REG - Cranswick PLC - Interim Results
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251125:nRSY8030Ia&default-theme=true
RNS Number : 8030I Cranswick PLC 25 November 2025
CRANSWICK plc: INTERIM RESULTS
Record investment driving strong earnings growth
25 November 2025
Cranswick plc ("Cranswick" or "the Company" or "the Group"), a leading UK food
producer, today announces its unaudited results for the 26 weeks ended 27
September 2025.
Financial highlights(1): H1 2025 H1 2024 Change
Revenue £1,468.3m £1,329.9m +10.4%
Adjusted Group operating profit £113.0m £99.6m +13.5%
Adjusted Group operating margin 7.7% 7.5% +21bps
Adjusted profit before tax £105.1m £95.8m +9.7%
Adjusted earnings per share 144.4p 132.1p +9.3%
Return on capital employed(3) 18.2% 18.7% -51bps
Net debt (excluding IFRS 16) £127.3m £0.9m +£126.4m
Interim dividend per share 27.0p 25.0p +8.0%
Statutory measures: H1 2025 H1 2024 Change
Group operating profit £117.1m £94.0m +24.6%
Profit before tax £109.2m £90.2m +21.1%
Earnings per share 150.2p 124.0p +21.1%
Net debt (including IFRS 16) £272.3m £107.5m +£164.8m
Financial highlights:
· Strong volume-led revenue growth of 10.4% with like-for-like(2) revenue
7.9% ahead
o Revenue growth across all categories underpinned by 7.0% volume growth in UK
food business
o Poultry revenue up 18.5%, reflecting new business wins, and now represents
20.9% of Group reported revenue
o Gourmet Products revenue increased 15.9% with a strong contribution from
Blakemans
o Pet Products revenue 13.6% ahead reflecting expansion of the Pets at Home
relationship
· 21bps increase in adjusted operating margin to 7.7%, driven by the
growth and strong performance of our integrated poultry supply chain,
investment in process automation, excellent capacity utilisation and tight
cost control
· Free cash conversion(1) of 89.9%, with strong ROCE(3) of 18.2%
following record capital expenditure and acquisitions
· Net debt pre-IFRS 16 up from £0.9m to £127.3m reflecting record
capital expenditure, the Blakemans acquisition and working capital expansion
from new long-term strategic partnerships and strong Christmas stock build
· £360m refinancing completed providing generous headroom for future
growth
· Outlook for the financial year ending 28 March 2026 remains in line
with the Board's expectations
Strategic highlights:
· Total capital spend of £89m with significant progress on pipeline of
major capital projects
o £30m expansion of the two added-value Hull poultry sites now completed
o £25m Worsley houmous and dips facility fit out nearing completion with own
label business now secured
o £13m investment in Eye throughput expansion ongoing
o £100m Hull pork primary processing site expansion progressing through
initial phase
o £14m additional investment at the Lincoln pet food facility following newly
secured premium business
o £25m spent on farming and feed milling during the period
· Fridaythorpe feed mill purchase completed on 19 September 2025,
increasing pig feed self-sufficiency
· Blakemans and JSR Genetics integration well progressed with both
businesses performing ahead of expectations
· Independent veterinarian review of pig farming operations now concluded
with summary report published and recommendations now being actioned(4)
Adam Couch, Cranswick's Chief Executive Officer, commented:
"Our positive start to the year continued through the second quarter, with
strong volume-led revenue growth across all product categories driven by new
business wins, a positive contribution from recent acquisitions, strengthened
alignment to our key, long-standing retail partners and our unrelenting focus
on quality, service and innovation across our premium added-value product
ranges.
"Demand for our core pork and poultry categories remains robust, underpinned
by their relative affordability and consumer preference for natural protein as
part of a healthy, balanced diet. We are well placed to maintain the
positive momentum generated during the period into the second half of the
financial year as we build towards our peak Christmas trading period.
"We invested £89m in our industry-leading asset base during the period to
provide the platform for further growth and to generate strong returns. This
investment will expand capacity, drive automation and enhance operating
efficiencies, allowing us to strengthen our capability to deliver premium,
added-value products for our customers.
"We continue to invest at pace across our pig and poultry farming operations
with £25m spent in the period to increase security of supply and transition
to lower poultry stocking densities. The addition of the Fridaythorpe feed
mill brings greater self-sufficiency in pig feed production for our northern
pig farms, and we are delighted to welcome the full Fridaythorpe team to
Cranswick.
"I would again like to thank our brilliant Cranswick colleagues for their
continued support and commitment. Our continued positive progress is made
possible by our industry-leading asset infrastructure, robust financial
position and the unrivalled capability of our colleagues across the
business. These strong foundations will allow Cranswick to continue to
prosper both in the current financial year and over the long-term."
1 Adjusted and like-for-like references throughout this statement refer to
non-IFRS measures or Alternative Performance Measures ('APMs'). Definitions
and reconciliations of the APMs to IFRS measures are provided in Note 15.
2 Like-for-like revenue references exclude the current year contribution from
current and prior year acquisitions prior to the anniversary of their
3 purchase.
Return on capital employed is defined as adjusted operating profit divided by
the sum of average opening and closing net assets, net debt/(funds), pension
(surplus)/liability and deferred tax.
4 Summary of Findings and Recommendations from the Independent Veterinarian
Review of Cranswick's Pig Farming Operations can be found here:
www.cranswick.plc.uk/news (http://www.cranswick.plc.uk/news)
Presentation
A presentation of the results will be made to analysts and institutional
investors today at 9.30am. Analysts and institutional investors will also be
able to join the presentation via a conference call facility. The slides
will be made available on the Company website. For the dial-in details
please contact Sodali & Co on the details below.
Enquiries:
Cranswick plc
Mark Bottomley, Chief Financial Officer
01482 275
000
Sodali & Co
Ben Foster / Louisa Henry
+44 207 100 6451
cranswick@sodali.com
Note to editors:
1. Cranswick is a leading and innovative supplier of premium, fresh
and added-value food products. The business employs over 16,000 people and
operates from 23 well-invested, highly efficient facilities in the UK.
Cranswick was formed in the early 1970s by farmers in East Yorkshire to
produce animal feed and has since evolved into a business which produces a
range of high-quality, predominantly fresh food, including fresh pork,
poultry, convenience, gourmet products and pet food. The business develops
innovative, great tasting food products to the highest standards of food
safety and traceability. The Group supplies the major grocery multiples as
well as the growing premium and discounter retail channels. Cranswick also
has a strong presence in the 'food-to-go' sector and a substantial export
business. Results for the 52 weeks to 29 March 2025 showed revenue of
£2,723.3m and profit before tax of £181.6m. For more information go to:
www.cranswick.plc.uk (http://www.cranswick.plc.uk)
2. At Cranswick, it is second nature for us to protect and nurture our
environment while supporting people and communities to thrive. Guided by our
sustainability strategy, Second Nature, we have seamlessly integrated our
sustainability commitments into the core of our business model, which in turn
shapes our decision-making, culture, and actions. For more information on our
Second Nature strategy, please visit: www.cranswick.plc.uk/sustainability
(http://www.cranswick.plc.uk/sustainability)
Summary
Trading during the period has been strong with robust demand across all
product categories. Consumers continue to appreciate the relative
affordability, versatility and quality of our core pork and poultry
products. Premium added-value ranges performed particularly well, supported
by a strong barbecue season and category expansion from new super-premium
product launches. Gourmet Products revenue was significantly ahead of the
prior year period with a strong contribution from Blakemans, the recently
acquired specialist food service sausage business. Poultry revenue was well
ahead, driven by stronger fresh poultry pricing and the onboarding of premium
retail business at the added-value Cooked and Prepared Poultry sites. Pet
revenue grew strongly as the relationship with Pets at Home continues to
develop.
In total, we invested £89m across our processing and farming asset base
during the period to support future growth and drive further operating
efficiencies.
We spent £64m across our processing facilities in the first half of the year.
The £30m expansion project at the Cooked and Prepared Poultry sites is now
complete. The £25m fit out of the Worsley houmous and dips facility is
nearing completion, expanding capacity to support our fast-growing Ramona's
houmous and dips range alongside newly secured own-label listings. The £13m
investment in Eye throughput expansion is progressing in line with
expectations, as is the £100m investment at our Hull pork primary processing
facility. This multi-phased investment programme will ultimately lift
capacity from 35,000 to 50,000 pigs per week at the site.
We spent £25m across our pig and poultry farming and feed milling
activities. We purchased the Fridaythorpe feed mill towards the end of the
period, significantly expanding our feed milling self-sufficiency. The
integration of JSR Genetics, acquired towards the end of the prior year, is
driving greater control over our pig genetics supply. We have completed the
move to lower poultry stocking densities, having fully secured the necessary
space, and the £7m investment to expand incubatory capacity at the
Kenninghall site is progressing to plan. We continue to invest at pace
across our farming operations to ensure we have the required quality and
quantity of pigs and poultry to service our customers' requirements.
