Cranswick third-quarter sales rise after strong Christmas trading

FTSE 250 food producer Cranswick said on Thursday that trading in the third quarter was “slightly” ahead of its expectations, with both total and like-for-like sales up on the previous year.

In a trading update for the three months to 31 December 2017, the company said each of its categories delivered positive volume growth, underpinned as expected by a strong performance over the key Christmas trading period, with total export sales also “well ahead”.

Cranswick said construction of the new continental products facility in Lancashire is well advanced and progressing to plan, with completion expected in the first half of the next financial year. Once finished, the site will consolidate production from the group's two existing continental products facilities, lift capacity by around 70%, add new capability and drive efficiency improvements on existing product ranges.

Meanwhile, plans for the new primary poultry facility in Suffolk continue to be developed, with construction, subject to receiving planning approval in the coming weeks, expected to begin in quarter one of the next 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 is confident in both the prospects for the remainder of the current financial year and the continued long-term success and development of the business,” it said.

At 0905 GMT, the shares were up 2.5% to 3,010p.