28th Jul 2014 08:32
LONDON (Alliance News) - UK food producer Cranswick PLC Monday said it has seen a good start to the new financial year, with revenue growth in the first quarter, while overall trading has been in line with expectations.
The UK pork products supplier reported revenue growth of 5% for the three months to June 30, as it continued to see growth across most of its product categories, especially its fresh pork, bacon and cooked-meat products.
"With... a strong range of products, a well invested asset base and a robust financial position, the board remains confident in the continued long term success and development of the business," Canswick said in its statement Monday.
In its last financial year, the group reported a 16% increase in pretax profit for the year ended March 31, driven by strong sales growth for it fresh pork, bacon and its cooked-meat products, supported by market share gains and new product development.
Cranswick said Monday that its operations in the first quarter of its new financial year held steady, while it has continued to invest in the business to increase capacity and improve efficiency, including work to extend the Delico cooked-meats facility in Milton Keynes, which it said is now near completion.
"The project will provide more capacity to meet anticipated sales growth, and the investment in advanced cooking and slicing technology will deliver increased throughput and enhanced yields. A major upgrade to the chilling system at the Norfolk primary processing facility will deliver similar benefits," the company said.
Cranswick said it held net debt of GBP33 million at the end of June 30 reflecting its on-going capital investment programme. The group said it is in a "sound financial position" and with committed, unsecured facilities of GBP120 million, has "generous headroom going forward".
"Margins have been steady, with pig prices following more normal patterns, and the group continues to deliver volume growth. The balance sheet remains in good shape to fund investment in existing assets or new assets should any acquisition opportunities arise," said Investec Securities analyst Nicola Mallard in a research note Monday.
Cranwsick shares were down 1.6% at 1,263.00 pence Monday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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