Share Name Share Symbol Market Type Share ISIN Share Description
Anpario LSE:ANP London Ordinary Share GB00B3NWT178 ORD 23P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +5.00p +1.21% 417.50p 410.00p 425.00p 417.50p 412.50p 412.50p 159,536 13:02:53
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Food Producers 24.3 2.7 12.8 32.6 96.00

Anpario plc Half-year Report

19/09/2017 7:00am

UK Regulatory (RNS & others)


Anpario (LSE:ANP)
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2 Months : From Aug 2017 to Oct 2017

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TIDMANP 
 
 

19 September 2017

 

Anpario plc (AIM: ANP)

 

("Anpario" or "the Company")

 

Anpario plc, the international producer and distributor of natural animal feed additives for animal health, nutrition and biosecurity is pleased to announce its interim results for the six months to 30 June 2017.

 

Financial and operational highlights

 

Financial highlights

 
 
    -- 39% increase in revenue to GBP14.8m (2016: GBP10.7m) 
 
    -- 42% rise in gross profits to GBP7.3m (2016: GBP5.1m) 
 
    -- 31% improvement in adjusted EBITDA1 to GBP2.6m (2016: GBP2.0) 
 
    -- 22% enhancement in adjusted earnings per share to 9.1p (2016: 7.5p) 
 
    -- Introduction of interim dividend of 2.0p per share (2016: nil) 
 
    -- Cash balances of GBP12.6m at 30 June 2017 (31 December 2016: GBP11.1m) 
 

Operational highlights

 
 
    -- Sales growth achieved reflects strong performances in Asia, the 

Americas and Middle East

 
    -- Implementation of our strategy starting to deliver planned benefits 
 
    -- Anpario global branding raising the international profile of the 

company

 
    -- New subsidiaries set-up in Thailand and Indonesia 
 
    -- Acquisition of Australian distributor completed in February 2017 and 

integration progressing well

 

Peter Lawrence, Chairman, commented:

 

"We are delighted by the first half performance driven by the implementation of our strategy to build strong commercial relationships with end users. The second half of the year has started well. Our strong balance sheet and positive cash generation give Anpario a sound platform from which to make selective earnings enhancing acquisitions and to further invest in recruitment and infrastructure to accelerate the profitable growth of the business".

 

Chairman's statement

 

In my first statement as Chairman, I would like to thank my predecessor, Richard Rose, for his 12 years of service to Anpario and his leadership and guidance of the Board, during which time significant shareholder value has been created.

 

Anpario has delivered an excellent performance for the six months to 30 June 2017. The Board is pleased to declare a maiden interim dividend of 2.0p per ordinary share payable on 1 December 2017 to shareholders on the register at close of business on 17 November 2017. The introduction of an interim dividend reflects the Board's confidence in the growth prospects of the Company.

 

These results reflect the enhanced focus on the implementation of our strategy. The recruitment of regional commercial teams and the decision to rebrand under the Anpario name have raised the company's international profile. These factors, along with improved product technology and service capabilities, have been of great benefit to end user customers.

 

The transformation of our sales and distribution channels is still in its early stages, but getting closer to our production customers and working with key partner distributors has clearly helped to drive sales growth during the period. Distribution has been further extended during the period through the acquisition of Cobbett, our Australian distributor, and the formation of subsidiaries in Thailand and Indonesia.

 

Financial review

 

Revenue in the first half of the year increased by 39% to GBP14.8m (2016: GBP10.7m). Gross profit advanced by over 42% to GBP7.3m (2016: GBP5.1m). Increased volumes and a higher proportion of end customer sales have enabled us to maintain our overall gross margins and helped offset some raw material price inflation.

 

Administrative expenses in the period rose 51% to GBP5.1m (2016: GBP3.4m). Foreign exchange losses, included in administrative expenses, were GBP0.4m in the period compared to gains of GBP0.3m in 2016. As such, the underlying increase in administrative expenses was GBP1.0m, the majority of which relates to investment in new appointments and the associated costs. This increase is a result of internal restructuring and the set-up of new operations. This process is still underway and is expected to continue through 2017, as evidenced by some further exceptional items of GBP0.3m (2016: GBP0.2m). This investment is already contributing to the increase in revenue but it will take time for the full impact to be felt.

