Revenues climb at listed food producer
Hull-based food business Cranswick says trading in the first quarter of the financial year has been strong.
Revenue in the 13 weeks to 27 June 2020 was 24.8% ahead of the same period last year. And excluding the contribution from acquisitions made in the prior year, revenue on a like-for-like basis was 19.2% higher.
In a trading update released today, the business notes: “As a result of the current shift towards greater in-home consumption, retail demand has been exceptionally robust.
“This positive performance has, to date, continued during the second quarter of the financial year.
“Capital expenditure in the current financial year is expected to be lower than the record £101m spent in the prior year, following the successful completion of the new £78m poultry primary processing facility at Eye in Suffolk.
“As a result of strong cash generation and tight working capital management, net debt fell during the period.
“The Group remains in a robust financial position with committed, unsecured facilities of £200m which provide comfortable headroom.”
Adam Couch, CEO of Cranswick, said: “Our teams across the business have responded brilliantly during these extraordinary and unparalleled times and I would like to thank them for their incredible support and hard work.
“We have made a strong start to the year. Whilst we remain cautious about the longer-term economic impact of COVID-19 and the uncertainty surrounding the ongoing Brexit negotiations we are well positioned to address these challenges.
“Our positive momentum reflects the continued investment we make across our asset base and the quality and capability of our colleagues across the business.”