Anpario Share Discussion Threads

[mw8156] 25/6/2020 07:57

see they've given £10000 to each of Worksop and Nottingham Hospitals Nhs Trusts - good for them hope the Nhs is suitably grateful and that they got some publicity/acknowledgement of their contribution in return- i work in the NHS and suspect not -the NHS is very good at taking but not in acknowledging the vital role of the private sector at least where I work!

[valhamos] 29/4/2020 09:59

Good update - ANP meets "increase in demand" is always good to see in an update in these troubled times. In the final results announcement in March there was reference to a patent being filed "Groundbreaking development of a new dietary supplement for calves focused on antibiotic reduction and gut health benefits has resulted in a patent filing." Today's patent announcement seems to cover the same ground so not sure if it is another patent or merely highlighting its commercial importance to ANP.

[vprt] 29/4/2020 08:14

Yes, several pieces of good news including Q1 performance being described as "strong".

[cerrito] 29/4/2020 07:53

Encouraging and positive update this morning. Good to see increase in cash though I note normal working capital fluctuations.

[cerrito] 26/4/2020 14:20

Reading about the disruptions in the US pork industry with the closure of the processing plants of Smithfield and Tyson because of the virus reminds me of the constant trip wires that companies like ANP face.

[cerrito] 05/4/2020 14:58

The CEO on good form
hxxps://www.feedstrategy.com/coronavirus/anpario-ceo-on-keeping-business-running-during-pandemic/

[nivison] 18/3/2020 10:21

Personally, with a company that is still so small I would prefer any surplus cash be invested in the business. Cant see the point of buybacks unless the stock is materially undervalued (now perhaps, or in a month or so) and I have no interest in special dividends but that may be because I am a long term investor. Each to their own.

Certainly at the moment cash is king so if you've got it - keep it!

[nocton] 18/3/2020 10:02

I never vote for buy backs. Companies rarely know as much as Mr Market. And the shares rarely rise as much in value as the cash used. Just leave it to the investors and if you have surplus cash pay a special dividend.

[truffle] 18/3/2020 09:32

The share buy back was very ill timed. They could/should have halted it when they saw they were buying in a collapsing market.
That said, now might be a much better time to invest another million from the cash reserves to buy back more shares, at about a third of the price lower!

[valhamos] 18/3/2020 09:05

Yes in hindsight the buyback was a tad premature but a good move in principle. Pleased that they are developing Anpario Direct in other geographic markets this year. Added a few more with these results - the company's business should be resilient (compared to others in travel, hospitality or businesses with long supply chains) in these times.

[nivison] 18/3/2020 08:53

this seems about as good as we could expect and the comments on coronavirus are realistic and measured.

There will obviously be some (!) disruption to the business (although not yet apparently) but no debt and cash in the bank are real positives at times like this. The goal must be to come out of the other end of this virus situation ready to do business. There will surely be an appetite for Anpario products at that time.

In retrospect the share buyback might not have been a great idea but that is easy to say now. At least it was well within the company's capabilities. I like the prudent approach of management and this will really pay off at times like this.

[valhamos] 18/3/2020 08:42

The results look pretty decent.

No material impact so far from coronavirus. "With governmental financial support offered to the agriculture industry to ensure continuity of food supplies, Anpario is well positioned to take full advantage of the situation during the recovery period from Covid-19"

[cerrito] 20/2/2020 17:20

That is how I read it Truffle and for me good news that they are looking through what must be v difficult trading conditions in China.

[truffle] 20/2/2020 16:21

If I have read to-day's RNS correctly then Blackrock have increased their holding from under 3% to 5.42%

[cerrito] 17/2/2020 15:10

A story on the FT today which for me is not good news for ANP

Thousands of chicks are being slaughtered in China given the diggivultird in getting animal feed - and to a lesser extent this is happening with pork.
To deal with shortage of anal protein for the first time since 2015 China is allowing imports from US

[cerrito] 08/2/2020 16:39

The company has updated its list on the website for significant shareholders to yesterday-good for them, It seems Investec have gone up from 4% as per last year's AR to 10% yesterday.
I agree that good that they are doing the buyback..I wonder if they have got wind of a big shareholder who wants out.
They have always said that companies in their field are very expensive-which has made me wonder why they have not been bought out.

[vprt] 07/2/2020 10:52

Agreed, Truffle. I have been (and am still) hoping for sensible M&A, but this is better than nothing, and also sends a signal from the inside about valuation and prospects. The cash pile has been repeatedly discussed at AGMs, but with no action until this.

Their cash pile makes them look like a low return on capital business, when it is not - you need cash-adjust ROCE and PE to see a fair (attractive!) picture, but most investors will just look at the boring headline figures and move on to the next one.

£1m only "solves" 7% of this (admittedly very nice) problem, though. If the M&A pipeline has nothing imminent, a large special divi would be helpful and popular.

[truffle] 07/2/2020 09:27

At long last the company is doing something with its cash balance!
It has been sitting on too much cash for too long. Either return it to shareholders through ordinary or special dividends, invest in/buy other businesses, or buy back its own shares.
It has chosen the latter course of action which may or may not be the best choice, but at least it is doing something with the cash.

[partridge1948] 04/2/2020 09:40

Interesting debate on here. Think the market was also unsettled a bit by the comments on foreign exchange in the trading update and this will be examined when results are published in full.IMO ANP is prudently run and there are likely to be some hedges in place.

[valhamos] 04/2/2020 08:42

Zipstick - thanks, this suggests that in the UK last summer was good for producing large amounts of hay and silage and that Carrs have seen a reduction in animal feed demand over the winter. So if the weather is good you can produce good quantities of quality forage so you don't need as much grain based animal feed which is more expensive.

However Anpario is not an animal feed business; it primarily supplies natural feed additives. The demand for its products arise from the need to maintain and improve animal health to maximise milk or meat production rather than any necessity to use animal feed.

On a personal note it is always a good thing when animal feed is minimised. It is much better for the environment and animal welfare that livestock are grass fed - (in fields or hay) rather than being dependent on grain based animal feed (e.g. herds kept inside most of the year)