Annual Report and Accounts for the Year Ended 30 June 2017

20 Years of Strategic Growth

Dechra is a company that has consistently delivered on its strategic objectives resulting in a strong track record of growth.

Click on the blue flashing square to navigate though our 20 Years of Strategic Growth. Click on each segment to see more information on each milestone.

Introduction

Our History

The Company was incorporated in May 1997 to effect the management buyout from Lloyds Chemist plc. Three years later, in 2000, the issued ordinary share capital of Dechra was listed on the London Stock Exchange. Since 2000, the Company has grown strongly through a combination of innovation, organic growth and acquisition.

Click on each segment to see more information on each milestone.

1 July 1996 to 30 June 1997

1 July 1996 to 30 June 1997

June 1997

Management buyout from Lloyds Chemist plc supported by Mercury and Bank of Scotland.

1 July 1997 to 30 June 1998

1 July 1997 to 30 June 1998

Underlying Profit Before Taxation

£0.1m

1 July 1998 to 30 June 1999

1 July 1998 to 30 June 1999

Underlying Profit Before Taxation

£0.7m

1 July 1999 to 30 June 2000

1 July 1999 to 30 June 2000

Underlying Profit Before Taxation

£2.1m

1 July 2000 to 30 June 2001

Share Price

178.50p

Dividend per Share

3.44p†

1 July 2000 to 30 June 2001

Underlying Profit Before Taxation

£5.8m

Market Capitalisation

£88.9m

September 2000

Dechra listed on the London Stock Exchange at 120 pence per share, with a market capitalisation of £60.0 million.

1 July 2001 to 30 June 2002

Share Price

123.00p

Dividend per Share

3.78p†

Share Price

178.50p

Dividend per Share

3.44p†

1 July 2001 to 30 June 2002

Underlying Profit Before Taxation

£7.5m

Market Capitalisation

£62.0m

December 2001

Vetoryl® launched in the UK.

April 2002

Acquired North Western Laboratories and Cambridge Specialist Laboratory Services for a consideration of £2.75 million, enabling Dechra to extend its service offering to the veterinary profession.

April 2002

Felimazole® launched in the UK.

May 2002

Acquired Anglian Pharma Plc for a consideration of £2.5 million which more than doubled Dechra's contract manufacturing revenues.

1 July 2002 to 30 June 2003

Share Price

87.50p

Dividend per Share

3.78p†

1 July 2002 to 30 June 2003

Underlying Profit Before Taxation

£6.7m

Market Capitalisation

£44.6m

April 2003

North Western Laboratories rebranded to NationWide Laboratories.

May 2003

Entered into a sub-licence agreement with Bioenvision Inc. to develop Vetoryl for future marketing in the US and Canada.

1 July 2003 to 30 June 2004

Share Price

149.50p

Dividend per Share

4.32p†

1 July 2003 to 30 June 2004

Underlying Profit Before Taxation

£8.1m

Market Capitalisation

£76.2m

December 2003

Entered into a European marketing agreement with Janssen Animal Health, allowing Janssen full marketing and distribution rights to Felimazole and Vetoryl in mainland Europe.

1 July 2004 to 30 June 2005

Share Price

211.50p

Dividend per Share

4.78p†

1 July 2004 to 30 June 2005

Underlying Profit Before Taxation

£9.7m

Market Capitalisation

£108.1m

November 2004

Granted a full EU licence for Felimazole and granted a UK licence for a new 2.5mg Felimazole tablet.

April 2005

Granted a range extension for a 30mg Vetoryl capsule.

April 2005

Opened a US operation based in Kansas City.

April 2005

Acquired Vetivex®, a licensed veterinary fluid therapy product for £0.8 million.

1 July 2005 to 30 June 2006

Share Price

240.00p

Dividend per Share

5.73p†

Share Price

211.50p

Dividend per Share

4.78p†

1 July 2005 to 30 June 2006

Underlying Profit Before Taxation

£11.0m

Market Capitalisation

£124.6m

July 2005

Received approval to market Vetoryl in 19 major European countries.

June 2006

Signed a development and marketing agreement for Vetoryl in Japan with Kyoritsu Seiyaku.

1 July 2006 to 30 June 2007

Share Price

348.00p

Dividend per Share

6.89p†

1 July 2006 to 30 June 2007

Underlying Profit Before Taxation

£12.7m

Market Capitalisation

£183.7m

December 2006

Acquired the intellectual property for Equidone® Gel.

April 2007

Acquired Leeds Veterinary Laboratories for £0.75 million.

