REG - Cranswick PLC - Preliminary Results
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RNS Number : 2947J Cranswick PLC 20 May 2025
CRANSWICK plc: PRELIMINARY RESULTS
Record investment and strong returns
20 May 2025
Cranswick plc ("Cranswick" or "the Company" or "the Group"), a leading UK food
producer, today announces its audited preliminary results for the 52 weeks
ended 29 March 2025.
Financial highlights(1): 2025 2024 Change Change
52 weeks
53 weeks
(Reported)
(52 weeks(3))
Revenue £2,723.3m £2,599.3m +4.8% +6.8%
Revenue (like-for-like(2)) +4.4% +6.4%
Adjusted Group operating profit £206.9m £185.1m +11.8% +14.0%
Adjusted Group operating margin 7.6% 7.1% +48bps +48bps
Adjusted profit before tax £197.9m £176.6m +12.1% +14.3%
Adjusted earnings per share 273.4p 242.8p +12.6% +15.6%
Return on capital employed(4) 18.5% 18.5% +7bps
Net debt (excluding IFRS 16) £39.7m £0.1m £(39.6)m
Dividend per share 101.0p 90.0p +12.2%
Statutory measures: 2025 2024 Change
Group operating profit £190.6m £166.9m +14.2%
Profit before tax £181.6m £158.4m +14.6%
Earnings per share 250.5p 210.4p +19.1%
Financial highlights (on a comparable 52 week basis(3)):
· Strong revenue growth of 6.8% with like-for-like(2) revenue 6.4%
ahead
o Volume growth of 7.7% driven by premium product range growth and record
Christmas trading period
o Fresh Pork export revenue 10.2% ahead following Norfolk site China licence
reinstatement
o Pet Products revenue increased 47.8% as onboarding of Pets at Home
business continues
o Poultry revenue up by 20.3% driven by new Cooked and Prepared Poultry
retail listings
· 48bps increase in adjusted operating margin to 7.6%, reflecting a
strong contribution from growing agricultural operations, excellent capacity
utilisation and tight cost control
· Free cash conversion(1) of 101.6% with ROCE(4) of 18.5%
Strategic highlights:
· Long-term supply agreements with strategic retail partners
secured and expanded, including 10 years sole supply of British fresh pork,
sausage, premium bacon and cooked meats with Sainsbury's
· £24m acquisition of JSR Genetics completed, a leading UK based
pig genetics producer
· £32m acquisition of Blakemans, a leading food service sausage
manufacturer, completed on 16 May 2025
· Investment in pig farming operations continues at pace, driving a
14% year-on-year increase in pig production
o Now almost 1m pigs on the ground at any time, 19% up on March 2024
o Investment in farming operations to secure supply and drive productivity
improvements
· Record capital spend of £138m with significant progress on
pipeline of earnings enhancing major capital projects
o £29m expansion of the two added-value Hull poultry sites commissioned
and nearing completion
o £25m Worsley houmous and dips facility fit out progressing well with
the initial phase commissioned
o £22m investment in incubatory capacity at the Kenninghall site and Eye
throughput expansion underway
o £62m multi-phased expansion project at the Hull pork primary processing
site progressing as planned
· £35m now committed to increase Hull pork primary processing site
capacity from 35k to 50k pigs per week.
Adam Couch, Cranswick's Chief Executive Officer, commented:
"This year we have made significant strategic and financial progress
delivering record revenue and adjusted profit before tax. We have also
continued to make substantial investment across our industry leading asset
base, our farming operations and in acquisitions to support our long-term
growth ambitions.
"We are accelerating the pace at which we invest to drive strong returns.
This year we spent a record £138 million across our business to add capacity,
expand capability and drive further efficiencies through automation and scale.
"I am delighted to announce the acquisition of Blakemans, a well‐invested,
leading food service sausage manufacturer. Blakemans is highly complementary
to our existing added-value Gourmet business. We look forward to welcoming
the entire Blakemans team to Cranswick and to working with them to develop the
business further.
"I would like to thank everyone at Cranswick for their unwavering dedication
and support. Our continued successful performance in challenging market
conditions reflects the talent, capability and determination of our colleagues
across the business. The culture we have fostered, centred around a clear
ambition to deliver strong sustainable growth, will continue to be the key
driver of our success over the long-term.
"We have made a positive start to the new financial year with the UK consumer
continuing to recognise the quality, value and versatility of our pork and
poultry product ranges. Looking further ahead, I am confident that the
strengths of the business which include its long-standing customer base,
breadth and quality of products, robust financial position and industry
leading asset infrastructure will support the successful development of
Cranswick in the current financial year and over the longer-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 11.
2 Like-for-like revenue references excludes the current year contribution from
current and prior year acquisitions prior to the anniversary of their
purchase.
3 2024 was a 53 week accounting period. Comparable 52 week references exclude
the impact of the 53(rd) week in the prior year comparatives.
4 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)/deficit and deferred tax.
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 / Flora Mackenzie
+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 15,400 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. For more information go to: 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)
Chairman's Statement
Over the past year, we have made further progress in strengthening our
position as a market leader and delivering against our long-term strategic
objectives. We have reported record results, exceeding our recently updated
medium-term targets, enabling us to increase our progressive dividend for the
35(th) consecutive year.
Our experienced and agile management team has continued to successfully
navigate a challenging operating and wider macroeconomic environment. Their
relentless attention to our strategic goals coupled with operational strength
and leadership has been remarkable. On behalf of the Board, I would like to
thank them and all our colleagues across the business. Concentrating on
quality, innovation, and customer service continues to underpin the resilience
of our business model, demonstrating our ability to deliver consistent value
for all stakeholders, while positioning the Group for sustainable, long-term
growth.
We believe that government should provide a clear and coherent framework to
facilitate long term investment and sustained growth across the industry. So,
it was disappointing that food was excluded from the new government's
industrial strategy although the government has recently established a new
body to deliver a standalone national food strategy. The strategy will link
food policy with health, address barriers to investment, promote fairness and
reduce the impact that the food system has on the planet. The Group regards
each of those priorities as being central to its own strategic purpose.
As a leading UK food producer, we are aligned with others across the sector in
our ambition to operate in an environment underpinned by certainty and
success. Translating this ambition into action requires a regulatory
environment that supports long-term sustainable investment.
One of the most significant barriers to unlocking the business' full potential
is the complexity and inefficiency of the current planning system. Excessive
bureaucracy conflicted with our objective to enhance UK food security and
significantly delayed important projects such as the redevelopment and
expansion of the Methwold and Feltwell farms in Norfolk, and the construction
of a second poultry facility at Eye in Suffolk. These projects are essential
prerequisites to enhancing capacity, improving food resilience, and meeting
rising consumer demand. A more streamlined and responsive planning framework
is, therefore, essential to unlocking capital investment, supporting job
creation, and growing regional economies.
The UK pig herd has contracted leading to tighter pig supply, while the
poultry sector remains under pressure from reduced rearing capacity following
the industry wide move to lower stocking densities to meet enhanced animal
welfare standards.
To reinforce supply chain resilience, and as previously announced, we have
expanded our UK farming operations in East Yorkshire through the acquisition
of J.S.R. Genetics Limited ('JSR Genetics') from JSR Farms Limited, an
existing, long-standing, valued supplier to Cranswick. The transaction
included the pig genetics and pig farming operations of JSR Farms Limited.
JSR Genetics is a leading UK based pig genetics company, located in East
Yorkshire and is renowned for its innovative genetic solutions for cost
effective pig production. We now have the capability to offer our customers
an end-to-end supply chain solution through which we can drive further
productivity gains and quality improvements.
We have also increased our self-sufficiency in premium, higher welfare,
outdoor pigs with further herds acquired in East Anglia and continued
investment in existing herds and farming infrastructure across our wider UK
operations. This increasing self-sufficiency provides our strategic retail
partners with greater supply chain resilience and access to an unparallelled
level of innovation and quality. That enhanced capability was a critical
feature in our new 10-year partnership with Sainsbury's, which reflects the
benefits of long-term shared goals, supply chain controls and alignment with
consumer interests.
Over the last 12 months we have accelerated the pace at which we deploy
capital to drive attractive and industry leading returns with a record-level
of investment across our operations of £138 million. Strategic investment
at key sites is not only creating a world-leading asset base, but is also
enhancing capabilities, increasing efficiencies and improving food safety and
quality.
We remain focused on delivering strong returns for our Shareholders, while
producing food of the highest quality. With dedicated production facilities
aligned to major customers and industry-leading service levels, we are
building a supply chain fit for the future. Increasing customer integration
alongside strategic investment in our supply chain reflects the importance our
retail customers place on the security of supply, enabling us to continue
building a strong reputation as an industry leader.
Results
Total revenue for the 52 weeks to 29 March 2025 was £2,723.3 million, an
increase of 6.8 per cent from the prior year on a comparable 52 week basis.
On the same basis, like-for-like revenue grew by 6.4 per cent.
Adjusted profit before tax for the period at £197.9 million was 14.3 per cent
higher than the prior year on a comparable 52 week basis. Adjusted earnings
per share on the same basis was up 15.6 per cent at 273.4 pence.
