Cranswick PLC Third quarter trading statement (3092P)
07 February 2019 - 6:00PM
UK Regulatory
TIDMCWK
RNS Number : 3092P
Cranswick PLC
07 February 2019
7 February 2019
Cranswick plc
("Cranswick" or "the Company" or "the Group")
Third quarter trading statement
Cranswick, a leading UK food producer, today provides an update
on trading for the three months to 31 December 2018.
Current trading
As expected, revenue for the quarter was 2 per cent lower
compared to the equivalent 13-week period in the previous financial
year. Strong growth in poultry and continental products was offset
by lower sales from other, pork related, categories.
The UK pig price continued to ease during the period, ending the
quarter 7 per cent lower than at the same stage last year. This
downward trend is being reflected in selling prices.
Performance over the festive period was robust, reflecting a
well-executed Christmas plan, strong cost control and operational
efficiencies.
Investment
The Group continues to invest at record levels across its asset
base to increase capacity, add new capability and drive further
operating efficiencies, whilst maintaining industry leading
standards at all its facilities.
Construction of the Group's new poultry processing facility in
Eye, Suffolk, is continuing to plan with the exterior building
works nearing completion and commissioning anticipated towards the
end of the next financial year as previously indicated.
We are pleased to report that the Group has agreed a long-term
supply agreement with Wm Morrison Supermarkets plc to supply fresh
poultry from the new Eye facility. We will also shortly start
supplying the same customer with a range of cooked poultry products
from our added value poultry facility in Hull.
Financial position
Net debt increased during the quarter, reflecting the customary
seasonal increase in working capital and ongoing expenditure on
capital projects, and ended the period in line with the same stage
last year.
The Group's borrowings continue to be managed conservatively
with committed, unsecured facilities of GBP160 million providing
considerable headroom to support the Group's growth strategy.
Outlook
The Board's expectations for the Group's trading performance in
the current year are unchanged.
For the following financial year, the Group's operating margin
is likely to decline, reflecting the potentially challenging
commercial landscape, together with start-up and commissioning
costs associated with the new Eye Facility, only partly offset by
management actions.
Notwithstanding these short-term challenges, our new Eye and
existing added value, poultry facilities and our broadening
customer base, provide a solid platform to further develop our
poultry business and drive future growth in this attractive and
expanding protein category.
The Board is confident that continued focus on the strengths of
the Company, which include its long-standing customer
relationships, breadth and quality of products, robust financial
position and industry leading asset infrastructure, will support
the further successful development of the Group over the longer
term.
Preliminary results
The Company's next scheduled comment on trading will be the
preliminary results announcement on 21 May 2019.
Enquiries:
Cranswick plc 01482 275 000
Mark Bottomley, Finance Director
--------------------------------
Powerscourt 020 7250 1446
--------------------------------
Nick Dibden / Lisa Kavanagh cranswick@powerscourt-group.com
--------------------------------
Notes:
1. Cranswick's activities are focused within the UK and include
the processing and supply of fresh pork, sausage, bacon, cooked
meats, premium fresh and cooked poultry, charcuterie and pastry
products. Products are primarily supplied into the UK food retail,
food service and food manufacturing sectors. Results for the year
to 31 March 2018 showed revenue of GBP1,465m and profit before tax
of GBP88.0m.
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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