May 2007

Secured a long term trademark licence and marketing agreement with Pharmaderm Animal Health for a consideration of US$5.0 million, to supply a range of dermatological, ophthalmic and optic products to the US veterinary market.

1 July 2007 to 30 June 2008

Share Price

420.00p

Dividend per Share

7.58p†

12,438,210

New shares issued

1 July 2007 to 30 June 2008

Underlying Profit Before Taxation

£16.9m

Market Capitalisation

£274.0m

January 2008

Acquired VetXX Holding A/S, a leading developer, producer and marketer of companion animal products, for a total consideration of £61.7 million.

1 July 2008 to 30 June 2009

Share Price

422.50p

Dividend per Share

8.36p†

1 July 2008 to 30 June 2009

Underlying Profit Before Taxation

£23.4m

Market Capitalisation

£276.9m

December 2008

VetXX integrated and rebranded Dechra Veterinary Products.

December 2008

Received FDA approval for Vetoryl in the USA.

May 2009

New therapeutic canine diet developed and marketed to aid treatment of osteoarthritis in dogs, known as Specific®.

June 2009

Received approval to market Felimazole in the US.

1 July 2009 to 30 June 2010

Share Price

385.00p

Dividend per Share

9.64p†

Share Price

422.50p

Dividend per Share

8.36p†

1 July 2009 to 30 June 2010

Underlying Profit Before Taxation

£26.1m

Market Capitalisation

£254.4m

November 2009

Achieved mutual recognition of Malaseb® in 17 European countries.

February 2010

DVP UK's logistics and finance function integrated into an European central logistic and shared service centre in Uldum, Denmark.

1 July 2010 to 30 June 2011

Share Price

490.75p

Dividend per Share

11.12p†

1 July 2010 to 30 June 2011

Underlying Profit Before Taxation

£30.1m

Market Capitalisation

£326.1m

October 2010

Acquired DermaPet® Inc., a Florida based dermatological business, for a total consideration of US$64.0 million. The acquisition strengthened Dechra's position as a leader in the worldwide veterinary dermatological market.

December 2010

Acquired Genitrix Limited, a privately owned veterinary company with a range of products complementary to Dechra's, for a total consideration of £6.4 million.

1 July 2011 to 30 June 2012

Share Price

486.00p

Dividend per Share

12.27p†

20,420,517

New shares issued

1 July 2011 to 30 June 2012

Underlying Profit Before Taxation

£33.0m

Market Capitalisation

£422.1m

January 2012

Acquired the worldwide rights (excluding Canada) to HY-50® for a cash consideration of CAD 8.03 million.

May 2012

Acquired Eurovet® Animal Health B.V., an expert in developing, registering, producing and marketing added value, companion and farm animal veterinary pharmaceutical products, for a total cash consideration of €135 million.

1 July 2012 to 30 June 2013

Share Price

690.00p

Dividend per Share

14.00p

1 July 2012 to 30 June 2013

Underlying Profit Before Taxation

£44.6m

Market Capitalisation

£601.3m

May 2013

Skipton and Bladel sites renamed Dechra Manufacturing. Announced the closure of our manufacturing site in Uldum, Denmark.

1 July 2013 to 30 June 2014

Share Price

723.50p

Dividend per Share

15.40p

Share Price

690.00p

Dividend per Share

14.00p

1 July 2013 to 30 June 2014

Underlying Profit Before Taxation

£39.8m

Market Capitalisation

£634.6m

August 2013

Divested Services Segment to Patterson Companies, Inc. for £87.5 million, creating a pure veterinary pharmaceuticals and related products business.

March 2014

Commenced trading in Italy.

May 2014

Acquired business and assets of PSPC, Inc. for a consideration of up to US$10 million.

1 July 2014 to 30 June 2015

Share Price

983.00p

Dividend per Share

16.94p

1 July 2014 to 30 June 2015

Underlying Profit Before Taxation

£45.1m

Market Capitalisation

£864.7m

January 2015

Commenced trading in Canada.

May 2015

Commenced trading in Poland.

1 July 2015 to 30 June 2016

Share Price

1172.00p

Dividend per Share

18.46p

4,775,835

New shares issued

1 July 2015 to 30 June 2016

Underlying Profit Before Taxation

£49.7m

Market Capitalisation

£1,087.0m

October 2015

Acquired 92.65% controlling interest in Genera® d.d., the oldest and largest manufacturer of animal health products in Croatia, for a total consideration of £26.8 million.

