4th Mar 2015 10:28
LONDON (Alliance News) - Anpario PLC Wednesday reported a 14% increase in pretax profit in 2014, even though revenue and profit growth was held back by the strength of sterling, as it also boosted margins, particularly in the UK and made further production efficiencies.
It also gave a positive outlook, and said it was well financed to boost organic growth as well as to consider acquisitions and investments.
The animal feed additives producer and distributor reported a pretax profit of GBP3.3 million for 2014, up from GBP2.9 million in 2013, as revenue rose to GBP26.6 million, from GBP26.0 million, and gross margin improved as it focused on selling specialist feed additive products in growth markets and made further operational efficiency improvements.
The strength of sterling capped the revenue growth at 2%. The company said revenue would have risen 6% if exchange rates had remained constant over the year.
Anpario said its US subsidiary was growing faster than it had expected after making initial sales to the pig and poultry market, while it recorded double-digit revenue growth in the Americas and Asia Pacific. Gross profit in its UK business rose to GBP1.2 million, from GBP0.8 million in 2013, while it said ist China subsidiary was also making progress.
It ended 2014 with cash balances of GBP6.6 million, up from GBP4.8 million at the end of 2013, and it raised its dividend by 29% to 4.5 pence, from 3.5p.
It said the strong cash generation and lack of debt means it's well positioned to finance further organic growth as well as to consider elective investments or acquisitions that would help boost earnings.
"The current year has started well with the group?s performance in line with our expectations. The successful establishment of subsidiaries in the three largest meat producing markets provides Anpario with a sound platform from which to continue to grow the business," the company said.
Anpario shares were up 6.8% at 300.00 pence Wednesday morning, the stock's highest level since January 23.
By Steve McGrath; [email protected]; @stevemcgrath1
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