Cranswick cheers investors

The Hull-based firm said growth was driven by strong volumes across most product categories and a positive contribution from its Benson Park acquisition.

Underlying sales, excluding the contribution from Benson Park and sales from the pig breeding business, rose seven per cent in the six months to September 30 while volumes rose 10 per cent as the group’s customers and UK consumers saw the benefit of lower input prices.

Cranswick said the next phase of development at its Norfolk primary processing facility will start this autumn. It said its £6m investment at the site will increase capacity and operating efficiencies as well as underpinning the plant’s drive to gain USDA accreditation.

It added that the major capital investment programme at Benson Park is on track and will be commissioned ahead of the 2015 peak Christmas trading period.

Cranswick said it is working closely with customers to maintain its focus on service, quality and innovation to deliver “exciting, competitively priced products” in market conditions that are expected to remain competitive throughout the second half of the year.

It added that a broadening product portfolio and an anticipated strong Christmas trading period means the business is “very well placed” to deliver further growth this financial year.

“With experienced management at all levels of the group, a strong range of products, a well-invested asset base and a robust financial position, the board remains confident in the continued long term success and development of the business,” it said in a trading statement.

The company will announce its interim results on November 30.

The firm said net borrowings were below the previous quarter end and comfortably lower than those of a year ago.

“The group is in a sound financial position with committed, unsecured facilities of £120m, which provide comfortable headroom,” it added.