IHT-friendly shares have not done well but China’s demand for meat will protect this company

Higher input costs and higher prices were not enough to offset the disappointments. Their effects were amplified by time delays. This means that gross margins fell eight percentage points to 42%. However, margins have improved in both the first and second half of the year.

Some of the customers were also facing financial difficulties due to inflation, which resulted in a drop in demand for its products. As China’s Covid-free policyThe first half of the year was a significant drag on sales.

But the company’s net cash position of around £13m indicates that it has the financial strength to weather any further difficulties arising from the poor economic outlook. It also allows for acquisitions at low asset prices. The company has kept overhead costs low and its geographical spread means that it is not dependent on any single region for all its sales.

Anpario’s financial performance should improve over the long-term due to rising demand for meat products in emerging markets and a shift towards natural animal feed additives.

Since June 2018, when we added them to our IHT portfolio, their shares have been flat. Despite recent declines, they continue trading at a high valuation of 21 times adjusted earnings. It is still a valuable asset, thanks to its sound business model and the potential to profit from the global economic recovery. Catch.

Questor says: hold

Tape: ANP

Stock price at closing 480px

Update: Team17

While Team17 shares have dropped by 42% this past year, they remain 54% higher than when they were included in Questor’s IHT Portfolio.

Recent semi-annual results from the company show that it is making solid steps towards executing its strategy. Sales increased by 33% to a record level, while gross profit rose by 26%.

StoryToys’ kids app has seen its active paying subscribers increase from 130,000 to 250,000 in the past year. The company also has additional growth potential due to its long-term partnership agreement with Lego. It also acquired several companies during the first half. The company stated that it expects to deliver full year performance, weighted through the second half, based on a strong pipeline of new issues.

Evidently, consumer confidence has declined The cost of living crisisIt is unlikely that this will result in the growth of consumer-focused firms. This could mean that stock prices will continue to fall in the short-term. But Team17’s net cash of £51m leaves it well positioned to tackle short-term challenges and capitalize on the eventual economic recovery while creating room for further acquisitions and investment over the coming months.

Team17 shares trade at 19 times expected earnings. This is not cheap. Its strong growth record, healthy finances and pipeline of new issues continue to earn it a place in our IHT portfolio.

Questor says: hold

Tape: TM17

The closing share price was 436 pence

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