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Cranswick shares look cheap: Cranswick, Britain’s largest sausage maker, said that it had enjoyed a strong finish to the year on rising sales of fresh pork — the sort of encouraging performance that underpins why we think the shares make a good addition to any portfolio. The FTSE 250-listed company boasts a solid balance sheet, excellent cash generation and it likes to return that cash to shareholders through regular dividend payments. Sales of pork products during the three months to the end of March were 4% higher than the same period a year earlier, and up from 2% growth in the third quarter. That second half sales performance meant full year sales were up 1%, a steady improvement on the sluggish first-half. Cranswick has also been taking greater control of its cost base and supply chain by expanding its pig breeding and growing facilities. The company now supplies more than 20% of its weekly meat demand of some 50,000 pigs from its own farms in the U.K. The acquisition of the pig farming business and investment into new production facilities saw debt levels increase at Cranswick and the company should finish with net debt at around £17 million. However, with strong cash generation the debt levels are forecast to reverse to net cash of almost £5 million within 12 months’ time. The shares have had a quiet year so far, up just 2.4%, which is well behind the wider FTSE 250 that has risen 9.8% so far. The shares are trading on a forecast price-earnings ratio of 14.6 times, falling to 13.8. This looks fair given the track record, cash generation and strong balance sheet. Cranswick at £14.13+13p Questor Says “Buy”.
How many shares do Afriag hold?
Hold Cranswick for the long term: Cranswick, Britain’s largest pork processor said that it was on target to increase profits for the full year despite sales remaining largely flat across the first six months of the year when compared to the same period last year. Pig prices have fallen from a record high of 173p per kilogram in December last year, to about 155p. Mark Bottomley, Finance Director at Cranswick, said that while lower pig prices are feeding through into profits there will be a time lag. So, while pig prices are falling the profit margin at 5.4% across the first half is similar to the end of last year. Analysts from broker Investec estimate first half pretax profits of around £25.5 million and market consensus is for full year pretax profits to increase by about 3% to £56.3 million. Cranswick has also been taking greater control of its cost base and supply chain by expanding its pig breeding and growing facilities. The company now supplies more than 20% of its weekly meat demand from its own pig farms after buying East Anglian Pigs in April of last year. The acquisition of the pig farming business and investment into new production facilities saw debt levels increase at Cranswick and the company finished with net debt of £17 million last year. However, with strong cash generation this is falling sharply and Ms Mallard expects the company to finish with net cash of £1 million in about six months’ time. We still think this company is a core holding as it delivers a steady profit performance and decent dividend growth but, for now, it remains a hold. Cranswick at £12.89-36p Questor Says “Hold”.
Bloomberg article today of Chinese companies buying food companies? They paid $7 billion for Smithfield USA and took on the debts. Cranswick state 30 % of pork products exported with much going to China and setting up a trading office in China. Cranswick send many containers of pork products, feet ,maws etc so have a product range there. Smithfield went for $34 per share, hope Cranswick could see same value?? Smithfield are Global and far larger than Cranswick but the Bloomberg article was very interesting and thought provoking
Anybody any clues as to share drop, sound company, shrewd directors, cannot understand???? Known Adam Couch since he started there as an ex accountant in Leeds at WBS and very competent indeed. May i say at this price a bargain. Looking fwd to valued comments. I do hold considerable stock in this plc as I worked long side them for many years and have a great respect for the company.
Cranswwick: Investec lifts target to 1,230p from 1,190p, reiterates buy.
Cranswick: Numis ups target price from 911p to 1012p maintaining a hold rating.
Cranswick: Investec ups target price from 920p to 1005p retaining a buy recommendation. Panmure Gordon revises target price from 800p to 1000p and reiterates a hold rating. Numis raises target price from 875p to 911p downgrading to hold. Peel Hunt increases target price from 750p to 900p keeping a neutral rating.
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Cranswick: Numis raises target price from 838p to 875p, maintaining an add rating.