 

Adjusted EBITDA1 was ahead by 31% to GBP2.6m (2016: GBP2.0m). The growth in profit after tax of 21% to GBP1.6m (2016: GBP1.3m) was achieved after increases to the depreciation and amortisation charges resulting from recent capital expenditure and higher share-based payments and income tax charges.

 

Basic earnings per share increased by 19% to 7.80p (2016: 6.55p) and adjusted earnings per share grew by 22% to 9.13p (2016: 7.49p).

 

The balance sheet is strong and debt free with further positive cash generation of GBP1.5m. The cash balance at the period end was GBP12.6m (31 December 2016: GBP11.1m) after expending GBP0.5m on the purchase of Cobbett, our Australian distributor, in February 2017.

 

Operations

 

Our key target regions delivered exceptionally strong performances during the period with increases of 58%, 56% and 46% from Asia, the Americas and the Middle East, respectively over the equivalent period last year. This overall strong organic sales growth totalling GBP3.13m results directly from the strategic initiatives implemented in 2016. In addition, favourable currency movements contributed just under GBP1m to like for like sales. In Asia, there were strong performances from Bangladesh, Malaysia, Philippines, South Korea, and Thailand. China delivered sales growth of 42% helped by the successful relaunch of Orego-Stim, which is now branded as Meriden-Stim.

 

In Australia, Cobbett contributed to the region's sales performance. A new regional manager for Australasia has been recruited, responsible for our business in Australia, New Zealand and the South Pacific territories. In Asia, territory managers were recruited for Thailand, Indonesia, and the Philippines. Employing local commercial teams, who are closer to our end user customers, gives us better insight into opportunities, including local pricing and also keeps the Anpario brand at the forefront of customers' minds.

 

The standout performer in the Americas region was the United States, which accounted for 7% of total group revenue and where sales have accelerated in the dairy sector, organic egg layers and supplying poultry integrators for both conventional and antibiotic free production. It is anticipated that sales will expand across the United States, reflecting increasing recognition of our natural feed additives.

 

Brazil and Mexico, our two key markets in Latin America, also saw good sales growth. New distributors were appointed in Chile and Peru to strengthen our presence in these areas.

 

Despite the ongoing geopolitical events in the region, the Middle East returned to growth with strong performances from Israel, Lebanon and Turkey. The outturn in Turkey contrasts with the first half of 2016 when reduced stockholdings began at the start of last year. A new technical sales manager has also been recruited to support development in this area.

 

Our operations in the UK and Ireland, which account for 11% of total sales, did well growing sales by 15%. The recovery in milk prices helped to strengthen demand for Ultrabond and Optomega, which improve fertility in dairy cows. Our UK team is working, in partnership with industry specialists, offering turnkey solutions for the egg laying industry by demonstrating the benefits of Anpario products to farmers, who are keen to maximise the profitability of their egg laying stock.

 

Our main product groups of eubiotics (gut health) and mycotoxin binders delivered encouraging performances with our leading product brands: Orego-Stim, Salkil, Salgard, Ultrabond and Prefect all contributing to the growth.

 

Innovation and development

 

Over the past 12 months we have recruited a new central technical team to manage new product development and technical support for our customers. One of the team's principal tasks is to demonstrate that our products can help farmers' profitability by improving performance when regulatory changes dictate that certain treatments, such as antibiotic growth promoters, or other industry practices, can no longer be used in meat production. One recent opportunity is the phased banning of zinc oxide in pig diets across the European Union and in some other countries. A number of customers have successfully replaced zinc oxide in diets with our organic acid based eubiotic products, which promote development of the gut microbiota. In order to scientifically support our field experiences, we carried out successful trials at leading institutions in Canada and Thailand.

