Trading Statement (8396I)
June 21 2011 - 9:22AM
UK Regulatory
TIDMCRAW
RNS Number : 8396I
Crawshaw Group PLC
21 June 2011
Crawshaw Group plc
Trading update
Crawshaw Group plc ("Crawshaw" or the "Company"), the meat
focussed retailer, provides the following update on current trading
and the outlook for the current year.
Recent comments by certain grocery retailers have referred to
"extremely tough market conditions" that are likely to prevail for
the remainder of the year. Crawshaw trades in the same environment
as these retailers and, reflecting prevailing market conditions,
sales in recent weeks across all our outlets have been below
expectations. Like for like sales for the year to date are now 2%
below last year. In addition, continued rising meat prices have put
pressure on our margins with year to date margins now being 1
percentage point below last year. In view of this, we expect
trading conditions to remain challenging for the foreseeable
future.
Recent customer feedback continues to indicate extremely high
levels of satisfaction with quality, service and value for money.
As footfall in our stores has remained robust, we believe that the
decline in sales is being driven by customers trading down and
making purchases last longer.
The average customer spend is just over GBP4 and management
consider that there is an opportunity to broaden the product offer
in order to increase sales to existing loyal customers, and to make
the retail space work harder. Side dishes, desserts, sauces and
more take-out options are all being considered. Recent customer
research has confirmed this opportunity and has informed management
as to the areas of focus for product development.
Accordingly, we are in the process of recruiting a category /
marketing manager, a hot food development manager, and a category
buyer. Although this represents an unbudgeted cost in a period of
weak consumer demand, management consider that this is an
opportunity which warrants further investment.
As a result of current trading results and additional
recruitment costs, the Company now expects profits for the current
financial year to be lower than previously anticipated.
Our balance sheet, however, is strong and this month we have
repaid all our bank borrowings, with the exception of a property
backed mortgage to the value of GBP840,000.
Enquiries:
Crawshaw Group plc
Lynda Sherratt 01709 369 602
W H Ireland Limited
Robin Gwyn 0161 832 2174
This information is provided by RNS
The company news service from the London Stock Exchange
END
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