6th Oct 2014 06:26
LONDON (Alliance News) - Cranswick PLC Monday said trading in the first half of the year has been in line with its expectations, with revenue in line with the year-earlier period as growth across most of its product categories offset lower sales of fresh pork.
In a trading update, the food and pet products producer said its markets remain competitive and operating margins in the six months to September 30 are expected to have been similar to the previous year as a whole.
Cranswick reported an adjusted operating margin of 5.4% for its last financial year, as a 4.9% first-half margin due to raw material price increases rebounded strongly to 5.8% in the second half. Its revenue in the first half of the last financial year was GBP483.5 million.
It said it has remained focused on operating efficiencies, product quality and innovation, while pig prices eased during the second quarter of the financial year and are now below the record highs seen at this time last year.
Work to extend the company's Delico cooked meats facility in Milton Keynes was completed on time and to budget, and a major upgrade to the chilling system at the Norfolk primary processing facility is nearing completion, it said. It said the works will provide more capacity to meet expected sales growth, and the new cooking and slicing technology installed at Delico will mean throughput is faster and yields improved.
Cranswick said net borrowings were down on the previous quarter end and well below those of a year ago, notwithstanding the on-going capital investment programme across the business.
"Market conditions through the second half of the year are expected to remain competitive, however with a strong Christmas trading period anticipated in the third quarter of the financial year, the group is well placed to deliver a full year performance that is in line with the board's expectations," the company said in a statement.
The company will announce its interim results on November 24.
By Steve McGrath; [email protected]; @stevemcgrath1
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