Trading update - expected 2018 outturn
For Immediate Release 8 February 2018
Creightons plc Group
(the "Group" or "Creightons")
Trading update - expected 2018 outturn
The board of Creightons plc has undertaken a review of this year's performance to date and concluded that sales growth for the year is expected to remain positive at approximately 12%, driven by an increased demand in all divisions of the business; owned brands, contract manufacturing and private label.
Much of this growth in sales has arisen from significant and unexpectedly higher order intake in the last few months. This has resulted in demand out-pacing capacities in our factories ahead of planned expansion in manufacturing capacities. Therefore, to ensure consistent and uninterrupted supply to our customers the group has outsourced supply of some branded products lines. This has impacted upon the profit margins of these lines.
Therefore, the board has concluded that the full year profit before tax is likely to be marginally lower than last year. Profit after tax will also be impacted by the first full year of full corporation tax charges on profits.
We are clear that the fundamentals of the business continue to be sound and that order intake, product offering and quality remain strong.
The sales growth is being addressed through accelerated capital expenditure and upskilling in key operational functions to enable the group to meet the increasing demand for our products and enabling us to return to the higher returns previously achieved.
The board remains confident that its previously stated aspiration for growth through both acquisitions and expansion of existing brands, markets, customers and operations remain achievable. Therefore, at this stage we believe that taking account of the interim dividend paid out earlier this year, the dividend for this year will be in line with last year.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014
For more information:
Nicholas O'Shea, Director, Creightons plc 01733 281000
Roland Cornish, Beaumont Cornish Limited 0207 628 3396
Approved for immediate release
NDJ O'Shea, Director
8 February 2018
This information is provided by RNS
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