The soaring price of grains have been having their impact on the entire food chain, as they are the basic feed stock of animals such as pigs. Pork products group Cranswick had therefore been seeing cost inflation – and that’s why the shares were weak of late. However, this week’s update showed Cranswick was able to pass on some of the costs to supermarkets – sending its shares up 10% on Monday. One of the group’s competitors, Dutch group Vion, had also been experiencing financial difficulties and put its UK business up for sale last week. The business has a number of factories across the UK, but is based in Livingston in Scotland. While the future of its competitor is uncertain, Cranswick is in a strong position to win new business while this rival sorts out its woes. The shares are trading on a March 2013 earnings multiple of 10.3 falling to 9.8, and yielding a prospective 3.8% rising to 4%. The valuation looks pretty full at this level so The Telegraph´s Questor team maintains a hold.
Net debt reduced to £32.2m during the period compared to £48.2m for the same period last year. "The board currently anticipates a more balanced trading performance between the first and second halves compared to last year when there was a strong second half bias. The strategy for the development of the business remains unchanged with future growth being generated by a combination of acquisitions and organic initiatives".
Bacon and sausage supplier Cranswick served up a hefty increase in half year profit, but warned higher pig prices during the period was an ongoing concern. Pre-tax profit rose 21% to £22.5m for the six months ended September 30th, while revenues climbed 6.0% to £418.6m. Cranswick's Chairman, Martin Davey, said he was pleased to report continued sales growth, in what continues to be a difficult economic and consumer environment. "Rising input costs were a feature of trading during the period and this has continued into the second half, although efficiency improvements brought about by investment undertaken by the business and ongoing constructive pricing discussions with customers have helped offset the full impact of this," Davey explained. Underlying revenues increased by 5.0% while earnings per share advanced 23% to 35.8p. Cranswick said Kingston Foods, which it bought at the end of June, made an encouraging contribution since acquisition, boosting Cranswick's customer portfolio and its cooked meat production capability.
Highlights: · Reported revenues up 6 per cent to £418.6m (2011: £393.9m) · Underlying revenues increased by 5 per cent * · Profit before tax rose by 21 per cent to £22.5m (2011: £18.5m) · Earnings per share up 23 per cent to 35.8p (2011: 29.2p) · Adjusted earnings per share 19 per cent higher at 35.8p (2011: 30.1p) · Dividend increased to 9.4p per share (2011: 9.0p) · Net debt £32.2m (30 Sept 2011: £48.2m) · Kingston Foods Limited acquired on 29 June 2012
Cranswick's Chairman, Martin Davey, said: "It is pleasing to report continued growth in sales, in what continues to be a difficult economic and consumer environment, reflecting the ongoing popularity of pork with the consumer, driven by both the versatility and the low relative price of pork to other proteins. "Kingston Foods has made an encouraging contribution to the Group since acquisition and has further extended Cranswick's customer portfolio and strengthened the Group's cooked meat production capability. "Rising input costs were a feature of trading during the period and this has continued into the second half, although efficiency improvements brought about by investment undertaken by the business and ongoing constructive pricing discussions with customers have helped offset the full impact of this. "The Board currently anticipates a more balanced trading performance between the first and second halves compared to last year when there was a strong second half bias. The strategy for the development of the business remains unchanged with future growth being generated by a combination of acquisitions and organic initiatives".
