Mutuelle Animaux en 7 étapes – ECO Veterinary UK Regulatory Notice: Résultat

By | juillet 2, 2018



















LONDRES – (FIL D'AFFAIRES) –

2 juillet 2018

ECO Animal Health Group plc ("ECO")
(AIM: EAH)

Résultats pour l'année se terminant le 31 mars 2018

ECO ANIMAL SANTE ANNONCE UNE AUTRE FORTE PERFORMANCE

VEDETTE

financement

  • Hausse des ventes de 9,4% à 67,2 millions de livres (2017: 61,4 M £)

  • Hausse de 12% du bénéfice d'exploitation à 14,1 millions de £ (2017: 12,6 millions de £)

  • BAIIA ajusté en hausse de 15% à 19,6 millions de livres (2017: 17,1 millions de livres)

  • Augmentation du dividende de 30% à 9,2p (2017: 7,1p)

  • Forte production monétaire liée aux opérations, générant une trésorerie nette de 21,3 £
    millions d'années plus tard (2017: 20,6 £)

opérations

  • Ventes d'Aivlosin® proches de 14%

  • Approbation des granules solubles dans l'eau pour le traitement respiratoire des porcs
    Maladie (SRD) en Amérique du Nord

  • Approbation des œufs de volaille en Egypte, en Malaisie, t
    Philippines, Turquie, Ukraine et Argentine avec zéro retrait
    période

  • Investissement continu dans de nouvelles voies de marché pour le développement de produits
    élargir notre gamme pour inclure les produits biologiques, humains et de stockage
    soutient la croissance future

Peter Lawrence, directeur général d'ECO Animal Health Group plc
Il a commenté:

"L'année a bien commencé avec un carnet de commandes solide et en croissance.
Alors que l’industrie vétérinaire mondiale continue de se renforcer, nous sommes
s'efforcer activement d'acquérir ou de développer des agents qui s'intègrent bien dans le nôtre
et sert notre marché spécialisé. Solde fiable de l'ECO
et une production monétaire constante place l'entreprise dans une position forte
profiter des opportunités. Je ne peux pas attendre
confiance pour produire un rapport en 2019 sur un autre résultat impressionnant.

contacts:

ECO Veterinary Group plc

Peter Lawrence

020 8336 6190

Marc Loomes

+358 20 8447 6906

Spiro Financial

Anthony Spiro

+358 20 8336 6196

Chanteur N + 1 (conseiller nommé)

Mark Taylor, Brough Ransom

+358 20 7496 3000

Peel Hunt LLP (courtier commun)

James Steel, dr. Christopher Golden

+358 20 7418 8900

ECO Animal Health Group plc est un leader du développement et de l'enregistrement
distribution et distribution de produits vétérinaires. nos produits
ces marchés en croissance mondiale favorisent la prospérité. Nos objectifs financiers
avec application prudente et responsable de la science
créer de la valeur pour nos actionnaires.

DÉCLARATION DE LA PRÉSIDENCE

Pour l'année se terminant le 31 mars 2018

Je suis heureux d’annoncer que l’équipe vétérinaire ECO l’a fait.
autre record pour l'année se terminant le 31 mars 2018.

ECO fabrique et commercialise des médicaments essentiels pour l'expansion
industrie mondiale de production de protéines animales. Le produit phare breveté du groupe
Le médicament Aivlosin® est traité de manière économique
maladies importantes du porc et de la volaille, entre les deux plus grandes croissances
segments de ces industries vitales. Les avantages généraux et souhaités
réduire la quantité d'antibiotiques utilisés dans la production alimentaire
produits d'origine animale directement aux consommateurs et t
autorités et les atouts d'Aivlosin®, qui sont t
doses faibles mais efficaces pendant une courte période, sous contrôle strict
vétérinaires.

Au cours de l’année sous revue, le CEO a continué de gagner en importance
autorisations de mise sur le marché. Possibilité de traitements multiples pour Aivlosin®
nouveaux marchés pour les poules pondeuses
autorisations de mise sur le marché récentes en Amérique du Nord a. t
le traitement des maladies respiratoires du porc est hautement efficace
plate-forme pour une croissance continue.

Nous avons récemment annoncé une nouvelle coentreprise en Irlande
Partenaires américains, Pharmgate LLC. Cet accord nous permet
Autorisation et vente des vaccins porcins approuvés par Pharmgate en Amérique du Nord
il développe de nombreux domaines importants et de nouveaux produits. cette
est le début d'une nouvelle expansion de notre gamme de produits
il comprend également les vaccins, ce qui représente une nouvelle et très grande opportunité de marché
ECO à.

Performance financière

L’indicateur de performance le plus important est l’EBITDA, le résultat avant intérêts,
impôts, amortissements et dépréciations, opérations de change et
paiements fondés sur des actions, qui ont augmenté de près de 15% à 19,6 millions de livres sterling
(2017: 17,1 m). La façon de calculer le BAIIA est pourquoi la direction
Il estime que c'est la mesure la plus appropriée du rendement de l'entreprise
et la justification de chaque ajustement se trouve dans t
comptes. Les ventes de l'exercice ont augmenté de 9,4% à 67,2 millions de livres sterling (2017: 61,4 millions de livres sterling)
et continuer à refléter notre politique de se concentrer sur les ventes
des marges plus élevées, les médicaments non génériques. Le bénéfice avant impôts est un
record de 13,9 M £ (2017: 13,5 M £). La taxe et la commission minoritaire ont augmenté de 1,7 million de livres sterling
l'année Cela reflète principalement deux facteurs qui restent forts
croissance du bénéfice et augmentation du bénéfice de notre filiale chinoise
contribution de l'opération américaine. Le bénéfice par action était de 14,2 cents
par action (2017: 16,3 cents) reflétant les commissions et les taxes des minorités.
La trésorerie générée par les activités s'est élevée à 15,8 millions £ (2017: 13,1 millions £).
L'argent sert à soutenir l'expansion prévue
technologie, recherche et développement et achat d’actions. Je
l'année dernière, il a été souligné qu'il y avait une différence significative
les conséquences du vote sur le Brexit. C'est pourquoi c'était
marge brute encourageante à 32,2 M £ (2017: 30,3 M £)
alors que les taux de change étaient à peu près les mêmes pour la livre sterling
par rapport à l'année dernière contre le dollar américain et un autre panier
monnaie. Le conseil d'administration est heureux d'annoncer qu'il accordera un acompte sur dividende sur 6 ans
paiement fondé sur des actions aux actionnaires
Inscription le 28 septembre 2018. A 9.2. dividende complet pour l'année
le taux d'intérêt par action est supérieur de près de 30% au niveau de l'an dernier
(2017: 7,1 pence). Notre politique de dividende progressif a
la confiance continue du conseil d'administration dans la croissance rentable future
affaires.

ECO, en tant que société d’Etat en croissance rapide, affirme que ECO
Les actionnaires et les abonnés peuvent obtenir des informations détaillées
sur la société et son management. Cette publication a
est une association de sociétés cotées reconnues et est inclus dans le document.
Vous pouvez également consulter les informations sur notre site Web (www.ecoanimalhealthGroupplc.com)
sur l'onglet Investor Relations et l'onglet AIM Rule 26.

Marketing et développement

Le CEO dispose actuellement de centaines d'autorisations de mise sur le marché dans le monde entier.
il vend ses produits dans près de soixante-dix pays. C'est un investissement
ce qui représente un total de quatre vingt dix millions de livres
à la concurrence potentielle et soutient le succès commercial continu
la société.

L’ECO a obtenu l’autorisation de mise sur le marché du médicament européen.
Agence (EMA) à utiliser Aivlosin® 625 mg / g soluble dans l’eau en 2016
granules de poulet, mangeant des œufs destinés à la consommation humaine. Ce traitement
Il n'y a aucun temps d'attente de drogue, ce qui signifie que l'œuf est encore capable
provenant de volailles traitées et récupérées doivent être collectées et envoyées directement
au marché. Dossiers réglementaires pour approbation, un
Une étape importante dans le développement d’Aivlosin® est une
le nombre des principaux pays producteurs d’œufs au monde. Pendant la période
en Egypte, en Malaisie, aux Philippines
La Turquie, l’Ukraine et l’Argentine (ces deux derniers pays aussi
approbation de la forme granulée soluble dans l’eau pour les porcs).

Ce sont les licences avec d'importantes approbations nord-américaines
Utilisation de granules hydrosolubles Aivlosin® à 625 mg / g pour la SRD
porcs avec de nombreux agents pathogènes respiratoires bactériens importants,
générer des profits importants.

Nous avons continué à faire des investissements importants dans nos produits.
pipeline de projets de développement. Cela inclut la construction de ceux existants
nouvelles zones géographiques et nouveaux porcs
volailles, qui ont toutes un potentiel de croissance continu
vendre nos médicaments brevetés. Nous avons également commencé à investir dans le personnel
et développement de produits dans les secteurs de la santé animale
en particulier des vaccins (agents biologiques) dans lesquels nous n’avions pas été
cadeaux.

opérations

Les ventes mondiales ont augmenté de 9,4% à 67,2 millions de £ (2017: 61,4 millions de £)
dans presque toutes les grandes zones géographiques à forte performance. vente
Notre produit phare breveté Aivlosin® a
les maladies économiquement importantes des porcs et de la volaille ont augmenté
14% par rapport à la même période l'an dernier. Aivlosin®
sous contrôle vétérinaire strict à des doses faibles mais efficaces
pour le traitement à court terme de certaines maladies. C'est bon
directives actuelles pour l’utilisation responsable des antimicrobiens,
sont bien appliquées, favorisent le bien-être des animaux et la sécurité alimentaire
il est important de réduire la quantité d'antibiotiques utilisés dans l'agriculture.

Les ventes aux États-Unis ont augmenté de 35% en livres
Il reflète la forte croissance de l'eau Aivlosin®
composition de granulés solubles à utiliser chez les porcs intestinaux
maladies (intestinales). Juillet a. T.
Ce produit a été approuvé par la Food and Drug Administration (FDA) des États-Unis.
indication de nouvelle étiquette. C'était le contrôle avec SRD
Bordetella bronchiseptica, Haemophilus parasuis, Pasteurella multocida,
et Streptococcus suis, qui sont une respiration bactérienne importante
les agents pathogènes. Les ventes au Canada ont augmenté de 20% par rapport à l'année précédente
l'application SRD est approuvée par les médicaments vétérinaires
Direction canadienne de la santé en décembre 2017

La croissance des revenus de l'Asie du Sud-Est est particulièrement forte 23
pour cent. Nouvelles licences pour les oiseaux nouvellement introduits avec zéro retrait
Cette période est très bénéfique pour les producteurs d’œufs, qui sont par conséquent
les œufs placés lors de la manipulation des oiseaux ne doivent pas être détruits. cette
l'avantage du produit est le fondement de relations plus étroites
les grands producteurs de volaille, en particulier les plus importants producteurs d'œufs
Asie du Sud-Est. Les autorisations de marketing sont pour cet usage
toujours en suspens en Inde, au Japon et en Chine, ce qui sera fini dans le temps
gagnants précieux.

La forte croissance des ventes d'Aivlosin® au Japon, à l'image de notre développement
des relations plus étroites avec des clients clés sur ce marché plus mature.

Les ventes d'Aivlosin® en Chine sont une filiale de Zhejiang ECO Biok Animal
Les produits de santé n’ont augmenté que de 10% au cours de la période moins favorable
et l'initiative stratégique ciblée de la volaille
producteurs. En Chine, le bénéfice net a augmenté de plus de 61%
l’année dernière à la même période, comme en témoigne le
notre stratégie globale.

Aivlosin® a la meilleure performance dans la plupart des
les zones géographiques d'Amérique latine ont continué à s'affaiblir
marchés, notamment au Brésil, où les ventes ont chuté de plus de 25%.
Cette performance décevante a principalement entraîné une régulation lente
réponses et généralement un environnement économique faible. Actuellement ils sont
signes de traitement au Brésil, entraînant une amélioration des ventes
dans les mois à venir. En revanche, les ventes au Mexique ont été extrêmement élevées
reflète fortement l'attention accrue portée aux comptes locaux
gestion.

Les marges de vente Ecomectin® sont nos offres différenciées
préparations antiparasitaires pour les ruminants, les porcs et les chevaux suite
garde-le bien. La croissance des ventes a été forte au Mexique
la performance. Les ventes des autres produits du portefeuille ECO ont été importantes
Hausse de 17%, la Chine et le Mexique sont en circulation.

personnes

Au nom de tous les investisseurs, je voudrais à nouveau remercier les 200 employés
Treize bureaux dans le monde entier pour leur contribution
pour la croissance et le succès ECO. Leur savoir-faire,
La conscience et le travail acharné permettent au CEO de faire face à l'avenir
confiance.

vue

L'année a bien commencé avec un carnet de commandes solide et en croissance. Comme
l'industrie vétérinaire mondiale est toujours solide, nous sommes actifs
nous nous efforçons d'acheter notre portefeuille de médicaments pratiques
sensation sur le terrain. Bilan et trésorerie constante du CEO
la génération met l'entreprise en position de force pour en tirer parti
toutes les options possibles. Je fais confiance avec confiance
En 2019, il a signalé un autre résultat impressionnant.

Peter A Lawrence
président
29 juin 2018

RAPPORT STRATEGIQUE

financier

Les ventes du groupe au 31 mars 2018 ont augmenté de plus de 9% à 67,2 millions de livres sterling.
Vente de médicaments thérapeutiques brevetés (prise en charge de la maladie),
Aivlosin® a également augmenté de plus de 13,6% par rapport à l'année précédente
année.

EBITDA (Résultat avant intérêts, impôts et amortissements). T.
dépréciation, paiements fondés sur des actions et mouvements de change)
est le principal indicateur de performance (décrit à la section 5)
et le BAIIA ont augmenté de près de 15% pour atteindre près de 19,6 millions de livres
nouveau record pour l'entreprise.

La trésorerie du groupe à la fin de l'année s'élevait à 21,3 millions de livres sterling.

Les indicateurs de performance les plus importants

Les principaux indicateurs de performance du groupe ("KPI") sont:
la performance financière du groupe et sa force
pour les actionnaires.

Les indicateurs de performance clés sont résumés comme suit:

financier 2018 2017 2016

Chiffre d'affaires £ mil

67,2

61,4

47,1

Bénéfice brut £ mil

32,2

30,3

21

Marge brute%

47,9

49,4

44,6

EBITDA £ m (voir la note 5 des comptes)

19.6

17.1

11.1

Soldes de trésorerie sans emprunt de M £

21.3

20,6

15,7

NON financier

Santé et sécurité – Accidents majeurs signalés pendant l'année

zéro

zéro

zéro

monnaie

Selon les IFRS, les actifs financiers sont convertis à la fin de la période.
en devise étrangère sur la base des taux de fin de période. C'est la notre
pratique que la plupart des soldes monétaires ne sont pas transformés
mais pour payer les fournisseurs étrangers en monnaie locale
investir dans l'entreprise.

Risques et incertitudes

Toutes les entreprises font face à de nombreux risques stratégiques et opérationnels
incertitudes et le conseil d’administration estime que les facteurs suivants peuvent affecter
performance de groupe:

Mouvements de change

Le groupe exporte ses produits dans près de 70 pays et est exposé à
mouvements en monnaie. Nous ne convertissons pas les grosses ventes
monnaies à utiliser des matières premières et un
services. Cela fonctionne comme une couverture étendue
les fluctuations des taux de change.

Risques commerciaux

Les vétérinaires subissent une pression croissante pour prescrire des médicaments
conformément à l'étiquette du produit. Aivlosin® rencontre
toutes les directives actuelles a. t
antimicrobiens pour animaux producteurs d'aliments et jamais utilisés chez l'homme
Santé. Le groupe consacre des efforts et des ressources considérables
les autorités et les conseillers principaux pour veiller à ce qu'ils continuent
répondre aux spécifications.

Risques d'approvisionnement

Le groupe dépend de certains fournisseurs, certains
matières premières et maintient l'interruption d'activité
tous. À long terme, le groupe continue de construire
partenariats de fabrication stratégiques au niveau international et
stocks de sécurité pour protéger la chaîne logistique mondiale complexe.

Dépendance envers les clients clés

Le groupe dépend de tous les clients et distributeurs
le nombre de zones que vous vendez. Une ou plusieurs pertes
Les clients clés peuvent conduire à des ventes inférieures aux prévisions et peuvent avoir
affecter considérablement l’étendue de son fonctionnement. Le groupe essaie
minimise le recours aux secteurs clés et aux clients individuels
élargir la base de ventes des distributeurs à de nouvelles régions du monde
développer de nouveaux produits et applications.

maladie

Bien que les épidémies de maladies pour lesquelles nos produits ont été rapportés soient
Généralement bénéfique pour nos ventes, certaines épidémies sont temporaires
affecte la production, perturbe la libre circulation des animaux et l’affecte
commerce. Demande globale continue de protéines animales
cependant, la baisse de l’offre fait monter les prix et donc
pour ceux qui ont pris des mesures efficaces pour prévenir ou contrôler
la maladie. À moyen terme, la plupart des éclosions sont généralement survenues
stratégies d'intervention appropriées.

Moment de l'approbation des autorisations de mise sur le marché

Aivlosin® a été autorisé à utiliser des porcs et / ou des volailles en Europe,
aux États-Unis, au Canada, au Japon, en Chine et dans de nombreux autres organismes de réglementation
globalement, mais le calendrier exact des nouvelles autorisations de mise sur le marché
les licences sont difficiles à prédire. Autorités de régulation
poser plus de questions ou demander un travail expérimental supplémentaire
avant d’accorder une licence, ce qui peut entraîner des
Delay. Par conséquent, nous consacrons des ressources importantes à notre travail de licence.
afin de résoudre les problèmes de cette nature
possible.

