Meat firm Cranswick have announced plans to build a brand new poultry processing plant in Suffolk.
The project will cost £54 million, much of which will come from the firm’s fantastic £133.8 million rise in profits in the six months to September 2017.
A good year
It’s clear that it has been a very good year indeed for Cranswick. Their interim results reveal the scale of their success, with like for like sales growing hugely year on year.
Sales were up by 23% to a total of £714.6 million compared with 2016, with sales growing by 18% on a like-for-life basis. Their adjusted profit before tax was also 17.2% higher, at a total of £44 million.
Adjusted earnings per share have also gone up by 20.1%, leaving them at 70p. Part of this success can be attributed to the investments and gains that they have already made, as they invested £29 million into the business in the first half of the 2017/18 financial year. This allowed them to add capacity to their sites, increase their capabilities, and drive efficiency higher. It also added the need for some speedy food recruitment as they increased the size of their on-site teams.
The Fresh Pork division accounts for 34% of the company’s sales, and this rose by 26.3% across the year. Like-for-like sales growth was 12.8% when Ballymena, the Northern Irish meat firm, was taken out of account. Cranswick acquired Ballymena during the last financial year.
Export sales grew by 30.1%, with most of the sales going to the US and Europe. There was a decline in Far East sales of 7.9%, but this was not enough to derail the overall figures.
Stronger volumes and higher prices accounted for the increase, with sterling weakness against USD and EUR being to blame – or, rather, to thank. 37% of the group’s sales went to Cooked Meats and Continental Products, which are gathered under the Convenience umbrella. This rose by 17.2% year on year.
Several new contracts were secured in the previous year, allowing sales to rise hugely above the overall market.
New plans ahead
The plans for the new poultry plant will now be subject to a decision from the board of directors.
CEO of Cranswick Adam Couch said, “This class-leading facility, which is scheduled for completion in late 2019, will double our existing capacity with further room for expansion. The facility will incorporate the highest animal welfare standards and latest generation production techniques and equipment to drive operational efficiency gains.”
The company are not just expecting to develop a new site, but also to invest more into their current milling and hatchery facilities. They will be spending £13 million to upscale these sites and produce more chickens for their customers. This is sure to generate a lot of extra food jobs across the board, helping to increase their order output.
They will be looking to recruit 33 new workers as part of an initial phase, with 20 full-time working roles and 13 apprentice positions up for grabs. If you don’t want to miss these, make sure that you check back on our job boards regularly and sign up for email alerts whenever something fitting your requirements is added.
This is a great opportunity for Cranswick to capitalise on their recent success and expand their offering even further. With the uncertainty of Brexit looming ever closer, firms will be looking to secure deals both at home and away, so their export and domestic sales may well rise before the exit is made. After that, they will be in a strong market position.