TIDMKITW
RNS Number : 6523T
Kitwave Group PLC
26 November 2021
26 November 2021
Kitwave Group plc
("Kitwave", the "Group" or the "Company")
Trading Update and Board Appointment
Kitwave Group plc (AIM: KITW), the independent, delivered
wholesale business, today announces a pre-close trading update for
the year ended 31 October 2021.
Trading update
Following the easing of COVID-19 restrictions and the return to
stronger trading in the second half of the year, as is usual with
the seasonal nature of the business, the Board is pleased to
confirm the Group traded ahead of revenue expectations in H2, with
volumes in most business segments returning to pre-pandemic levels.
This has resulted in adjusted operating profit being significantly
ahead of expectations which had been cautious due to the timing
uncertainty of COVID-19 restrictions being lifted.
While many of the Group's industry peers have been impacted by
HGV driver issues, Kitwave's in-house established fleet of c. 400
delivery vehicles and drivers means the Group is not dependent on
third party logistics providers and enabled operations to continue
as normal. The strong relationships with the Group's large network
of brand suppliers has ensured supply chain issues have been kept
to a minimum with substitute products available and high customer
service levels maintained.
Over the last few months the Group has seen the first signs of
inflation in its cost base. Through the key initiatives outlined
below and the recognition of elements of these costs in customer
pricing, the Board does not expect profitability to be adversely
affected. This is not a new phenomenon and one with which the Group
has dealt with successfully on many occasions in its 35-year
history.
Work is progressing on the Group's new warehouse in Wakefield,
which will ensure the Group is well placed to meet future growth
expectations in its foodservice division. The warehouse is expected
to open in Q1 2022.
In line with the Company's strategy to drive growth organically
as well as through acquisition, management continues to focus on
implementing key initiatives, with the development of cross selling
opportunities and strengthening the market perception of the
Group's brands underway.
The Group's balance sheet and liquidity remain strong and
provide the Group with the opportunity to continue to both grow
organically and capitalise on the fragmented nature of the UK
grocery and foodservice wholesale market through the acquisition of
smaller regional competitors.
Board appointment
The Group is also pleased to announce the appointment of Ben
Maxted, Group Operations Director, Head of the Frozen and Chilled
division, to the Kitwave Board as Chief Operating Officer with
immediate effect.
Ben joined the Group in 2011 as the divisional Finance Director
of the Automatic Retailing operation, a role which he held for
three years before his appointment as Managing Director of Eden
Farm, following its acquisition by the Group in 2014. Ben is a
Chartered Accountant, having trained at PricewaterhouseCoopers,
where he spent three years in their Corporate Finance division.
Further information in relation to Ben's appointment is detailed
below.
Paul Young, Chief Executive Officer of Kitwave, commented:
"I am pleased to report strong trading in the second half of the
year, not only driven by the seasonal nature of our business but
also due to the easing of COVID-19 restrictions. As a result, the
Group expects to report a profit before tax for the year to 31
October 2021 that is significantly ahead of expectations.
"As we enter the new financial year, the outlook for the Group
remains positive. Assuming no further national lockdowns or
disruptions to the leisure and hospitality sectors, trading in the
foodservice division should continue to recover and we expect will
return to or exceed pre-pandemic levels. Initiatives are in the
process of being implemented to drive organic growth throughout the
Group, while the Board continues to review opportunities for
acquisition that fit with its search criteria.
"On behalf of the Directors, I would also like to welcome Ben to
the Board. Ben has made a valuable contribution to the Group since
joining in 2011 and we look forward to having the benefit of his
strong operational and commercial expertise on the Board as Kitwave
pursues the next phase of its growth.
"We are highly encouraged by the performance of the Group in the
period since the IPO and look forward to keeping the market updated
on our progress."
- Ends-
Pursuant to Schedule 2(g) of the AIM Rules, the Company
discloses the following details in relation to Mr Maxted's
appointment:
Mr Benjamin John Maxted, aged 37, holds and has previously held
the following directorships within the last 5 years:
Current Directorships Former Directorships (in the
last 5 years)
Alpine Fine Foods Limited Eden Farms (Frozen Foods) Limited
Central Supplies (Brierley Frozone Foods Limited
Hill) Ltd Hulley's (Frozen Confectionery)
The Morpeth Golf Club Limited
Limited
Eden Farm Limited
David Miller Frozen Foods
Limited
Mas Frozen Foods Limited
Phoenix Fine Foods Limited
Angelbell Limited
Kitwave Limited
----------------------------------
Companies that went into liquidation or administration whilst
Ben Maxted was a director:
Do Well Recycling Limited appointed voluntary liquidators on 16
January 2012 and was dissolved on 3 April 2014.
There is no further information to be disclosed in relation to
Ben Maxted's appointment pursuant to AIM Rule 17 or paragraph (g)
of Schedule Two of the AIM Rules for Companies.
For further information please contact:
Kitwave Group plc Tel: +44 (0) 191 259 2277
Paul Young, Chief Executive Officer
David Brind, Chief Financial Officer
www.kitwave.co.uk
Canaccord Genuity Limited Tel: +44 (0) 20 7523 8150
(Nominated Adviser and Sole Broker)
Bobbie Hilliam
Georgina McCooke
Alex Aylen - Sales
Yellow Jersey PR Tel: +44 (0) 20 3004 9512
(Financial media and PR)
Sarah Hollins
Henry Wilkinson
Matthew McHale
Company Overview
Founded in 1987, following the acquisition of a single-site
confectionery wholesale business based in North Shields, United
Kingdom, Kitwave is an independent, delivered wholesale business,
specialising in selling and delivering impulse products, frozen and
chilled foods, alcohol, groceries and tobacco to approximately
38,000, mainly independent, customers.
With a network of 26 depots, Kitwave is able to support delivery
throughout the UK to a diverse customer base, which includes
independent convenience retailers, leisure outlets, vending machine
operators, foodservice providers and other wholesalers, as well as
leading national retailers.
The Group's growth to date has been achieved both organically
and through a strategy of acquiring smaller, predominantly
family-owned, complementary businesses in the fragmented UK grocery
and foodservice wholesale market.
Kitwave Group plc (AIM: KITW) was admitted to trading on AIM of
the London Stock Exchange on 24 May 2021.
For further information, please visit www.kitwave.co.uk .
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END
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