Cash flow and financial position
At the end of the year, net debt was £172.4 million, up from £99.4 million
in the previous year. Net debt excluding IFRS 16 lease liabilities increased
to £39.7 million compared to £0.1 million previously. The Group has access
to an unsecured, sustainability-linked £250 million facility, which runs
through to November 2026.
Dividend
The Board is proposing a final dividend of 76.0 pence per share, 12.9 per cent
higher than the 67.3 pence paid last year. Together with the interim
dividend of 25 pence per share, this equates to a total dividend for the year
of 101.0 pence per share, an increase of 12.2 per cent on last year, extending
the period of consecutive years of dividend growth to 35 years.
The final dividend, if approved by Shareholders, will be paid on 29 August
2025 to Shareholders on the register at the close of business on 18 July
2025. Shares will go ex-dividend on 17 July 2025.
Board changes
Rachel Howarth was appointed as a Director on 1 May 2024. Rachel succeeded
Liz Barber as Chair of the Remuneration Committee after our AGM in July 2024,
as intended, following the conclusion of the scheduled review of the
Directors' Remuneration Policy.
Outlook
As we begin a new year of trading and celebrate our 50(th) anniversary, we are
inspired by the achievements of the past and excited by the opportunities
ahead. I look forward to commemorating Cranswick's 50(th) anniversary and
celebrating our rich history.
Thanks to our strategic investments and the unwavering dedication of our teams
across the organisation, we are in a stronger position than ever to deliver on
the Group's strategy. The start to the current financial year has been in
line with the Board's expectations. The strengths of the business which
include its diverse and longstanding customer base, breadth and quality of
products and channels, robust financial position and industry leading
infrastructure will support the further development of Cranswick in the
current financial year and over the longer-term.
Tim J Smith CBE
Chairman
20 May 2025
Chief Executive's Review
Further strong strategic and financial progress
This year we have made significant strategic and financial progress delivering
record revenue and adjusted profit before tax. We have also continued to
make substantial investment across our industry leading asset base, our
farming operations and in acquisitions to support our long-term growth
ambitions.
Our successful performance in challenging market conditions reflects the
strength of our customer relationships, the quality of our asset base, our
deep vertical integration and, most importantly the talent, capability and
determination of our colleagues across the business. I would like to thank
them for their unwavering commitment. The culture we have fostered, centred
around a clear ambition to deliver strong sustainable growth, has been the key
driver of our continued success over the long-term.
We are accelerating the pace at which we invest to drive strong returns.
This year we spent a record £138 million across our business to add capacity,
expand capability and drive further efficiencies through automation and
scale. Effective deployment of capital to drive strong returns has been a
key attribute of Cranswick's successful long-term performance and, going
forward, we will continue to invest at pace across our asset base in line with
our recently updated medium-term target of between 40 and 50 per cent of
adjusted EBITDA.
Acquisitions are a core element of our growth strategy, allowing us to
consolidate further our core business, expand newer growth categories or
diversify into new sectors and markets. We often have close working
relationships with the businesses we acquire. The recent acquisition of JSR
Genetics, a leading, UK based, pig genetics company located in East Yorkshire,
is a good example of this.
We are also deepening and strengthening our strategic customer partnerships,
highlighted by the recently announced 10-year sole supply agreement with
Sainsbury's and the extension of the Tesco Sustainable Pig Group. These
relationships are underpinned by our relentless focus on delivering
outstanding service, continuous innovation and the highest standards of
product quality.
We continue to recognise the strategic importance of UK food security.
During the year we expanded our vertical integration across genetics, feed
milling and pig and poultry farming. We have deepened and strengthened our
supply chains to make our business more sustainable and provide food security
for our customers and consumers.
The poultry industry transition to lower stocking densities in line with the
Better Chicken Commitment represents a significant milestone in improving
animal welfare standards. We welcome this initiative, and we have invested
across our poultry farming operations to ensure we can meet this new
standard. However, this shift, which now means 20 per cent more space is
required to grow the same number of birds, is placing additional pressure on a
growth industry which has been starved of investment over many years.
Cranswick's £92 million facility in Eye, Suffolk was the first new build UK
poultry facility in more than 30 years when it was commissioned in 2019. We
are prepared to invest at pace, to grow our own business and support the wider
industry at a time of rising consumer demand.
Delivering strong and sustainable growth
We have again delivered record results, with reported revenue growing by 6.8
per cent to £2,723.3 million and adjusted operating profit increasing by 14.0
per cent to £206.9 million on a comparable 52 week basis. On the same
basis, earnings per share were 15.6 per cent higher and operating margin
improved to 7.6 per cent reflecting the growing contribution from our
agricultural operations, excellent capacity utilisation, efficiency
improvements and tight cost control.
Net debt on a pre-IFRS16 basis increased from £0.1 million to £39.7 million
reflecting a record year of capital investment and the acquisition of JSR
Genetics. Return on capital employed at 18.5 per cent reflects the strong
compound returns we continue to generate from the capital we deploy.
We are proposing to increase our full year dividend by 12.2 per cent, marking
our 35th year of consecutive dividend growth.
We have grown revenue, adjusted profit before tax, earnings per share and
dividend per share by more than 10 per cent per annum over the last 10 years,
which is clear evidence of our strong and sustainable growth model.
Significant progress in delivering our strategy
Over the last 12 months we have made significant progress in delivering our
strategy. We continue to gain market share through our relentless focus on
quality, service and innovation.
Our core pork business performed extremely well with record pig numbers
processed and good growth in our fresh pork and value-added, convenience
categories. I was extremely pleased to receive the positive news in early
December that the China export licence at our Norfolk primary processing
facility had been reinstated four years after we were advised by DEFRA to
self-suspend it. Our team worked tirelessly throughout this four-year period
to get the licence reinstated and I thank those involved for their
determination and perseverance. A full range of products started being
shipped to China from early January and contributed to a strong year-on-year
increase in Far Eastern export revenues.
Our poultry and Mediterranean foods categories again performed well.
Production of the Ramona's houmous brand moved to the new Worsley facility in
September and we have recently launched a range of new and complementary
products with more planned over the coming months. Our poultry business
performed exceptionally well growing by more than 20 per cent on a comparable
52 week basis. Notwithstanding the planning challenges we are managing,
poultry will continue to be the mainstay of our growth ambitions over the next
five years and beyond.
After a relatively slow and prolonged start-up phase since we acquired the pet
food business in January 2022, the business has really gained momentum.
Revenue was ahead by almost 50 per cent as we continue to strengthen our
relationship with Pets at Home. The £10 million capacity expansion project
is now complete.
Record investment driving strong and sustainable returns
We are accelerating the pace at which we invest to drive strong returns.
This year we spent a record £138 million, representing 5.1 per cent of
revenue, across the business to add capacity, expand capability and drive
further efficiencies through automation and scale. Effective deployment of
capital to drive strong returns has been a key attribute of Cranswick's
successful long-term performance. We have now invested £480 million across
our asset base over the last five years and, going forward, we will continue
to invest at pace across our asset base in line with our recently updated
medium-term target of between 40 and 50 per cent of adjusted EBITDA.
We spent £63 million across the four major strategic capital projects in the
year. The £29 million expansion of the two added-value poultry sites in
Hull is now complete with the new business onboarded. The £25 million fit
out of the houmous and dips facility in Worsley, Manchester, is progressing to
plan with the initial phase now successfully commissioned. The £22 million
project to increase incubatory and processing capacity at the Kenninghall and
Eye sites respectively, in Suffolk, is underway. Finally, the £62 million
multi-phased expansion project at our Hull pork primary processing facility is
progressing as planned. We have also now committed a further £35 million to
lift capacity at the Hull site from 35,000 to 50,000 by the end of March
2027.
Acquisitions are a core element of our growth strategy, allowing us to
consolidate further our core business, expand newer growth categories or
diversify into new sectors and markets. Many of our acquisitions are
businesses with which we already have a close working relationship. The £24
million acquisition of JSR Genetics, a leading UK based, pig genetics company
located in East Yorkshire, is a good example of this, as is the recent
acquisition of Blakemans, a well-invested, leading food service sausage
manufacturer.
We continue to expand and strengthen our pig farming business through both
organic growth and acquisitions. We acquired a 4,000 outdoor pig herd in
East Anglia as well as the JSR Genetics business. We have trebled our own
pig production over the last six years with finished pig numbers increasing 14
per cent year-on-year.
Our poultry business continues to be a key growth driver for the business.
We are investing close to £50 million to add incubatory capacity, lift
processing capacity at Eye and significantly upscale our two added-value
facilities in East Yorkshire. We are also materially expanding our rearing
footprint through a combination of acquisition and new lease arrangements.
Second Nature - delivering value responsibly
During the year, we successfully refreshed our Second Nature sustainability
strategy supported by four working pillars: farming with conscience; sourcing
with integrity, producing responsibly; and living better. We made good
progress in embedding these pillars during the last financial year.
