Cranswick Share Discussion Threads

[m.t.glass] 15/7/2010 11:16

Cranswick brings home the bacon

Daily Mail
14 July 2010, 9:48am


Cheaper pork prices have helped sausage maker Cranswick report a first-quarter rise in sales.

In the first three months revenues rose 19% on the same period last year to £198m, partly driven by its new Norfolk plant.
Chief executive Martin Davey said: 'A prime pork chop is much cheaper than an equivalent cut of beef or lamb.

'We have also seen pig prices fall from record highs a year ago.'

Net debt at the UK's largest pork supplier was £54m, down £10m on a year ago.

Shares closed up 11p at 871p


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The Telegraph:

Cranswick sales rise as health-conscious Britons pick pork over beef

Cranswick, the pork, bacon and sausage group, which supplies food for celebrity chef Jamie Oliver's branded range, said it had made a strong start to the year with first-quarter sales rising by 19pc.

By Jamie Dunkley, City Reporter
Published: 5:39PM BST 13 Jul 2010

The company said total sales in the three months ending June 30 hit £198m - excluding revenue from its former pet business, which was sold last year.

In a short trading update, Cranswick added that its net debt now stood at £54m – £10m lower than the same period last year.

While there was a reduction in sales of continental products, there were substantial gains in fresh pork, bacon and sandwiches and continued growth in cooked meats and sausages," the company said.

"There were further modest increases in pig prices during the period, albeit they remain below the peak of last summer. The impact was absorbed through increased volumes and continued operating efficiencies. The board is confident in the continued successful long term development of the business."

Cranswick has benefited as Britons become more health conscious by eating less red meat and more pork and chicken. The company is also continuing to upgrade its operations and has invested in new abattoirs and it is expanding its sausage and bacon capacity.

It will supply all the meat and pasta for Oliver's range of fresh pork joints, pork steaks, marinated ribs, bacon, Italian charcuterie and fresh pasta dishes. There is also a children's sausage range.

Cranswick shares rose 11 to 871p.

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The Independent:


Investment Column: Cranswick's shares bring home the bacon

Edited by Alistair Dawber

Wednesday, 14 July 2010


Our view: buy

Share price: 871p (+11p)

Underlying sales growth at the big four supermarkets have suffered a sharp slowdown this year, as lower food price inflation and a cautious consumer have taken their toll.

But sales have sizzled at Cranswick, which supplies pork to Tesco, Sainsbury's, Asda and Morrisons, and the Co-operative Group. Sales, which strip out the impact of acquisitions, rose by 6 per cent in the first quarter to 30 June, an upturn from the 4 per cent in the fourth quarter.

Cranswick was also boosted by consumers snapping up cooked meats and sausages during the football World Cup. The pork sausage specialist itself scored with the acquisition of CCF Norfolk, a supplier to Tesco, last June. CCF Norfolk's revenues increased by 13 per cent in the quarter, swelling Cranswick's total sales by 19 per cent. While the local pigs will not be grunting in delight, CCF Norfolk has already increased capacity from 10,000 to about 13,000 pigs a week.

Cranswick also plans to ramp up production at other facilities, including its Lazenby's gourmet sausage factory in Hull and at its cured bacon facility at Sherburn-in-Elmet, West Yorkshire.

Other tasty morsels for investors are that, despite higher pork input prices, Cranswick is not suffering any margin erosion, partly due to increased volumes and further operating efficiencies.

But not all of its numbers performed in the latest quarter, as it cited a "reduction" in international sales. However, overseas only account for a small proportion of its sales and we think that Cranswick's shares, which trade on a forward 2011 price-to-earnings ratio of 12.1, have legs. This is not only because it appears to have genuine momentum, but also as the company has a strong track record of growing its dividend and earnings per share. Therefore, we retain our buy recommendation after tipping Cranswick at 755p in February.

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and similar stuff in the Yorkshire Post


and


Cranswick is relying on the trend towards pork as a cheap and healthy form of protein and towards its premium sausages, again seen as good value for stretched family budgets. A Jamie Oliver range is just appearing in the shops. Companies such as Cranswick are inevitably reliant on what used to be called the pork cycle. Farmers build herds, the price drops, herds are scaled back and so on. Cranswick believes that it can manage such fluctuations by further volume growth and greater efficiencies. The shares sell on about 12 times' this year's earnings. Not cheap, but worth picking up on weakness, according to the Times.

[nellie1973] 15/7/2010 07:38

Tipped in papers

[stevemarkus] 03/6/2010 08:39

It's not really been all over the place - the spread is quite wide usually, and it tends to move up or down 5% or so. If you look at the overall trend, it's quite clear (upwards, just in case you can't see it).

Cheers,
Steve.

[yf23_1] 02/6/2010 10:57

A little bit surprising after all the times of rises and declines on quite small trades. Following the trades every day and they just seem all over the place on low volume.
Maybe now the MMs are really short of stock so we are now seeing the true pricing showing through.

[m.t.glass] 02/6/2010 10:26

And so it has. Broke through the 820p resistance level, dropped back on Friday to test it as a new support level, and took off from there in textbook fashion ;o)

[m.t.glass] 24/5/2010 10:28

Yep. Another good set of figures. It'll be interesting to see if good enough to lift the share price clear of the 790-820p channel it's been in for 12 weeks..

[stevemarkus] 24/5/2010 08:40

Results look fine to me. Like the increase in the dividend, reduction in debt.

Cheers,
Steve.

[m.t.glass] 24/5/2010 07:33

"Cranswick Profits Soar"

says BFNnews.com


And this from Sharecast:

Cranswick serves up tasty profits
Mon 24 May 2010


LONDON (SHARECAST) - Pork products supplier Cranswick delivered a 26% surge in annual pre-tax profit and said it is encouraged by the positive start made in the current financial year.

