Anpario – 330p

11 September 2019 – interim results

The producer and distributor of natural animal feed additives has reported interim results for the six months to 30 June and these have shown a reduction in revenue to £14.3m (2018: £14.8m) although pre-tax profit actually rose to £2.3m (2018: £2.2m).  Diluted earnings per share actually increased to 8.88p (2018: 8.66p) and there was a 14% increase in the interim dividend to 2.5p (2018: 2.2p).  The group had net cash balances of £13.7m (31 December 2018: £12.9m).  There were strong performances from Latin America and the Middle East whilst the USA also delivered double-digit sales growth, but on the other hand China and certain other territories in South East Asia experienced weak trading affected by African Swine Fever.  However, the fact that the group managed to increase profits demonstrates that the group’s geographic and species diversity is a major strength.  We believe that the second half will see a slight increase is sales and pre-tax profits for the year should come out at around £4.75m for earnings per share of 18.8p.  With the benefit of a strong balance sheet we believe that the shares are a BUY.

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