Anpario reported solid growth in key target regions including Asia, the Americas and Middle East. Solid increases in revenue and profit led to introduction of interim dividend.
As Anpario updates the market Graham Spooner, investment research analyst at The Share Centre, explains what it means for investors.
"Anpario is an AIM listed smaller company that is trying to build a name for itself as an international producer of natural speciality feed additives, primarily used for pigs, poultry and fish, aimed at improving animal health.
"Investors should note that the group's interim results this morning, which led to a 6% rise in the share price in early trading, highlighted the global reach that the company is achieving. The group reported that it had seen solid growth in key target regions including Asia, the Americas and the Middle East during the first half period.
"In regards to the numbers, there was a 39% increase in revenue to £14.8m and a 31% rise in profit to £2.6m leading to the introduction of an interim dividend of 2 pence which should please investors. Furthermore, the group noted that the second half of the year has started well.
"The company referenced today new staff have been recruited in order to develop new products. One of the group's main aims and challenges is to convince farmers that its products will improve profitability so the hope is that Anpario will go some way to helping break down this barrier. The group could be helped further in the future as a result of the tightening of regulations, which could prohibit certain treatments in favour of more natural feed additives.
"This is a higher-risk, smaller company that is trying to establish a niche for itself internationally. We therefore would recommend Anpario as a 'buy' for longer-term investors looking for an AIM company geared to agriculture."