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Cranswick has raised its profit forecasts for the year after stronger-than-expected trading in the first half.
The meat processor said in a trading update for the 26 weeks to 28 September that its performance was underpinned by continued robust volume growth in the core UK food business, a positive ongoing contribution from the expanding pig farming operations, industry leading service levels and a “relentless focus on quality and innovation”.
As a result, the group now expects the first-half performance to be ahead of the same period last year.
“Whilst we remain cautious about current market and wider economic and geopolitical conditions, following the strong volume growth delivered through the first half, our outlook for the current financial year ending 29 March 2025 is now expected to be towards the upper end of current market expectations,” Cranswick said in the short statement.
It means pre-tax profits should be at the top of the consensus range of £179m-£192m.
“The board remains confident that continued focus on the strengths of the company, which include its long-standing customer relationships, breadth and quality of products and industry leading asset infrastructure, will support the further successful development of the group over the longer term,” the statement added.
Cranswick will report interims on 26 November.
Morning update
Losses at Microsalt have widened as R&D costs increased and the group prepared for the commercial roll out of its products with two major B2B customers.
It is the group’s maiden interim results since listing on the London Stock Exchange’s junior AIM market earlier this year.
Microsalt is commercialising patented technology to produce a salt crystal around 100 times smaller and with 50% less sodium than traditional salt.
Revenues at the group in the six months to 30 June were $200k, compared with $300k in the same period of the previous year.
And net losses increased from $1.7m to $2.5m.
CEO Rick Guiney said the first half continued Microsalt’s 2023 momentum, with the successful IPO, operational and R&D progress, coupled with preparation for upcoming commercial B2B customer product launches.
“In addition to progress made in North America, our geographic outreach is expanding with inroads into Asia, Australia, South Africa, the UK, Germany, Canada and Latin America with a resultant boost to our sales pipeline,” he added.
“We look to the future with confidence in both our product range and health proposition.”
The FTSE 100 nudged up 0.1% to 8,295.62pts this morning.
Shares in Cranswick jumped 2.4% to 4,830p as markets reacted to its results upgrade.
Microsalt fell 1% to 50p following its maiden results.
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