Cranswick enjoys 'encouraging' first quarter and confirms £43.5m acquisition

Cranswick said on Monday that first quarter trading was encouraging and in line with expectations as revenues were boosted by increased Chinese demand, while the business also confirmed a new acquisition.

The UK food producer reported that its overall revenue in the three months ended 30 June was 1.5% ahead of strong comparatives in the same period last year, with the strong demand from China coming after the widespread outbreak of African Swine Fever in the region.

Meanwhile, the FTSE 250-listed company confirmed that it has fully acquired Katsouris Brothers, a Continental and Mediterranean food products processor and supplier that operates from two facilities in Wembley, North London and employs approximately 250 people.

The £43.5m acquisition is expected to be modestly earnings enhancing in the current financial year, with Katsouris having achieved revenue of £68m and adjusted EBITDA of £6m in the year ended 30 June, according to unaudited results.

Other developments from the period include continued investment in a planned £75m poultry primary processing facility at Eye in Suffolk, which Cranswick said will more than double existing capacity, be the most technologically advanced and efficient poultry facility in the UK, and will incorporate the highest animal welfare standards.

"The outlook for the underlying business in the current financial year remains in line with management's expectations with the enlarged group expected to benefit from the acquisition of Katsouris Brothers, as detailed above. 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 board is confident in the continued long-term success and development of the business," said Cranswick.

Cranswick's shares were up 2.31% at 2,635.40p at 0813 BST.