(Alliance News) - Anpario PLC on Wednesday said annual profit was more or less flat in 2019, pulled marginally lower by administrative expenses.
Shares in Anpario were up 3.7% at 233.40 pence in London shortly before midday.
The feed additives producer recorded a GBP4.4 million pretax profit for 2019, 4.4% below 2018's GBP4.6 million profit.
Although revenue increased 2.5% to GBP29.0 million from GP28.3 million, a 12% rise in administrative expenses to GBP10.2 million from GBP9.1 million meant that profit declined.
Anpario has proposed a final 5.5p per share dividend, taking the total for the year to 8.0p, 11% higher than the prior year's 7.2p per share dividend.
Chair Peter Lawrence said: "The board is encouraged by the performance in the second half of 2019 driven by strong trading in Latin America and the Middle East, and a welcome recovery in sales in our Asia region. It is also pleasing that the recent targeting of China's poultry industry has helped to reduce the impact of African swine fever on our business there. Costs continue to be managed closely and our strategy to market higher value-added products and develop more direct routes to market has helped to improve gross margins."
Lawrence also commented on the Covid-19 pandemic, stating that Anpario has yet to experience any material harm from the virus but is monitoring the situation.
"The outbreak and subsequent spread of Covid-19 is causing concerns to all industries. Anpario's regional sales network is enabling the group to continue to support local customers and at this stage, we are confident we can manage any disruption which may be temporary in nature. Currently, there are travel restrictions to certain countries and a number of industry trade events have been cancelled. There may be some disruptions to shipping around the world but as most of our raw material supplies come from Europe, we expect to be able to fulfil orders effectively. With governmental financial support offered to the agriculture industry to ensure continuity of food supplies, Anpario is well positioned to take full advantage of the situation during the recovery period from Covid-19 and beyond," the Anpario chair said.
By Anna Farley; annafarley@alliancenews.com
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Anpario (ANP)