REG - Kitwave Group PLC - Trading Update

KitwaveAnnouncement

06/11/2023 07:00

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RNS Number : 4110S  Kitwave Group PLC  06 November 2023

6 November 2023

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 2023
("FY2023").

 

Trading update

 

Following a strong performance in the first half of FY2023, positive momentum
continued across all of the Group's divisions. As a result, and following the
significant upgrade in July 2023, the Board expects the full-year financial
results to be in line with current market expectations.

 

Whilst acknowledging the prevailing macroeconomic landscape, which has created
broader inflationary challenges, the Board remains confident in the Group's
ability to utilise its extensive experience and expertise to mitigate these
risks effectively.

 

The integration of West Country Food Holdings, the specialist fresh produce
wholesaler, has been successful and the business is performing in line with
management expectations. The construction of a new 80,000 sq. ft. distribution
centre to fully integrate the Group's South West operations has commenced with
completion planned for Autumn 2024. The Group continues to look for
opportunities to grow both organically and through strategic acquisitions.

 

The Group's web-based trading platform, launched in FY2022, has demonstrated
excellent results in terms of brand partner and customer engagement with
utilisation of the platform increasing each month and resulting in online
order capture standing at 47% for the quarter to September 2023.

 

Paul Young, Chief Executive Officer of Kitwave, commented:

 

"I am delighted to report that Kitwave continued to perform strongly both
financially and operationally in the financial year ended 31 October 2023.
Given that trading in the wholesale sector is typically stronger in H2 of our
financial year, we capitalised on the positive momentum from H1 2023 and
anticipate being in line with current market expectations for the full year.

 

"We are particularly pleased with the excellent performance of West Country
Food Holdings since its integration into the Group earlier this year enabling
Kitwave to now offer high-quality fresh produce across the South West.

 

"The Board continues to remain committed to delivering value to our
shareholders, and I look forward to presenting record financial results to
shareholders for the year ended 31 October 2023."

 

- 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

 Alex Orr
 Yellow Jersey PR                                     Tel: +44 (0) 20 3004 9512

(Financial media and PR)

 Sarah Hollins

 Shivantha Thambirajah

 Bessie Elliot

 

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, chilled and fresh foods, alcohol, groceries and tobacco to
approximately 42,000, mainly independent, customers.

 

With a network of 29 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) .

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.

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