As expected, the acquisition of Randlab is progressing well and has led to a step change in profitability for Animalcare, with Adj EBITDA +40% in the period. Set against this is news of the suspension of sales of a key product (hopefully temporary) and ongoing translational FX headwinds. We therefore trim our PBT/EPS forecasts by 4-5% and, after a strong re-rating to our unchanged Target Price of 290p, move to Hold (from Buy).