Results
Total revenue in the 26 weeks to 27 September 2025 was £1,468.3m, 10.4%
higher than the £1,329.9m reported in the corresponding period last year.
Adjusting for the contribution from acquisitions made in the current and prior
period, up to the anniversary of their purchase, revenue increased by 7.9% on
a like-for-like basis.
Adjusted profit before tax for the period at £105.1m was 9.7% higher than the
£95.8m reported in the corresponding period last year. Adjusted earnings
per share on the same basis was up 9.3% at 144.4p compared to 132.1p in the
equivalent period last year, reflecting the growth in adjusted profit before
tax.
Cash flow and financial position
Net debt, excluding IFRS 16 lease liabilities, at the end of the period
increased to £127.3m (September 2024: £0.9m) reflecting strong capital
expenditure, the Blakemans acquisition and working capital expansion,
reflecting new long-term strategic partnerships and strong Christmas stock
build. Net debt, including IFRS 16 lease liabilities, at the end of the
period was £272.3m (September 2024: £107.5m). Free cash conversion at
89.9% is in line with our medium-term target of 90.0%.
During the period the Group refinanced its banking facility on more favourable
terms. The new agreement, which comprises a revolving credit facility of
£360m, is unsecured and runs to July 2029 with the option to extend by a
further two years. A further £90m can be accessed on the same terms at any
point during the term of the agreement. The new facility replaces the old
£250m revolving credit facility and provides comfortable headroom to support
future growth and investment.
Dividend
The interim dividend is being increased by 8.0% to 27.0p per share from 25.0p
per share previously. The interim dividend will be paid on 23 January 2026
to Shareholders on the register at the close of business on 12 December 2025.
Outlook
We have delivered a very positive first half with record investment across our
asset base, accretive acquisitions and double-digit, volume-led revenue growth
driving strong earnings growth. We are accelerating the pace at which we
invest to capture efficiency gains through process automation and building
supply chain resilience. Strong demand for our premium pork and poultry
categories reflects the UK consumers' desire for high quality, healthy,
nutritious food which is both versatile and great value. The positive
trading momentum generated during the first half of the year has continued
into the third quarter as we build towards our peak Christmas trading
period. Notwithstanding this positive progress, we remain mindful of current
market and wider economic and geopolitical conditions and so our outlook for
the current financial year ending 28 March 2026 remains in line with the
Board's expectations.
The Board is encouraged by the continued strategic progress of the business
and is confident that focus on the strengths of the Company, which include its
long-standing customer relationships, breadth and quality of products,
industry leading asset infrastructure and robust financial position, will
support the further successful development of the Group both in the current
financial year and over the longer term.
Operating review
Revenue and adjusted operating profit
H1 2025 H1 2024 Change Change
(Reported) (Like-for-like)*
Revenue £1,468.3m £1,329.9m +10.4% +7.9%
Adjusted Group operating profit* £113.0m £99.6m +13.5%
Adjusted Group operating margin* 7.7% 7.5% +21bps
Group operating profit £117.1m £94.0m +24.6%
(*) See Note 15
Revenue
Reported revenue increased by 10.4% to £1,468.3m, with volumes 6.6% ahead.
On a like-for-like basis, revenue increased by 7.9%. Revenue from UK food
was ahead by 9.5% underpinned by volume growth of 7.0%. Poultry revenue grew
by 18.5%, driven by strong growth across Cooked, Prepared and Fresh
categories, and now represents 20.9% of Group reported revenue. Gourmet
Products revenue was ahead by 15.9% following the acquisition of Blakemans,
completed on 16 May 2025. Pet Products revenues were 13.6% ahead reflecting
expansion of the Pets at Home relationship.
Adjusted Group operating profit
Adjusted Group operating profit was 13.5% higher at £113.0m with adjusted
Group operating margin up 21bps to 7.7%. Higher Group operating margin
reflected the growth and strong performance of our integrated poultry supply
chain, investment in process automation, excellent capacity utilisation
following volume growth and a continued focus on cost control.
Category review
FOOD SEGMENT
Fresh Pork
Fresh Pork revenue was 5.0% ahead of the prior year period and represented
23.4% of Group revenue. Growth reflected volume driven demand across retail,
wholesale and export channels.
Retail and wholesale channel revenue increased by 0.4% with volumes 4.3%
ahead. This was driven by increased demand, partly offset by lower wholesale
market pricing. Export revenue was 15.4% ahead with strong volume growth
supported by marginally higher pricing from China and other Far Eastern
markets, following the reinstatement of the Norfolk site's China export
license in December 2024.
Fresh Pork, agricultural operations
We have continued to invest in and grow our pig farming and feed milling
operations through both organic investment and acquisition. During the
period, we have invested in our farming asset base whilst increasing the size
and scale of our indoor and outdoor pig herds, with the total number of pigs
on the ground now 13% ahead of September 2024.
We purchased the Fridaythorpe feed mill from AB Agri Limited on 19 September
2025. The site is located in East Yorkshire and all existing employees have
transferred following the change in ownership. Alongside ongoing capacity
expansion at our existing North Lincolnshire pig feed mill, this purchase has
the potential to increase our self-sufficiency in pig feed milling to more
than 40% and drive supply chain efficiency benefits.
We are the only UK processor with our own pig genetics production capability,
having acquired JSR Genetics towards the end of the prior year. Integration
into the Group is progressing ahead of expectations with available genetics
production capacity now fully utilised from internal demand. We are now
investing to further expand production capacity. Seamless feedback from our
downstream breeding, rearing and processing operations, and enhanced genetic
selection will drive benefits across farm productivity, animal welfare and
product quality.
Finished pig numbers increased by more than 9% versus the prior period,
driving self-sufficiency of almost 55% despite growth in demand from our three
primary processing facilities and downstream added-value pork operations. We
have invested £16m across our pig farming operations, including the
Fridaythorpe purchase, throughout the first half of the year and more than
£110m over the past 5 years.
This continued investment is increasing our self-sufficiency whilst driving
efficiencies through greater control over key feed and genetic inputs. We
are committed to ongoing investment across our pig farming supply chain to
ensure that we can supply the right quality and quantity of pigs to meet the
needs of our strategic retail partners.
The independent veterinarian review of pig farming operations has now
concluded and, on 11 November 2025, we published the summary of findings and
recommendations (to see the report please go to: www.cranswick.plc.uk/news
(https://www.cranswick.plc.uk/news) ). We accept in full the findings of the
report and we will action the recommendations to further improve our practices
related to the health and welfare of the pigs that we produce. We are
committed to continue strengthening our animal welfare standards across our
pig and poultry farming operations.
Fresh Pork, primary processing
All three primary processing sites increased production volumes with the total
number of UK pigs processed increasing by almost 6% compared to the same
period last year. A proportion of this additional throughput drove higher
Fresh Pork volumes through retail and wholesale channels, with the balance
traded internally to fuel growth in our added-value Gourmet Products and
Convenience ranges.
Consumer demand for natural protein alongside the relative affordability of
fresh and added-value pork products is driving healthy retail demand. A
strong barbecue season and innovation across summer ranges provided a positive
contribution during the period. Our focus on innovation in the category and
improving the quality of British pork products is accelerating following the
JSR Genetics acquisition with enhanced feedback from downstream processing
supporting our strategic retail partners' requirements. We remain committed
to continued investment across our Fresh Pork primary processing operations to
meet this growth.
The ongoing £100m multi-phased redevelopment of the Hull primary processing
site to add onsite cold storage capability, create the first 1,000 pig per
hour site in the UK and expand capacity to 50,000 pigs per week is progressing
to plan. This investment is expected to be fully operational following the
financial year ended March 2027.
Convenience
Convenience revenue was 7.1% ahead of the prior year period and represented
36.5% of Group revenue.
Cooked Meats revenue was ahead year-on-year, driven by underlying growth from
existing customers and newly secured retail business. The Hull site launched
a brand new super-premium range of 'Chef's Collection' centre-of-plate meal
solutions for one of our key retail partners during the period, demonstrating
continued positive momentum in the 'slow cook' category.
Continental and Mediterranean Products revenues were strongly ahead driven by
increased volumes across the Bury, Katsouris Brothers and Worsley production
sites. This was driven by new listings secured with key retail partners and
multibuy promotional activity in charcuterie, as well as olive and antipasti
ranges at the Bury Continental Products site. New product development
included a premium range of 'sharing plates' for one of our key retail
partners and new charcuterie 'snacking' products. Katsouris Brothers growth
reflected new halloumi business alongside co-packing of a branded snacking
range supplied across all major retailers that commenced towards the end of
the previous year.