The group, which is focusing on food production after the sale of its pet business, said pre-tax profit rose to £43.8m for the year ended 31 March 2010 from £34.7m the year before. Revenues were up 22% to £740m. Net debt reduced by £11.9m to £54.7m

"The company is well positioned to meet the increasing demand for UK pork products," said chairman Martin Davey.

Sales of cooked meats rose by 13%, sausages by 23% and bacon by 61% said Cranswick. The group has also seen increased spending on products such as air-dried bacon, premium sausages, fresh pork and ham.

Davey said the group is confident in the successful long term development of the business.

The board is proposing an increase in the final dividend of 15.6% to 17.0p.

[dnfa1975] 18/5/2010 06:53

'Sausage not steak' increases heart disease risk


Researchers believe it may be the salt, not the fat, that's the problem
Eating processed meat such as sausages increases the likelihood of heart disease, while red meat does not seem to be as harmful, a study suggests.
A Harvard University team which looked at studies involving over one million people found just 50g of processed meat a day also raised the risk of diabetes.
But there was no such risk from eating even twice as much unprocessed meat, such as beef, lamb or pork.

[m.t.glass] 30/3/2010 06:45

and again -

"..Cranswick anticipates that the Company's trading performance for the year to 31 March 2010 will be towards the upper end of market forecasts, reflecting the positive trading performance seen throughout the year..."

(from Q4 statement today)

[m.t.glass] 01/2/2010 13:54

Nice trading statement..

[cambium] 01/2/2010 13:38

this is so unloved?

[5jacko] 17/1/2010 18:47

broker upped the target to 845 I understand

[stevemarkus] 18/12/2009 10:40

Yes, I'm enjoying this too. Pleased with the gain since June, still happy to add on dips.

Cheers,
Steve.

[m.t.glass] 17/12/2009 22:16

Impressive surge this week and over the past 3 months..

[yf23_1] 17/12/2009 22:05

..and RSI still only 60 !

[tomesy27] 04/12/2009 13:06

Cranswick: capitalising on the current trend of increased demand for British pork

Growing revenue, net income and dividend, coupled with moderate gearing and market specialisation, would present a solid text book investment-grade business. Cranswick ticks these boxes.

[stevemarkus] 19/6/2009 14:54

I decided to take a small stake today having seen the dip. Should I be surprised to see a dip following an Investors Chronicle buy rec? Happy to buy a second tranche lower if they do go through 570p - I imagine the next level would be 540p and would be quite happy to get some at that price. Looks a nice, well-run company - I've been waiting since the last results to buy some of these.

Cheers,
Steve.

[omalaha] 19/6/2009 11:46

buy rec in investors chron today - looks like testing that 570 support at the mo.

[riskblue] 19/5/2009 14:33

I think it is like antiques - in time quality will out. One to tuck away and wait patiently.

[m.t.glass] 18/5/2009 10:02

Some snippets from the accompanying statement today:


"The decision was made last year to focus fully on the food business and last
month the Board announced the sale of the pet activities and that contracts had been exchanged for the acquisition of the Bowes of Norfolk pork processing
business..."


"This has been a successful year for the Company and the continued development
of the business was recognised by Cranswick's admission to the FTSE 250 during
the year which increases the potential investor base.


"Cranswick has a well invested asset base, is strongly cash generative, has
skilled operational management teams and is positioned in a number of growth
categories of the food sector. The Company has commenced the new financial year in line with management expectations and is well placed to continue its
successful development".




Cash generation strong


The cash generated from operations was extremely strong at GBP53.4 million, up
from GBP40.2 million the previous year. Working capital reduced by GBP0.4m which
was pleasing given the strong growth in sales. Tax, interest and dividend
payments amounted to GBP21.0 million, and the cash spent on the purchase of
fixed assets, as part of the strategy for continued growth, was GBP20.9 million
following the GBP25.3 million spent the previous year. This generated a cash
inflow of GBP10.9 million, leaving year-end borrowings of GBP66.6 million, 40
per cent of shareholders' funds. Interest cover improved from 8.4 times to 10.4 times.


In December the Company agreed new bank facilities for three years. As a result, the Company is well placed to continue its long-term growth strategy through a combination of further investment in fixed assets and acquisitions, as typified by the recently announced purchase of Bowes of Norfolk Limited, subject to clearance by the Competition Authorities.


The Board's strategy for the development of the business has delivered rising
profits and strong returns for Shareholders. Over the past 10 years compound
annual rates of growth in total sales, profit before tax, earnings per share and
dividends per share have all been well into double digits.



Outlook

Cranswick has a well invested asset base, is strongly cash generative, has
skilled operational management teams and is positioned in a number of growth
categories of the food sector. The Company has commenced the new financial year in line with management expectations and is well placed to continue its
successful development.

[m.t.glass] 18/5/2009 09:52

Highlights:


* Total sales up 9 per cent to GBP653m (2008: GBP599m)|
* Total pre-tax profit rose 9 per cent to GBP36.7m (2008: GBP33.7m)*|
* Recommended final dividend of 14.7p - up 10 per cent
* Earnings per share up 9 per cent at 53.7p (2008: 49.1p)*|
* Pet division sold since year end
* Contracts exchanged to acquire Bowes of Norfolk
* Shares admitted to FTSE 250


Full Results + Statements

[m.t.glass] 15/5/2009 08:35

Those comparison graphics in the header stopped updating after 2006. I will see if I can change them shortly.

[cambium] 15/5/2009 07:36

thats me out for now, better else where

[cambium] 15/5/2009 07:35

thats me out for now, better else where