27th Nov 2018 08:41
LONDON (Alliance News) - Meat producer Cranswick PLC on Tuesday reported a rise in first half revenue and adjusted pretax profit despite uncertain domestic market conditions and softer pricing in key export markets.
For the six months to September-end, Cranswick recorded adjusted pretax profit of GBP44.8 million, up marginally from GBP44.4 million in the year ago period. Reported pretax profit was dented by movements in valuation of assets and totalled GBP42.6 million, down 4.3% from GBP44.5 million a year ago.
Revenue for the first half totalled GBP719.2 million, up 0.6% from GBP714.6 million a year ago. The company said strong revenue growth from poultry, sausages and continental products was offset by lower year-on-year revenue in other pork related categories, 2.6% fall in export revenue and softer pricing in Far Eastern markets.
Cranswick spent GBP41 million in the first half of the year to expand its operations for future growth. It commissioned a new GBP27 million continental products facility in Bury, Lancashire, and invested in agricultural operations and in construction of a GBP60 million poultry processing facility in Eye, Suffolk.
"The board is confident that continued focus on the strengths of the company, which include its long-standing customer relationships, breadth and quality of products, developing export channels and asset infrastructure, will support the delivery of its expectations for the current year and its further successful development over the longer term," said Chief Executive Adam Couch, adding that the company's capital investment programme remains firmly on track.
Cranswick lifted its interim dividend payment by 5.3% to 15.9 pence per share from 15.1 pence paid a year ago.
Shares in the company were trading 3.7% lower at 2,766.00 pence each on Tuesday morning.
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