First Half Trading Statement

RNS Number : 7836A

Cranswick PLC

01 October 2015

 

1 October 2015

Cranswick plc

("Cranswick" or "the Company" or "the Group")

First half trading statement

Cranswick, the UK food producer, today provides an update on trading for the six months ended 30 September 2015.

First half performance

Revenues during the first half of the year were slightly ahead of the Board's expectations.

Total revenues in the six months to 30 September 2015 were 10% ahead of the same period last year, driven by strong volume growth across most product categories and a positive contribution from Benson Park.

Underlying sales^* were 7% higher than the same period last year, with corresponding volumes up 10% as the Group's customers and UK consumers continue to see the benefit of the Group's lower input prices.

Investment

The next phase of development at the Norfolk primary processing facility will start in quarter 3.  This £6 million investment will increase capacity and operating efficiencies as well as underpinning the plant's drive to gain USDA accreditation.

The major capital investment programme at Benson Park remains on track and will be commissioned ahead of the 2015 peak Christmas trading period. 

The Group continues to invest across its asset base to increase capacity and drive further operating efficiencies.

Financial position

Net borrowings were below the previous quarter end and comfortably lower than those of a year ago.  The Group is in a sound financial position with committed, unsecured facilities of £120 million, which provide comfortable headroom.

Outlook

Cranswick continues to work closely with its customers and to maintain its focus on service, quality and innovation to deliver exciting, competitively priced products in market conditions that are expected to remain competitive through the second half of the year.  This approach, allied to a broadening product portfolio and an anticipated strong Christmas trading period, means the business remains very well-placed to deliver further growth this financial year.   

With experienced management at all levels of the Group, a strong range of products, a well-invested asset base and a robust financial position, the Board remains confident in the continued long term success and development of the business.

The Company intends to announce its interim results on 30 November 2015.

Enquiries:

Cranswick plc	01482 372 000
Mark Bottomley, Finance Director
Powerscourt	020 7250 1446
Nick Dibden / Sophie Moate / Samantha Trillwood	[e-mail]

Notes:

1.     Cranswick's activities are focused within the UK and include the processing and supply of fresh pork, sausage, bacon, cooked meats, premium cooked poultry, charcuterie, pastry products and sandwiches.  Products are primarily supplied into the UK food retail, food service and food manufacturing sectors.  Results for the year to 31 March 2015 showed revenues of £1,003m and profit before tax of £52.8m.

2.     This announcement is based on information sourced from unaudited management accounts.

3.     This announcement contains certain forward looking statements with respect to the financial conditions, results of operations and businesses of Cranswick. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements. Nothing in this announcement should be construed as a profit forecast.

*      Underlying sales exclude the contribution from Benson Park in the current year and sales from the pig breeding, rearing and trading activities in both the current and prior financial years

 

END

 

 

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