Kitwave Group plc (AIM: KITW), the delivered wholesale business, today announces a pre-close trading update for the year ended 31 October 2022.
The strong H1 performance continued for the remainder of the financial year. The Board, therefore, expects the results for the full financial year to be in line with the upgraded market expectations referred to in the interim results of the Group, published on 5 July 2022.
During the year, the Group continued to execute its strategy to grow the business both organically and by acquisition. In this regard, the Group was pleased to announce the purchase of the entire share capital of M. J. Baker Foodservice Limited (“M. J. Baker”) in February 2022. This business has been successfully integrated into the Group’s foodservice division and is trading in line with the Board’s expectations.
The Group was also pleased to open its new distribution centre for HB Clark in Wakefield during March 2022. The new site has brought considerable benefits to the Group’s on-trade operations through synergies and operational efficiencies.
Investment in the business also targeted improving the sales journey for customers. During the financial year, the Group launched a web platform enabling customers to more easily order products from across each of its divisions. The platform has returned highly encouraging results, both in terms of order numbers and sizes; with customer feedback being overwhelmingly positive.
The Board remains conscious of the wider, macroeconomic setting in which the Group is currently operating. Increases in interest rates and inflationary pressures, particularly labour rates and fuel prices, will continue to impact operating costs. However, as previously explained, the Group has taken prudent measures to mitigate these risks and will continue to recover these costs, wherever possible.
Paul Young, Chief Executive Officer of Kitwave, commented:
“I am pleased to report another strong financial and operational year for the Group. In a challenging environment, Kitwave’s strong market performance is a testament to our proven strategy and our resilience to external market pressures.
“As expected, M. J. Baker has been an excellent addition to the Group’s foodservice division, with its performance since its integration validating our strategy of seeking to identify acquisition opportunities that help to create strong synergies within the Group. The investment into the new Wakefield site and the launch of our web platform for customers indicate how we are constantly streamlining and improving our processes to remain at the forefront of innovation in the delivered-wholesale industry.
“As outlined earlier in the year, the strong H1 performance enabled us to improve our financial expectations for the full year. A further robust H2 has ensured that we expect to meet these targets, positioning the Group well going forward, despite ongoing external pressures. As we enter the new financial year, this momentum continues and the outlook for the Group remains positive.
“With considerable growth opportunities still available, both in the form of organic developments and through strategic, complementary acquisitions, we look forward to updating the market further on our continued progress.”
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