Kitwave Group plc (AIM: KITW), the delivered wholesale business, is pleased to announce its final results for the twelve months ended 31 October 2021.
During the twelve months being reported, the Group traded in line with the Board’s expectations. The results were impacted by COVID-19 lockdown restrictions and closures within the leisure and hospitality sectors. Since April 2021, trading has returned close to pre-pandemic levels and the Directors are pleased to confirm the Group is currently trading slightly ahead of market expectations.
Investors should note that the below comparative prior period was for the 18 months to 31 October 2020.
Financial summary
- Revenues of £380.7 million (FP20: £592.02 million)
- Gross profit margin maintained at 18% during the year (FP20: 18%)
- Adjusted operating profit of £7.1 million (FP20: £16.5 million)
- Profit before tax increased by 63% to £2.1 million (FP20: £1.3 million)
- £7.9 million net cash generated from operations (FP20: £35.9 million)*
- Pre-tax operational cash conversion of 85% (FP20: 151%)*
* For more information on alternative performance measures please see the glossary at the end of the announcement.
The Board has declared that it is recommending a final dividend of 4.5 pence per ordinary share, subject to approval at the Annual General Meeting to be held on 25 March 2022, which will, if approved, result in a total dividend for the year of 6.75 pence per ordinary share.
Admission to AIM
- Significantly over-subscribed Placing and Admission to AIM on 24 May 2021, raising gross proceeds of £64.0 million for the Company and £17.6 million for the Selling Shareholders.
- Gross proceeds for the Company to be used to support the Group’s successful buy-and-build strategy, enhance the profile of the Group and its brands, improve Kitwave’s position with key suppliers, strengthen the Group’s balance sheet, and provide the Group with greater ability to incentivise and retain key employees going forward.
- On Admission, Stephen (“Steve”) Smith, Independent Non-Executive Chairman, and Gerard Murray, Independent Non-Executive Director, were appointed to the Board.
Operational highlights
- The Group opened a new 70,000 sq. ft distribution centre in Luton as a replacement for the previous site at Luton airport. The centre was delivered on time and on budget and specifically commissioned to cater for Frozen & Chilled product operations. The ability to store in excess of 5,000 pallets in highly efficient cold store conditions will ensure that the Group is well placed to meet future growth expectations and peak summer demands of Kitwave’s independent customers. This upgraded facility replaced the previous Luton distribution centre.
- Work is progressing on a new foodservice warehouse in Wakefield, expected to be opened in March 2022. This will replace the existing inherited site in Wakefield that is no longer fit for purpose.
Post-period end
- Appointment of Ben Maxted, Group Operations Director and Head of the Frozen & Chilled division, to the Board as Chief Operating Officer.
- Acquisition of the entire issued share capital of M.J. Baker Foodservice Limited, the South West’s leading independent foodservice supplier, for a gross consideration of £24.5 million paid in cash, funded from the existing banking facilities available to the Group.
Paul Young, Chief Executive Officer of Kitwave, commented:
“It gives me great pleasure reporting on the first 12-month period since the Company’s listing on AIM in May 2021.
“While this year has been particularly challenging for our independent customers, who have been forced to close or operate in a reduced capacity for sustained periods of time as a result of COVID-19 restrictions, it is clear that we are nearing a return to some form of normality. The majority of our customers have successfully guided themselves through the perils that the pandemic brought upon us and, as a result, trading, which was heavily impacted in the first six months of the year, has returned to pre-pandemic levels over recent months.
“The division least impacted by COVID-19 restrictions was our Frozen & Chilled division which remained extremely resilient and operated close to pre-pandemic levels throughout the period. Each of the Group’s Ambient, Frozen & Chilled and Foodservice divisions, however, experienced some degree of disruption during the period.
“I would like to take this opportunity to thank all our colleagues, as it is due to their exceptional commitment and dedication that we have been able to continue operating and providing a service to our customers throughout the year.
“In line with our buy-and-build strategy, we were delighted to announce the acquisition of M.J. Baker post-period end. The Board believes that the acquisition represents an excellent opportunity to further develop the Group’s reach into South West England and Kitwave’s foodservice offering.
“With the worst of the adverse effects brought about by COVID-19 now behind us, and barring any further lockdowns, the outlook for Kitwave is a positive one. The Board continues to focus on capitalising upon the UK’s fragmented grocery and foodservice wholesale market and generating value for the Group and its shareholders through operational efficiencies, organic growth and further acquisitions. The current year has started well and we look forward to providing further updates on our progress in due course.”Full announcement below:
https://www.londonstockexchange.com/news-article/KITW/final-results/15344797
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