Q3 Interim Management Statement

RNS Number : 3506W

Cranswick PLC

30 January 2012

 



30 January 2012

Cranswick plc

("Cranswick" or "the Company" or "the Group")

Third quarter interim management statement

Cranswick, the UK food producer, today provides an update on trading for the period from 1 October 2011 to 29 January 2012.

Current trading

The Company benefited from a strong sales performance in the three months to 31 December 2011.

Sales for the quarter increased by 10 per cent on the same period last year, building on the momentum established in the first half. Sales growth in the quarter of bacon and fresh pork products was particularly strong and there were positive contributions from all other categories.  Export sales remained buoyant and sales of pastry products continued to show pleasing progress.

As previously reported, pig meat products continue to gain an increased share of the UK retail protein market. Recent market data highlighted a further acceleration in this gain over the Christmas trading period. Both the versatility and the low relative price of pork to other proteins are key to this positive trend.  The growing popularity of pork products continues to be a contributory factor in the increase in sales at Cranswick.

There was some recovery in operating margin in the third quarter from that reported in the first half, although for the year to date it remains below that achieved in the comparable period last year.

Financial position

Following the expected seasonal increase in working capital, the substantial uplift in sales and on-going capital expenditure, net debt increased from £48 million to £59 million during the quarter. The operating cash outflow in the period was in line with last year.  The Group is in a strong financial position, with committed, unsecured facilities of £100 million which provide generous headroom going forward.

Outlook

The business has a well invested asset base, loyal and skilled teams, a great range of products and a strong financial position.  Good progress has been made following the challenges of the first half and the Board looks forward positively to the rest of the year and the long term development of Cranswick.

Enquiries:

CityRoad Communications                                     [phone]

Paul Quade                                                                   [phone]

Notes:

1.     Cranswick's activities are focused within the UK and include the processing and supply of fresh pork, sausage, bacon, cooked meats, charcuterie, pastry products and sandwiches.  Products are primarily supplied into the UK food retail, food service and food manufacturing sectors.  Results for the year to 31 March 2011 showed sales of £758m and profit before tax of £47.1m.

2.     This announcement is based on information sourced from unaudited management accounts.

3.     This announcement represents Cranswick's third quarter Interim Management Statement for the period from 1 October 2011 to 29 January 2012.

4.     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.

 

END

 

 

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