preparing the financial statements of the individual companies transactions in currencies other than the entity’s functional currency 
foreign currencies are recorded at the rates of exchange prevailing on the dates of the transactions at each balance sheet date monetary 
assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date non
monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair 
value was determined nonmonetary items that are measured in terms of historical cost in a foreign currency are not retranslated
exchange differences arising on the settlement of monetary items and on the retranslation of monetary items are included in 
comprehensive income for the year
segment reporting
an operating segment is a component of the group that engages in business activities from which it may earn revenues and incur 
expenses including revenues and expenses that relate to transaction with any of the group’s other components an operating segment’s 
operating results are reviewed regularly by the chief executive officer to make decisions about resources to be allocated to the segment 
and assess its performance and for which discrete financial information is available
segment results that are reported to the chief executive officer include items directly attributable to a segment as well as those that can be 
allocated on a reasonable basis unallocated items comprise mainly central group administration costs interest taxation and bank loans
inventories
inventories are stated at the lower of cost and net realisable value cost comprises direct materials and where applicable direct labour costs 
and those overheads that have been incurred in bringing the inventories to their present location and condition cost is calculated using the 
weighted average method net realisable value represents the estimated selling price less all estimated costs of completion and costs to be 
incurred in marketing selling and distribution
dividends
dividends paid are recognised within the statement of changes in equity only when an obligation to pay the dividend arises prior to the 
year end
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notes to the accounts continued
2 significant accounting policies continued
sharebased payments
the group has applied the requirements of ifrs 2 sharebased payment in accordance with the transitional provisions ifrs 2 has been 
applied to all grants of equity instruments after 7
th 
november 2002 that were unvested at 1
st
 january 2005
the group issues equitysettled sharebased payments to certain employees equitysettled sharebased payments are measured at fair 
value excluding the effect of non marketbased vesting conditions at the date of grant the fair value determined at the grant date of such 
equitysettled sharebased payments is expensed on a straightline basis over the vesting period based on the group’s estimate of shares 
that will eventually vest and adjusted for the effect of non marketbased 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 nontransferability exercise restrictions and behavioural considerations
taxation
the tax expense represents the sum of the tax currently payable and deferred tax
the tax currently payable is based on taxable profit for the year taxable profit differs from net profit as reported in the statement of 
comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 
items that are never taxable or deductible the group’s liability for current tax is calculated using tax rates that have been enacted or 
substantively enacted by the balance sheet date
deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the 
financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet 
liability method deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised 
to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised such 
assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition 
other than in a business combination of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting 
profit
the carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable 
that sufficient taxable profits will be available to allow all or part of the asset to be recovered
deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised 
deferred tax is charged or credited in the statement of comprehensive income except when it relates to items charged or credited directly to 
equity in which case the deferred tax is also dealt with in equity
deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities 
and when they relate to income taxes levied by the same taxation authority and the group intends to settle its current tax assets and 
liabilities on a net basis
property plant and equipment
land and buildings and other assets held for use in the production or supply of goods and services or for administrative purposes fixtures 
and equipment are stated at cost less accumulated depreciation and any recognised impairment loss
other than for land which is not depreciated depreciation is charged so as to write off the cost of assets less their estimated residual value 
over their estimated useful lives as follows
straightline
freehold buildings 50 years
leasehold improvements 10 years
plant and equipment 4 to 7 years
office furniture and equipment 3 to 5 years
motor vehicles 4 years
assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or where shorter 
over the term of the relevant lease
the gain or loss arising on the disposal or retirement of an asset is determined as the difference between the net sales proceeds and the 
carrying amount of the asset and is recognised in the statement of comprehensive income as incurred
26
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2 significant accounting policies continued
provisions
provisions are recognised when the group has a present obligation as a result of a past event and it is probable that the group will be 
required to settle that obligation provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation 
outstanding at the balance sheet date and are discounted to present value where the effect is material
impairment of tangible and intangible assets excluding goodwill
at each balance sheet date the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any 
indication that those assets have suffered an impairment loss if any such indication exists the recoverable amount of the asset is estimated 
