Kitwave Group plc (AIM: KITW), the delivered wholesale business, today announces a pre-close trading update for the year ended 31 October 2023 (“FY2023”).
Trading update
Following a strong performance in the first half of FY2023, positive momentum continued across all of the Group’s divisions. As a result, and following the significant upgrade in July 2023, the Board expects the full-year financial results to be in line with current market expectations.
Whilst acknowledging the prevailing macroeconomic landscape, which has created broader inflationary challenges, the Board remains confident in the Group’s ability to utilise its extensive experience and expertise to mitigate these risks effectively.
The integration of West Country Food Holdings, the specialist fresh produce wholesaler, has been successful and the business is performing in line with management expectations. The construction of a new 80,000 sq. ft. distribution centre to fully integrate the Group’s South West operations has commenced with completion planned for Autumn 2024. The Group continues to look for opportunities to grow both organically and through strategic acquisitions.
The Group’s web-based trading platform, launched in FY2022, has demonstrated excellent results in terms of brand partner and customer engagement with utilisation of the platform increasing each month and resulting in online order capture standing at 47% for the quarter to September 2023.
Paul Young, Chief Executive Officer of Kitwave, commented:
“I am delighted to report that Kitwave continued to perform strongly both financially and operationally in the financial year ended 31 October 2023. Given that trading in the wholesale sector is typically stronger in H2 of our financial year, we capitalised on the positive momentum from H1 2023 and anticipate being in line with current market expectations for the full year.
“We are particularly pleased with the excellent performance of West Country Food Holdings since its integration into the Group earlier this year enabling Kitwave to now offer high-quality fresh produce across the South West.
“The Board continues to remain committed to delivering value to our shareholders, and I look forward to presenting record financial results to shareholders for the year ended 31 October 2023.”
Directorate Changes
Kitwave Group plc (AIM: KITW), the delivered wholesale business, today announces that Paul Young, Chief Executive Officer, will be retiring and stepping down from the Board at the end of the Company’s Annual General Meeting (“AGM”) to be held in March 2024. Ben Maxted, the Group’s Chief Operating Officer, will become Chief Executive Officer following Paul’s retirement. A handover period between Paul and Ben will commence immediately to ensure a seamless transition of Chief Executive Officer responsibilities prior to the next AGM.
Steve Smith, Chairman of Kitwave, commented:
“Paul’s retirement next year will mark the end of a remarkable career with Kitwave. Having founded the Company in 1987 as a single-site confectionery business Paul has been instrumental in its growth and development into the delivered wholesale business that it is today. On behalf of everyone at Kitwave, we thank Paul for his vision and enduring contribution to the Group and we wish him well in his retirement.”
Paul Young, Chief Executive Officer of Kitwave, commented:
“On behalf of the Directors, we are delighted to announce that Ben Maxted will become Chief Executive Officer following my retirement at the Company’s AGM in March 2024. As Chief Operating Officer, Ben has demonstrated excellent commercial and operational expertise and these skills will continue to be invaluable in his new role and in delivering the next phase of our growth strategy.
“The Board continues to remain committed to delivering value to our shareholders. I believe that Kitwave will continue to go from strength to strength and post my departure, I look forward to being a long-term shareholder in the Company.”
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