Anpario Plc (LON:ANP) saw its shares fall on Tuesday as the international producer of natural feed additives for animal health, hygiene and nutrition reported a reduction in full-year sales growth as expected.
In a brief pre-close season trading update, the AIM-listed group said its sales growth was reduced by the factors reported at the interim stage, including African Swine Flu in China and challenging trading in the Middle East and Latin America.
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However, the firm said it still expects to announce trading in line with market expectations for the year ended 31 December 2018 on 6 March 2019.
The company added that costs have been closely managed without impeding strategic development plans.
Anpario noted that continuing 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.
It also said its balance sheet remains strong with cash balances of £12.9m at the year-end, down slightly from £13.6mln a year earlier.
In late morning trading, Anpario shares were 4.4% lower at 330p, albeit off earlier session lows of 310p..
In a note to clients, analysts at Peel Hunt maintained a ‘hold’ rating on Anpario while cutting their target price for the shares to 375p from 425p.
They said: “We are taking a more cautious view on the current year as some of the sales headwinds (particularly ASF) are likely to persist.
“As a result, we are reducing our forecasts by c8%, albeit we still expect Anpario to deliver profit growth.”
-- Adds analyst comment, updates share price --