Dépendance à l'égard d'employés clés

Le groupe est lié à un nombre relativement réduit de personnel clé
la taille de l'entreprise et la perte d'une ou deux personnes
aurait probablement un effet néfaste sur les entreprises. leadership
a l'intention d'examiner la situation de l'année en cours et le fera
réduire les risques, le cas échéant et si nécessaire
candidats.

stratégie

ECO Animal Health Group plc est un leader du développement et de l'enregistrement
distribution et distribution de produits vétérinaires. La société a
il est devenu une grande joint-venture avec des filiales britanniques
dans près de 70 pays. ECO a été donné
Plus de 600 médicaments enregistrés dans le monde entier
produits principalement, mais pas exclusivement, pour traitement
différents états de porc et de volaille. La société est avancée
la science à proposer une expertise large et efficace
traitements qui sont soutenus par un service client fort.

La société poursuit sa croissance organique
élargir les marchés et élargir la clientèle. Continuer
développe des recherches et d’autres applications pour sa création et sa création. t
gammes de substances médicamenteuses éprouvées, y compris de nouveaux ingrédients actifs
espèces. ECO examinera les opportunités d’acquisition au fur et à mesure,
à condition qu’ils atteignent leurs objectifs de marché, financiers et stratégiques.

Événement de balance

La société a versé un dividende de 1210 000 £ àe Avril 2018
actionnaires.

Le point sur le commerce et les perspectives

L’année en cours a déjà bien commencé en termes de croissance continue et de croissance en particulier
bonne demande des clients nord-américains, mexicains et japonais. cette
Je suis particulièrement heureux de noter que les premiers signes de reprise sont visibles au Brésil.
On s’attend à ce que les ventes sur ce marché continuent de croître
nommer un nouveau distributeur après la fin de l'année.

Peter Lawrence
président
29 juin 2018

RAPPORT DE GOUVERNANCE D'ENTREPRISE

L’objectif du conseil d’administration est d’assurer la gestion de la société.
les avantages à long terme des actionnaires, cependant
en ce qui concerne les employés, les clients, les fournisseurs et notre impact
environnement et les communautés où nous opérons.

Nous appliquons des normes de gouvernance d'entreprise appropriées et appropriées
notre culture, statut, profil, taille et circonstances sont pertinents. que
Les exigences du code AIM doivent être satisfaites par la société à partir du 28 septembre 2018.
avec le nouveau code de gouvernance d'entreprise de la QCA.

Le conseil

La principale tâche du conseil d’administration est de renforcer les intérêts à long terme des actionnaires
par:

  • Définir la stratégie générale et la direction du groupe;

  • Créer et maintenir des contrôles, des processus de contrôle et des risques
    les politiques de gestion pour s'assurer qu'il est contre
    le groupe travaille efficacement
    gouvernance;

  • Approuver les budgets et comparer les performances aux budgets
    et approbation des états financiers;

  • Approbation des accords financiers et des projets individuels;

  • Approbation des nominations aux postes de direction, en particulier des nominations au conseil d’administration; et

  • Examen et approbation des politiques de rémunération.

Composition du conseil d'administration et changements au conseil d'administration en cours d'année

L'ensemble du corps est responsable des actionnaires
gestion et réussite du groupe et efficacité
contrôles de l'évaluation et de la gestion des risques.

Le 31 mars 2018, le conseil d’administration était composé de quatre administrateurs non exécutifs.
Directeurs généraux et deux directeurs généraux indépendants. court
Les biographies des administrateurs en fin d’année sont définies
ci-dessous. Au cours de l’année, David Danson, administrateur non exécutif, a pris sa retraite.
Après 9 ans de service, et dr. Andrew Jones, un
un directeur général indépendant et indépendant a été nommé au conseil.

Peter Lawrence MSc, BSC, DIC, ACGI

Président non exécutif

YOB 1948

Peter Lawrence a fondé la société en 1972
1986
En 1995, il a rejoint Amberley Group plc, une société entièrement cotée
Société, administrateur et président, 1994 et quatre ans
VCT entièrement coté et Anpario plc (anciennement Kiotech International)
à AIM. Il était directeur de Higher Nature Ltd.
qui est support VCT et technologies Alga
private equity. A remporté l'entrepreneur AIM de l'année
En 2005, et possède une vaste expérience, non seulement dans les affaires et
la motivation des employés, mais la gouvernance d'entreprise et la ville
expérience. Il a dirigé la société en tant que président et a vu la société
la capitalisation est passée de 9 millions à 400 millions de livres sterling,
acquisitions, levée de fonds et fusion. Peter n'est pas devenu un exécutif
Président en janvier 2018.

Marc Loomes BVSc, MRCVS

Chef de la direction

Nommé avant le 1er décembre 2005

YOB 1961

Marc a rejoint ECO Animal Health en 2004 et est devenu MD en 2005 et PDG
2010.

Marc, vétérinaire formé et membre du Collège royal
Vétérinaires, top management international
expérience des industries vétérinaires et phytosanitaires
Blue chip en Afrique du Sud avec des multinationales
Allemagne, Suisse et Royaume-Uni.

Il est capable d’équilibrer vision stratégique et équilibre opérationnel
livraison aux entreprises.

Brett Clemo BA (Hons)

Directeur général

Nommé avant le 1er décembre 2009

YOB 1962

Brett a rejoint ECO Animal Health en 2006 en tant que directeur mondial
Les opérations ont été nommées au conseil d'administration en 2009 et sont devenues président du conseil d'administration.
La Chine et le Japon en 2010.

Il a plus de 30 ans d'expérience dans le secteur des sciences de la vie.
ICI, AstraZeneca et Syngenta, et de nombreux leaders
rôles internationaux en ingénierie, fabrication, approvisionnement et technologie
Chaîne et direction générale. C'est une équipe orientée résultats
est un chef de file qui possède une grande expérience des processus d’entreprise et
stratégie.

Kevin Stockdale BSA ACA

Directeur de l'économie

Nommé le 3 août 2007

YOB 1965

Kevin avait obtenu son diplôme de comptable agréé en 1990 et était agent financier
Directeur d'Interpet Kft. T.
Lawrence PLC, tandis qu'Interpet était une filiale du groupe.
Interpet a été vendu en 2004 et Kevin est resté financièrement
Directeur. En septembre 2007, il rejoint le groupe en tant que finance
Directeur.

Kevin est comptable agréé depuis plus de 25 ans.
à l'origine dans la pratique, mais a passé plus de 20 ans
les industries animales et vétérinaires d'accompagnement. L'initiale
la formation et les expériences ultérieures l'ont quitté
rendre compte avec précision de la situation actuelle et projetée du Groupe
performance et potentiel de comptabilité, de négociation et
questions de réglementation liées aux questions en litige.

Julia Trouse

Directeur général et secrétaire général

19 mai 2004 a été nommé

YOB 1966

Julia a rejoint le groupe en 1993 en tant que directeur financier de Petworld.
Superstores Ltd. et directeur financier du groupe de sociétés
En 1999 et secrétaire de groupe de la société en 2004
Août 2007

Julia a une riche expérience en comptabilité et
contrôle interne. Il est également membre du conseil d'administration de Zhejiang ECO Biok
Animal Health Products Ltd. en Chine et ECO Animal Health Japan
Auditeur interne inc et groupe.

Anthony Rawlinson ACA BA (Hons)

Directeur Général Indépendant

Nommé avant le 1er janvier 2015

YOB 1957

Tony Comptable agréé, avec plus de 30 ans d'expérience en finance d'entreprise
expérience dans le conseil de petites sociétés cotées. Après avoir passé 14
Henry Ansbacher & Co et Strand Partners
Dowgate Capital Consultants en 2001 et a dirigé la croissance et le développement.
Il était également président de la société mère de l’AIM, Dowgate.
Capital vendu à un concurrent
Fondée en 2010 par Cairn Financial LLP, une
De nombreuses entreprises AIM et consultants d'entreprise
société de conseil.

Andrew Jones PhD, BSc (Hons)

Directeur Général Indépendant

Nommé avant le 1er décembre 2017

YOB 1960

Andrew a plus de 32 ans d'expérience dans la vie internationale
entreprises à vocation scientifique, y compris Syngenta AG., Arysta Lifesciences
Inc. et Phoqus Pharmaceuticals Plc. Il a travaillé pendant ce temps
développement de produits, ventes et marketing internationaux, fusion et
acquisition et gestion générale.

Il dirige actuellement sa propre société de conseil Trioza Limited,
qui fournit des conseils stratégiques pour la santé des animaux, la
protection et semences.

Andrew est titulaire d'un baccalauréat ès sciences et d'un doctorat en biologie agricole.

Andrew crée un important marketing stratégique et commercial
expérience et compétences en développement.

La composition du conseil d'administration est contrôlée par le comité de nomination.
Le conseil d’administration est convaincu qu’il offre un équilibre efficace et approprié
compétences et expérience. Le conseil d’administration est également convaincu que
équilibre entre indépendance et connaissance du groupe
vous permet d'accomplir efficacement vos tâches et responsabilités. tous
Les administrateurs sont encouragés à faire preuve de jugement indépendant
de manière constructive défier d'autres administrateurs si nécessaire.

Tony Rawlinson et dr. Andrew Jones, tous deux directeurs généraux
indépendant du leadership et des pratiques libres
indépendance du jugement.

Le conseil a mis en place des procédures pour identifier et surveiller les
ou conflit d'intérêts réel.

Le conseil d’administration a également mis au point des procédures pour s’assurer que les règles AIM
et avoir une relation étroite avec la société
Conseiller nommé, chanteur N + 1.

Tous les administrateurs sont d'abord nommés par les actionnaires
L'Assemblée après et après leur nomination
rotation.

Contrôles internes et gestion des risques

Le conseil d'administration est responsable du système de contrôle interne du groupe.
d'examiner l'efficacité de cette. Le système est conçu pour
au lieu d'éliminer le risque de ne pas atteindre le groupe
objectifs stratégiques, et seulement raisonnables mais non absolus
fournit une assurance sur les anomalies ou les pertes significatives.

Le conseil d'administration surveille les audits financiers en surveillant la configuration et l'approbation.
budget annuel et revue régulière de la gestion mensuelle
comptes. Les comptes d'opérateurs contiennent de nombreux indicateurs
est de réduire la possibilité d'erreurs financières
déclarations.

Le groupe détermine les niveaux d'autorisation pour les dépenses
passer des commandes et signer des autorités. Flux de trésorerie quotidiens
Le groupe est coordonné et supervisé par la direction financière. la
La direction surveille également les flux de trésorerie du groupe.

Le conseil d'administration maintient un processus continu d'identification, d'évaluation et d'évaluation
la gestion des risques significatifs au sein du groupe a
un examen complet des risques financiers et financiers. t
pas de problèmes financiers.

Si la gestion des risques opérationnels nécessite des conseils externes, cela est
demandé plus de conseillers experts.

Tâches du conseil d'administration

Le rôle de président non exécutif et de directeur général

Il y a une division claire des responsabilités entre les non-exécuteurs
Le président et chef de la direction. Le président est responsable
la gestion du conseil d'administration et la stratégie appropriée
focus et direction. Le PDG est responsable des propositions
l'orientation stratégique du conseil d'administration, comme cela a déjà été fait
approuvé et supervisé par la direction du groupe.

Le rôle des administrateurs indépendants

Le rôle de non-PDG indépendant est la remise en question
      és megkérdőjelezi az ügyvezető igazgatókat, és ahol csak lehetséges, segíti
      stratégiai javaslatok kidolgozása, felülvizsgálata és kommentálása
      a Társaság pénzügyi beszámolási rendszereinek integritása és a t
      az általuk nyújtott információ; megfelelő szabványok ajánlása
      vállalatirányítás; belső ellenőrzési rendszerek felülvizsgálata; annak biztosítása
      A kockázatkezelési rendszerek robusztusak és a vállalati teljesítmény felülvizsgálatát végzik
      és annak biztosítása, hogy a teljesítményt a részvényesek jelentik.

Igazgatósági és bizottsági ülések

Az Igazgatóságnak hivatalos döntési ütemterve van.
      Az évente legalább 4 teljes bizottsági ülést tartanak
      amelyek a lehető legjobban kötődnek a Csoport pénzügyi beszámolójához és
      kereskedési naptárak. További találkozókat tartanak szükség szerint. Az asztal
      az alábbiakban az igazgatók igazgatósági ülésein és igazgatósági ülésein szerepel
      bizottsági ülések a 2018. március 31-én végződő évben.

Az igazgatóság és bizottságai megfelelő és időben tájékoztatást kapnak
      minden ülés előtt. Minden ülés és hivatalos ülés napirendjére kerül sor
      A bizottsági bizottsági dokumentumok az ülések megkezdése előtt néhány nappal kerülnek terjesztésre
      hely. Minden igazgató megtámadhatja a javaslatokat a meghozott döntésekkel
      vita után. Bármely igazgató kérheti, hogy aggodalomra hívják fel a figyelmet
      Az ülések jegyzőkönyvei, amelyeket minden igazgatónak eljuttatnak. Különleges
      az ülésekből eredő fellépéseket az igazgatótanács állapítja meg, vagy a megfelelő
      bizottságot, majd azt a vezetés nyomon követi.

Az igazgatók rendelkezésére állnak azok a tanácsok vagy szolgáltatások, amelyekre szükségük van
      feladataikat.

PLC igazgatósági ülések

Bizottsági ülések

Könyvvizsgálat

Díjazás

jelölések

Választható
résztvenni

Részt vett

Választható
résztvenni

Részt vett

Választható
résztvenni

Részt vett

Választható
résztvenni

Részt vett

Péter
Lawrence

4

4

1

1

1

1

Marc
Loomes

4

4

1

1

1

1

Brett
Clemo

4

4

1

1

Julia
Trouse

4

4

Kevin
Stockdale

4

4

David
Danson

3

3

1

1

Tony
Rawlinson

4

4

2

2

1

1

1

1

Andrew
Jones

1

1

1

1

1

1

1

1

The Board delegates specific responsibilities to three board committees,
      as shown below.

Board Committees

The Board is supported by the Audit, Remuneration and Nominations
      Committees, each of which has access to information, resources and
      advice that it deems necessary, at the company’s cost, to enable the
      committee to discharge its duties. These duties are set out in the Terms
      of Reference of each committee which are available at www.ecoanimalhealthgroupplc.com
.

The Audit Committee is comprised of Tony Rawlinson and Dr Andrew Jones,
      both Independent Non-Executive Directors. The responsibilities of the
      Audit Committee and their report for the year are set out below on pages
      15 to 16.

The Remuneration Committee is comprised of Dr Andrew Jones, Tony
      Rawlinson, Peter Lawrence and Marc Loomes. The Nominations Committee
      decided that it is helpful to have the CEO present to provide advice on
      remuneration practices in the industry. He does not attend discussions
      that relate to his own remuneration. The responsibilities of the
      Remuneration Committee and their report for the year are set out below
      on pages 16 to 17. Details of the Group’s remuneration policy and how
      that policy was implemented during the year are set out on page 16 to 17.

The Nominations Committee comprises Peter Lawrence, Marc Loomes, Brett
      Clemo, Dr Andrew Jones and Tony Rawlinson. The responsibilities of the
      Nominations Committee and their report for the year are set out below on
      pages 17 to 18.

Communication with shareholders

The Board is committed to communicating openly with shareholders to
      ensure that its strategy and performance are clearly understood. The
      Board communicates with shareholders through the Annual Report and the
      Interim Statement, trading and other announcement made on RNS and at the
      Annual General Meeting where the board encourages investors to
      participate. The Company also maintains a website www.ecoanimalhealthgroupplc.com
      which contains information on the Group’s business and corporate
      information. Following the announcement of the Company’s half year and
      full year results the Chairman and Chief Executive, together with other
      directors, make presentations to institutional shareholders, private
      client brokers and investment analysts. Periodic meetings are held with
      existing and prospective institutional and other investors. The
      Company’s brokers also produce research notes on the Company from time
      to time.

Corporate Governance Code

The Company is traded on the AIM market of the London Stock Exchange and
      as such complies with the AIM Rules for Companies. We apply corporate
      governance standards that are appropriate and relevant to our culture,
      status, profile, size and circumstances. As required by AIM Rules, from
      28 September 2018, the Company will apply the new QCA Corporate
      Governance Code.

High standards of Corporate Governance are a key priority of the Board.

Modern Slavery Act 2015 Statement

Our Policy

ECO Animal Health Group Plc (ECO) is opposed to slavery and human
      trafficking in any part of our business or our supply chain. We are
      therefore committed to ensuring that we have suitable procedures and
      actions in place to identify and prevent these practices. This statement
      is also shown on the Group’s website.

Our Business

ECO develops, licences and markets pharmaceutical products for global
      animal health markets. ECO is a public company trading on the AIM market
      of the London Stock Exchange and is headquartered in the UK employing
      approximately 200 people across 13 global offices. It is a semi-virtual
      company making extensive use of contract research organisations and
      third party manufacturers to conduct our research and produce our
      products. We sell in almost 70 countries via subsidiaries, joint
      ventures, or 3rd party distributors.

Our Supply Chains

All of ECO’s supply chains operate within the heavily regulated
      pharmaceutical sector and must comply with the Good Manufacturing
      Practice (GMP) and Good Distribution Practice (GDP) requirements to
      ensure that our products are consistently produced, controlled and
      shipped according to quality standards. National regulators undertake
      regular inspections and ECO conducts its own investigations of its
      suppliers and third party manufactures to ensure continued GMP
      compliance.

As part of our compliance with the Group’s Anti-slavery and human
      trafficking policy, the following steps have been taken:

  • Mapping the supply chains and identified that the areas of high risk
            that are associated with the elements of the supply chain which are
            located in China.

  • Training a number of ECO staff to undertake audits of suppliers and
            third-party manufacturers to be able to identify potential risk areas
            in the supply chains and alert the Global Operations Director to any
            concerns.

