REG - Cranswick PLC - Preliminary Results
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RNS Number : 8080E Cranswick PLC 19 May 2026
CRANSWICK plc: PRELIMINARY RESULTS
Strong strategic and financial progress driven by disciplined investment and
operational excellence
19 May 2026
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 28 March 2026.
Financial summary(1): 2026 2025 Change
Revenue £2,982.5m £2,723.3m +9.5%
Adjusted Group operating profit £237.0m £206.9m +14.5%
Adjusted Group operating margin 7.9% 7.6% +35bps
Adjusted profit before tax £220.0m £197.9m +11.2%
Adjusted earnings per share 301.7p 273.4p +10.4%
Return on capital employed(2) 18.5% 18.5% -9bps
Net debt (excluding IFRS 16) £65.0m £39.7m £25.3m
Dividend per share 112.5p 101.0p +11.4%
Statutory measures: 2026 2025 Change
Group operating profit £232.8m £190.6m +22.1%
Profit before tax £215.8m £181.6m +18.8%
Earnings per share 295.9p 250.5p +18.1%
Financial highlights:
· Strong revenue growth of 9.5% with like-for-like(3) revenue 6.8% ahead:
o UK food revenue grew 9.4% underpinned by strong volume growth of 8.3% and
record Christmas trading
o Poultry revenue up 13.9% and now represents 20.3% of reported Group revenue
o Gourmet Products revenue increased 15.3% with a strong contribution from
Blakemans
o Pet Products revenue 29.8% ahead reflecting expansion of the Pets at Home
relationship
· Adjusted operating margin increased by 35bps to 7.9%, driven by the
performance of our integrated poultry supply chain, investment in automation,
operational leverage, excellent capacity utilisation and disciplined cost
control
· Free cash conversion(1) of 120.6%, reflecting record cash generated
from operations of £322.3m
· ROCE(3) remained strong at 18.5% on record investment
· Net debt (excluding IFRS 16) of £65.0m with Net debt (excluding IFRS
16)/Adjusted EBITDA just 0.2x
· Performance across all financial measures well ahead of medium-term
targets
Strategic highlights:
· Strong operational performance underpinned by an unrelenting focus on
quality, service and innovation
· Long-term fresh and added-value poultry supply agreement extended with
anchor strategic retail partner
· £56m committed to increase capacity at the Eye fresh poultry facility
by a further 25% by summer 2027
· Record £163m invested across the business, bringing the total invested
to more than £560m over the past 5 years
· Strong progress across pipeline of major capital projects:
o £30m expansion of the two added-value Hull poultry sites and £27m Worsley
houmous facility fit out complete
o £100m investment in flagship Hull pork primary processing site progressing
well; the new highly automated onsite cold store facility now fully
operational
o £40m spent on farming and feed milling to expand and strengthen our
integrated supply chain
· Blakemans and JSR Genetics acquisitions continue to perform ahead of
initial expectations
Adam Couch, Cranswick's Chief Executive Officer, commented:
"Cranswick has delivered another year of strong strategic and financial
progress, reflecting our proven business model and the disciplined execution
of our long-term priorities. We have continued to invest with conviction
across our industry-leading asset base, farming operations and in
complementary acquisitions, strengthening capability, expanding capacity and
creating further headroom for sustainable growth.
"Our performance reflects the enduring strength of our customer relationships,
the quality and scale of our asset base and the increasing competitive
advantage of our vertically integrated supply chain. Across our core
categories, demand for our products remains strong, supported by close
alignment with our strategic retail partners and a consistent focus on
quality, service and innovation.
"Above all, our performance reflects the commitment and expertise of our
colleagues across the Group. Their focus on quality, service and operational
excellence continues to distinguish Cranswick in the markets we serve, and I
would like to thank them for their outstanding contribution during the year.
"As we enter the new financial year, I am encouraged by the continued
development of the business and the robust demand for our product ranges.
The range of growth opportunities available to the Group continues to expand
and we remain well positioned to deliver on our strategy.
"Trading in the early part of the current financial year has been in line with
the Board's expectations. At the same time, the conflict in the Middle East
remains an evolving situation and we continue to monitor potential
implications for our supply chains. We remain mindful of the potential for
disruption arising from prevailing economic and geopolitical conditions.
"Looking ahead, 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."
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 10.
2 Return on capital employed is defined as adjusted operating profit divided by
the sum of average opening and closing net assets, net debt, pension
surplus/(liability) and deferred tax.
3 Like-for-like revenue references exclude the current year contribution from
current and prior year acquisitions prior to the anniversary of their
purchase.
Presentation
A presentation of the results will be made to analysts and institutional
investors today at 10.00am (UK time). 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
+44 1482 275 000
Sodali & Co
Ben Foster / Louisa
Henry
+44 207 100 6451
cranswick@sodali.com
Note to Editors:
1. Cranswick is a leading and innovative supplier of premium, fresh
and added-value food products. The business employs over 16,000 people and
operates from 23 well-invested, highly efficient facilities in the UK.
Cranswick was formed in the early 1970s by farmers in East Yorkshire to
produce animal feed and has since evolved into a business which produces a
range of high-quality, predominantly fresh food, including fresh pork,
poultry, convenience, gourmet products and pet food. The business develops
innovative, great tasting food products to the highest standards of food
safety and traceability. The Group supplies the major grocery multiples as
well as the growing premium and discounter retail channels. Cranswick also
has a strong presence in the 'food-to-go' sector and a substantial export
business. 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
During the year, we continued to strengthen our competitive position through
the disciplined execution of our strategy. We delivered strong compound
growth and record results, supporting an increase in the dividend for the
36(th) consecutive year. We invested a record £163 million in our
industry-leading asset base, accelerating the pace of investment to generate
attractive returns.
The effective delivery of our strategy is underpinned by the depth of
experience across the management team. Their sustained focus on operational
excellence for our strategic partners, together with the rigorous execution of
our investment programme, has supported the Group's long-term performance.
On behalf of the Board, I would like to thank colleagues across the business
for their continued commitment and contribution to these results.
The management team continues to identify opportunities to expand fresh
poultry capacity at our existing Eye facility in Suffolk. Following the
completion of the next phase of investment that we are announcing today, we
will have the capacity to process almost double the number of birds each week,
compared to the expectation for the site when it was commissioned in late
2019. We are continuing our search for a suitable location for a second
fresh poultry facility and we remain confident that, in due course, we will
materially increase our fresh poultry processing capacity.
During the year, we successfully transitioned our poultry rearing operations
to higher-welfare, lower stocking densities. This industry-wide change has
constrained the supply of British chicken. Alongside growing consumer
demand, this has contributed to increased imports.
If domestic supply does not keep pace with growth in consumer demand, the UK
will become increasingly reliant on imported food. This has implications for
quality standards and food system resilience at a time of ongoing disruption
across global supply chains and heightened geopolitical uncertainty. A more
supportive UK planning framework would reduce barriers to investment and
increase confidence across the UK food production industry, supporting
employment and food security.
