Total underlying profit before tax and exceptional items increased to £2.1m (2010: £1.9m) from total revenues of £19.2m (2010: £21.6m).
Whilst overall gross profit was slightly lower at £5.8m (2010: £5.9m) gross margins improved as a result of the company’s strategy to focus on its higher value-add products and to exit low margin commodity type products supplied in the UK market.
The balance sheet remains strong and debt free with a year-end cash balance of £4.4m (2010: £3.5m). It is expected that these funds will be applied to invest in the expansion of the business through acquisitions and £3m was utilised in March 2012 to fund the acquisition of Meriden Animal Health Limited.
Anpario chief executive David Bullen commented, “This has been another successful and most encouraging year for the Group. The performance is driven by two key factors: firstly the success of our strategy to reposition the UK business to focus on higher margin products; and secondly achieving the synergy benefits from the Optivite acquisition.”
“The results have demonstrated the strength of the Group’s broad geographic spread, which has enabled it to offset local issues in Middle Eastern and Southern European markets with strong performances in other territories. In addition we work closely with our national distributors, to minimise credit risk in those countries where there is financial or political concern.”
On 29 March 2012 the Company acquired 100% of the share capital of Meriden Animal Health Limited for a total consideration of up to £4.1m before costs. Meriden’s sales for the 12 months to December 2011 were £5.3m and adjusted profit before interest and tax was £0.7m.
Meriden’s Orego-Stim range of products, using essential oils, is the leading brand in its field and is marketed across 60 countries worldwide, with the majority of sales being outside the United Kingdom.
Meriden has a close and important partnership in China with sales accounting for 26% of Meriden’s total sales during 2011.