REG - Kitwave Group PLC - Trading Update

KitwaveAnnouncement

03/11/2022 07:00

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RNS Number : 1464F  Kitwave Group PLC  03 November 2022

3 November 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 year ended 31 October 2022.

 

The strong H1 performance continued for the remainder of the financial year.
The Board, therefore, expects the results for the full financial year to be in
line with the upgraded market expectations referred to in the interim results
of the Group, published on 5 July 2022.

 

During the year, the Group continued to execute its strategy to grow the
business both organically and by acquisition. In this regard, the Group was
pleased to announce the purchase of the entire share capital of M. J. Baker
Foodservice Limited ("M. J. Baker") in February 2022. This business has been
successfully integrated into the Group's foodservice division and is trading
in line with the Board's expectations.

 

The Group was also pleased to open its new distribution centre for HB Clark in
Wakefield during March 2022. The new site has brought considerable benefits to
the Group's on-trade operations through synergies and operational
efficiencies.

 

Investment in the business also targeted improving the sales journey for
customers. During the financial year, the Group launched a web platform
enabling customers to more easily order products from across each of its
divisions. The platform has returned highly encouraging results, both in terms
of order numbers and sizes; with customer feedback being overwhelmingly
positive.

 

The Board remains conscious of the wider, macroeconomic setting in which the
Group is currently operating. Increases in interest rates and inflationary
pressures, particularly labour rates and fuel prices, will continue to impact
operating costs. However, as previously explained, the Group has taken prudent
measures to mitigate these risks and will continue to recover these costs,
wherever possible.

 

Paul Young, Chief Executive Officer of Kitwave, commented:

 

"I am pleased to report another strong financial and operational year for the
Group. In a challenging environment, Kitwave's strong market performance is a
testament to our proven strategy and our resilience to external market
pressures.

 

"As expected, M. J. Baker has been an excellent addition to the Group's
foodservice division, with its performance since its integration validating
our strategy of seeking to identify acquisition opportunities that help to
create strong synergies within the Group. The investment into the new
Wakefield site and the launch of our web platform for customers indicate how
we are constantly streamlining and improving our processes to remain at the
forefront of innovation in the delivered-wholesale industry.

 

"As outlined earlier in the year, the strong H1 performance enabled us to
improve our financial expectations for the full year. A further robust H2 has
ensured that we expect to meet these targets, positioning the Group well going
forward, despite ongoing external pressures. As we enter the new financial
year, this momentum continues and the outlook for the Group remains positive.

 

"With considerable growth opportunities still available, both in the form of
organic developments and through strategic, complementary acquisitions, we
look forward to updating the market further on our continued progress."

 

- Ends-

 

For further information please contact:

 

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

 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

 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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