 

Our technical team has also been strengthened through the recruitment of species specialists in ruminant, swine and aquaculture. This group will support our commercial teams and work with marketing to help communicate our solution driven approach to customers' problems. The teams, working collaboratively, have also developed a number of feed additive programmes to show customers how to use our products in a combined approach through the life stages of their animals. The preventative nature of our feed additives helps present a robust response from animals during periods of growth and disease. Anpario's natural additives also reduce the use of antibiotic growth promoters, which is an important element in the move towards antibiotic free protein production. Our products have also performed strongly in trials carried out in China when removing colistin sulphate, a widely used antibiotic, from weaning piglet diets.

 

Outlook

 

The second half of the year has started well. Our focus remains on implementing the strategy that is successfully transforming our sales and distribution channels by building stronger and closer relationships with customers. Our strong balance sheet and positive cash generation give Anpario a sound platform from which to make selective earnings enhancing acquisitions and to further invest in recruitment and infrastructure to accelerate the profitable growth of the business.

 

Peter Lawrence

 

Chairman

 

19 September 2017

 
1. Adjusted EBITDA represents operating profit 
GBP1.860m (2016:  GBP1.480m) adjusted 
for: share based payments GBP0.161m (2016:  GBP0.047m); depreciation, 
amortisation and impairment charges of  GBP0.347m (2016: GBP0.254m) 
and closure and restructuring costs  GBP0.269m (2016: GBP0.235m). 
 
 
Unaudited 
consolidated 
income statement 
for the six 
months 
ended 30 June 
2017 
                             six months to   six months to   year ended 
                             30/06/2017      30/06/2016      31/12/2016 
                     Notes   GBP000            GBP000            GBP000 
Revenue              3       14,803          10,687          24,340 
Cost of sales                (7,528)         (5,561)         (12,895) 
Gross profit                 7,275           5,126           11,445 
Administrative               (5,146)         (3,411)         (7,603) 
expenses 
Exceptional items            (269)           (235)           (1,221) 
Operating profit             1,860           1,480           2,621 
Finance income               17              34              59 
Profit before                1,877           1,514           2,680 
income tax 
Income tax                   (292)           (203)           (100) 
expense 
Profit for                   1,585           1,311           2,580 
the period 
Profit 
attributable 
to: 
Owners of the                1,584           1,311           2,580 
parent 
Non-controlling              1               -               - 
interests 
Profit for                   1,585           1,311           2,580 
the period 
Basic earnings       4       7.80p           6.55p           12.79p 
per share 
Diluted earnings     4       7.62p           6.42p           12.58p 
per share 
Adjusted earnings    4       9.13p           7.49p           16.90p 
per share 
Diluted adjusted     4       8.92p           7.35p           16.62p 
earnings 
per share 
 
 
Unaudited consolidated 
statement 
of comprehensive income 
for the six months 
ended 30 June 2017 
                              six months to   six months to   year ended 
                              30/06/2017      30/06/2016      31/12/2016 
                              GBP000            GBP000            GBP000 
Profit for the period         1,585           1,311           2,580 
Items that may be 
subsequently 
reclassified 
to profit or loss: 
Exchange difference           54              (19)            (87) 
on translating 
foreign operations 
Total comprehensive income    1,639           1,292           2,493 
for the period 
Attributable to the owners    1,638           1,292           2,493 
of the parent: 
Non-controlling interests     1               -               - 
Total comprehensive income    1,639           1,292           2,493 
for the period 
 
