Eco Animal Health Dividends - EAH

Eco Animal Health Dividends - EAH

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Stock Name Stock Symbol Market Stock Type
Eco Animal Health Group Plc EAH London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 100.00 07:31:24
Open Price Low Price High Price Close Price Previous Close
100.00 100.00 100.00 100.00 100.00
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Eco Animal Health EAH Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

rivaldo: Not a holder here, but a (very!) long-term observer with EAH never having moved from watchlist to actual portfolio. Had to comment on an earlier post that today's update was in line. Singer have issued an update note stating that the actual £6.5m EBITDA compares to their £7.1m forecast, so is quite a large miss. They'll update all forecasts after the results, but the historic number will now evidently be lower than the previously forecast 2p EPS. Their "initial stab" for the current year suggests in light of the "soft start" to the year in China that "a flat year is in prospect", suggesting that EPS to March'23 will also be recalculated down to say 1.8p EPS or so.
cerrito: The sad reality is that they were very sensible to do the bank financing announced the other day and the further sad reality is that any dividend we are likely to get in the next few years will be nominal
edmonda: Collaboration to develop poultry red mite vaccine - new research note by Equity Development (Full link here: ECO Animal Health has established a research collaboration with Moredun Research Institute aimed at developing a potential first-in-class vaccine against poultry red mite, a blood-feeding parasite with welfare and production implications for egg-laying hens. The move represents ECO’s second new academic R&D collaboration this year and follows an agreement signed with Imperial College last month to develop vaccines against porcine infectious diseases. Moredun is an independent, although largely government funded, scientific research institution based in Scotland focussed on animal/veterinary health. The three-year project appears to build on the work of Moredun’s researchers, who have notably been able to establish a laboratory colony of poultry red mites and have tested a prototype vaccine based on extracts from the mite. The project intends to use a reverse vaccinology approach to identify epitopes by analysing bio-informatic data from an infection model across the developmental stages of the mite. The aim will be to generate a synthesisable vaccine that can be tested in Moredun’s poultry red mite challenge model. Poultry red mite (Dermanyssus gallinae) is one of the most important causes of production losses in laying hens, including by acting as vectors for pathogenic bacteria (including salmonella, E. coli and mycoplasmas) and viruses. The mite can feed on up to 5% of a bird’s blood overnight, causing anaemia and stress that can induce feather pecking, cannibalism and increased feed consumption. As there are no effective non-chemical solutions, insecticides are used to kill the mites but this has its own risks including the potential for chemical residues in the eggs/meat and development of resistance. Over 90% of farms in Western Europe are infested with poultry red mite. ECO’s shares have fallen to their lowest point since October 2008, primarily on concerns around weakness in the Chinese pork market, as the economics of pork production are a key driver of demand for Aivlosin. Chinese pork prices have been highly volatile over the past three years, after an African Swine Fever outbreak in 2019 and its knock-on effects, compounded by the pandemic and the government’s zero-Covid policy. Chinese pork prices fell throughout 2021 (from an unusual high) and into 2022. However, since May they have recovered to a level where Aivlosin demand should stabilise. ECO is due to report its financial results shortly, with consensus suggesting sales of c. £81.5m and adjusted EBITDA of £6-7m. Both will be lower than exceptional levels seen in 2021. ECO’s enterprise value is currently £54m (based on forecast cash of c £18m), suggesting an EV/sales ratio of <0.7 and EV/EBITDA of ~8-9, both of which are well below norms in the animal health sector. ECO resumed payment of a dividend in 2021, at 1p/share, that if repeated, would offer a yield of 0.9%.
cerrito: Article in the FT the other day on the role of increase in pork prices in the general inflation situation in China. Commented that profits of hog producersike Muyuan being squeezed given increase in price of animal feed . It also said the share price of Muyuan suffering but actually only down 1.5pc YTD. Anyway suggests to me that there continue to be headwinds for EAH despite increase in pig prices.
edmonda: Encouraging expansion of vaccine R&D pipeline (new research note from Equity Development) ECO Animal Health has undertaken what represents a potentially important expansion of its R&D pipeline via a collaboration to develop veterinary vaccines against three porcine infectious disease targets using a novel self-amplifying RNA (saRNA) technology developed by Professor Robin Shattock of Imperial College London. The collaboration will assess saRNA-based veterinary vaccines against two viral and one bacterial infection in ECO’s validated swine disease models with a view to selecting candidates for development and commercialisation under license from Imperial College. The company is due to report its financial results for the year to March 2022 next month, with consensus suggesting sales of c. £81.5m and adjusted EBITDA of £6-7m. Both will be lower than exceptional levels seen in 2021. Current ECO’s enterprise value is £64m (based on forecast cash of c £18m) suggesting an EV/sales ratio of 0.8 and EV/EBITDA of ~9-10, both of which are well below norms in the animal health sector (peer group EV/sales 2.5-3.0x). ECO resumed payment of a dividend in 2021, at 1p/share, that if repeated, would offer a yield of 0.8%. Link to note:
