Cranswick reaches for further growth after investing £29m

In its half-year report ending 30 September, Cranswick said the capital expenditure of £29m would add capacity, extend capability and drive efficiencies.

During the period, the firm’s Board has approved a £54m primary poultry facility in Suffolk, which will double production, with further £13m associated investment to upscale existing milling and hatchery facilities. The firm’s new £28m continental foods facility in Bury, Lancashire, is also progressing to plan.

Cranswick has seen strong growth in its poultry category following new product launches and retail listings. Its revenue stands ahead of last year’s H1 results by 23% at £714.6m – up from £580.8m. Like-for-like revenue were up 18% and pre-tax profit 17.2% higher at £44.4m (2016: £37.9m).

Net debt stands at £16.7m, up from £2.9m for the same period last year.

Adam Couch, Cranswick’s chief executive, said: “We have invested a record £29 million in our infrastructure during the first half of the year.

“As part of the development of our rapidly growing poultry business we are announcing today our planned investment in a new primary poultry facility in Eye, Suffolk.  This class-leading facility, which is scheduled for completion in late 2019, will double our existing capacity with further room for expansion.

“The facility will incorporate the highest animal welfare standards and latest generation production techniques and equipment to drive operational efficiency gains.  We also plan to upscale our feed mill and hatchery operations to maintain our fully integrated supply chain model.

“During the period we have strengthened our asset base, enhanced market positions and developed new customer relationships.  We continue to make good progress against each of our strategic objectives and we are well placed to continue our successful development in the current financial year and going forward.”