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(Sharecast News) - Kitwave Group said in an update on Wednesday that trading for the six months ended 30 April was in line with expectations, with a recovery in hospitality-related demand offsetting early weakness in its foodservice division.
The AIM-traded group reported robust like-for-like revenue growth in its retail and wholesale division, while foodservice performance improved toward the end of the period as hospitality activity picked up ahead of Easter.
It noted that short-term additional costs were incurred during the launch of its new foodservice distribution centre in the south west, reflecting a deliberate investment to maintain service levels during the transition.
The remainder of the group's cost base remained consistent with expectations, despite pressure from factors such as increased National Insurance costs and higher fleet-related depreciation.
Kitwave said its recent acquisition of Creed Foodservice, its largest to date, was continuing to perform well.
The firm said it expected to begin realising synergy benefits from Creed in the second half of the year, with further gains anticipated through IT system integration in early 2026.
It said the acquisition had enabled the group to establish a national foodservice network, improving both customer reach and distribution efficiency.
As in previous years, Kitwave said its performance would be weighted to the second half due to seasonal factors, adding that it remained confident in delivering full-year results in line with market expectations.
"It has been a good first half in terms of trading and operational performance, with the group on track to meet its full year expectations," said chief executive officer Ben Maxted.
"The integration of Creed is progressing well, with the team working to maximise delivery efficiencies to be gained from our national network and, ultimately, using our expanded scale to benefit our independent customers.
"We remain focused on delivering value to our customers and shareholders, and we look forward to updating the market further when we release our half-year results."
At 1140 BST, shares in Kitwave Group were down 0.15% at 305.55p.
Reporting by Josh White for Sharecast.com.
