CRANSWICK plc: INTERIM RESULTS
A strong performance in a challenging environment
24 November 2020
Cranswick plc (“Cranswick” or “the Company” or “the Group”), a leading UK food producer, today announces its unaudited results for the 26 weeks ended 26 September 2020.
COVID-19 update:
· Colleague safety and wellbeing remains our priority
· Proactive, comprehensive and well embedded COVID-19 action plan centred on keeping our colleagues safe, feeding the nation and supporting our local communities:
- Enhanced safety measures swiftly introduced in March continue to be monitored and reviewed
- Working closely with our customers, the Government and regulatory bodies to ensure the continued supply of essential food products
- £500 bonus paid at the end of June to each of our site-based colleagues to recognise their essential key worker status and valued contribution throughout the pandemic
- Ongoing support to front line NHS staff, the elderly and vulnerable and charities in our local communities
· Robust financial position and strong trading has enabled us to continue operating well within banking covenants and without recourse to any Government assistance
Commercial and strategic progress:
· Strong revenue growth and earnings momentum
· Exceptionally robust demand across all categories reflecting the current shift towards greater in-home consumption
· Strong contribution from the new Eye poultry facility during the period. Additional investment underway at the site to add further capacity and enhanced capability
· £20m investment in new Hull cooked bacon facility now well advanced and progressing to plan
· Total capital expenditure of £35m spread across the Group's asset base during the period
· Brexit preparations well advanced across all areas of the business
· Continued positive progress towards meeting our 'Second Nature' sustainability targets
Financial highlights * :
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2020
|
2019
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Change (Reported) |
Change (Like-for-like † ) |
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Revenue |
£931.6m |
£770.0m |
+21.0% |
+17.3% |
|
Adjusted Group operating profit |
£62.0m |
£47.4m |
+30.8% |
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|
Adjusted Group operating margin |
6.7% |
6.2% |
+50bps |
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|
Adjusted profit before tax |
£60.7m |
£46.4m |
+30.8% |
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Adjusted earnings per share |
92.8p |
71.6p |
+29.6% |
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· Statutory profit before tax 13.3% higher at £53.7m (2019: £47.4m)
· Statutory earnings per share up 11.9% to 81.9p (2019: 73.2p)
· Interim dividend increased by 12.0% to 18.7p (2019: 16.7p)
· Return on capital employed‡ 66bps higher at 16.6% (2019: 15.9%)
· Net debt (excluding IFRS 16 lease liabilities) of £54.6m (2019: £67.2m and March 2020: £81.0m)
· Robust balance sheet with £200m of bank facilities providing over £145m of headroom
Adam Couch, Cranswick's Chief Executive Officer commented:
“I am incredibly proud of our colleagues who have performed so brilliantly in responding to the extraordinary and unparalleled challenges we currently face. I would again like to thank them for their professionalism, commitment, dedication and passion.
“We have made a strong start to the year. Although we remain cautious about the longer-term economic impact of COVID-19 and the continued uncertainty surrounding the ongoing Brexit negotiations, we are well positioned to address these challenges.
“Our outlook for the current year is unchanged and we have a solid platform from which to continue Cranswick's successful long-term development. “