The Ramona's brand has maintained its leading position in the retail houmous
category. The brand's growth has continued with new customer listings,
increased store penetration with existing customers, and expansion of the
range with new product formats and flavours. We started supplying own-label
houmous to two retail partners from the Worsley site during the period. The
Worsley facility is still in the start-up phase of its development and
financial performance is reflective of this, however the Worsley facility has
headroom to deliver substantial further growth in the houmous and dips
category with significant extra capacity due to come online during the second
half of the year.
We continue to drive growth in Mediterranean food categories through
innovation and premiumisation, supported by the consumers' appreciation of
exciting 'mezze platter' inspired flavours and product formats. The Bury
site, commissioned in 2018, is already approaching capacity demonstrating the
strong growth of the Continental Products business.
Gourmet Products
Gourmet Products revenue was 15.9% ahead of the prior year period and
represented 17.9% of Group revenue. This growth reflects the acquisition of
Blakemans and strong consumer demand across the other key Gourmet Products
sites.
We acquired the Blakemans business on 16 May 2025. Operating from a
dedicated well-invested facility in Staffordshire, Blakemans is a leading
manufacturer of specialist raw and cooked sausage products supplying the food
service sector. The acquisition adds raw and cooked sausage production
capacity to our Gourmet Products business, whilst enabling efficient supply
into the food service market. The underlying trading performance following
acquisition has been strong, supported by the delivery of procurement
synergies.
Sausage and Bacon revenues, including sales from the Hull Cooked Sausage and
Bacon facility, were well ahead of the prior period. We delivered a strong
barbecue season, with innovation across key summer lines. New product
launches included a super-premium 'Signature' bacon range and a premium
'Dinky' cooked sausage range, for key retail partners. Consumer appreciation
for the convenience and relative affordability of these categories is driving
strong retail demand, with premium ranges outperforming. We continue to
build for what we anticipate will be another extremely busy Christmas for pigs
in blankets. We have invested in more automated production capacity to
support this demand.
Pastry revenues were strongly ahead of the prior period driven by stronger
pricing and improved mix reflecting a robust underlying performance and new
product launches with the Malton site's anchor retail partner. We continue
to drive category growth and innovation with listings for new premium,
centre-of-plate meal solutions launched in the period.
Poultry
Poultry revenue was 18.5% ahead of the prior year period and represented 20.9%
of Group revenue, up from 19.5% in the previous financial year.
Poultry, agricultural operations
We continue to invest in our poultry farming supply chain at pace. During
the period, we completed the move to enhanced welfare lower stocking densities
having fully secured the necessary space. In addition to increased scale and
better welfare outcomes, this has improved farm productivity.
We have now completed the £5m broiler farm expansion project, adding space to
our East Anglia supply chain. The £7m investment to expand incubatory
capacity at the Kenninghall site is progressing to plan. These projects will
ensure we have an increased and secure supply of birds available to match the
planned uplift in the Eye processing capacity.
We are conscious of the rising instances of Avian Influenza impacting British
poultry production currently. We continue to observe strict biosecurity
measures and there has been no adverse impact on our farms to date.
Poultry, primary and added-value processing
Fresh Poultry revenue grew strongly reflecting price recovery resulting from
the move to enhanced welfare lower stocking densities, alongside volume growth
as bird numbers and average bird weights were ahead year-on-year. Retail
demand from the Eye site's anchor customer has remained strong throughout the
period. The £13m investment at Eye is progressing to plan. This project
will add c.15% additional processing capacity through further automation.
Prepared Poultry and Cooked Poultry delivered double digit revenue growth with
increased volumes and improved sales mix following the onboarding of new
premium retail business. We completed the £30m expansion project across
these sites during the period, adding whole bird and bone-in portion cooking
and roasting capability. Supply to the flagship retail customer commenced
from the end of the previous year. Rapid onboarding of the new business,
alongside well publicised and ongoing industry-wide fresh poultry availability
challenges, has caused some operational disruption at the Prepared and Cooked
Poultry sites with momentum improving towards the end of the period.
OTHER SEGMENT
Pet Food
Pet Products revenue was 13.6% ahead of the prior year period and represented
1.3% of Group revenue. Strong growth in the first half reflected the
successful ongoing roll out of the Pets at Home business. The onboarding of
additional premium lines has now commenced with a further significant
acceleration of volumes anticipated through the second half.
We are now investing a further £14m at the Lincoln Pet Products site. This
will enable expansion of the range, including premium high meat content
products, and the increased capacity necessary to deliver the additional Pets
at Home lines now secured. The business is well positioned for the future,
reflecting the continued transformation of the business and closer alignment
with Pets at Home as the site's anchor customer.
Finance review
Revenue
Reported revenue increased by 10.4% to £1,468.3m (2024: £1,329.9m).
Like-for-like revenue, excluding the contribution from acquisitions made in
the current and prior financial period up to the anniversary of their
purchase, increased by 7.9%.
Adjusted Group operating profit
Adjusted Group operating profit increased by 13.5% to £113.0m (2024:
£99.6m). Adjusted Group operating margin at 7.7% of sales was 21bps higher
than the prior period.
Finance costs and funding
Net finance costs were £7.9m (2024: £3.9m), including £4.3m (2024: £2.4m)
of IFRS 16 lease interest. Bank finance costs were £2.1m higher than the
prior year at £3.6m (2024: £1.5m), primarily following higher net debt.
Adjusted profit before tax
Adjusted profit before tax was 9.7% higher at £105.1m (2024: £95.8m).
Taxation
The tax charge of £28.9m (2024: £23.6m) was 26.5% of profit before tax
(2024: 26.2%). The UK statutory rate of corporation tax was 25.0% (2024:
25.0%). The effective rate was higher than the standard rate mainly due to
non-qualifying depreciation and tax adjustments related to disallowable
expenditure.
Adjusted earnings per share
Adjusted earnings per share for the 26 weeks to 27 September 2025 increased by
9.3% to 144.4p compared to the 132.1p reported in the corresponding period in
the prior year, reflecting the growth in adjusted profit before tax and the
impact of the shares held in trust. The average number of shares in issue was
53,476,000 (2024: 53,648,000).
Statutory profit measures
Statutory profit before tax increased by 21.1% to £109.2m (2024: £90.2m),
statutory Group operating profit was 24.6% higher at £117.1m (2024: £94.0m)
and statutory earnings per share was 21.1% higher at 150.2p (2024: 124.0p).
Full reconciliations of these results to the adjusted measures can be found in
Note 15.
Cash flow and net debt
Cash generated from operations in the period was £121.0m (2024: £127.2m),
including a working capital outflow in the period of £46.0m (2024:
£18.7m). Net debt, including the impact of IFRS 16 lease liabilities,
increased by £99.9m in the period to £272.3m from £172.4m at 29 March
2025. Net debt, excluding IFRS 16 lease liabilities, at the end of the
period increased to £127.3m (September 2024: £0.9m) driven by strong capital
expenditure, the Blakemans acquisition and working capital expansion,
reflecting new long-term strategic partnerships and a strong Christmas stock
build. Capital expenditure was £89.1m in the period.
Pensions
The Group operates defined contribution pension schemes whereby contributions
are made to schemes administered by major insurance companies. Contributions
to these schemes are determined as a percentage of employees' earnings.
The Group also operates a defined benefit pension scheme which has been closed
to further benefit accrual since 2004. The scheme balance as at 27 September
2025 was £nil which is in line with 29 March 2025. Cash contributions to
the scheme during the period were £nil. The Group does not expect to make
any contributions to the scheme during the year ending March 2026. The
present value of funded obligations was £17.3m, and the fair value of plan
assets was £17.3m.
Principal risks and uncertainties
The Board continues to assess the principal risks and uncertainties of the
Group on a frequent basis. The principal risks and uncertainties faced by
the business at 29 March 2025 are set out on pages 78 to 82 of the Annual
Report and Accounts for the 52 weeks ended 29 March 2025, dated 20 May 2025, a
copy of which is available on the Group's website. An update to these
principal risks and uncertainties at 27 September 2025 is set out in Note 16.
Forward looking information
This interim report contains certain forward-looking statements. These
statements are made by the Directors in good faith based on the information
available to them at the time of their approval of this report and such
statements should be treated with caution due to the inherent uncertainties,
including both economic and business risk factors, underlying any such forward
looking information.