  • Undertaking audits at 4 of the higher risk API suppliers and third
            party manufactures in China. During the audits, no evidence of modern
            day slavery practices have been identified.

  • Alerting all current suppliers and third party manufacturers of the
            Group’s Modern Day Slavery Policy and demanding confirmation of their
            local compliance.

  • Ensuring all new supplier contracts are evaluated for compliance with
            the Modern Slavery Act 2015.

Audit Committee Report

The Audit Committee comprises Tony Rawlinson (Chairman) and Dr Andrew
      Jones who succeeded David Danson when he retired from the board on 1
      December 2017.

The Audit Committee meets at least twice a year, linked to the timing of
      the publication of the Group’s interim and final results. The Audit
      Committee also meets on an ad hoc basis when necessary.

Terms of reference of the Audit Committee

The Audit Committee operates within specific terms of reference which
      include:

  • Considering the appointment of external auditors

  • Reviewing the relationship with external auditors

  • Reviewing the financial reporting and internal control procedures

  • Reviewing the management of financial matters and focusing upon the
            independence and objectivity of the external auditors

  • Reviewing the consistency of accounting policies both on a year to
            year basis and across the Group

The Audit Committee can call for information from the management
      committee and consults with the external auditors directly when they are
      required to do so.

Report of the Committee

The Audit Committee has met with the external auditors during the course
      of the year to monitor progress and discuss any issues arising.

Since Kreston Reeves have been in place as the Company’s auditors for
      many years, the Committee decided to initiate a review and seek tenders
      from alternative audit firms. In addition to the incumbent audit firm,
      two other firms made proposals and presented to the Audit Committee and
      members of the Board in May 2018. The Committee was keen to ensure that
      any new firm appointed was able to demonstrate that it had the global
      reach and experience appropriate for a business of the nature and size
      of the Group and would be more beneficial to the company. The process is
      ongoing and the Committee will make a decision on this matter later in
      the Summer.

The Committee has also initiated a review of the Company’s financial
      controls and procedures which is ongoing and will report further on this
      in next year’s Corporate Governance Report.

The Board decided to upgrade the Company’s accounting systems and
      install a new SAGE ERP X3 accounting system. This has involved a
      significant amount of extra work and expense, but it is pleasing to
      report that the bulk of the implementation work has been completed and
      the new system is operating effectively. The new system is cloud based
      and integrates our business processes including purchasing,
      manufacturing controls and real time inventory with sales and financial
      management. The new system will speed up the financial reporting
      processes and reports for the Board’s review.

The Company decided to join the QCA during the year and are taking full
      advantage of the publications and forums provided for the benefit of the
      Company.

Priorities for the year ahead

Priorities for the coming year will be to complete the review of
      auditors and the financial controls and procedures review. The Board has
      decided that the auditors will undertake a review of the interim
      accounts prior to Board approval.

Remuneration Committee Report

The Remuneration Committee is comprised of Andrew Jones (Chairman), Tony
      Rawlinson, Peter Lawrence and Marc Loomes.

Role of the Remuneration Committee

The Remuneration Committee reviews and determines on behalf of the Board
      and shareholders of the Company the pay, benefits and other terms of
      service of the executive directors of the Company and the broad pay
      strategy with respect to senior Company employees.

Remuneration Policy

The objective of the Company’s remuneration policy is to facilitate the
      recruitment and retention of executives of an appropriate calibre, to
      ensure that the senior executives of the Company are provided with
      appropriate incentives to encourage enhanced performance and are, in a
      fair and responsible manner, rewarded for their individual contributions
      to the success of the Company.

Strategic alignment

The Remuneration Committee is satisfied that the pay that can be earned
      is appropriate for a company of comparable size and complexity, at each
      level of performance. The delivery of the Company’s short term corporate
      goals is incentivised by offering a cash-settled bonus linked to the
      achievement of pre-defined levels of EBITDA, which is the key metric the
      Board considers in monitoring corporate performance. Long term value
      generation is underpinned by an incentive plan normally based on share
      options. All of the Executive Directors have significant exposure to the
      Company’s share price through shares and options over the Company’s
      shares.

Remuneration in practice

The remuneration that the Company offers to its Executive Directors
      continues to be based on four principal components:

1. Basic Salaries and Other Compensation – Basic salaries are determined
      by the Remuneration Committee bearing in mind the salaries paid in
      comparable businesses of similar size and complexity and other
      AIM-traded companies. Other Compensation includes the provision of
      company cars (or a salary alternative), private medical and critical
      illness insurance.

2. Short-term incentives – Bonuses are payable to staff (including the
      Executive Directors) according to the achievement by the Group of
      certain predetermined profit targets. The amount of bonus payable on
      achievement of the target is set at the level felt appropriate to
      provide the necessary incentive, with appropriate adjustments to the
      bonus payable in the event of over- or under-achievement against those
      targets. In addition, bonuses are adjusted for personal performance and
      the amount of bonus paid can also reflect any substantial periods of
      absence or unavailability of the employee.

3. Long-term incentives – The Company operates a share option scheme
      covering all permanent employees under which share options are normally
      granted once in each year, or in some circumstances can be granted on
      promotion. Options vest on the third anniversary of the date of grant,
      approved options can then be exercised until the tenth anniversary of
      grant and unapproved options until the seventh anniversary of grant. The
      exercise price of the options is set at the market value of the
      Company’s shares at the time of grant, so that the individual only
      benefits if there has been share price growth. The share option scheme
      is overseen by the Remuneration Committee which determines the terms
      under which eligible individuals may be invited to participate,
      including the level of awards. The scheme utilises HMRC approved options
      to the extent possible and tax unapproved options thereafter. The number
      of share options issued over the last 10 years has exceeded the
      guideline ceiling of 10% of issued share capital in a rolling 10 year
      period recommended by the Investment Association. In order to work
      towards meeting the recommendation, the Remuneration Committee therefore
      decided not to issue share options to Board Directors in the 2017-18
      financial year, but instead awarded an additional cash bonus in lieu of
      options. In future, the Company plans to use a cash based “phantom”
      share option scheme for Board Directors until the number of share
      options issued falls within the 10% guideline. The phantom scheme will
      aim to replicate the terms and rules of the existing share option share
      scheme, but any gains will be realised through payment of a cash bonus
      rather than through sale of shares.

4. Pensions – There is a compulsory government contribution scheme for
      all executive directors and employees. In addition, Kevin Stockdale has
      a defined contribution arrangement in place. Benefits in kind are not
      pensionable.

Directors’ Service Contracts

All Executive Directors are employed under service contracts. The
      services of all Executive Directors may be terminated by the Company or
      individual giving 12 months’ notice. The Non-Executive Directors are
      retained under Letters of Appointment.

Directors’ Share Options

Details of share options held by directors are set out in the Director’s
      report.

Nominations Committee Report

The Nominations Committee comprises Peter Lawrence, Marc Loomes, Brett
      Clemo, Dr Andrew Jones and Tony Rawlinson.

The Nomination Committee reviews the Board’s structure, size and
      composition and manages appointments to the Board. The committee this
      year, continued to focus on succession planning for the Board, by
      reviewing the Directors’ skills and experience and identifying areas to
      consider for future appointments. This Committee’s approach recognises
      its crucial role in ensuring the Company has an effective and
      well-balanced Board.

Role of the Nominations Committee

The Nominations Committee operates within specific terms of reference
      which include:

  • regularly reviewing the structure, size and composition (including the
            skills, knowledge, experience and diversity) of the board;

  • giving full consideration to succession planning;

  • keeping under review the leadership needs of the organisation;

  • being responsible for identifying and nominating for the approval of
            the board, candidates to fill board vacancies as and when they arise;

  • reviewing the results of the board performance evaluation process that
            relate to the composition of the board;

  • formulating plans for succession for both executive and non-executive
            directors;

  • nominating membership of the audit and remuneration committees;

  • the re-election by shareholders of directors under the annual
            re-election provisions of the retirement by rotation provisions in the
            company's Articles of Association;

  • any matters relating to the continuation in office of any director at
            any time including the appointment or removal of any director to
            executive or other office;

The Nominations Committee can call for information from the management
      committee and consults with the external specialists directly if they
      are required to do so.

The Committee met once in the year after formation of the Committee in
      December, to discuss the Board’s current skills and experience and to
      discuss succession planning.

As the Group has grown, the Board has recognised the increasing burden
      and reliance placed on the finance team. To alleviate this, the Board is
      pleased to announce the appointment of Jonathan Pickard ACA on 4 June
      2018. Jonathan’s role is Group Financial Controller. In addition, Andrew
      Buglass was appointed a Director of ECO Animal Health Limited with
      effect from the 31st May 2018. Andrew is the Group’s Global
      Sales Director.

Priorities for the year ahead

The Committee will continue to discuss succession planning of the Board
      and to continue to review the diversity and mix of skills to identify
      any skills gaps.

Our opinion remains that we are satisfied with the performance of the
      Board, its sub-committees and that of individual Directors and the
      Chairman.

In accordance with the Articles of Association and best practice, all
      Directors will be submitted for re-election on a rotation basis.

By order of the Board

Julia Trouse
Director and Company Secretary
29 June 2018

DIRECTORS REPORT

The directors present their report and financial statements for the year
      ended 31 March 2018.

Directors

The following directors have held office since 1 April 2017:

Peter Lawrence

Non- Executive Chairman

Marc Loomes

Chief Executive

Kevin Stockdale

Finance Director

Brett Clemo

Executive Director

Julia Trouse

Executive Director

David Danson

Non-Executive Director (Retired 1 December

2017)

Anthony Rawlinson

Non-Executive Director

Andrew Jones

Non-Executive Director (Appointed 1 December 2017)

Principal activities

The principal activities of the Group in the year under review were
      those of manufacturers and suppliers of animal health products. Ezek
      activities were conducted on a global scale, through a network including
      both regional offices, (notably in Shanghai and Princeton) and overseas
      subsidiaries.

Results and dividends

The consolidated income statement for the year is set out on page 31.

The profit for the year after tax was £11,647,000 (2017: £11,999,000).
      The directors have declared a dividend of 6p per share making a total
      for the year of 9.2p (2017: 7.10p).

Future Developments

The likely future development of the business is covered in the
      Chairman’s Statement and in the Strategic Report.

Substantial shareholdings

At 24 April 2018, the Company had been notified of the following
      holdings of 3 per cent or more of its issued share capital.

Ordinary shares Per cent

Old Mutual Global Investors

8,928,322

13.51

Axa Investment Managers

7,225,667

10.93

P A Lawrence and family

6,948,477

10.51

Schroder Investment Management Limited

5,950,300

9.00

M & G Investment Management

5,710,750

8.64

Aberdeen Standard Investments

3,375,250

5.11

Hargreave Hale

3,242,578

4.91

Liontrust Asset Management

2,585,124

3.91

Group research and development activities

The Group is continually researching into and developing new products
      and markets. Details of expenditure incurred and written off during the
      year are shown in the notes to the financial statements. Following the
      approval of our second marketing authorisation for Aivlosin® in the USA,
      the Group remains committed to obtaining further authorisations of its
      Aivlosin® products in other key territories and for additional disease
      applications.

Directors’ interests

Under the Group’s executive share option scheme the following directors
      have the right to acquire Ordinary shares of 5p each as follows:

Option price 2018 2017
(pence per share)

M D Loomes

435.0

400,000

400,000

312.5

350,000

350,000

265.0

400,000

400,000

200.5

100,000

100,000

161.5

30,000

B Clemo

435.0

150,000

150,000

312.5

250,000

250,000

265.0

250,000

250,000

200.5

60,000

60,000

161.5

20,000

K Stockdale

435.0

120,000

120,000

312.5

50,000

50,000

265.0

150,000

150,000

200.5

40,000

40,000

161.5

12,500

J Trouse

435.0

120,000

120,000

312.5

50,000

50,000

265.0

150,000

150,000

200.5

40,000

40,000

161.5

12,500

A Rawlinson

265.0

30,000

30,000

200.5

30,000

30,000

Directors’ emoluments

The directors who served in the year received the following; emoluments,
      pension contributions, share-based payments and benefits in kind.

Salaries and
Other
Compensation

Retirement
Benefits

Share
Based
Payments

Total

Salaries and
Other
Compensation

Retirement
Benefits

2018 2017
£000's £000's £000's £000's £000's £000's

M D Loomes

594

10

196

800

394

10

J Trouse

189

56

245

117

K Stockdale

184

5

56

245

90

11

B Clemo

319

107

426

240

D Danson

15

4

19

16

A Rawlinson

16

6

22

16

A Jones

7

7

1,324

15

425

1,764

873

21

The salaries and other compensation for Executive Directors in the
      latest financial year includes the payment of an additional cash bonus
      in lieu of an option grant, as explained in the Remuneration Committee
      Report.

Directors' insurance

The Company maintains directors' and officers' liability insurance for
      the benefit of its directors which remained in place at 31 March 2018
      and throughout the preceding year.

Financial instruments

The Group’s accounting policies for financial instruments and strategy
      for management of those financial instruments are given in notes 2 and
      32 to the financial statements respectively.

Internal financial control

The board of directors is responsible for the Group’s system of internal
      financial control. Internal control systems are designed to meet the
      particular needs of the companies concerned and the risks to which they
      are exposed. This provides reasonable, but not absolute, assurance
      against material misstatement or loss. Strict financial and other
      controls are exercised by the Group over its subsidiary companies by day
      to day supervision of the businesses by the Directors.

Stockbrokers

N+1 Singer were the Company's nominated advisor and stockbrokers at the
      year end. Peel Hunt is the joint broker. The closing share price on 31
      March 2018 was 531.0p per share (2017: 500.0p). During the year the
      average share price was 587.34p (2017: 456.85p).

Auditors

The auditors Kreston Reeves LLP will be proposed for reappointment in
      accordance with the provisions of section 489 of the Companies Act 2006.

Statement of directors' responsibilities

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 financial statements for
      each financial year. Under that law the directors have prepared the
      Group and Parent Company financial statements in accordance with
      International Financial Reporting Standards (IFRSs) as adopted by the
      European Union. 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 the Company and of
      the profit or loss of the Group for that period. In preparing these
      financial statements, the directors are required to:

  • select suitable accounting policies and then apply them consistently;

  • make judgements and accounting estimates that are reasonable and
            prudent;

  • state whether applicable IFRSs as adopted by the European Union have
            been followed, subject to any material departures disclosed and
            explained in the financial statements;

  • prepare the financial statements on the going concern basis unless it
            is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records
      that are sufficient to show and explain the Company's transactions and
      disclose with reasonable accuracy at any time the financial position of
      the Company and the Group and enable them to ensure that the financial
      statements comply with the Companies Act 2006. They are also responsible
      for safeguarding the assets of the Company and the Group and hence for
      taking reasonable steps for the prevention and detection of fraud and
      other irregularities.

The directors are responsible for the maintenance and integrity of the
      Company's website. Legislation in the United Kingdom governing the
      preparation and dissemination of financial statements may differ from
      legislation in other jurisdictions.

Statement of disclosure to auditors

So far as each of the directors are aware;

(a) there is no relevant audit information of which the Company's
      auditors are unaware, and

(b) they have taken all the steps that they ought to have taken as
      directors in order to make themselves aware of any relevant audit
      information and to establish that the Company's auditors are aware of
      that information.

Déclarations prospectives

This document contains certain forward-looking statements. The
      forward-looking statements reflect the knowledge and information
      available to the Company and Group during preparation and up to the
      publication of this document. By their very nature, these statements
      depend upon circumstances and relate to events that may occur in the
      future and thereby involving a degree of uncertainty. Therefore, nothing
      in this document should be construed as a profit forecast by the Company
      or Group.

On behalf of the board

Peter Lawrence
Non-Executive Chairman
29 June 2018

INDEPENDENT AUDITORS’ REPORT

TO THE SHAREHOLDERS OF ECO ANIMAL HEALTH GROUP PLC

FOR THE YEAR ENDED 31 MARCH 2018

Opinion

We have audited the financial statements of ECO Animal Health Group plc
      (the ‘parent company’) and its subsidiaries (the ‘Group’) for the year
      ended 31 March 2018 which comprise the consolidated statement of
      comprehensive income, consolidated and company statements of financial
      position, consolidated and company statements of changes in equity,
      consolidated and company statements of cashflow and notes to the
      financial statements, including a summary of significant accounting
      policies. The financial reporting framework that has been applied in
      their preparation is applicable law and International Financial
      Reporting Standards (IFRSs) as adopted by the European Union in
      accordance with the provisions of the Companies Act 2006.

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 31 March 2018 and of the Group’s profit
            for the year then ended;
  • have been properly prepared in accordance with IFRSs adopted by
    the European Union; et
  • have been prepared in accordance with the requirements of the
            Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on
      Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under
      those standards are further described in the Auditor’s responsibilities
      for the audit of the financial statements section of our report. We are
      independent of the Group in accordance with the ethical requirements
      that are relevant to our audit of the financial statements in the UK,
      including the FRC’s Ethical Standard, and we have fulfilled our other
      ethical responsibilities in accordance with these requirements. Mi
      believe that the audit evidence we have obtained is sufficient and
      appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in
      relation to which the ISAs (UK) require us to report to you where:

  • the directors’ use of the going concern basis of accounting in
    the preparation of the financial statements is not appropriate; ou
  • the directors have not disclosed in the financial statements any
            identified material uncertainties that may cast significant doubt
            about the company’s ability to continue to adopt the going concern
            basis of accounting for a period of at least twelve months from the
            date when the financial statements are authorised for issue.

An overview of the scope of our audit

As part of designing our audit, we determined materiality and assessed
the risks of material misstatement in the financial statements. Ban ben
      particular, we looked at where the directors made subjective judgements,
      for example in respect of significant accounting estimates that involved
      making assumptions and considering future events that are inherently
      uncertain. As in all of our audits we also addressed the risk of
      management override of internal controls, including evaluating whether
      there was evidence of bias by the directors that represented a risk of
      material misstatement due to fraud.

