Business
First Quarter Trading Update and Acquisition
First Quarter Trading Update and Acquisition.
About this update from Cranswick Plc
[{"type":"text","content":"\n \nRNS Number : 9445G Cranswick PLC 29 July 2019 \n\n29 July 2019\n \n \nCranswick plc\n(\"Cranswick\" or \"the Company\" or \"the Group\")\n \n \n \nFirst quarter trading statement and acquisition of leading Mediterranean food products business\n \nCranswick, a leading UK food producer, today provides an update on trading for the three months to 30 June 2019 and announces the acquisition of Katsouris Brothers Limited (Katsouris Brothers), a leading Mediterranean food products business.\n \nCurrent trading\nTrading in the first quarter of the financial year has been encouraging.\n \nRevenue in the three months to 30 June 2019 was 1.5 per cent ahead of strong comparatives in the same period last year.\n \nFar East export revenues were strongly ahead of the corresponding period last year, reflecting increased demand from China following the widespread outbreak of African Swine Fever in the region.\n \nThe UK pig price increased by 10 per cent during the period although the average price across the quarter to June 2019 was still below that in the equivalent period a year earlier.\n \nInvestment\nThe Group continues to invest at record levels across its asset base to increase capacity, add new capability and drive further operating efficiencies, whilst maintaining industry leading standards at all its facilities.\n \nInvestment in the new £75 million poultry primary processing facility at Eye in Suffolk, which will more than double existing capacity, is progressing to plan. Commissioning is expected to take place towards the end of the financial year and is being fast-tracked to support the anchor customer for the new site (Wm Morrison Supermarkets plc). This world class operation is the first new primary poultry plant to be constructed in the UK for almost 30 years and will, when fully commissioned, be the most technologically advanced and efficient facility in the UK industry incorporating the highest animal welfare standards.\n \nFinancial position\nAs expected, net debt increased during the period in response to the Group's substantial ongoing capital investment programme. The Group is in a robust financial position with committed, unsecured facilities of £160 million which provide comfortable headroom.\n \nAcquisition of leading Mediterranean food pro...