in order to determine the extent of the impairment loss if any where the asset does not generate cash flows that are independent from 
other assets the group estimates the recoverable amount of the cashgenerating 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 pretax discount rate that reflects current market assessments of the time value of money and 
the risks specific to the asset for which the estimates of future cash flows have not been adjusted
if the recoverable amount of an asset cgu is estimated to be less than its carrying amount the carrying amount of the asset cgu is 
reduced to its recoverable amount an impairment loss is recognised as an expense immediately
where an impairment loss subsequently reverses the carrying amount of the asset cgu is increased to the revised estimate of its 
recoverable amount but so that the increased carrying amount does not exceed the carrying amount that would have been determined 
had no impairment loss been recognised for the asset cgu in prior years a reversal of an impairment loss is recognised as income 
immediately
financial instruments
financial assets and financial liabilities are recognised in the group’s balance sheet when the group becomes a party to the contractual 
provisions of the instrument
trade receivables
trade receivables are measured at initial recognition at fair value and are subsequently measured at amortised cost using the effective 
interest rate method appropriate allowances for estimated irrecoverable amounts are recognised in comprehensive income when there is 
objective evidence that the asset is impaired the allowance recognised is measured as the difference between the asset’s carrying amount 
and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition
investments
investments in group companies are stated at cost less provisions for impairment losses
cash and cash equivalents
cash and cash equivalents comprise cash on hand deposits repayable on demand and other shortterm highly liquid investments that are 
readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value
financial liabilities and equity
financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into an equity 
instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities
trade payables
trade payables are initially measured at fair value and are subsequently measured at amortised cost using the effective interest rate 
method
derivative financial instruments
the group uses derivative financial instruments including interest rate swaps to hedge its exposure to interest rate risks arising from 
operational and financial activities the group does not hold any derivative financial instruments for trading purposes however derivative 
financial instruments that do not qualify for hedge accounting are accounted for as trading instruments
hedge accounting is not adopted and therefore the movement on remeasurement to fair value is recognised immediately as part of 
finance income or finance costs in the consolidated statement of comprehensive income derivatives not designated into an effective 
hedge relationship are classified as a current asset or current liability fair value movements on interest rate hedging are included within 
“exceptional and other items” on the face of the statement of comprehensive income
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notes to the accounts continued
3 critical accounting judgements and key sources of estimation uncertainty
critical judgements in applying the group’s accounting policies
in the process of applying the group’s accounting policies which are described in note 2 management has made the following judgements 
that have the most significant effect on the amounts recognised in the financial statements apart from those involving estimations which 
are dealt with below
capitalised research  development expenditure
it is the group’s policy to capitalise development expenditure and to amortise this expenditure over the estimated life of the asset 
expenditure incurred to date relates primarily to the following
 ● certain costs associated with preparing regulatory dossiers in support of applications for generic veterinary medicine marketing 
authorisations
the directors have adjudged these costs to meet the relevant criteria of ias 38 “intangible assets”
capitalised software expenditure
the group has historically capitalised software projects and developments expenditure on a bespoke web based system designed to 
facilitate online ordering of its products is currently capitalised in the group’s financial statements as the directors have adjudged it to meet 
the relevant criteria
the rate of depreciation on capitalised software is set so as to reflect the pattern of usage and the level of pace of change within the global 
information technology market
key sources of estimation uncertainty
impairment of noncurrent assets
determining whether a noncurrent asset is impaired requires an estimation of the “value in use” andor the “fair value less costs to sell” of 
the cashgenerating units “cgus” to which the noncurrent 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 pretax 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 119 2012 — 113 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 13 2012 — 19 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 longterm growth rate does not exceed the average longterm growth rate for the uk economy
impairment of slowmoving and obsolete inventory
the group performs an annual stockholding review to determine any slowmoving or obsolete lines and accordingly makes provision in its 
financial statements for writing down or writing off the value of such lines in order to reflect the true value of its stock
28
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4 exceptional and other items
note
2013
£000
2012
£000
executive and management severance payments 152 71
amortisation of acquired intangible assets 14 119 119
head office relocation 121 —
fair value movements on foreign currency hedging 9 11 —
total exceptional and other items 381 190
on 11
th 
january 2013 stephen wildridge stepped down from the position as group ceo and will remain in the group until the end of 
october 2013 as director of strategy and business development the total compensation package agreed on 11
th 
january 2013 in relation 
to stephen stepping down as ceo is £71000 which is due to be paid on 31
st
 october 2013 and in addition an accelerated share based 