We performed a full scope audit on the main components of the business
      representing 81% of the Group’s revenue and 98% of the Group’s net
      assets.

Our audit approach is consistent with the previous year.

Key audit matters

Key audit matters are those matters that, in our professional judgment,
      were of most significance in our audit of the financial statements of
      the current period and include the most significant assessed risks of
      material misstatement (whether or not due to fraud) we identified,
      including those which had the greatest effect on: the overall audit
      strategy, the allocation of resources in the audit; and directing the
      efforts of the engagement team. These matters were addressed in the
      context of our audit of the financial statements as a whole, and in
      forming our opinion thereon, and we do not provide a separate opinion on
      these matters. This is not a complete list of all risks identified by
      our audit.

KEY AUDIT MATTER

HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER

Revenue recognition

The Group has two main sources of revenue;

(a) Direct sales of animal pharmaceutical products into UK, European and
      global markets. The Group’s flagship patented product continuing to be
      Aivlosin® which accounted for 76% of total Group Sales. The Group
      recognised these sales on despatch of the goods, at which point the
      risks and rewards of ownership is substantially transferred to the buyer.

(b) Sundry income is primarily from the profit on sale of assets and
      rents receivable. These are recognised on an accruals basis.

We have focused on these income streams due to their value and the
      potential for misstatement of revenue whether caused by fraud or error.

We discussed the revenue recognition policies with management and
      independently with sales staff clarifying any discrepancies.

For direct product sales a sample of order numbers were traced through
      to sale invoice and ledger confirming the treatment of VAT and exchange
      rate differences for each. In addition, a comprehensive analytical
      review was undertaken comparing reported sales in the year to both prior
      period and budgeted monthly sales development. An analysis by
      significant geographical sales markets was also performed with
      explanations for performance ensured as consistent with other audit
      evidence obtained.

KEY AUDIT MATTER

HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER

Ownership and valuation of intangibles

Goodwill arose on the acquisition of subsidiaries and is included within
      the consolidated statement of financial position at cost less impairment.

There is historical capitalised goodwill on the balance sheet totalling
      £17.9m in relation to this.

The Group also retain distribution rights as well as drug registrations,
      patents and capitalised license costs.

For internally generated and externally acquired assets the Group
      recognises these at cost less accumulated depreciation and impairment
      losses. For assets acquired as part of a business combination these are
      recognised at fair value. Drug registrations, patents and licences are
      amortised over a useful economic life of between 10 and 20 years, with
      distribution rights being amortised over 20 years.

We have focused on this area due to the value of intangible assets
      including goodwill, and the fact that there was judgment involved in
      estimating the value of assets and associated impairments.

Ownership and valuation of intangibles

A breakdown of the goodwill by company was obtained and agreed to the
      nominal ledger and expectations. A comparison of the goodwill amount and
      the historical profitability / net assets figure of each company was
      undertaken and an initial assessment of any required impairment was
      noted. The directors provided a paper on the impairment of goodwill
      taking into account forecasts for a period of 5 years looking at the
      profitability along with any potential impairment. Sensitivity analysis
      was undertaken on the forecasts to stress test different levels of
      revenue drop. Prior budgets and forecasts were compared to actual
      results and any inaccuracies in turnover or profits were also used to
      stress test the forecasts provided. The assumptions applied to generate
      the 5 year forecasts were reviewed and audited to help determine the
      accuracy of these forecasts.

Schedules for other intangible assets were obtained and agreed to
      nominal ledger and expectation, useful economic lives assigned were
      reviewed to confirm as reasonable with amortisation charges
      recalculated. Assets were also assessed for indicators of impairment and
      forecasts were obtained and reviewed to vouch assumption that assets
      will continue to generate income for the Group.

KEY AUDIT MATTER

HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER

The share based payments report was obtained and the qualifications and
      experience of the valuer assessed.

Sensitivity analysis was undertaken on the report’s assumptions to
      stress test different levels of leaver rates to review for potentially
      material variances.

The charge to the income statement was agreed to the audited report and
      it was confirmed all necessary disclosures were included in the accounts.

Valuation of share options

The Group operates an executive share option

Scheme, with approved and unapproved share

Options granted to directors and employees who

Devote at least 25 hours per week to the

Performance of duties or employment.

The exercise price of the options is equal to the

market price of the shares at the date of grant, with the options
      vesting after three years. For instances of an option holder ceasing
      employment during this time for any reason the option can be exercised 6
      months after date of cessation with approval of the Board.

We have focused on this area due to the increased complexity of
      accounting and exposure to higher risk accounting estimates in
      calculating such a scheme.

Valuation and existence of inventory

The Group held inventories of £17.7m at year end, this being in relation
      to raw materials and consumables £13.0m and finished pharmaceutical
      products £4.6m.

Such inventories are valued at the lower of cost and net realisable
      value; cost being determined using the first-in-first-out method. The
      cost of finished goods comprises raw materials as well as direct labour
      and other costs. The net realisable value is taken to be selling price
      for the product in the ordinary course of business.

We have focused on this area due to the value of Inventories held, and
      the fact that there was judgment involved in estimating the value of
      obsolete items.

Stocktakes were attended at selected sites with material levels of
      inventory. A sample of stock was also selected for substantive valuation
      testing, confirming that inventory was held at the lower of cost and net
      realisable value.

Third parties who have completed stock takes were assessed to confirm
      their competence and reliability of their results. Variance testing was
      performed where stock sheets at year end were agreed to stock listing
      obtained. A sample of the final March 2018 and first April 2018 sales
      were reviewed to determine correct cut-off was applied.

Inventory in transit was also reviewed to confirm it was accurately
      recorded as such at the year end.

How we tailored the audit scope

We tailored the scope of our audit to ensure that we performed enough
      work to be able to give an opinion on the financial statements as a
      whole, taking into account the structure of the Group and the parent
      company, the accounting processes and controls, and the industry in
      which they operate.

Our scoping considerations for the Group audit were based both on
      financial information and risk. In addition to Eco Animal Health Group
      PLC the below subsidiaries were subject to a statutory or limited
      assurance audits:

Eco Animal Health Limited (statutory audit)

Zhejiang Eco BIOK Animal Health Products, Limited (statutory audit)

Pharmgate Animal Health LLC (statutory audit)

ECO Animal Health do Brasil Comercio de Productos Veterinarios (limited
      assurance)

ECO Animal Health (USA) Corporation (limited assurance)

Remaining subsidiaries deemed immaterial to the Group and were not
      subject to audit procedures.

Our application of materiality

Overall Group Materiality

£692,000 (2017: £610,000)

How we determined it

5% of Group profit before tax

Rationale for benchmark

Given the Group is AIM listed the number of users and the level
nak,-nek
            interest in the financial statements is
expected to be higher
            than average. Therefore, the
significance of balances is
            expected to be greater and
consequently 5% of profit before
            tax has been
assessed as the most appropriate basis for
            materiality.

We reported all audit differences found in excess of performance
      materiality of £484,400 to the directors and the management board.

For each Group company within the scope of our Group audit, we allocated
      a materiality that is less than our overall Group materiality. The range
      of materiality allocated across each Group company was between £430,000
      and £20,200. The scope of our audit was influenced by our application of
      materiality as we set certain quantitative thresholds for performance
      materiality and use these thresholds as a consideration tool to help to
      determine the scope of our audit and the nature, timing and extent of
      our audit procedures on the individual financial statement line items
      and disclosures and in evaluating the effect of misstatements, both
      individually and in aggregate on the financial statements as a whole.

We determined component materiality for the parent company to be 1% of
      net assets and for each of the trading Group companies between 1-2% of
      turnover based upon the companies’ principal activities and risk
      profile. Performance materiality was set in the range of 70-80% of
      component materiality.

Other information

The directors are responsible for the other information. The other
      information comprises the information included in the annual report,
      other than the financial statements and our auditor’s report thereon.
      Our opinion on the financial statements does not cover the other
      information and, except to the extent otherwise explicitly stated in our
      report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our
      responsibility is to read the other information and, in doing so,
      consider whether the other information is materially inconsistent with
      the financial statements or our knowledge obtained in the audit or
      otherwise appears to be materially misstated. If we identify such
      material inconsistencies or apparent material misstatements, we are
      required to determine whether there is a material misstatement in the
      financial statements or a material misstatement of the other
      information. If, based on the work we have performed, we conclude that
      there is a material misstatement of this other information, we are
      required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

  • the information given in the strategic report and the directors’
            report for the financial year for which the financial statements are
    prepared is consistent with the financial statements; et

  • the strategic report and the directors’ report have been prepared in
            accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Group and parent
      company and its environment obtained in the course of the audit, we have
      not identified material misstatements in the strategic report and the
      directors’ report.

We have nothing to report in respect of the following matters in
      relation to which 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; ou

  • the parent company financial statements are not in agreement with the
    accounting records and returns; ou

  • certain disclosures of directors’ remuneration specified by law are
    not made; ou

  • we have not received all the information and explanations we require
            for our audit

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement
      (set out on page 22), the directors are responsible for the preparation
      of the financial statements and for being satisfied that they give a
      true and fair view, and for such internal control as the directors
      determine is necessary to enable the preparation of financial statements
      that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for
      assessing the Group’s and parent company’s ability to continue as a
      going concern, disclosing, as applicable, matters related to going
      concern and using the going concern basis of accounting unless the
      directors either intend to liquidate the Group or parent company or to
      cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the
      financial statements as a whole are free from material misstatement,
      whether due to fraud or error, and to issue an auditor’s report that
      includes our opinion. Reasonable assurance is a high level of assurance
      but is not a guarantee that an audit conducted in accordance with ISAs
      (UK) will always detect a material misstatement when it exists.
      Misstatements can arise from fraud or error and are considered material
      if, individually or in the aggregate, they could reasonably be expected
      to influence the economic decisions of users taken on the basis of these
      financial statements.

As part of an audit in accordance with ISAs (UK), we exercise
      professional judgment and maintain professional scepticism throughout
      the audit. We also:

  • Identify and assess the risks of material misstatement of the
            financial statements, whether due to fraud or error, design and
            perform audit procedures responsive to those risks, and obtain audit
            evidence that is sufficient and appropriate to provide a basis for our
            opinion. The risk of not detecting a material misstatement resulting
            from fraud is higher than for one resulting from error, as fraud may
            involve collusion, forgery, intentional omissions, misrepresentations,
            or the override of internal control.

  • Obtain an understanding of internal control relevant to the audit in
            order to design audit procedures that are appropriate in the
            circumstances, but not for the purpose of expressing an opinion on the
            effectiveness of the Group’s internal control.

  • Evaluate the appropriateness of accounting policies used and the
            reasonableness of accounting estimates and related disclosures made by
            the directors.

  • Conclude on the appropriateness of the directors’ use of the going
            concern basis of accounting and, based on the audit evidence obtained,
            whether a material uncertainty exists related to events or conditions
            that may cast significant doubt on the Group’s or the parent company’s
            ability to continue as a going concern. If we conclude that a material
            uncertainty exists, we are required to draw attention in our auditor’s
            report to the related disclosures in the financial statements or, if
    such disclosures are inadequate, to modify our opinion. la
            conclusions are based on the audit evidence obtained up to the date of
            our auditor’s report. However, future events or conditions may cause
            the Group or the parent company to cease to continue as a going
            concern.

  • Evaluate the overall presentation, structure and content of the
            financial statements, including the disclosures, and whether the
            financial statements represent the underlying transactions and events
            in a manner that achieves fair presentation.

  • Obtain sufficient appropriate audit evidence regarding the financial
            information of the entities or business activities within the Group to
            express an opinion on the consolidated financial statements. We are
            responsible for the direction, supervision and performance of the
            Group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other
      matters, the planned scope and timing of the audit and significant audit
      findings, including any significant deficiencies in internal control
      that we identify during our audit.

Use of our Report

This report is made solely to the company’s members, as a body, in
      accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our
      audit work has been undertaken so that we might state to the company’s
      members those matters we are required to state to them in an auditor’s
      report and for no other purpose. To the fullest extent permitted by law,
      we do not accept or assume responsibility to anyone other than the
      company and the company’s members as a body, for our audit work, for
      this report, or for the opinions we have formed.

Stephen Tanner BSc (Econ) FCA (Senior Statutory Auditor)
parce que
      and on behalf of Kreston Reeves LLP

Statutory Auditors and
      Chartered Accountants

Londres
29 June 2018

CONSOLIDATED INCOME STATEMENT

2018 2017
Notes £000's £000's
Revenue 2,3 67,201 61,422

Cost of sales

(34,986)

(31,103)

Gross profit 32,215 30,319

Other income

4

436

379

Administrative expenses

(18,539)

(18,053)

Profit from operating activities 5 14,112 12,645

Finance income

6

138

784

Finance costs

6

(385)

Net finance (cost)/income (247) 784

Share of profit of associate

14

7

23

7 23

Profit before income tax

13,872

13,452

Income tax (charge)

8

(2,225)

(1,453)

Profit for the year 11,647 11,999
Profit attributable to:

Owners of the parent company

9,315

10,565

Non-controlling interest

24

2,332

1,434

Profit for the year 11,647 11,999
Earnings per share (pence) 7 14.19 16.35
Diluted earnings per share (pence) 7 14.06 16.17

Earnings before Interest, Tax, Depreciation, Amortisation, Share
          Based Payments and Foreign Exchange Differences

5

19,571

17,064

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

2018 2017
Notes £000's £000's
Profit for the year 11,647 11,999
Other comprehensive (losses)/income (net of related tax effects):

Items that will or may be reclassified to profit/(loss) in future
          periods:

Foreign currency translation differences

(372)

1,030

Items that will not be reclassified:

Defined benefit plan actuarial (losses)

21

(15)

(483)

Deferred tax on revaluations

10

Other comprehensive (losses)/income for the year (387) 557
Total comprehensive income for the year 11,260 12,556
Attributable to:

Owners of the parent company

9,028

10,829

Non-controlling interest

24

2,232

1,727

11,260 12,556

All items listed in other comprehensive income have gone through
      reserves and are shown in the consolidated statement of changes in
      equity.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONSOLIDATED

Capital prime Reserve Reserve Reserves Earnings Interest Equity
Balance as at 31 March 2016

Profit for the year

10,565

10,565

1,434

11,999

Other comprehensive income:

Foreign currency differences

737

737

293

1,030

Actuarial (losses) on pension scheme assets

(483)

(483)

(483)

Deferred taxation change in rate

10

10

10

Total comprehensive income for the year

Transactions with owners recorded directly in equity

Contributions by and distributions to owners

Movement in Treasury Reserve arising from disposal of jointly owned
          megoszt

1,144

1,144

1,144

Issue of shares in the year

66

2,517

2,583

2,583

Sale of treasury shares

47

60

107

107

Share-based payments

678

678

678

Transfers on expiry of options

(257)

257

Dividends relating to 2016

(3,667)

(3,667)

(587)

(4,254)

Transactions with owners

66

2,564

1,144

421

(3,350)

845

(587)

258

Balance as at 31 March 2017

Profit for the year

Other comprehensive income:

9,315

9,315

2,332

11,647

Foreign currency differences

(272)

(272)

(100)

(372)

Actuarial (losses) on pension scheme assets

(15)

(15)

(15)

Total comprehensive income for the year

Transactions with owners recorded directly in equity

Contributions by and distributions to owners

Issue of shares in the year

20

693

713

713

Share-based payments

778

778

778

Transfers on expiry of options

(404)

404

Dividends relating to 2017

(4,660)

(4,660)

(1,389)

(6,049)

Transactions with owners

20

693

374

(4,256)

(3,169)

(1,389)

(4,558)

Balance as at 31 March 2018

STATEMENT OF CHANGES IN EQUITY

COMPANY
Capital prime Reserve Reserve Reserves Earnings
Balance as at 31 March 2016

Profit for the year

5,144

5,144

Other comprehensive income:

Actuarial (losses) on pension scheme assets

(483)

(483)

Deferred taxation change in rate

10

10

Total comprehensive income for the year

Transactions with owners recorded directly in equity

Contributions by and distributions to owners

Issue of shares in the year

66

2,517

2,583

Movement in Treasury Reserve arising from disposal of jointly owned
          megoszt

1,144

1,144

Share-based payments

678

678

Sale of treasury shares

47

60

107

Transfers on expiry of options

(257)

257

Dividends relating to 2016

(3,667)

(3,667)

Transactions with owners

66

2,564

1,144

421

(3,350)

845

Balance as at 31 March 2017

Profit for the year

76

76

Other comprehensive income:

Actuarial (losses) on pension scheme assets

(15)

(15)

Total comprehensive income for the year

Transactions with owners recorded directly in equity

Contributions by and distributions to owners

Issue of shares in the year

20

693

713

Share-based payments

778

778

Transfers on expiry of options

(404)

404

Dividends relating to 2016

(4,660)

(4,660)

Transactions with owners

20

693

374

(4,256)

(3,169)

Balance as at 31 March 2018

STATEMENTS OF FINANCIAL POSITION (CO. NUMBER: 01818170)

Non-current assets

Intangible assets

11

57,631

53,883

Property, plant and equipment

12

1,866

1,865

716

731

Investment property

13

200

185

200

185

Investments

14

98

97

20,077

20,082

Amounts due from subsidiary company

16

46,326

Current assets

Inventories

15

17,663

19,675

Trade and other receivables

16

17,193

16,158

213

46,132

Income tax recoverable

113

395

Other taxes and social security

1,160

897

518

694

Cash and cash equivalents

18

21,261

20,602

4,959

8,684

Total current assets 57,390 57,727 5,690 55,510
Liabilities

Trade and other payables

19

(10,715)

(13,733)

(234)

(526)

Income tax

(152)

(238)

