Cranswick PLC
23 July 2004
Cranswick plc
The following statement on current trading will be made by Chairman Jim Bloom
at the Annual General Meeting at 11.30 this morning:
'The results for last financial year were pleasing given the number of
challenges
we faced:
• Profit before taxation and goodwill amortisation rose 7 per cent to
£21.2 million.
• Earnings per share before goodwill amortisation rose 5 per cent to 35.8
pence.
• The dividend was raised 10 per cent to 13.2 pence per share.
• Underlying cash generation continued to be strong.
The current financial year has started satisfactorily with first quarter results
in line with management's expectations. At the time of the preliminary results
announcement in May it was anticipated that the first half of the current
financial year would be adversely impacted by continuing higher raw material
prices in animal feed and lower sandwich sales. This has been the case so far.
Overall group sales increased by 9 per cent compared with the same quarter last
year. Food sales showed an increase of 12 per cent with fresh pork and sausage
showing particularly strong growth. Total agri sales showed an increase of 8%,
within this, as previously, internal sales were well up more than compensating
for reduced third party sales which were 6% down. The pet business recorded a
sales increase of 14 per cent.
We have made good progress on the construction of our new sausage factory in
Hull and our new pet food facility in Driffield, with both due for completion
later in the calendar year. Both these investments will add much needed extra
capacity as well as bring greater production efficiencies. In addition we have
purchased a second warehouse in Manchester for our continental foods business to
cater for anticipated major volume gains. The total cost including fitting it
out will be around £3 million. Consequently our borrowings are currently ahead
of the year-end figure but are expected to fall by 31st March 2005.
Unfortunately we experienced a serious fire at our sausage factory in Cottingham
in early June. No-one was injured but a large section of the building was
destroyed. We were quickly back into production in the part of the factory not
directly impacted by the fire and facilities elsewhere within the group were
converted to sausage production during the following week. The Company has
adequate insurance cover for both material damage and business interruption and
the profit impact is unlikely to be material.
I am pleased to announce the appointment of Patrick Farnsworth (56) as a
non-executive director of the Company with effect from 1 August 2004. Patrick is
currently the joint managing director of William Jackson & Son Limited, a long
established private company based in Hull with interests in food production and
in food retailing. In its most recent financial year it had sales of £193
million. In addition to his role at Jacksons, Patrick is chairman of Campden &
Chorleywood Food Research Association and a member of council of other food
industry organisations. We look forward to the contribution Patrick will bring
to the Company. The board of Cranswick will be appointing a further
non-executive director in due course who will fulfill the role of senior
independent director.
As has been previously announced I am standing down as Chairman at the end of
this meeting having been involved with the Company since its formation in the
early 1970's and having been Chairman since 1991. The Company is stronger than
it has ever been and I am leaving it in excellent hands. I shall continue to
follow its progress closely as a shareholder.
Enquiries:
Martin Davey - chief executive )
) 01377 270649 (to 10.30am)
John Lindop - finance director )
This information is provided by RNS
The company news service from the London Stock Exchange
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