cerrito: I agree a very sloppily worded RNS and you would have thought with three joint brokers not to mention a PR agency and ED they would have done a better job. We are told about revised expectations in para 2…not clear who revised them when as no mention of revisions in the January 12th TU when they said this year’s revenue will be in line with then current market expectations. Very disappointing that they do not tell us their understanding of consensus estimates for the current FY. FWIW I see that Singers-one of the three joint brokers- have out a note today with a buy at 253p just below the previous TP of 264p. They have this year’s adjusted EBITDA at £7.1m compared to that of 20/21 of £22.2m and have left unchanged their forecasts for the next two years. Singers comment that they had estimated total R&D expenses in this FY of £8.4m and now management guidance is £10.2m. Difficult to know if Singers got hold of the wrong end of the stick or EAH have no grip. What happens to the share price depends on the amount of patience that their larger holders have. To remind myself of their shareholder structure I went onto the web site and found that there has been no update since September 31. Since then of course we have said goodbye for all intents and purposes to Amati and hello to SFM with their 11.39% holding. Seems rather lackadaisical. The magnitude of the share price drop, the -for EAH- very large volume today of almost 1.2m shares suggests that some have decided not to hang around. With the current share price, the cable at $1.30 and an apparent lack of management grip, this must be a takeover target,,,although I do not understand the industry enough to know who it could be.
cerrito: I see the share price continues unloved as of course do those of many companies of a similar size. Apart from March 1 when 300K+ shares traded there has not been much trading activity in the last month. I fear that the big increase in food input prices that pig farmers around the world will face may reduce their propensity to buy EAH products, but I will be the first to admit that I do not see it clearly. I see that Xi has been banging the drum for self sufficiency, saying Chinese bowls filled mainly with Chinese food, which on a macro level is good for EAH.
1aconic: Hi Cerrito - he didn't directly say it wiped it out but the figures he gave suggested it. He said that dividends have a 5% withholding tax but the royalty tax rate equates to 41% Therefore, he implied that for every £1 repatriated as dividends (split 51:49) EAH would get 48.5p and the JV about 46.5p (assuming local dividend taxes are about the same as the withholding tax) but for each £1 repatriated with a Royalty payment EAH get 59p and the JV partner (Huge Leaf?) zero. Therefore, seemingly EAH doesn't gain a whole lot for penalising HugeLeaf massively. The bit on that I wasn't clear on (and that would change the maths entirely) was whether the 41% for royalties included the 25% headline tax rate or not (the 5% on divis seemingly does)... However, according to my notes he did say that going forward divis would be the method of choice. I was disappointed by that at the time because obviously a fairer share of the JV profits could be absolutely massive for EAH's own bottom line. That's why I was surprised when the RNS mentioned a royalty payment. Maybe it was just a one off or perhaps since the H1 call they've found a less tax punative way to do it.
cerrito: 1aconic I clearly remember it being said that dividends are more China tax efficient than royalty payments but cannot remember it being said that taxes wiped out the payment. I will not be able to organize myself to listen to the replay of the recording. My eyebrows did not go up with the reference to a royalty payment as they get 100pc of a royalty and 51pc of a dividend.
1aconic: From recollection, I think the share ownership targets are new - perhaps even as recently as last year when Wilkes purchased. I was surprised Marc Coombes bought this time round as he's no real need to fulfill that given he's leaving - although at the current share price it does seem a bit daft not to, despite the remaining underlying areas of concern here. I'd trimmed about half my holding in the upper 300s but have been adding back since the pull back. Echo your irritation with vague references to market expectations Cerrito. Didn't really understand the royalties section of the RNS - in the report last year they said they were looking at royalties as an option due to the unfair split of profits with the the Chinese JV however on the latest webcast they went to great lengths to explain how the tax penalties are significant and it wasn't a good option! From my understanding of what he said, the upshot was that if EAH took royalties the extra they'd receive (compared to paying dividends and splitting profits equally) would largely be swallowed up in Chinese taxes and there was little point to it. Anyone got any further insight there? Looking forward to the CMD and getting a deeper insight into the research programmes. Past communications in that regard haven't been the greatest.
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