Kitwave FY results seen in line with expectations

Wholesale business Kitwave Group said on Monday that its full-year financial results were forecast to be in line with current market expectations.

Following a "strong" performance in the first half, Kitwave said positive momentum had continued across all of its divisions and while it acknowledged "the prevailing macroeconomic landscape", the group remains confident in its ability to utilise its "extensive experience" to mitigate these risks effectively.

The AIM-listed company said the integration of West Country Food Holdings had been successful and that the business was performing in line with management expectations, with the construction of a new 80,000-square-foot distribution centre eyed for completion in Autumn 2024.

Kitwave also said that that its web-based trading platform, launched in 2022, had demonstrated "excellent" results in terms of brand partner and customer engagement, with utilisation of the platform increasing each month and resulting in online order capture standing at 47% for the three months to September.

Chief executive Paul Young said: "I am delighted to report that Kitwave continued to perform strongly both financially and operationally in the financial year ended 31 October 2023. Given that trading in the wholesale sector is typically stronger in H2 of our financial year, we capitalised on the positive momentum from H1 2023 and anticipate being in line with current market expectations for the full year.

"We are particularly pleased with the excellent performance of West Country Food Holdings since its integration into the group earlier this year enabling Kitwave to now offer high-quality fresh produce across the South West."

As of 1105 GMT, Kitwave shares were down 1.94% at 259.85p.

Reporting by Iain Gilbert at Sharecast.com