Cranswick plc: Preliminary Results 2015-2016

View the full statement here
View our year end results presentation here

Cranswick plc announces its audited preliminary results for the year ended 31 March 2016.

Financial highlights:

  • Revenue ahead by 6.6% at £1,069.6m (2015: £1,003.3m)
  • Underlying1 revenue up 4.7%
  • Adjusted Group operating margin2 of 6.2% (2015: 5.8%)
  • Adjusted profit before tax2 increased 13.7% to £65.7m (2015: £57.8m)
  • Adjusted earnings per share2 13.7% higher at 104.7p (2015: 92.1p)
  • Recommended final dividend increased by 10.7% to 25.9p (2015: 23.4p)
  • Net funds of £17.8m (2015: net debt at £17.3m)
  • Statutory profit before tax up 11.0% to £58.7m (2015: £52.8m)
  • Statutory earnings per share 8.8% higher at 91.5p (2015: 84.1p)
  • £4.6m non-cash impairment of Sandwiches goodwill

Strategic progress:

  • Full and successful integration of Benson Park including completion of capacity doubling site extension
  • Further development of UK poultry business with the post year end acquisition of Crown Chicken
  • £34m of capital investment across the Group’s asset base to support future growth
  • Good progress on Phase 2 upgrade to Norfolk primary processing facility, which underpins drive for site USDA accreditation
  • Strong progress in key export markets with volumes to the Far East ahead by 32%

Cranswick Chairman Martin Davey said:

 “The past year has been one of strong commercial growth and continued strategic development for Cranswick. This has enabled sales, which exceeded £1 billion for the first time a year ago, to progress further.

 “The acquisition in October 2014 of Benson Park, a leading producer of premium British cooked poultry products, was complemented by the acquisition last month of CCL Holdings (‘Crown’). Crown is a leading integrated poultry producer supplying a broad customer base across grocery retail, food service, wholesale and manufacturing channels. The Board considers that Cranswick now has a base from which to move forward and develop a strong presence in the poultry sector over the longer term.

“The Board is proposing to increase the final dividend by 10.7 per cent to 25.9 pence per share.

“The business has made significant progress both commercially and strategically over the past year. There are strong customer relationships, a broadening product portfolio and growing export channels. Aligned with well-invested and efficient production facilities, skilled management teams and a strong balance sheet this gives the Board confidence that Cranswick is well positioned to meet the challenges that may arise and to continue its successful long-term development.”

1 underlying revenue excludes the contribution from Benson Park prior to the anniversary of its acquisition (22 October 2015) in the current year and revenue from pig breeding, rearing and trading activities in both the current and prior years.

2 adjusted Group operating margin, adjusted profit before tax and adjusted earnings per share exclude net IAS 41 valuation movement on biological assets and amortisation of customer relationship intangible assets in 2015 and 2016, and impairment of goodwill in 2016. These are the measures used by the Board to assess the Group’s underlying performance.