Our portfolio is well aligned to the increasing consumer preferences for
protein and nutrient-dense products, supported by a growing focus on
nutritionally balanced, calorie‑conscious diets. Demand for our core pork
and poultry ranges remains strong. Teams across the business are working
closely with our strategic retail partners to support this demand through
continued product innovation and premiumisation.
We have continued to strengthen our long-standing relationships with strategic
retail partners. During the year, we secured new business and extended the
duration of supply agreements across our core pork and poultry operations, as
well as our Mediterranean and pet food ranges. This strategic focus
continues to deliver strong performance, supported by premium own-label ranges
that are growing ahead of the market. Innovation in healthy ranges, together
with strong value propositions, is reinforcing this consumer trend.
Our Second Nature commitments are a key focus across the Group. It is a
significant milestone that our Gourmet Sausage facility has become the Group's
first zero operational carbon emissions site. We expect further progress in
reducing our carbon footprint as we continue to invest to improve
sustainability across our asset base.
We are committed to investing across our pork and poultry farming operations
and processing facilities to expand capacity and meet the requirements of our
strategic retail partners. Increasing the pace of investment will enhance
the quality of our asset base, strengthen capability, improve operating
efficiency and further extend our competitive advantage.
We remain focused on delivering leading standards of quality, innovation and
service for customers and generating attractive returns for our
Shareholders. Our integrated supply chain, the quality of our asset base and
the strength of our balance sheet, position the Group well to improve security
of supply to our strategic partners, benefiting UK consumers.
Results
Total revenue for the 52 weeks to 28 March 2026 was £2,982.5 million,
representing an increase of 9.5 per cent versus the prior year.
Like-for-like revenue increased by 6.8 per cent.
Adjusted profit before tax for the period was £220.0 million, an increase of
11.2 per cent compared with the prior year. Adjusted earnings per share
increased by 10.4 per cent to 301.7 pence.
Cash flow and financial position
At year end, net debt was £240.8 million (2025: £172.4 million). Net debt,
excluding IFRS 16 lease liabilities, increased to £65.0 million (2025: £39.7
million). The Group has access to an unsecured £360 million facility, which
runs to July 2029.
Dividend
The Board is proposing a final dividend of 85.5 pence per share, an increase
of 12.5 per cent on the 76.0 pence paid last year. Together with the interim
dividend of 27.0 pence per share, this brings the total dividend for the year
to 112.5 pence per share, an increase of 11.4 per cent, extending the period
of consecutive annual dividend growth to 36 years.
Subject to Shareholder approval, the final dividend will be paid on 28 August
2026 to Shareholders on the register at the close of business on 17 July
2026. Shares will trade ex-dividend from 16 July 2026.
Board effectiveness
We have continued to evolve the Board to ensure it provides effective support
and appropriate challenge to the executive team. During the year, the
triennial independent Board effectiveness review highlighted the good balance
of challenge and support the Board provides to management. The review
concluded that the Board operates in a collaborative manner, with a values-led
focus on performance and growth.
Reflecting the evolving sustainability reporting landscape, the Board approved
several changes to the composition and operation of the ESG Committee during
the year. At the year end, the role of ESG Committee Chair transitioned from
me to Liz Barber, our Senior Independent Director, and responsibility for ESG
reporting will transfer to the Audit Committee. This change aligns oversight
of sustainability disclosures with the Audit Committee's existing
responsibilities for financial reporting, internal control and external
assurance.
Tribute to Jim Bloom
It is with great sadness that we mark the passing of Jim Bloom, one of
Cranswick's founding farmers and a former Chairman. Jim played a pivotal
role in the formation and development of the business and served as Chairman
for more than 13 years until his retirement in 2004. 2025 marked Cranswick's
50(th) anniversary. Jim helped shape the foundations of this legacy and his
influence is clear in the strength of the business today. He will be greatly
missed.
Tim J Smith CBE
Chairman
19 May 2026
Chief Executive's Review
Cranswick has delivered another year of strong strategic and financial
progress, reflecting our proven business model and the disciplined execution
of our long-term priorities. We have continued to invest with conviction
across our industry-leading asset base, farming operations and in
complementary acquisitions, strengthening capability, expanding capacity and
creating further headroom for sustainable growth.
Our performance reflects the enduring strength of our customer relationships,
the quality and scale of our asset base and the increasing advantage of our
vertically integrated supply chain. Above all, it reflects the commitment
and expertise of our colleagues across the Group. Their focus on quality,
service and operational excellence continues to distinguish Cranswick in the
markets we serve, and I would like to thank them for their outstanding
contribution during the year.
Strong compound growth and financial performance
We again delivered record results, with reported revenue increasing by 9.5 per
cent to £2,982.5 million and adjusted operating profit increasing by 14.5 per
cent to £237.0 million. Operating margin improved by 35 basis points to 7.9
per cent, reflecting the benefits of scale, disciplined execution and the
strong performance of our integrated poultry supply chain, supported by
investment in automation, excellent capacity utilisation and continued cost
control. Adjusted earnings per share increased by 10.4 per cent to 301.7
pence.
Net debt on a pre‑IFRS 16 basis increased from £39.7 million to £65.0
million, principally reflecting record capital investment during the year and
the acquisition of Blakemans. The Group nevertheless retains a strong
balance sheet and significant financial flexibility. Return on capital
employed of 18.5 per cent underlines the attractive returns we continue to
generate through disciplined capital allocation.
We are proposing to increase the full year dividend by 11.4 per cent. This
would mark our 36(th) consecutive year of dividend growth and reflects our
continued confidence in the Group's prospects, cash generation and long-term
growth model. Over the last ten years, we have on average grown revenue,
adjusted profit, adjusted earnings per share and dividends by more than 10 per
cent per annum, demonstrating the consistency and quality of the business we
have built.
Delivering our strategy
Over the last 12 months we have continued to make strong progress against our
strategic priorities. Across our core categories, we are gaining market
share through a consistent focus on quality, service, innovation and close
alignment with our strategic retail partners.
Our core pork business performed strongly with fresh and added‑value sales
ahead and a record number of pigs processed during the year. Continued
investment across our primary processing and farming operations is supporting
volume growth and enhancing supply chain resilience.
Poultry again delivered significant growth. We successfully completed the
transition to higher welfare, lower stocking densities across our supply chain
while continuing to invest to support future capacity requirements. Poultry
remains a key growth driver for the business.
Our Mediterranean Foods business performed exceptionally well, supported by a
record Christmas trading period and continued growth of the Ramona's brand.
Pet Products also delivered another year of strong growth as we developed
our relationship with Pets at Home further following capacity expansion at our
Lincoln site.
Across the Group, our teams continue to deliver premiumisation and innovation
aligned to evolving consumer trends, including high‑quality convenient
centre‑of‑plate products, new super-premium ranges, and to remove
ultra-processed ingredients.