payments charge of £39000 has been recognised to reflect stephen’s ability to exercise early any outstanding share options at 31
st
 october 
2013 the balance of £42000 relates to management severance payments
head office relocation costs principally represent operating costs of the new premises whilst unoccupied together with oneoff regulatory 
costs associated with changing the address on our pharmaceutical licences 
on 11
th 
november 2011 peter warner resigned from the board on termination of this contract he received a compensation package 
totalling £71000 including associated employer’s national insurance
5 revenue and operating segments
ifrs 8 requires operating segments to be identified on the basis of internal reports about components of the group that are regularly 
reviewed by the chief operating decision maker to allocate resources and assess performance the chief operating decision maker is 
considered to be the chief executive officer of animalcare group plc performance assessment is based on underlying operating profit
the group solely comprises one reportable segment being companion animal
note
companion 
animal
2013
£000
companion 
animal
2012
£000
revenue 12118 10856
gross profit 6781 5862
underlying operating profit 2684 2294
other items 4 119 119
exceptional items 4 273 71
operating profit 2292 2104
finance income 9 38 2
profit before tax 2330 2106
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notes to the accounts continued
5 revenue and operating segments continued
note
companion 
animal
2013
£000
companion 
animal
2012
£000
products and services
licensed veterinary 7200 5972
animal identification 2244 2338
animal welfare 2674 2546
12118 10856
other information
intangible asset additions 14 129 215
property plant and equipment additions 15 379 55
depreciation and amortisation 14 15 351 326
consolidated assets 21486 19544
consolidated liabilities 3524 2707
consolidated net assets 17962 16837
2013
£000
2012
£000
key customers
number 3 3
percentage of total revenue 80 74
key customers all within the companion animal segment are those responsible for 10 or more of segmental revenue
2013
£000
2012
£000
geographical market
united kingdom 11061 10023
other european countries 1057 833
12118 10856
all the group assets are wholly located in the united kingdom and accordingly no geographical analysis of assets and liabilities is 
presented
an analysis of total group revenue is as follows
2013
£000
2012
£000
revenue from sale of goods 11250 10052
revenue from provision of services 868 804
12118 10856
finance income 27 2
12145 10858
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6 total comprehensive incomeloss for the year
2013
£000
2012
£000
total comprehensive incomeloss for the year has been arrived at after charging
cost of inventories recognised as expense 5218 4911
depreciation of tangible assets 32 19
amortisation of intangible assets 319 307
research and development 138 89
operating lease rentals 211 206
foreign exchange losses 24 2
increase in provision for receivables 6 —
increase in provision for inventories 18 —
the above items are those charged to total comprehensive income only full details on items chargedcredited to exceptional and other 
items are contained in note 4
the analysis of remuneration paid to the company’s auditors is as follows
2013
£000
2012
£000
fees payable to the company’s auditors for the audit of the companys annual accounts 13 25
fees payable to the company’s auditors for other services to the group 3
the audit of the company’s subsidiaries pursuant to legislation 17 28
total audit fees 30 56
tax services 11 26
other services 3 4
total nonaudit fees 14 30
total auditors’ remuneration 44 86
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notes to the accounts continued
7 directors’ remuneration and interests
emoluments
the various elements of remuneration received by each director were as follows
year ended 30
th
 june 2013
salary
£000
bonus
£000
company 
pension
contributions
£000
benefits
£000
compensation 
for
loss of office
£000
total
£000
j s lambert 33 — — — — 33
lord downshire 22 — — 2 — 24
r b harding 22 — — — — 22
s m wildridge 128 — — — — 128
dr i d menneer 100 — 12 6 — 118
c j brewster 92 8 11 1 — 112
total 397 8 23 9 — 437
year ended 30
th 
june 2012
j s lambert 31 — — — — 31
lord downshire 21 — — 2 — 23
r b harding 
appointed 11
th 
november 2011 13 — — — — 13
s m wildridge 151 34 11 — — 196
p o r warner
resigned 11
th 
november 2011 29 5 4 — 66 104
dr i d menneer 
appointed 1
st
 july 2011 71 8 9 6 — 94
c j brewster 
appointed 21
st
 june 2012 8 — — — — 8
total 324 47 24 8 66 469
 indicates nonexecutive directors
all company pension contributions relate to defined contribution pension schemes benefits consist of company car and private medical 
insurance the compensation for loss of office in relation to s m wildridge will be settled by 28
th 
november 2013 the compensation for loss 
of office in relation to p warner was paid in cash during 2012
share options
the directors had the following beneficial options
s m wildridge
scheme unapproved emi unapproved emi total
exercise price £0975 £1675 £1675 £130
date of grant
9
th 
july 
2009
14
th 
october 
2011
14
th 
october 
2011
2
nd
 august 
2012
outstanding at 30
th 
june 2012 100000 71600 28400 — 200000
granted during the year — — — 100000 100000
outstanding at 30
th 
june 2013 100000 71600 28400 100000 300000
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7 directors’ remuneration and interests continued
i d menneer
scheme emi saye emi emi emi unapproved saye unapproved total
exercise 
price £0975 £134 £1675 £130 £1325 £140 £103 £1415
date of grant
9th
july
2009
4th
 october
2011
14th
 october
 2011
2nd
 august 
2012
20th
 november 
2012
21st
 february 
2013
22nd
 may
2013
20th
 june 
2013
outstanding 
at 30
th 
june 
2012 5000 3358 60000 — — — — — 68358
granted 
during the 
year — — — 60000 50000 90000 4377 90000 294377
outstanding 
at 30
th 
june 
2013 5000 3358 60000 60000 50000 90000 4377 90000 362735
c j brewster
scheme emi emi saye emi total
exercise price £130 £130 £103 £1415
date of grant 22
nd
 june 2012 2
nd
 august 2012 22
nd
 may 2013 20
th 
june 2013
outstanding at 30
th 
june 2012 30000 — — — 30000
granted during the year — 30000 8754 40000 78754
outstanding at 30th june 2013 30000 30000 8754 40000 108754
the directors’ interests in the shares of the company as at 30