 
Unaudited consolidated 
statement 
of financial position 
as at 30 June 2017 
                                       as at        as at        as at 
                                       30/06/2017   30/06/2016   31/12/2016 
                               Notes   GBP000         GBP000         GBP000 
Intangible assets              5       10,851       10,390       10,132 
Property, plant                6       3,442        3,289        3,539 
and equipment 
Deferred tax assets                    338          307          286 
Non-current assets                     14,631       13,986       13,957 
Inventories                            2,315        2,014        2,246 
Trade and other receivables            6,921        6,379        6,733 
Cash and cash equivalents              12,611       10,870       11,112 
Current assets                         21,847       19,263       20,091 
Total assets                           36,478       33,249       34,048 
Called up share capital                5,292        5,095        5,291 
Share premium                          9,518        7,796        9,515 
Other reserves                         (4,801)      (3,331)      (5,112) 
Retained earnings                      20,428       18,598       18,843 
Equity attributable                    30,437       28,158       20,129 
to owners 
of the parent company 
Non-controlling interest               (1)          -            - 
Total equity                           30,436       28,158       28,537 
Deferred tax liabilities               974          1,176        1,014 
Non-current liabilities                974          1,176        1,014 
Trade and other payables               4,602        3,759        4,351 
Current income tax                     466          156          146 
liabilities 
Current liabilities                    5,068        3,915        4,497 
Total liabilities                      6,042        5,091        5,511 
Total equity and                       36,478       33,249       34,048 
liabilities 
 
 
Unaudited consolidated 
statement 
of changes in equity 
for the six months 
ended 30 June 2017 
                          Called up sharecapital   Sharepremium   Otherreserves   Retainedearnings   Non-controllinginterest   Totalequity 
 
                          GBP000                     GBP000           GBP000            GBP000               GBP000                      GBP000 
Balance at 1              5,058                    7,613          (3,374)         17,287             -                         26,584 
January 2016 
Profit for the period     -                        -              -               1,311              -                         1,311 
Currency translation      -                        -              (19)            -                  -                         (19) 
differences 
Total comprehensive       -                        -              (19)            1,311              -                         1,292 
income 
for the period 
Issue of share capital    37                       183            -               -                  -                         220 
Share-based payment       -                        -              62              -                  -                         62 
adjustments 
Transactions              37                       183            62              -                  -                         282 
with owners 
Balance at 30             5,095                    7,796          (3,331)         18,598             -                         28,158 
June 2016 
Profit for the period     -                        -              -               1,269              -                         1,269 
Currency translation      -                        -              (68)            -                  -                         (68) 
differences 
Total comprehensive       -                        -              (68)            1,269              -                         1,201 
income 
for the period 
Issue of share capital    196                      1,719          -               -                  -                         1,915 
Deferred tax regarding    -                        -              (128)           -                  -                         (128) 
share-based payments 
Cash flow hedge           -                        -              37              -                  -                         37 
reserve 
Joint share ownership     -                        -              (1,760)         -                  -                         (1,760) 
plan 
Share-based payment       -                        -              138             -                  -                         138 
adjustments 
Dividends relating        -                        -              -               (1,024)            -                         (1,024) 
to 2015 
Transactions              196                      1,719          (1,713)         (1,024)            -                         (822) 
with owners 
Balance at 31 December    5,291                    9,515          (5,112)         18,843             -                         28,537 
2016 
Profit for the period     -                        -              -               1,585              (1)                       1,584 
Currency translation      -                        -              54              -                  -                         54 
differences 
Total comprehensive       -                        -              54              1,585              (1)                       1,638 
income 
for the period 
Issue of share capital    1                        3              -               -                  -                         4 
Cash flow hedge           -                        -              123             -                  -                         123 
reserve 
Share-based payment       -                        -              134             -                  -                         134 
adjustments 
Transactions              1                        3              257             -                  -                         261 
with owners 
Balance at 30             5,292                    9,518          (4,801)         20,428             (1)                       30,436 
June 2017 
 
