Cranswick PLC Trading statement & sale of sandwich business (0590F)
July 25 2016 - 2:00AM
UK Regulatory
TIDMCWK
RNS Number : 0590F
Cranswick PLC
25 July 2016
25 July 2016
Cranswick plc
("Cranswick" or "the Company" or "the Group")
First quarter trading statement and sale of sandwich
business
Cranswick, a leading UK food producer, today provides an update
on trading for the three months to 30 June 2016 and announces the
sale of its sandwich business.
Current trading
The Group has made a positive start to the current financial
year.
Revenue in the three months to 30 June 2016 was 11% ahead of the
same period last year, driven by strong volume growth.
Underlying revenue(*) was 5% higher than the same period last
year, with corresponding volumes up 12% as the benefit of lower
input prices continued to be passed on to the Group's customers.
Export volumes to Far Eastern markets were 60% ahead of the same
period last year, reflecting both ongoing robust demand from the
region and increased output from the Group's two primary processing
facilities.
Investment
The integration of Crown Chicken Limited ("Crown"), acquired in
April 2016, is progressing to plan with the business making a
positive contribution in line with the Board's expectations.
During the period, the Group continued to invest heavily across
its asset base to increase capacity, add new capability and drive
further operating efficiencies.
Financial position
Notwithstanding the GBP39 million spent on acquiring Crown
during the period and the substantial ongoing capital investment
programme across the Group, net debt stood at GBP22 million at 30
June 2016. This level was just GBP10 million higher than at the
same point last year and compared to GBP18 million of net funds at
31 March 2016. The Group is in a robust financial position, with
committed, unsecured facilities of GBP120 million which provide
comfortable headroom.
Sale of sandwich business
As part of Cranswick's strategy to focus on its core protein
businesses, the Board is pleased to announce the sale of the
Group's sandwich business, The Sandwich Factory Holdings Limited,
to Greencore plc for a cash consideration of GBP15 million. In the
year to 31 March 2016, the sandwich business generated revenues of
GBP54 million.
Adam Couch, CEO of Cranswick, commented:
"I am pleased to announce the sale of our sandwich business to
Greencore which is very much in line with our strategy of focusing
on our core protein businesses. Moreover I am particularly
delighted that the sandwich division is being acquired by a proven
global leader in Greencore who will bring new opportunities and
strengths to this business, its customers and the staff to whom, on
the Board's behalf, I would like to extend our thanks for their
long standing loyalty and commitment to Cranswick."
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 is confident in both the prospects
for the current financial year and the continued long term success
and development of the business.
Interim results
The Company's next scheduled comment on trading will be the
interim results announcement on 29 November 2016.
Enquiries:
Cranswick plc 01482 372 000
---------------------------- --------------------------------
Mark Bottomley, Finance
Director
---------------------------- --------------------------------
Powerscourt 020 7250 1446
---------------------------- --------------------------------
Nick Dibden / Sophie Moate cranswick@powerscourt-group.com
/ Samantha Trillwood
---------------------------- --------------------------------
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, 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 2016 showed revenues of GBP1,070m
and profit before tax of GBP58.7m.
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 Crown in the current year
This information is provided by RNS
The company news service from the London Stock Exchange
END
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