Trading Statement

RNS Number : 1231U

Cranswick PLC

05 April 2016

 

05 April 2016

Cranswick plc

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

Trading statement for the year ended 31 March 2016

Cranswick, the UK food producer, today issues the following scheduled update on trading for the year ended 31 March 2016.  Cranswick expects to announce its full year results on 24 May 2016.

Current trading

Continued positive trading during the final quarter of the financial year resulted in total full year sales volumes being 12% higher than the previous year.  Full year underlying* sales volumes increased by 10%, with corresponding revenues ahead by 5%, as the Group's customers and UK consumers continued to benefit from lower pork prices.  Export sales grew strongly in the final quarter, maintaining the positive momentum seen in the previous nine months and reflecting the ongoing robust demand for pork products in Far Eastern markets.

Investment

The Group invested well in excess of £30 million across its asset base during the last financial year to support future growth and drive further operating efficiencies.  This level of investment is expected to continue through the current financial year.

Financial position

Strong cash generation from operating activities resulted in the Group moving into a net funds position at 31 March 2016.  This compared to net borrowings of £18 million at previous quarter end and £17 million reported at 31 March 2015.  The Group is in a strong financial position, with committed, unsecured facilities of £120 million which provide comfortable headroom.

Outlook

The Board continues to expect to report a trading performance for the year ended 31 March 2016 in line with its expectations.  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:

Cranswick plc	[phone]
Mark Bottomley, Finance Director
Powerscourt	[phone]
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 revenue excludes the contribution from Benson Park prior to the anniversary of its acquisition (22 October 2015) 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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