Cranswick has announced plans to build a new £54 million poultry processing plant at Eye in Suffolk in its first half results showing strong growth in poultry sales.
The UK food producer published its unaudited results for the six months ended 30 September 2017 showing sales up 23% to £714.6 million, adjusted profit before tax up 17.2% to £44.4 million, and group operating margin at 6.2%. Debt was significantly higher at 16.7 million, compared to £2.9 million in 2016.
The firm noted there had been record capital expenditure of £29 million during the half to “add capacity, extend capability and drive efficiencies.”
A new £28m Continental Foods facility in Bury, Lancashire is progressing to plan, and there will also be a £13 million investment to upscale existing milling and hatchery facilities in Suffolk.
Adam Couch, Cranswick’s Chief Executive Officer commented: “We have invested a record £29 million in our infrastructure during the first half of the year.
“As part of the development of our rapidly growing poultry business we are announcing today our planned investment in a new primary poultry facility in Eye, Suffolk. 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. We also plan to upscale our feed mill and hatchery operations to maintain our fully integrated supply chain model.
“During the period we have strengthened our asset base, enhanced market positions and developed new customer relationships. We continue to make good progress against each of our strategic objectives and we are well placed to continue our successful development in the current financial year and going forward.”