REG - Kitwave Group PLC - Trading Update

KitwaveAnnouncement

02/05/2024 07:00

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RNS Number : 9005M  Kitwave Group PLC  02 May 2024

2 May 2024

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
2024 (the "Period').

 

The Board is pleased to report that the Group continues to trade in line with
current market expectations for the full year ending 31 October 2024. This
performance will reflect both continued organic growth and the benefit from
acquisitions made over the past 18 months.

 

Operating profit performance during the Period is expected to be slightly
behind the prior year. This reflects lower levels of demand in the hospitality
customer base of the higher margin Foodservice division, due to a historically
high and sustained period of wet weather over recent months. The Group has
also increased investment in its infrastructure ahead of the revenue
generating opportunities associated from these investments. Some of the
benefits of these investments, in addition to the H2 inclusion of trade from
the recent acquisition of Total Foodservice, will further increase this year's
weighting of trading toward the second half of the year.

 

During the Period, the Group completed two acquisitions in its Foodservice
division. In November 2023, it acquired Wilds of Oldham, a composite,
family-run drinks wholesaler supplying the on-and-off trade based in Oldham,
Manchester, and in March 2024, the Group acquired Total Foodservice Solutions,
a leading independent food wholesaler in the North of England. The integration
of both businesses into the Group is going well.

 

Overall, the Board remains confident in the outlook of the Company.

 

Ben Maxted, Chief Executive Officer of Kitwave, commented:

 

"I am pleased to report that the Group has continued to make progress towards
its operational and financial targets and that we remain confident of
achieving a positive outcome for the full-year results.

 

"The Group has an excellent platform for growth in the form of organic
developments and incorporating the full benefits from its strategic
acquisitions. The most recent acquisitions demonstrate that we continue to
capitalise on the opportunities available to us in a fragmented delivered
wholesale market.

 

"Kitwave is well positioned to continue delivering value to its customers and
shareholders and we look forward to updating the market on further progress in
due course."

 

- Ends-

 

For further information please contact:

 

 Kitwave Group plc                                    Tel: +44 (0) 191 259 2277

 Ben Maxted, Chief Executive Officer

 David Brind, Chief Financial Officer

 www.kitwave.co.uk (http://www.kitwave.co.uk/)
 Canaccord Genuity Limited                            Tel: +44 (0) 20 7523 8150

(Nominated Adviser and Sole Broker)

 Bobbie Hilliam

 Alex Orr
 Yellow Jersey PR                                     Tel: +44 (0) 20 3004 9512

(Financial media and PR)

 Sarah Hollins

 Shivantha Thambirajah

 Bessie Elliot

 

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 32 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 was admitted to trading on AIM of the London Stock Exchange
in May 2021.

 

For further information, please visit www.kitwave.co.uk
(http://www.kitwave.co.uk) .

 

 

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