Meat and deli products retailer Crawshaw Group made an underlying profit last year.
The year to January 2009 was the company’s first year as a quoted company. Crawshaw lost £846,000 on revenues of £16m. However, stripping out reverse acquisition costs, intangible asset write downs and restructuring costs, the underlying profit was £675,000.
The rate of revenue growth increased in the second half of the year. Part of the growth came from branch openings but existing sites also grew their revenues - even though two have been closed. Higher costs relating to the Aim quotation and increased raw materials costs meant that margins have fallen. New sites also take two or three months to reach the point where they are generating cash.
Net debt was £2.74m at the end of January 2009. Since then, £1m of loans have been swapped for shares, which has cut net debt to £2m.
At 22.5p a share, up 2.5p on the day, Crawshaw is valued at £11.8m. The share price has more than doubled in the past month.
Like-for-like sales in the first 13 weeks of the financial year are ahead of last year. Higher, raw materials costs continue to reduce margins. The 20th store should open in June 2009.
Profits could approach £1m in 2009-10.
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