th 
june are set out below
2013 2012
ordinary shares 
of 20p
ordinary shares 
of 20p
j s lambert 1413691 1363691
lord downshire 1109583 1109583
s m wildridge 177068 200068
i d menneer 9381 9381
c j brewster 4079 —
in addition to the above lord downshire had a nonbeneficial interest in 310446 shares
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notes to the accounts continued
8 staff costs
2013 2012
number of employees
the average monthly number of employees including directors during the year was
production and distribution 4 4
selling and administration 53 54
57 58
2013
£000
2012
£000
related costs
wages and salaries 1810 1511
social security costs 191 176
other pension costs 78 71
2079 1758
9 finance income
2013
£000
2012
£000
other net finance income
fair value gains on financial instruments 11 —
interest income on bank deposits 27 2
finance income 38 2
  finance gains arising from derivatives held at fair value through profit and loss relate to fair value movements on the group’s foreign exchange hedges these 
gains are included within “other items” on the face of the statement of comprehensive income
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10 income tax expense
note
2013
£000
2012
£000
the income tax expense comprises
current tax expense 632 470
adjustment in the current year in relation to prior years 175 199
457 271
the deferred tax creditexpense comprises
origination and reversal of temporary differences 22 18 81
adjustment in the current year in relation to prior years 22 6 25
12 106
total tax expense for the year 445 377
the total tax charge can be reconciled to the accounting profit as follows
total comprehensive income for the year 1885 1729
total tax expense 445 377
profit before tax 2330 2106
income tax calculated at 2375 2012 — 255 553 537
effect of expenses not deductible 48 3
effect of sharebased deductions 20 28
change in uk tax rate 7 13
effect of writeback of deferred tax liabilities — 4
effect of adjustments in respect of prior years 169 174
445 377
the tax credit of £90000 2012 — £18000 shown within “exceptional and other items” on the face of the statement of comprehensive 
income which forms part of the overall tax charge of £445000 2012 — £377000 relates to the items analysed in note 4
reductions in the uk corporation tax rate from 26 to 24 effective from 1
st
 april 2012 and to 23 effective 1
st
 april 2013 were 
substantively enacted on 26
th 
march 2012 and 3
rd
 july 2012 respectively further reductions to 21 effective from 1
st
 april 2014 and 20 
effective from 1
st
 april 2015 were substantively enacted on 2
nd
 july 2013 deferred tax balances have been calculated at an effective rate 
of 23 being the substantively enacted rate at 30
th 
june 2013
11 dividends
2013
£000
2012
£000
ordinary final dividend paid in respect of prior year 621 615
ordinary interim dividend paid 311 311
932 926
the final dividend paid during the year ended 30
th 
june 2013 was 30 pence per share 2012 — 30 pence per share the interim dividend 
paid during the year ended 30
th 
june 2013 was 15 pence per share 2012 — 15 pence per share
the proposed final dividend was approved by the board of directors on 24
th 
september 2013 and is subject to approval of shareholders at 
the annual general meeting the proposed dividend has not been included as a liability as at 30
th 
june 2013 in accordance with ias 10 
“events after the balance sheet date”
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notes to the accounts continued
12 earnings per share
basic earnings per share amounts are calculated by dividing the total comprehensive income for the year attributable to ordinary equity 
holders of the company by the weighted average number of fully paid ordinary shares outstanding during the year
the following income and share data was used in the basic earnings per share computations
underlying
earnings before
exceptional and
other items
2013
£000
underlying
earnings before
exceptional and
other items
2012
£000
total
earnings
2013
£000
total
earnings
2012
£000
total comprehensive income attributable to equity holders  
of the company 2176 1901 1885 1729
2013
no
2012
no
2013
no
2012
no
basic weighted average number of shares 20732636 20546961 20732636 20546961
dilutive potential ordinary shares 124519 58085 124519 58085
20857155 20605046 20857155 20605046
earnings per share
basic 105p 93p 91p 84p
fully diluted 104p 92p 90p 84p
13 goodwill
group
£000
cost
at 1
st
 july 2011 1
st
 july 2012 and 30
th 
june 2013 12711
accumulated impairment losses
at 1
st
 july 2011 1
st
 july 2012 and 30
th 
june 2013 —
net book value
at 30
th 
june 2013 and 30
th 
june 2012 12711
the carrying amount of group goodwill is allocated to the group’s sole cashgenerating 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 longterm annual growth rate of 13 2012 — 19
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 longterm growth rate does not exceed the average longterm growth rate for the uk economy
the directors estimate the discount rates using the posttax rates that reflect the current market assessments of the time value of money 
and the risks specific to the cashgenerating unit in the current year the directors estimated the applicable pretax rate to be 119 
2012 — 114
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
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14 other intangible assets
group
acquired
brands and
customer
relationships
£000
new product
development
costs
£000
capitalised
software
£000
total
£000
cost
at 1
st
 july 2011 1361 1228 41 2630
additions — 161 54 215
at 30
th 
june 2012 1361 1389 95 2845
additions — 102 27 129
at 30
th
 june 2013 1361 1491 122 2974
amortisation
at 1
st
 july 2011 415 393 2 810
charge for the year 119 169 19 307
at 30
th 
june 2012 534 562 21 1117
charge for the year 119 175 25 319
at 30
th 
june 2013 653 737 46 1436
carrying value
at 30th june 2013 708 754 76 1538
at 30
th 
june 2012 827 827 74 1728
veterinary medicine product development costs are amortised over four to seven years acquired brands are amortised over 15 years and 
acquired customer relationships are amortised over ten years the amortisation period for capitalised software relating to the bespoke online 
ordering system is four years
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notes to the accounts continued
15 property plant and equipment
group
