Interim Management Statement

RNS Number : 2981K

Cranswick PLC

29 July 2013

 



29 July 2013

Cranswick plc

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

First quarter interim management statement

Cranswick, the UK food producer, today provides an update on trading for the period from 1 April 2013 to 28 July 2013.

Current trading

The current financial year has started in line with the Board's expectations.

Underlying turnover in the three months to 30 June 2013 was 10 per cent ahead of the same period last year reflecting strong growth across most product categories.

Total sales for the three months were 12 per cent higherafter taking into account the contribution from Kingston Foods which was acquired on 29 June 2012 and modest third party sales made by Wayland Farms Limited ("Wayland Farms"), formerly East Anglian Pigs Limited, which was acquired on 29 April 2013.

Operating margins in the first quarter were below those achieved during the previous financial year as a whole, reflecting higher input costs and, as was anticipated, start-up costs at the new pastry facility.

As expected, pig prices increased during the first quarter of the financial year and have increased further during July to a new record high.  The impact has been absorbed through on-going efficiency improvements and by the strong volumes processed through the Group's facilities.

The Group's gourmet pastry facility at Malton, North Yorkshire was completed during the period. The factory is now commissioned, enabling the Group to further develop its existing business by offering a broad range of premium savoury pastry products.

Work has also started on extending the Delico cooked meats facility in Milton Keynes.  The project will provide increased capacity to meet anticipated sales growth and the investment in advanced cooking and slicing technology will deliver increased throughput and improved yields.

Financial position

Net debt stood at £55 million at the quarter-end. This level was £17 million higher than at the same time last year and compared to £20 million at 31 March 2013. The increase during the quarter reflects the usual seasonal uplift in working capital, the Group's on-going capital investment programme and the £13 million investment in Wayland Farms.  The Group is in a sound financial position, with committed, unsecured facilities of £100 million which provide generous headroom going forward.

Board changes

As announced on 20 May 2013, Patrick Farnsworth will stand down from his position as Non-Executive Director at today's Annual General Meeting.  Kate Allum, CEO of First Milk Limited, joined the Board as a Non-Executive Director on 1 July 2013.  Kate brings operational experience of international food markets and broadens the expertise and experience within the Board.

Outlook

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.

Enquiries:

CityRoad Communications                                     [phone]

Paul Quade                                                                   [phone]

Notes:

1.     Cranswick's activities are focused within the UK and include the processing and supply of fresh pork, sausage, bacon, cooked meats, 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 2013 showed sales of £875m and profit before tax of £47.4m.

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

3.     This announcement represents Cranswick's first quarter Interim Management Statement for the period from 1 April 2013 to 28 July 2013.

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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