26th Jun 2014 12:27
(An article published at 1211 BST misstated one of the sales growth periods. The correct version follows.)
LONDON (Alliance News) - Meat retailer Crawshaw Group PLC saw its shares rise sharply Thursday after it said like-for-like sales are up more than 13% in the year-to-date, with the strong growth widely spread across its store portfolio, and it is now planning to expand across the UK.
Crawshaw shares were trading 12% higher Thursday midday at 57.79 pence.
In a upbeat statement ahead of its annual general meeting, Crawshaw said that the like-for-like sales growth performance so far in its current financial year was particularly strong given that sales were up 8% in May and June last year.
The company's financial year ends at the end of January.
It said its new reduced-cost store fit out has also worked out well.
"The board are now working on a plan to greatly accelerate our store roll out, and to build a national network of stores. Having proven our retail model in the North of England, we believe we are ready to take the concept across the UK," said Chairman Richard Rose in a statement.
Last month, the company announced that it had bought East Yorkshire Beef Ltd, a business which operates a high-end butchers shop, and a move which it said gives it foothold in a completely different part of the market, the premium sector.
Crawshaw said in its statement Thursday that it has signed a 10-year lease agreement on a factory and distribution centre in Rotherham, with bigger space and additional capacity. It said it will consolidate its two existing sites in Grimsby and Rotherham into the new facility.
"Running costs are expected to be slightly less than our current set up, and we will open a factory shop on the site which we expect to trade well given the performance of our existing out of town store in Scunthorpe," said Rose.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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