Cranswick – 990p

31 January – trading update

A trading update on the three months to 31 December has revealed that sales were 8% ahead of the same period last year, with particularly strong sales of bacon, sausages and cooked meat products.  The group continues to invest in its production facilities and net borrowings rose to £48m from £32m during the quarter, although this is less than the £59m reported at the same stage last year.  Prospects at the company remain very sound, but following the increase in the share price, the shares no longer look cheap if forecast earnings per share of 77p are achieved for the year to 31 March.  We reduce our recommendation to HOLD.

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