Creightons PLC Trading update - expected 2018 outturn (3668E)
09 February 2018 - 3:05AM
UK Regulatory
TIDMCRL
RNS Number : 3668E
Creightons PLC
08 February 2018
For Immediate Release 8 February 2018
Creightons plc Group
(the "Group" or "Creightons")
Trading update - expected 2018 outturn
The board of Creightons plc has undertaken a review of this
year's performance to date and concluded that sales growth for the
year is expected to remain positive at approximately 12%, driven by
an increased demand in all divisions of the business; owned brands,
contract manufacturing and private label.
Much of this growth in sales has arisen from significant and
unexpectedly higher order intake in the last few months. This has
resulted in demand out-pacing capacities in our factories ahead of
planned expansion in manufacturing capacities. Therefore, to ensure
consistent and uninterrupted supply to our customers the group has
outsourced supply of some branded products lines. This has impacted
upon the profit margins of these lines.
Therefore, the board has concluded that the full year profit
before tax is likely to be marginally lower than last year. Profit
after tax will also be impacted by the first full year of full
corporation tax charges on profits.
We are clear that the fundamentals of the business continue to
be sound and that order intake, product offering and quality remain
strong.
The sales growth is being addressed through accelerated capital
expenditure and upskilling in key operational functions to enable
the group to meet the increasing demand for our products and
enabling us to return to the higher returns previously
achieved.
The board remains confident that its previously stated
aspiration for growth through both acquisitions and expansion of
existing brands, markets, customers and operations remain
achievable. Therefore, at this stage we believe that taking account
of the interim dividend paid out earlier this year, the dividend
for this year will be in line with last year.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
For more information:
Nicholas O'Shea, Director, Creightons plc 01733 281000
Roland Cornish, Beaumont Cornish Limited 0207 628 3396
Approved for immediate release
NDJ O'Shea, Director
8 February 2018
This information is provided by RNS
The company news service from the London Stock Exchange
END
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