Looking up9 Apr 2012 13:56
FinnCap analyst Duncan Hall estimates that Meriden will contribute revenues of £4.1 million and an EBITDA of £0.5 million in the current year. For a full year, Meridan should enhance group pre-tax profits by £0.75 million on sales of £5.5 million, based on its performance in 2011.
Hall now expects the enlarged business to post pre-tax profits of £2.7 million for the full year and earnings per share of 10.2 pence, up from last year’s £2.1 million and 8.4 pence respectively.
The analyst also noted that, according to his calculations, Anpario finished the year with £4.5 million in the bank, which means the acquisition will place no strain on the balance sheet, especially since Meriden will come with surplus cash.
Anpario says that it expects to have £2.5 million in the bank following the completion of the acquisition.
“The purchase of Meriden Animal Health... will be satisfied from existing cash resources and represents a complementary and earnings enhancing move,” said Hall.
“This move encourages us to lift our target price to 140 pence, offering investors useful upside from the present share price.”
With just over half its shares in intstitutional hands, dividend and directors who put their own money in, makes it quite a unique company compared to most of the dross, flyby nite lifestyle directors on aim. Fincap are not renowned for overexuberance, but there has been some encouraging buying recently for such a quiet stock and waiting fort he rebranding (name change) to bed in. Lookforward to seeing how close the analyst results prediction is, and how much of an opportunity China will turn in to, where much of our supermarket meat is now reared. Has been slow, but still one of the most interesting prospects on AIm. A real company with real prospects and real profits in danger of giving Aim a good name!
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