Cranswick churns out 27pc growth in first quarter

Meat products producer Cranswick churned out impressive revenue growth in the first quarter of the year and stated its confidence of hitting full year targets.

Sales in the three months to 30 June charged 27% higher than the first quarter last year, with like-for-like revenue increasing 21%.

Growth was driven by domestic volume growth described as "strong", with all product categories making a positive contribution.

Cranswick has been facing rising input costs, which it has managed to "partially mitigate".

The full year outlook remains unchanged and management continue to be confident in the long-term development of the business.

Net debt rose to £18m from £11m three months before amid investment to add capacity and capability, with progress made on a new purpose-built 'continental products' factory in Bury, Greater Manchester, which will consolidate current production from the Group's two existing facilities and provide substantial additional capacity to support future growth of products such as continental meats, antipasti, pâté, continental cheeses, pizza toppings and fresh Italian pasta.

Investment was continued in pork processing facilities both at Preston near Hull and at the recently acquired Ballymena site in Northern Ireland, which will increase pig processing capacity and should drive further operating efficiencies.