 
Unaudited consolidated 
statement 
of cash flows 
for the six months 
ended 30 June 2017 
                               six months to   six months to   year ended 
                               30/06/2017      30/06/2016      31/12/2016 
                               GBP000            GBP000            GBP000 
Cash generated                 2,448           1,943           3,957 
from operating 
activities 
Income tax paid                (73)            (13)            (159) 
Net cash generated from        2,375           1,930           3,798 
operating activities 
Investment in subsidiary       (514)           -               - 
Purchases of property,         (69)            (367)           (729) 
plant and equipment 
Proceeds from disposal         1               -               4 
of property, 
plant and equipment 
Payments to acquire            (298)           (354)           (831) 
intangible assets 
Interest received              17              34              59 
Net cash used in investing     (863)           (687)           (1,497) 
activities 
Joint share ownership plan     -               -               (1,760) 
Proceeds from issuance         4               220             2,135 
of shares 
Dividend paid to Company's     -               -               (1,024) 
shareholders 
Net cash used in financing     4               220             (649) 
activities 
Net increase in cash           1,516           1,463           1,652 
and cash equivalents 
Effect of exchange             (17)            70              123 
rate changes 
Cash and cash equivalents      11,112          9,337           9,337 
at 
the beginning of the period 
Cash and cash equivalents      12,611          10,870          11,112 
at the end of the period 
 
                               six months to   six months to   year ended 
                               30/06/2017      30/06/2016      31/12/2016 
                               GBP000            GBP000            GBP000 
Cash generated 
from operating 
activities 
Profit before income tax       1,877           1,514           2,680 
Net finance income             (17)            (34)            (59) 
Depreciation, amortisation     348             254             1,130 
and impairment 
(Profit)/Loss on disposal      7               -               (4) 
of property, 
plant and equipment 
Share-based payments           134             62              200 
Changes in working capital: 
Inventories                    (38)            28              (218) 
Trade and other receivables    (212)           430             55 
Trade and other payables       349             (311)           173 
Net cash generated from        2,448           1,943           3,957 
operating activities 
 
 

Notes to the financial statements

 

for the six months ended 30 June 2017

 

1.General information

 

Anpario plc ("the Company") and its subsidiaries (together "the Group") manufacture and supply high performance natural feed additives for the agricultural market with products to improve the health and output of animals.

 

The company is traded on the London Stock Exchange AIM market and is incorporated and domiciled in the UK. The address of the registered office is Manton Wood Enterprise Park, Worksop, Nottinghamshire, S80 2RS.

 

2.Basis of preparation

 

The consolidated financial statements comprise the accounts of the Company and its subsidiaries drawn up to 30 June 2017.

 

The Group has presented its financial statements in accordance with International Reporting Standards ("IFRS's"), as endorsed by the European Union, IFRS IC interpretations and the Companies Act 2006 applicable to companies reporting under IFRS. Full details on the basis of the accounting policies used are set out in the Group's financial statements for the year ended 31 December 2016, which are available on the Company's website at www.anpario.com.

 

This condensed consolidated interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2016 were approved by the Board of Directors on 8 March 2017 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 (2) or (3) of the Companies Act 2006.

 

The consolidated interim financial information for the period ended 30 June 2017 is neither audited nor reviewed.

 

3.Segment information

 

Management has determined the operating segments based on the reports reviewed by the Board that are used to make strategic decisions. The Board considers the business from a geographic perspective. Management considers adjusted EBITDA to assess the performance of the operating segments, which comprises profit before interest, tax, depreciation and amortisation adjusted for share-based payments and exceptional items.

