Shares reach all-time high for Cranswick
CRANSWICK’s share price reached an all-time high on the back of strong interim results and a buy recommendation from N+1 Singer.
The Hull-based meat producer closed nearly 6% higher, at 1797p, as it sailed 37p higher than its previous peak. Its market capitalisation came within touching distance of £900m, up by more than £200m since the start of 2015.
It has enjoyed a sustained rise over the last three years, gaining 1000p in the last 1100 days.
Cranswick reported a 10% increase in half-year revenues to £529m, which generated pre-tax profits of £25.8m.
Cranswick’s share price, November 2012 – November 2015 (source: Google Finance )
N+1 Singer described the figures as a “crackling set of interims” as it raised its recommendation from hold to buy.
It said: “Cranswick has delivered a strong set of interims this morning with strong LFL’s and a meaningful margin uplift flowing through to 22% PBT growth. We were looking for 18% PBT growth.
“The tenor of the results is positive and we upgrade to Buy from Hold on revised EPS forecasts which are 5-6% above consensus. Our positive stance reflects confidence in the diversified business model being able to sustain solid organic and accretive bolt on growth going forward.”
