Cranswick reports positive trading

Hull-based Cranswick said underlying like-for-like sales rose by five per cent during the quarter, which was a slight increase on the rate of growth seen in the first half.

Overall operating margin was in line with management's expectations.

The interim management statement said: "During the period, the new abattoir at the company's primary pork processing site and the extension to the Lazenby's sausage facility, both in Hull, were completed and commissioning work continues at the group's air-dried bacon facility at Sherburn-in-Elmet, near Leeds.

"These facilities provide the company with substantial additional capacity and the potential to deliver on-going efficiency improvements."

Following the expected seasonal uplift in working capital and significant capital expenditure, net debt increased from 42m to 54m during the quarter, but was comfortably below the previous year's level of 67m, which Cranswick described as reflecting the strong cash generative nature of the business.

On January 31, the company strengthened its asset base by acquiring, for 7.3m, the premises at Wombwell, near Barnsley, of one of the group's cooked meats facilities.

The statement added: "With experienced management throughout the group and a well invested asset base, the board, whilst mindful of the challenges facing the consumer this year, remains confident in the continued successful long term development of the business."