Anpario Share Discussion Threads

[partridge1948] 16/3/2022 11:27

Pleasing results, sales growth 13% at constant currency an improvement on previous years and they appear to have some pricing power to recoup increased input costs, albeit slightly delayed. Balance sheet remains strong. Dividend increase a sign of confidence from this prudently run business. It remains a firm long term hold for me, but always dyor

[cfro] 16/3/2022 07:34

Over the moon with the 12% uplift in the full-year dividend to 7p (11.1% overall).

9% revenue growth as stated in January's update with a corresponding 7% increase in PBT and a superb increase of 11% in basic eps.

Sales growth across all regions (again as stated at the time of the last update) with various important products selling really well - Orego-Stim up 24% and pHorce sales up by 23%. Mastercube pellet binders up by 37%.

This little piece on Ukraine:

We are shocked and saddened by the tragic events unfolding in Ukraine and our thoughts are with everyone affected. To support the humanitarian response Anpario is currently engaged with British Red Cross to make a £25,000 donation to the DEC Ukraine Humanitarian Appeal.

We have considered the sanctions that have been put in place against Russia and Belarus and although our products can be described as being for humanitarian purposes, we have ceased all trading with these countries. In 2021, our revenues from Russia and Belarus were less than 1% of Group revenues, with no revenues from Ukraine. We have no dependency on material supply from these countries.

[igoe104] 16/3/2022 07:32

Happy with those results, they seem to be managing the global headwinds extremely well.👍

[cfro] 03/3/2022 14:12

I too have made a modest top-up. Been itching to add to my holding here for a very long time.
(Would have liked to have seen the new chairwoman - Kate Allum buy a maiden stake at these "attractive" levels too, but nothing from her as yet).

Thankfully it does seem that Anpario's exposure to Russia/Ukraine is negligible. Don't forget that there isn't any impact for FY '21 anyway with results due in a couple of weeks. We should hopefully get a few words from management in the report.

[nivison] 02/3/2022 19:02

Not sure whether this drop is linked to the trade volume or just part of the overall market reaction to the general bewildering nightmare that is unfolding in Ukraine.

Looking at the last full report about £3.5 million of revenue came from continental Europe as a whole. So just over 10% of total revenue. This wasn't broken down into countries as the report states that sales per country are not large enough to be material. That 10 % is spread over approx 30 countries. Sales were increasing in Belarus and Russia (double digit percentages) but seemingly from a very low base as far as I can tell. There are no wholly owned subsidiaries in the directly war affected countries with sales in the region presumably dealt with via the Turkey office. So I think that Anparios direct exposure to the appalling developments is thankfully very limited at the moment.

The uncertainty surrounding what on earth is going to happen next is the problem I think. Whatever happens to the share price these are trifling concerns when compared to the worries of Ukrainian population.

[cerrito] 02/3/2022 14:17

I have made a very modest top up/.
I see that in 3 of the last 5 trading days volume has been in excess of 20k . I do not have access to historical trading volumes of ANP but strikes me as heaver trading than normal.

[cfro] 14/2/2022 10:52

Just been catching up with this news from Feb 1st. Significant investment spread across 20 different projects:



In the recent TU they stated they had spent £0.9m which included the new solar panel array so i assume that this amount of capex has been included in the figure announced in the above article.

Pleasing to see them re-cycle the free cash-flow back into the business.

[partridge1948] 31/1/2022 18:34

Think the cash outflow in H1 was probably more to so with building up inventory to make sure of supply to customers in view of logistics issues, but fair point that cash generation in H2 was strong and I doubt that we will be disappointed when the results come out in March. Always dyor.

[cfro] 31/1/2022 08:07

cerrito/partridge1948,

In the trading update they mention their cash balance and the movements over the year. It stands at £15.5m which is slightly lower than FY '20 (£15.8m). However it is easy to forget that we had lock-down in H1 when the cash had to be drawn-down.

£0.9m of cash has been generated in H2 even after £2.1m of dividend payments and capital investments of £0.9m - taking this into account then i assume H2 has been very strong.

[basem1] 30/1/2022 17:30

Just been drawn to my attention Solid but not cheap with a mkt cap of £135m Strip out the cash and trading on around 15-20 times earnings Best watched for now

[partridge1948] 29/1/2022 11:36

Cerrito - Good point. Stockopedia not always the most accurate, but have £4.5M post tax as analyst consensus for 2021 and £5.2M for 2022. There was a large tax charge for some reason in H1 2021 leaving post tax profit £1.8M, so they will do well to get to £4.5M for the year - my gut feel is that they will.