We transitioned all our soy purchases to 100 per cent full mass balance
deforestation free soya by the end of 2024, delivering a 14 per cent reduction
in the carbon footprint of an outdoor reared pig. During the year, we
further increased our focus on regenerative agriculture, working with the WWF
on a Carbon Inset Project to support resilient farming systems and
productivity.
We are engaging with our suppliers to improve the quality of our Scope 3 data,
splitting it into Forest, Land and Agriculture ('FLAG') and non-FLAG
categories. We are enhancing the visibility and transparency within our
supply chains, and we are working with our suppliers to develop lighter weight
packaging, reducing plastic usage and exploring plastic alternatives. Since
2017, we have reduced plastic use by 20 per cent.
To advance our Net Zero ambitions, we are in the process of setting FLAG and
non-FLAG targets in conjunction with the Science Based Target initiative
('SBTi'). These revised targets will update and supersede our Scope 1, 2 and
3 short-term targets, while establishing new, long-term verified commitments.
A commitment to zero accidents and eliminating work related illnesses is the
bedrock of our safety culture. During the year, RIDDOR incidents decreased
by 27 per cent, well ahead of our 10 per cent reduction target. We also
lifted the response rate in our employee engagement survey to 80 per cent,
with the survey highlighting continued progress in diversity and inclusion.
We know that our customers and consumers care deeply about the welfare of
animals involved in food production - it is a priority we share. We have
always placed the highest importance on animal health and wellbeing and
continuously aim to have the most stringent standards in the sector. We take
seriously any instance, anywhere in our supply chain, where behaviour fails to
meet those standards. We are therefore instigating a new, fully independent,
expert veterinarian review of all our existing animal welfare policies,
together with a comprehensive review of our livestock operations across the
UK. We will provide a further update on this work in due course.
Investing in our talent and culture
Above all, Cranswick is a people-focused business, valuing our colleagues for
the unique qualities they bring us. To attract and retain top talent in a
competitive market, we have established ourselves as a leader in pay, working
conditions, health and safety, inclusivity, and employee wellbeing. We offer
market-leading graduate and apprenticeship opportunities, as well as taking a
proactive approach to filling gaps in our organisation by reaching out to our
local communities and recruiting from industries experiencing downturns, where
individuals have valuable transferable skills. We set and expect the highest
standards from all colleagues and we will take swift and appropriate action
when these standards are not adhered to.
We welcomed 14 more graduates into our programme this year, taking the total
to 102 since 2013. I am delighted to say that 37 of these individuals have
now been promoted into senior full-time roles. In addition, we have around
190 apprentices across the Group, pursuing a wide range of apprenticeship
qualifications.
We actively promote and support diversity and inclusion across the Group,
nurturing and developing our people within a culture that values creativity,
innovation, and a broader range of perspectives. In February 2025, Cranswick
signed the Race at Work Charter, committing to initiatives that promote
workplace diversity and inclusion. We also founded the Next Generation
Committee, giving younger employees a platform to share their perspectives on
our business and strategic direction.
Adam Couch
Chief Executive Officer
20 May 2025
Operating and Financial Review
Operating review
Revenue and adjusted Group operating profit
2025 2024 Change Change
52 weeks
(Reported)
(52 weeks(3))
53 weeks
Revenue £2,723.3m £2,599.3m +4.8% +6.8%
Revenue (like-for-like(2)) +4.4% +6.4%
Adjusted Group Operating Profit(1) £206.9m £185.1m +11.8% +14.0%
Adjusted Group Operating Margin(1) 7.6% 7.1% +48bps +48bps
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 11.
2 Like-for-like revenue references excludes the current year contribution from
current and prior year acquisitions prior to the anniversary of their
purchase.
3 2024 was a 53 week accounting period. References to revenue and adjusted
group operating profit percentage change throughout the operating and
financial review are on a comparable 52 week basis.
Revenue
Revenue increased by 6.8 per cent to £2,723.3 million with volumes 7.7 per
cent ahead, reflecting a strong underlying performance across our core
categories, supported by the continued outperformance of premium added-value
product ranges and a record Christmas trading period. Export revenue was 9.7
per cent ahead driven by a stronger second half following the reinstatement of
the Norfolk site China export license. Pet food revenue was 47.8 per cent
ahead as the onboarding of Pets at Home business continues to build. Poultry
revenue increased by 20.3 per cent reflecting strong growth in Cooked and
Prepared Poultry and now represents 19.6 per cent of total Group sales.
Adjusted Group operating profit
Adjusted Group operating profit was 14.0 per cent higher at £206.9 million
with Adjusted Group operating margin up 48 basis points to 7.6 per cent.
Higher Group operating margin reflected the positive contribution from the
Group's expanded agricultural operations across our Pork and Poultry
businesses alongside strong volume growth, excellent capacity utilisation and
a continued focus on tight cost control.
Category review
FOOD SEGMENT
Fresh Pork
Fresh Pork revenue was 4.0 per cent ahead of the prior year and represented
24.2 per cent of Group revenue. Growth reflected strong volume driven demand
across retail, wholesale and export channels.
Retail and wholesale channel revenue was 2.8 per cent ahead with corresponding
volumes up by 5.0 per cent. This was driven by the increase in production
volumes year-on-year offset by a marginal decrease in the cost of pig
production, reflecting deflation in key commodities, with the benefit being
passed to customers.
Export revenues were 10.2 per cent ahead with strong volume growth partially
offset by lower pricing. Volume growth reflected higher pig numbers
processed. Export revenues were supported further, through increased volumes
shipped and improved pricing of 'Fifth Quarter material', in the second half
following the reinstatement of the Norfolk site's China export license after a
four year hiatus, although year-on-year pricing to China and other Far Eastern
markets remained lower on average versus the prior year.
Fresh Pork, agricultural operations
We continue to invest in and strengthen our pig farming and feed milling
operations. During the year, we increased the size, scale and quality of our
indoor and outdoor pig herds through both organic investment and
acquisition. We are now the only UK processor with direct control over
integrated pig genetics production, following the acquisition of JSR
Genetics. Through enhanced genetics selection we can now improve the eating
quality of British pork, supporting premiumisation and strengthening customer
partnerships. The acquisition of JSR Genetics also increases our
self-sufficiency in indoor pig production. During the first quarter, we also
completed the acquisition of a long-standing existing supplier of RSPCA
Assured outdoor-bred pigs, based in East Anglia, which we have integrated into
the Wayland Farms operation.
We have trebled our own pig production over the past six years, and we are now
the largest pig farming operation in the UK. Finished pig numbers increased
by 14 per cent compared to the prior year with self-sufficiency maintained at
well over 50 per cent despite growth in demand from our three primary
processing facilities and downstream added-value pig meat operations. We
also increased our self-sufficiency in pig feed milling to 20 per cent. We
are now producing over 36,000 finished pigs each week and have almost 1
million pigs on the ground at any time, an increase of 19 per cent versus
March 2024. We will continue to invest in our pig farming and feed milling
operations to ensure that we have a secure supply chain in place to deliver
improved UK food security for our strategic retail partners and consumers.
During the year, we have strengthened farm-to-fork relationships across
several of our strategic customer partnerships. This includes the recently
announced extension of the Tesco Sustainable Pig Group, securing Tesco's
supply chain for its Finest and core fresh pork and sausage ranges. The
10-year sole supply agreement with Sainsbury's includes fresh pork, in
addition to sausage, premium bacon and cooked meats ranges. These long-term
partnerships give us, alongside independent farmers, the confidence to
continue investing in British pig farming, ensuring further investment in
leading animal welfare standards and farm productivity.
Fresh Pork, primary processing
All three primary processing sites lifted production volumes year-on-year with
the total number of pigs processed increasing by 8.1 per cent. Increasing
throughput drove higher revenues through retail, wholesale and export
channels, with the balance traded internally to fuel growth in our added-value
gourmet and convenience ranges. Including products supplied internally,
total Fresh Pork revenue surpassed £1 billion.
We remain committed to continued investment across our primary processing
operations to increase capacity and drive further operational efficiencies.
The ongoing £62 million redevelopment of the Hull primary processing site to
expand the site footprint and add onsite cold storage capability is
progressing to plan and is expected to be operational from March 2026. We
are now committed to a further £35 million investment to upgrade the Hull
site's abattoir, creating the first 1,000 pig per hour site in the UK and
expanding capacity up to 50,000 pigs per week. Ongoing investment at the
Ballymena and Norfolk sites includes projects that will deliver efficiency
improvements and production flexibility.
During the year, we secured long-term customer partnerships that underpin
retail Fresh Pork sales volumes for the future. This builds on a record
Christmas performance and new innovative premium products launches, utilising
bespoke genetics with increased levels of intramuscular fat and improved
eating quality. Innovation in pig genetics has supported revenue growth and
is driving increased consumer appeal for pork products through improved taste
and succulence.
Convenience
Convenience revenue was 0.5 per cent ahead of the prior year and represented
36.2 per cent of Group revenue.