leasehold
improvements
£000
plant and
equipment
£000
office
furniture and
equipment
£000
motor
vehicles
£000
total
£000
cost
at 1
st
 july 2011 — 63 78 23 164
additions — — 55 — 55
disposals — — — 13 13
at 1
st
 july 2012 63 133 10 206
additions 187 44 131 17 379
disposals 1 27 28
at 30
th
 june 2013 187 107 263 557
depreciation
at 1
st
 july 2011 — 30 65 22 117
charge for the year — 10 8 1 19
disposals — — — 13 13
at 1
st
 july 2012 — 40 73 10 123
charge for the year 3 2 27 — 32
disposals — — — 10 10
at 30
th
 june 2013 3 42 100 145
net book value
at 30
th 
june 2013 184 65 163 — 412
at 30
th 
june 2012 — 23 60 — 83
16 investments in subsidiaries
subsidiary undertakings
     company
2013
£000
2012
£000
cost and net book value
at 1
st
 july 2011 2012 and 30
th 
june 14361 14361
the principal subsidiary undertakings of the company are summarised below the companies listed include all those which principally 
affected the earnings and assets of the group
country of
registration or
incorporation class
shares held

animalcare ltd england ordinary 100
naychem limited england ordinary 100
the principal activity of these undertakings for the last financial year was as follows
principal activity
animalcare ltd sale of companion animal products and services
naychem limited nontrading
38
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17 inventories
     group
2013
£000
2012
£000
finished goods and goods for resale 1418 1420
in the directors’ opinion the replacement cost of inventories is not materially different from their balance sheet value
18 other financial assets
trade and other receivables
     group     company
2013
£000
2012
£000
2013
£000
2012
£000
trade receivables 1386 1134 — —
amounts receivable from subsidiaries — — — 423
corporation tax – group relief — — 556 431
other receivables 8 66 7 4
derivative financial instruments see note 20 11 — — —
prepayments and accrued income 257 97 15 8
1662 1297 578 866
the directors consider that the carrying amount of trade and other receivables approximates to their fair value
movement in allowance for doubtful debts
     group     company
2013
£000
2012
£000
2013
£000
2012
£000
balance at 1
st
 july — 5 — —
impairment losses recognised 6 5 — —
balance at 30 june 6 — — —
ageing of past due but not impaired receivables
     group
2013
£000
2012
£000
1–30 days past due — 31
31–90 days past due 4 —
91 days and more 2 —
6 31
39
animalcare group plc annual report 2013
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animalcare group plc annual report 2013
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notes to the accounts continued
18 other financial assets continued
cash and cash equivalents
     group     company
2013
£000
2012
£000
2013
£000
2012
£000
cash and cash equivalents 3745 2305 1791 1738
cash and cash equivalents comprise cash and shortterm bank deposits with an original maturity of three months or less
the carrying amount of these assets approximates of their fair value
credit risk
the company’s principal financial assets are bank balances and cash and trade and other receivables the company’s credit risk is 
primarily attributable to its trade receivables the amounts presented in the balance sheet are net of allowances for doubtful receivables an 
allowance for impairment is made where there is an identified loss event which based on previous experience is evidence of a reduction 
in the recoverability of the cash flows the allowance for doubtful debts represents the difference between the carrying value of the specific 
trade receivables and the present value of the expected recoverable amount
the average credit period on sales of goods is 32 days 2012 — 31 days no interest has been charged on overdue receivables
19 other financial liabilities
     group     company
2013
£000
2012
£000
2013
£000
2012
£000
trade payables 983 702 62 70
amounts payable to subsidiaries — — 3757 2821
other taxes and social security costs 369 338 39 40
other creditors 288 227 18 27
accruals 342 49 146 9
1982 1316 4022 2967
the directors consider that the carrying amount of trade and other payables approximates to their fair value
20 financial instruments
capital and liquidity risk management
at 30
th 
june the group was contractually obliged to make repayments of principal and payments of interest as detailed below
within one year
or on demand
£000
1–2 years
£000
3–5 years
£000
more than
5 years
£000
total
£000
2013
trade and other payables 1982 — — — 1982
2012
trade and other payables 1316 — — — 1316
40
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20 financial instruments continued
categories and fair value of financial instruments
carrying value
2013
£000
2012
£000
financial assets
trade and other receivables including cash and cash equivalents 5139 3505
financial liabilities
trade and other payables 1982 1316
the fair values of the group’s financial assets and liabilities are not materially different from their carrying values
foreign currency risk management
the group undertakes transactions denominated in foreign currencies which gives rise to the risks associated with currency exchange rate 
fluctuations exposures are managed by a combination of matching foreign currency income and expenditure maintaining foreign currency 
deposits and the use of forward exchange contracts the carrying value of the group’s foreign currency assets and liabilities at the reporting 
date was
     assets     liabilities
2013
£000
2012
£000
2013
£000
2012
£000
euro 233 54 33 9
us dollar 142 — 21 53
foreign currency sensitivity analysis
at 30
th 
june 2013 the group is mainly exposed to the euro and the us dollar the following table details the effect of a 10 increase and 
decrease in the exchange rate of these currencies against sterling when applied to outstanding monetary items denominated in foreign 
currency as at 30
th 
june 2013 a positive number indicates that an increase in profit would arise from a 10 strengthening of sterling against 
these currencies a negative number indicates that a decrease would arise
strengthening
£000
weakening
£000
euro 18 22
us dollar 11 14
interest rate sensitivity analysis
this sensitivity analysis was not performed as the group had no exposure to interest rates for either derivatives or nonderivative 
instruments at the balance sheet date
forward foreign exchange contracts
the group had nine 2012 — none open foreign exchange contracts at 30