Record investment and expanding headroom for growth
Disciplined capital deployment remains a defining strength of Cranswick's
long-term performance. During the year, we invested a record £163 million
across the business to expand capacity, strengthen capability and drive
further efficiency through automation, scale and vertical integration.
Over the last five years, we have invested more than £560 million across our
asset base. We will continue to invest at pace, in line with our guidance of
approximately 50 per cent of adjusted EBITDA, to support growth, resilience
and long-term returns.
We spent £54 million across the pipeline of major strategic capital projects
in the year. The completed expansion of our cooked and breaded poultry
facilities in Hull added capacity and capability to support new premium retail
business. The completion of the houmous facility in Worsley provides a
scalable platform to support continued growth in our Mediterranean Foods
category. The multiphased expansion of our Hull pork primary processing
facility remains on track, with the new highly automated cold store now being
commissioned. We will lift capacity at the site by 40 per cent following the
financial year ending March 2027. Expansion of the Lincoln pet food facility
will add capacity and capability in premium higher meat inclusion ranges.
During the year, the investment in automation at Eye has continued to progress
and will increase processing capacity by 15 per cent. We are now committing
a further £56 million of investment to grow total capacity at the site by a
further 25 per cent through the addition of a second line. This project,
alongside the recently completed expansion of our cooked and breaded poultry
facilities, secures further headroom to support the ongoing growth of our
fresh and added-value poultry business. Looking to the longer term, we
continue to progress feasibility studies at several sites for a second fresh
poultry facility. We have the balance sheet and management resource
available to deliver this project once we have secured a suitable site.
Acquisitions are an important component of our strategy, enabling further
consolidation in core categories and selective diversification where we see
compelling long-term opportunities. The acquisitions of Blakemans and JSR
Genetics continue to perform strongly and are integrating well into the Group.
Blakemans enhances our position in the food service sausage market and
broadens our added‑value offering while JSR Genetics further strengthens our
vertically integrated agricultural model, supporting supply chain resilience,
productivity and quality across our pork operations.
In addition to JSR Genetics, we purchased the Fridaythorpe feed mill during
the year increasing our self-sufficiency in pig feed. We have continued to
increase our own pig production with finished pig numbers increasing 6.5 per
cent year-on-year and self-sufficiency now 55 per cent. Through a
combination of acquisition and new lease arrangements, we completed the
investment necessary to deliver the move to higher welfare, lower stocking
densities in our poultry farming operations while also supporting the uplift
in processing capacity at Eye.
Second Nature - sustainable success
Sustainability is integral to our strategy and long-term value creation.
During the year, Gourmet Sausage became the Group's first zero operational
carbon emissions facility, reflecting the practical impact of targeted
decarbonisation investment across the business.
We published our first Transition Plan setting out the actions required to
progress towards Net Zero as a business, and set Forest, Land and Agriculture
('FLAG') Science‑Based Targets to sharpen our focus on emissions in our
value chain. Safety performance continued to improve, with a reduction in
lost‑time accidents.
We are committed to further strengthening animal welfare standards across our
farming operations. In November, we published the findings from the
independent veterinarian review of our pig farming operations. We have made
significant progress in actioning the recommendations, enhancing leadership
and reporting structures within the farming division, launching our dedicated
animal welfare hub and installing more than 440 AI-enabled CCTV cameras across
our farms.
People and culture
Our people are central to the Group's continued success. We are investing in
leadership capability, early careers and succession planning to ensure that
Cranswick is well equipped to support long-term growth and maintain its
distinctive culture as the business continues to scale.
During the year, we launched the first Group General Managers' Forum to
strengthen leadership capability and consistency across the business. Our
Operations Talent Programme continues to build a strong pipeline of future
leaders, supported by increased graduate and apprenticeship recruitment.
We formally rolled out our Equality, Diversity and Inclusion Charter and
completed the first full year of the Next Generation Committee, ensuring
early‑career colleagues have a stronger voice in shaping the future of the
Group.
Operating conditions in our industry remain challenging but our people have
again demonstrated resilience, professionalism and commitment. I am grateful
to them all for their support.
Adam Couch
Chief Executive Officer
19 May 2026
Operating and Financial Review
Operating review
Revenue and adjusted Group operating profit
2026 2025 Change Change
(Reported) (Like-for-like(1,2))
Revenue £2,982.5m £2,723.3m +9.5% +6.8%
Adjusted Group Operating Profit(1) £237.0m £206.9m +14.5%
Adjusted Group Operating Margin(1) 7.9% 7.6% +35bps
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 10.
2 Like-for-like revenue references exclude the current year contribution from
current and prior year acquisitions prior to the anniversary of their
purchase.
Revenue
Revenue increased by 9.5 per cent to £2,982.5 million reflecting growth
across all categories, supported by the continued outperformance of premium
added-value product ranges and a record Christmas trading period. Revenue
from UK food was ahead by 9.4 per cent, underpinned by volume growth of 8.3
per cent. UK food volume growth accelerated from 7.0 per cent in H1 to 9.5
per cent in H2 driven by the performance of Fresh Pork and Gourmet Products.
The uplift in H2 UK food volumes offset modest price deflation as lower input
costs were reflected in selling prices.
Poultry revenue grew by 13.9 per cent, driven by strong growth across Cooked,
Prepared and Fresh categories, and now represents 20.3 per cent of Group
reported revenue. Gourmet Products revenue was ahead by 15.3 per cent
following the acquisition of Blakemans. Pet Products revenue was 29.8 per
cent ahead reflecting expansion of the Pets at Home relationship.
Adjusted Group Operating Profit
Adjusted Group operating profit was 14.5 per cent higher at £237.0 million
with adjusted Group operating margin up 35 basis points to 7.9 per cent. The
improvement in Group operating margin was driven by the performance of the
integrated poultry supply chain, investment in automation, operational
leverage, excellent capacity utilisation and disciplined cost control.
Category review
FOOD SEGMENT
Fresh Pork
Fresh Pork revenue increased by 3.7 per cent year-on-year and represented 22.9
per cent of Group revenue. Growth was volume-led across retail, wholesale
and export channels, underpinned by sustained consumer demand for pork as an
affordable and naturally protein-rich choice.
Retail and wholesale revenue increased by 3.0 per cent, with volumes 7.9 per
cent ahead of the prior year, reflecting strong underlying demand. This
volume growth was partly offset by lower pricing, particularly in wholesale
markets, as the year-on-year reduction in pig prices flowed through. Export
revenue was 4.6 per cent below the prior year; export volumes were ahead, but
this was more than offset by lower pricing. The JSR Genetics acquisition
also contributed to strong growth in external revenues from our pig farming
operations.
Fresh Pork, agricultural operations
We continued to invest across our pig farming and feed milling infrastructure
during the year while also expanding the scale of our indoor and outdoor
herds. Finished pig numbers increased by 6.5 per cent compared with the
prior year. Self-sufficiency was maintained at 55 per cent, notwithstanding
growth in demand from our three primary processing facilities and downstream
added-value pork operations.
