Anpario Share Discussion Threads

[nivison] 19/9/2017 09:52

These look like an excellent set of interim figures. It looks to me like this company is on course to generate approximately £4 million in cash in the 12 months to Dec 2017. The introduction of an interim dividend shows how confident the board is in its financial prospects. Very pleasing growth story. The US market seems to be taking off too , accounting for 7% of revenue. Lots of growth to come there.
However, the most important message to take from these figures is that the company's strategy is working. Great stuff, well done Anpario management and workforce.

[jockthescot] 19/9/2017 08:08

Wow. First class interims.

[grahamhacker] 19/9/2017 07:48

Great set of Interims + now a dividend!

[truffle] 24/8/2017 16:09

The company gets a seemingly decent enough rating on Stockopedia

[srichardson8] 19/7/2017 22:10

exactly but if I am right really a very modest carrot

[tailgunner2] 19/7/2017 18:31

Thanks...... basically to try and keep them aboard then??

[srichardson8] 19/7/2017 10:09

A grant of a right to the profit - if the two remain at the company for three years - of the difference between the set price of 342 and the price at which they can sell (when the shares are 'vested') in 2020. The shares are held in trust and have been bought with money loaned by the company i.e. 100k shares at 342 = 342k). So if they are sold at 442 they would each make £50k. A small carrot. Or so I understand.

[tailgunner2] 18/7/2017 17:04

Can anyone explain what that RNS is all about in laymans terms?????

[battlebus2] 02/7/2017 13:14

Thanks everyone for the AGM reviews. 👍

[nocton] 02/7/2017 12:19

I was at the AGM and agree with comments. But did come away with the feeling that the company has a bright future.

[truffle] 02/7/2017 11:35

Thanks, an excellent summary, and pretty much as I recall the meeting. I would only add the following comments
The Chairman
Came across as both thoroughly uninspired and uninspiring. Didn't for a minute make attendees feel as if he had put aside the morning if necessary for good interaction and discussion with shareholders, on the one occasion during the year when it is needed.
His pre. AGM summary was useless, and he said very little about the current financial year when he was fully entitled to give more detail. The sooner he goes the better in my view.
I see that after the meeting an RNS stated that he had sold his shares in the company!!??
The Board
Lawrence came across as having some dynamism, but the CEO and FD seemed in danger of catching the complacent/laid back attitude of the Chairman. The company needs 2/3 capable, challenging and positive new non-execs. Let's hope we get them.
Cash
At Dec. 16 the cash balance was about £11 million, and no doubt higher now but the Chairman wouldn't confirm this for some reason. But it is arguable that they really should be putting it to better use than just sitting in the bank.
The Future.
Overall, the company seems to be doing okay. It is debt free, with a cash balance that represents approx. 15% of its market cap. which is a good position to be in in some ways, but there must presumably be much more potential if only somebody could put a rocket under the BOD.

[mw8156] 29/6/2017 13:08

quite a few exceptionals in this year's accounts and more expected next year might temper enthusiasm though they say they are seeing strong sales growth some of which might be currency related and some due to the direct distribution model now being adopted,

[battlebus2] 29/6/2017 07:11

AGM statement....strong sales growth... R Rose to step down.

[battlebus2] 09/5/2017 18:35

And back to new recent highs 👌

[truffle] 09/5/2017 18:07

Encouraging to see the Finance Director switching shares to an ISA account!

[bottomfisher] 21/4/2017 10:49

Cerrito, thanks for extra ANP comments. Unfortunately I can't make ANP's AGM on June 29th which is being held at its brokers office in Central London. Listened again to Lord Lee's Shareradio podcast(many thanks to Jockthescot) where he outlined all the reasons why ANP should be a good long-term investment. However, I would like to get a feel for the new CEO, and also the long-term commitment of the chairman and Peter Lawrence both of whom have been on the board for over a decade. Would appreciate any reports after the AGM.