Group income statement (unaudited)
for the 26 weeks ended 27 September 2025
Half year 52 weeks ended
29 March
2025
(Audited)
£'m
Notes 2025 2024
£'m
£'m
Revenue 4 1,468.3 1,329.9 2,723.3
Adjusted Group operating profit 113.0 99.6 206.9
Net IAS 41 valuation movement on biological assets 5.1 (3.4) (11.1)
Amortisation of intangible assets (1.0) (2.2) (3.6)
Impairment of intangible assets - - (1.6)
Group operating profit 5 117.1 94.0 190.6
Finance costs (7.9) (3.9) (9.2)
Share of net profit of joint venture - 0.1 0.2
Profit before tax 109.2 90.2 181.6
Taxation 6 (28.9) (23.6) (47.3)
Profit for the period 80.3 66.6 134.3
Earnings per share (pence)
On profit for the period:
Basic 7 150.2 124.0 250.5
Diluted 7 147.9 123.4 246.1
Group statement of comprehensive income (unaudited)
for the 26 weeks ended 27 September 2025
52 weeks ended
29 March 2025
Half year
2025 2024 (Audited)
£'m £'m £'m
Profit for the period 80.3 66.6 134.3
Other comprehensive income/(expense)
Other comprehensive income/(expense) to be reclassified to profit or loss in
subsequent periods:
Cash flow hedges
Gains/(losses) arising in the period 0.3 (0.7) 0.3
Reclassification adjustments for (losses)/gains included in the income 0.1 0.1
statement
(0.3)
Income tax effect - 0.1 (0.1)
Net other comprehensive income/(expense) to be reclassified to profit or loss 0.3
in subsequent periods
- (0.5)
Items not to be reclassified to profit or loss in subsequent periods:
Actuarial gains/(losses) on defined benefit pension scheme - - (0.2)
Income tax effect - - -
Net other comprehensive income/(expense) not being reclassified to profit or (0.2)
loss in subsequent periods
- -
0.1
Other comprehensive income/(expense)
- (0.5)
80.3 134.4
Total comprehensive income
66.1
Group balance sheet (unaudited)
at 27 September 2025 As at
Half year 29 March
Notes 2025 2024 2025
£'m £'m (Audited)
£'m
Non-current assets
Financial asset investment 0.1 0.1 0.1
Investment in joint venture - 0.8 -
Intangible assets 221.0 211.9 210.9
Defined benefit pension scheme surplus - 0.2 -
Property, plant and equipment 13 679.9 533.8 605.4
Right-of-use assets 13 134.9 99.0 123.7
Biological assets 10 5.2 4.9 4.3
Total non-current assets 1,041.1 850.7 944.4
Current assets
Biological assets 10 98.4 84.1 91.8
Inventories 173.1 144.7 126.9
Trade and other receivables 387.8 321.9 355.0
Other financial assets 0.3 0.1 0.3
Income tax receivable 6.0 6.6 6.9
Cash and short-term deposits 11 10.0 8.4 5.9
Total current assets 675.6 565.8 586.8
Total assets 1,716.7 1,416.5 1,531.2
Current liabilities
Trade and other payables (360.7) (321.3) (328.1)
Other financial liabilities (0.1) (2.2) (0.3)
Lease liabilities 11 (17.1) (17.2) (16.4)
Provisions (2.2) (1.8) (2.4)
Total current liabilities (380.1) (342.5) (347.2)
Non-current liabilities
Other payables (0.3) (1.0) (0.5)
Other financial liabilities (141.0) (9.3) (45.6)
Lease liabilities 11 (127.9) (89.4) (116.3)
Deferred tax liabilities (41.9) (31.7) (32.0)
Provisions (1.8) (2.6) (1.7)
Total non-current liabilities (312.9) (134.0) (196.1)
Total liabilities (693.0) (476.5) (543.3)
Net assets 1,023.7 940.0 987.9
Equity
Called-up share capital 5.4 5.4 5.4
Share premium account 135.4 130.1 133.0
Share-based payments 13.7 11.0 14.2
Shares held in trust (39.0) (20.6) (35.4)
Hedging reserve 0.3 (0.6) 0.3
Retained earnings 907.9 814.7 870.4
Total equity attributable to owners of the parent 1,023.7 940.0 987.9
Group statement of cash flows (unaudited)
for the 26 weeks ended 27 September 2025
52 weeks ended 29 March 2025
Half year
Notes 2025 2024 (Audited)
£'m £'m £'m
Operating activities
Profit for the period 80.3 66.6 134.3
Adjustments to reconcile Group profit for the period to net cash from
operating activities:
Income tax expense 6 28.9 23.6 47.3
Net finance costs 7.9 3.9 9.2
Loss/(gain) on sale of property, plant and equipment 0.1 (0.1) 0.9
Loss/(gain) on disposal of right-of-use assets - (0.3) -
Depreciation of property, plant and equipment 38.0 34.0 68.1
Depreciation of right-of-use assets 10.4 8.8 18.2
Amortisation of intangible assets 1.0 2.2 3.6
Impairment of intangible assets - - 1.6
Share-based payments 5.7 4.1 8.4
Share of joint venture - (0.1) (0.2)
Release of Government grants (0.2) (0.2) (0.4)
Net IAS 41 valuation movement on biological assets (5.1) 3.4 11.1
Increase in biological assets (2.4) (1.0) (8.7)
Increase in inventories (41.4) (30.9) (12.8)
(Increase)/decrease in trade and other receivables (23.0) 4.3 (26.6)
Increase in trade and other payables 20.8 8.9 3.8
Cash generated from operations 121.0 127.2 257.8
Tax paid (20.9) (20.6) (41.5)
Net cash from operating activities 100.1 106.6 216.3
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired 9 (30.5) (4.4) (25.0)
Distributions received from joint venture - 0.1 0.2
Purchase of property, plant and equipment (89.1) (47.7) (137.6)
Proceeds from sale of property, plant and equipment 0.1 1.0 2.0
Net cash used in investing activities (119.5) (51.0) (160.4)
Cash flows from financing activities
Interest paid (3.1) (1.2) (2.7)
Proceeds from issue of share capital 2.4 1.8 4.7
Proceeds from share options exercised by Employee Benefit Trust 0.3 - -
Own shares purchased (12.7) (10.4) (25.3)
Issue costs of long-term borrowings (1.8) - -
Proceeds from/(repayment of) borrowings 11 93.0 (18.0) 18.0
Repayment of borrowings acquired 11 (1.5) - -
Dividends paid 8 (40.6) (36.1) (49.5)
Payment of lease capital 11 (8.2) (7.9) (16.2)
Payment of lease interest 11 (4.3) (2.4) (6.0)
Net cash used in financing activities 23.5 (74.2) (77.0)
Net increase/(decrease) in cash and cash equivalents 11 4.1 (18.6) (21.1)
Cash and cash equivalents at beginning of period 11 5.9 27.0 27.0
Cash and cash equivalents at end of period 11 10.0 8.4 5.9
Group statement of changes in equity (unaudited)
for the 26 weeks ended 27 September 2025
Share Share Share- Shares held in trust Hedging Retained Total
capital premium based £'m reserve earnings equity
payments
£'m £'m £'m £'m £'m £'m
At 29 March 2025 5.4 133.0 14.2 (35.4) 0.3 870.4 987.9
Profit for the period - - - - - 80.3 80.3
Other comprehensive income - - - - - - -
Total comprehensive income - - - - - 80.3 80.3
Share-based payments (SBPs) - - 5.7 - - - 5.7
Exercise, lapse or forfeit of SBPs - - (6.5) - - 6.5 -
Share options exercised through shares acquired by Employee Benefit Trust
- - 0.3 - - - 0.3
Shares acquired by Employee Benefit Trust - - - (12.7) - - (12.7)
Transfer to retained earnings on grant of shares to beneficiaries of the
Employee Benefit Trust
- - - 9.1 - (9.1) -
Share options exercised - 2.4 - - - - 2.4
Dividends - - - - - (40.6) (40.6)
Deferred tax relating to changes in equity - - - - - (1.2) (1.2)
Current tax relating to changes in equity - - - - - 1.6 1.6
At 27 September 2025 5.4 135.4 13.7 (39.0) 0.3 907.9 1,023.7
At 30 March 2024 5.4 128.3 11.8 (15.6) (0.1) 781.7 911.5
Profit for the period - - - - - 66.6 66.6
Other comprehensive expense - - - - (0.5) - (0.5)
Total comprehensive income - - - - (0.5) 66.6 66.1
Share-based payments (SBPs) - - 4.1 - - - 4.1
Exercise, lapse or forfeit of SBPs - - (4.9) - - 4.9 -
Shares acquired by Employee Benefit Trust - - - (10.4) - - (10.4)
Transfer to retained earnings on grant of shares to beneficiaries of the
Employee Benefit Trust
- - - 5.4 - (5.4) -
Share options exercised - 1.8 - - - - 1.8
Dividends - - - - - (36.1) (36.1)
Deferred tax relating to changes in equity - - - - - 2.1 2.1
Current tax relating to changes in equity - - - - - 0.9 0.9
At 28 September 2024 5.4 130.1 11.0 (20.6) (0.6) 814.7 940.0
(Audited)
At 30 March 2024 5.4 128.3 11.8 (15.6) (0.1) 781.7 911.5
Profit for the year - - - - - 134.3 134.3
Other comprehensive income/(expense) - - - - 0.4 (0.3) 0.1
Total comprehensive income - - - - 0.4 134.0 134.4
Share-based payments (SBPs) - - 8.4 - - - 8.4
Exercise, lapse or forfeit of SBPs - - (6.0) - - 6.0 -
Shares acquired by Employee Benefit Trust - - - (25.3) - - (25.3)
Transfer to retained earnings on grant of shares to beneficiaries of the
Employee Benefit Trust
- - - 5.5 - (5.5) -
Share options exercised - 4.7 - - - - 4.7
Dividends - - - - - (49.5) (49.5)
Deferred tax relating to changes in equity - - - - - 2.7 2.7
Current tax relating to changes in equity - - - - - 1.0 1.0
At 29 March 2025 5.4 133.0 14.2 (35.4) 0.3 870.4 987.9
Responsibility statement
The Directors confirm that these condensed set of consolidated interim
financial statements have been prepared in accordance with UK-adopted
International Accounting Standard (IAS) 34, 'Interim Financial Reporting' and
the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and that the interim management report
includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8,
namely:
· an indication of important events that have occurred during the
first 26 weeks of the year and their impact on the condensed set of
consolidated financial statements, and a description of the principal risks
and uncertainties for the remaining 26 weeks of the financial year; and
· material related-party transactions in the first 26 weeks of the
year and any material changes in the related-party transactions described in
the last annual report.