The recent acquisitions of JSR Genetics and the Fridaythorpe feed mill
continue to perform ahead of our initial expectations. Their integration
into the Group has delivered clear synergies, supporting improved efficiency
and closer coordination across genetics, feed milling, farming and processing
operations.
We invested £24 million across our pig farming operations during the year,
including the acquisition of the Fridaythorpe feed mill, with more than £115
million invested over the last five years. We remain committed to continued
investment across our pig farming supply chain to ensure we can provide the
quality and scale of supply required by our strategic retail partners.
Fresh Pork, primary processing
Throughput increased across all three Fresh Pork primary processing sites
during the year, with the total number of UK pigs processed 3.1 per cent ahead
of the prior year. Strong retail demand continued, supported by pork's
relative affordability and sustained consumer switching into fresh and
added-value pork products. We continued to drive premiumisation in the
category through the use of bespoke genetics, delivering enhanced
intramuscular fat levels and improved eating quality in premium retail ranges.
Strong trading during the key barbecue and Christmas periods was supported
by innovation across these ranges, including premium joints and festive
centre-piece products for key retail customers.
The £100 million redevelopment of the Hull primary processing facility
continues to progress in line with expectations. The new highly automated
on-site cold storage facility is now operational, and we are progressing the
approval process for direct export to China. This project will expand
capacity at the site to 50,000 pigs per week and is expected to complete
following the financial year ending March 2027.
Convenience
Convenience revenue increased by 7.3 per cent in the year and represented 35.5
per cent of Group revenue.
Cooked Meats revenue increased during the year, supported by growth with
existing customers and newly secured retail business. The Hull site
delivered a record Christmas trading period for 'slow cook' and 'sous vide'
turkey products with its anchor customer, despite the disruption caused by
avian influenza across seasonal turkey supply chains. Demand for these
products continues to grow as consumers seek restaurant-quality meal solutions
that combine convenience and value. During the year, we also launched a new
super-premium 'Chef's Collection' 'sous vide' centre-of-plate range with a key
strategic retail partner. The Milton Keynes and Barnsley sites also secured
new retail business, further strengthening our position in the deli meats
category.
Continental and Mediterranean Products delivered strong revenue growth in the
year, supported by continued momentum at the Bury and Katsouris facilities and
increasing volumes from the Worsley site. At Bury, new retail business was
successfully onboarded, while strong demand for festive Mediterranean grazing
platters contributed to a record Christmas trading period. Growth at
Katsouris Brothers reflected new halloumi business together with co-packing
volumes for a branded snacking range. Ramona's further strengthened its
leadership position in the houmous category, supported by award-winning
innovation across new flavour launches. The Worsley site also onboarded
own-label retail houmous business with two retail partners during the year.
Investment in additional capacity at Worsley has now been completed, providing
further headroom to support continued growth in the houmous and dips
category. Across our Mediterranean Foods portfolio, innovation continues to
support growth through an expanding range of premium dips, platters, hot tapas
and sharing products. These ranges remain well aligned to evolving consumer
demand for sharing occasions, grazing formats and high-protein snacking.
Gourmet Products
Gourmet Products revenue increased by 15.3 per cent and represented 19.7 per
cent of Group revenue, including the contribution from the Blakemans
acquisition.
Sausage and Bacon revenues, including cooked products, were ahead of the prior
year. Growth was supported by continued premiumisation and innovation across
the range, including the launch of ultra-processed free 'Only 6 Ingredients'
sausages, super-premium 'Signature' bacon and 'Ultimate' sausages, together
with premium cooked 'Dinky' cocktail sausages.
Strong trading through the key barbecue and Christmas periods reflected
increasing product complexity and a favourable sales mix across bacon, sausage
and festive garnish ranges. Demand for pigs in blankets continued to grow
strongly and we supplied 120 million single units during the year, including
production from Blakemans. The Gourmet Sausage site also achieved the
significant milestone of zero operational carbon emissions, reflecting the
cumulative benefit of continued investment in emissions-reduction
technologies.
Blakemans continues to perform ahead of our initial expectations, supported by
integration synergies, economies of scale and improved procurement. During
the year, the business secured its first retail listing through a premium
frozen sausage launch with a key retail customer. We are also investing in
automated pigs in blankets production at the Blakemans site, enhancing
efficiency and providing additional capacity to support future growth.
Pastry revenues were ahead of the prior year, supported by stronger pricing
and an improved sales mix following successful new product launches with the
Malton site's anchor retail partner. Premium seasonal ranges performed
particularly well, including celebrity chef beef and turkey wellingtons,
reflecting continued consumer demand for restaurant-quality convenient meal
solutions.
Poultry
Poultry revenue increased by 13.9 per cent in the year and represented 20.3
per cent of Group revenue, up from 19.6 per cent in the prior year. Growth
was driven by strong performances across fresh, prepared and cooked poultry,
reinforcing poultry's importance as a key strategic growth category for the
Group.
Poultry, agricultural operations
During the year, we completed the transition to enhanced welfare, lower
stocking densities across our poultry supply chain, having secured the
additional growing space required to support this change. The transition has
delivered improved welfare outcomes and enhanced farm productivity,
strengthening the long-term sustainability of the supply chain. The £7
million investment in additional incubatory capacity at the Kenninghall
facility to support the planned uplift to 1.6 million birds per week at the
Eye processing facility is now complete.
Poultry, primary and added-value processing
Fresh Poultry delivered strong revenue growth, driven by firmer pricing
following the move to higher welfare production, together with increases in
both the weekly number and average weight of birds processed at Eye. During
the year, we also launched innovative festive centre-piece products with the
site's anchor customer, reflecting growing consumer demand for chicken at
Christmas. We have now extended the terms of the long-term supply agreement
in place with the site's core customer.
The £13 million investment project at Eye to increase capacity to 1.6 million
birds per week, representing approximately 15 per cent additional processing
capacity, continues to progress in line with expectations. Through expansion
of the site footprint and the addition of a second line, we have now committed
to a further £56 million investment to increase total processing capacity to
2 million birds per week. This project is expected to complete during the
financial year ending March 2028 and will provide further headroom to support
the continued growth of our fresh and added-value poultry business.
Prepared Poultry and Cooked Poultry delivered double-digit revenue growth,
supported by higher volumes and an improved sales mix following the onboarding
of premium retail business in the prior year. The £30 million expansion
project was completed during the first half of the year, adding whole bird and
bone-in portion cooking and roasting capability. Operational momentum
improved through the second half of the year, following earlier disruption
associated with the rapid onboarding of new business and the impact of wider
industry fresh poultry availability constraints.
