KCQ

KCQ

The spending in research and development of Dechra Pharmaceuticals has doubled in the last 5 year, as of June 30 2013 the company spent £8.0m in research and development. Going through the company's financial statement I found that the company is in a good space right now. The group revenue and profit before taxation is up compared to the previous year. At the end of June 30 2013 the company made a profit of £18.3 m. The dividend per share is also up by 14.1% to 14.00p.

Questions:

• Even though the company is making a good profit and the revenue is up why is the share price fluctuating and not just increasing.
• Why is that the company didn't make high amount of cash  but the company's revenue, dividend per share and earning per share grew in 2013.

Challenges and opportunities

• Dechra Pharmaceutical's product has been a leading position in the market. The veterinary  market, whether companion animals or livestock, is still strong which gives the opportunity to expand the business to new countries.

• since its also a research and development based company there are few uncertainties like the failure of clinical trial and the company may not meet the regulatory requirements.

• the company's fluctuating exchange rate may also effect the profitability of the business.

 The information I found on http://www.dechraplc.com/Default.aspx?ID=150 quite helpful for understanding what Dechra Pharmaceuticals PLC does and how its financial position is, though the large number of financial statement was a bit hard to keep up with and there were few heading I didn't understand. Overall I fell the company is in the right track and investing in it is a profitable decision.

company's stock price and forecast

Chief executive Ian Page said: ""We continue to make progress in all four aspects of our strategy and we believe we are well positioned to continue to strengthen our position within the global animal health markets and to deliver future growth." 

Dechra Pharmaceuticals news about shares price chart in 2008 



Dechra Pharmaceuticals is listed in London Stock Exchange, it’s share price has fluctuated within the year, 1 year ago its share price was 753.50p which fell down to 694.50p 6 months ago and 679.00p 3 months ago. A month ago Dechra's share price was 686.00p and a week ago it was 689.00p.

 

if you want to know about the company and its stock you can visit the following link :
http://www.4-traders.com/DECHRA-PHARMACEUTICALS-PL-4003059/

 According to the Investment Chronicles, investment analyst advise d investors to hold their positions in Dechra Pharmaceuticals PLC as the stock is expected to better than the market return.

company's financial position and key strength

While browsing through the net i found the following bar graph about the financial statement of Dechra Pharmaceuticals. The company's revenue, dividend per share and earning per share grew year on but the company did not generate huge amount of cash in 2013.

Balance in GBP

 

 

 

 

 Income statement in GBP 

 

 

 

Growth Rate in GBP

 

 

Dechra Pharmaceuticals key strengths

      ·         Customer satisfaction

·         Wide range of licensed veterinary products

·         Due to the manufacturing and sales of products for both companion and     farm animals dechra has a marketing advantage over competitor products

·         International footprint

·         Expertise and innovation

 

Dechra pharmaceuticals Introduction

 

Dechra Pharmaceuticals is a veterinary pharmaceutical business founded in 1997. Through the acquisitions of North Western Laboratories, Cambridge Specialist Laboratory Services (“CSLS”), Anglian Pharma PLC, VetXX  Dechra Pharmaceutical PLC increased its manufacturing revenue, enlarged product ranges and strengthen its position in dermatological market. It is a English based company  that now operates in 11 European countries as well as in USA. The company’s operation include developing, manufacturing , marketing and sales of quality veterinary products  mainly for dogs, cats and horses worldwide. In the beginning Dechra’s products were entirely focused on companion animals but later on they widen the range to farm animals.

 

Dechras products have a leading position in the market.  Few of Dechra’s licensed products are:

Canaural- Canaura is a leading product for treating otitis externa in dogs and cats.

Fuciderma-It’s the only licensed product for treatment of  dermatitis and intertrigo.

DermaPet-It’s a range of products like shampoo, conditioners and ear products for cats and dogs.

 Dechra also has product range for pets diet.Apart from these Dechar manufactures plenty of products like Octacillin and Spludox  for swine and poultry.

HI!

Welcome to my blog page, I am Siwani Basnet. I am a business undergraduate majoring in accounting in Central Queensland University, Melbourne campus. I am a first year student and I started this blog as part of my Accounting assignment.