5th Sep 2018 11:12
LONDON (Alliance News) - Anpario PLC on Wednesday reported an increased pretax profit for the first six months of the year due to reduction in administrative costs and absence of exceptional items.
The company, which produces and distributes animal feed additives, recorded 19% growth in pretax profit for the half year ended June 30 to GBP2.2 million from GBP1.9 million in the year ago period.
Administrative expenses fell to GBP4.8 million from GBP5.1 million and the company did not incur any exceptional items, compared with GBP269,000 in exceptional items the year before.
Revenue fell slightly to GBP14.77 million from GBP14.80 million while cost of sales increased, resulting in a gross profit reduction to GBP7.0 million from GBP7.3 million.
The company recorded a foreign exchange gain of GBP200,000 in the half year, compared with GBP400,000 headwind the year before. The company expects foreign exchange environment to be more favourable in the second half of 2018.
The company declared a 10% interim dividend increase to 2.2 pence per share from 2.0p the year before.
"Our business development strategy will progressively improve sales and distribution, while control of costs will ensure that they do not move ahead of the growth we achieve. Our strong balance sheet and consistent cash generation provide Anpario with a sound platform from which to make selective earnings enhancing acquisitions and to further invest in new product development for the future," said Anpario Chairman Peter Lawrence.
Shares in Anpario were down 1.9% at 460.00p on Wednesday.
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