OTHER SEGMENT
Pet Products
Pet Products revenue increased by 29.8 per cent in the year and represented
1.6 per cent of Group revenue. Growth was driven by the continued expansion
of our relationship with Pets at Home, supported by an improved sales mix
following the onboarding of higher meat content lines and the launch of a new
premium range during the year. The £14 million investment in additional
capacity and higher meat content processing capability continues to progress
in line with expectations.
Finance review
Revenue
Reported revenue increased by 9.5 per cent to £2,982.5 million (2025:
£2,723.3 million). Like-for-like revenue, excluding the contribution from
acquisitions prior to their anniversary, increased by 6.8 per cent.
Adjusted gross profit and adjusted EBITDA
Adjusted gross profit increased by 12.8 per cent to £473.5 million (2025:
£419.9 million), with adjusted gross margin increasing to 15.9 per cent
(2025: 15.4 per cent). Adjusted EBITDA increased by 14.7 per cent to £336.4
million (2025: £293.2 million), while adjusted EBITDA margin increased by 51
basis points to 11.3 per cent (2025: 10.8 per cent).
Adjusted Group operating profit
Adjusted Group operating profit increased by 14.5 per cent to £237.0 million
(2025: £206.9 million), with adjusted Group operating margin improving by 35
basis points to 7.9 per cent (2025: 7.6 per cent).
Full reconciliations of adjusted measures to statutory results are set out in
Note 10. On a statutory basis, the net IAS 41 movement on biological assets
resulted in a £2.2 million debit (2025: £11.1 million debit), primarily
reflecting the reduction in the Standard Pig Price during the year.
Finance costs and funding
Net finance costs were £17.0 million (2025: £9.2 million), including £9.6
million of IFRS 16 lease interest (2025: £6.0 million). Bank finance costs
increased to £7.4 million (2025: £3.2 million), primarily reflecting the
year-on-year increase in net debt following record capital expenditure, the
acquisition of Blakemans and working capital expansion associated with new
long-term strategic partnerships.
The Group refinanced its banking facility on more favourable terms during the
first half of the financial year. The new unsecured agreement comprises a
£360 million revolving credit facility running to July 2029, with the option
to extend by up to a further two years. A further £90 million can be
accessed on the same terms at any point during the term of the agreement.
The facility replaces the previous £250 million revolving credit facility
and provided the business with more than £290 million of headroom at 28 March
2026.
Adjusted profit before tax
Adjusted profit before tax increased by 11.2 per cent to £220.0 million
(2025: £197.9 million).
Taxation
The tax charge for the year was £57.5 million (2025: £47.3 million),
equivalent to 26.6 per cent of profit before tax (2025: 26.0 per cent). The
standard rate of UK corporation tax remained 25.0 per cent (2025: 25.0 per
cent). The effective tax rate was higher than the standard rate, principally
reflecting non-qualifying depreciation and other expenses which are not
deductible for tax purposes. The effective tax rate on adjusted profit
before tax was 26.6 per cent (2025: 26.0 per cent).
Adjusted earnings per share
Adjusted earnings per share increased by 10.4 per cent to 301.7 pence (2025:
273.4 pence). The weighted average number of shares in issue during the year
was 53,501,533 (2025: 53,581,044).
Statutory profit measures
Statutory profit before tax was £215.8 million (2025: £181.6 million), with
statutory Group operating profit of £232.8 million (2025: £190.6 million)
and statutory earnings per share of 295.9 pence (2025: 250.5 pence).
Statutory gross profit was £471.3 million (2025: £408.8 million).
Cash flow and net debt
Net cash inflow from operating activities was £275.0 million (2025: £216.3
million). The increase of £58.7 million principally reflected the £43.2
million increase in EBITDA and a £18.3 million reduction in net working
capital outflow, partly offset by a £5.8 million increase in tax paid. Net
debt, including IFRS 16 lease liabilities, increased to £240.8 million (2025:
£172.4 million). The strong operating cash inflow was more than offset by
£161.9 million of net capital investment, £55.1 million of dividends paid to
Shareholders, £22.1 million of own shares purchased and transferred into the
Cranswick Employee Benefit Trust, £26.5 million of IFRS 16 lease payments and
£47.3 million of tax paid. Cash spent on acquisitions contributed a further
£32.9 million increase in net debt during the year.
Group income statement
For the 52 weeks ended 28 March 2026
2026 2025
Notes £'m £'m
Revenue 2,982.5 2,723.3
Adjusted Group operating profit 237.0 206.9
Net IAS 41 valuation movement in biological assets (2.2) (11.1)
Amortisation of intangible assets (2.0) (3.6)
Impairment of intangible assets - (1.6)
Group operating profit 4 232.8 190.6
Finance costs (17.0) (9.2)
Share of net profit of joint venture - 0.2
Profit before tax 215.8 181.6
Taxation (57.5) (47.3)
Profit for the year 158.3 134.3
Earnings per share (pence)
On profit for the year:
Basic 5 295.9p 250.5p
Diluted 5 290.2p 246.1p
Group statement of comprehensive income
For the 52 weeks ended 28 March 2026
2026 2025
£'m £'m
Profit for the year 158.3 134.3
Other comprehensive (expense)/income
Other comprehensive (expense)/income to be reclassified to profit or loss in
subsequent periods:
Cash flow hedges
(Losses)/gains arising in the year (0.4) 0.3
Reclassification adjustments for (losses)/gains included in the income (0.3) 0.1
statement
Income tax effect 0.2 (0.1)
Net other comprehensive (expense)/income to be reclassified to profit or loss (0.5) 0.3
in subsequent periods
Other comprehensive expense not to be reclassified to profit or loss in
subsequent periods:
Actuarial losses on defined benefit pension scheme (0.1) (0.2)
Income tax effect - -
Net other comprehensive expense not to be reclassified to profit or loss in (0.1) (0.2)
subsequent periods
(0.6) 0.1
Other comprehensive (expense)/income
Total comprehensive income 157.7 134.4
Group balance sheet
At 28 March 2026
2026 2025
Notes £'m £'m
Non-current assets
Financial asset investment 0.2 0.1
Intangible assets 219.8 210.9
Property, plant and equipment 707.9 605.4
Right-of-use assets 164.6 123.7
Biological assets 7.3 4.3
Total non-current assets 1,099.8 944.4
Current assets
Biological assets 86.2 91.8
Inventories 142.5 126.9
Trade and other receivables 384.6 355.0
Other financial assets - 0.3
Income tax receivable 11.7 6.9
Cash and short-term deposits 7 12.5 5.9
Total current assets 637.5 586.8
Total assets 1,737.3 1,531.2
Current liabilities
Trade and other payables (340.2) (328.1)
Other financial liabilities (0.5) (0.3)
Lease liabilities (19.3) (16.4)
Provisions (1.2) (2.4)
Total current liabilities (361.2) (347.2)
Non-current liabilities
Other payables (0.2) (0.5)
Other financial liabilities (81.2) (45.6)
Lease liabilities (156.5) (116.3)
Deferred tax liabilities (47.0) (32.0)
Defined benefit pension scheme liability (0.1) -
