Crawshaw plans expansion as interims improve
CRAWSHAW, the Yorkshire butchery group, today reported half year profits back in the black following a period of improving gross margins and careful cost control.
For the six months to July 31, Rotherham-based Crawshaw saw sales reduce by under 1% to £9.4m. Pre-tax profits were £233,040 comapred to a loss of £43,889 over the same period last year.
Operating profit improved from a loss of £1,729 to a profit of £268,297.
Crawshaw’s chairman Richard Rose said sales picked up towards the end of the interim period, despite the earlier part of the year experiencing a fall in like for like sales of 8%.
Mr Rose said: “However, a much improved sales performance towards the end of the first half has resulted in the cumulative trend improving, such that total sales over the full six months under review fell by just 1%.”
He added: “We continue to drive customer loyalty which remains very high. Customers remain attracted by the combination of quality, choice, and value. Many of our newer stores have a higher proportion of hot cooked food and this focus is proving very successful.”
Net debt at £1.0m increased marginally from £900,000, while cash generated from operating activities before movements in working capital in the period was £500,000.
Mr Rose said the group expected net debt to reduce further over the next 12 months.
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He said: “As previously reported, having opened seven new stores during the last two years we have gained a great deal of experience regarding the drivers of success.
“The larger format store type is proving particularly successful, not only measured by their initial performance, but also by their good continued growth. Accordingly it is this format that we are keen to roll out. A new site has recently been acquired that we plan to open as soon as possible.
“Since the half year end, sales have continued to show positive like-for-like growth and I am therefore confident about the outlook for the full year and beyond.”
