Cranswick plc (LON:CWK), a leading UK food producer, today announced its unaudited results for the six months ended 30 September 2018.
Strategic developments:
· Record H1 capital expenditure of £41m to provide the platform for future growth
· Construction of new, world-class, £60m primary poultry processing facility in Eye, Suffolk underway
· New £27m Continental Foods facility in Bury, Lancashire fully commissioned
· Substantial investment in upstream agricultural operations in both pork and poultry to ensure supply chain integrity and sustainability
Financial highlights:
· Revenue of £719.2m (2017: £714.6m)
· Adjusted Group operating margin1 at 6.2% (2017: 6.2%)
· Adjusted profit before tax1 of £44.8m (2017: £44.4m)
· Adjusted earnings per share1 of 70.0p (2017: 70.0p)
· Dividend per share increased by 5.3% to 15.9p (2017: 15.1p)
· Net funds at £2.2m (2017: net debt of £16.7m)
· Statutory profit before tax down 4.3% to £42.6m (2017: £44.5m)
· Statutory earnings per share 5.4% lower at 66.4p (2017: 70.2p)
Adam Couch, Cranswick’s Chief Executive Officer commented:
“The first half performance was in line with our expectations. They were achieved despite more uncertain domestic market conditions and softer pricing in key export markets.
“The Group’s capital investment programme remains firmly on track. During the period we spent a record £41 million across our already well invested asset base as we build a platform for future growth.
“Our new £27 million Continental Products facility in Bury, Lancashire was commissioned during the period. We have also invested heavily in the Group’s agricultural operations and construction of a £60 million class-leading, primary poultry processing facility in Eye, Suffolk, which is due for completion towards the end of the next financial year, is now well underway.
“The Board is confident that continued focus on the strengths of the Company, which include its long-standing customer relationships, breadth and quality of products, developing export channels and asset infrastructure, will support the delivery of its expectations for the current year and its further successful development over the longer term.”
