Natural animal feed specialist Anpario (ANP) has seen a healthy first half, helped by bumper trading overseas, a restructured UK division and strong performance from Meriden Animal Health, acquired 18 months ago.
Group underlying cash profit surged 28 per cent to £1.7m, reflecting a 36 per cent rise in international cash profit to £1.5m, but also fairly flat conditions in the UK where there was pressure from a subdued organic animal feed market. Within the international division, underlying sales grew 7.5 per cent, thanks to strong trading in Asia and Africa, with the Chinese subsidiary posting an impressive 72 per cent sales rise, despite the impact of avian influenza and low pork prices.
European trading was challenging, but restricting credit lines and payment terms to customers resulted in double-digit growth in profitability. Meanwhile, the group's technical team has been restructured, to include staff with veterinary or science qualifications. Moreover, Anpario opened a subsidiary in Brazil during the period, as well as a regional office in Malaysia. It also launched a toxin binder additive range in the UK, which delivered year-on-year revenue growth of 38 per cent.
Broker FinnCap expects full-year pre-tax profit of £3m, giving EPS of 12.6p (from £2.8m and 12.1p in 2012).
| ANPARIO (ANP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 195p | MARKET VALUE: | £38.4m | |
| TOUCH: | 192p-197p | 12-MONTH HIGH: | 195p | LOW: 103p |
| DIVIDEND YIELD: | 1.5% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 97p* | NET CASH: | £5.6m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 10.8 | 0.90 | 3.31 | nil |
| 2013 | 13.0 | 1.51 | 6.67 | nil |
| % change | +20 | +68 | +102 | - |
*Includes intangible assets of £9.1m, or 46p a share | ||||