Cooked Meats revenue was modestly ahead of the prior year, reflecting new
retail business secured and with underlying growth from new listings, offset
by the decision to forego some lower margin business at the start of the
year. We continued to see positive momentum in 'slow cook' and 'sous vide'
products throughout the year, with retailers looking to broaden their ranges
with more premium and convenient meal solutions in this growing category.
This capability also contributed to a record Christmas for the business with
slow cooked turkey and the 'Christmas Dinner in a Box' products continuing to
gain traction with consumers.
The Hull Cooked Meats facility renewed its contract with the site's anchor
retail customer and launched a new range of slow cook products with a leading
retail customer towards the end of the year. Significant investment projects
in the year included further expansion of slow cook and slicing capability,
delivering labour efficiencies and providing headroom for future growth.
The Milton Keynes facility maintained leading service levels despite
disruption from ongoing site investment projects. We have launched a new
premium tier range with the site's anchor customer, following recent
investment in expanding capacity. An additional listing for British Corned
Beef has been secured which will be onboarded early in the new financial year.
The Valley Park site in South Yorkshire will benefit from the recently
announced long-term Sainsbury's deal, securing sole supply of the Cooked Meats
range with onboarding of additional lines expected to take place by the end of
the current financial year.
Continental and Mediterranean Products revenue was modestly behind the prior
year, with stronger pricing offset by lower volumes. Imports of certain
European charcuterie products were disrupted during the second half of the
year due to the outbreak of foot and mouth disease in Germany. Despite these
challenges, we have maintained retail service levels for these products ahead
of competitors through the Bury site's 'Made in Manchester' operating model.
In olives and anti-pasti products, pricing has reflected support for olive
producers following the challenging 2024 summer harvest. The stronger
pricing also reflects an improvement in product mix with the business now
being focused on premium, added-value Mediterranean foods and supplying less
high volume, low value products. The ongoing popularity of charcuterie,
olives and anti-pasti products, either sold in single or mixed platter pack
formats, continues to drive expansion of wider Mediterranean food categories
and by driving this innovation we delivered a record Christmas trading period
in the year.
The Ramona's houmous brand is the leading retail houmous brand measured by
both volume and value and has recently launched new innovative products across
leading retailers, including new flavours and formats. We resolved the
capacity constraints of Ramona's small Watford plant by moving production to
the newly commissioned Worsley facility halfway through the year. The new
facility has recently secured new own-label business with one of the Group's
leading retail customers. The Worsley facility creates a platform to rapidly
expand the Ramona's and own-label houmous and dips ranges and provides
substantial headroom for further category innovation and growth.
The Bury site, newly commissioned in 2019, is already approaching capacity
demonstrating the rapid growth of our Continental Products business. We have
recently acquired a 5 acre site adjacent to the facility to expand the
footprint and ensure there is ample headroom for future growth. Further
operational efficiencies have been delivered at the site through investment in
pepper stuffing and olive desalination automation.
During the year, the Katsouris Brothers site secured new business for a
significant existing food service customer co-packing their branded range that
is supplied across all major retailers. We secured new halloumi listings
through the year supplying a leading retail customer. We celebrated the 60th
anniversary of the Cypressa brand, which produces a range of nuts and pulses,
in the year. With strong growth in retail distribution Cypressa is now
recognised as a leading nut snacking brand in UK grocery. All these products
are produced at, or sourced through, our Katsouris business in North London
where investment in further capacity is ongoing.
Gourmet Products
Gourmet Products revenue was 8.8 per cent ahead of the prior year and
represented 18.7 per cent of Group revenue. Volumes were strongly ahead with
revenue growth supported by the contribution from Froch Foods, acquired during
the second half of the prior year.
Gourmet Sausage revenue was strongly ahead reflecting positive volume
momentum. Retail promotions across premium ranges and additional summer and
Christmas listings all contributed to strong underlying volume growth.
Strong demand for pigs in blankets continues with double-digit year-on-year
growth and over 78 million single units delivered to our customers across the
festive period, underpinning a record Christmas. We supported this
performance through innovation and premiumisation with the development of
double wrapped pigs in blankets and further investment in automated production
capacity.
Gourmet Bacon grew revenues year-on-year driven by increased volumes,
reflecting sales growth to existing retail customers. The site's largest
retail customer led this with strong promotional activity, particularly around
the key Christmas trading period. Towards the end of the year, we secured a
new listing with one of the Group's strategic retail partners.
Froch Foods, acquired during the prior year, continues to provide a positive
contribution to external revenue. We have transferred bacon curing for the
Hull Cooked Bacon and Sausage facility from the Sherburn site to Froch
Foods. This has created headroom for growth in premium bacon curing capacity
and is the more significant impact of the Froch Foods acquisition.
Revenue from the Hull Cooked Bacon and Sausage facility was ahead of the prior
year, reflecting strong volume growth with new retail business and further
quick service restaurant business onboarded at the end of the first half.
On 16 May 2025, following the year end, we acquired the entire issued share
capital of James T Blakeman & Co (Holdings) Limited ('Blakemans').
Blakemans is a leading manufacturer of specialist raw and cooked sausage
products supplying the food service sector. The business operates from a
dedicated well-invested facility in Staffordshire and employs a total
workforce of approximately 290. The acquisition is complementary to our
existing added-value Gourmet business, adding capacity in raw and cooked
sausage production whilst enabling efficient supply into the food service
market.
Pastry revenues were strongly ahead year-on-year reflecting a robust
underlying performance in the core product range with the site's anchor
customer. New product launches, including innovative meal solutions
developed in collaboration with a celebrity chef and new premium sausage roll
products, continue to drive category growth in our premium pastry range and
deliver improved sales mix for the site. During the year, the Malton
facility was awarded 'Fortress' status by the site's anchor retail customer,
one of only nine sites in the country to be awarded this status.
Poultry
Poultry revenue was 20.3 per cent ahead of the prior year and represented 19.6
per cent of Group revenue, up from 17.4 per cent in the previous financial
year.
Poultry, agricultural operations
We have expanded our fresh poultry farming supply chain at pace throughout the
year. Now nearing completion, we have secured the space necessary to enable
the move to enhanced welfare lower stocking densities.
The £9 million investment project to expand incubatory capacity at the
Kenninghall site in East Anglia is progressing to plan, with extensive mill
refurbishment works underway. This project will ensure we have an increased
and secure supply of birds available to match the planned uplift in Eye
processing capacity.
Poultry, primary and added-value processing
Fresh Poultry continued to perform well reflecting retail demand from the
site's anchor customer and a 7.2 per cent increase in birds processed at the
Eye facility versus the prior year. We have grown internally supplied Fresh
Poultry volumes driven by increased demand from new Cooked and Prepared
Poultry retail business onboarded in the year. The £13 million investment
project to add further capacity at Eye will add c.15 per cent additional
capacity and further automation.
Prepared Poultry revenues more than doubled and Cooked Poultry delivered
double digit growth, driven by increased volumes and improved sales mix
following the onboarding of new premium retail business. This growth has
been delivered despite disruption from the £29 million capacity and
capability expansion projects being completed across these sites in the year
and widely reported industry-wide fresh poultry supply challenges. These
projects are now nearing completion and supply into the new flagship retail
partner shared across the Cooked and Prepared Poultry sites has recently
started.
OTHER SEGMENT
Pet Products
Pet Products revenue was 47.8 per cent ahead of the prior year and represented
1.3 per cent of Group revenue. Strong revenue growth reflected the
successful ongoing roll out of the Pets at Home business, including the launch
of new premium lines in the year. We have continued to strengthen our
relationship with Pets at Home over the course of the year.
Whilst top line growth is pleasing, the financial performance of the pet food
business reflects the continued transformation taking place including the
ongoing strategic review of the customer base, brand investment and disruption
resulting from the major capital investment programme that has been ongoing
throughout the year. The business is well positioned to enter its next
phase, more fully aligned to Pets at Home.
Finance review
Revenue
Reported revenue increased by 4.8 per cent to £2,723.3 million (2024:
£2,599.3 million). Like-for-like revenue, excluding the impact from
acquisitions, increased by 4.4 per cent. On a comparable 52 week basis,
reported revenue increased by 6.8 per cent and like-for-like revenue increased
by 6.4 per cent.
Adjusted gross profit and adjusted EBITDA
Adjusted gross profit increased by 12.1 per cent to £419.9 million (2024:
£374.7 million) with adjusted gross profit margin at 15.4 per cent (2024:
14.4 per cent). Adjusted EBITDA increased by 9.9 per cent to £293.2 million
(2024: £266.8 million) and adjusted EBITDA margin increased by 50 basis
points to 10.8 per cent (2024: 10.3 per cent).
Adjusted Group operating profit
Adjusted Group operating profit increased by 11.8 per cent to £206.9 million
(2024: £185.1 million) and adjusted Group operating margin improved by 48
basis points to 7.6 per cent (2024: 7.1 per cent).
Full reconciliations of adjusted measures to statutory results can be found
in Note 11. The net IAS 41 movement on biological assets results in a
£11.1 million debit (2024: £2.2 million credit) on a statutory basis
primarily reflecting a reduction in sow value.