The Board of Directors that served during the 26 weeks ended 27 September
2025, and their respective responsibilities, can be found on pages 88 to 89,
and 102 of the Annual Report and Accounts for the 52 weeks ended 29 March
2025, dated 20 May 2025. A list of current Directors is maintained on the
Cranswick plc website: www.cranswick.plc.uk
On behalf of the Board
Tim J Smith CBE
Mark Bottomley
Chairman
Chief Financial Officer
25 November 2025
Notes to the interim accounts
1. Basis of preparation
Cranswick plc is a public limited company incorporated and domiciled in
England, United Kingdom. The condensed set of consolidated interim financial
statements have been prepared in accordance with the Disclosure Guidance and
Transparency Rules of the Financial Conduct Authority and UK-adopted IAS 34,
'Interim Financial Reporting'.
The Group is presenting its condensed consolidated interim financial
statements for the 26 weeks to 27 September 2025 with comparative information
for the 26 weeks to 28 September 2024 and the 52 weeks to 29 March 2025. This
interim report was approved by the Directors on 25 November 2025.
As required by the Disclosure Guidance and Transparency Rules of the Financial
Conduct Authority, the condensed set of consolidated financial statements have
been prepared applying the accounting policies and presentation that were
applied in the preparation of the Group's published consolidated financial
statements for the 52 weeks ended 29 March 2025. These statements do not
include all the information required for full annual consolidated financial
statements and should be read in conjunction with the full Annual Report and
Accounts for the 52 weeks ended 29 March 2025.
The condensed information does not constitute statutory accounts within the
meaning of Section 434 of the Companies Act 2006. The statutory accounts for
the 52 weeks ended 29 March 2025 were prepared in accordance with UK-Adopted
International Accounting Standards ('UK-Adopted IAS') and with the
requirements of the Companies Act 2006 as applicable to companies reporting
under those standards, and have been filed with the Registrar of Companies.
The report of the auditors on the statutory accounts was not qualified and did
not contain a statement under Section 498 (2) or (3) of the Companies Act
2006. The interim report is unaudited but has been subject to an independent
review by PricewaterhouseCoopers LLP pursuant to the Auditing Practices Board
guidance contained in ISRE 2410 (UK and Ireland) 'Review of Interim Financial
Information Performed by the Independent Auditor of the Entity'.
1. Basis of preparation (continued)
Going concern
The Group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Operating
review. The financial position of the Group, its cash flows, liquidity
position and borrowing facilities are described in the Finance review. The
Group has considerable financial resources, together with strong trading
relationships with its key customers and suppliers. As a consequence, the
Directors believe that the Group is well placed to manage its business risks
successfully.
The Board's going concern assessment has utilised the Group's latest forecasts
and has taken into account the Group's current position, future prospects and
the potential impact of the principal risks of the Group. Management has
produced forecasts to reflect severe yet plausible downside scenarios which
consider the principal risks faced by the Group, including, but not limited
to, a loss of consumer demand, an outbreak of Avian Influenza and a widespread
outbreak of African Swine Fever and Foot and Mouth disease in the UK and
Europe, as well the Group's considerable financial resources and strong
trading relationships with its key customers and suppliers. Sensitivity
analysis was carried out on the Group's forecasts to quantify the financial
impact of these risks on the strategic plan and on the Group's viability
against specific measures including liquidity and bank covenants.
Given the strong liquidity of the Group, the £360m committed banking
facilities in place beyond the going concern period, and the diversity of
operations, the results of the sensitivity analysis highlighted that the Group
would be able to withstand the impact of the most severe, but plausible,
combination of the risks modelled by making adjustments to its strategic plan
and discretionary expenditure, with strong headroom against current available
facilities and full covenant compliance in all modelled scenarios.
After reviewing the available information, including business plans and
downside scenario modelling and making enquiries, the Directors have a
reasonable expectation that the Group has adequate resources to continue in
operational existence for the twelve months from the date of signing the
condensed consolidated interim financial statements. For this reason, the
Directors continue to adopt the going concern basis for preparing these
consolidated interim financial statements.
2. Accounting policies
The accounting policies applied by the Group in this interim report are the
same as those applied by the Group in the financial statements for the 52
weeks ended 29 March 2025, except as described below:
Taxation
Taxes for the interim periods are accrued using the tax rate that is expected
to be applicable to total earnings for the full year based on enacted tax
rates at the interim date.
There were no other accounting standards or interpretations that have become
effective in the current reporting period which had an impact on disclosures,
financial position or performance.
3. Significant estimates and judgements
In preparing this set of consolidated condensed interim financial statements,
the significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty were the
same as those that applied to the consolidated financial statements for the 52
weeks ended 29 March 2025.
4. Segmental analysis
IFRS 8 requires operating segments to be identified on the basis of the
internal financial information reported to the Chief Operating Decision Maker
(CODM). The Group's CODM is deemed to be the Executive Directors on the Board,
who are primarily responsible for the allocation of resources to segments and
the assessment of performance of the segments.
The CODM assesses profit performance principally through adjusted profit
measures consistent with those disclosed in the Annual Report and Accounts.
4. Segmental analysis (continued)
The reporting segments are organised based on the nature of the end markets
served. The 'Food' segment entails manufacture and supply of food products to
UK grocery retailers, the food service sector and other UK and global food
producers. The 'Other' segment represents all other activities which do not
meet the above criteria, principally Cranswick Pet Products Limited.
The reportable segment 'Food' represents the aggregation of four operating
segments which are aligned to the product categories of the Group; Fresh Pork,
Convenience, Gourmet Products and Poultry, all of which manufacture and supply
food products through the channels described above. The Blakemans acquisition
is included within the Gourmet Products category. The operating segments have
been aggregated into one reportable segment as they share similar economic
characteristics. The economic indicators which have been assessed in
concluding that these operating segments should be aggregated include the
similarity of long-term average margins; expected future financial
performance; and operating and competitive risks. In addition, the operating
segments are similar with regard to the nature of the products and production
process, the type and class of customer, the method of distribution and the
regulatory environment.