Provisions (2.2) (1.7)
Total non-current liabilities (287.2) (196.1)
Total liabilities (648.4) (543.3)
Net assets 1,088.9 987.9
Equity
Called-up share capital 5.4 5.4
Share premium account 135.9 133.0
Share-based payments 17.5 14.2
Shares held in trust (40.7) (35.4)
Hedging reserve (0.4) 0.3
Retained earnings 971.2 870.4
Total equity attributable to owners of the Parent 1,088.9 987.9
Group statement of cash flows
For the 52 weeks ended 28 March 2026
2026 2025
Notes £'m £'m
Operating activities
Profit for the year 158.3 134.3
Adjustments to reconcile Group profit for the year to net cash inflow from
operating activities:
Income tax expense 57.5 47.3
Net finance costs 17.0 9.2
Loss on sale of property, plant and equipment 0.7 0.9
Depreciation of property, plant and equipment 77.4 68.1
Depreciation of right-of-use assets 22.0 18.2
Amortisation of intangible assets 2.0 3.6
Impairment of intangible assets - 1.6
Share-based payments 11.6 8.4
Share of joint venture - (0.2)
Release of Government grants (0.4) (0.4)
Net IAS 41 valuation movement on biological assets 2.2 11.1
Decrease/(increase) in biological assets 0.4 (8.7)
Increase in inventories (10.6) (12.8)
Increase in trade and other receivables (20.0) (26.6)
Increase in trade and other payables 4.2 3.8
Cash generated from operations 322.3 257.8
Tax paid (47.3) (41.5)
Net cash inflow from operating activities 275.0 216.3
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired 9 (30.5) (25.0)
Distribution received from joint venture - 0.2
Payments for right-of-use assets (2.7) -
Purchase of financial asset investment (0.1) -
Purchase of property, plant and equipment (163.4) (137.6)
Proceeds from the sale of property, plant and equipment 1.5 2.0
Net cash used in investing activities (195.2) (160.4)
Cash flows from financing activities
Interest paid (6.6) (2.7)
Proceeds from issue of share capital 2.9 4.7
Proceeds from share options exercised by Employee Benefit Trust 4.5 -
Own shares purchased (22.1) (25.3)
Proceeds from borrowings 33.0 18.0
Repayment of borrowings acquired (1.5) -
Issue costs of borrowings (1.8) -
Dividends paid (55.1) (49.5)
Payment of lease capital (16.9) (16.2)
Payment of lease interest (9.6) (6.0)
Net cash outflow from financing activities (73.2) (77.0)
Net increase/(decrease) in cash and cash equivalents 7 6.6 (21.1)
Cash and cash equivalents at beginning of year 7 5.9 27.0
Cash and cash equivalents at end of year 7 12.5 5.9
Group statement of changes in equity
For the 52 weeks ended 28 March 2026
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 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
Profit for the year - - - - - 158.3 158.3
Other comprehensive (expense)/income - - - - (0.7) 0.1 (0.6)
Total comprehensive (expense)/income - - - - (0.7) 158.4 157.7
Share-based payments - - 11.6 - - - 11.6
Shares acquired by Employee Benefit Trust - - - (22.1) - - (22.1)
Share options exercised through shares acquired by Employee Benefit Trust - - 4.5 - - - 4.5
Transfer to retained earnings on grant of shares to beneficiaries of the - - - 16.8 - (16.8) -
Employee Benefit Trust
Exercise, lapse or forfeit of share-based payments - - (12.8) - - 12.8 -
Share options exercised - 2.9 - - - - 2.9
Dividends - - - - - (55.1) (55.1)
Deferred tax related to changes in equity - - - - - (1.3) (1.3)
Current tax related to changes in equity - - - - - 2.8 2.8
At 28 March 2026 5.4 135.9 17.5 (40.7) (0.4) 971.2 1,088.9
Notes to the accounts
1. Basis of preparation
The results comprise those of Cranswick plc and its subsidiaries for the 52
weeks ended 28 March 2026. This preliminary announcement has been prepared
on the basis of accounting policies as set out in the statutory accounts for
the 52 weeks ended 28 March 2026. 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 28 March 2026. Comparatives are for the 52 week period ended
29 March 2025. The Balance Sheets for 2026 and 2025 have been prepared as at
28 March 2026 and 29 March 2025 respectively.
Statutory accounts for the 52 weeks ended 28 March 2026 and 52 weeks ended 29
March 2025 have been reported on by the auditors who issued an unqualified
opinion in respect of all years and the auditors' reports for 2026 and 2025
did not contain statements under 498(2) or 498(3) of the Companies Act 2006.
Statutory accounts for the 52 weeks ended 29 March 2025 have been filed with
the Registrar of Companies. The statutory accounts for the 52 weeks ended
28 March 2026, which were approved by the Board on 19 May 2026, 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, the availability of
labour, an outbreak of Avian Influenza impacting our chicken flock and
a widespread outbreak of African Swine Fever in the UK and Europe, as well as
the Group's considerable financial resources and strong trading relationships
with its key customers and suppliers. The Directors have additionally
considered the potential impacts of the wars in Ukraine and Iran, including
associated global supply chain uncertainties, and have concluded that these
would not have a material impact on the conclusion set out below. These
forecasts, which have been reviewed by the Directors, lead the Directors to
believe that the Group is well placed to manage its business risk
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 2027.
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 2029 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 31
March 2029.
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
52 weeks ended 29 March 2025, except for the new standards, interpretations
and change in accounting policy explained below.
Accounting standards or interpretations which have been adopted in the year
There were no accounting standards or interpretations that have become
effective in the year which had an impact on disclosures, financial position
or performance.
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.
Amendments to IFRS 9 and IFRS 7 'The Classification and Measurement of
Financial instruments': effective for accounting periods beginning on or after
1 January 2026, clarify the requirements relating to the recognition and
derecognition of certain financial assets and liabilities. This includes
specific guidance for liabilities settled through electronic cash transfer
systems. The change is not expected to have a significant effect on the
Group's Financial Statements.
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
Blakemans acquisition is included within the Gourmet Products category. The
operating segments have been aggregated into one reportable segment as they
share similar economic characteristics. The economic indicators, which have
been assessed in concluding that these operating segments should be
aggregated, include the similarity of long-term average margins; expected
future financial performance; and operating and competitive risks. In
addition, the operating segments are similar with regard to the nature of the
products and production process, the type and class of customer, the method
of distribution and the regulatory environment.
