Anpario trots lower as African swine flu harms sales growth

29th Jan 2019 08:56

(Sharecast News) - Anpario's shares trotted lower on Tuesday after the company reported a reduction in full-year sales growth as trading was hampered by African swine flu in China and "challenging trading" in the Middle East and Latin America.However, the maker of natural feed additives for animal health, hygiene and nutrition said that costs have been closely managed without impeding strategic development plans and so it still expects to announce trading in line with market expectations for the year ended 31 December 2018 on 6 March 2019.Sustained strong performances in the USA, Europe and Australasia, assisted by progressive market fundamentals and the benefits of development initiatives implemented this year, are expected to support a return to sales growth in 2019 for the AIM traded company.Anpario also said its balance sheet remains strong with cash balances of £12.9m at the year-end, down slightly from £13.6m reported at the same point a year earlier.A note from broker Peel Hunt said: "We are taking a more cautious view on the current year as some of the sales headwinds (particularly African swine flu) are likely to persist. As a result, we are reducing our forecasts by circa 8%, albeit we still expect Anpario to deliver profit growth."Anpario's shares were down 15.22% at 292.50p at 0841 GMT.