Anpario plc is a leader in the manufacturing and marketing of high performance natural feed additives for global agricultural and aquaculture markets with products which improve the health and output of animals, thereby increasing profits for the farmer.
Feed additives producer Anpario (LON:ANP) is trading well and doing all the right things, according to David Lowery at Faraday Research.
The analyst wrote in a note that, although there has not been a huge amount of news from the company of late, Anpario shares have moved higher over the last couple of weeks - breaking through the £1 barrier at one point. The stock was last trading at 95.50 pence.
While the company’s fish farm feed business is doing well, its agricultural business should also be experiencing solid growth, he said.
Recent news of bad weather hitting agricultural production could mean an increase in demand for feed additives around the world, as the production of grain - a major source of animal food in the sector- falls. “We feel there’s plenty more upside for Anpario over time,” said Lowery.
The deal to buy Meriden Animal Health, a UK-based animal feed additives company with a large portion of its sales in China, which was announced in April, was good one for Anpario, the analyst believes.
“Not only is it getting exposure to a fast growing market but it also bought Meriden for what we see as a very good price (at £4 million).”
The group announced strong results for the 2011 full year in April and in late June said it was on track to meet its profit target for the current full year.
“The company is trading well and doing all the right things. The Meriden acquisition will increase exposure to the fast growing Chinese market, which is a positive development,” Lowery added.
Anpario manufactures and markets high performance natural feed additives for global agricultural and aquaculture markets.