Animalcare (AIM:ANCR) - customer concentration update
Our recent commentary on Animalcare, the leading supplier of veterinary medicines, drew attention to the customer concentration. Following guidance from the company we can provide clarification on this point
Our commentary stated that customer concentration could be viewed a concern with 3 key customers representing 91% of Group revenue The Company has clarified that this is driven by the supply chain model in the UK whereby there are 3 main wholesalers supplying the whole market. So Animalcare sells product into the wholesalers who in turn sell these products to circa 4,500 vet practices/branches within the UK. The Company’s sales team (field force and telesales) visit/contact vet practices to create the pull-through from the wholesalers. So Animalcare services the whole UK market, it is the supply chain that means 91%…