Finance costs and funding
Net financing costs of £9.2 million (2024: £8.9 million) included £6.0
million (2024: £3.6 million) of IFRS 16 lease interest. Bank finance costs
were £2.1 million lower than the prior year at £3.2 million (2024: £5.3
million) primarily reflecting the decrease in the bank base rate during the
year.
The Group has access to a £250 million revolving credit facility, including a
committed overdraft of £20 million running until November 2026. It also
includes the option to access a further £50 million on the same terms at any
point during the term of the agreement. The facility provides the business
with over £200 million of headroom at 29 March 2025. The adequacy of this
facility has been confirmed as part of robust scenario testing performed over
the three-year viability period for the Group.
Adjusted profit before tax
Adjusted profit before tax was 12.1 per cent higher at £197.9 million (2024:
£176.6 million).
Taxation
The tax charge of £47.3 million (2024: £45.3 million) was 26.0 per cent of
profit before tax (2024: 28.6 per cent). The standard rate of UK corporation
tax was 25.0 per cent (2024: 25.0 per cent). The effective rate was higher
than the standard rate due to the impairment of intangible assets and other
expenses which are not deductible for tax purposes. The effective tax rate
on adjusted profit before tax was 26.0 per cent (2024: 26.1 per cent).
Adjusted earnings per share
Adjusted earnings per share increased by 12.6 per cent to 273.4 pence (2024:
242.8 pence). The average number of shares in issue was 53,581,044 (2024:
53,776,235).
Statutory profit measures
Statutory profit before tax was £181.6 million (2024: £158.4 million), with
statutory Group operating profit at £190.6 million (2024: £166.9 million)
and statutory earnings per share of 250.5 pence (2024: 210.4 pence).
Statutory gross profit was £408.8 million (2024: £376.9 million).
Cash flow and net debt
The net cash inflow from operating activities in the year was £216.3 million
(2024: £228.4 million). The decrease of £12.1 million was primarily due to
a higher working capital outflow of £37.7 million. This was partially
offset by an increase in EBITDA of £26.2 million. Net debt, including the
impact of IFRS 16 lease liabilities, increased to £172.4 million (2024:
£99.4 million) with the inflow from operating activities offset by £135.6
million, net of disposal proceeds, invested in the Group's asset base, £49.5
million of dividends paid to the Group's Shareholders, £25.3 million of own
shares purchased and placed into the Cranswick Employee Benefit Trust, £22.2
million of IFRS 16 lease charges and £41.5 million of tax paid. There was a
£30.9 million increase in net debt in the year in relation to acquisitions.
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. On 2 December 2022, the Trustees of
the defined benefit pension scheme purchased a buy-in insurance policy to
secure the majority of the benefits provided by the scheme. The surplus on
this scheme at 29 March 2025 was £nil (2024: £0.2 million). The present
value of funded obligations was £17.8 million, and the fair value of plan
assets was £17.8 million. The Group did not make any contributions in the
year and does not expect to make any further contributions to the scheme
during the year ending March 2026.
Group income statement
For the 52 weeks ended 29 March 2025
2025 2024
Notes £'m £'m
Revenue 2,723.3 2,599.3
Adjusted Group operating profit 206.9 185.1
Net IAS 41 valuation movement in biological assets (11.1) 2.2
Amortisation of intangible assets (3.6) (5.0)
Impairment of intangible assets (1.6) (15.4)
Group operating profit 4 190.6 166.9
Finance costs (9.2) (8.9)
Share of net profit of joint venture 0.2 0.4
Profit before tax 181.6 158.4
Taxation (47.3) (45.3)
Profit for the year 134.3 113.1
Earnings per share (pence)
On profit for the year:
Basic 5 250.5p 210.4p
Diluted 5 246.1p 209.7p
Group statement of comprehensive income
For the 52 weeks ended 29 March 2025
2025 2024
£'m £'m
Profit for the year 134.3 113.1
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 year 0.3 (0.1)
Reclassification adjustments for gains/(losses) included in the income 0.1 (0.1)
statement
Income tax effect (0.1) 0.1
Net other comprehensive income/(expense) to be reclassified to profit or loss 0.3 (0.1)
in subsequent periods
Items not to be reclassified to profit or loss in subsequent periods:
Actuarial losses on defined benefit pension scheme (0.2) -
Income tax effect - -
Net other comprehensive expense not to be reclassified to profit or loss in (0.2)
subsequent periods
-
0.1
Other comprehensive income/(expense)
(0.1)
Total comprehensive income 134.4 113.0
Group balance sheet
At 29 March 2025
2025 2024
Notes £'m £'m
Non-current assets
Financial asset investment 0.1 0.1
Investment in joint venture - 0.8
Intangible assets 210.9 213.5
Defined benefit pension scheme surplus - 0.2
Property, plant and equipment 605.4 518.9
Right-of-use assets 123.7 92.4
Biological assets 4.3 6.4
Total non-current assets 944.4 832.3
Current assets
Biological assets 91.8 83.7
Inventories 126.9 113.7
Trade and other receivables 355.0 325.3
Other financial assets 0.3 -
Income tax receivable 6.9 2.0
Cash and short-term deposits 7 5.9 27.0
Total current assets 586.8 551.7
Total assets 1,531.2 1,384.0
Current liabilities
Trade and other payables (328.1) (310.0)
Other financial liabilities (0.3) (2.3)
Lease liabilities (16.4) (17.3)
Provisions (2.4) (1.8)
Total current liabilities (347.2) (331.4)
Non-current liabilities
Other payables (0.5) (0.9)
Other financial liabilities (45.6) (27.1)
Lease liabilities (116.3) (82.1)
Deferred tax liabilities (32.0) (28.4)
Provisions (1.7) (2.6)
Total non-current liabilities (196.1) (141.1)
Total liabilities (543.3) (472.5)
Net assets 987.9 911.5
Equity
Called-up share capital 5.4 5.4
Share premium account 133.0 128.3
Share-based payments 14.2 11.8
Shares held in trust (35.4) (15.6)
Hedging reserve 0.3 (0.1)
Retained earnings 870.4 781.7
Total equity attributable to owners of the Parent 987.9 911.5
Group statement of cash flows
For the 52 weeks ended 29 March 2025
2025 2024
Notes £'m £'m
Operating activities
Profit for the year 134.3 113.1
Adjustment to reconcile Group profit for the year to net cash inflows from
operating activities:
Income tax expense 47.3 45.3
Net finance costs 9.2 8.9
Loss on sale of property, plant and equipment 0.9 1.0
Loss on disposal of right-of-use assets asset - 0.2
Depreciation of property, plant and equipment 68.1 65.5
Depreciation of right-of-use assets 18.2 16.2
Amortisation of intangible assets 3.6 5.0
Impairment of intangible assets 1.6 15.4
Share-based payments 8.4 8.8
Share of joint venture (0.2) (0.4)
Release of Government grants (0.4) (0.4)
Net IAS41 valuation movement on biological assets 11.1 (2.2)
Increase in biological assets (8.7) (1.3)
(Increase)/decrease in inventories (12.8) 0.3
Increase in trade and other receivables (26.6) (33.8)
Increase in trade and other payables 3.8 28.2
Cash generated from operations 257.8 269.8
Tax paid (41.5) (41.4)
Net cash inflow from operating activities 216.3 228.4
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired 10 (25.0) (23.5)
Distribution received from joint venture 0.2 -
Payment of property, plant and equipment acquired on acquisition - (9.1)
Purchase of financial asset investment - (0.1)
Purchase of property, plant and equipment (137.6) (91.4)
Proceeds from the sale of property, plant and equipment 2.0 0.8
Net cash used in investing activities (160.4) (123.3)
Cash flows from financing activities
Interest paid (2.7) (5.0)
Proceeds from issue of share capital 4.7 4.4
Own shares purchased (25.3) (15.6)
Proceeds/(repayments) from borrowings 18.0 (14.0)
Repayment of borrowings acquired - (6.5)
Dividends paid (49.5) (43.9)
Payment of lease capital (16.2) (14.2)
Payment of lease interest (6.0) (3.6)
Net cash outflow from financing activities (77.0) (98.4)
Net (decrease)/increase in cash and cash equivalents 7 (21.1) 6.7
Cash and cash equivalents at beginning of year 7 27.0 20.3
Cash and cash equivalents at end of year 7 5.9 27.0
Group statement of changes in equity
For the 52 weeks ended 29 March 2025
Share Share Share-based Shares held in trust Hedging Retained Total
capital premium payments £'m reserve earnings equity
£'m £'m £'m £'m £'m £'m
At 25 March 2023 5.4 123.9 9.5 - - 704.1 842.9
Profit for the year - - - - - 113.1 113.1
Other comprehensive expense - - - - (0.1) - (0.1)
Total comprehensive income/(expense) - - - - (0.1) 113.1 113.0
Share-based payments - - 8.8 - - - 8.8
Shares acquired by Employee Benefit Trust - - - (15.6) - - (15.6)
Exercise, lapse or forfeit of share-based payments - - (6.5) - - 6.5 -
Share options exercised - 4.4 - - - - 4.4
Dividends - - - - - (43.9) (43.9)
Deferred tax related to changes in equity - - - - - 1.4 1.4
Current tax related to changes in equity - - - - - 0.5 0.5
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 - - 8.4 - - - 8.4
Shares acquired by Employee Benefit Trust - - - (25.3) - - (25.3)
Transfer to retained earnings on grant of shares to beneficiaries of the - - - 5.5 - (5.5) -
Employee Benefit Trust
Exercise, lapse or forfeit of share-based payments - - (6.0) - - 6.0 -
Share options exercised - 4.7 - - - - 4.7
Dividends - - - - - (49.5) (49.5)
Deferred tax related to changes in equity - - - - - 2.7 2.7
Current tax related 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
Notes to the accounts
1. Basis of preparation
The results comprise those of Cranswick plc and its subsidiaries for the 52
weeks ended 29 March 2025. This preliminary announcement has been prepared
on the basis of accounting policies as set out in the statutory accounts for
the 52 weeks ended 29 March 2025. This announcement does not constitute the
Company's statutory accounts within the meaning of Section 435 of the
Companies Act 2006.
