Zambeef shares tipped by leading investor publication
Zambeef Products Plc has seen its share price on the London Stock Exchange (LSE) rise 30 percent in two days after the company was designated “Tip of the Week” by leading investment magazine Investors Chronicle.
Zambeef, Zambia’s largest integrated agribusiness, is one of more than 3,000 companies listed on the LSE’s Alternative Investment Market (AIM), yet it was singled out by the influential weekly publication as the being one of the most promising companies for investors to watch.
Under the headline “Zambeef's 44 percent discount to book value reeks of recovery upside”, the Investors Chronicleanalyst set out how the company’s shares are under-valued on the stock exchange when compared with the underlying value of the group’s assets.
The article referred to the praise lavished on the food producer for the success of its ‘farm-to-fork’ model, and last year’s accolade of Chief Executive Francis Grogan winning the Entrepreneur of the Year award at the All Africa Business Leaders Awards.
But it pointed out that the company’s drop in profits for the year to September 31, 2013, had prompted a fall in share price that 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 and the ability of its bosses to make the right deals for its success,” said Investors Chronicle.
The analysis, which included a “Buy” recommendation, helped fan investor interest, pushing the share price up 15 percent on Friday (January 3) from 34.75p to 40p, and up a further 13.75 percent on Monday afternoon to a high of around 45.50p.
“When Zambeef listed on the AIM Market of the London Stock Exchange in June 2011, it laid out an ambitious expansion plan which, in addition to the acquisition of Mpongwe Farm, included the complete upgrade of Zamanita’s plant and equipment and improvements in production facilities at Master Pork.
“During the course of 2011 and 2012, the Group made significant capital investment in order to achieve its objectives. I am pleased to report that the business generated a net cash inflow before financing of ZMW112 million (USD21 million), as the benefits of our recent investment began to show,” said Grogan.”
Zambeef, which is listed on both the London and Lusaka stock exchanges , saw revenue rise by 24 percent to K1,595 million 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 KK49.776 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.
Last month Zambeef was recognised by the Lusaka Stock Exchange for its leadership in corporate governance being named second runner-up in the annual awards ceremony.
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.
5 minutes with... Janthana Kaenprakhamroy, CEO, Tapoly
Founder and CEO of award-winning insurtech firm Tapoly, Janthana Kaenprakhamroy heads up Europe’s first on-demand insurance platform for the gig economy, winning industry awards, innovating in the digital insurance space, and leading with inclusivity.
Here, Business Chief talks to Janthana about her leadership style and skills.
What do you do, in a nutshell?
I’m founder and CEO of Tapoly, a digital MGA providing a full stack of commercial lines insurance specifically for SMEs and freelancers, as well as a SaaS solution to connect insurers with their distribution partners. We build bespoke, end-to-end platforms encompassing the whole customer journey, but can also integrate our APIs within existing systems. We were proud to win Insurance Provider of the Year at the British Small Business Awards 2018 and receive silver in the Insurtech category at the Efma & Accenture Innovation in Insurance Awards 2019.
How would you describe your leadership style?
I try to be as inclusive a leader as possible. I’m committed to creating space for everyone to shine. Many of the roles at Tapoly are performed by women and I speak at industry events to encourage more people to get involved in insurance/insurtech. Similarly, I always try to maintain a growth mindset. I think it’s important to retain values to support learning and development, like reliability, working hard and punctuality.
What’s the best leadership advice you’ve received?
Build your network and seek advice. As a leader, you need smart people around you to help you grow your business. It’s not about personally being the best, but being able to find resources and get help where needed.
How do you see leadership changing in a COVID world?
I think the pandemic has proven the importance of inclusive leadership so that everyone feels supported and valued. It’s also shown the importance of being flexible as a leader. We’ve had to remain adaptable to continue delivering high levels of customer service. This flexibility has also been important when supporting employees as everyone has had individual pressures to deal with during this time. Leaders should continue to embed this flexibility within their organisations moving forward.
They say ‘from every crisis comes opportunity’, what opportunities do you see?
The past year has been challenging, but it has also proven the importance of digital transformation in insurance. When working from home was required, it was much harder for insurers to adjust who had not embedded technology within their operating processes because they did not have data stored in the cloud and it caused communication delays with concerned customers at a time when this communication should have been a priority, which ultimately impacts the level of customer satisfaction. This demonstrates the importance of what we are trying to achieve at Tapoly in driving digitalisation in insurance and making communication between insurers and distribution partners seamless.
What advice would you give to your younger self just starting out in the industry?
Start sooner, don’t be afraid to take (calculated) risks and make sure you raise enough money to get you through the initial seed stage.