LONDON (dpa-AFX) - UK food producer Cranswick plc (CWK.L) Monday said its first-quarter trading has been encouraging with a 1.5 percent increase in revenues against prior year's strong comparatives.
The company also announced the acquisition of Katsouris Brothers Limited, a processor and multi-channel supplier of Continental and Mediterranean food products. The transaction is expected to be modestly earnings enhancing in the current financial year.
The net cash consideration of 43.5 million pounds was funded from Cranswick's existing debt facilities. Further deferred contingent consideration of up to 7.0 million pounds in cash may become payable dependent on the future performance of the business in the 14 month period to September 30, 2020.
In its trading update, the company noted that Far East export revenues were strongly ahead of last year, reflecting increased demand from China as the region was hurt by the widespread outbreak of African Swine Fever.
The UK pig price increased 10 percent, while the average price across the quarter was still below that in the equivalent period a year earlier.
Looking ahead, the company said its fiscal year outlook for the underlying business remains in line with management's expectations. The company is expected to benefit from the acquisition of Katsouris Brothers.
Regarding the acquisition, the company noted that Katsouris Brothers operates from two facilities in Wembley, North London and employs a total workforce of approximately 250. Costas and Louis Constantinou, Managing Director and Commercial Director respectively, will remain with the business.
For the year ended June 30, 2019, revenue for Katsouris Brothers was 68 million pounds and adjusted EBITDA was 6 million pounds.
Copyright RTT News/dpa-AFX