UK meat processor Cranswick again today (16 May) sounded a note of caution about the year ahead after reporting “record” annual sales and profits.
Martin Davey, the company’s chairman, said the “difficulties” facing UK consumers, rising raw material prices and the “competitive” market meant the 12 months to 31 March next year would be “more demanding than usual”.
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Davey was commenting on the trading outlook after Cranswick reported an 8% rise in annual pre-tax profits and a 4% increase in underlying sales.
For the year to 31 March, pre-tax profits reached GBP47.1m (US$76.3m) on the back of underlying sales of GBP758m. Volumes were up 6% although they were flat in the fourth quarter of the year, Davey said. Net profit was up 8.4% at GBP35.3m.
However, despite the challenges ahead, Davey claimed Cranswick had the attributes to continue to grow.
“The board anticipates that with the company’s well-invested asset base, strong range of products, experienced management team and robust financial position it is well positioned to continue the successful long-term development of the company,” Davey said.
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By GlobalDataCranswick, meanwhile, named Adam Couch, who has spent 20 years at the company, as chief operating officer.
The company also indicated plans to export products to the US. Chief executive Bernard Hoggarth said Cranswick had secured accreditation to export “specific products” to the US from a site near Hull.
In the wake of the publication of the full-year results, shares in Cranswick were up 2.02% at 782p at 10:00 BST. The shares, however, are lower than they were in April, when Cranswick first indicated its caution over the year ahead.