2026 £'m 2026 £'m 2026 £'m 2025 £'m 2025 £'m 2025 £'m
Food Other Total Food Other Total
Revenue 2,934.9 47.6 2,982.5 2,686.6 36.7 2,723.3
Adjusted operating profit/(loss) 236.2 0.8 237.0 210.3 (3.4) 206.9
Finance costs (15.9) (1.1) (17.0) (8.0) (1.2) (9.2)
Share of net profit of joint venture - - - 0.2 - 0.2
Adjusted profit/(loss) before tax 220.3 (0.3) 220.0 202.5 (4.6) 197.9
Assets 1,694.3 43.0 1,737.3 1,503.0 28.2 1,531.2
Liabilities (602.7) (45.7) (648.4) (510.7) (32.6) (543.3)
Net assets/(liabilities) 1,091.6 (2.7) 1,088.9 992.3 (4.4) 987.9
Depreciation 97.6 1.8 99.4 84.0 2.3 86.3
Property, plant and equipment and right-of-use asset additions 195.4 8.0 203.4 150.0 2.7 152.7
4. Group operating profit
Group operating costs comprise:
2026 2025
£'m £'m
Cost of sales excluding net IAS 41 valuation movement on biological assets 2,509.0 2,303.4
Net IAS 41 valuation movement on biological assets* 2.2 11.1
Cost of sales 2,511.2 2,314.5
Gross profit 471.3 408.8
Selling and distribution costs 125.0 112.8
Administrative expenses excluding impairment and amortisation of intangible 111.5 100.2
assets
Impairment of intangible assets - 1.6
Amortisation of intangible assets 2.0 3.6
Administrative expenses 113.5 105.4
Total operating costs 2,749.7 2,532.7
*This represents the difference between operating profit prepared under IAS 41
and operating profit prepared under historical cost accounting, which forms
part of the reconciliation to adjusted operating profit.
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 £158.3 million (2025:
£134.3 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:
2026 2025
Thousands Thousands
Basic weighted average number of shares 53,502 53,581
Dilutive potential ordinary shares - share options 1,051 954
54,553 54,535
Adjusted earnings per share are calculated using the weighted average number
of shares for both basic and diluted amounts as detailed above (see Note 10).
6. Dividends
Subject to Shareholders' approval the final dividend will be paid on 28 August
2026 to Shareholders on the register at the close of business on 17 July 2026.
7. Analysis of changes in net debt
At 29 March 2025 Acquired on acquisition Cash flow Other non-cash changes At 28 March 2026
£'m £'m £'m £'m £'m
Cash and cash equivalents 5.9 3.9 2.7 - 12.5
Bank loans - (1.5) 1.5 - -
Revolving credit facility (45.6) - (33.0) 1.1 (77.5)
Lease liabilities (132.7) (0.8) 26.5 (68.8) (175.8)
Net debt (172.4) 1.6 (2.3) (67.7) (240.8)
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. Acquisitions
i) James T Blakeman & Co (Holdings) Limited
On 16 May 2025, the Group acquired 100 per cent of the issued share capital of
James T Blakeman & Co (Holdings) Limited and its subsidiary entities,
James T. Blakeman (Services) Limited, and James T Blakeman & Co Limited,
for cash consideration of £37.8 million.
The acquisition will enable the Group to expand its offering in the sausage
manufacturing market, bringing more raw and cooked sausage capacity to the
Group.
The acquisition has been accounted for as a business combination using the
acquisition method of accounting in accordance with IFRS 3 Business
Combinations and consequently the assets acquired, and liabilities assumed,
have been recorded by the Group at fair value, with an excess purchase price
over the fair value of the identifiable assets 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 James T Blakeman & Co
(Holdings) Limited and its subsidiaries:
Fair value
£'m
Net assets acquired:
Customer relationships 1.9
Property, plant and equipment 18.9
Right-of-use assets 0.8
Inventories 5.0
Trade and other receivables 9.6
Bank and cash balances 3.9
Bank loans (1.5)
Trade and other payables (5.6)
Lease liabilities (0.8)
Corporation tax (0.5)
Deferred tax liability (2.9)
28.8
Goodwill arising on acquisition 9.0
Total consideration 37.8
Satisfied by:
Initial cash consideration 34.1
Deferred contingent consideration 3.7
37.8
Net cash outflow arising on acquisition:
Cash consideration paid 34.1
Cash and cash equivalents acquired (3.9)
30.2
The agreement includes deferred contingent consideration payable in cash to
the previous owners of James T Blakeman & Co (Holdings) Limited based on
the performance of the entities acquired in the period to 27 March 2027. The
amount payable will be between £nil and £3.7 million.
The fair value of the deferred contingent consideration on acquisition was
estimated at £3.7 million by calculating the present value of the future
expected cashflows.
The fair value of trade and other receivables acquired is the same as the
gross contractual amounts. All of the trade and other receivables acquired are
expected to be collected in full.
9. Acquisitions (continued)
Included in the £9.0 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 28 March 2026, the external revenue of the
three acquired companies was £58.8 million and the combined net profit after
tax was £0.8 million.
Had the acquisition taken place at the beginning of the financial year, Group
revenue would have been £2,991.0 million and the Group profit after tax would
have been £159.3 million.
In addition to the net cash outflow on acquisition of £30.2 million, the
Group immediately paid a further £1.5 million to settle the bank loan.
ii) Fridaythorpe mill purchase
On 19 September 2025, the Group purchased a mill at Fridaythorpe. In
accordance with IFRS 3 Business Combinations, the transaction has been
accounted for as an asset purchase.
iii) T.W. Cook Limited
On 4 July 2025, the Group acquired 100 per cent of the issued share capital of
T.W. Cook Limited, a property holding company. In accordance with IFRS 3
Business Combinations, the transaction has been accounted for as an asset
purchase.
iv) 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 £14.5 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 fair values of the identifiable assets and
liabilities acquired by the Group in relation to J.S.R. Genetics Limited and
its subsidiary:
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 (0.7)
12.6
Goodwill arising on acquisition 1.9
Total consideration 14.5
9. Acquisitions (continued)
Satisfied by:
Initial cash consideration 14.2
Deferred consideration 0.3
14.5
Net cash outflow arising on acquisition:
Cash consideration paid 14.2
Cash and cash equivalents acquired 5.3
19.5
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.
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 in the prior year.
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 prior 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 £14.5 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. A further £2.2 million
other payables due to the previous owner and related parties were settled
post-acquisition upon finalisation of certain property related conditions.
The deferred consideration of £0.3 million was settled in the year. No
further amounts payable are recognised at the year end.
v) 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 fair values of the identifiable assets and
liabilities acquired by the Group in relation to Piggy Green Limited and
Fornham Pigs Limited.
9. Acquisitions (continued)
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
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 in the prior year.
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 prior financial year,
Group revenue would have been £2,723.5 million with no change to Group profit
after tax.
£0.1 million of the deferred consideration was settled in the prior year. The
remaining amount payable is estimated at £0.1 million and due for payment
within the next year.
vi) Financial asset investment - BIA Analytical Ltd
On 28 January 2026, as part of a fundraising exercise undertaken by BIA
Analytical Ltd, the Group increased the value of its investment by £0.1
million, such that the Group retained its existing 3.30 per cent of the
ordinary share capital.
vii) Deferred and Contingent Consideration
The Sale and Purchase agreements for Piggy Green Limited and Fornham Pigs
Limited included deferred consideration payable in cash to the previous owners
based on the finalisation of certain contractual arrangements. The amount
payable is estimated at £0.1 million and will be paid within the next year.