Half year 52 weeks ended 29 March 2025
2025 2025 2025 2024 2024 2024 £'m £'m £'m
£'m £'m £'m £'m £'m £'m
Food Other Total Food Other Total Food Other Total
Revenue 1,449.1 19.2 1,468.3 1,313.0 16.9 1,329.9 2,686.6 36.7 2,723.3
Adjusted operating profit/(loss) 112.6 0.4 113.0 101.8 (2.2) 99.6 210.3 (3.4) 206.9
Finance costs (7.4) (0.5) (7.9) (3.9) - (3.9) (8.0) (1.2) (9.2)
Share of net profit of joint venture - - - 0.1 - 0.1 0.2 - 0.2
Adjusted profit/(loss) before tax 105.2 (0.1) 105.1 98.0 (2.2) 95.8 202.5 (4.6) 197.9
Assets 1,684.3 32.4 1,716.7 1,388.1 28.4 1,416.5 1,503.0 28.2 1,531.2
Liabilities (657.7) (35.3) (693.0) (450.0) (26.5) (476.5) (510.7) (32.6) (543.3)
Net assets/(liabilities) 1,026.6 (2.9) 1,023.7 938.1 1.9 940.0 992.3 (4.4) 987.9
Depreciation 47.6 0.8 48.4 41.9 0.9 42.8 84.0 2.3 86.3
Property, plant and equipment and right-of-use asset additions 113.3 3.0 116.3 65.1 2.0 67.1 150.0 2.7 152.7
Geographical segments
The following table sets out revenues by destination, regardless of where the
goods were produced:
52 weeks ended
29 March
Half year
2025 2024 2025
£'m £'m £'m
UK 1,435.5 1,302.3 2,651.2
Continental Europe 12.2 10.5 26.2
Rest of world 20.6 17.1 45.9
1,468.3 1,329.9 2,723.3
In addition to the non-UK sales disclosed above, the Group also made sales to
export markets through UK-based meat trading agents totalling £29.0m (2024:
£26.1m). Including these sales, total sales to export markets were £61.8m
for the period (2024: £53.7m).
Customer concentration
The Group has three customers (2024: three) which individually account for
more than 10% of the Group's total revenue. These customers account for 24%,
15% and 11% respectively. In the prior period, these same three customers
accounted for 23%, 16% and 11% respectively.
4. Segmental analysis (continued)
Seasonality
The Group is subject to marginal seasonal fluctuations in its Food segment
with increased sales over the Christmas period. This increase results in a
working capital build towards Christmas which then unwinds over the remainder
of the financial year.
5. Group operating profit
Group operating costs comprise:
52 weeks ended
Half year 29 March
2025 2024 2025
£'m £'m £'m
Cost of sales excluding net IAS 41 valuation movement on biological assets 1,239.5 1,126.5 2,303.4
Net IAS 41 valuation movement on biological assets(*) (5.1) 3.4 11.1
Cost of sales 1,234.4 1,129.9 2,314.5
Gross profit 233.9 200.0 408.8
Selling and distribution costs 58.2 54.9 112.8
Administrative expenses excluding impairment and amortisation of intangible 57.6 100.2
assets
48.9
Impairment of intangible assets - - 1.6
Amortisation of intangible assets 1.0 2.2 3.6
Administrative expenses 58.6 51.1 105.4
Total operating costs 1,351.2 1,235.9 2,532.7
(*) This represents the difference between operating profit prepared under IAS
41 and operating profit prepared under historical cost accounting, which forms
part of the reconciliation of adjusted operating profit.
6. Taxation
The tax charge of £28.9m (2024: £23.6m) gives an effective tax rate of 26.5%
(2024: 26.2%). The effective tax rate is higher than the UK statutory rate of
corporation tax of 25.0% (2024: 25.0%) mainly due to increased depreciation on
assets not qualifying for tax relief, as well as tax adjustments related to
disallowable expenses.
7. Earnings per share
Basic earnings per share are based on profit for the period attributable to
members of the Parent Company and on the weighted average number of shares in
issue during the period (excluding the shares held by the Employee Benefit
Trust) of 53,476,000 (29 March 2025: 53,581,000, 28 September 2024:
53,648,000). The calculation of diluted earnings per share is based on
54,308,000 shares (29 March 2025: 54,535,000, 28 September 2024: 53,940,000).
8. Dividends
52 weeks ended
Half year 29 March
2025 2024 2025
£'m £'m £'m
Interim dividend for year ended 29 March 2025 of 25.0p per share - - 13.4
Final dividend for year ended 29 March 2025 of 76.0p per share (2024: 67.3p) 36.1
40.6 36.1
40.6 36.1 49.5
8. Dividends (continued)
The interim dividend for the year ending 28 March 2026 of 27.0p per share was
approved by the Board on 25 November 2025 for payment to Shareholders on 23
January 2026 and therefore has not been included as a liability at 27
September 2025.
9. Acquisitions
i) James T Blakeman & Co (Holdings) Limited
On 16 May 2025, the Group acquired 100% of the issued share capital of James T
Blakeman & Co (Holdings) Limited and its subsidiary entities, James T.
Blakeman (Services) Limited, and James T Blakeman & Co Limited, for an
initial net cash consideration of £30.2m.
The acquisition will enable the Group to expand its offering in the sausage
manufacturing market, bringing more raw and cooked sausage capacity to the
Group.
The acquisition has been accounted for as a business combination using the
acquisition method of accounting in accordance with IFRS 3 Business
Combinations and consequently the assets acquired, and liabilities assumed,
have been recorded by the Group at fair value, with an excess purchase prices
over the fair value of the identifiable asset and liabilities being recognised
as goodwill.
The following table sets out the provisional fair values of the identifiable
assets and liabilities acquired by the Group:
Provisional
fair value
£'m
Net assets acquired:
Customer relationships 1.9
Property, plant and equipment 18.9
Right-of-use assets 0.8
Inventories 4.8
Trade and other receivables 9.8
Bank and cash balances 3.9
Bank loans (1.5)
Trade and other payables (5.6)
Lease liabilities (0.8)
Corporation tax (0.5)
Deferred tax liability (3.1)
28.6
Goodwill arising on acquisition 9.2
Total consideration 37.8
Satisfied by:
Initial cash consideration 34.1
Deferred contingent consideration 3.7
37.8
Net cash outflow arising on acquisition:
Cash consideration paid 34.1
Cash and cash equivalents acquired (3.9)
30.2
The fair values on acquisition are provisional pending finalisation and will
be finalised within twelve months of the acquisition date.
9. Acquisitions (continued)
The agreement includes contingent consideration payable in cash to the
previous owners of James T Blakeman & Co (Holdings) Limited based on the
performance of the entities acquired in the period to 27 March 2027. The
amount payable will be between £nil and £3.7m. The fair value of the
contingent consideration on acquisition was estimated at £3.7m and was
estimated calculating the present value of the future expected cashflows.
The fair value of trade and other receivables acquired is the same as the
gross contractual amounts. All of the trade and other receivables acquired are
expected to be collected in full.
Included in the £9.2m of goodwill recognised above are certain intangible
assets that cannot be individually separated from the acquiree and reliably
measured due to their nature. These items include the expected value of
synergies and an assembled workforce.
Transaction costs in relation to the acquisition of £0.5m have been expensed
within administrative expenses.
From the date of acquisition to 27 September 2025, the external revenue of the
three acquired companies was £24.3m and the combined net profit after tax was
£1.6m. Had the acquisition taken place at the beginning of the financial
year, Group revenue would have been £1,476.8m and the Group profit after tax
would have been £81.3m.
Goodwill
The goodwill held by the Group increased in the period solely as a result of
the acquisition of James T Blakeman & Co (Holdings) Limited which is
included within the Gourmet Products category.
The carrying amount of goodwill at the beginning and end of the period is as
follows:
Goodwill
£'m
At 29 March 2025 206.2
Acquisition of subsidiary 9.2
At 27 September 2025 215.4
(ii) Fridaythorpe mill purchase
During the period, the Group purchased a mill at Fridaythorpe. In accordance
with IFRS 3 Business Combinations, the transaction has been accounted for as
an asset purchase.
(iii) Deferred and contingent consideration
The Sale and Purchase agreements for Piggy Green Limited and Fornham Pigs
Limited included deferred consideration payable in cash to the previous owners
based on the finalisation of certain contractual arrangements. The amount
payable is estimated at £0.1m and will be paid within the year.
The sale and purchase agreement for J.S.R. Genetics Limited included deferred
consideration payable in cash to the previous owners based on the finalisation
of the completion accounts. The estimated amount payable was £0.2m. Following
the finalisation of the completion accounts, the deferred consideration was
increased by £0.1m and a cash payment of £0.3m was made in the period.
10. Financial instruments
The Group's activities expose it to a number of financial risks which include
foreign currency risk, interest rate risk, credit risk and liquidity risk. The
Board considers the Group's financial instruments risk management strategy to
be the same as described within the Directors' Report on page 144 of the
Annual Report and Accounts for the 52 weeks ended 29 March 2025.
Fair value of financial instruments
All financial instrument liabilities/(assets) are shown in the balance sheet
at fair value as follows:
Half year 52 weeks ended
29 March 2025
2025 2024
Book Fair Book Fair Book Fair
value value value value value value
£'m £'m £'m £'m £'m £'m
Forward currency contracts (0.3) (0.3) 0.7 0.7 (0.3) (0.3)
Contingent consideration 3.7 3.7 1.0 1.0 - -
The book value of trade and other receivables, trade and other payables, cash
balances, overdrafts and amounts outstanding under the revolving credit
facility equates to fair value to the Group.
