Animal spirits
We offer our usual forthright opinion on trading updates from two companies in the animal health sector. Both look in good shape to us, although the valuation of one looks quite full relative to real returns to date and indeed its growth prospects. Elsewhere, we take a close look at a software company whose shares are struggling to advance, despite evident trading progress, and the the business model of an online travel operator also appeals. (Premium)
Animalcare: shares rise on update Animalcare (AIM: ANCR), the international animal health business, returned to revenue growth in 2023 with sales increasing across all product segments and direct operations. We hope all the investment of recent years is starting to come good. Full year December 2023 revenues are expected to be 4% higher at £74.4m with strong growth in its Companion Animals oral health range and continuing momentum of the Identicare pet microchipping and consumer-focused services business. Underlying EBITDA is in-line with market expectations and at least in line with 2022 at £13.1m (margin 17.6%). However, that seems an irrelevant…