5 September 2018 – interim results
The international producer and distributor of natural animal feed additives has announced positive interim results for the six month period to 30 June. Although revenues were the same as the previous year at £14.8m, pre-tax profits increased by 19% to £2.2m (2017: £1.9m), whilst diluted earnings per share rose by 14% to 8.7p (2017: 7.6p). The interim dividend was raised by 10% to 2.2p (2017: 2.0p). Strong sales growth was recorded in the UK, Europe, China and the US although disappointing sales were seen in other parts of Asia and Latin America. Nevertheless, cash balances at the period end stood at £12.6m which leaves the group well placed for future expansion. The group is working closely with major partner distributors and also focusing on end users and these actions are helping to improve gross margins. Although the stock is hardly cheap the company continues to have excellent long-term prospects and we re-iterate our recommendation of LONG TERM BUY.