Hilton Foods churns out meaty update

Western Europe was said to have delivered good growth in the period since 18 July, particularly in the UK's expanded facilities.

Though Holland remained relatively flat and conditions in Denmark remain challenging, Sweden provided an encouraging cost performance and Central Europe was in line with our expectations with most growth in Poland and Hungary.

The Australian joint venture has made "excellent progress" with the volume at the new Melbourne plant continuing to build over the third quarter.

House broker Numis made two main points. First, that H1 volume for the UK was +10% but will inevitably record a lower rate of growth in H2 given the likely lapping for some of the period of the 'full bore' production run rate attained in late 2015, though countries like Denmark and Sweden have recovery scope in 2017 and management have good form at progressing aggregate volume.

Second, "in the very unlikely absence of new organic growth opportunities coming to fruition, net cash will carry on rising".