Crawshaw Share Discussion Threads

[bigbigdave] 16/5/2014 07:47

Just out of interest, any vegetarian investors here?

[playful] 16/5/2014 07:44

Bring out the barbecues as Britain heads for a mini heatwave this weekend

[playful] 15/5/2014 19:53

No nothing to do with me.

[battlebus2] 15/5/2014 19:38

Did you take that snap by any chance playful?

[playful] 15/5/2014 19:26

And very nice it is too...

[battlebus] 15/5/2014 17:34

I thought it was time the header had a decent picture :))

[playful] 14/5/2014 08:01

Crawshaws get a mention in the Yorkshire Post this morning

[garbetklb] 13/5/2014 21:55

For the premium butchery market, I imagine they will be considering :

- Maintain a different brand
- Build a chain of premium branded butchers - single or individual names
- Maybe use this as the / one of the online brands?
- Premium products such as Givendale prime
- feed in the better quality meat from the Crawshaw purchasing operation
- need to maintain a full range of meat, irrespective of what's cheap to source today
- staffing - are there different requirements from Crawshaw shops? Pay differentials, especially in up market areas?

I'd be v interested to hear of the anticipated synergies.

Garbetklb

[briangeeee] 13/5/2014 21:11

I guess there are many small independents where net margins aren't great, and are ready to exit the trade.
The economics of being part of a larger group are probably attractive. Centralise admin, better negotiating power on the purchase side, some marketing to improve sales, etc.
They'll very likely want to be conservative still, and grow within cash limits.

[davidosh] 13/5/2014 18:58

I will have to upgrade my spreadsheet but it looks like revenues to January are likely to be more than £28m now. That is quite a significant jump from £22m and a whole 10% higher than forecasts. If those margins are preserved at the gross level with certain improvements to come at the net level then we are in for an excellent full years figures.

I am interested to know the strategy for the premium butchery market.

[cockerhoop] 13/5/2014 12:22

Does anyone know the percentage of internationally sourced meat compared to home produced currently sold by Crawshaws?

[playful] 13/5/2014 10:14

Funnily enough I pass this place every week! Great countryside but going up Garrowby hill behind a slow moving vehicle can be annoying especially if it's pulling a caravan.

[briangeeee] 13/5/2014 09:45

Any farmer/other living near York, who'd like to find more about their new beef supply, they're having an open day on 20th May -

[davidosh] 13/5/2014 09:04

Established in 1994 have been serving the local community ever since. Owner Bill Burton has over 40 years experience in the meat industry, having served his apprenticeship in 1963.


I make that 51 years experience now so maybe he is ready to take a gentle foot off the gas and needed a succession plan via trusted take out ? Interesting move into the upper end of the market ahead of the online launch !

[shanklin] 13/5/2014 08:38

davidosh

Helpful to see the acquisition cost in the broker note.

Thank you, Martin

[davidosh] 13/5/2014 08:36

Well that was a surprise !

This is what the broker has to say this morning...


Crawshaw Group*# - Buy – Acquisition of East Yorkshire Beef Ltd

Market Cap £22m Price 37p Target 45p (from 40p)


Crawshaw has this morning announced that it has acquired a single site premium butcher east of York, opening up a second potential growth segment of the market to the Group. The business has been built up over a number of years, with premium locally reared product being sourced. The company is being acquired for c.£220k, against historic revenue of c.£1.1m and PBT of £22k. We understand that an underlying EBITDA of c.£100k has historically been achieved, when taking into consideration non-recurring costs.

For the time being, we leave our forecasts unchanged (FY 2015E PBT £1.3m, EPS 1.8p), assuming this is one of the three store openings pencilled in for the current financial year, although there does remain the potential for an additional opening.

We view this as a highly positive move for Crawshaw given that it opens up the potential to expand into the premium end of the market, complementing the roll out of the core value stores. We maintain our Buy recommendation and raise our share price target to 45p (40p) based on an EV/EBITDA multiple of 14x to reflect the progress being made across the business and significant growth potential.

[playful] 13/5/2014 08:17

Further details on our new shop:

W.F.Burton Butchers are located on Market Place, Pocklington on the outskirts of York.

Established in 1994 have been serving the local community ever since. Owner Bill Burton has over 40 years experience in the meat industry, having served his apprenticeship in 1963.

Bill has learnt all aspects of the meat trade having learnt the skills of butchery he has also held the role of slaughterhouse manager and livestock buyer before returning to traditional butchery practices.

Bill's massive amount of experience in these positions have made him consider quality over cost and is proud to be one of the few stockists of Givendale Prime Beef he goes on to say,

"I was the first butcher to sell Givendale Prime. From the first time I tried it I knew we had something different, something special. My customers soon started to remark about how well the beef ate. The word quickly spread and now people come from miles around to buy Givendale Prime at my shop. The eating quality never varies, it is always exceptional."

hxxp://www.yell.com/biz/w-f-burton-york-1011268/

[drsmessguide] 13/5/2014 07:12

Well that was out of the blue, expect profits to rise to 100-150k over 12 months , more on the bottom line, excellent little company

[playful] 13/5/2014 07:09

Sounds good..

[shanklin] 13/5/2014 07:07

Blimey, Richard Rose is quick off the mark. I only asked davidosh yesterday if there is a premium element to CRAW's offer.

[battlebus2] 13/5/2014 07:07

Crawshaw Group plc (the "Company") (AIM: CRAW), announces that on 12 May 2014 it acquired 100% of the share capital of East Yorkshire Beef Limited.

This business operates one premium sector butchers shop in Pocklington, east of York which, for the financial year ended 5th April, 2014 generated a turnover of c. £1.1m and profits before tax of £22k. The acquisition gives the Company a foothold in a completely different sector of the market.

The Chairman, Richard Rose comments :
"We are very excited about this new development as it gives us a position in the premium segment of our market and provides both a well established retail store and a new supply chain which we could expand across other potential sites and online if we choose. Furthermore we believe there are operational synergies that can rapidly enhance the profitability of the acquired store."

[playful] 12/5/2014 22:03

Great to see Hargreave Hale have joined us and with over 5%...

[shanklin] 12/5/2014 13:32

davidosh, Thank you for your kind suggestion :-)

[battlebus2] 12/5/2014 13:21

Discretionary clients at Hargreave Hale popping up again :))

[davidosh] 12/5/2014 13:02

Shanklin....If you pick up 50 packs of the award winning sausages and bring them to Mello next week you will be able to sell them at twice the price to all the investors and shareholders who are desperate to try them ! lol It will pay for your trip.

Personally I think the online service when it is available is going to be a great success and will get lots of orders from those who buy in bulk like student houses and big families who are also the ones looking for the cheaper prices that Crawshaws are renowned for.