Cranswick predicts difficult year amid Brexit uncertainty

Cranswick said it expected the current year to be difficult as the food company reported a decrease in annual profit and highlighted uncertainty over Brexit.

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Adjusted pre-tax profit for the year to the end of March fell 0.4% to £92m as revenue declined 0.2% to £1.48bn. Reported pre-tax profit fell 2% to £86.5m.

The FTSE 250 company said the new financial year would be one of "more intense commercial challenges" and that its operating margin was expected to decline. Trading has been as expected and the company's expectations for the year are unchanged, it said.

Revenue and volumes fell as growth from poultry, sausages and continental products failed to make up for lower sales in other pork-related products. The company said it was monitoring Brexit's effect on availability and cost of labour, potential tariffs and the value of the pound.

Adam Couch, Cranswick's chief executive, said: "The last year was one of consolidation following three years of very strong growth. We delivered this year's results against a backdrop of highly competitive market conditions and ongoing, Brexit related, political and economic uncertainty."

Cranswick increased the final dividend by 3.6% to 40p a share taking the annual payout to 55.9p.

The company's shares rose 1.3% to 2,898p at 0920 BST.