Business
Trading statement & sale of sandwich business
Trading statement & sale of sandwich business.
About this update from Cranswick Plc
[{"type":"text","content":"\n \nRNS Number : 0590F Cranswick PLC 25 July 2016 \n\n25 July 2016\n \nCranswick plc\n(\"Cranswick\" or \"the Company\" or \"the Group\")\n \nFirst quarter trading statement and sale of sandwich business\n \nCranswick, a leading UK food producer, today provides an update on trading for the three months to 30 June 2016 and announces the sale of its sandwich business.\n \nCurrent trading\nThe Group has made a positive start to the current financial year.\n \nRevenue in the three months to 30 June 2016 was 11% ahead of the same period last year, driven by strong volume growth.\n \nUnderlying revenue* was 5% higher than the same period last year, with corresponding volumes up 12% as the benefit of lower input prices continued to be passed on to the Group's customers. Export volumes to Far Eastern markets were 60% ahead of the same period last year, reflecting both ongoing robust demand from the region and increased output from the Group's two primary processing facilities.\n \nInvestment\nThe integration of Crown Chicken Limited (\"Crown\"), acquired in April 2016, is progressing to plan with the business making a positive contribution in line with the Board's expectations.\n \nDuring the period, the Group continued to invest heavily across its asset base to increase capacity, add new capability and drive further operating efficiencies.\n \nFinancial position\nNotwithstanding the £39 million spent on acquiring Crown during the period and the substantial ongoing capital investment programme across the Group, net debt stood at £22 million at 30 June 2016. This level was just £10 million higher than at the same point last year and compared to £18 million of net funds at 31 March 2016. The Group is in a robust financial position, with committed, unsecured facilities of £120 million which provide comfortable headroom.\n \nSale of sandwich business\nAs part of Cranswick's strategy to focus on its core protein businesses, the Board is pleased to announce the sale of the Group's sandwich business, The Sandwich Factory Holdings Limited, to Greencore plc for a cash consideration of £15 million. In the year to 31 March 2016, the sandwich business generated revenues of £54 million.\n \nAdam Couch, CEO of Cranswick, commented:\n\"I am pleased to announce the sa...