"It seems like LSE:ANP:Anpario, a manufacturer of animal feed additives, has been gearing up for growth for a decade. Perhaps it's started to happen.Anpario makes additives for animal feeds, which improve the health of poultry, pigs and cows. The ..."
Jig -- very good point. I'll make the effort to go to the next one, as I see myself getting back on this sooner or later.
I like the idea of what they are doing and the market should move more to the need of these approaches with the risks associated with antibiotics.
I'll be watching more actively from here on and the little drop in the price today helps push me a bit closer to being a member of the club again.
Completely understand your intrigue about the time of retirement of the CEO, but there can be all sorts of innocent reasons - his health, family members' health, inheritance, even becoming out of tune with the rest of the board.
The recent fall at first glance looks bad, but it is only now where it was a week after the Interims, and there has been no new news to affect the share price apart from exchange rate movements; so it's probably fairly priced at the moment.
I think attending AGMs can be very useful - especially for smaller businesses. It is amazing what you can pick up, specially if you can collar a director over coffee or something. So I'm always pleased to hear feedback from AGMs.
I went to the AGM and gained the strong impression the changes were very positive and the company is progressing very well. This is a company with a low turnover in shares so sales tend to affect the price disproportionately and the price drifts between announcements. I have a large shareholding and remain quietly confident that this still has above average medium/long term growth potential with a progressive dividend anticipated.
HB -- Your concerns kind of match my personal angst for selling out a tad early.
However, at the current price it's a nervous hold.
I still have some concerns as to why David Bullen retired -- OK everyone does at some point, but at the cusp of an uptrend in the business is not usually the time to do it. Also without having a new CEO appointment, but bringing back a retired CEO from a non-exec position.
There may be nothing in my curious suspicion here of course but it had me questioning the whole situation.
The other thing I thought was odd, was Karen Prior (CFO) offloading almost half a million pounds worth of stock in September. I usually take more note of what the finance person does even over and above the CEO -- turned out to be a wrong call of course, as it was for Karen.
The appointment of Richard Wood is interesting, especially after his success of Genus, however, he does have other non-exec positions.
I posted the last message 2 days before Anpario hit its recent high. So I give myself full marks for calling the top of the market, but no marks for acting on my observation. But I'm not too worried - as long as the business grows profitably, I see no reason to sell.
The interims were good, and the day they were released saw a share price rise of 12%. Since then I have not seen any significant comment or upgrade. There has been no further news, and the pound has not dropped off a cliff. Volumes are average, so no sign of stake building; but the share price has very steadily risen a further 21% since that day.
I'm certainly not complaining, but such strength without any obvious reason makes me a little uneasy.
No panic selling from me just yet. It's getting a bit overpriced, but it is a growth share, so it should be. I think it can get up to a lot nearer £5 before I get really nervous.
A few years ago, it rather looked as if the company had run out of steam. there was nothing wrong, but sales appeared to have peaked and there was some discussion here about that. Hardboy at least, will no doubt remember. I ended up writing to Richard Edwards, received a constructive reply, a summary of which, I posted here. What really pleases me with these results, is that the actions that he said the company would take to improve sales and profits, have actually happened with very good results. The management teams both at HO and Regionaly seem well balanced in every aspect. Encouraging future, I would say.
If H2 is similar to H1 (I've forgotten if there is much seasonality in this business) then after today's rise the company is valued around a PE of 20 for the year; which if it growing profits at 20+% pa is cheap.
"companies (sic) growth is slow and it has grown profits without a significant revenue hike in the last years." Revenue up 39% Operating Profit up 26%.
Overall these look (on first glance at least) to be excellent figures.
Sales up massively, Profit up very healthily, Still oodles of net cash, H2 started well, Australian acquisition bedding in nicely, new offices in Indonesia & Thailand,. Maintained Gross margin despite increases in raw materials.
I'll read the announcement in greater detail, but so far things look good.
The recently appointed Chairman is very shrewd and experienced in this area and is also the Chairman and founder of Eco Animal in much the same product area and also two VCTs.
I am a shareholder of longstanding in both companies and remain very encouraged by their specialist products that are very difficult to copy and get regulatory approval (typically ten years).
I believe above average growth in sales and profits is a reasonable expectation in both companies.
Thanks for your comments Games and Cool Keith,
I made a small investment here. My plan would be to understand the business a bit better before taking a bigger position.
The track record of the Company seems good, and there is certainly some vigour being injected by the new CEO into sales and marketing. I'm just having some trouble understanding how they are able to compete with Companies who have more sizable R & D budgets to develop better performing products.
"I'd be very interested to learn from those who have been following this Company longer than me if Anpario have some products/technology which differentiates them from their Competitors."
Mickey, It's a good point -- the answer isn't entirely clear in that there are many competitors, some huge.
What Anpario has managed to achieve is 3 strong brand areas that seem to sell well and these can stick and grow. In doing that, I would imagine (as ANP is so small) that they become a pain in the axs for some of the big guys who decide to buy them out.
That's one scenarion of course, the other factor is that Anpario have somewhat simplified their operation by divesting animal feed which is a bulk operation and lower margin, higher staff dependent and more cumbersome operation.
They did this in favour of investing more heavily in sales of the additives which sell on a higher margin and potentially offer higher brand differentiation.
It's high risk, but Anpario has a few good things -- a reasonable record, no debt and a huge market that it only needs a few % of to grow.
Oxo -- I don't doubt their good credentials in running the business, but their collective take, excluding any compensation in equity is 20% of the annual pre-tax profits and considerably more as a % of post tax no doubt.
For a small company like this, that is ridiculous and it makes me nervous.
Games - I'm 15% up on the stock, so happy days but they need to address this largesse
Seems a bit harsh considering other aim pay packets eg bowleven. Especially the CEO who has stuck by the co for 10+ years. This outfit is doing a pretty decent job in my book
Would add easy for me to say as a long term holder as up almost 300% over a 9 year holding period...
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