Crawshaw upbeat but delays shop openings

MEAT retailer Crawshaw Group today said its second half performance had been in line with management expectations and that it plans to open two new butchers stores later this year.

The Rotherham-based group’s operating company, Crawshaw Butchers, has 18 retail outlets and two distribution centres across Yorkshire and the Humber, Nottinghamshire and Lincolnshire.

Crawshaw has opened five new butchers shops, in Castleford, Chesterfield, Huddersfield, Mansfield and Retford, since last summer.

In a pre-close trading statement for the year ended January 31, Crawshaw, which was bought by AIM-listed Felix Group last April, said like for like sales in the third quarter of 2008 were ahead by 5% and were ahead by 6% in the fourth quarter.

Gross margin was slightly behind budget as certain input prices were high and the group’s management decided to absorb the increase as it expects the input prices to revert back to lower levels.

Like for like sales for the first four weeks of the present financial year are up and in line with budget, Crawshaw said.

Crawshaw said its latest five shops were “making excellent progress”.

In a statement Crawshaw said: “These new stores cover a variety of different locations and formats and the board now wish to postpone opening further new stores until late summer 2009 in order that the financial returns of each store type may be fully evaluated – in doing this the management team believe it can maximise returns on future new stores.

“Additionally, the board feels this cautious approach is appropriate in the current external financial environment.”

The company has also renegotiated the terms of its £2.5m credit facility with the Royal Bank of Scotland, which has been extended to June 30, 2010.

Crawshaw expects to announce its full year results on May 12.