22 June 1998
The advantages of being a PIC breeder

FARMERS who adopt pigs from the Pig Improvement Company (PIC) stand to gain up to a 450% return on their investment compared with a home-bred animal.

The Financial Times takes a close look at the company, the last remaining business of the former conglomerate Dalgety, which makes its debut on the London stock exchange today (Monday).

PIC has invested heavily in technology. The group employs more than 40 PhDs and spent £11 million on R&D last financial year.

It is rapidly expanding in emerging markets, including south-east Asia and eastern European countries.

PIC has been previously been labelled a well-hidden jewel. With its high-tech overtones and fast profits growth, a determined effort to attract US investors with the promise of a US listing, and the high takeover prices being paid for other breeding companies, PIC can expect a high rating when it lists today.

David Lang, an analyst with Henderson Crosthwaite, is forecasting profits for the next financial year of £30m and earnings of 6p, giving a multiple of 30.

One institutional investor is quoted as saying: “a year ago things looked dismal. So we are very pleased by what has happened. Equally we are excited by what will remain.”

  • Financial Times 22/06/98 page 28