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Cranswick Increases Sales

2 August 2012, at 8:02am

UK - UK pork processor Cranswick saw sales for the three months to 30 June 2012 increased by 7.4 per cent to 3209 million, in line with the board's expectations.

The company said that during the period, all categories delivered robust growth and there were strong gains in sausage, bacon and continental products.

There were further modest increases in pig prices during the period, albeit they remain below the peak of last summer, the company said.

The impact has been absorbed through increased volumes and continued operating efficiencies.

As announced on 2 July 2012, the Company acquired the entire issued share capital of Kingston Foods Limited on 29 June 2012. Kingston is a producer of premium cooked and roasted meat products and at 27 January 2012 had gross assets of 33.7 million.

The acquisition of Kingston is expected to strengthen Cranswick's cooked meat production capabilities and further diversify its product range in a growing market and broadens the Group's customer base.

Net debt stood at 338 million at the end of the quarter, compared to 322 million at 31 March 2012. This increase reflects a seasonal uplift in working capital and cash spent on the acquisition of Kingston.

Net debt was, however, well below the 355 million reported at the same time last year. The Group is in a sound financial position, with committed, unsecured facilities of 3100 million which provide generous headroom going forward.

As announced on 21 May 2012, Bernard Hoggarth stood down from his position as Chief Executive Officer at the Annual General Meeting this week. He will continue with Cranswick in the role of Commercial Director on a part time basis.

Adam Couch will succeed Mr Hoggarth as Chief Executive.

Mr Couch, who has been with the business for more than 20 years, was appointed to the board in 2003 and became Chief Operating Officer in May 2011 as part of the Board's strategy for succession planning.

The company said that with experienced management at all levels of the group, a strong range of products, a well invested asset base and a robust financial position, the board, whilst mindful of the continuing challenges facing the UK consumer, remains confident in the continued long term success and development of the business.