Cranswick PLC Third Quarter Trading Statement (4284D)
January 29 2015 - 2:01AM
UK Regulatory
TIDMCWK
RNS Number : 4284D
Cranswick PLC
29 January 2015
29 January 2015
Cranswick plc
("Cranswick" or "the Company" or "the Group")
Third quarter trading statement
Cranswick, the UK food producer, today provides a trading update
for the 3 months to 31 December 2014.
Current trading
Trading during the 3(rd) quarter of the financial year was in
line with the Board's expectations.
Christmas trading was strong, with December total and underlying
sales well ahead year on year. Total sales for the quarter were
marginally ahead of the same period last year. Underlying sales
volumes, excluding the contribution from Benson Park, which was
acquired on 22 October 2014, improved by 2 per cent as fresh pork
returned to growth in the third quarter. Underlying revenues were
down 3 per cent as lower input prices were passed through to the
Group's customers. Export sales continued to gain momentum with
sales to non-European markets up 38 per cent compared to the same
quarter last year.
The markets in which Cranswick operates continue to be
competitive, but the Group remains focused on delivering innovative
products of the highest quality and exceptional service levels to
its customers.
The integration of Benson Park is progressing to plan and
performance of the business to date has been in line with the
Board's expectations. Further capital investment, which was planned
for at the time of the acquisition, will be completed during the
next financial year. This investment will create substantial
additional capacity as well as enabling the business to offer a
broader product range and further improve operating
efficiencies.
Financial position
Following the expected seasonal increase in working capital, the
acquisition of Benson Park and on-going capital expenditure, net
debt increased from GBP22 million to GBP57 million during the
quarter, with the operating cash outflow following a similar
pattern to previous years. Notwithstanding the investment in Benson
Park, net debt was only GBP2 million higher than at the equivalent
quarter end last year. The Group is in a strong financial position,
with committed, unsecured facilities of GBP120 million which
provide comfortable headroom going forward.
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 both the current
financial year and the continued long term success and development
of the business.
Enquiries:
Cranswick plc 01482 372 000
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Mark Bottomley, Finance
Director
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Powerscourt 020 7250 1446
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Nick Dibden / Sophie Moate
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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 2014 showed
revenues of GBP995m and profit before tax of GBP54.8m.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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