JOIN DRIVERN TAXI AS PARTNER DRIVER TODAY!
ZAMBEEF Products Plc shares on the London Stock Exchange’s Alternative Investment Market (AIM) recorded a 30 percent rise after leading investment magazine, Investors Chronicle profiled the company.
Zambeef Products Plc said the analysis in the publication, under the headline “Zambeef’s 44 percent discount to book value reeks of recovery upside” and included a “buy” recommendation, attracted investors, pushing the share price up 15 percent on January 3, 2014 from 34.75 percent to 40 percent.
It also recorded a further 13.75 percent on Monday afternoon to a high of around 45.50 percent.
This is according to a statement issued by Langmead & Baker Limited in Lusaka yesterday.
The Investors Chronicle notes that the company’s drop in profits for the year to September 31, 2013, that prompted a fall in share price also meant the company’s shares were now good value for investors to buy, and have potential to rise further.
“It is clear that the chief causes for the failure of 2012-13’s profits to meet city expectations were one-off and equally clear that Zambeef has much going for it; not just that vertically integrated model, but its potential to grow on the back of Zambia’s march out of poverty,” said Investors Chronicle.
Zambeef, which is listed on both the London AIM and Lusaka Stock Exchange saw revenue rise by 24 percent to K1.59 billion during its last financial year, with gross profit up by a similar percentage to K553 million.
Edible oils accounted for the strongest gross profit growth across the company’s divisions, more than doubling during the year to K49.77 million.
Cropping also saw strong growth, with a 49 percent increase in gross profit to K154 million during the year, while the group’s Novatek stockfeed business was up 21 percent to K48.85 million.
Investor confidence in Zambeef has grown steadily over the years, endorsed most recently by Templeton Asset Management, one of the world’s leading fund management groups, which increased its shareholding in Zambeef last month to bring its total holding to 5.11 percent of the issued share capital of the company.