th 
june 2013 the values are shown below
2013
£000
2012
£000
principal value 285 —
fair value 11 —
capital management
in line with the disclosure requirements of ias 1 “presentation of financial statements” the company regards its capital as being the 
issued share capital together with its banking facilities used to manage shortterm working capital requirements note 23 to the financial 
statements provides details regarding the company’s share capital and movements in the period there were no breaches of any 
requirements with regard to any relevant conditions imposed by the company’s articles of association during the periods under review
41
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animalcare group plc annual report 2013
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notes to the accounts continued
21 deferred income
deferred income arises from certain services sold by the group’s subsidiary animalcare ltd in return for a single upfront payment 
animalcare ltd commits to a fixed term contract to provide certain database pet reunification and other support services to customers 
there is no contractual restriction on the amount of times the customer makes use of the service at the commencement of the contract it 
is not possible to determine how many times the customer will make use of the services nor does historical evidence provide indications of 
any future pattern of use as such income is recognised evenly over the term of the contract currently eight years
movements in the group’s deferred income liabilities during the current and prior reporting period are as follows
2013
£000
2012
£000
balance at the beginning of the period 1051 1044
income deferred to future periods 177 189
release of income deferred from previous periods 207 182
1021 1051
the deferred income liabilities fall due as follows
2013
£000
2012
£000
within one year 231 207
after one year 790 844
1021 1051
income recognised during the year is set out below
2013
£000
2012
£000
income received 190 203
income deferred to future periods 177 189
release of income deferred from previous periods 207 182
income recognised in the year 220 196
22 deferred tax liabilities
the following are the major components of the deferred tax liabilitiesassets recognised by the group and the movements thereon during 
the current and prior reporting period
property plant 
and equipment
£000
share based
payments
£000
other
£000
intangible fixed 
assets
£000
total
£000
balance at 1
st
 july 2011 59 122 — 246 65
chargecredit to income 45 111 2 48 106
balance at 30
th 
june 2012 14 11 2 198 171
chargecredit to income 41 13 5 35 12
balance at 30
th 
june 2013 27 24 7 163 159
as set out in note 10 the rate of corporation tax will be reducing to 21 effective from 1
st
 april 2014 and 20 effective from 1
st
 april 2015 
a reduction of 2 would reduce deferred tax liabilities if applied at 30
th 
june 2013 by £14000 to £145000
42
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22 deferred tax liabilities continued
the following are the major components of the deferred tax assets recognised by the company and the movements thereon during the 
current and prior reporting period
accelerated
tax depreciation
£000
sharebased
payments
£000
other
£000
total
£000
balance at 1
st
 july 2011 56 100 — 156
chargecredit to income 35 92 2 125
at 30
th 
june 2012 21 8 2 31
chargecredit to income 4 5 — 1
at 30
th 
june 2013 17 13 2 32
as set out in note 10 the rate of corporation tax will be reducing to 21 effective from 1
st
 april 2014 and 20 effective from 1
st
 april 2015 
a reduction of 2 would reduce deferred tax assets if applied at 30
th 
june 2013 by £3000 to £29000
23 share capital
2013
no
2012
no
allotted called up and fully paid ordinary shares of 20p each 20745204 20720204
2013
£000
2012
£000
allotted called up and fully paid ordinary shares of 20p each 4149 4144
during the year £5000 2012 — £69000 of ordinary shares were issued for proceeds of £24375 2012 — £197000 resulting in a share 
premium of £19375 2012 — £128000
24 operating lease arrangements
the group as lessee
2013
£000
2012
£000
lease payments under operating leases recognised as an expense in the year 211 206
at the balance sheet date the group had outstanding commitments for future minimum lease payments under noncancellable operating 
leases which fall due as follows
2013
£000
2012
£000
within one year 165 120
in the second to fifth years inclusive 334 69
after five years 143 —
642 189
operating lease payments principally represent rentals payable by the group for its office and warehouse properties and motor vehicles
43
animalcare group plc annual report 2013
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animalcare group plc annual report 2013
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notes to the accounts continued
25 sharebased payments
details of the movement in share options during the year are as follows
    emi    unapproved    unapproved
options
price
£ options
price
£ options
price
£
outstanding at beginning of year 286600 1455 72114 134 128400 1130
granted during the year 445000 1334 114140 1028 180000 1408
lapsed during the year 30000 142 47409 134 — —
exercised during the year 25000 0975 — — — —
open at 30
th 
june 2013 676600 1392 138845 1084 308400 1292
exercisable at the end of the year 20000 0975 — — 100000 0975
the weighted average inputs into the black–scholes model at the time of grant were as follows
emi
scheme
saye
scheme
unapproved
scheme
weighted average share price 133p 144p 121p
weighted average exercise price 135p 115p 125p
expected volatility 50 55 47
expected life 31 years 31 years 31 years
riskfree rate 06 05 07
expected volatility was determined by calculating the historical volatility of the group’s share price over the previous two years the 
expected lives used in the model were estimated based on management’s best estimate for the effects of nontransferability exercise 
restrictions and behavioural considerations
the aggregate estimated fair value of the options granted during the year was £nil 2012 — £nil
the group recognised total expenses of £149000 2012 — £48000 £110000 2012 — £48000 within administrative expenses and 
£39000 2012 — £nil within exceptional and other items as disclosed in note 4
26 related party transactions
trading transactions
during the year ended 30
th 
june the following trading transactions took place between the company and its subsidiaries listed in note 16
