Profits boost for Cranswick as record investment fuels growth
Inside Cranswick's factory in Hull
By Hull Daily Mail | Posted: 27 Nov 2018
Hull food giant Cranswick has proved investment is key as it sees profits and turnover rise from the same period last year.
The company, headquartered at the Sutton Fields industrial estate, recorded pre-tax profits of £44.8m for the first six months of the financial year – up from £44.4m.
Revenue was also up between April and September 30 compared to 2017, from £714.6m to £719.2m.
Cranswick has during the first six months of the financial year invested record amounts in its operations, in a bid to fuel future growth.
The food producer recorded more than £40m of capital expenditure, with work on its new £60m processing facility in Suffolk also underway.
Adam Couch, CEO at Cranswick, said: “The first half performance was in line with our expectations. They were achieved despite more uncertain domestic market conditions and softer pricing in key export markets.
“The Group’s capital investment programme remains firmly on track. During the period we spent a record £41m across our already well invested asset base as we build a platform for future growth.
“Our new £27m Continental Products facility in Bury, Lancashire was commissioned during the period. We have also invested heavily in the Group’s agricultural operations and construction of a£60m class-leading, primary poultry processing facility in Eye, Suffolk, which is due for completion towards the end of the next financial year, is now well underway.”
Cranswick has also recently unveiled its new £27m continental foods facility in Lancashire, and is continuing to invest heavily in its pork and poultry operations.
The business said despite uncertain market conditions, it was confident of hitting its full-year expectations, and continuing to grow in the longer term.
“Along the way there will inevitably be challenges to be confronted and overcome, not least of which is the uncertainty created by the ongoing Brexit discussions.
“The sooner there is finalisation and clarity on this, then the better for all,” Cranswick said.
Founded in the early 1970s by a group of farmers in East Yorkshire, Cranswick has evolved into a business which supplies pork, poultry and gourmet food products to the UK’s retail and food sectors.
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Cranswick products are often sold under supermarkets’ own labels, including Sainsbury’s ‘Taste the Difference’ and Tesco ‘Finest.’
Today, the business employs more than 10,000 people across its 16 UK manufacturing facilities.
Mr Couch said: “The Board is confident that continued focus on the strengths of the Company, which include its long-standing customer relationships, breadth and quality of products, developing export channels and asset infrastructure, will support the delivery of its expectations for the current year and its further successful development over the longer term."