The current financial year has started in line with the Board’s expectations.
Total sales in the first quarter at £198 million, were 19 per cent higher than the previous year, excluding revenues from the pet business which was sold in April 2009. The increase reflects organic growth of 6 per cent and 13 per cent from CCF Norfolk which was acquired in June 2009.
During the period most categories delivered strong growth reflecting higher volumes. Whilst there was a reduction in sales of continental products there were substantial gains in fresh pork, bacon and sandwiches and continued growth in cooked meats and sausages.
There were further modest increases in pig prices during the period, albeit they remain below the peak of last summer. The impact was absorbed through increased volumes and continued operating efficiencies.
Good progress continues to be made in integrating the Norfolk facility, with the recent capital investment programme delivering increased capacity and operational benefits.
Cash flow continues to be strong. Net debt stood at £54 million at the end of the quarter which is a reduction on the year-end level and £10 million lower than that of a year ago. This reduction was after making substantial capital investment over the past year. Capital projects remain on schedule, with the Lazenby’s sausage facility expansion due to complete over the summer and the Hull fresh pork development during the autumn.
With experienced management throughout the Group and a well invested asset base, the Board is confident in the continued successful long term development of the business.
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