Kitwave Regulatory News (KITW)

2 May 2023

Kitwave Group plc

("Kitwave", the "Group" or the "Company")Trading Update

Kitwave Group plc (AIM: KITW), the delivered wholesale business, today announces a pre-close trading update for the six-month period ended 30 April 2023.

The Group's strong performance across all divisions continued throughout the first half of its FY23 financial year. Due to the seasonality of the business, as in previous periods, there is a heavier weighting towards trading in the second half of the year. The Board anticipates that the Group's results for the full financial year will be slightly ahead of market expectations.

The Board remains conscious of the wider macroeconomic environment including inflationary headwinds but believes that the Group is well-placed to mitigate these risks.

The acquisition of Westcountry Food Holdings Limited, a specialist fresh produce wholesaler, in December 2022 complements the Group's existing Foodservice division and enables the expansion of our reach into the South West. The integration of the business into the Group has been successful and it is performing in line with management expectations.

Paul Young, Chief Executive Officer of Kitwave, commented:

"I am pleased to report on the progress made by the Group in the six months ending 30 April 2023. Following a strong first half performance, and with the second half of the year typically driving increased trading, we expect full year results will be slightly ahead of market expectations.

"With the considerable opportunities still available, both in the form of organic developments and through strategic, complementary acquisitions in a largely fragmented wholesale market, we have an excellent platform for growth. We look forward to continuing to deliver value to the Group and its shareholders and updating the market on our continued progress."

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Company Overview

Founded in 1987, following the acquisition of a single-site confectionery wholesale business based in North Shields, United Kingdom, Kitwave is a delivered wholesale business, specialising in selling and delivering impulse products, frozen, chilled and fresh foods, alcohol, groceries and tobacco to approximately 42,000, mainly independent, customers.

With a network of 29 depots, Kitwave is able to support delivery throughout the UK to a diverse customer base, which includes independent convenience retailers, leisure outlets, vending machine operators, foodservice providers and other wholesalers, as well as leading national retailers. 

The Group's growth to date has been achieved both organically and through a strategy of acquiring smaller, predominantly family-owned, complementary businesses in the fragmented UK grocery and foodservice wholesale market.

Kitwave Group plc (AIM: KITW) was admitted to trading on AIM of the London Stock Exchange on 24 May 2021.

For further information, please visit: www.kitwave.co.uk.