2013
animalcare ltd
£000
total
£000
management charges levied 240 240
2012
animalcare ltd
£000
total
£000
management charges levied 192 192
remuneration of key management personnel
the remuneration of the directors who are the key management personnel of the group is set out in aggregate for each of the categories 
specified in ias 24 “related party disclosures” further information about the remuneration of directors is provided in note 7
the directors’ interests in the shares of the company are contained in note 7
44
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directors j s lambert
s m wildridge
lord downshire
i d menneer
c j brewster
r b harding
secretary c j brewster
company number 1058015
registered office unit 7 10 great north way
york business park
nether poppleton
york yo26 6rb
auditors kpmg audit plc
1 the embankment
neville street
leeds
ls1 4dw
bankers barclays bank plc
po box 190
1 park row
leeds
ls1 5wu
solicitors langleys
queens house
micklegate
york
yo1 6wg
nominated advisor and broker panmure gordon  co
one new change
london
ec4m 9af
registrars capita asset services
34 beckenham road
beckenham
kent
br3 4tu
animalcare group plc annual report 2013
45
animalcare annual report 2013indd   4 08102013   162702 2277904    proof 3    081013
address
10 great north way
york business park york
yo26 6rb
contact
t 44 0 1904 487687
f 44 0 1904 487611
e ordersanimalcarecouk
w wwwaniamalcarecouk
animalcare annual report 2013indd   1 08102013   162702


Summary:
 2277904    proof 3    081013
chief executive’s review
introduction
animalcare group plc has delivered 
a strong performance for the year 
to 30
th 
june 2013 this noteworthy 
result has been achieved during 
a year of transition transition that 
has placed animalcare in a strong 
position to grow and succeed into 
the next decade executive and 
senior management changes have 
been completed alongside a long
anticipated change of premises 
both of which give us capacity for 
the future
in addition the group is firmly in the 
transition to a new strategy to bring 
enhanced generic products into 
the development pipeline which will 
deliver protectable and sustainable 
commercial benefits over the 
longterm
iain meneer chief executive officer
the group is firmly in the transition to a new 
strategy to bring enhanced generic products 
into the development pipeline which 
will deliver protectable and sustainable 
commercial benefits over the longterm
business overview
the uk companion animal 
medicines market decreased by 
002 in the year to december 
2012 making our performance all 
the more significant reference 
national office of animal health 
wwwnoahcouk output from the 
current inhouse and eu partner 
pipelines has continued to drive 
growth with three launches in the 
period of which the principal launch 
was the reintroduction of buprecare 
‘singledose’ ampoules
revenues derived from services 
marketed to pet owners on our 
microchip pet database anibase 
continued to rise in the period 
microchip sales volumes were 
marginally ahead of management 
expectations despite competitive 
pressure the animal welfare group 
continued to perform steadily in line 
with management expectations
animalcare launched three products 
in 2013 vitofyllin buprecare 
ampoules and marbocare injection 
a fourth product received its 
marketing authorisation in the 
last month of the financial year 
and will be launched in h1 of the 
current year 
licensed veterinary medicines
the importance of the contribution 
from new product launches is clear 
of less obvious impact is the critical 
mass that has been achieved by 
launching such a range of new 
products animalcare now has a 
much more comprehensive range of 
companion animal pharmaceuticals 
in more therapeutic areas than 
10 years ago giving its uk sales 
team greater significance in uk 
veterinary practices
since the launch of benazecare 
in 2006 the first licensed generic 
veterinary pharmaceutical in the 
recent strategy animalcare has 
launched 17 further new products 
that have either been products of 
our highly successful new product 
development pipeline collaboration 
projects with our eu partners 
or straightforward distribution 
opportunities from our eu partners
12 months 
to
 30 june 
2013
 £000
12 months 
to
 30 june 
2012
 £000  change
licensed veterinary medicines 7200 5972 206
companion animal identification 2244 2338 40
animal welfare products 2674 2546 50
7
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chief executive’s review continued
vitofyllin project quattro the first 
of the three products to be launched 
in the period is a treatment for 
the symptoms of old age in dogs 
good sales have been achieved 
through the year exceeding our 
expectations in this £2m market 
whilst animalcare is looking to grow 
its market share we also believe 
that there is potential to grow this 
market as the symptoms are often 
overlooked by owners and veterinary 
professionals alike
a new more robust manufacturer 
has been found for buprecare 
ampoules and in december the 
product was relaunched on schedule 
following a successful registration 
process revenues from sales in the 
second half have been strong and in 
line with our expectations buprecare 
ampoules complement the multi
dose presentation that was launched 
in the second half of last year ended 
30
th 
june 2012 the two buprecare 
products generated combined 
revenues in the uk of £09m in the 
year ended 30
th 
june 2013
the third launch in the year was 
marbocare injection project stone 
1 a codevelopement with one of 
our eu partners it is used in the 
treatment of respiratory infections in 
cattle and pigs whilst not significant 
target species for animalcare this 
successful registration will allow us 
to develop this active ingredient into 
our core species market
companion animal identification
continuing sales and marketing 
efforts which have significantly 
slowed the decline in microchips 
sales to 6 in the period are set 
to maintain a positive effect over 
35 million owners have their 
pets registered on our microchip 
database anibase improvements 
in the way we are able to market 
associated goods and services to 
these pet owners has allowed us to 
increase revenues and at improved 
margins as efficiencies have 
been achieved in operational and 
marketing activities
