Cranswick reports “positive” year

The Hull-based business said that adjusted pre-tax profits were up to £49.3m, from £45.6m the previous year, while reported pre-tax profits were down two per cent to £47.4m in the year to the end of March 2013.

Cranswick saw reported revenues rise seven per cent to £875m. A final dividend of 20.6p was recommended, up six per cent on last year’s 19.5p.

Cranswick chairman Martin Davey said: “This has been a positive year for Cranswick. Further progress was achieved in trading and investment was made for this progress to continue over the longer term.”

He said that operating cash flow in the year was “strong” and after significant investment in the asset base and the acquisition of cooked meats supplier Kingston Foods, year end net debt stood at £20.1m compared to £21.7m a year earlier.

Mr Davey added: “Investment elsewhere in the business contributed additional capacity and operating efficiencies which in turn have enabled the company to absorb some of the inflationary pressures within the supply chain.

“This, along with substantial new business from customers later in the year, were significant features of the year’s trading.”

Subsequent to the year end, the company acquired East Anglian Pigs, which is involved in the breeding, rearing and finishing of British pigs.

Mr Davey added: “Recent issues in the integrity of the supply chain for meat products and the introduction in 2013 of higher welfare standards for pig production in the EU enhance the competitive position of UK based pork processors.

“The company’s well invested asset base, providing efficient means of production and headroom for future growth, along with an experienced management team and a robust balance sheet should enable it to capitalise on opportunities that arise.”