Cranswick boosted by sizzling Christmas and export sales

Cranswick, the Hull-based food producer, said trading during last year’s third quarter was ahead of expectations, boosted by strong Christmas and export sales.

The company said total and like-for-like revenue for the three months to the end of December were both ahead of the prior year with each of its divisions delivering positive volume growth.

Cranswick said it continues to invest at “record levels” across its asset base to increase capacity, add new capability and drive further operating efficiencies.

Construction of the new continental products facility, based at Bury in Lancashire, is well advanced and progressing to plan, with completion expected in the first half of the next financial year.

When finished, the site will consolidate production from the group’s two existing continental products facilities, lift capacity by approximately 70%, add new capability and drive efficiency improvements on existing product ranges, the company said.

Plans for the new primary poultry facility in Eye, 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.

During the period, the group extended its banking facility for a further 12 months on existing terms.  The agreement, which now extends to November 2022 with the potential to extend for a further year, comprises a revolving credit facility of £160m,, including a committed overdraft of £20m.

“This unsecured facility supports the group’s sound financial position and provides significant headroom for future growth,” said Cranswick.

The company added: “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.”