Eco Animal Health Investors - EAH

Eco Animal Health Investors - EAH

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Eco Animal Health Group Plc EAH London Ordinary Share GB0032036807 ORD 5P
  Price Change Price Change % Stock Price Last Trade
4.00 1.06% 380.00 10:06:31
Open Price Low Price High Price Close Price Previous Close
370.00 370.00 380.00 380.00 376.00
more quote information »
Industry Sector

Top Investor Posts

cerrito: I have been going through both the recently published AR and the interims to see if I should increase my holding. I think I will stay where I am for now but would appreciate comments from you all as to where I have misunderstood. One big reason for me not buying more is I am having difficulty in understanding the company and one reason for that is that they do not appear to bother with IR for their retail investors. I take the point that it appears unlikely that they will need to do a fund raise in the immediate future and that those holding over 3% have a combined 65% share holding-ie retail investors are less important than in some other companies. That said they could have been more welcoming in their AGM like for example CWR and ITM or at the very least have done an Investor Meets Company type operation. I should add that the Finances seem better managed than in the past. It was surprising to read n page 126 of the AR that over an extended period an ex Director had helped herself to £300k+ without it being picked by internal or external auditors. Also, a bit disorientating to see that in the two years to March 2020 they paid out £18m in dividends and then we read in the latest interims they had to cut back on their R&D programme as they had insufficient cash. Suggests that perhaps a,lack, in the past, of long term strategic financial planning. What is welcome that there is now more transparency as to where the cash is i.e., China or non China than we seem to have had in the past. It is of course great that consolidated net cash grew from £9.8m at end March 2020 to £12.9m at end September 2020. However, that was due to cash balances of the Chinese company growing from £5.3m to £9.7m and cash balances ex China decreasing from £4.5m to £3.2m. The interims recognize that this cash balance in China-51% owned by EAH- gets transferred by dividends, as one would expect. It would be interesting to know when the next dividend will be paid. My reading of Pages 105/7 of the AR is that EAH would have got £1.6m and £0.97m in FY 2018/19 and 19/20 respectively…but please check that. Let’s hope that this next dividend is going to be higher. My reading of page 106 of the AR which shows a decline in 2020 over 2019 in plant and equipment of the Chinese JV is that the new factory in China is not owned by the JV but rather one assumes by a 100% owned EAH company…is that how you understand it? Begs the question to me is how they realize their factory investment in pounds sterling. All in all, I can well understand why they are not paying a dividend and I go on the basis that any dividend for this FY will be token. I note that the overdraft facility reported on Page 115 of the AR was new. I admit I am surprised that this facility repayable on demand is secured with what would appear to be a highish margin of 1.8%. All seems rather odd to me and suggests that the bank not all that comfortable. Page 116 tells us that the weighted average incremental borrowing rate for lease finance is a, to me, high 7.1%, I was interested to read page 87 of the AR with its good table of in which geographic markets they make their Ebitda. Interesting to see that in the year to 3/20 S and SE Asia far more profitable than China and Japan as regards adjusted ebitda to revenue from external customers and total assets but guess the picture will be different this FY
1aconic: The debt jumped out at me too - it's in current liability though so isn't that they've taken on any long terms loans. That would have been a little bizarre given how cash generative it is. Was hoping that there may be an investor call too, particularly in light of the delays, etc. R&D was still a mighty 10% of revenue despite the caution when covid broke. The comments about large chunks of that having to be charged immediately to the P&L due to being early stage stand out too. That means EPS and ROCE need quite significant upwards adjustment to be put in true context. My dilemma if it re-rates again when FY21 ends in March is the quite hefty weighting it could start to have in my portfolio!
cerrito: I am disappointed that there is no indication that they are going to have a session for private investors - either an Investor meets company type event or a participatory AGM that CWR and ITM both successfully had.
smithless: The forecasts I have are FY20 eps 6.4p, FY21 eps 9.5p, FY22 eps 11p, with revenue of £70.9m, £77.3m and £83.8m for those respective years . Not surprised its down, as investors fear the worst when companies keep delaying results and the PR/management should be shot for releasing this news at 16.35. Its just a cheap thing to do and pointless.
cerrito: The fact that they will need 8 months + to prepare their accounts even with Covid is pretty poor and gives a bad impression. I cannot recall any other company I have shares in needing such a long delay. No idea how much the new auditor BDO is to blame. Perhaps we will get the September interims before the March finals. Once again they talk about market expectations without specifying what they understand these to be. My reading is that for the current FY the forecast is 9.54p eps up from the forecast of 7.8p for the last FY, but well down from that for 2017,18 and 19, Do any of you have an understanding of this?? I assume these come from N+! Singer and Friedlander and perhaps Peel Hunt. AFS would appear to be less of an issue. See hxxps:// Incidentally, I transcribe something I posted on the ANP site yesterday which is also relevant to EAH. Quote Thought on ANP this morning when I read a piece in the FT of the formation of Investor Action on Antimicrobial Resistance which is backed by institutional investors with U$7tn under management to reduce use of antibiotics everywhere including food production. hxxps:// While the immediate impact on the ANP bottom line will I assume be muted, it all helps. unquote
cerrito: Trying to see what I should do with my holding here. In the last two years there was no trading update between their interims and finals, which no doubt will come out later this year given the world wide scope of their operations. Given all the uncertainty of both ASF and Covid, it would be good to get an update from the company. ASF extends its reach to Poland and East Timor but could not find any recent articles on it getting anywhere near the US. I also see that ANP have had a good run. My current feeling given that us private investors are flying blind is that the shares are fairly valued, but other perspectives welcome. Congrats to those who bought sub 150. I did not join you as I was distracted by other issues.
jimbob49: Thanks Aimingupward - I can't say they all go like this! Spread was massive when I bought but also seems to have tightened up over the last few days. Would like to know what is driving this rally - shorts closing? Either way this was pretty highly rated before the fall and animal health is a really popular sector for investors right now. Hard to find a stock in the US with animal health interests below 40x earnings. I have heard lots of news about China re-stocking herds so would imagine farmers would take even further precautions going forward to protect their animals from illness. Hope for a continued share price rise rest of the week and beyond! Good luck all holders
mach100: Pug, thanks for your thoughts. The abolition of the divi never sits well with investors. Apart from that it seems a reasonably cheery update but with a lot of hope in it. I expect an initial fall then perhaps a recovery intra-day as a not as bad as expected relief rally comes.
bottomfisher: Cerrito you probably understand EAH and ANP better than many of us. However, I always thought it odd when Peter Lawrence, Anpario's chairman, resigned as long-time chairman of Eco Animal Healthcare, which he founded in 1972, and was replaced as chairman by Richard Wood, Anpario's senior independent director. Given that both companies have a number of institutional investors on their share register, perhaps the change was triggered by corporate governance concerns about the independence of two companies with unusually close boardroom ties. As a non-expert, I would be interested to know whether there is much competitive overlap between the two companies.
pireric: Yes that's the mix of the 16 and the near 24. Quite rare to find a spread that big I find. I wonder what has gone on in terms of expectations setting. A bit concerned that many institutional investors will be looking for the 24 and the 20 or below may be disappointing
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