Other taxes and social security

(108)

(447)

(98)

(103)

Dividends

(42)

(39)

(42)

(39)

Current liabilities (11,017) (14,457) (374) (668)
Net current assets 46,373 43,270 5,316 54,842
Total assets less current liabilities 106,168 99,300 72,635 75,840
Non current liabilities
Provisions

Deferred tax

17

(1,293)

(1,027)

(90)

(87)

Dilapidations on property leases

(100)

(100)

TOTAL ASSETS LESS TOTAL LIABILITIES 104,875 98,173 72,545 75,653
EQUITY

Issued share capital

23

3,291

3,271

3,291

3,271

Share premium account

58,847

58,154

58,847

58,154

Revaluation reserve

664

664

395

395

Other reserves

26

2,823

2,449

2,823

2,449

Retained earnings

34,065

29,293

7,189

11,384

99,690

93,831

72,545

75,653

Non-controlling interests

24

5,185

4,342

TOTAL EQUITY 104,875 98,173 72,545 75,653

Approved by the Board and authorised for issue on 29 June 2018

STATEMENT OF CASHFLOWS

groupe groupe Company Company
2018 2017 2018 2017
Notes £000's £000's £000's £000's
Cashflows from operating activities

Profit before income tax

13,872

13,452

89

5,148

Adjustment for:

Net finance cost/(income)

6

247

(784)

(911)

(927)

Depreciation

12 & 13

297

264

17

15

Revaluation of investment property

(15)

(15)

Loss/(Profit) on disposal of non-current assets

37

(8)

Amortisation of intangible assets

11

3,428

3,088

Impairment of intangible assets

297

Pension payments

21

(39)

(76)

(39)

(76)

Share of associate's results

14

(7)

(23)

Impairment of investments

14

5

Share based payments

22

778

678

778

678

Operating cash flows before movements in working capital 18,561 16,933 (76) 4,830

Change in inventories

2,012

(4,082)

925

Change in receivables

(1,298)

(3,195)

(231)

(5,394)

Change in payables

(3,432)

3,445

(373)

123

Cash generated from/(absorbed by) operations 15,843 13,101 (680) 484

Finance costs

(14)

(3)

Income tax

(1,763)

(1,286)

(11)

(4)

Net cash from/(absorbed by) operating activities 14,066 11,815 (694) 480
Cash flows from investing activities

Acquisition of property, plant and equipment

12

(324)

(265)

(2)

(8)

Disposal of property, plant and equipment

1

8

Purchase of intangibles (net of contributions from outside parties)

11

(7,176)

(7,931)

Finance income

6

138

103

914

927

Net cash (used in)/from investing activities (7,361) (8,093) 912 927
Cash flows from financing activities

Proceeds from issue of share capital and sale of jointly owned and
          treasury shares

713

3,834

713

3,834

Dividends paid

(6,046)

(4,252)

(4,656)

(3,666)

Net cash (used in)/from financing activities (5,333) (418) (3,943) 168
Net increase/(decrease) in cash and cash equivalents 1,372 3,304 (3,725) 1,575

Foreign exchange movements

(713)

1,633

Balance at 1 April 2017

20,602

15,665

8,684

7,109

Balance at 31 March 2018 18 21,261 20,602 4,959 8,684

A net debt reconciliation has not been included as the Group held no
      debt in 2018 or 2017.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2018

premier General information

ECO Animal Health Group plc (“the company”) and its subsidiaries
      (together “the Group”) manufacture and supply animal health products
      globally.

The Company is traded on the AIM market of the London Stock Exchange and
      is incorporated and domiciled in the UK. The address of its registered
      office is 78 Coombe Road, New Malden, Surrey, KT3 4QS.

deuxième Summary of significant accounting policies

2.1 Basis of preparation

The Group has presented its annual report and accounts in accordance
      with International Financial Reporting Standards (IFRS), as adopted by
      the European Union, IFRIC interpretations and the Companies Act 2006
      applicable to companies reporting under IFRS.

The preparation of financial statements, in conformity with IFRS as
      adopted by the European Union, requires the use of estimates and
      assumptions that affect the reported amounts of assets and liabilities
      at the date of the financial statements and the reported amounts of
      revenue and expenses during the reporting period. Although these
      estimates are based on management’s best knowledge of the amount, event
      or actions, actual results ultimately may differ from those estimates.

The estimates and underlying assumptions are reviewed on an ongoing
      basis. Revisions to accounting estimates are recognised in the period in
      which the estimate is revised if the revision affects only that period
      or in the period of the revision and future periods if the revision
      affects both current and future periods.

The principal accounting policies of the Group are set out below and
      have been applied consistently in dealing with items which are
      considered material in relation to the Group’s financial statements.

2.2 Adoption of new and revised standards

The following amendments to existing standards and interpretations were
      effective for periods beginning after 1 January 2017, but the adoption
      of these amendments to existing standards and interpretations did not
      have a material impact on the financial statements of the Group:

  • IAS 7 – Disclosure Initiative

  • IAS 12 – Recognition of Deferred Tax Assets for Unrealised Losses

  • IFRS 12 – Amendments under 2014-16 Cycle of Annual Improvements.

The following new standards, amendments and interpretations to existing
      standards have been published that are mandatory for accounting periods
      beginning after 1 January 2018 (unless otherwise stated) and have not
      been applied in preparing these consolidated financial statements.

  • IFRS 2 – Classification and Measurement of Share Based Payment
            Transactions

  • IFRS 4 – Applying IFRS9 Financial Instruments with IFRS 4 Insurance
            Contracts

  • IFRS 9 – Financial Instruments

  • IFRS 15 – Revenue from Contracts with Customers

  • IFRS 16 – Leases (effective from 1 January 2019)

  • IFRS 40 – Transfers of Investment Property

  • IFRIC 22 – Foreign Currency Transactions and Advance Consideration

  • IFRS 1 and IAS 28 – Amendments under 2014-16 Cycle of Annual
            Improvements

2.2 Adoption of new and revised standards (continued)

The directors do not expect that the adoption of the Standards and
      Interpretations listed above will have a material impact on the
      financial statements of the Group in future periods with the exception
      of IFRS16 – Leases. It is anticipated that this will increase the assets
      and liability totals included in the financial statements by a maximum
      of approximately £3.6m. Net assets will not be materially affected and
      neither will the reported profit.

Beyond the information above, it is not practicable to provide a
      reasonable estimate of the effect of these standards until a detailed
      review has been completed.

2.3 Basis of consolidation

The consolidated financial statements comprise the accounts of the
      Company and its subsidiaries drawn up to 31 March 2018.

An entity is classed as a subsidiary of the Company when as a result of
      contractual arrangements, the Company has the power to govern its
      financial and operating policies so as to obtain benefits from its
      activities.

The purchase method of accounting is used to account for the acquisition
      of subsidiaries by the Group. The cost of an acquisition is measured, as
      the fair value of the assets given, equity instruments issued and
      liabilities incurred or assumed at the date of exchange. Identifiable
      assets acquired and contingent liabilities assumed in a business
      combination are measured initially at their fair values at the
      acquisition date, irrespective of the extent of any minority interest.
      The excess of the cost of acquisition over the fair value of the Group’s
      share of the identifiable net assets acquired is recorded as goodwill.
      If the cost of acquisition is less than the fair value, the difference
      is recognised directly in the income statement.

Accounting policies have been changed where material to ensure
      consistency with the policies adopted by the Group. Although the
      subsidiaries in Brazil and China and the Joint operation in the USA and
      Canada all have December year ends, the Group uses management accounts
      to the end of March to prepare the Group accounts.

Subsidiaries are wholly consolidated from the date on which control is
      transferred to the Group. They are deconsolidated from the date that
      control ceases.

Intercompany transactions, balances and unrealised gains on transactions
      between Group companies are eliminated on consolidation.

2.4 Segment reporting

Operating segments are reported in a manner consistent with the internal
      reporting to the chief operating decision-maker. The chief operating
      decision-maker who is responsible for allocating resources and assessing
      performance of the operating segments has been identified as the Board.

2.5 Foreign currency translation

(a) Functional and presentational currency

Items included in the financial statements of each of the Group’s
      entities are measured using the currency of the primary economic
      environment in which the entity operates (“functional currency”). The
      consolidated financial statements are presented in Pounds Sterling,
      which is the Company’s functional and the Group’s presentational
      currency.

(b) Transactions and balances

Monetary assets and liabilities denominated in foreign currencies are
      translated into Pounds Sterling at the rates of exchange ruling at the
      date of the financial statements.

2.5 Foreign currency translation (continued)

Foreign currency transactions are translated into the functional
      currency using the exchange rates prevailing at the date of the
      transactions. Foreign exchange gains and losses resulting from the
      settlement of such transactions and from the translation at period end
      exchange rates of monetary assets and liabilities denominated in foreign
      currencies are recognised in the income statement.

Foreign exchange gains and losses that relate to borrowing and cash and
      cash equivalents are presented in the income statement within finance
      income or finance costs.

(c) Group companies

The results and financial position of all Group entities that have a
      functional currency different from the presentation currency are
      translated into the presentation currency as follows;

  • assets and liabilities for each balance sheet presented are translated
            at the closing exchange rate at the date of the balance sheet;

  • income and expenses for each income statement are translated at
            average exchange rates unless this average is not a reasonable
            approximation of the cumulative effect of the rates prevailing on the
            transaction dates, in which case the income and expenses are
    translated at the rate on the dates of the transaction; et

  • all resulting exchange differences are recognised as a separate
            component of equity.

When a foreign operation is partially disposed or sold, exchange
      differences that were recognised in equity are recognised in the income
      statement as part of the gain or loss on sale. Goodwill and fair value
      adjustments arising on the acquisition of a foreign entity are treated
      as assets and liabilities of the foreign entity and translated at the
      closing exchange rate.

2.6 Financial instruments

a) Non-derivative financial assets

The Group initially recognises loans and receivables and deposits on the
      date that they are originated. All other financial assets (including
      assets designated at fair value through profit or loss) are recognised
      initially on the trade date at which the Group becomes a party to the
      contractual provisions of the instrument.

The Group derecognises a financial asset when the contractual rights to
      the cashflows from the asset expire, or it transfers the rights to
      receive the contractual cashflows from the financial asset in a
      transaction in which substantially all the risks and rewards of
      ownership of the financial asset are transferred. Any interest in
      transferred financial assets that is created or retained by the Group is
      recognised as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented
      in the statement of financial position when, and only when, the Group
      has a legal right to offset the amounts and intends to settle on a net
      basis or to realise the asset and settle the liability simultaneously.

The Group has the following non-derivative financial assets:

b) Loans and receivables

Loans and receivables are financial assets with fixed or determinable
      payments that are not quoted in an active market. Such assets are
      recognised initially at fair value plus any directly attributable
      transaction costs. Subsequent to initial recognition loans and
      receivables are measured at amortised cost using the effective interest
      method, less any impairment losses.

Loans and receivables comprise trade and other receivables and cash and
      cash equivalents.

Cash and cash equivalents comprise cash balances and call deposits with
      original maturities of three months or less. Bank overdrafts that are
      repayable on demand and form an integral part of the Group’s cash
      management are included as a component of cash and cash equivalents for
      the purpose of the statement of cashflows.

c) Non-derivative financial liabilities

All financial liabilities (including liabilities designated at fair
      value through profit or loss) are recognised initially on the date at
      which the Group becomes a party to the contractual provisions of the
      instrument.

The Group derecognises a financial liability when its contractual
      obligations are discharged or cancelled or expire.

The Group has the following non-derivative financial liabilities: bank
      overdrafts and trade and other payables.

Such financial liabilities are recognised initially at fair value plus
      any directly attributable transaction costs. Subsequent to initial
      recognition these financial liabilities are measured at amortised cost
      using the effective interest method.

2.7 Goodwill

Goodwill arising on the acquisition of an entity represents the excess
      of the costs of acquisition over the Group’s interest in the net fair
      value of the identifiable assets, liabilities and contingent liabilities
      of the entity recognised 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 is not
      subject to amortisation but is tested for impairment.

Negative goodwill arising on an acquisition is recognised directly in
      the income statement. On disposal of a subsidiary or a jointly
      controlled entity, the attributable amount of goodwill is included in
      the determination of the profit or loss recognised in the income
      statement on disposal. Goodwill arising before the date of transition to
      IFRS, on 1 April 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.

2.8 Other intangible assets

Drug registrations, patents and licences

The Group recognises internally generated or externally acquired
      intangible assets at cost and subsequently recognises them at cost less
      accumulated amortisation and impairment losses. Intangible assets
      acquired as part of a business combination are recognised at fair value.

Expenditure on drug registrations and licences is recognised as an
      internally generated or externally acquired intangible asset only if all
      the following conditions are met:

  • an asset is created that can be identified

  • it is probable that the asset created will generate future economic
            benefits: and

  • the development cost of the asset can be measured reliably.

2.8 Other intangible assets (continued)

All drug registrations and licences have previously been amortised on a
      straight-line basis over their useful economic life of 10 years.
      However, following the granting of Aivlosin’s first marketing
      authorisation in the USA in July 2012, which greatly increased the
      economic potential of the product, management revised their estimate of
      the useful life of the Aivlosin drug registrations only from 10 to 20
      years and in accordance with IAS8 have amortised the remaining book
      value of the Aivlosin registrations over the remainder of the useful
      life of these registrations from that date.

Distribution rights

Distribution rights are recognised at cost and amortised on a straight
      line basis over their estimated useful economic life of 20 years. They
      are reviewed for impairment when any indication of potential impairment
      exists.

2.9 Property, plant and equipment and depreciation

Plant and equipment are stated at cost less depreciation. Depreciation
      is provided at rates calculated to write off the cost less estimated
      residual value of each asset over its expected useful life, as follows;

Plant and machinery 20% on cost

Fixtures, fittings and equipment 20% on cost

Motor Vehicles 25% on cost

Freehold land and buildings are stated at valuation less depreciation.
      The property is professionally valued by a qualified surveyor at least
      once every three years. Surpluses and deficits arising from the periodic
      valuations are taken to the income statement. Depreciation is provided
      at a rate calculated to write off the valuation less estimated residual
      value over the remaining useful life of the building at a rate of 2 per
      cent per annum. Land is not depreciated.

2.10 Impairment of non-financial assets

The carrying amounts of the Group’s assets are reviewed at each year
      end, to determine whether there is any indication of impairment. If any
      such indication exists, the asset’s recoverable amount is estimated in
      order to determine the impairment loss if any. The recoverable amount is
      the higher of its fair value and its value in use. For intangible assets
      with an indefinite useful life, an impairment test is performed at each
      year end.

In assessing value in use, the expected future cashflows from the asset
      are discounted to their present value using a pre-tax discount rate that
      reflects current market assessments of the time value

of money and the risks specific to the asset. An impairment loss is
      recognised in the income

statement whenever the carrying amount of an asset or its
      cash-generating unit exceeds its recoverable amount.

A previously recognised impairment loss is reversed if the recoverable
      amount increases as a result of a change in the estimates used to
      determine the recoverable amount, but not to an amount higher

than the carrying amount that would have been determined (net of
      depreciation) had no impairment loss been recognised in prior years.

2.11 Investment property

The investment property is property held either to earn rental income or
      for capital appreciation or for both, but not for sale in the ordinary
      course of business, use in the production or supply of goods or services
      or for administrative purposes. Investment property is measured at fair
      value.

2.11 Investment property (continued)

The property is professionally valued by a qualified surveyor at least
      once every three years. Surpluses and deficits arising from the periodic
      valuations are taken to the income statement.

2.12 Investments

Non-current asset investments are stated at fair value. They are
      recognised or derecognised on the date when the contract for acquisition
      or disposal requires the delivery of that investment.

Investments in subsidiaries are stated at cost less impairment in the
      Parent Company’s statement of financial position.

An impairment is recognised in profit or loss when there is objective
      evidence that the asset is impaired and is measured on the difference
      between the investment’s carrying amount and the

present value of estimated future cashflows discounted at the effective
      interest rate adjusted for a

risk premium. Impairment losses are reversed in subsequent periods when
      an increase in the

investment’s recoverable amount can be related objectively to an event
      occurring after the impairment was recognised, subject to the
      restriction that the carrying amount of the investment at the date the
      impairment is reversed shall not exceed what the amortised costs would
      have been had the impairment not been recognised.

Investments classified as available-for-sale are stated at fair value.
      Where securities are held for trading purposes, gains and losses arising
      from changes in fair value are included in net profit or loss for the
      period. For available-for-sale investments, gains and losses arising
      from changes in fair value are recognised directly in equity, until the
      security is disposed of or is determined to be impaired, at which time
      the cumulative gain or loss previously recognised in equity, determined
      using the weighted average cost method, is included in the net profit or
      loss for the period.

2.13 Interest in joint operations

A joint operation is a contractual arrangement whereby the Group and
      other parties undertake an economic activity that is subject to joint
      control; that is, when the strategic financial and operating policy
      decisions relating to the activities require the unanimous consent of
      the parties sharing control.

The Group accounts for its interest in joint operations using
      proportional consolidation, as it has rights to substantially all of the
      economic benefits of the assets and obligations for the liabilities
      shown in these financial statements relating to those operations. The
      Group’s share of the assets, liabilities, income, expenses and cashflows
      of jointly controlled entities are combined with the equivalent items in
      the results on a line by line basis.

2.14 Investments in Associates

An associate is an entity in which an investor has significant influence
      but not control or joint control. Significant influence is defined as
      “the power to participate in the financial and operating policy
      decisions but not to control them”.

The Group reports its interests in associates using the equity method of
      accounting. Under this method, an equity investment is initially
      recorded at cost (subject to initial fair value adjustment if acquired
      as part of the acquisition of a subsidiary) and is subsequently adjusted
      to reflect the Group’s share of the net profit or loss of the associate.
      If the Group’s share of losses of an associate equals or exceeds its
      “interest in the associate”, the Group discontinues recognising its
      share of further losses. If the associate subsequently reports profits,
      the investor resumes recognising its share of those profits only after
      its share of the profits equals the share of losses not recognised.

