 shares plunged on Wednesday after the company issued a profit warning.){kind=link}
Animalcare Group (LON:ANCR) shares plunged on Wednesday after the company issued a profit warning.
The veterinary services company warned that earnings will miss market expectations as a result of ‘competitive pressures’ alongside ‘gross margins of a changing sales mix’.
Expectations for the year December-end remain unchanged, despite a recorded 9.5 percent boost to sales sales to £91.9 million, surpassing management expectations.
Chris Cardon, CEO of Animalcare Group plc, commented:
“As a Board we are focussed on building long term shareholder value through continued strong cash generation, which enables us to invest in further growth via new product development, as well as maintaining our current dividend policy. We remain confident of the strategic rationale of a leading Pan-European animal-health business and the long-term share value that will come with it.”
Looking forward, the company said it hopes to continue to build shareholder value by continuing dividend payments.
In addition, it would look to outline a clear strategy for growth alongside further synergies and cross-selling opportunities into 2018.
Animalcare is a veterinary sales, marketing and product development company which was formed following the merge of Animalcare and Ecuphar NV back in July 2017.
Its products range from identichip microchips to pet welfare products and practice equipment.
Shares are currently trading -22.52 percent as of 12.48PM (GMT).
Also on the slide, shares in System1 (LON:SYS1) took a hit on Wednesday morning following a profit warning for the year.
The London-listed marketing and advertising group said it expects pre-tax profit for the year to be between £1.6 million and £2.0 million.
This proved well below initial guidance back in January of £6.3 million.
Shares in the System1 have since rebounded, up 6.6 percent as of 12.57PM (GMT).