REG - Kitwave Group PLC - Trading Update

KitwaveAnnouncement

04/05/2022 07:00

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RNS Number : 1867K  Kitwave Group PLC  04 May 2022

04 May 2022

Kitwave Group plc

 

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

Trading Update

Kitwave Group plc (AIM: KITW), the delivered wholesale business, today
announces a pre-close trading update for the six-month period ended 30 April
2022.

 

The Group experienced a strong first half financial performance with all
divisions of the business now trading at pre-pandemic levels or higher.
Following this performance, the Board now anticipates the Group's results for
the full financial year to be slightly ahead of market expectations.

 

Due to the seasonality of the business, as in historical periods, there is a
heavier weighting towards trading in the second half of the year.

 

As for many businesses, the final full year results of the Group will be
influenced by external pressures and uncertainties from cost of living
pressures impacting end consumers' disposable income. The business will also
continue to face higher operating costs, however the Board is confident that
these will be recovered.

 

The Board is pleased to confirm that the integration of the M.J. Baker
Foodservice Limited, which was acquired in February 2022, into the Group has
gone to plan and the business is performing in line with internal
expectations.

 

Paul Young, Chief Executive Officer of Kitwave, commented:

 

"I am pleased to report on the progress made by the Group in the six months
ending 30 April 2022. Following an encouraging first half performance, and
with the second half of the year typically driving increased trading, we
expect full year results to be slightly ahead of market expectations.

 

"During the period, we were delighted to announce Kitwave's first acquisition
since its admission to AIM in May 2021. The acquisition of M.J. Baker enables
a significant expansion of the Group's activities into south-west England and
complements the Group's existing Foodservice division. The integration of the
business into the Group is going as hoped and the business is operating in
line with internal expectations.

 

"We look forward to providing updates to the market in due course."

 

- Ends -

 

For further information please contact:

                                                      Tel: +44 (0) 191 259 2277

 Kitwave Group plc

 Paul Young, Chief Executive Officer

 David Brind, Chief Financial Officer

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

(Nominated Adviser and Sole Broker)

 Bobbie Hilliam

 Georgina McCooke

 Alex Aylen - Sales
 Yellow Jersey PR                                     Tel: +44 (0) 20 3004 9512

(Financial media and PR)

 Sarah Hollins

 Henry Wilkinson

 James Lingfield

 

Company Overview

Founded in 1987, following the acquisition of a single-site confectionery
wholesale business based in North Shields, United Kingdom, Kitwave is a
delivered wholesale business, specialising in selling and delivering impulse
products, frozen and chilled foods, alcohol, groceries and tobacco to
approximately 39,000, mainly independent, customers.

 

With a network of 27 depots, Kitwave is able to support delivery throughout
the UK to a diverse customer base, which includes independent convenience
retailers, leisure outlets, vending machine operators, foodservice providers
and other wholesalers, as well as leading national retailers.

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

 

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

 

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

 

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