January 2016

Acquired 100% of Laboratories Brovel S.A. de C.V., a family owned veterinary pharmaceutical company located in Mexico City, Mexico, for a consideration of £3.3 million and a further £0.6 million contingent upon reaching registrations milestones.

January 2016

Commenced trading in Austria.

April 2016

Acquired Putney®, Inc., a leading developer of FDA approved CAP in the US, for a consideration of £134.2 million.

1 July 2016 to 30 June 2017

Share Price

1700.0p

Dividend per Share

21.44p

1 July 2016 to 30 June 2017

Underlying Profit Before Taxation

£77.0m

Market Capitalisation

£1,584.0m

October 2016

Acquired business and assets of Apex Laboratories Pty Ltd, a veterinary pharmaceutical company which manufactures, markets and sells branded generic prescription products for companion animals in Australia and New Zealand for a total consideration of AUD$55.0 million (£34.2 million).

March 2017

Entered a long term Intellectual Property Licensing Agreement with Animal Ethics Pty Ltd to sell and market Tri-Solfen® for all animal species in all international markets, excluding Australia and New Zealand. Acquired 33.0% of the issued share capital of Medical Ethics Pty Ltd (Medical Ethics), the parent company of Animal Ethics, for a total consideration of AUD$18.0 million (£11.0 million).

Continuing Our Growth Story

Continuing Our Growth Story

  • Clear Strategic Focus
  • Development Pipeline
  • Entrepreneurial and Innovative
  • Manufacturing Flexibility
  • Growing Animal Health Market
  • Focused Portfolio
  • Recognised Brand
  • Expanding International Focus
  • Talented People and Expertise
  • Strong Balance Sheet

Underlying Profit Before Taxation is defined as operating profit excluding amortisation of acquired intangibles and impairment of acquired intangibles, impairment of investments, acquisition expenses, fair value uplift of inventory acquired through business combinations, rationalisation costs, loss on extinguishment of debt, and fair value and other movements on deferred and contingent consideration

Adjusted for the bonus element of the Rights Issue.

20 Years of Strategic Growth

Dechra is a company that has consistently delivered on its strategic objectives resulting in a strong track record of growth.

Click on the blue flashing square to navigate though our 20 Years of Strategic Growth. Click on each segment to see more information on each milestone.

Welcome to Dechra Pharmaceuticals PLC

Dechra is an international specialist veterinary pharmaceuticals and related products business. Our expertise is in the development, manufacture, and sales and marketing of high quality products exclusively for veterinarians worldwide.

Highlights

Total Revenue

£359.3m

2016: £247.6m

CER: +28.3% AER: +45.1%

Underlying Operating Profit

£81.3m

2016: £52.9m

CER: +36.9% AER: +53.7%

Underlying Diluted Earnings Per Share

64.33p

2016: 42.65p

CER: +35.1% AER: +50.8%

Dividend Per Share

21.44p

2016: 18.46p

CER: +16.1% AER: +16.1%

Reported Operating Profit

£33.2m

2016: £19.5m

CER: +42.6% AER: +70.3%

Reported Diluted Earnings Per Share

27.93p

2016: 13.90p

CER: +69.1% AER: +100.9%

Continuing Our Growth Story

We have a defined strategy focused on four main drivers: portfolio focus, geographical expansion, pipeline delivery and targeted acquisition.

Our Business Model

Our objectives are to innovate, develop, register, manufacture, supply and market high quality products to the veterinary profession worldwide.

Geographical Footprint

We currently have our own sales and marketing organisations in 24 countries.

Creating long-term value

Dechra is a company that has consistently delivered on its strategic objectives resulting in a strong track record of growth.

Non-Executive Chairman's and Chief Executive Officer's Statement

Q&A with Ian Page

Q&A with Richard Cotton

Delivering our Strategy

Strategic Growth Drivers

Pipeline delivery icon

Pipeline Delivery

Portfolio focus icon

Portfolio Focus

Geographical expansion icon

Geographical Expansion

Acquisition icon

Acquisition

Strategic Enablers

Manufacturing icon

Manufacturing and Supply Chain

Technology icon

Technology

People icon

People

Strategy in Action

Our Strategy in Action case studies.

Product Development

Although some products may have a slightly different path, most novel and generic products follow a fairly standard process containing five phases, defined as: Evaluation, Feasibility, Development, Registration and Launch.

Corporate Social Responsibility

A responsible approach to our stakeholders and the wider community is considered by the Board to be important to the business.

How the Business Manages Risk

Effective risk management and control is key to the delivery of our business strategy and objectives.