[cerrito] 28/1/2022 17:15

I have just located a Canaccord Jan 6th note on ANP where they have their estimate of 2021 adjusted PBT at £5.4m the same as 2020 but no idea of course if tis is what ANP regard as market expectations.

[cerrito] 28/1/2022 17:07

I have to say I was rather exasperated when I read this Wednesday am when they said that earnings would be in line with current market expectations without telling us their reading of current market expectations. I have not had time to transmit my exasperation to the new F D.
I have just seen on Research Tree a one page note from Canaccord who maintain their TP of 800p partially based on an acquisition.I have no idea what the attitude of the new board is to acquisitions(or indeed to the use of their cash mountain)and fingers crossed that we can have a face to face AGM.
I will consult with my pillow over the weekend as if to whether I increase my holding.

[partridge1948] 26/1/2022 08:48

Held for many years and happy with progress. I agree this is a good update in all the circumstances. With the factory operational improvements made in recent years, profits should hopefully grow in percentage terms more than revenues.

[cfro] 26/1/2022 07:44

Inline statement. Revenues to be not less than £33m so that equates to growth of at least 8% ('20 £30.5m) which is not too shabby at all.

Sales growth achieved across all market regions and this is despite various lock-downs and the global supply chain issues.

I dont think long-term investors could ask for more at this stage.

[igoe104] 26/1/2022 07:27

Encouraging update, they seem to be navigating the global issues fairly well. And they also said shipping costs are improving, so ANP should improve as the year goes on.

[vprt] 03/12/2021 10:54

Yes, cfro, it is certainly good news, but I am struggling to assess just HOW good... Commercial implications are unclear (to me, at least) - and I am very much looking forward to learning more as this develops. "Upside risks" such as this one are very welcome in my portfolio! Anpario's systematic customer trials and evidence-based sales are a strength to start with, and if their key product now can make a (somehow?) valuable claim - relative to more generic sources/formulations of oregano oil - hopefully they can also capture some of that value in the form of higher market share and/or margins. (The tax benefit is nice, but I am hoping that is not all).

[cfro] 03/12/2021 07:39

Gaining a UK patent for Orego-Stim is brilliant news. (Reading between the lines i get the impression that, with the work done by Reading University, that they might be pursuing the patent route with other products too.)

Will be tax favourable too which is another benefit.

[igoe104] 01/12/2021 08:50

Lord Lee has written a positive wtite-up in the FT about his 5 biggest holdings. With ANP being one of them.

[partridge1948] 28/10/2021 14:04

I think ANP end users are quite slow to take up new products (lots of trials etc) but do finally get there. Not therefore expecting great things in the short term from Optomega-Algae, but it may also enable them to address new markets. All their ducks are gradually getting in a row and I am a very happy long term holder. One day,I hope, they may become a nuisance to one of the major players.Always dyor

[cfro] 02/10/2021 11:38

R&D investment seems to be paying off. A new product annoucement:

[cerrito] 28/9/2021 11:20

Some what undecided if I should buy more.
Looking at the cash flow see the big increase in inventory levels from £4.9m to £6.7m in the 6 months of H1. They give a clear explanation for this increase which is only partially down to the need to stockpiling essential raw materials.
Reminded that in H120 they did buy backs of £1m but they have not repeated this since then.
Sales and gross profit both grew 3pc in constant currency in the period. True Covid hit SE Asia but I ask myself if at the current price of 600p (let alone the 700p plus recently) should we not expect better growth, even if the current half has had a strong start.

[cerrito] 17/9/2021 17:34

Just had a canter through these and as cfro says plenty going on... I looked to see their R&D expenditure but they did not disclose it.
Glad to see they gave a coherent explanation of increase in inventory which meant that for the first time for some time they had an operating cash flow deficit.
I guess they will find like EAH that China has come off the boil in this semester.
I was wondering if we were going to get any hints from the new Chair as to what she plans to do with the inefficiently high amount of cash they have and perhaps she needs more time to collect her thoughts.
No surprise to me that there has been a modest bounce back in the share price today after the fall.

[vprt] 15/9/2021 10:07

Well spotted, unless they have invented a time-machine (which would be unexpected progress), that one is going to be hard to implement...