The Consolidated Financial Statements of Cranswick plc have been prepared
under the historical cost convention, except where measurement of balances at
fair value is required as explained in the accounting policies below. The
Group's Financial Statements have been prepared in accordance with UK-Adopted
International Accounting Standards ('UK-Adopted IAS'). The Group's Financial
Statements have been prepared in accordance with international accounting
standards in conformity with the requirements of the Companies Act 2006.
The Financial Statements of the Group are prepared to the last Saturday in
March. Accordingly, these Financial Statements are prepared for the 52 week
period ended 29 March 2025. Comparatives are for the 53 week period ended 30
March 2024. The Balance Sheets for 2025 and 2024 have been prepared as at 29
March 2025 and 30 March 2024 respectively.
Statutory accounts for the 52 weeks ended 29 March 2025 and 53 weeks ended 30
March 2024 have been reported on by the auditors who issued an unqualified
opinion in respect of all years and the auditors' reports for 2025 and 2024
did not contain statements under 498(2) or 498(3) of the Companies Act 2006.
Statutory accounts for the 53 weeks ended 30 March 2024 have been filed with
the Registrar of Companies. The statutory accounts for the 52 weeks ended
29 March 2025, which were approved by the Board on 20 May 2025, will be
delivered to the Registrar of Companies following the Company's Annual General
Meeting.
Viability and Going Concern
In accordance with the provisions of the UK Corporate Governance Code, the
Board has assessed the going concern and viability of the Group over an
appropriate time period, taking into account the current position, future
prospects and the potential impact of the principal risks to the Group's
business model and ability to deliver its strategy.
The Board has reviewed management's forecasts that have been sensitised 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 impacting our chicken flock and
a widespread outbreak of African Swine Fever/Foot and Mouth Disease in the UK
and Europe, as well as the Group's considerable financial resources and strong
trading relationships with its key customers and suppliers. We have
considered the impacts of changes in US tariffs and recent retail cyber
threats and have concluded that they would have minimal impact on our
conclusion below. These forecasts, which have been reviewed by the Board, lead
the Board to believe that the Group is well placed to manage its business
risks successfully. As part of this review, the Directors have assessed the
Group's ability to continue as a going concern over a 16-month period to July
2026.
After reviewing the available information, including business plans and
downside scenario modelling and making enquiries, the Board has reasonable
expectation that the Group has adequate resources to continue in operational
existence for at least twelve months from the date of signing Group financial
statements. For this reason, they continue to adopt the going concern basis
for preparing these financial statements.
The Board has determined that a three-year period to March 2028 is an
appropriate period over which to provide its Viability Statement. This
timeframe has been specifically chosen due to the fast-moving nature of the
food industry and the current financial and operational forecasting cycles of
the Group.
The sensitivity analysis utilised the Group's robust three-year budget and
forecasting process to quantify the financial impact on the strategic plan and
on the Group's viability against specific measures including liquidity, credit
rating and bank covenants.
1. Basis of preparation (continued)
Given the strong liquidity of the Group; the committed banking facilities and
the diversity of operations, the results of the sensitivity analysis
highlighted that the Group, would, over the three-year period, be able to
withstand the impact of the most severe 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.
Based on the results of this analysis, the Board has a reasonable expectation
that the Group will be able to continue in operation and meet its liabilities
as they fall due over the period to 25 March 2028.
2. Accounting policies
The accounting policies applied by the Group in this preliminary announcement
are the same as those applied by the Group in the financial statements for the
53 weeks ended 30 March 2024, except for the new standards, interpretations
and change in accounting policy explained below.
Accounting standards or interpretations which have been adopted in the year
From 31 March 2024, the following standards and amendments are effective in
the Group's consolidated Financial Statements:
· IFRS 17 'Insurance Contracts';
· Amendments to IAS 8 'Accounting policies, Changes in Accounting
Estimates and Errors', distinguishing changes in accounting estimates from
changes in accounting policies;
· Amendments to IAS 1 'Presentation of Financial Statements', disclosure
of accounting policies and materiality judgements; and
· Amendments to IAS 12 'Income taxes', 'International Tax Reform -
Pillar Two Model Rules'.
There was no material impact on the Consolidated Financial Statements from any
amendments effective during the year.
Accounting standards or interpretations issued but not yet effective
IFRS 18 Presentation and Disclosure in Financial Statements: IFRS 18 was
issued in April 2024 and will replace IAS 1 Presentation of Financial
Statements. IFRS 18 will be effective for reporting periods beginning on or
after January 1, 2027. This standard sets out requirements for the
presentation and disclosure of information in Financial Statements,
particularly the Consolidated Statement of Income. The standard introduces a
defined structure for the Consolidated Statement of Income, additional defined
subtotals, new principles for aggregation and disaggregation of information,
and it mandates disclosures about management-defined performance measures.
3. Business segments
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.
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.
3. Business segments (continued)
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
acquisitions of J.S.R. Genetics Limited as well as Piggy Green Limited and
Fornham Pigs Limited are included within the Fresh Pork product 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.
2025 £'m 2025 £'m 2025 £'m 2024 £'m 2024 £'m 2024 £'m
Food Other Total Food Other Total
Revenue 2,686.6 36.7 2,723.3 2,573.9 25.4 2,599.3
Adjusted operating profit/(loss) 210.3 (3.4) 206.9 192.5 (7.4) 185.1
Finance costs (8.0) (1.2) (9.2) (8.9) - (8.9)
Share of net profit of joint venture 0.2 - 0.2 0.4 - 0.4
Adjusted profit/(loss) before tax 202.5 (4.6) 197.9 184.0 (7.4) 176.6
Assets 1,503.0 28.2 1,531.2 1,355.0 29.0 1,384.0
Liabilities (510.7) (32.6) (543.3) (446.2) (26.3) (472.5)
Net assets/(liabilities) 992.3 (4.4) 987.9 908.8 2.7 911.5
Depreciation 84.0 2.3 86.3 79.0 2.7 81.7
Property, plant and equipment and right-of-use asset additions 150.0 2.7 152.7
120.0 6.0 126.0
4. Group operating profit
Group operating costs comprise:
2025 2024
£'m £'m
Cost of sales excluding net IAS 41 valuation movement on biological assets 2,303.4 2,224.6
Net IAS 41 valuation movement on biological assets* 11.1 (2.2)
Cost of sales 2,314.5 2,222.4
Gross profit 408.8 376.9
Selling and distribution costs 112.8 100.0
Administrative expenses excluding impairment and amortisation of intangible 100.2
assets
95.3
Impairment of intangible assets 1.6 15.4
Amortisation of intangible assets 3.6 5.0
Administrative expenses 105.4 115.7
Other operating income - (5.7)
Total operating costs 2,532.7 2,432.4
*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 to adjusted operating profit.
4. Group operating profit (continued)
Included within other operating income in the prior year were credits for
insurance claims received. No further insurance receipts have been received in
the current year. The net impact of these claims was not material.
5. Earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the
year attributable to members of the Parent Company of £134.3 million (2024:
£113.1 million) by the weighted average number of shares outstanding during
the year.
In calculating diluted earnings per share amounts, the weighted average number
of shares is adjusted for the weighted average number of ordinary shares that
would be issued on the conversion of all dilutive potential ordinary shares
into ordinary shares, and shares held by the Employee Benefit Trust.
The weighted average number of ordinary shares for both basic and diluted
amounts was as per the table below:
2025 2024
Thousands Thousands
Basic weighted average number of shares 53,581 53,776
Dilutive potential ordinary shares - share options 954 187
54,535 53,963
Adjusted earnings per share are calculated using the weighted average number
of shares for both basic and diluted amounts as detailed above (see Note 11).
6. Dividends
Subject to Shareholders' approval the final dividend will be paid on 29 August
2025 to Shareholders on the register at the close of business on 18 July 2025.
