Crawshaw chops profit guidance

Rising prices and tough trading conditions mean that meat-focused retailer Crawshaw now expects profits for the current year to fall below expectations.Shares were 24% down at 15:37 on Tuesday afternoon.The group - which owns 20 butchers in the north of England - said that sales in recent weeks have been below expectations, and like-for-like sales for the year-to-date are now 2% below the previous year. Market conditions are expected to stay "extremely tough" for the remainder of the year across the grocery retail sector. Margins this year are now 1 percentage point lower.Crawshaw has identified that the decline in sales is being driven by customers "trading down and making purchases last longer." As such, the company is seeking to recruit new senior marketing staff to broaden its range of products on offer. "Side dishes, desserts, sauces and more take-out options are all being considered," the group said."As a result of current trading results and additional recruitment costs, the Company now expects profits for the current financial year to be lower than previously anticipated."---BC