Anpario Share Discussion Threads

[igoe104] 15/9/2021 10:03

I'm abit confused about the dividend announced. It says payment on 12 November for those who are registered on the 26th November,? 🙄

[vprt] 15/9/2021 09:48

OK but nothing spectacular. I agree with cfro above. A superficial reader might be disappointed by the slight fall in revenues, %GM and EPS; perhaps fair but certainly not surprising or in any way alarming for the long term investment case here - which for me includes steady but unspectacular growth and gradual (and sustained long term!) margin improvement.

Some of the %GM reduction was due to temporary factors (logistics/shipping, FX) and the materials cost increases are being being passed on to customers in 2H; great.

Given the %GM setback, the improvement in EBIT is impressive (2.651 vs. 2.317), and so the TTM EBIT is continuing its steady march in the right direction.

The EPS drop is largely due to an unusually large tax charge - unsurprising due to UK tax changes, and I believe also in part one-off in nature.

Nice 9% increase in divi and the explicit mention of the "strong start to 2H" confirm management's confidence in the direction of travel - and this is a highly credible and non-promotional management team - help me (as a holder) sleep well at night.

PS: If you're looking for good news, e.g. 113% growth in China and a new subsidiary (=moatbuilding) in NZ are hidden in the text...

[cfro] 15/9/2021 07:51

Well...i think these results were more or less intimated to in the AGM update. As 2020 H1 was so strong these were always going to be a tough set of comparators to beat. Kate Allum says as much in her comments:

The Board is pleased to report a good sales and improved profit performance with sales at a similar level to last year and 3% ahead on a constant exchange rate basis. Our strategy of offering more sustainable and environmentally friendly products as an alternative to anti-biotic growth promoters and some of the harsher chemical treatments is gaining traction. This performance should be seen in the context of a very strong comparative period and at a time when the UK's trading relationship changed with the European Union.

At least the second half has started strongly so results for the full-year should hopefully look a little better. But looking out slightly further into the future clearly there are very strong industry growth trends evident.

[partridge1948] 13/8/2021 12:07

Mine arrived 3rd Aug from HL. Not big volumes, but nice to see share price holding firm ahead of half year results due early September. Hope it stays that way!

[igoe104] 02/8/2021 14:10

AJ bell, not paid yet... going to have to chase it up now..
.

[partridge1948] 02/8/2021 14:03

No sign yet from HL

[cerrito] 02/8/2021 13:29

Barclays paid on Friday

[cfro] 02/8/2021 13:15

What broker are you with?

II paid first thing Friday morning.

I had this problem a year ago however. Took three weeks to get my divi in the end. Apparently the problem lay with the registra's where they sent out all the cheques to various brokers but many did not receive.

Hope they havent got the same problem again this year!

[igoe104] 02/8/2021 08:27

Anyone still waiting for Friday dividend payment to be paid ?

[cerrito] 17/6/2021 16:36

I was reminded of their comment on supply chain issues when reading the interims of a company in a completely different field PRES talking about delays in getting supplies of in their case steel.
Are other companies you folk are invested in flagging this up?

[partridge1948] 17/6/2021 13:28

Cerrito; Fair point, although I have a lot of time for the CEO. Hopefully,any acquisition would be of a decent business in its own right, where cross selling opportunities might present best route to growth.

[cerrito] 17/6/2021 13:13

partridge1948
I forgot to add that I ask myself if they have the depth of management to integrate an acquisition so large that they would need to do an equity raise.

[cerrito] 17/6/2021 12:12

Thanks vprt for pointing us in the direction of the Q&A and presentation. First time I have seen such a detailed breakdown of sales via species...I know this has been asked for before.I saw they talked about their R&D in the presentation and was rather surprised that they spent £43k in 2020-up from £23k in 2019 but I would have expected a higher figure.
They are right to flag the stronger pound.
partridge1948: You are right to flag the liquidity in the shares, though you could say that is the flip side of a loyal shareholder base. I have also held the view that they are a potential takeover target...not from private equity but more from a bigger player in the industry though I admit I do not understand the industry dynamics well enough to know if there are any big players for whom ANP would be a natural fit.

