Cranswick pleased with trading as investment programme rolls on

Food producer Cranswick updated the market on its trading for the three months to 30 June on Monday, reporting that trading in the first quarter of the financial year was in line with its expectations.

The FTSE 250 company said revenue in the three month period was 3.2% ahead of the same time last year, with positive contributions from each of its product categories.

Total export revenues were also modestly ahead of the same period last year.

“The UK pig price increased slightly during the period in line with the normal seasonal cycle, albeit the average price was lower than during the same period last year with the fall reflected in lower selling prices,” the board said in its statement.

On the investment front, Cranswick said it was continuing to invest “significantly” across its asset base to add capacity and capability and to ensure it could deliver “high quality” food products to its customers from “modern, well-invested and efficient” facilities.

During the period, it commissioned its new, purpose-built continental products factory in Bury, Greater Manchester.

The facility, which consolidated production from its two original continental products sites, apparently provided substantial additional capacity to support future growth.

Work also recently started on the company’s new poultry primary processing facility at Eye in Suffolk.

“This world class facility, which is scheduled for completion in late 2019, will double existing capacity with further room for expansion.

“The facility will incorporate the highest animal welfare standards and latest generation production techniques and equipment to drive operational efficiency gains.”

Looking at the books, Cranswick said that notwithstanding the “substantial” ongoing capital investment programme across the group, net funds stood at £8m at 30 June.

That compared to net debt of £18m at the same point last year, and net funds of £21m at 31 March.

The firm’s board said it was in a “robust” financial position with committed, unsecured facilities of £160m, which provided “comfortable” headroom.

“With experienced management at all levels of the group, a strong range of products, a well-invested asset base and a robust financial position, the outlook for the current financial year remains unchanged, and the board is confident in the continued long-term success and development of the business,” the directors said.

Cranswick said its next scheduled comment on trading would be its interim results announcement on 27 November.