The Share Centre adds Anpario to its ‘buy' list

Graham Spooner, Investment Research Analyst at The Share Centre, explains why Anpario, a small AIM listed natural feed additives manufacturer, has been added to the ‘buy' list.
 
"Anpario are making significant headway in China; a country whose poultry and pig production is greater than Europe's output, posing a huge market in which to potentially expand.  In its April report, the group announced considerable rises in its Chinese subsidiary sales alongside strong growth in profitability from the Asia Pacific, Latin America and Middle East regions, offering prospective investors broad geographical diversification.
 
"Anpario is one of the few UK listed companies that gives investors opportunity to invest within the agricultural industry, and unusually (for such a small company) has a dividend yield of 1.8%. By focusing on high-end, value-added organic additive products Anpario is attempting to establish a niche for itself.
 
"The firm's geographic spread helps offset concerns regarding the European economy, and what's more, the company has no debt and its investments (Meriden and Optivite) have proven fruitful. That a rapidly growing global population and rising standards of living in developing countries are demanding an increase of meat and fish production should act as further assurance to investors, offering more potential growth.
 
"Anpario is a very small agricultural firm and there are therefore numerous risks involved, not least operating amongst many well established (and much larger) competitors, and so represents a ‘high risk' investment. However, with the potential for expansion, no debt, and its niche market, prospects are positive for the group."