[partridge1948] 17/6/2021 11:04

As another long term holder, I am happy with the prudent way this business is run. New challenges seem to appear every year to thwart rapid organic sales growth - lets hope supply chain problems and raw material costs do not impact too greatly this time. Cash generation always a strong point and statement suggests this remains the case, although no figure given this year. Liquidity an issue - dream scenario is that they find a good business to acquire, which necessitates a fund raise and new institutions come on board with placing at 700p! Could of course always be a target themselves, but always dyor.

[cfro] 17/6/2021 09:58

With Revenues at least inline with last years strong comparitives that is still a very good result but as you say they are most probably going to be north of that, which is even better.

The implied "improved profit performance" suggests margin expansion already happening which is excellent news. (Edit - after reading the agm Q&A i see that they expect gross margins to reduce slightly in this current FY but obviously over the medium term margins are set to increase).

Whats exciting for me is Kate Allum now taking the reins. She has tons of experience particularly in the agri industry space and i will be watching with interest what ideas she has and where she steers the company from here.

[vprt] 17/6/2021 08:48

The third paragraph of today's AGM RNS, which apparently(?!) comments on trading to date in 2021, implies revenues north of £16m (as 1H 2020 was 16.2m) and excellent profits; "improved profit performance".

It is also well worth reading the answers to the AGM questions, which illustrate some of the (strong, long term, in the company's control) drivers of margin expansion - with good reassurance that the medium and long term profit growth is likely to significantly outpace revenue growth (which hopefully will also be pretty good).
hxxps://www.anpario.com/investor/wp-content/uploads/sites/2/2021/06/AGM-Questions-2021-4.pdf

The AGM presentation document is also a must-read as it has lots of good information, including some splits of the business by species (lots of chickens when you add broilers and layers!) and persuasive (for me, at least) evidence from several systematic product trials.

I would have liked to attend the AGM in person, not least to hear how the new chair and board think about the business, but hopefully next year. By then they may perhaps also have made an acquisition or decided on returning some of our cash.

Happy holder.

[igoe104] 10/6/2021 14:23

The directors have sold on several occasions over the last couple of years and the price has continued to go up.

[bottomfisher] 08/6/2021 17:49

Much as I like Anpario, I feel that the recent director share sales tells us something about the company's over-rated share price. According to Stockopedia ANP is valued at 28 times forecast earnings compared with forecast earnings growth of 7%. It is trading at an EV/Ebitda multiple of close to 20 times and yields 1.6%.

I will revise my opinion when I see more than token share purchases by the new chairman, finance director and non-executive directors. Perhaps Kate Allum might mark her elevation to chairman at next week's AGM by using her first year's chairman fee of circa £40,000 to buy shares of an equivalent value.

[cfro] 08/6/2021 15:54

Ok then, that's Peter Lawrence sold and gone. No surprise there.

Share price up on that news..

[partridge1948] 05/6/2021 08:59

Thanks for this cfro - a fair commentary. Should be trading statement at AGM 17th June.

[cfro] 04/6/2021 15:57

Richard Beddard from II is a long term shareholder:

[nivison] 23/4/2021 14:16

There has been some good succession planning here and I think the fact that Peter Lawrence is retiring (he will be 73 in July) explains why he wants to sell shares.Karen Prior is 60 and Richard Edwards is 55 perhaps they are looking to wind down a bit? Who knows. I still think this company is very well run and has a very good product and balance sheet. They have recruited some good people recently which may provide some renewed energy into senior management.

[cfro] 23/4/2021 13:44

Peter Lawrence also sold shares back in Sept '20 at 434p. The CEO sold a large chunk at 580p and the FD - Karen Prior sold half her holding below 400p (398p).

None of those sales look particularly well timed nor very clever.

From a long term shareholders perspective it is time for a new beginning - out with the old and in with the new as the old saying goes.

[partridge1948] 22/4/2021 19:05

Another chunky director sale today, this time by the outgoing chairman. Like the previous ones from outgoing FD and the CEO, there may be good reason, but I for one would welcome something coming the other way before too long from the incoming FD and the new non execs.

[nivison] 21/4/2021 18:08

Market cap hit new high today, volume not huge but some large single trades (for Anpario). Could just be a reaction to the new board appointments - excellent succession planning showing good corporate governance - or maybe a sign of something else...? time will tell.