7. Analysis of changes in net debt
At 30 March 2024 Acquired on acquisition Cash flow Other non-cash changes At 29 March 2025
£'m £'m £'m £'m £'m
Cash and cash equivalents 27.0 (5.1) (16.0) - 5.9
Revolving credit facility (27.1) - (18.0) (0.5) (45.6)
Lease liabilities (99.3) (4.4) 22.2 (51.2) (132.7)
Net debt (99.4) (9.5) (11.8) (51.7) (172.4)
Net debt is defined as cash and cash equivalents and loans receivable less
interest-bearing liabilities net of unamortised issue costs.
8. Related party transactions
During the year the Group and Company entered into transactions, in the
ordinary course of business, with related parties, including transactions
between the Company and its subsidiary undertakings. In the Group accounts
transactions between the Company and its subsidiaries are eliminated on
consolidation.
9. Intangible assets
The losses incurred by Cranswick Pet Products in 2024/25 served as a potential
indicator for intangible asset impairment, prompting the completion of an
impairment assessment in March 2025.
Two additional intangible assets were recognised on acquisition, customer
relationships and trademark. Both assets were separately tested for
impairment and, given the change in both business model and a greater focus on
new customer relationships, both assets were fully impaired at £0.8 million
each.
10. Acquisitions
i) J.S.R. Genetics Limited
On 20 January 2025, the Group acquired 100 per cent of the issued share
capital of J.S.R. Genetics Limited and its subsidiary JSR Pyramid Limited,
which combined are a pig production and genetics business based in East
Yorkshire, for cash consideration of £14.4 million.
The acquisition is in line with the Group's focus on increasing
self-sufficiency in British pigs.
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 price
over the fair value of the identifiable assets 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 in relation to J.S.R. Genetics
Limited and its subsidiary:
Provisional fair value
£'m
Net assets acquired:
Property, plant and equipment 18.6
Right-of-use assets 4.4
Biological assets 6.6
Inventories 0.3
Trade and other receivables 1.9
Bank and cash balances (5.3)
Trade and other payables (8.5)
Income tax payable (0.3)
Lease liabilities (4.4)
Deferred tax liability (0.8)
12.5
Goodwill arising on acquisition 1.9
Total consideration 14.4
Satisfied by:
Initial cash consideration 14.2
Deferred consideration 0.2
14.4
Net cash outflow arising on acquisition:
Cash consideration paid 14.2
Cash and cash equivalents acquired 5.3
19.5
The fair values on acquisition are provisional pending finalisation of the
completion accounts and will be finalised within twelve months of the
acquisition date.
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.
No customer relationship intangible asset has been recognised as the
acquisition was undertaken in line with the Group's focus on increasing
self-sufficiency in British pigs. There are no trademarks linked to J.S.R.
Genetics Limited or its subsidiary.
10. Acquisitions (continued)
Included in the £1.9 million 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 £0.5 million have been
expensed within administrative expenses.
From the date of acquisition to 29 March 2025, the external revenue of J.S.R.
Genetics Limited and its subsidiary combined was £3.8 million and the
combined net profit after tax was £0.3 million. Had the acquisition taken
place at the beginning of the financial year, Group revenue would have been
£2,738.5 million, and Group profit after tax would have been £135.4 million.
In addition to the cash consideration of £14.4 million, the Group immediately
paid a further £7.0 million consisting of £5.3 million bank overdraft and
£1.7 million other payables settled on acquisition. There is also a further
£2.2 million other payables due to the previous owner and related parties
payable post-acquisition upon finalisation of certain property related
conditions.
ii) Piggy Green Limited and Fornham Pigs Limited
On 28 June 2024, the Group acquired 100 per cent of the issued share capital
of Piggy Green Limited and Fornham Pigs Limited, both of which are outdoor pig
breeders based in East Anglia, for cash consideration of £4.0 million.
The acquisition is in line with the Group's focus on increasing
self-sufficiency in British pigs.
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 price
over the fair value of the identifiable assets 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 in relation to Piggy Green
Limited and Fornham Pigs Limited:
Provisional fair value
£'m
Net assets acquired:
Property, plant and equipment 1.5
Biological assets 1.3
Inventories 0.1
Trade and other receivables 0.9
Bank and cash balances 0.2
Trade and other payables (0.4)
Deferred tax liability (0.3)
3.3
Goodwill arising on acquisition 0.7
Total consideration 4.0
Satisfied by:
Initial cash consideration 3.8
Deferred consideration 0.2
4.0
Net cash outflow arising on acquisition:
Cash consideration paid 3.8
Cash and cash equivalents acquired (0.2)
3.6
10. Acquisitions (continued)
The fair values on acquisition are provisional pending finalisation of the
completion accounts and will be finalised within twelve months of the
acquisition date.
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.
No customer relationship intangible asset has been recognised as the
acquisition was undertaken in line with the Group's focus on increasing
self-sufficiency in British pigs. There are no trademarks linked to Piggy
Green Limited or Fornham Pigs Limited.
Included in the £0.7 million 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 £0.2 million have been
expensed within administrative expenses.
From the date of acquisition to 29 March 2025, the external revenue of Piggy
Green Limited and Fornham Pigs Limited combined was £0.2 million and the
combined net profit after tax was less than £0.1 million. Had the acquisition
taken place at the beginning of the financial year, Group revenue would have
been £2,723.5 million with no change to Group profit after tax.
iii) Froch Foods Limited
On 19 January 2024, the Group acquired 100 per cent of the share capital of a
holding entity Froch Foods Holding Limited and its subsidiary Froch Foods
Limited, an added value processor of predominantly pork and poultry related
products, together with associated leasehold buildings, for cash consideration
of £9.7 million.
The acquisition is complementary to the Group's existing bacon and cooked
meats production capabilities.
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 price
over the fair value of the identifiable asset and liabilities being recognised
as goodwill.
The following table sets out the fair values of the identifiable assets and
liabilities acquired by the Group in relation to Froch Foods Limited:
Fair value
£'m
Net assets acquired:
Property, plant and equipment 8.0
Right-of-use assets 1.4
Customer relationships 5.0
Trade and other receivables 0.7
Bank and cash balances 1.6
Bank loans (1.7)
Trade and other payables (4.2)
Lease liabilities (1.4)
Provisions (0.6)
Deferred tax liability (1.7)
7.1
Goodwill arising on acquisition 2.6
Total consideration 9.7
10. Acquisitions (continued)
Satisfied by:
Initial cash consideration 9.4
Deferred consideration 0.3
9.7
Net cash outflow arising on acquisition:
Cash consideration paid 9.4
Cash and cash equivalents acquired (1.6)
7.8
Following management's assessment, the Group recognised a customer
relationship intangible asset of £5.0 million. No further intangible assets
were identified.
Included in the £2.6 million 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 £0.3 million were
expensed within administrative expenses in the prior year.
From the date of acquisition to 30 March 2024, the external revenue of Froch
Foods Limited was £1.3 million and the business contributed net profit after
tax of £0.1 million to the Group. Had the acquisition taken place at the
beginning of the prior financial year, Group revenue would have been £2,604.9
million, and Group profit after tax would have been £114.6 million.
In addition to the net cash outflow on acquisition of £7.8 million, the Group
immediately paid a further £5.5 million consisting of a £1.7 million bank
loan and £3.8 million other payables settled on acquisition.
iv) Elsham Linc Limited
On 4 August 2023, the Group acquired 100 per cent of the issued share capital
of Elsham Linc Limited, a commercial pig farming enterprise operating from
numerous sites predominately across North Lincolnshire and the Humber, for
cash consideration of £11.6 million.
Included within the assets acquired is Elsham Linc Limited's 50 per cent share
of the Mere Pigs joint venture, a commercial pig farming business. Beechgrove
Farms Limited, the other party to the joint venture, held the remaining 50 per
cent interest in Mere Pigs.
The acquisition is in line with the Group's focus on increasing
self-sufficiency in British pigs.
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 price
over the fair value of the identifiable asset and liabilities being recognised
as goodwill.
10. Acquisitions (continued)
The following table sets out the fair values of the identifiable assets and
liabilities acquired by the Group in relation to Elsham Linc Limited:
Fair value
£'m
Net assets acquired:
Property, plant and equipment 22.7
Investment in joint venture 0.4
Biological assets 7.5
Inventories 1.0
Trade and other receivables 2.3
Bank and cash balances (3.1)
Bank loans (4.8)
Trade and other payables (16.9)
Deferred tax liability (0.6)
8.5
Goodwill arising on acquisition 3.1
Total consideration 11.6
Satisfied by:
Initial cash consideration 10.5
Deferred consideration 1.1
11.6
Net cash outflow arising on acquisition:
Cash consideration paid 11.6
Cash and cash equivalents acquired 3.1
14.7
The deferred consideration of £1.1 million was settled within the prior year.
No further amounts payable are recognised at the year end.
Following management's assessment, no customer relationship intangibles have
been recognised and there are no trademarks linked to Elsham Linc Limited.
Included in the £3.1 million 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 £0.3 million have been
expensed within administrative expenses in the prior year.