 
                    Americas   Asia     Europe    MEA     Head Office   Total 
                    GBP000       GBP000     GBP000      GBP000    GBP000          GBP000 
for the six 
months 
ended 30 
June 
2017 
Total               2,859      6,588    5,124     2,136   -             16,707 
segmental 
revenue 
Inter-segment       -          -        (1,904)   -       -             (1,904) 
revenue 
Revenue             2,859      6,588    3,220     2,136   -             14,803 
from 
external 
customers 
Adjusted            994        2,057    1,217     833     (2,464)       2,637 
EBITDA 
Depreciation        (7)        (4)      -         -       (336)         (347) 
and 
amortisation 
Net finance         1          -        -         1       15            17 
income 
Share-based         -          -        -         -       (161)         (161) 
payments 
Exceptional         -          (165)    -         (19)    (85)          (269) 
items 
Income tax          31         8        -         (1)     (330)         (292) 
Profit for          1,019      1,896    1,217     814     (3,361)       1,585 
the period 
Total                                                     36,478        36,478 
assets 
Total                                                     (6,042)       (6,042) 
liabilities 
                    Americas   Asia     Europe    MEA     Head Office   Total 
                    GBP000       GBP000     GBP000      GBP000    GBP000          GBP000 
for the six 
months 
ended 30 
June 
2016 
Total               1,832      4,177    3,975     1,465   -             11,449 
segmental 
revenue 
Inter-segment       -          -        (762)     -       -             (762) 
revenue 
Revenue             1,832      4,177    3,213     1,465   -             10,687 
from 
external 
customers 
Adjusted            655        1,397    1,243     681     (1,960)       2,016 
EBITDA 
Depreciation        (4)        (1)      (2)       -       (247)         (254) 
and 
amortisation 
Net finance         -          -        -         -       34            34 
income 
Share-based         -          -        -         -       (47)          (47) 
payments 
Exceptional         (21)       (6)      -         (25)    (183)         (235) 
items 
Income tax          -          1        -         -       (204)         (203) 
Profit for          630        1,391    1,241     656     (2,607)       1,311 
the period 
Total                                                     33,249        33,249 
assets 
Total                                                     (5,091)       (5,091) 
liabilities 
                    Americas   Asia     Europe    MEA     Head Office   Total 
                    GBP000       GBP000     GBP000      GBP000    GBP000          GBP000 
for the 
year 
ended 
31 Dec 2016 
Total               4,491      10,351   8,450     2,953   -             26,245 
segmental 
revenue 
Inter-segment       -          -        (1,905)   -       -             (1,905) 
revenue 
Revenue             4,491      10,351   6,545     2,953   -             24,340 
from 
external 
customers 
Adjusted            1,373      3,507    2,510     1,247   (4,026)       4,611 
EBITDA 
Depreciation        (10)       (6)      (3)       -       (540)         (559) 
and 
amortisation 
Net                 -          1        -         -       58            59 
finance 
(income)/expense 
Share-based         -          -        -         -       (210)         (210) 
payments 
Exceptional         (93)       (107)    -         (32)    (989)         (1,221) 
items 
Income tax          156        29       -         (3)     (282)         (100) 
Profit for          1,426      3,424    2,507     1,212   (5,989)       2,580 
the year 
Total                                                     34,048        34,048 
assets 
Total                                                     (5,511)       (5,511) 
liabilities 
 
 

4.Earnings per share

 
                             six months to   six months to   year ended 
                             30/06/2017      30/06/2016      31/12/2016 
Weighted average             20,313          20,024          20,166 
number of 
shares in Issue (000's) 
Adjusted for effects of      473             381             340 
dilutive potential 
Ordinary shares (000's) 
Weighted average number      20,786          20,405          20,506 
for diluted 
earnings per share 
(000's) 
Profit attributable          1,584           1,311           2,580 
to owners 
of the Parent (GBP000's) 
Basic earnings per share     7.80p           6.55p           12.79p 
Diluted earnings             7.62p           6.42p           12.58p 
per share 
                             six months to   six months to   year ended 
                             30/06/2017      30/06/2016      31/12/2016 
                             GBP000            GBP000            GBP000 
Adjusted profit 
attributable 
to owners of the Parent 
Profit attributable to       1,584           1,311           2,580 
owners of the Parent 
Exceptional items            269             188             1,113 
(net of tax) 
Prior year tax               -               -               (285) 
adjustments 
Adjusted profit              1,853           1,499           3,408 
attributable 
to owners of the Parent 
Adjusted earnings            9.13p           7.49p           16.90p 
per share 
Diluted adjusted earnings    8.92p           7.35p           16.62p 
per share 
 
 

