Anpario PLC Full Year Trading Statement (0159M)
January 09 2023 - 1:00AM
UK Regulatory
TIDMANP
RNS Number : 0159M
Anpario PLC
09 January 2023
Anpario plc
("Anpario" or the "Group")
Full Year Trading Statement
Anpario, the independent manufacturer of natural sustainable
animal feed additives for health, nutrition and biosecurity,
provides the following trading update for the year ended 31
December 2022.
Trading update
The Group experienced a weaker than expected final quarter, and
in particular December's performance was adversely affected by
several factors including our Chinese subsidiary where customer
orders were impacted by the spread of Covid following the
relaxation of restrictions. Other factors included orders which
left the factory on time but were delayed at the port due to last
minute shipping schedule changes and therefore missed the statutory
cut-off period and certain other orders waiting for letters of
credit and import permits which are now expected in early 2023.
During the year the Group experienced significant headwinds
including raw material and logistics costs increases which reduced
our margins, although margins did improve in the second half. Our
customers have also been impacted by cost pressures, notably feed
and energy, which is hurting their profitability and, in some
cases, viability leading to reduced volumes of our products.
As previously announced in our interim report in September, the
Group had legal and professional costs in relation to specific
acquisition opportunities that did not proceed. For the full-year
results, due to the exceptional and non-recurring nature of these
costs, they will be excluded from our alternative profit measures
such as adjusted EBITDA.
As a result of these factors, and subject to audit, we expect
full year sales to be at least GBP33m and adjusted EBITDA(1) to be
not less than GBP5m.
We expect the global economy to continue to be challenging,
however, we are encouraged by the improvement in our gross margins
in recent months as a result of our actions to increase sales
prices and are experiencing an easing of raw material price
inflation, both of which are helping the Group to rebuild its
margins. We continue to invest in our global sales teams and
product development which will help deliver profitable growth of
the Group.
Financial position
Our financial position remains strong with year-end cash
balances of GBP13.6m (30 Jun 2022: GBP13.3m). Through the second
half of the year we increased cash by GBP0.3m, after GBP2.2m of
dividend payments and further capital investments. Global logistics
have been challenging over the past 18 months and in order to
ensure supply to our customers we built up contingency in our
inventory. However, the situation has started to improve and as
such we have been able to start to reduce our working capital
requirements and this process will continue into the new year.
Final results date
The Group expects to announce its final results for the year
ended 31 December 2022 on 22 March 2023.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Group's obligations under Article 17 of MAR.
(1) Adjusted EBITDA represents operating profit for the year
adjusted for: acquisition costs; share based payments and
associated costs; and depreciation, amortisation and impairment
charges.
Enquiries
Anpario plc
Richard Edwards, CEO +44(0)7776 417 129
Marc Wilson, Group Finance Director +44(0)1909 537 380
Peel Hunt LLP (NOMAD) +44(0)20 7418 8900
Adrian Trimmings
Andrew Clark
Lalit Bose
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END
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