Humber fresh food supplier Cranswick has hailed a 6.8% rise in revenues after a strong year saw it invest £138m into the business to drive growth.
The Kingston-upon-Hull business said it saw strong volume growth of 7.7%, driven by growth in its premium product range and a record Christmas trading period.
Total revenue for the year ended March 29 was £2.72bn, while adjusted group operating profit was 14% up at £206.9m, while adjusted pre-tax profit rose 14.3% to £197.9m. At the end of the year, net debt was £172.4m, up from £99.4m in the previous year.
The FTSE 250-listed group said fresh pork export revenue was 10.2% ahead, while sales of its pet products grew 47.8% as the onboarding of the Pets at Home business continued. Meanwhile, poultry revenue was by 20.3%, driven by new cooked and prepared poultry retail listings.
Cranswick also announced it had completed the £32m acquisition of Newcastle-under-Lyme sausage maker Blakemans last week, a deal which followed the £24m acquisition of pig genetics producer JSR Genetics.
Adam Couch, Cranswick’s CEO, said investments included £29m on the expansion of two added-value Hull poultry sites, which are now nearing completion, and £25m on a Worsley houmous and dips facility.
It also made a £22m investment in incubatory capacity at the Kenninghall site and Eye, which is now under way, as well as £62m on the expansion project at the Hull pork primary processing site, which is progressing as planned
It said £35m is also committed to increasing Hull pork primary processing site capacity from 35,000 to 50,000 pigs per week.
Mr Couch said: “This year we have made significant strategic and financial progress delivering record revenue and adjusted profit before tax. We have also continued to make substantial investment across our industry leading asset base, our farming operations and in acquisitions to support our long-term growth ambitions.
“We are accelerating the pace at which we invest to drive strong returns. This year we spent a record £138m across our business to add capacity, expand capability and drive further efficiencies through automation and scale.
“I am delighted to announce the acquisition of Blakemans, a well‐invested, leading food service sausage manufacturer. Blakemans is highly complementary to our existing added-value Gourmet business. We look forward to welcoming the entire Blakemans team to Cranswick and to working with them to develop the business further.
“I would like to thank everyone at Cranswick for their unwavering dedication and support. Our continued successful performance in challenging market conditions reflects the talent, capability and determination of our colleagues across the business. The culture we have fostered, centred around a clear ambition to deliver strong sustainable growth, will continue to be the key driver of our success over the long-term.”
Chairman Tim Smith used his review to criticise the existing planning system and call for change.
He said: “One of the most significant barriers to unlocking the business’ full potential is the complexity and inefficiency of the current planning system. Excessive bureaucracy conflicted with our objective to enhance Ƶ food security and significantly delayed important projects such as the redevelopment and expansion of the Methwold and Feltwell farms in Norfolk, and the construction of a second poultry facility at Eye in Suffolk.
“These projects are essential prerequisites to enhancing capacity, improving food resilience, and meeting rising consumer demand. A more streamlined and responsive planning framework is, therefore, essential to unlocking capital investment, supporting job creation, and growing regional economies.”
The board proposed a final dividend of 76p per share, 12.9% up on 2024.
Last week Cranswick saw its shares fall after a number of Ƶ supermarkets suspended supplies from one of its farms that has been linked to abuse against pigs. The company said it was "extremely disappointed" and had started an investigation after covert footage emerged over the weekend that appeared to show workers at Northmoor Farm in Lincolnshire abusing piglets.
