Confident Cranswick sees revenues rise
REVENUE has risen at food producer Cranswick which says it remains confident in the continued long-term success and development of the business.
In a trading update for the three months to June 30 2014, the East Yorkshire-based business said trading so far in the current financial year has been in line with the board’s expectations, with revenue 5% ahead of the same period last year reflecting continued growth across most product categories.
During the period, the group has invested further in its asset base to increase capacity and improve efficiency. Work to extend the Delico cooked meats facility in Milton Keynes is, as planned, nearing completion. The project will provide more capacity to meet anticipated sales growth and the investment in advanced cooking and slicing technology will deliver increased throughput and enhanced yields. A major upgrade to the chilling system at the Norfolk primary processing facility will deliver similar benefits.
Net debt stood at £33m at end of June, £22m lower than the same point last year and compared to £17m at the end of March. The increase during the quarter reflects the usual seasonal uplift in working capital and the group’s on-going capital investment programme, Cranswick said. The group added that it is in a sound financial position, with committed, unsecured facilities of £120m which provide generous headroom going forward.
As previously announced Bernard Hoggarth will retire from the board at today’s AGM and John Worby will stand down from his position as a non-executive director. Mark Reckitt joined the board as a non-executive director in May and will take over from John Worby as chair of the Audit Committee.
Looking ahead, Cranswick said: “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.”