2.15 Leasing

The Group leases certain property, plant and equipment.

Assets obtained under finance leases, where the Group has substantially
      all the risks and rewards of ownership are capitalised as property,
      plant and equipment and depreciated over the shorter of the lease term
      and their useful lives. Obligations under such agreements are included
      in borrowings net of the financial charge allocated to future periods.
      The financial element of the rental payment is charged to the income
      statement so as to produce constant periodic rates of charge on the net
      obligations outstanding in each period.

Leases in which a significant portion of the risks and rewards of
      ownership are retained by the lessor are classified as operating leases.
      Payments made under operating leases are charged to the income statement
      on a straight-line basis over the period of the lease. Tól
      accounting period beginning 1 April 2019 the distinction between
      operating leases and finance leases will be abolished. All leases will
      have to be treated as finance leases. This will increase the Group’s
      assets and liabilities by a maximum figure of £3.6 million.

2.16 Inventories

Inventories are valued at the lower of cost and net realisable value.
Cost is determined using the first-in, first-out method. Le prix
      finished goods comprises raw materials, direct labour and other direct
      costs. Net realisable value is the estimated selling price in the
      ordinary course of business, less any costs which would be incurred in
      completing the goods and rendering them ready for sale.

2.17 Trade receivables

Trade receivables are initially measured at fair value and are
      subsequently measured at amortised cost using the effective interest
      rate method. Appropriate allowance for estimated, irrecoverable amounts
      are recognised in profit or loss 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 cashflows discounted at the effective interest rate
      computed at initial recognition.

2.18 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held on call
      with banks, other short-term highly liquid investments with original
      maturities of three months or less and bank overdrafts. Bank folyószámlahitel
      are shown within borrowings in current liabilities in the statement of
      financial position.

2.19 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.

2.20 Bank borrowings and loans

Interest-bearing bank loans and overdrafts are recorded as the proceeds
      received, net of direct issue costs (which equate to fair value).
      Finance charges including premiums payable on settlement or redemption
      and direct issue costs are accounted for on an accruals basis in profit
      or loss using the effective interest rate method and are added to the
      carrying amount of the instrument to the extent that they are not
      settled in the period in which they arise.

2.21 Trade payables

Trade payables are initially measured at fair value and are subsequently
      measured at amortised cost using the effective interest rate method.

2.22 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 the obligation. Provisions are measured at the
      directors’ best estimate of the expenditure required to settle the
      obligation outstanding at the year end and are discounted to present
      value where the effect is material.

2.23 Revenue recognition

Revenue comprises the fair value of the consideration received or
      receivable for the sale of goods in the ordinary course of the Group’s
      activities. Revenue is shown net of value added tax, returns, rebates
      and discounts and after eliminating sales within the Group.

The Group recognises revenue on despatch of the goods (which the
      directors believe transfers substantially all the risks and rewards of
      ownership to the buyer). No goods are despatched on a sale or return
      basis. Distributors trade on their own account and not as agents.

The Group also receives interest, rental income, royalty income and
      management charges in respect of accounting services supplied to certain
      ex-subsidiaries. The amounts are small and are recognised on an accruals
      basis.

2.24 Pensions

Defined Contribution Scheme

The pension costs charged against operating profits represent the amount
      of the contributions payable to the schemes in respect of the accounting
      period.

Defined Benefit Scheme

The regular cost of providing retirement pensions and related benefits
      is charged to the income statement over the employees’ service lives on
      the basis of a constant percentage of earnings. The present value of the
      defined benefit obligation less the fair value of the plan assets is
      disclosed as an asset or liability in the statement of financial
      position in accordance with IAS19. The disclosure of a net defined
      benefit asset is limited to the present value of any economic benefit
      available in the form of refunds from the plan or reductions in future
      contributions to the plan.

Actuarial gains or losses are taken directly to equity in the statement
      of comprehensive income.

02h25 Share-based payments

The Group issues equity-settled share-based payments to certain
      employees in exchange for services from those employees. Equity-settled
      share-based payments are measured at fair value (excluding the effect of
      non-market based vesting conditions) at the date of grant. The fair
      value determined at the grant of such equity-settled share-based
      payments is expensed on a straight-line basis over the vesting period,
      based on the Group’s estimate of shares that will eventually vest and
      adjusted for the effect of non-market based vesting conditions (with a
      corresponding movement in equity).

Fair value is measured by use of the Black-Scholes model. The expected
      life used in the model has been adjusted, based on management’s best
      estimate, for the effects of non-transferability, exercise restrictions
      and behaviour considerations.

Further details of the inputs to the Black-Scholes model can be found in
      note 22 to the accounts.

2.26 Taxation

Tax expense for the period comprises current and deferred tax.

Current tax, including UK corporation tax and foreign tax is provided at
      amounts expected to be paid (or recovered) using the tax rates and laws
      that have been enacted or substantially enacted by the

year end. Tax expenses are recognised in the income statement or
      statement of comprehensive income according to the treatment of the
      transactions which give rise to them.

Deferred income tax is recognised, using the liability method, on
      temporary differences arising between the tax basis of assets and
      liabilities and their carrying amount in the financial statements.

Deferred income tax is determined using tax rates (and laws) that have
      been enacted, or substantially enacted, by the date of the statement of
      financial position and are expected to apply when the related deferred
      tax asset is realised or deferred tax liability is settled.

Deferred tax assets are recognised only to the extent that it is
      probable that future taxable profits will be available against which the
      temporary differences can be utilised.

2.27 Equity

Ordinary shares are classified as equity. Incremental costs directly
      attributable to the issue of new shares or options are shown in equity
      as a deduction, net of tax, from the proceeds.

Amounts arising on the restructuring of equity and reserves to protect
      creditor interests are credited to the capital redemption reserve.

The cost of its own shares bought into treasury by the company is
      debited to retained earnings as required by the Companies Act 2006. A
      subsequent sale of these shares would result in this entry being wholly
      or partly reversed with any profit on the sale being credited to Share
      Premium.

2.28 Non-controlling (minority) interest

For each business combination, the Group elects to measure any
      non-controlling interest in the acquiree either at fair value or at
      their proportionate share of the acquiree’s identifiable net assets
      which are generally at fair value. Changes in the Group’s interest in a
      subsidiary that do not result in a loss of control are accounted for as
      transactions with owners in their capacity as owner. Adjustments to
      non-controlling interests are based on a proportionate amount of the net
      assets of the subsidiary. No adjustments are made to goodwill and no
      gain or loss is recognised in the statement of profit or loss.

2.29 Dividend distribution

Final dividend distributions to the Company’s shareholders are
      recognised as liabilities in the financial statements in the period in
      which they are approved by the Company’s shareholders. Interim dividends
      are recognised when they are paid.

2.30 Critical accounting estimates and judgements

The Group makes estimates and assumptions concerning the future. The
      resulting accounting estimates will, by definition, seldom equal the
      related actual results. The estimates and assumptions that have a
      significant risk of causing a material adjustment to the carrying
      amounts of assets and liabilities within the next financial year are:

(a) Estimated impairment value of intangible assets

The Group tests annually whether intangible assets with indefinite life
      have suffered any impairment. Other intangible assets are reviewed for
      impairment when an indication of potential impairment exists. Impairment
      provisions are recorded as applicable based on directors’ estimates of
      recoverable values. Details of the impairment reviews performed can be
      found in note 11 of the financial statements.

(b) Income taxes

The Group is subject to income taxes predominantly in the United Kingdom
      but also in other jurisdictions.

Significant estimates are required in determining the provision for
      income taxes. There are some transactions and calculations for which the
      ultimate tax determination is uncertain. The Group recognises assets and
      liabilities based on estimates of the final agreed position.

Where the final tax outcome of these matters is different from the
      amounts that were initially recorded, such differences will impact the
      income tax and deferred tax provisions in the period in which such
      determination is made.

(c) Pension scheme

The Group maintains one defined benefit pension scheme which has been
      accounted for according to the provisions of IAS19. Although the
      assumptions were determined by a qualified actuary, any change in those
      assumptions may materially impact the financial position and results of
      the Group. Details of the assumptions used can be found in note 21 of
      the financial statements.

(d) Share-based payments

The charge to the Income Statement in respect of share-based payments
      has been externally calculated using management’s best estimates of the
      amount of options expected to vest and various other inputs to the
      Black-Scholes model, as disclosed in note 22. Any variation in those
      assumptions may have a material impact on the Group’s future results and
      financial position.

troisième Segment information

Management has determined the operating segments based on the reports
      reviewed by the Board that are used to make strategic decisions. The
      Board considers the business from a geographical perspective.
      Geographically, management considers the performance in the UK and
      Europe, the Far East, Latin America, North America and the Middle East
      and Africa.

Management considers Earnings before Interest, Tax, Depreciation and
      Amortisation (“EBITDA”), adjusted for share-based payments.

Corporate/U.K. Europe Far East Latin America Amérique du nord Middle East and Africa Total
£000's £000's £000's £000's £000's £000's £000's
Year ended 31 March 2018
Total segmental revenue 1,147 8,246 47,421 10,924 26,203 1,536 95,477
Inter-segment revenue (9,198) (4,088) (14,990) (28,276)
Revenue from external customers 1,147 8,246 38,223 6,836 11,213 1,536 67,201
Sale of goods 1,147 8,246 38,223 6,836 11,213 1,329 66,994
Royalties 207 207
1,147 8,246 38,223 6,836 11,213 1,536 67,201
Adjusted EBITDA (2,614) 1,880 13,850 791 4,118 576 18,601
Total assets 24,429 14,499 46,675 15,609 12,179 3,794 117,185
Year ended 31 March 2017
Total segmental revenue 1,265 7,986 43,041 10,554 21,521 1,621 85,988
Inter-segment revenue (8,982) (3,109) (12,475) (24,566)
Revenue from external customers 1,265 7,986 34,059 7,445 9,046 1,621 61,422
Sale of goods 1,265 7,986 34,059 7,445 9,046 1,399 61,200
Royalties 222 222
1,265 7,986 34,059 7,445 9,046 1,621 61,422
Adjusted EBITDA (1,420) 2,025 11,142 1,512 3,151 599 17,009
Total assets 27,612 13,954 39,452 15,907 12,987 3,845 113,757

Goodwill and other intangible assets are initially allocated to the
      geographical segments on the basis of the proportion of sales achieved
      by each segment.

A reconciliation of adjusted EBITDA to profit before tax is provided as
      follows:

2018 2017
£000's £000's
Adjusted EBITDA for reportable segments 18,601 17,009
Depreciation (298) (264)
Revaluation of freehold property 15
(Losses) on disposal of fixed assets (37)
Amortisation (3,428) (3,088)
Impairment of intangible assets (297)
Share-based payment charges (778) (678)
Finance (costs)/income (247) 784
Share of associate's results 7 23
Profit before tax on continuing activities 13,872 13,452

4 Other income

2018 2017
£000's £000's
Management charges 150 166
Rental income 58 145
Sundry income 228 68
436 379

5 Result from operating activities

2018 2017
£000's £000's
Result from operating activities is stated after
          charging/(crediting)
Cost of inventories recognised as an expense 34,887 30,990
Employee benefits expenses 8,567 8,103
Amortisation of intangible assets 3,428 3,088
Impairment of intangible assets 297
Depreciation (notes 12 &13) 298 264
Revaluation of investment property (note 13) (15)
Loss/(profit) on disposal of assets 37
Loss on foreign exchange transactions 970 55
Research and development 81 36
Operating lease rentals 495 638
Fees payable to the Company's auditor for the audit of the parent
          Company and Group annual accounts
17 17
For the audit of the Company's subsidiaries 42 41
Fees payable for audit of the Company's subsidiaries pursuant to
          törvényhozás
14 9
2018 2017
£000's £000's
Earnings before interest, tax, depreciation, amortisation and
          impairment, share-based payments and foreign exchange differences
          (EBITDA)
Profit from operating activities 14,112 12,645
Depreciation 298 264
Revaluation of investment property (15)
Loss/(Profit) on disposal of fixed assets 37
Amortisation 3,428 3,088
Impairment of intangible assets 297
Share-based payments 778 678
18,601 17,009
Foreign exchange differences 970 55
19,571 17,064

Management believe that EBITDA is the most appropriate measure of the
      Group’s performance as it is the initial source for all re-investment
      and for all returns to shareholders. Investors, bankers and analysts all
      focus on this important measure of cashflow because it enables them to
      make judgements about the Group’s ability to generate sufficient cash to
      meet all the re-investment needs of the business while still providing
      adequate returns to shareholders. Therefore, EBITDA has a direct
      relationship with the value of the Group and is seen by our investors as
      a Key Performance Indicator for management.

The following items are adjusted for in the calculation of EBITDA as
      defined by the Group.

Item Rationale for Adjustment

Depreciation and Amortisation

These items are a result of past investments and therefore, although
          they are correctly recorded as a cost of the business they do not
          reflect current or future cash outflows.

Additionally, Depreciation and Amortisation calculations are
            subject to judgement regarding useful lives and residual values of
            particular assets and the adjustment removes the element of
            judgement.

Revaluation of Investment Property

These are subject to judgement and do not reflect cashflows.

Gains and losses on Disposal of Fixed Assets and Impairment of
          Intangibles

These items are viewed as adjustments to depreciation and
          amortisation and therefore the rationale for depreciation and
          amortisation applies.

Share Based Payments

This item is subject to judgement and will never be reflected in the
          Group’s cashflows.

Foreign Exchange differences

Since the key driver of this figure is the revaluation of monetary
          assets denominated in foreign currency at the period end, which
          often reverse later, taking this figure out of the EBITDA figure
          removes volatility from the performance measure. Foreign exchange
          movements are largely outside of the Group’s control so this gives a
          better measure of the Group’s progress than statutory profit
          measures which include them.

6 Finance income

2018 2017
£000's £000's
Finance income
Interest received on short term bank deposits 138 103
Foreign exchange differences on bank balances 681
138 784
Finance costs
Interest paid (14)
Foreign exchange differences on bank balances (371)
(385)
(247) 784

7 Earnings per share

The calculation of basic earnings per share is based on the post-tax
      profit for the year divided by the weighted average number of shares in
      issue during the year.

2018 2017
Earnings Weighted average number of shares Per share amount Earnings Weighted average number of shares Per share amount
£000's 000 (pence) £000's 000 (pence)

Earnings attributable to ordinary shareholders on continuing
          operations after tax

9,315

65,646

14.19

10,565

64,638

16.35

Dilutive effect of share options

605

(0.13)

718

(0.18)

Fully diluted earnings per share

9,315

66,251

14.06

10,565

65,356

16.17

Diluted earnings per share takes into account the dilutive effect of
      share options. For the purposes of calculating earnings per share,
      shares held by the Employee Benefit Trust as part of the Joint Share
      Ownership Plan are excluded from the calculation of the weighted average
      number of shares. The weighted average number of shares held by the
      Trust during the year was nil (2017: 138,246).

8 Taxation

2018 2017
Current tax year £000's £000's

Foreign corporation tax on profits for the year

1,852

1,183

Withholding tax on intercompany dividend

78

61

Research and development tax credits claimed in the year

(40)

(255)

Research and development tax credits – adjustment for prior year

69

Deferred tax

Origination and reversal of temporary differences

266

469

Due to change in effective rate

(5)

Income tax charge

2,225

1,453

2018 2017
£000's £000's
Factors affecting the tax charge for the year

Profit on ordinary activities before taxation

13,872

13,452

Profit on ordinary activities before taxation multiplied by the
          applicable rate of UK corporation tax of 19% (2017: 20%)

2,636

2,690

Effects of:

Non deductible expenses

305

557

Non chargable credits

(397)

(742)

Withholding tax on inter-company dividends

78

61

Enhanced allowance on research and development expenditure

(736)

(1,078)

Different tax rate for foreign subsidiaries

451

214

Reduced effective deferred tax rate

(5)

Unused tax losses carried forward

90

2

Patent box claim

(202)

(275)

Other adjustments

29

Income tax charge 2,225 1,453
2018 2017
% %

Applicable tax rate per UK legislation

19.00

20.00

Effects of:

Non deductible expenses

2.20

4.14

Non chargable credits

(2.86)

(5.51)

Withholding tax on inter-company dividends

0.56

0.45

Enhanced allowance on research and development expenditure

(5.31)

(8.02)

Different tax rate for foreign subsidiaries

3.25

1.59

Reduced effective deferred tax rate

(0.04)

Unused tax losses caried forward

0.65

0,02

Patent box claim

(1.45)

(2.05)

Other adjustments

0.22

Effective tax rate

16.04

10.80

Future tax changes

Changes to the UK corporation tax rates were substantively enacted as
      part of the Finance Bill 2017 (on 6 September 2016). These include
      reductions to the main rate to reduce the rate to 17% from 1 April 2020.
      Deferred taxes at the balance sheet date have been measured using a
      hybrid tax rate of 18%. This is reflected in the financial statements.

9 Profit for the financial year

2018 2017
£000's £000's

Parent Company's profit for the financial year

76

5,144

The Company has elected to take the exemption under Section 408 of the
      Companies Act 2006 not to present the Parent Company income statement.

10. Dividends

2018 2017
£000's £000's
Dividend for the year ended 31 March 2017 of 5.7p per ordinary
stock
4,660
Dividend for the period ended 31 March 2016 of 5.7p per ordinary
stock
3,675
Dividend waived by Employee Benefit Trust (8)
4,660 3,667

The Board is declaring a dividend of 9.2 pence per share in respect of
      the year ended 31 March 2018.

