Cranswick PLC Trading Statement (7979V)
February 02 2017 - 1:00AM
UK Regulatory
TIDMCWK
RNS Number : 7979V
Cranswick PLC
02 February 2017
2 February 2017
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 2016.
Current trading
Trading during the third quarter of the financial year was in
line with the Board's expectations.
Total and underlying revenue was well ahead of the prior year,
underpinned by strong volume growth and supported, as anticipated,
by a robust performance over the key Christmas trading period.
Export sales continued to grow strongly, with Far East revenues
well ahead of the same quarter last year, reflecting both ongoing
demand from the region and increased output from the Group's two
primary processing facilities.
Input costs rose further during the period, but efficiency
improvements, internal pig production and constructive pricing
discussions with customers helped partially mitigate the
impact.
Investment
As previously reported, the Group acquired Dunbia Ballymena, a
leading Northern Irish pork processing business on 16 November
2016. The business has performed in line with the Board's
expectations since acquisition and integration is proceeding to
plan.
Crown Chicken, which was acquired on 8 April 2016, continued to
contribute strongly during the period. The business is being
integrated successfully and is forging strong links with the
Group's premium cooked poultry and pig farming operations.
The Group continues to invest heavily across its asset base to
increase capacity, add new capability and drive further operating
efficiencies. Work has recently started on the new, purpose-built
continental products factory in Bury, Greater Manchester. This
substantial investment will consolidate the Group's two existing
facilities and provide additional capacity to support this high
growth category.
Financial position
During the period, the Group refinanced its banking facility on
improved terms. The new agreement, which runs to November 2021 with
the potential to extend for a further 2 years, comprises a
revolving credit facility of GBP160 million, including a committed
overdraft of GBP20 million. This unsecured facility supports the
Group's sound financial position and provides significant headroom
for future growth.
Net debt increased during the quarter and was above the level
reported at the same stage last year, reflecting the anticipated
seasonal increase in working capital, the acquisition of Dunbia
Ballymena and ongoing capital expenditure.
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 remainder of the current financial year and the continued
long term success and development of the business.
Preliminary results
The Company's next scheduled comment on trading will be the
preliminary results announcement on 23 May 2017.
Enquiries:
Cranswick plc 01482 372 000
----------------------------- --------------------------------
Mark Bottomley, Finance
Director
----------------------------- --------------------------------
Powerscourt 020 7250 1446
----------------------------- --------------------------------
Nick Dibden / Lisa Kavanagh 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 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 2016 showed revenue from continuing operations of
GBP1,016m and profit before tax on the same basis of GBP62.1m.
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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