Reconciliation of contingent consideration:
£'m
At 29 March 2025 -
Paid in the period -
Created in the period 3.7
At 27 September 2025 3.7
Biological assets
To provide an indication about the reliability of the inputs used in
determining fair value, the Group has classified its non-financial assets and
liabilities into the three levels prescribed under the accounting standards:
Level 1 Level 2 Level 3 Total
£'m £'m £'m £'m
At 27 September 2025
Breeding sows (Bearer biological assets) - 8.4 - 8.4
Boars - 0.2 - 0.2
AI Boars - 1.6 - 1.6
Finished pigs (Consumable biological assets) - - 60.2 60.2
Sucklers and weaners (Consumable biological assets) - - 21.0 21.0
Breeder chickens (Bearer biological assets) - 2.7 - 2.7
Eggs - 0.8 - 0.8
Broiler chickens (Consumable biological assets) - 8.7 - 8.7
Total biological assets - 22.4 81.2 103.6
10. Financial instruments (continued)
Level 1 Level 2 Level 3 Total
£'m £'m £'m £'m
At 28 September 2024
Breeding sows (Bearer biological assets) - 10.5 - 10.5
Boars - 0.2 - 0.2
Finished pigs (Consumable biological assets) - - 48.0 48.0
Sucklers and weaners (Consumable biological assets) - - 19.4 19.4
Breeder chickens (Bearer biological assets) - 2.4 - 2.4
Eggs - 0.8 - 0.8
Broiler chickens (Consumable biological assets) - 7.7 - 7.7
Total biological assets - 21.6 67.4 89.0
Level 1 Level 2 Level 3 Total
£'m £'m £'m £'m
At 29 March 2025
Breeding sows (Bearer biological assets) - 6.5 - 6.5
Boars - 0.2 - 0.2
AI Boars - 1.3 - 1.3
Finished pigs (Consumable biological assets) - - 56.1 56.1
Sucklers and weaners (Consumable biological assets) - - 20.4 20.4
Breeder chickens (Bearer biological assets) - 2.8 - 2.8
Eggs - 0.7 - 0.7
Broiler chickens (Consumable biological assets) - 8.1 - 8.1
Total biological assets - 19.6 76.5 96.1
The prior period Level 2 value has been updated to include eggs (£0.8m).
Reconciliation of carrying amounts of fair value Level 3 livestock:
£'m
At 29 March 2025 76.5
Increase due to purchases 8.8
Decrease attributable to harvest (181.4)
Decrease attributable to sales (10.2)
Changes in fair value less estimated costs to sell 187.5
At 27 September 2025 81.2
10. Financial instruments (continued)
The gains/(losses) recognised in relation to the sucklers, weaners and
finished pigs are as follows:
52 weeks ended
Half year 29 March
2025 2024 2025
£'m £'m £'m
Net total gains/(losses) for the period recognised in profit or loss within
'Net IAS 41 valuation movement on biological assets'
3.8 (0.7) (3.6)
Net change in unrealised gains for the period recognised in profit or loss
attributable to sucklers, weaners and finished pigs held at the end of the
reporting period 5.8 6.3 2.0
The following table summarises the quantitative information about the
significant unobservable inputs used in the fair value measurements of the
weaners, sucklers and finishers.
Fair value Range of inputs
Half year 52 weeks ended Half year 52 weeks ended
29 March 29 March
2025 2024 2025 Unobservable inputs 2025 2024 2025
Description £'m £'m £'m £ £ £
Sucklers and weaners 21.0 19.4 20.4 Suckler price 50.40 - 51.15 51.30 - 51.98 49.98 - 51.98
Weaner price 59.34 - 60.23 60.40 - 61.20 58.84 - 61.20
Finished pigs 60.2 48.0 56.1 Finisher price 179.56 - 208.96 175.66 - 203.37 169.85 - 203.58
The higher the market price, the higher the fair value.
If the sensitivities in the table above moved by 10%, the fair value of the
sucklers and weaners as well as finished pigs would move by £3.3m (29 March
2025: £3.2m, 28 September 2024: £3.0m). There is no material impact on the
Group.
Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair
value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or
liabilities.
Level 2: other techniques for which all inputs which have a significant effect
on the recorded fair value are observable, either directly or indirectly.
Level 3: techniques which use inputs which have a significant effect on the
recorded fair value that are not based on observable market data.
Transfers between levels of the fair value hierarchy are deemed to have
occurred at the end of the reporting period. There were no such transfers of
financial instruments in the period.
The Group's forward currency contracts are measured using Level 2 of the fair
value hierarchy. The valuations are provided by the Group's bankers from their
proprietary valuation models and are based on mid-market levels as at close of
business on the Group's reporting date.
Contingent consideration is measured using Level 3 of the fair value hierarchy
and relates to future amounts payable on acquisitions. Amounts payable are
based on agreements within purchase contracts, management's expectations of
the future profitability of the acquired entity and the timings of payments.
The Group's biological assets are measured using Level 2 and Level 3 of the
fair value hierarchy.
10. Financial instruments (continued)
Quoted (unadjusted) prices in an active market are not available for sucklers
and weaners. The Group's valuation model for sucklers and weaners
is therefore a function of the UK Standard Pig Price (SPP) for finished pigs
since historic data suggests that prices for sucklers, weaners and finished
pigs were strongly correlated. The derived prices for sucklers and weaners are
then adjusted to reflect the growth of the pigs through a straight line
interpolation based on age, to provide a value for the pigs at a particular
stage of growth. As suckler and weaner prices are not observable in the
market, management concludes that these prices fall within Level 3 of the fair
value hierarchy.
The Group's valuation model for finished pigs utilises quoted (unadjusted)
prices in an active market: the UK Standard Pig Price (SPP). The prices are
then adjusted to reflect the growth of the animals through straight-line
interpolation between weaner to finished pig to provide a value for the pigs
at a particular stage of growth. As the weaner price used in the
straight-line interpolation for finished pigs is not observable in the market,
management concludes that these prices fall within Level 3 of the fair value
hierarchy.
The valuation for broiler birds uses recent transaction prices at various
stages of development. The prices are then adjusted to reflect the growth
of the birds through interpolation between the transaction prices. The
valuation of breeder chickens is based on recent transactions for similar
assets and therefore it is classified as Level 2 in the fair value hierarchy.
The valuation of sows, boars, artificial insemination boars (AI boars), and
breeder chickens is based on recent transactions for similar assets and
therefore is also classified as Level 2 in the fair value hierarchy.
The main assumptions used in relation to the valuation are growth and
mortality rates of chickens and a market price for sucklers and weaners.
11. Analysis of Group net debt
At Acquired on acquisition Cash Other non-cash changes At
29 March flow 27 September
2025 2025
£'m £'m £'m £'m £'m
Cash and cash equivalents 5.9 3.9 0.2 - 10.0
Bank loan - (1.5) 1.5 - -
Revolving credit facility (45.6) - (93.0) 1.3 (137.3)
Net debt excluding IFRS 16 lease liabilities (39.7) 2.4 (91.3) 1.3 (127.3)
Lease liabilities (132.7) (0.8) 12.5 (24.0) (145.0)
Total net debt (172.4) 1.6 (78.8) (22.7) (272.3)
Net debt is defined as cash and cash equivalents and loans receivable less
interest-bearing liabilities (including IFRS 16 lease liabilities) net of
unamortised issue costs.
The Group acquired £3.9m cash and cash equivalents, £1.5m bank loan, and
£0.8m lease liabilities as part of the Blakemans acquisition.
12. Related party transactions
During the current and prior period the Group entered into transactions, in
the ordinary course of business, with its subsidiaries and joint venture which
are related parties. Balances and transactions with subsidiaries are
eliminated on consolidation.
13. Property, plant and equipment, right-of-use assets and capital
expenditure commitments
Additions to owned property, plant and equipment during the period totalled
£94.1m (2024: £48.4m). Future capital expenditure under contract at 27
September 2025 was £59.8m (2024: £47.5m).
Additions to right-of-use assets in the period totalled £22.2m (2024:
£18.7m). At 27 September 2025, the Group had signed leases for £18.1m of
right-of-use assets which commence after the balance sheet date (2024: £nil).
14. Impairment of non-current assets
No impairment of goodwill or intangible assets were recognised in the 26 weeks
ended 27 September 2025 (2024: £nil). The Group reviewed both internal and
external sources of information and concluded that there are no indicators of
impairment during the 26 weeks to 27 September 2025, hence no impairment loss
was recognised in the period.
15. Alternative performance measures
The Board monitors performance principally through adjusted and like-for-like
performance measures. Adjusted profit and earnings per share measures exclude
certain non-cash items including the net IAS 41 valuation movement on
biological assets, amortisation and impairment of acquired intangible assets.