11 Intangible fixed assets

groupe Goodwill Distribution rights Drug registrations, patents and license costs Total
£000's £000's £000's £000's
Költség

At 1 April 2016

17,930

1,442

59,712

79,084

Additions – internally generated

8,238

8,238

Contributions from outside parties

(307)

(307)

At 1 April 2017

17,930

1,442

67,643

87,015

Additions – internally generated

7,176

7,176

At 31 March 2017

17,930

1,442

74,819

94,191

Amortisation

At 1 April 2016

687

29,060

29,747

Charge for the year

72

3,016

3,088

Impairment for the year

297

297

At 1 April 2017

759

32,373

33,132

Charge for the year

72

3,356

3,428

At 31 March 2018

831

35,729

36,560

Net Book Value

At 31 March 2018

17,930

611

39,090

57,631

At 31 March 2017

17,930

683

35,270

53,883

At 31 March 2016

17,930

755

30,652

49,337

The amortisation and impairment charges are included within
      administrative expenses on the income statement.

Distribution rights are amortised over their estimated useful life of 20
      years and reviewed for impairment when any indication of potential
      impairment exists. The remaining amortisation period at the date of the
      financial statements ranged from 5 to 16 years.

The carrying value of goodwill is attributable to the following cash
      generating units:

Entity Date of acquisition

£000’s

ECO Animal Health Limited

1 October 2004

17,359

Zhejiang Eco Biok Animal Health Products Limited

1 April 2007

94

ECO Animal Health Japan Inc

24 December 2009

477

17,930

====================

Goodwill acquired in a business combination is allocated at acquisition
      to the cash generating units (CGU’s) that are expected to benefit from
      the business combination.

The recoverable amounts of the CGU’s are determined from value in use
      calculations. The key assumptions for the value in use calculations are
      those regarding discount rates, growth rates and the estimated remaining
      useful life of the asset which is maintained at 30 years through ongoing
      investment in the cash generating unit.

The Group prepares cashflow forecasts derived from the most recent
      financial budgets and projections that are approved by management for
      the year ahead and then extrapolates them assuming a 3% annual growth
      rate which is well below the current performance of the existing
      üzleti. The directors believe that the long-term growth rate assumed
      does not exceed the average long-term growth rate for the relevant
      markets.

Management estimates discount rates using the pre-tax rates that reflect
      current market assessments of the time value of money and the risks
      specific to the CGU’s. In the current year management estimated the
      applicable rate to be 11%. Management considers that there is adequate
      headroom when comparing the net present value of the cashflows to the
      carrying value of goodwill to conclude that no impairment is necessary
      this year. On current assumptions the excess of recoverable amount over
      carrying value is over £106 million (2017: £78 million).

Management believes that the most significant assumption in the
      calculation of value in use is the estimated growth rate. However, even
      if the growth rate were to be zero, the recoverable amount would still
      be over £74 million more than the carrying value and no impairment would
      be necessary.

The net book value of Drug registrations and licenses can be broken down
      as follows:

£000's

Aivlosin

36,446

Ecomectin

2,111

Others

533

39,090

Aivlosin is a highly effective antibiotic that treats a range of
      specific enteric (gut) and respiratory diseases in pigs and poultry,
      ensuring a rapid return to health. In addition to the welfare benefits,
      healthy animals gain weight faster, digest food more efficiently and get
      to market earlier which all bring economic benefit to the farmer.
      Substantial ongoing product development covering more formulations,
      species and diseases is expected to substantially further increase its
      revenue generating potential. The remaining amortisation period is from
      5 to 20 years.

Ecomectin is an endectocide that controls worms, ticks, lice and mange
      in grazing stock and pigs. The remaining amortisation period is 0 to 10
      years.

Drug registrations and licences are amortised over their estimated
      useful lives of 10 to 20 years, which is the directors’ estimate of the
      time it would take to develop a new product allowing for the Group’s
      patent protection and the exclusivity period which comes with certain
      registrations. The directors have conducted an impairment review in the
      current year by preparing cashflow projections for the year ahead and
      extrapolating the results for the remaining life of the registrations
      assuming zero growth and an 11% discount rate to establish value in use.
      On the current assumptions, (which assume a remaining life of only 5
      years) the excess of the value in use over carrying value is over £23
      million (2017: £12 million).

Fair value calculated as 10 times the current cash generated by the
      registrations gives an even higher value of £159m and this higher figure
      determines the recoverable amount, so management has again concluded
      that no impairment is necessary.

12 Property, plant and equipment

groupe Land and Buildings (freehold) Plant and machinery Fixtures, fittings and equipment Motor Vehicles Total
£000's £000's £000's £000's £000's
Cost or valuation
At 1 April 2016 730 1,658 710 53 3,151
Additions 47 155 63 265
Foreign exchange movements 116 6 122
Disposals (280) (47) (327)
At 1 April 2017 730 1,541 865 75 3,211
Additions 106 218 324
Foreign exchange movements (31) (9) (40)
Disposals (14) (5) (19)
At 31 March 2018 730 1,602 1,083 61 3,476
Depreciation
At 1 April 2016 772 507 39 1,318
Charge for the year 13 166 78 7 264
Foreign exchange movements 51 2 53
Disposals (252) (37) (289)
At 1 April 2017 13 737 587 9 1,346
Charge for the year 13 154 119 12 298
Foreign exchange movements (13) (2) (15)
Disposals (14) (5) (19)
At 31 March 2018 26 864 706 14 1,610
Net Book Value
At 31 March 2018 704 738 377 47 1,866
At 31 March 2017 717 804 278 66 1,865
At 31 March 2016 730 886 203 14 1,833

The freehold property at 78 Coombe Road, New Malden was valued on 11 May
      2017 by Mr R Sworn of Kelion Sworn Chartered Surveyors and Valuers,
      London, W1. The fair value in use of the freehold property was
      determined at £730,000 by means of applying a 7.5% discount rate to the
      annual rental value of the property as determined by local market
      conditions. The property will continue to be valued on a regular basis.

The value of non-depreciable land included within Land and Buildings is
      £180,000.

The freehold property of 78 Coombe Road, New Malden is subject to a
      legal charge held by the company’s bankers dated 20 March 1987.

The value of the freehold property would have been recorded at £270,000
      (2017: £280,000) on a historical cost basis giving rise to the current
revaluation surplus of £360,000 net of deferred tax provision. cette
      balance is not distributable to shareholders.

Depreciation has been included in the administrative expenses line on
      the income statement, except for £99,000 (2017: £114,000) of
      depreciation of production equipment in the Chinese subsidiary ECO Biok,
      which is included within cost of sales.

13 Investment property

Group and Company

Land and
Buildings
(freehold)

Total
£000's £000's
Cost /Revaluation
At March 2016 and March 2017 189 189
Revaluation in the year 11 11
At 31 March 2018 200 200
Depreciation
At March 2016 and March 2017 4 4
Revaluation in the year (4) (4)
At 31 March 2018
Net Book Value
At 31 March 2018 200 200
At 31 March 2017 185 185
At 31 March 2016 185 185

The property in Western Road, Mitcham was valued at £200,000 as at 31
      March 2018 by Mr R. Sworn of Kelion Sworn Chartered Surveyors, London
      W1. This property was previously the Head Office of Lawrence plc (now
      ECO Animal Health Group plc) and is occupied by a charity.

The value of the investment property would have been recorded at
      £136,000 on a historical cost basis. The current revaluation surplus is
      £36,000 net of deferred tax provision. This balance is not distributable
      to shareholders.

14 Fixed asset investment

groupe
Investment in Associate Unlisted investments Total
(Equity) (Cost)
£000's £000's £000's

At March 2016

55

9

64

Share of associate's result for the year

23

23

Foreign exchange differences

10

10

At March 2017

88

9

97

Share of associate's result for the year

7

7

Foreign exchange differences

(6)

(6)

At March 2018

89

9

98

Company
Unlisted investments (subsidiaries) Total
Költség £000's £000's

At March 2016, 2017

21,273

21,273

Written off in the year

(1,196)

(1,196)

20,077

20,077

Impairment

At March 2016 and 2017

1,191

1,191

Eliminated in the year

(1,191)

(1,191)

At March 2018

Net Book Value

At March 2018

20,077

20,077

At March 2016 and 2017

20,082

20,082

The Company holds more than 20% of the share capital of the following
      companies:

Company

Registered office address

Country of registration or incorporation

Class

Shares held %

Subsidiary undertakings held by Company

Zhejiang ECO Biok Animal Health Products Limited

Zhongguan Industrial Area, Deqing, Zhejiang Province

P. R. China

Ordinary

3

Shanghai ECO Biok Veterinary Drug Sale Company Ltd. (via Zhejiang
          ECO Biok Animal Products Ltd.)

Room 1502-3, Imago Plaza, No 99 Wuning Road, Ptro District, Shanghai
          200063

P. R. China

Ordinary

3

Petlove Limited

78 Coombe Road, New Malden, Surrey, KT3 4QS

Great Britain

Ordinary

91

ECO Animal Health Limited

78 Coombe Road, New Malden, Surrey, KT3 4QS

Great Britain

Ordinary

100

Subsidiary undertakings held by Group

ECO Animal Health Southern Africa (Pty) Limited

228 Athol Road

Highlands North

Johannesburg 2192

South Africa

Ordinary

100

Zhejiang ECO Biok Animal Health Products Limited

Zhongguan Industrial Area, Deqing, Zhejiang Province

P .R. China

Ordinary

48

Shanghai ECO Biok Veterinary Drug Sale Company Ltd. (via Zhejiang
          ECO Biok Animal Products Ltd.)

Room 1502-3, Imago Plaza, No 99 Wuning Road, Ptro District, Shanghai
          200063

P. R. China

Ordinary

48

ECO Animal Health do Brasil Comercio de Produtos Veterinarios Ltda.

Av. Dr. Cardoso de Melo, 1470, CI 311, Villa Olimpia, CEP 04548-005
          Sao Paulo

Brazil

Ordinary

100

ECO Animal Health Japan Inc

1-2-1, Hamamatsu-cho, Minato-ku, Tokyo

Japan

Ordinary

100

ECO Animal Health USA Corp.

344 Nassau Street, Princeton, New Jersey 08540

U.S.A.

Ordinary

100

Interpet LLC

3775 Columbia Pike, Ellicott City, Maryland, 21043

U.S.A.

Ordinary

100

ECO Animal Health de Mexico, S. de R. L. de C. V.

Av Techologico Sur 134-4, Unidad Habitacional Moderna, Queretaro,
          76030

Mexique

Ordinary

100

ECO Animal Health de Argentina S.A.

Calle 4 E 43/44 N: 581 P: 6 D:B La Plata, Buenos Aires, Argentina

Argentina

Ordinary

100

ECO Animal Health Malaysia Sdn. Bhd

10e Floor, Menara Hap Seng, No 1 & 3, Jalan P Ramlee,
          50250 Kuala Lumpur

Malaysia

Ordinary

100

ECO Animal Health India Private Ltd

No.33/5, Second Floor, Mount Kailash Building, Meanee Avenue Road,
          Ulsoor, Bangalore, Karnataka 560042

India

Ordinary

100

ECO Animal Health Europe Ltd

6 Northbrook Road, Dublin 6, Eire

Republic of Ireland

Ordinary

100

The principal activity of these undertakings for the last relevant
      financial year was as follows:

Principal activity

ECO Animal Health Limited

Distribution of animal drugs

ECO Animal Health Southern Africa (Pty) Limited

Non-trading

Petlove Limited

Non-trading

Zhejiang ECO Biok Animal Health Products Limited

Manufacture of animal drugs

Shanghai ECO Biok Veterinary Drug Sale Company Ltd.

Distribution of animal drugs

ECO Animal Health do Brasil Comercio de Produtos Veterinarios Ltda

Distribution of animal drugs

ECO Animal Health Japan Inc.

Distribution of animal drugs

ECO Animal Health USA Corp.

Distribution of animal drugs

Interpet LLC

Non-trading

ECO Animal Health de Mexico, S. de R. L. de C. V.

Distribution of animal drugs

ECO Animal Health de Argentina S.A.

Non-trading

ECO Animal Health Malaysia Sdn. Bhd

Non-trading

ECO Animal Health India Private Ltd

Non-trading

ECO Animal Health Europe Ltd

Non-trading

The aggregate amount of capital and reserves and the results of these
      undertakings for the last relevant financial year were:

Equity Profit/(loss) Equity Profit/(loss)
for the year for the year
2018 2018 2017 2017
£000's £000's £000's £000's

ECO Animal Health Limited

26,556

7,950

18,871

10,809

ECO Animal Health Southern Africa (Pty) Limited

258

23

234

18

Zhejiang ECO Biok Animal Health Products Ltd

10,576

4,758

8,857

2,926

ECO Animal Health do Brasil Comercio de Produtos Veterinarios Ltda.

525

(442)

1,102

(261)

ECO Animal Health Japan Inc.

1,081

36

1,106

90

ECO Animal Health de Mexico, S. de R. L. de C. V.

64

(39)

(317)

(8)

ECO Animal Health USA Corp.

142

122

27

42

ECO Animal Health India (Private Ltd)

(1)

1

ECO Animal Health Europe Ltd

ECO Animal Health Malaysia Sdn Bhd

(14)

(3)

(11)

(4)

The equity and results of Shanghai ECO Biok Veterinary Drug Sale Company
      Ltd are included within those disclosed for Zhejiang ECO Biok Animal
      Health Products Limited.

All of the subsidiaries listed above were included in the consolidation
      for the year.

Zhejiang ECO Biok Animal Health Products Limited and ECO Animal Health
      do Brasil Comercio de Produtos Veterinarios Ltda both have 31 December
      year ends. The Group receives management accounts for the three months
      to 31 March for these subsidiaries for use in preparing the consolidated
      financial statements.

ECO Argentina S.A. which holds neither assets nor liabilities and which
      has not traded since formation have been excluded from consolidation.
      Interpet LLC has also been excluded from consolidation as it holds no
      assets or liabilities and has ceased trading.

The following trading subsidiaries have no requirement for audit under
      local legislation;

ECO Animal Health do Brasil Comercio de Produtos Veterinarios Ltda.

ECO Animal Health Japan Inc.

ECO Animal Health USA Corp.

ECO Animal Health de Mexico, S. de R. L. de C. V.

Joint Operations

The Group also holds (by means of its ownership of ECO Animal Health USA
      Corp.), a 50% interest in Pharmgate Animal Health LLC, which is resident
      in the U.S.A. Pharmgate Animal Health LLC distributes the Group’s
      products in the U.S.A.

The Group also holds a 50% interest in Pharmgate Animal Health Canada
      Inc, which distributes its products into Canada.

Both Pharmgate Animal Health LLC and Pharmgate Animal Health Canada Inc.
      have accounting years which end on 31 December.

The Group’s holdings in each of the joint operations’ share capital is
      given in the table below:

Pharmgate Animal Health Canada Inc Holding Shares Holding
(shares) in issue %
Common Shares 100 200 50
Class A shares 100 100 100
Class B Shares 100
Pharmgate Animal Health USA LLC Holding Shares Holding
(shares) in issue %
Common Shares 100 200 50
Class A shares 100 100 100
Class B Shares 100

In each case class A shares carry the rights to dividends payable out of
      profits attributable to the Group. These are made up of profits made by
      products supplied by the ECO Group plus 50% of any profit relating to
      new products developed jointly by the partners to the joint operation.

The following amounts included in the Group’s financial statements are
      related to its interest in these joint operations.

Pharmgate Animal Health
Pharmgate LLC Canada Inc
2018 2017 2018 2017
£000's £000's £000's £000's

Current assets

1,155

935

616

461

Current liabilities

(1,130)

(907)

(615)

(461)

Sales

8,299

6,145

2,958

2,462

Költségek

(1,386)

(1,285)

(335)

(274)

Associated Company

The Group also holds (by means of its ownership of ECO Animal Health
      Japan Inc.) a 47.62% interest in EcoPharma.com which is resident in
      Japan. This company distributes Animal Health products and other general
      merchandise within Japan.

ECO Animal Health Japan Inc’s holding in EcoPharma.com is 10,000,000
      shares out of a total of 21,000,000 shares.

The following amounts included in the Group’s financial statements are
      related to its interests in this associated company.

2018 2017
£000's £000's

Investments (share of net assets)

At 1 April 2017

88

55

Share of results for the year

7

23

Foreign exchange movement

(6)

10

At 31 March 2018

89

88

15 Inventories

groupe Company
2018 2017 2018 2017
£000's £000's £000's £000's
Raw materials and consumables 12,975 14,503
Finished goods and goods for resale 4,380 4,493
Work in progress 308 679
17,663 19,675

The cost of inventories recognised as an expense and included in cost of
      sales in the period amounted to £34,887,000 (2017: £30,894,000).

16 Trade and other receivables

groupe Company
Non-current 2018 2017 2018 2017
£000's £000's £000's £000's
Amounts owed by group undertakings 46,236
groupe Company
Current 2018 2017 2018 2017
£000's £000's £000's £000's

Trade receivables

15,777

14,912

Amounts owed by group undertakings

46,043

Amounts owed by joint operations

361

390

Other receivables

488

286

186

22

Prepayments and accrued income

567

570

27

67

17,193

16,158

213

46,132

As at 31 March 2018, trade receivables of £4,020,000 (2017: £1,936,000)
      due to the Group and £nil (2017: £nil) due to the Company were past due
      but not impaired. These relate to long standing distributors with whom
      we have agreed settlement terms and with whom there is no history of
      default. The ageing analysis of these trade receivables is as follows:

As at 31 March 2018, trade receivables of £470,000 (2017: £501,000) were
      impaired and provided for. The impaired receivables mainly relate to
      historic debt for which recovery is still being sought. The Group
      mitigates its exposure to credit risk by extensive use of commercial
      credit reference agencies, close management of its customers’ trading
      against terms offered and use of retention of title clauses wherever
      possible. The ageing analysis of the impaired balances is as follows:

groupe Company
2018 2017 2018 2017
£000's £000's £000's £000's
Current debt 86 9
Up to 3 months past due 19 31
3 to 6 months past due 19 131
Over 6 months past due 346 330
470 501

Movement on the Group provision for impairment of trade receivables is
      as follows:

groupe 2018 2017
£ £

Balance at 1 April

501

453

Provided in the year (net of recoveries)

(5)

48

Written off in the year

(26)

Balance at 31 March

470

501

The carrying amounts of trade and other receivables are denominated in
      the following currencies:

groupe Company
2018 2017 2018 2017
£000's £000's £000's £000's

Pounds Sterling

805

574

213

46,132

Euros

3,420

3,883

U S Dollars

7,314

7,184

Chinese RMB

3,210

1,624

Brazilian Real

363

846

Japanese Yen

153

644

Canadian dollars

346

441

Mexican Pesos

1,457

827

Other currencies

125

135

17,193

16,158

213

46,132

The carrying amounts of trade and other receivables are not
      significantly different to their fair values.