From the date of acquisition to 30 March 2024, the external revenue of Elsham
Linc Limited was £4.7 million and the business contributed net profit after
tax of £1.5 million to the Group. The share of profit in the joint venture
from the date of acquisition was £0.4 million.
Had the acquisition taken place at the beginning of the prior financial year,
Group revenue would have been £2,611.5 million, and Group profit after tax
would have been £113.7 million.
In addition to the cash consideration paid of £11.6 million, the Group
immediately paid a further £21.2 million consisting of a £3.1 million bank
overdraft, £4.8 million bank loan, £9.1 million for property, plant and
equipment acquired (which is included within trade and other payables of the
identifiable liabilities of Elsham Linc Limited) and £4.2 million other
payables settled on acquisition.
10. Acquisitions (continued)
v) Financial asset investment - BIA Analytical Ltd
On 22 September 2023, the Group acquired 2.90 per cent of the ordinary share
capital of BIA Analytical Ltd, a lab-based authenticity testing business, for
£0.1 million. BIA Analytical is registered in Northern Ireland, company
number NI657772.
vi) Deferred and Contingent Consideration
The Sale and Purchase agreements for Atlantica UK Limited and Ramona's Kitchen
Limited included deferred contingent consideration payable in cash to the
previous owners based on the performance of the businesses in the period to 30
June 2024.
The fair value of the contingent consideration on acquisition was estimated at
£2.7 million by calculating the present value of the future expected
cashflows. During the period, the Atlantica deferred contingent consideration
was finalised, resulting in a cash payment of £0.6 million with £0.1 million
being released to the Group Income Statement, and payment of £1.0 million of
the Ramona's Kitchen Limited deferred contingent consideration was made in
addition to the £1.0 million paid in the prior year.
The Sale and Purchase agreement for Froch Foods Holdings Limited included
deferred consideration payable in cash to the previous owners based on the
finalisation of the completion accounts. The estimated amount payable was
£0.4 million. Following the finalisation of the completion accounts, the
deferred consideration was reduced by £0.1 million and a cash payment of
£0.3 million was made in the period.
The Sale and Purchase agreements for Piggy Green Limited and Fornham Pigs
Holdings 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 £0.2 million and due for payment within
the next year.
11. 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
2025 2024 Change
£'m £'m
Revenue 2,723.3 2,599.3 +4.8%
Elsham Linc Limited (0.6) -
Froch Foods Limited (5.5) -
J.S.R. Genetics Limited and JSR Pyramid Limited (3.8) -
Piggy Green Limited and Fornham Pigs Limited (0.2) -
Like-for-like revenue 2,713.2 2,599.3 +4.4%
On a 52 week basis, the prior year revenue was £2,549.6 million.
11. Alternative performance measures (continued)
Adjusted gross profit
2025 2024 Change
£'m £'m
Gross profit 408.8 376.9 +8.5%
Net IAS 41 valuation movement 11.1 (2.2)
Adjusted gross profit 419.9 374.7 +12.1%
On a 52 week basis, the prior year adjusted gross profit was £367.5 million.
Adjusted Group operating profit and adjusted EBITDA
2025 2024 Change
£'m £'m
Group operating profit 190.6 166.9 +14.2%
Net IAS 41 valuation movement 11.1 (2.2)
Amortisation of intangible assets 3.6 5.0
Impairment of intangible assets 1.6 15.4
Adjusted Group operating profit 206.9 185.1 +11.8%
Depreciation of property, plant and equipment 68.1 65.5
Depreciation of right-of-use assets 18.2 16.2
Adjusted EBITDA 293.2 266.8 +9.9%
On a 52 week basis, the prior year adjusted group operating profit was £181.5
million.
Adjusted profit before tax
2025 2024 Change
£'m £'m
Profit before tax 181.6 158.4 +14.6%
Net IAS 41 valuation movement 11.1 (2.2)
Amortisation of intangible assets 3.6 5.0
Impairment of intangible assets 1.6 15.4
Adjusted profit before tax 197.9 176.6 +12.1%
On a 52 week basis, the prior year adjusted profit before tax was £173.2
million.
Adjusted earnings per share
2025 2025 2025 2024 2024 2024
Basic Diluted Basic Diluted
£'m pence pence £'m pence pence
On profit for the year 134.3 250.5 246.1 113.1 210.4 209.7
Amortisation of intangible assets 3.6 6.8 6.7 5.0 9.4 9.3
Tax on amortisation of intangible assets (0.9) (1.7) (1.7) (1.3) (2.3) (2.3)
Net IAS 41 valuation movement 11.1 20.8 20.4 (2.2) (4.2) (4.1)
Tax on net IAS 41 valuation movement (2.8) (5.2) (5.1) 0.6 1.0 1.0
Impairment of goodwill - - - 15.1 28.0 27.9
Impairment of intangible assets 1.6 3.0 3.0 0.3 0.6 0.6
Tax on impairment of intangible assets (0.4) (0.8) (0.8) (0.1) (0.1) (0.1)
On adjusted profit for the year 146.5 273.4 268.6 130.5 242.8 242.0
On a 52 week basis, the prior year adjusted earnings per share was 236.5
pence.
11. Alternative performance measures (continued)
Free cash flow
2025 2024 Change
£'m £'m
Net cash from operating activities 216.3 228.4 -5.3%
Net interest paid (2.7) (5.0)
Free cash flow 213.6 223.4 -4.4%
Free cash conversion
2025 2024 Change
£'m £'m
Free cash flow 213.6 223.4 -4.4%
Non-growth capital expenditure (31.4) (22.1)
Net IAS 41 valuation movement (11.1) 2.2
Lease capital paid (16.2) (14.2)
Lease interest paid (6.0) (3.6)
148.9 185.7
Adjusted profit for the year 146.5 130.5
Free cash conversion 101.6% 142.3% -4,066bps
Return on capital employed
2025 2024 Change
£'m £'m
Average opening and closing net assets 949.7 877.2
Average opening and closing net debt 135.9 100.4
Average opening and closing pension surplus (0.1) (0.2)
Average opening and closing deferred tax 30.2 24.6
1,115.7 1,002.0
Adjusted Group operating profit 206.9 185.1
Return on capital employed 18.5% 18.5% +7 bps
12. Post balance sheet events
On 16 May 2025, the Group acquired 100 per cent of the issued share capital of
James T Blakeman & Co (Holdings) Limited ('Blakemans'), a leading
manufacturer and supplier of sausage products to the food service sector, for
initial consideration of £32 million on a debt-and-cash-free basis.
Due to the timing of completion of this acquisition it is impractical to
include further disclosure in line with IFRS 3, including in relation to
initial net consideration, deferred contingent consideration and the fair
value of assets and liabilities acquired.
13. 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. The principal risks and uncertainties facing the Group are set out
in detail on pages 68 to 72 of the Annual Report and Accounts for the 53 weeks
ended 30 March 2024, dated 20 May 2024, a copy of which is available on the
Group's website.
In light of the upcoming changes to the UK Corporate Governance Code, during
the year, the Group undertook a detailed review of its principal risks to
ensure that, given the increased scale and complexity of the business, they
all remain appropriate. While no new principal risks were identified, this
review resulted in removal of the 'Competitor Activity', 'Growth and Change'
and 'Adverse Media Attention' principal risks, and refinement of the 'Reliance
on Key Customers' principal risk.
The Board therefore considers the principal risks and uncertainties at 29
March 2025, arranged from highest to lowest risk score, to be as follows:
1. Disease and infection within livestock
2. Labour availability and cost
3. Climate change
4. Reliance on key customers
5. Consumer demand
6. Recruitment and retention of key personnel
7. Health and Safety
8. Interest rate, currency, liquidity and credit risk
9. IT systems and cyber
10. Food scares and product contamination
11. Pig meat availability and price
12. Disruption to Group operations
In common with other UK businesses, the Group has seen volatility within
existing risks caused by external issues including the ongoing conflicts in
Ukraine and the Middle East, the ongoing cost of living crisis and broader
economic, geopolitical and supply chain uncertainties.
In addition, the Group remains vigilant to risks associated with IT systems
and cyber security, particularly in light of recent incidents in the food
industry and continues to invest in initiatives that enhance the ability to
detect, protect, respond and recover from a cyber incident.
As previously reported, disease in livestock continues to present a
significant risk to the Group and we remain acutely aware of the impact both
an African Swine Fever ('ASF') or Foot and Mouth Disease ('FMD') outbreak
would have on the UK pig industry and, specifically, our ability to continue
exporting. The spread of these diseases, together with Avian Influenza a
notifiable disease in poultry, continues to be closely monitored by the Group,
and robust bio-security protocols are in place and strictly enforced across
all Cranswick farms. During the year, we have continued to lobby industry
bodies and the Government to specifically introduce prompt ASF legislation and
operational guidance, the absence of which creates a significant risk to the
Group and wider industry.
14. Report and accounts
The Report and Accounts will be available on the Company's website at
www.cranswick.plc.uk on 27 June 2025. Further copies will be available upon
request from the Company Secretary, Cranswick plc, Crane Court, Hesslewood
Country Office Park, Ferriby Road, Hessle, HU13 0PA.
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