Cranswick's first-half profit rises but higher pig prices a concern 26 November 2012 07:15 Nov 26 (Reuters) – British pork processor Cranswick Plc <CWK.L> reported a 21 percent rise in half-year profit but said that higher pig prices witnessed during the period had continued into the second half of the fiscal year. The company last month warned that pig prices in the United Kingdom were at record levels and were expected to continue rising, driven by high livestock feed prices and implementation of animal welfare norms in Europe.[ID:nL4E8JN3Y6] Cranswick, which processes and supplies fresh pork, sausage, bacon, cooked meats, charcuterie, pastry products and sandwiches to food retailers, said discussions on price increases with its customers were underway and were progressing well. The company said it expected a more balanced trading performance between the first and second halves, compared with last year when there was a strong second-half bias. April-September pretax profit rose to 22.5 million pounds ($36.03 million) from 18.5 million pounds a year earlier. Revenue increased 6 percent to 418.6 million pounds, with underlying revenue up 5 percent. Cranswick, which supplies to brands such as Weight Watchers <WTW.N> and celebrity chef Jamie Oliver's food products range, said sausage sales increased 15 percent despite unusually soggy weather in the UK. The company, whose supermarket customers include J Sainsbury <SBRY.L> and Tesco Plc <TSCO.L>, has so far benefited from cost-conscious Britons opting for pork as cheaper alternative to beef, lamb and poultry. The Hull-based company raised its interim dividend to 9.4 pence per share from 9 pence a year earlier. Shares in Cranswick closed at 739 pence on the London Stock Exchange on Friday. They have fallen more than 9 percent in the last six months.
Cranswick: Panmure Gordon reduces target price from 875p to 800p, hold rating kept.
Bacon and sausage supplier Cranswick said underlying turnover in the six months ended September 30th rose five per cent from the previous year as shoppers opted for relatively lower priced pork. Cranswick said it expects the performance of the business to be in line with management's expectations. "Both the versatility and the low relative price of pork to other proteins are key to this positive trend," it said in a copmany statement. Total sales for the six months were six per cent higher after contributions from Kingston Foods, which it bought at the end of June 2012. "Kingston Foods has, as was anticipated, made a very encouraging contribution to the group since acquisition and has further extended Cranswick's customer portfolio and strengthened the group's cooked meat production capability," the group said. Net borrowings were down on the previous quarter end and were well below those of a year ago, despite the cash spent on the acquisition of Kingston Foods and the on-going capital investment programme. Cranswick has unsecured facilities of £100m. "With experienced management at all levels of the group, a strong range of products, a well invested asset base and a robust financial position, the board remains confident in the continued long term development of the business," it said.
Bernard Hoggarth, the now former Chief Executive Officer of Cranswick, sold all of the 30,2225 shares he exercised under the company's long term incentive plan, just two days after he signed off from the FTSE 250 food producer. Hoggarth, who will stay on as Commercial Director on a part-time basis, sold the shares at 850.98p each for a total of £257,209. Hoggarth's role as CEO came to an end on a positive note, with the firm reporting a solid start to its new financial year.
In the Telegraph, Questor ponders pork products maker Cranswick. The firm’s bare numbers look good, trading on 11 times this year’s earnings and yielding 3.5%. The trouble is, rising costs of corn, on which pigs are partly fed, will feed into the cost chain. Cranswick is also trading near the top of its range since the 2008 crisis. On that basis Questor says: hold.
Acquisition of cooked meats business Cranswick today announces the acquisition of the entire issued share capital of Kingston Foods Limited ("Kingston"). Kingston is a producer of premium cooked and roasted meat products and at 27 January 2012 had gross assets of £3.7 million. The acquisition of Kingston strengthens Cranswick's cooked meat production capabilities, further diversifies its product range in a growing market and broadens the Group's customer base. Tony Turner and Paul Williams, the vendors, will continue in their current positions as managing director and operations director respectively. We welcome Tony, Paul and their colleagues to the Cranswick group.
http://www.investegate.co.uk/Article.aspx?id=201207020700075739G
In the Telegraph, Questor is into his sausages, Cranswick sausages to be precise. The company has had a strong start to the year, up seven per cent while also organising a smooth transition of senior management when the current Chief Executive quits in August. With revenues up 8.2 per cent, profits up 2.7 per cent and the company having enough confidence to hike the dividend Cranswick is a hold.
Panmure Gordon maintained its "hold" recommendation and 875p price target on Cranswick (CWK) ahead of its final results next week. This is despite the belief that the food supplier will show improved margin performance in the second half of the year to March. The broker recognises that Cranswick remains one of the quality plays with UK mid to small cap food sector but believe that this is reflected in its current earnings multiple of 11.4 times.