Brokers' views: Brewin Dolphin

Brewin has maintained its buy recommendation on Animalcare Group (ANCR) following a solid set of results from the supplier of veterinary medicines.

Over the six months to 31 December revenues grew by 12 per cent to £6 million, driven by the success of its ‘new products’ division, also reporting a 33 per cent increase in EBITA and growth of 70 per cent in the underlying EPS.

Analysts Sahill Shan and Chris Glasper argue that while the ‘companion animal market in the UK is not without challenges’ the company ‘continues to deliver double digit revenue growth from a combination of new products gaining traction and increased pull-through of some of the older product lines.’

Pencilling in pre-tax profits of £3.5 million for the year to June 2011 on a turnover of £12.3 million, a 12-month target price of 173p is identified.

Still caring
Regarding social care services specialist CareTech (CTH), the duo of Glasper and Shan comment that its recent AGM update ‘suggests a satisfactory start’ to the year. Commenting that ‘mature occupancy remains robust’, the team insist that ‘given the structural attributes of the specialist care segment’ the shares are ‘attractively valued’.

Forecasting pre-tax profits of £19.4 million on revenue of £111.8 million for the year to September 2011, a dividend per share of 6.3p is also expected. Identifying a 12-month price target of 421p, the buy recommendation is reiterated.