17 Deferred tax

groupe

Deferred tax assets and liabilities are attributable to the following:

Liabilities Háló
2018 2017 2018 2017
£000's £000's £000's £000's
Drug registration expenditure (3,031) (2,785) (3,031) (2,785)
Freehold property (79) (79) (79) (79)
Investment property (11) (8) (11) (8)
Plant and equipment (60) (43) (60) (43)
Tax losses carried forward 1,888 1,888 1,888 1,888
Amount (payable) after more than one year (1,293) (1,027) (1,293) (1,027)

The movement on the deferred tax account can be summarised as follows:

Drug registration expenditure Freehold property Investment property Plant and machinery Total
£000's £000's £000's £000's £000's

At 1 April 2017

(897)

(79)

(8)

(43)

(1,027)

(Charge) for the year through income statement

(246)

(3)

(17)

(266)

At 31 March 2018

(1,143)

(79)

(11)

(60)

(1,293)

The tax losses carried forward are not expected to expire under current
      legislation.

Any future dividend received from the Chinese subsidiary Zhejiang ECO
      Biok Animal Health Products Limited will be subject to a 5% withholding
      tax. The deferred tax liability in respect of this has not been
      recognised.

Company 2018 2018 2018 2017 2017 2017

Freehold
propriété

Investment
propriété

Total

Freehold
propriété

Investment
propriété

Total
£000's £000's £000's £000's £000's £000's

At 1 April

(79)

(8)

(87)

(89)

(8)

(97)

Charge for the year through income statement

(3)

(3)

Movement in the year through revaluation reserve

10

10

At 31 March

(79)

(11)

(90)

(79)

(8)

(87)

A charge of £3,000 (2017: no charge) was recognised in the Company’s
      income statement for the year. No movement (2017: credit of £10,000) was
      recognised in the Company’s Revaluation Reserve.

18 Cash and cash equivalents

Cash and cash equivalents comprise cash and short-term deposits held by
      the Group. The carrying amount of these assets are not significantly
      different to their fair value.

groupe Company
2018 2017 2018 2017
£000's £000's £000's £000's

Cash and cash equivalents

21,261

20,602

4,959

8,684

Net funds per cash flow

21,261

20,602

4,959

8,684

19 Trade and other payables

groupe Company
2018 2017 2018 2017
£000's £000's £000's £000's
Trade payables 8,860 11,132 33 115
Other payables 1,374 1,790 178 403
Accruals and deferred income 481 811 23 8
10,715 13,733 234 526

20 Borrowings

The Group has the facility to overdraw in specific currencies but no net
      facility. The interest rate for all currency overdrafts is 2.75 per cent
      over the relevant currency base rate and the borrowings are secured by
      two debentures held over all assets of the company dated 28 January 1995
      and 28 November 2006.

21 Pension and other post-retirement benefit commitments

Defined Contribution Pension Scheme

The Group operates defined contribution pension schemes for the benefit
      of certain directors and senior employees. The assets of the schemes are
      held separately from the Group and independently administered by
      insurance companies. The pension cost charge represents contributions
      payable to the funds in the year and amounted to £274,000 (2017:
      £269,000).

Defined Benefit Pension Scheme

The Group operates a defined benefit scheme in the UK for ex-employees
      only. A full actuarial valuation was carried out at 6 April 2015 and
      updated 31 March 2018 by a qualified independent actuary. The major
      assumptions used by the actuary were:

31 March 1 April
2018 2017

Discount rate

2.4%

2.8%

Rate of increase in pension payment

2.05%

2.25%

Inflation assumption with a maximum of 5% p.a.

3.05%

3.25%

Mortality rates

No pre-retirement mortality is assumed (2017: pre-retirement mortality
      was based on the mortality table known as AMCOO for males and AFCOO for
      females and 70% of the mortality indicated by this table was taken).

Post retirement mortality is based on 100% of the SAPS “S2” normal
      tables, based on the members’ year of birth, improving in line with CMI
      2017 projections with a 1.25% long term trend rate. The previous year’s
      figures were based on the mortality table known as S2NMA for males and
      S2NFA for females with reference to member’s years of birth. Allowance
      was made for the improvement in mortality experienced recently and
      expected in the future by using 100% of the CMI’s 2017 improvement
      table, subject to a minimum improvement rate of 1.25% for males and 1%
      for females.

Defined Contribution Pension Scheme

Under these mortality assumptions, the expected future lifetime for a
      member retiring at age 65 at the year end would be 22.1 years for males
(2017: 22.6 years) and 24.1 years for females (2017: 24.3 years). parce que
      members retiring in 20 years time, the expectation of life would be 23.4
      years for males (2017: 23.9 years) and 25.6 years for females (2017:
      25.5 years).

The weighted average term of the liabilities is 10 years (2017: 23
      years).

The scheme is exposed to a number of risks including:

1. Interest rate risk: Movements in the discount rate used could affect
      the present value of the defined benefit pension obligations.

2. Longevity risk: Changes in the estimated mortality rates of former
      employees could affect the present value of the defined benefit pension
      obligations.

3. Investment risk: Variations in the actual return from the scheme’s
      investments could affect the scheme’s ability to meet its future pension
      obligations.

Eredmények 2018 2017
£000's £000's £000's £000's
Assets at start of year 2,314 2,715
Defined benefit obligation at start of year (2,435) (2,431)
Net (liability)/asset at 1 April (121) 284
Expected return on assets 65 95
Interest cost (68) (85)
(3) 10
(Loss) on asset return (6) (165)
Experience (loss) (300)
(Loss) on changes in assumptions (9) (18)
Statement of other comprehensive income (15) (483)
Employer contributions gross 39 76
Expenses paid by trustees (8)
39 68
Net (liability) at 31 March 2017 (100) (121)
Actual assets at end of year 2,503 2,314
Actual defined benefit obligation at end of year (2,603) (2,435)

The pension fund assets are all held within a policy managed by an
      insurance company.

Reconciliation of changes in the asset value during the year

2018 2017
£000's £000's £000's £000's
Fair value of assets at 1 April 2,314 2,715
Expected return on assets 65 95
(Loss) on asset return (7) (165)
Employer contributions (gross) 39 76
Expenses paid by trustees (8)
Increase/(Decrease) in secured pensioners' value due to scheme
expérience
93 (247)
Benefits paid (1) (152)
Fair value of assets at 31 March 2018 2,503 2,314
Reconciliation of changes in the liability value during the year
Defined benefit obligation at 1 April 2,435 2,431
Interest cost 68 85
Experience loss on liabilities 300
Loss on changes in assumptions 8 18
Increase/(Decrease) in secured pensioners' value due to scheme
expérience
93 (247)
Benefits paid (1) (152)
Defined benefit obligation at 31 March 2018 2,603 2,435

The expected contribution to be paid by the employer during the next
      accounting year is £59,000.

Year ended 31 March

2018 2017 2016 2015 2014
£000's £000's £000's £000's £000's

Fair value of plan assets

2,314

2,715

2,985

2,680

Present value of defined benefit obligation

2,435

2,431

2,782

2,478

(Deficit)/Surplus in plan

(121)

284

203

202

Experience (losses)/gains on plan liabilities

(300)

13

2

4

Defined benefit obligation – sensitivity analysis

The following amounts are the effect (on the defined benefit obligation)
      of reasonably possible changes to the key actuarial assumptions, as
      required by IAS 19.

Actuarial assumption Reasonably Possible Change (Decrease)/Increase in Defined Benefit Obligation
2018 £000's 2017 £000's
Discount rate (+/- 1%) (27) 32 (25) 30
Members' life expectancy (+/- 1year) 7 (7) 7 (7)

The company has given a floating charge dated 1 December 2006 over all
      of its assets to the trustees of the pension fund to secure all present
      and future obligations and liabilities to the pension fund.

22 Share-based payments

The measurement requirements of IFRS2 have been implemented in respect
      of share options that were granted after 7 November 2002. The expense
      recognised for share-based payments made during the year is shown in the
      following table:

2018 2017
£000's £000's

Total expense arising from equity settled share-based transactions

778

678

The share-based payment plans are described below:

Movements in issued share options and jointly owned shares during the
année

The following table illustrates the number and weighted average exercise
      prices (WAEP) of and movements in, share options and jointly owned
      shares during the period:

Options

Jointly owned
megoszt

Options

Jointly owned
megoszt

2018 2018 2018 2018 2017 2017 2017 2017
000's WAEP 000's WAEP 000's WAEP 000's WAEP
£ £ £ £

Outstanding at 1 April

5,593

2.96

5,694

2.41

552

2.05

Granted during the period

365

6.20

1,272

4.35

Expired/cancelled during the period

(41)

2.37

Exercised during the period

(402)

1.77

(1,332)

1.94

(552)

2.05

Outstanding at 31 March

5,556

3.26

5,593

2.96

Exercisable at 31 March

910

1.97

474

1.84

The average share price during the year was 587.34p (2017: 456.85p).

The maximum aggregate number of shares over which options may currently
      be granted cannot exceed 10 per cent of the nominal share capital of the
      Company on the grant date. The options outstanding at 31 March 2018 had
      a weighted average share price of £3.26 (2017: £2.96) and a weighted
      average contractual life of 4.8 years (2017: 5.6 years).

ECO Animal Health Group plc Executive Share Option Scheme

In accordance with the Executive Share Option Scheme, approved and
      unapproved share options are granted to directors and employees who
      devote at least 25 hours per week to the performance of duties or
      employment with the Company.

Details of options granted to directors can be found in the Directors
      Report and notes 29 (Directors Emoluments) and 31 (Related Party
      Transactions).

The exercise price of the options is equal to the market price of the
      shares at the date of grant. The options vest three years from the date
      of grant and if the option holder ceases to be a director or employee of
      the Company due to injury, disability, redundancy or retirement on
      reaching pensionable age or any other age at which they are bound to
      retire at in accordance with the terms of their contract of employment,
      the option may be exercised within a period of six months after the
      option holders so ceasing, although the Board may, at its discretion,
      extend this period by up to 36 months after the date of cessation.

If the option holder ceases employment for any other reason, the option
      may not be exercised unless the Board permits. The approved and
      unapproved options will be forfeited where they remain unexercised at
      the end of their respective contractual lives of ten and seven years.

An analysis of the expiry dates of the outstanding options is given
      below:

Date of grant Unapproved Approved

Exercise
prix
(pence)

Expiry date
06 August 2009 12,000 135.00 06 August 2019
11 October 2011 11,000 186.50 11 October 2021
11 October 2011 75,000 186.50 11 October 2018
09 July 2012 100,000 222.50 09 July 2018
09 October 2013 27,340 196.00 09 October 2023
09 October 2013 55,660 196.00 09 October 2020
21 August 2014 40,000 161.50 07 August 2024
21 August 2014 45,100 161.50 07 August 2021
13 February 2015 97,950 200.50 13 February 2025
13 February 2015 446,050 200.50 13 February 2022
16 April 2015 4,000 239.00 16 April 2025
16 April 2015 41,000 239.00 16 April 2022
26 August 2015 135,650 265.00 26 August 2025
26 August 2015 1,680,350 265.00 26 August 2022
18 December 2015 700,000 312.50 18 December 2022
18 January 2016 10,200 315.00 18 January 2026
18 January 2016 362,800 315.00 18 January 2023
17 February 2016 24,600 312.50 17 February 2026
17 February 2016 400 312.50 17 February 2023
01 March 2016 9,600 312.50 01 March 2026
01 March 2016 40,400 312.50 01 March 2023
12 September 2016 26,950 432.50 12 September 2026
12 September 2016 445,050 432.50 12 September 2023
15 September 2016 12,750 435.00 15 September 2026
15 September 2016 777,250 435.00 15 September 2023
11 October 2016 6,000 492.50 11 October 2026
11 October 2016 4,000 492.50 11 October 2023
21 September 2017 56,015 620.00 21 September 2027
21 September 2017 308,985 620.00 21 September 2024
5,082,045 474,055

ECO Animal Health Group plc Joint Share Ownership Plan

The shares are awarded at the market price on the day of the award and
      are held jointly by the employee concerned and the ECO Animal Health
      Group plc Employee Benefit Trust. After a three year vesting period, the
      shares may be sold at the option of the employee. The proceeds of sale
      are split between the trust and the employee so that the Trust receives
      the original market value of the shares plus a 5.9% per annum carry
      charge, with the employee receiving any excess over this amount.

Because these are actual issued shares in the company rather than
      options there is no expiry date associated with jointly owned shares.
      However, they will normally be forfeit if the employee ceases to be an
      employee of the company for any reason other than death, injury,
      redundancy, retirement on or after normal retirement age or disposal by
      the Group of the employing business entity.

The market price of the shares at 31 March 2018 was 531.0p with a range
      in the year of 500.0p to 680.0p.

No shares are currently held under the terms of the Joint Share
      Ownership plan.

Inputs to the Valuation Model (for options and jointly owned shares)

The fair value of share options granted prior to 31 March 2007 were
      estimated at the time of grant using trinomial pricing model, taking
      into account all the terms and conditions upon which the options were
      granted. For options issued after 1 April 2007, the directors took the
      decision that a Black-Scholes model would be more appropriate.

The following table lists the inputs to the Black-Scholes model which
      applies to both options and jointly owned shares.

2018 2017 2016 2015 2014

Vesting period (years)

3

3

3

3

Option expiry (years)

7-10 yrs

7-10 yrs

7-10 yrs

7-10 yrs

7-10 yrs

Dividends expected on the shares

1.10%

1.50%

1.50%

2.0-2.3%

1.4-1.9%

Risk free rate (average)

1.00%

1.00%

1.00%

1.00%

0.5-1.2%

Volatility of share price

20%

20%

20%

15%

20%

Weighted average fair value (pence)

98.6

61.4

43.0

19.2

29.1

The risk-free rate has been based on the yield from UK Government
      treasury coupons. The volatility of the share price was estimated based
      on standard deviation calculations on the historic share price.

The fair value of the part interest in the jointly owned shares was
      calculated using a Black-Scholes model with the same assumptions as
      those used for the options issued during the same year.

23 Share capital

2018 2017
£000's £000's
Authorised
68,100,000 Ordinary shares of 5p each 3,405 3,405
10,790 Deferred ordinary shares of 10p each 1 1
32,334 Convertible preference shares of £1 each 32 32
3,438 3,438
Allotted, called up and fully paid
65,824,816 (2017: 65,422,706) Ordinary shares of 5p each 3,291 3,271

During the year 402,110 shares were issued at a premium of £693,000 as a
      result of the exercise of options by employees. (2017: 1,332,260 shares
      at a premium of £2,516,000).

24 Non-controlling (minority) interests

2018 2018 2017 2017
£000's £000's £000's £000's
Balance at 1 April 4,342 3,202
Share of subsidiary's profit for the year 2,332 1,434
Share of foreign exchange (loss)/gain on net investment (100) 293
2,232 1,727
Share of dividend paid by subsidiary (1,389) (587)
Balance at 31 March 5,185 4,342

25 Treasury share reserve

2018 2017
£000's £000's
Balance at 1 April 1144
Repaid on disposal of jointly owned shares 1134
Balance written off to income statement 10
Balance at 31 March

26 Other reserves

Group and Company

Capital
megváltás
reserve

Reserve for
share-based
kifizetések

Total
£000's £000's £000's
At 31 March 2016 106 1,922 2,028
Share-based payments 678 678
Transfer to retained earnings on expiry of options (257) (257)
At 1 April 2017 106 2,343 2,449
Share-based payments 778 778
Transfer to retained earnings on expiry of options (404) (404)
At 31 March 2018 106 2,717 2,823

The only material other reserve remaining at the year end is the reserve
      for share-based payments which records the total amount which has been
      charged to the Group’s results in respect of unexpired share-based
      payment arrangements.

Included in the Group’s retained earnings are the following exchange
      movements which have been taken directly to reserves on consolidation of
      the subsidiaries and joint operation listed below:

At 1 April Movement At 31 March
2017 in the year 2018
£000's £000's £000's
In respect of:
Zhejiang ECO Biok Animal Health Products Limited 949 (104) 845
ECO Animal Health do Brasil Comercio de Produtos Veterinarios Ltda (196) (134) (330)
ECO Animal Health Japan Inc. 59 (81) (22)
ECO Animal Health USA Corp. (19) (7) (26)
ECO Animal Health de Mexico, S. de R. L. de C. V. (44) 58 14
ECO Animal Health Southern Africa (pty) Ltd.
Pharmgate LLC 6 (3) 3
Pharmgate Canada LLC
Foreign currency differences attributable to owner credited
          directly to reserves.
755 (271) 484

Short Name: ECO Animal Health

Category Code: FR

Sequence Number: 650599

Time of Receipt (offset from UTC): 20180629T180519+0100

Bannière 728x90
Mutuelle Animaux en 7 étapes – ECO Veterinary UK Regulatory Notice: Résultat
4.8 (97%) 73 votes
 

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