8 October 2012 – trading statement
A first-half trading statement has revealed that the overall performance of the group has been in line with expectations with underlying revenues for the six months to 30 September being up by 5% over the previous year. Group borrowings are down on the previous quarted end and well below the level of a year ago whilst Kingston Foods, which was acquired in June, is already making a positive contibution to the group. One area of concern is the level of pig prices which are steadily increasing. This is partly due to the introduction of new EU welfare regulations which are giving rise to reductions in pig herds in both the UK and Europe. The group is to discuss the price rises with its customers but it may be that these will not be able to be passed on in full leaving to some pressure on margins. Nevertheless, the group has an experienced management team and a strong range of products and the shares remain a LONG TERM BUY.