Zambian agriculture play Zambeef has enjoyed a strong opening half to the year, but its sparkling results continue to be overshadowed by a tax dispute with the Zambian authorities. Nonetheless, there is sufficient latent growth potential in the business to retain our buy recommendation.
IC TIP:
Buy
at
33.5p
Stripping out the $9.6m (£6.1m) provision the company has made for the tax dispute, revenues rose by 32 per cent to $127.6m and pre-tax profits by 53 per cent to $8.1m. And the company is in the happy situation of having to decide where and when to expand production due to the strength of demand. Its chicken, egg, beef and pork businesses all reported demand outstripping supply during the first half.