animal welfare products
the animal welfare product group 
is made up of a variety of product 
subgroups half of this group’s 
revenue is generated from infusion 
accessories that complement the 
sale of our intravenous infusion 
fluids the infusion accessories 
subgroup grew by 3 in the year to 
30
th 
june 2013 the remaining half 
is made up of unconnected legacy 
products that are increasingly difficult 
to differentiate from their competitor 
products they also continue to 
require operational support most 
of these products are in decline 
and it is our strategy to selectively 
withdraw from these markets during 
the year the first of these products 
was discontinued from sale
vitofyllin
database operative anibase
animalcare group plc annual report 2013
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operational overview
animalcare had outgrown its leased 
warehouse and offices some time 
ago in march after a programme 
of refurbishment the business was 
moved to the new premises still in 
the york area with no disruption 
to trading the new warehouse 
operation has approximately 70 
more capacity than the old facility 
allowing for the planned business 
growth to 2020 and beyond 
the office move has allowed it 
infrastructure to be upgraded 
resulting in a much more capable 
and robust system overall our 
operations are now in good shape 
for the years ahead
in january the company announced 
that stephen wildridge would leave 
the business in october 2013 in 
the intervening period he assumed 
the role of director of strategy and 
business development in august 
2013 karolyn tapper joined the 
business as director of business 
development karolyn has 19 years’ 
experience working in a global 
contract manufacturing company 
with experience in pharmaceutical 
formulation project management 
and business development there 
has been a thorough handover 
to ensure the momentum of new 
product development is maintained
also in august torben orskov was 
promoted to director of technical 
and regulatory affairs torben is 
a qualified veterinary surgeon with 
10 years’ experience in companion 
and large animal practice before he 
joined animalcare in 2006 torben 
has been heavily involved in the 
technical and regulatory aspects of 
the product development pipeline
both appointments reflect our 
continued emphasis on the new 
product development strategy and 
more specifically the increasing 
importance of project sustain
future developments
animalcare will continue to launch 
undifferentiated generic licensed 
veterinary medicines from its 
inhouse development pipeline 
codeveloped projects with our 
european partners or simple 
distribution products from our 
existing partners in europe
in july 2013 we launched 
an enhanced presentation of 
phenoleptil a product used in the 
prevention of epileptic seizures in 
dogs phenoleptil was originally 
launched in june 2011 the 
enhanced presentation makes 
accurate dosing of patients easier 
and will allow us to gain faster 
market penetration as it has practical 
prescribing advantages for the 
veterinary surgeon
two further products one from our 
own development pipeline and one 
a distribution product are in the final 
commercialisation planning stages 
for launch in q2 of this year both 
products are for use in companion 
animal medicine
depending on the time required to 
fully develop the market for the three 
products outlined above we may also 
launch a fourth product in h2
during this financial year we will 
be upgrading the software tools 
available to our sales team we 
have identified a partner who will be 
able to enhance the management 
information we can derive from 
our sales data as well as reducing 
the administrative work by the 
wider team
we also expect to see significant 
progress on project sustain that 
will crystalise the work already 
undertaken we forecast the first 
products to launch in 201718
in addition we expect to take the 
first steps in this period to expand 
the geographic footprint of territories 
in which animalcare distributes 
outside the uk
a dog being implanted with a microchip
9
animalcare group plc annual report 2013
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our business our performance
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outlook
in february the uk parliament 
announced that it will be 
compulsory for all dogs in england 
to be microchipped by april 2016 
furthermore the welsh assembly 
has now announced that it will 
introduce similar legislation for 
implementation in march 2015 
whilst there will be some undoubted 
commercial opportunities as a 
result of this legislation in the short 
to mediumterm it is not yet clear 
how the initial implementation will 
impact animalcare however as 
a company selling microchips and 
also administering the anibase pet 
database of over 35million pets and 
their owners animalcare remains in 
a strong position in this market for 
the mediumterm after a potential 
initial disruptive period
we have commented in previous 
reports that competition is strong 
in the licensed veterinary 
medicines market however we 
have consistently outperformed 
the uk market and we believe this 
will continue
over the past seven years since 
the launch of the first product 
from the animalcare new product 
pipeline the group has achieved 
increased revenues and profitability 
however with this upside comes 
the requirement to invest further 
in the routine maintenance 
of the associated marketing 
authorisations the number of 
marketing authorisation licences that 
animalcare owns and therefore must 
maintain was 14 in 2003 rising to 
136 in 2013
having delivered a successful 
undifferentiated and differentiated 
generics strategy the company is 
moving into a period of investment 
for the future we intend to invest 
more in research and development 
particularly in enhanced generics 
than we have to date in this context 
we expect limited growth in the 
coming 12 to 36 months however 
this will put the foundations in 
place to deliver the next phase in 
our strategy
as these projects are 
commercialised from 2017 onwards 
we believe the rewards will be 
significant and ensure the future 
growth and success of the group
iain menneer
chief executive officer
aqupharm intravenous fluids in use
animalcare group plc annual report 2013
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