Cranswick to grow pastry products offering

UPMARKET meat to sausage maker Cranswick is to upscale its pastry products operations after buying land in Yorkshire to develop a new facility.

The Hull-based group said in a trading update for the six months to September 30, that underlying turnover was five per cent ahead of the same period last year thanks to the “versatility and the low relative price of pork to other proteins”. It said its first half performance has been in line with management’s expectations.

Total sales for the six months were six per cent higher after taking into account the contribution from Kingston Foods which was acquired in June.

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The group has bought land in Yorkshire to develop “a state of the art premium pastry facility”. Work on the site has started and once completed, Cranswick says it will be able to “significantly upscale current operations”.

It has also invested in the group’s primary processing facility at Preston, in Hull, while work has also started on extending the Sutton Fields cooked meat facility in Hull.

Looking ahead, Cranswick said: “Rising animal feed prices and the cost to European producers of implementing new EU welfare regulations (effective from 1 January 2013), which will raise standards towards those existing in the UK, are giving rise to herd reductions both in the UK and in Europe, with further reductions likely.

“UK pig prices, which are at a three year high, and those throughout the rest of the EU have been rising in recent weeks and further increases are anticipated. This is an issue affecting the whole supply chain and the scale of the inflation and the need to ensure continuity of supply will necessitate discussions on price increases with the group’s customers; these are underway.”

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It added: “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 development of the business.” Cranswick said the group is in a sound financial position.

Results for the year to March 31, 2012, showed sales of £821m and profit before tax of £48.4m.