Anpario 'well-positioned' for coronavirus after decent year

Animal feed additives company Anpario reported a 3% increase in revenue in its final results on Wednesday, to £29m.

The AIM-traded firm said its gross profit rose 7% in the 12 months ended 31 December, to £14.5m, while it saw a 6% improvement in adjusted EBITDA, to £5.7m.

Its diluted earnings per share were down 5% to 17.61p.

The board proposed a final dividend of 5.5p per share, up from 5p a year earlier, taking the total dividend for the year 11% higher to 8p.

Cash balances at year-end stood at £13.8m, compared to £12.9m at the end of 2018.

On the operational front, Anpario reported a “strong” performance in Latin America and the Middle East.

It also saw an improved second half performance in Asia, despite the impact of African swine fever.

The board noted the establishment of its German subsidiary during the year, as well as the completion of its £1m investment in an automated bottling plant, and the launch of the Anpario Direct online channel for smaller farm customers.

“The board is encouraged by the performance in the second half of 2019 driven by strong trading in Latin America and the Middle East, and a welcome recovery in sales in our Asia region,” said chairman Peter Lawrence.

“It is also pleasing that the recent targeting of China’s poultry industry has helped to reduce the impact of African swine fever on our business there.

“Costs continue to be managed closely and our strategy to market higher value-added products and develop more direct routes to market has helped to improve gross margins.”

Lawrence said the outbreak and subsequent spread of the Covid-19 coronavirus was causing concerns to all industries.

“Anpario’s regional sales network is enabling the group to continue to support local customers and at this stage, we are confident we can manage any disruption which may be temporary in nature.

“Currently, there are travel restrictions to certain countries and a number of industry trade events have been cancelled.

“There may be some disruptions to shipping around the world but as most of our raw material supplies come from Europe, we expect to be able to fulfil orders effectively.”

Lawrence said that, with governmental financial support offered to the agriculture industry to ensure continuity of food supplies, the firm was “well-positioned” to take full advantage of the situation during the recovery period from Covid-19 and beyond, and continue its work in establishing natural additives for biosecure, efficient and profitable protein production.

“While we have not yet experienced any material impact on our business, we continue to monitor the situation closely.”

At 1129 GMT, shares in Anpario were up 3.73% at 233.4p.