Christmas makes for a bumper quarter at Cranswick

The FTSE 250 food producer said trading during the quarter was in line with the board's expectations, with total revenue in the three months to 31 December 5% ahead of the previous year.

Cranswick said this was driven by strong volume growth of 11%, and underpinned by a good Christmas trading period, which the group had anticipated.

Underlying revenue was 4% higher than the same period a year earlier, with the corresponding volumes up 10% as the benefit of falling input prices was passed on to the group's customers.

Cranswick's export sales grew strongly, it said, with volumes shipped to the Far East up 28% on the same quarter in 2014.

The group's net debt increased from £5m to £18m during the quarter, with the board pointing to the seasonal increase in working capital and ongoing capital expenditure as being behind the rise.

"[Net debt remains] well below the £57m reported at the same stage last year," the board said in a statement.

"The group is in a sound financial position with committed, unsecured facilities of £120m, providing significant headroom," they added.

Cranswick said it expected market conditions to remain competitive through the remainder of the financial year.

"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 remains confident in the continued long-term success and development of the business," the board concluded.