Prelims were strong last week and IC have just run an article tipping them as a BUY. They highlight the abattoir staff shortages, the reduction in pork prices as China restricted imports, the worry about African Swine Fever but it's pretax profits are up 5% due largely to poultry. |
Daily Mail today. Impact on share price?
Check YOUR fridge for contaminated chicken: Now Tesco strips shelves after Salmonella outbreak at one of Britain's biggest suppliers sees thousands of sandwiches, wraps and salads disappear from Leon, Pret, Aldi and Sainsbury's
Salmonella was detected at Cranswick food processing plant in Hull during a 'routine internal inspection'
The factory on Humberside has been shut down and 'will remain closed until the investigations are complete'
Waitrose latest supermarket to recall 10 of its chicken sandwich and wrap lines as a precaution over bug
Sainsbury's recalls chicken sandwiches, wraps and cooked chicken amid fears they could be contaminated
Pret A Manger has removed all of the chicken items that are usually on its menu and got rid of labels
Have you bought one of the contaminated sandwiches or work at the factory? Email martin.robinson@mailonline.co.uk |
Popped up on my radar due to the rather curious drop.
Can't see any solid reason for it, the stock has always traded on fairly punchy multiples so I guess any nervousness is going to see it hit. |
I suppose the slump in the price today was down to a) being at a high point b) this 'news' you mention from Peel Hunt? c) some dubious figs from PP MP etc. spooked some gigantic holders of CWK shares into selling up altogether each trying not to be left holding the baby, Is that the full story? did you see this PH downgrade? whaty does it say? |
Are you referring to this article:
hxxps://citywire.com/investment-trust-insider/news/peel-hunt-the-stock-market-impact-of-global-food-inflation/a2384934
Can one opinion have such a profound effect on the SP, over two weeks later? |
Yup - plus a PH downgrade post poor figs from Pilgrims Pride (Moy Pk etc) |
Sp dropping recently, presumably about the huge rise in animal food prices? |
 ...from last year...
Cranswick is among the leaders in premium, fresh food products supply in the UK. The company operates 15 production facilities across the UK and more than 11 800 people. CWK has full control on their pig breeding and rearing activities, and their chicken operation is fully integrated. Strategy is focused on supplying high quality products, in line with the highest standards of the sector. Cranswick works not only with most UK grocery retailers, but also has good exposure to the “food-to-go” sector and significant exports. This year they have invested additional £12.7m in expansion projects. The company benefits from a well-diversified portfolio supplying various types of meats and high demand levels throughout the pandemic. Strong growth in revenue, channelling even bigger numbers in net profit makes the stock attractive.
Over the years the company proved its ability to generate cash with continuously rising CFO. The controlled amount of leverage and low levels of goodwill on the balance sheet, even in the presence of several acquisitions upon the realization of their blended growth approach, present a strong balance sheet. Last but not least, profitability has been rising, and long-term growth is further supported by company’s ambition to invest in its asset base. Latest trading update is creating more positive sentiment for the stock. Revenue was 9.6% above results from the same period in 2020, volumes were 7.7% up, and Far East export was “well ahead”. The outlook is still in line with expectations of the Board, but there is room for that to change as hospitality is now almost fully functioning and people are desperate to go out....from WealthOracleAM |
It's a murky business indeed, but look at the number of people stuffing themselves in fast-food outlets, there are a lot of undiscerning consumers happy to race to the bottom.
Q3 results suggest it is profitable still. |
I've got a feeling the 'frankenchickens' are coming home to roost here. Get ready for a boohoo type public revulsion reaction. One major holder is reducing. Maybe it'll be temporary, but it's likely that Morrisons will quickly cave and CWK might have to switch away from the fast growing broilers and adopt a less 'efficient' process for bringing chicken meat to British tables. Environmentalists and animal welfare groups will doubtless be taking a look at the pig-rearing practices too. The first chicken revelations a week or two back had no noticeable effect on the sp, but public awareness is building on this brand in a bad way. For now, I suspect we may have reached the top. |
JEFFERIES RAISES CRANSWICK PRICE TARGET TO 4,370 (3,700) PENCE - 'HOLD' |
An advisory broker? Go execution only. |
Not with Cwk but with many others. Not dealing when asked and dealing when not asked |
They're all pretty useless. ISA? SIPP? CFD?
How have iii failed you in relation to CWK? |
Can anybody recommend better brokers than iii |
'Food producer Cranswick hungry to devour pet food group IPN'
Cranswick is preparing to launch a share sale to fund the potential purchase of Wagg dog food, Sky News learns. |
'Cranswick set for ‘substantial growth’, says Berenberg'
Cranswick (CRW) has enjoyed ‘exceptional’ trading and Berenberg says there is more growth potential for the food producer.
Analyst Ned Hammond retained his ‘buy’ recommendation and increased his target price from £38.50 to £40.00. The shares rose 2.5% to £35.28 yesterday.
The group’s first quarter update for 2020/21 ‘confirmed that it has made an excellent start to the year’, with 19% organic revenue growth, said Hammond.
‘Although we expect the rate of expansion to temper from here, we estimate substantial growth will be delivered in full-year 2020/21,’ said Hammond.
‘We believe investment will be needed for expansion to continue in future years, but we feel the company has the balance sheet strength to accommodate this.’ |
"Revenue in the 13 weeks to 27 June 2020 was 24.8 per cent per cent ahead of the same period last year. Excluding the contribution from acquisitions made in the prior year, revenue on a like-for-like basis was 19.2% higher."
Wow. Just wow. happy day for holders. GLA |
Could well be a DEEP RED DAY tomorrow
Wombwell factory safety measures 'not fit for purpose'
OK Deaths were in April (Covid) but from tenor of BBC report with 10 new cases at the site one wonders on likely impact - Anyone closer able to comment? |
another good result here. CWK just keeps delivering, and with significant expansion, plenty more to come I think. GLAH |
With recent news that entire workforce of abattoir staff have been infected with Covid-19 and chicken processing plants shut down, is it unreasonable to suspect that the virus is being spread through raw meat as well? Has the government been aware of this earlier but has kept quiet to avoid panic? Think Mad Cow. After all, the thought is that it all started in animals in wet markets in China and has started up again. |
Can't invest here. Meat like oil is a declining market. Nice chart tho |
Cranswick has a fantastic long term performance (sp averaging 15% compound rate of growth over 25 years!) but I sold 2/3 of my holdings today as a precaution in case African swine fever finally arrives in UK. I will keep an eye and will definitely return once the danger passes. |
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