FDBusiness.com

UK meat and convenience food processor Cranswick has increased adjusted operating profit by 10.1% to £58.7 million for the year ended 31 March 2015 on revenues up 1% to £1.003 billion. Strong revenue growth in several of the group’s product categories offset lower fresh pork sales and a decision to use all of Cranswick’s own pigs internally. Revenue growth was also supported by the contribution from Benson Park, a leading producer of premium British cooked poultry, which was acquired in October 2014.

Group operating margin at 5.8% of sales was 0.4% ahead of the previous financial year, reflecting an unstinting focus on improving operational efficiencies across the group and the benefit of lower pig prices in the current financial year compared to the previous year when prices had risen rapidly to record levels. Reported profit before taxation was £52.8 million.

Cranswick invested £21.1 million in its asset base during the year. This provided additional capacity, the upgrade of equipment, improved operational efficiencies and new product development resources. The principal areas of expenditure were the Delico cooked meats facility in Milton Keynes, and the Hull and Norfolk fresh pork sites. This brings total investment over the last five years to £137 million, resulting in the business having some of the most efficient and well-invested production facilities in the UK food manufacturing sector.

Cranswick Chairman Martin Davey, chairman of Cranswick, comments: “Following a year of significant commercial and strategic progress for Cranswick, the board looks forward to the opportunities that lie ahead. Cranswick benefits from some of the most efficient and well-invested production facilities in the UK food producer sector. This, in conjunction with our growing international export channels and strategy of diversifying our product portfolio, leaves the board confident that Cranswick is well positioned to continue its successful long term development.”