Free cash flow is defined as net cash from operating activities less net
interest paid, and like-for-like revenue excludes the impact of current year
acquisitions and the contribution from prior year acquisitions prior to the
anniversary of their purchase. Free cash conversion reflects free cash flow
adjusted for non-growth capital expenditure, the net IAS 41 valuation movement
on biological assets, lease capital and lease interest paid, as a percentage
of adjusted profit. Return on capital employed is a key performance indicator
for the Group and is defined as adjusted operating profit divided by the sum
of average opening and closing net assets, net debt/(funds), pension
liability/(surplus) and deferred tax.
The Board believes that such alternative measures are useful as they exclude
volatile (net IAS 41 valuation movement on biological assets), one-off
(impairment of intangible assets) and non-cash (amortisation of intangible
assets) items, which are normally disregarded by investors, analysts and
brokers in gaining a clearer understanding of the underlying performance of
the Group when making investment and other decisions. Equally, like-for-like
revenue provides these same stakeholders with a clearer understanding of the
organic sales growth of the business.
Like-for-like revenue
52 weeks ended
Half year 29 March
2025 2024 2025
£'m £'m £'m
Revenue 1,468.3 1,329.9 2,723.3
J.S.R. Genetics Limited and JSR Pyramid Limited (9.4) - -
Blakemans (24.3) - -
Like-for-like revenue 1,434.6 1,329.9 2,723.3
Adjusted gross profit
52 weeks ended
Half year 29 March
2025 2024 2025
£'m £'m £'m
Gross profit 233.9 200.0 408.8
Net IAS 41 valuation movement on biological assets (5.1) 3.4 11.1
Adjusted gross profit 228.8 203.4 419.9
15. Alternative performance measures (continued)
Adjusted Group operating profit and adjusted EBITDA
52 weeks ended
Half year 29 March
2025 2024 2025
£'m £'m £'m
Group operating profit 117.1 94.0 190.6
Net IAS 41 valuation movement on biological assets (5.1) 3.4 11.1
Amortisation of intangible assets 1.0 2.2 3.6
Impairment of intangible assets - - 1.6
Adjusted Group operating profit 113.0 99.6 206.9
Depreciation of plant, property and equipment 38.0 34.0 68.1
Depreciation of right-of-use assets 10.4 8.8 18.2
Adjusted EBITDA 161.4 142.4 293.2
Adjusted profit before tax
52 weeks ended
Half year 29 March
2025 2024 2025
£'m £'m £'m
Profit before tax 109.2 90.2 181.6
Net IAS 41 valuation movement on biological assets (5.1) 3.4 11.1
Amortisation of intangible assets 1.0 2.2 3.6
Impairment of intangible assets - - 1.6
Adjusted profit before tax 105.1 95.8 197.9
Adjusted earnings per share
On adjusted profit for the period: Half year 52 weeks ended
29 March
2025 2025 2024 2024 2025 2025
Basic pence Diluted pence Basic pence Diluted pence Basic pence Diluted pence
On profit for the period 150.2 147.9 124.0 123.4 250.5 246.1
Net IAS 41 valuation movement on biological assets (9.6) (9.4) 6.4 6.4 20.8 20.4
Tax on net IAS 41 valuation movement on biological assets 2.4 2.4 (1.6) (1.6) (5.2) (5.1)
Amortisation of intangible assets 1.9 1.8 4.4 4.4 6.8 6.7
Tax on amortisation of intangible assets (0.5) (0.5) (1.1) (1.1) (1.7) (1.7)
Impairment of intangible assets - - - - 3.0 3.0
Tax on impairment of intangible assets - - - - (0.8) (0.8)
On adjusted profit for the period 144.4 142.2 132.1 131.5 273.4 268.6
15. Alternative performance measures (continued)
Free cash flow
52 weeks ended
Half year 29 March
2025 2024 2025
£'m £'m £'m
Net cash from operating activities 100.1 106.6 216.3
Net interest paid (3.1) (1.2) (2.7)
Free cash flow 97.0 105.4 213.6
Free cash conversion
52 weeks ended
Half year 29 March
2025 2024 2025
£'m £'m £'m
Free cash flow 97.0 105.4 213.6
Non-growth capital expenditure (20.2) (13.2) (31.4)
Net IAS 41 valuation movement on biological assets 5.1 (3.4) (11.1)
Payment of lease capital (8.2) (7.9) (16.2)
Payment of lease interest (4.3) (2.4) (6.0)
69.4 78.5 148.9
Adjusted profit for the period 77.2 70.8 146.5
Free cash conversion 89.9% 110.9% 101.6%
Return on capital employed
52 weeks ended
Half year 29 March
2025 2024 2025
£'m £'m £'m
Average opening and closing net assets 981.9 909.2 949.7
Average opening and closing net debt 189.9 124.7 135.9
Average opening and closing pension surplus (0.1) (0.2) (0.1)
Average opening and closing deferred tax 36.8 29.4 30.2
1,208.5 1,063.1 1,115.7
Adjusted Group operating profit 220.3 199.2 206.9
Return on capital employed 18.2% 18.7% 18.5%
Return on capital employed over a 12 month period is a key performance
indicator for the Group and is defined as adjusted operating profit divided by
the sum of average opening and closing net assets, net debt/(funds), pension
liability/(surplus) and deferred tax.
16. Principal risks and uncertainties
The Group adopts a structured and mature approach to risk management, ensuring
that a systematic and planned process for identifying, assessing,
prioritising, mitigating, and monitoring risks is taken throughout the
business. Over recent months, a successful upgrade of the existing Risk
Management IT System has enhanced our risk reporting processes and provided
further options to create greater interconnectivity of risks across different
areas of the business. Led by an external subject matter expert, the Group is
currently focusing on enhancing the oversight of risk mitigation activities,
through an Assurance Mapping Exercise and Provision 29 reporting.
The principal risks and uncertainties facing the Group are set out in detail
on pages 78 to 82 of the Annual Report and Accounts for the 52 weeks ended 29
March 2025, dated 20 May 2025, a copy of which is available on the Group's
website.
Following a detailed review of the Group's principal risks, the pig meat
availability and price principal risk has been broadened to the availability
and cost of supplies, to better reflect the Group's wider portfolio of key
suppliers. In addition, following recent published breaches to animal welfare
standards that we uphold across our business, the risks in this area
previously embedded in site risk registers have been escalated and
consolidated into a new animal welfare principal risk which will enable issues
in this area to be effectively monitored.
The Board therefore considers the principal risks and uncertainties at 27
September 2025 to be as follows:
- Infection within livestock - Recruitment and retention of key personnel
- Health and safety - Food scares and product contamination
- Disruption to Group operations - Availability and cost of supplies
- Animal welfare - Interest rate, currency, liquidity, and credit risk
- Labour availability and cost - Sustainability and climate change
- IT systems and cyber security - Reliance on key customers
- Consumer demand
In common with other UK businesses, the Group has continued to see volatility
within existing risks caused by external issues including changes to UK
Government policy, the ongoing cost-of-living crisis and broader economic and
geopolitical uncertainties. In addition, the Group is acutely aware of the
ongoing threat of a cyber-attack and continues to invest and enhance existing
controls and processes in this key area.
As previously reported, the Group also remains aware of the impact an African
Swine Fever (ASF) outbreak would have on our operations and specifically our
ability to export. The spread of ASF continues to be closely monitored and we
continue to lobby industry bodies and the Government to introduce prompt
legislation and operational guidance, the absence of which creates a
significant risk to the Group and livestock industry. Across all Cranswick
farms, robust bio-security protocols remain in place and strictly enforced.
Independent review report to Cranswick plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Cranswick plc's condensed consolidated interim financial
statements (the "interim financial statements") in the interim results of
Cranswick plc for the 26 week period ended 27 September 2025 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Group balance sheet as at 27 September 2025;
· the Group income statement and Group statement of comprehensive
income for the period then ended;
· the Group statement of cash flows for the period then ended;
· the Group statement of changes in equity for the period then ended;
and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the interim results of Cranswick
plc have been prepared in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the interim results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The interim results, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim results in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the interim results, including the
interim financial statements, the directors are responsible for assessing the
group's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the interim results based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
Leeds
25 November 2025
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR PPGQWGUPAGMC
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Cranswick
See all newsREG - Cranswick PLC - Interim Results
AnnouncementREG - Cranswick PLC - Director/PDMR Shareholding
AnnouncementREG - Cranswick PLC - Holding(s) in Company
AnnouncementREG - Cranswick PLC - Total Voting Rights
AnnouncementREG - Cranswick PLC - Director/PDMR Shareholding
Announcement