| Updated:
Cranswick share price rises despite fall in revenue and profit
Shares in Yorkshire-based food producer Cranswick shot up by almost five per cent this morning, as the company announced it would be raising its interim dividend.
The company boosted its interim dividend by six per cent to 10.6p per share, from the 10p previously announced despite a slip in pre-tax profit and revenues in its interim results today.
Cranswick said changes in consumers’ food shopping habits, increases in market share for the convenience sector and the growth of limited discounters all impacted its sales.
Revenues for the six months ended 30 September 2014 stood at £481.5m, a £2m drop from the same period last year. Profit before tax fell to £24.6m from £26.1m at the same period last year.
The company said adjusted earnings per share had risen 7.3 per cent.
Last month the pork producer moved into poultry with the acquisition of Benson Park, a premium poultry provider based in Hull. The is expected to be “modestly earnings enhancing” for Cranswick this financial year.
Cranswick chairman Martin Davey said:
Subsequent to the period end, the company acquired Benson Park , a Hull based, leading producer of premium British cooked poultry which serves the fast growing food to go sector. This is an important acquisition for Cranswick in meeting the company’s stated strategic aim of broadening both the protein range and the customer base of the business.With experienced management at all levels of the group, a strong and continually evolving range of products along with a robust financial position the board remains confident in the continued long term success and development of the business.
