- Stronger-than-expected second half
- Benefiting from operational gearing
- Robust net cash position
Shares in Anpario (ANP:AIM) soared 10.2% to a two-year high of 405p after the natural sustainable feed additives supplier delivered its fifth upgrade to full-year 2024 guidance on the spin.
Following a stronger-than-expected second half performance, Anpario now expects revenue for the year to December 2024 to be £37.5 million.
That’s up 21% year-on-year and comfortably ahead of the £35.5 million penciled in by analysts at brokerage Shore Capital.
A tasty top-line showing combined with the high operational gearing in the Nottinghamshire-based business and favourable currency swings means Anpario expects adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) to come in ahead of the £5.7 million called for by consensus.
ABOUT ANPARIO
For the uninitiated, Anpario provides sustainable, plant-based products to livestock farms and aquaculture worldwide.
The company is profiting as food producers around the world transition to natural feed solutions and away from banned feed additives such as antibiotic growth promoters whilst increasing the safety and sustainability of global food production.
Laser-focused on providing niche products in an expanding market, Anpario’s competitors struggle to replicate the company’s science-backed, patented products.
BROAD BASED OUTPERFORMANCE
The company’s second half outperformance was broad-based, albeit largely driven by very strong growth across the Middle East and Africa and a continued recovery across Asia, with recent acquisition Bio-Vet benefiting from greater product demand to support the health of dairy cows affected by avian influenza.
Anpario’s year-end net cash of £10.5 million was ahead of the £7.2 million consensus estimate, reflecting improved trading and better working capital management.
‘Our strong balance sheet enables the group to invest in innovative natural product solutions, expand our global reach and explore earnings-enhancing and complementary acquisitions to continue the profitable development of the group,’ said the company, led by chief executive Richard Edwards.
‘We remain confident in our ability to capitalise on growth opportunities, delivering long term benefits to all stakeholders.’
THE SHORE CAPITAL VIEW
Following the bullish update, Shore Capital upgraded its full-year 2024 sales and EBITDA estimates by 6% and 18% to £37.5 million and £6.6 million respectively.
The broker also nudged up its 2025 revenue estimate by 5% to £44 million and its EBITDA forecast by 8% to £7 million.
‘This is Anpario’s fifth upgrade to full-year 2024 (four from trading and one from the acquisition) and we believe momentum will continue as customers return to prior purchasing patterns given the improvement/normalisation in global agriculture and raw material markets,’ said the broker.