9. Acquisitions (continued)
The sale and purchase agreement for J.S.R. Genetics Limited included deferred
consideration payable in cash to the previous owners based on the finalisation
of the completion accounts. The estimated amount payable was £0.2 million.
Following the finalisation of the completion accounts, the deferred
consideration was increased by £0.1 million and a cash payment of £0.3
million was made in the year.
The Sale and Purchase agreement for James T Blakeman & Co (Holdings)
Limited included deferred contingent consideration payable in cash to the
previous owners based on the performance of the entities acquired in the
period to 27 March 2027. The amount payable is estimated at £3.7 million and
will be paid in the period to 25 March 2028.
10. 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
surplus/(liability) 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
2026 2025 Change
£'m £'m
Revenue 2,982.5 2,723.3 +9.5%
James T. Blakeman (Services) Limited and James T Blakeman & Co Limited (58.8) -
J.S.R. Genetics Limited and JSR Pyramid Limited (15.6) -
Like-for-like revenue 2,908.1 2,723.3 +6.8%
Adjusted gross profit
2026 2025 Change
£'m £'m
Gross profit 471.3 408.8 +15.3%
Net IAS 41 valuation movement 2.2 11.1
Adjusted gross profit 473.5 419.9 +12.8%
10. Alternative performance measures (continued)
Adjusted Group operating profit and adjusted EBITDA
2026 2025 Change
£'m £'m
Group operating profit 232.8 190.6 +22.1%
Net IAS 41 valuation movement 2.2 11.1
Amortisation of intangible assets 2.0 3.6
Impairment of intangible assets - 1.6
Adjusted Group operating profit 237.0 206.9 +14.5%
Depreciation of property, plant and equipment 77.4 68.1
Depreciation of right-of-use assets 22.0 18.2
Adjusted EBITDA 336.4 293.2 +14.7%
Adjusted profit before tax
2026 2025 Change
£'m £'m
Profit before tax 215.8 181.6 +18.8%
Net IAS 41 valuation movement 2.2 11.1
Amortisation of intangible assets 2.0 3.6
Impairment of intangible assets - 1.6
Adjusted profit before tax 220.0 197.9 +11.2%
Adjusted earnings per share
2026 2026 2026 2025 2025 2025
Basic Diluted Basic Diluted
£'m pence pence £'m pence pence
On profit for the year 158.3 295.9 290.2 134.3 250.5 246.1
Amortisation of intangible assets 2.0 3.8 3.8 3.6 6.8 6.7
Tax on amortisation of intangible assets (0.5) (1.0) (1.0) (0.9) (1.7) (1.7)
Net IAS 41 valuation movement 2.2 4.0 4.0 11.1 20.8 20.4
Tax on net IAS 41 valuation movement (0.5) (1.0) (1.0) (2.8) (5.2) (5.1)
Impairment of intangible assets - - - 1.6 3.0 3.0
Tax on impairment of intangible assets - - - (0.4) (0.8) (0.8)
On adjusted profit for the year 161.5 301.7 296.0 146.5 273.4 268.6
10. Alternative performance measures (continued)
Free cash flow
2026 2025 Change
£'m £'m
Net cash from operating activities 275.0 216.3 +27.1%
Net interest paid (6.6) (2.7)
Free cash flow 268.4 213.6 +25.7%
Free cash conversion
2026 2025 Change
£'m £'m
Free cash flow 268.4 213.6 +25.7%
Non-growth capital expenditure (45.0) (31.4)
Net IAS 41 valuation movement (2.2) (11.1)
Lease capital paid (16.9) (16.2)
Lease interest paid (9.6) (6.0)
194.7 148.9
Adjusted profit for the year 161.5 146.5
Free cash conversion 120.6% 101.6% +1,892bps
Return on capital employed
2026 2025 Change
£'m £'m
Average opening and closing net assets 1,038.4 949.7
Average opening and closing net debt 206.6 135.9
Average opening and closing pension surplus/(liability) - (0.1)
Average opening and closing deferred tax 39.5 30.2
1,284.5 1,115.7
Adjusted Group operating profit 237.0 206.9
Return on capital employed 18.5% 18.5% - 9bps
11. Principal risks and uncertainties
The Group has a structured and established approach to risk management,
ensuring a consistent and planned process for identifying, assessing,
prioritising, mitigating and monitoring risks across the business. The
principal risks and uncertainties facing the Group are set out in detail on
pages 79 to 82 of the Annual Report and Accounts for the 52 weeks ended 29
March 2025, dated 20 May 2025, a copy of which is available on the Group's
website.
During the year, the Group has continued to monitor and assess risks in
detail, while identifying areas where further mitigations could be
implemented. Regular review of principal risks, completed over the course of
the year, resulted in increases to 'Infection within livestock', 'Labour
availability and cost', 'IT systems and cyber security' and 'Availability and
cost of supplies' together with 'Animal welfare' being escalated from site
risk registers to a new principal risk. In addition, specific principal risks
were refined being 'Recruitment and retention of key personnel' to 'Leadership
succession' and 'Pig meat availability and price' to 'Availability and cost of
supplies'.
The Board therefore considers the principal risks and uncertainties at 28
March 2026, to be as follows:
1. Infection within livestock 8. Availability and cost of supplies
2. Labour availability and cost 9. Leadership succession
3. Animal welfare 10. Health and safety
4. Sustainability and climate change 11. Interest rate, currency, liquidity and credit risk
5. Reliance on key customers 12. Food scares and product contamination
6. IT systems and cyber security 13. Disruption to Group operations
7. Consumer demand
As previously reported, infection within 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 outbreak would have
on the UK pig industry and, specifically, our ability to continue exporting.
The spread of these diseases, together with Avian Influenza and the emerging
Newcastle Disease in poultry, continue to be closely monitored by the Group,
and robust biosecurity protocols are in place and strictly enforced across all
Cranswick farms. During the year, the Group continued to engage with industry
bodies and government to advocate for timely legislation and operational
guidance, the absence of which presents a material risk to both the Group and
wider livestock industry.
In common with other UK businesses, wider external events including the
cost-of-living crisis, geopolitical uncertainties, animal activist activity
and regulatory changes continue to present challenges and uncertainties for
the Group, particularly across our supply chain, operations and workforce.
Given the ongoing conflict in the Middle East, the outcome of which remains
uncertain, the Group is closely monitoring the impact on energy prices and the
availability and price of other key products to include CO(2), fertiliser and
resins.
Going forward, 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. In addition, the
rapid development of Artificial Intelligence presents opportunities for the
Group, but also risks if not embraced appropriately.
12. Report and accounts
The Report and Accounts will be available on the Company's website at
www.cranswick.plc.uk on 26 June 2026. 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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