[cerrito] 20/4/2017 20:39

Thanks for that Bottomfisher
Also note that on the website news of several overseas hires they have made-all appear to have impressive backgrounds- but as they do not date their news articles not sure when made.
An increase in fixed costs and also requires a good investment of management time.
Be interesting to discuss at AGM

[bottomfisher] 20/4/2017 14:37

Regarding earlier comments on the relative attractions of Anpario (ANP) versus ECO Animal Health Group (EAH) there is no question that EAH, which is roughly twice ANP’s size in terms of revenues, is the much faster growing business.

According to Stockopedia, EAH’s revenues have been growing at a compound annual rate of 11.7% over the last five years - more than twice as fast as ANP. The same goes for EAH’s eps which have been growing at a compound annual rate of 26.3%. At current prices ANP is trading at around 20 times forecast earnings, according to Stockopedia, compared with EAH’s multiple of 32.6 times forecast earnings. On paper, at least, both shares seem over-valued at current prices.

ANP’s shares may be being propped up by a hope that its pedestrian revenue growth will soon start to accelerate under a new CEO and a strategy of getting much closer to its customers in the field. But what if these plans do not fire up ANP’s revenue and profit growth?

Interestingly, Peter Lawrence, the founder of EAH, its executive chairman and biggest shareholder, has been an ANP non-exec for more than a decade. Along with Richard Rose, ANP’s chairman, he is the only non-exec on ANP’s board. He is better placed than anyone to know what ANP is really worth.

ANP and EAH are relatively small global players serving similar markets. ANP provides natural food additives to the live stock industry and EAH provides pharmaceutical products for global animal health markets. Perhaps EAH could emerge as a suitor for ANP if its revenue and profit growth fails to take off.

[tailgunner2] 18/4/2017 16:48

Bit severe that chopping of s.p.....??

[battlebus2] 17/4/2017 10:10

Why are we talking down ANP, the price has been going up so all shareholders should be happy. If you think it's overvalued bank a few profits. I can't understand when there's such dross around the markets.

[aimingupward2] 17/4/2017 09:57

Cerrito, you just may be right about ANP being too small, at 70m, to attract a really major company, but EAH is a 320m company and growing quickly, so I can't think it would apply there.

[cerrito] 16/4/2017 23:26

Thanks aimingupward2
I am not in EAH at the moment and never have been and I was wondering if they used distributors and I note your comments that they do.
My understanding of why ANP is moving from distributors to their own people is not the margin/cost avoidance per se but rather to increase sales and getting a better understanding of what drives demand for their product by having close contact with the end user.
Be interesting to chat with the CEO at the AGM on this.
I take your point about a large company taking over EAH to use its own distribution network; the same comment applies for ANP, especially for getting buy in with the big US producers. When ANP's price was in the 240p area I was half expecting a takeover..perhaps big companies find ANP too small...and indeed EAH.

[aimingupward2] 16/4/2017 22:28

EAH has been and is increasing t/o, profit and eps rapidly and can be expected to continue to do so following recentl regulatory approvals and others in the pipeline and expected fairly soon. Increasing dividend payments too. It has very high barriers to entry for any would-be competitors. Currently it largely uses distributors to achieve sales, which is costly. EBITDA would be much higher in the hands of a big company with it's own distribution network already in place, so takeover is possible - or the company will develop it's own sales forces around the world and increase margins.

P.E. more like 25 or less for the year just started.

Anyway, enough said. If it doesn't appeal, based on past cash flow, it doesn't.

[ottrott] 16/4/2017 21:51

Although ANP earnings have trodden water, op cashflow per share, perhaps a better measure have continued to increase.

.......adj EPS....OP C/F PS
2012...15.1p......11.5p
2013...13.1p......14.9p
2014...14.8p......16.1p
2015...16.0p......16.7p
2016...18.3p......18.5p

Free cashflow per share has been flat due to increasing capex. (Source stockopedia)

There are unfortunately no predictions for 17/18.

EAH is on a PER of 37 this year and has had negative free cashflow for the last 2 years, so don't see why that is better value.

All the best, ottrott