Anpario Share Price (ANP)

I have been buying too! Great momentum in the business going into this year, I can see it doing well and who doesn't like to help the animals :)

Yes it’s looking like there getting slowly back on track to growing the business again.Looking like this will be good long term investment so i added another 1000 at £2.35 today.

Interesting to see ANP have entered the Dog food sector and fish/ shrimp farm sector. Could be big upside in these markets...

Mastercube®, our 100% natural pellet binder, has been adopted by a European dog food manufacturer following extensive factory trials over a long period. Our sales team are cognisant that there are other similar opportunities in this sector and are actively pursuing these. We were also pleased to receive a European Union complementary feed license through our Irish subsidiary which now means we can market products such as Orego-Stim® liquid directly to vet practises in the region.

And...

Anpario's original technology was a novel chemosensory stimulant for fish and crustacea which enhanced palatability improving the uptake of aquafeed, reducing waste, and thereby helping to protect the aquatic environment. In addition to improving the productivity and financial returns for fish farmers it also has the benefit of allowing more sustainable forms of protein to be used thereby reducing the reliance on fishmeal sourced from wild fish stocks to support aquaculture production.

This technology was originally branded as Aquatice® but commercialisation was halted about ten years ago due to several factors, one being that at the time fish meal was still being included in formulations in high quantities and therefore palatability was not so much of an issue. Secondly, Aquatice® was only available in liquid form which means it needed to be applied at farm level rather than in the feed which is a much simpler method of delivery. In short, we believe the Aquatice® technology was before its time and now with the industry focused on using sustainable feeds such as vegetable or insect-based protein that there is a potential opportunity for Aquatice® to be commercialised. During the last year we therefore developed a powder version for use in feed and adjusted the formulation to suit current regulations. A shrimp trial is planned for later in the year with a global aquafeed producer.

Further to my previous message I note the house broker, Shore Capital, has issued an update today rating Anpario as a recovery play, trading at a 50% discount to their 5 year average EV/EBITDA and have upgraded their 2024 FC by +12% (EBITDA) and +17% (adjusted EBIT).

I suspect the "huge upgrade" to eps which "turnkey17" mentions is partly due to the 20% stock buy back which is only now, and slowly, starting to be recognised by the market, as well as the more favourable forecast trading environment going forward.

Finally, my last word here as I don't post often, I like Anpario as they significantly benefit for the UK's patent box on qualifying worldwide revenue. The benefit a fixed 10% Corporation Tax rate on sales of one of their biggest products, Orego-Stim, and is now extended to their toxin binders. They don't appear to give a breakdown of total global revenue from these products, but from a little research I estimate it probably falls between 30% and 40% and growing. Thus revenue uplift has an outsized bottom line impact.

The 2023 results are no surprise, as guided and are the reason the stock price halved. However I am optimistic given the Q4 and forward commentary. It also appears that the buy back of 20% of the stock is not yet recognised by the market whilst I am positively surprised that despite the buy back their cash position is nearly recouped. Their trading outlook, cash position, and a 4%+ dividend, justifies my stock purchases over the last few months which I am happy to tuck away.