Recently, the group reported a strong set of results of with Revenue + 9% to R8 308 million, Operating profit up 21% to R1 399 million, Operating profit Africa operations up 22% to R975 million, Headline Earnings Per Share +15% to 628.4 cents while cash generated from operations improved to just over 2bn. Total dividends of 393 cents per share were paid. Driving the 9% increase in revenue was the group's operations being classified as an essential service provider in all geographies during the peak Covid-19 lockdown period with increased fishmeal sales, consistent supply and sustained demand for canned fish together with favourable pricing across most products which was further enhanced by the benefit of a weaker exchange rate. Operating costs remained well controlled during the year, supported by production efficiencies in the group's canneries and fishmeal operations, improved occupancies in the commercial cold storage business and further aided by the closure of under-performing operations in the prior year on export revenue. A defensive approach was adopted during the period, immediately introducing proactive measures to strengthen the balance sheet and optimise cashflow management including a reassessment of planned capital expenditure. Cash generation was strong while the group saw an improved cash balance of R1.2bn vs R588m during the prior period. At 628.4 cents, this places the share on 11x trailing earnings . We also note the share price trading at a forward price/earnings ratio of 9.12x, nearing the lower end of the 20-year valuation range. From a technical perspective, the share trades just above it's 200-day moving average and above the price pivot with higher lows in place over the short term which signals buyers continuing to be interested at higher levels. Provisional Levels | Buy Stop: 7223c, Stop-loss: 6644c. Targets: 8150c, 8699c.

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