Cranswick pleased with life as a pure food group

CRANSWICK said it had a “pleasing” trading performance with turnover up 19% during its first six months as a purely food business.

The Hull-based food manufacturer sold its pet products business to a management buyout team backed by private equity firm LDC for £17m in April and acquired pork processor Bowes of Norfolk for a similar figure in June.

It has since renamed the business Cranswick Country Foods Norfolk and said it contributed 7% to the 19% turnover rise in the six months to September 30 excluding sales from the pet business.

It said that overall operating margin was similar to that achieved for the last financial year.

Cranswick said the while the integration of CCF Norfolk is progressing as planned and sales have been in line with expectations, the business has been affected by the rise in pig prices to record levels, although it said that prices now appear to have peaked.

The group, which produces sausage and bacon products as well as sliced meats and sandwiches for customers including major supermarket chains, reduced its net debt during the period reflecting the net cash inflow from operations and corporate activity, partly offset by a seasonal increase in working capital.

Cranswick will announce its half year results on November 16.