Interim Management Statement

RNS Number : 4214A

Cranswick PLC

31 January 2011

 



1 February 2011

Cranswick plc ("Cranswick" or "the Company") - third quarter interim management statement

The three months to 31 December 2010 continued the positive trading performance seen in the first half of the year.

Underlying like-for-like sales increased by 5 per cent during the quarter, showing a slight increase on the rate of growth seen in the first half of the year. Volumes were ahead by 10 per cent on the same basis. Total sales for the third quarter were in line with those of the same period last year reflecting business transferred to the Farmers Boy (Deeside) Limited joint venture.

Overall operating margin was in line with management's expectations.

During the period, the new abattoir at the Company's primary pork processing site and the extension to the Lazenby's sausage facility, both in Hull, were completed and commissioning work continues at the Group's air-dried bacon facility at Sherburn-in-Elmet, near Leeds. These facilities provide the Company with substantial additional capacity and the potential to deliver on-going efficiency improvements.

Following the expected seasonal uplift in working capital and significant capital expenditure, net debt increased from £42 million to £54 million during the quarter, but was comfortably below the previous year's level of £67 million reflecting the strong cash generative nature of the business.

On 31 January the Company further strengthened its asset base by acquiring, for £7.3 million, the premises at Wombwell, near Barnsley, one of the Group's cooked meats facilities.

With experienced management throughout the Group and a well invested asset base, the Board, whilst mindful of the challenges facing the consumer this year, remains confident in the continued successful long term development of the business.

Enquiries:

Paul Quade                                                                          07947 186694

CityRoad Communications                                               020 7248 8010

Notes:

1.     Cranswick's activities are focused within the UK and include the processing and supply of fresh pork, sausage, bacon, cooked meats, charcuterie and sandwiches.  Products are primarily supplied into the UK food retail, food service and food manufacturing sectors.  Results for the year to 31 March 2010 showed sales of £740m and profit before tax of £43.8m.

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

3.     This announcement represents Cranswick's third quarter Interim Management Statement for the period from 1 October 2010 to 31 January 2011.

4.     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.

 

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