5.Intangible assets

 
                                             Customerrelationships   Patents,trademarksandregistrations   Developmentcosts   SoftwareandLicences 
                         Goodwill   Brands                                                                                                         Total 
                         GBP000       GBP000     GBP000                    GBP000                                 GBP000               GBP000                  GBP000 
Cost 
As at 1 January 2017     5,490      2,768    686                     1,050                                2,198              521                   12,713 
Additions                470        43       100                     147                                  96                 55                    911 
Disposals                -          -        -                       (10)                                 -                  -                     (10) 
Foreign exchange         -          -        -                       (1)                                  -                  -                     (1) 
As at 30 June 2017       5,960      2,811    786                     1,186                                2,294              576                   13,613 
Accumulated amortisation/impairment 
As at 1 January 2017     -          227      365                     232                                  1,661              96                    2,581 
Charge for the period    -          42       34                      67                                   5                  36                    184 
Disposals                -          -        -                       (3)                                  -                  -                     (3) 
As at 30 June 2017       -          269      399                     296                                  1,666              132                   2,762 
Net book value 
As at 30 June 2017       5,960      2,542    387                     890                                  628                444                   10,851 
As at 1 January 2017     5,490      2,541    321                     818                                  537                425                   10,132 
 
 

6.Tangible assets

 
                 Land           Plant          Fixtures,fittings   Assets           Total 
                 andbuildings   andmachinery   andequipment        in thecourse 
                                                                   ofconstruction 
                 GBP000           GBP000           GBP000                GBP000             GBP000 
Cost 
As               2,180          1,904          545                 101              4,730 
at 1 January 
2017 
Additions        1              12             12                  44               69 
Disposals        -              (2)            -                   -                (2) 
Transfer of      -              131            -                   (131)            - 
assets 
in 
construction 
Foreign          -              (2)            (1)                 -                (3) 
exchange 
As at 30 June    2,181          2,043          556                 14               4,794 
2017 
Accumulated 
depreciation 
As               276            583            332                 -                1,191 
at 1 January 
2017 
Charge for       16             108            39                  -                163 
the period 
Disposals        -              (1)            -                   -                (1) 
Foreign          -              (1)            -                   -                (1) 
exchange 
As at 30 June    292            689            371                 -                1,352 
2017 
Net book 
value 
As at 30 June    1,889          1,354          185                 14               3,442 
2017 
As               1,904          1,321          213                 101              3,539 
at 1 January 
2017 
 
 

7.Business combinations

 

On 3 February 2017, the Group acquired the business and inventory of Cobbett Pty Ltd ("Cobbett"). Cobbett has been Anpario's distributor since 1987 and the acquisition is in line with our strategy to strengthen sales and distribution channels and develop closer relationships with end users of our products.

 

On completion, the fair value of the net assets and liabilities of Cobbett equalled GBP228,000 and consequently gives rise to goodwill on the transaction of GBP470,000. The acquired business contributed revenues of GBP390,000 and a net profit before tax of GBP41,000 to the Group for the period from 3 February 2017 to 30 June 2017.

 

A contingent consideration arrangement exists that requires the Group to pay in cash, to the former owners of Cobbett, up to AUD $300,000 (GBP184,000) after one year, based on certain performance criteria being met.

 
Details of net assets acquired and goodwill are as follows: 
                                             GBP000 
Purchase consideration                       429 
Inventory                                    85 
Contingent consideration                     184 
Total consideration                          698 
The assets and liabilities at 3 February 2017 arising from the  acquisition are as follows: 
                                             Acquiree's 
                                Fair value   Carrying Value 
                                GBP000         GBP000 
Brands                          43           - 
Customer relationships          100          - 
Inventory                       85           85 
Fair value of assets            228          85 
Goodwill                        470 
Total purchase consideration    698 
Cash outflow on acquisition                  514 
 
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations.

 
Enquiries 
Anpario plc 
Richard Edwards Chief Executive Officer    +44(0) 777 6417 129 
Karen Prior Finance Director               +44(0) 1909 537380 
Peel Hunt LLP 
Adrian Trimmings, George Sellar            +44 (0)207 418 8900 
 
 
 
 

View source version on businesswire.com: http://www.businesswire.com/news/home/20170918006547/en/

 
This information is provided by Business Wire 
 
 

(END) Dow Jones Newswires

September 19, 2017 02:00 ET (06:00 GMT)

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