2 May
2024
Kitwave Group
plc
("Kitwave", the "Group" or the "Company")
Trading Update
Kitwave Group plc (AIM: KITW), the
delivered wholesale business, today announces a pre-close trading
update for the six-month period ended 30 April 2024 (the
"Period').
The Board is pleased to report that
the Group continues to trade in line with current market
expectations for the full year ending 31 October 2024. This
performance will reflect both continued organic growth and the
benefit from acquisitions made over the past 18
months.
Operating profit performance during
the Period is expected to be slightly behind the prior year. This
reflects lower levels of demand in the hospitality customer base of
the higher margin Foodservice division, due to a historically high
and sustained period of wet weather over recent months. The Group
has also increased investment in its infrastructure ahead of the
revenue generating opportunities associated from these investments.
Some of the benefits of these investments, in addition to the
H2 inclusion of trade from the recent acquisition of Total
Foodservice, will further increase this year's weighting of trading
toward the second half of the year.
During the Period, the Group
completed two acquisitions in its Foodservice division. In November
2023, it acquired Wilds of Oldham, a composite, family-run
drinks wholesaler supplying the on-and-off trade based in Oldham,
Manchester, and in March 2024, the Group acquired Total Foodservice
Solutions, a leading independent food wholesaler in the North of
England. The integration of both businesses into the Group is going
well.
Overall, the Board remains confident
in the outlook of the Company.
Ben
Maxted, Chief Executive Officer of Kitwave,
commented:
"I am pleased to report that the
Group has continued to make progress towards its operational and
financial targets and that we remain confident of achieving a
positive outcome for the full-year results.
"The Group has an excellent platform
for growth in the form of organic developments and incorporating
the full benefits from its strategic acquisitions. The most recent
acquisitions demonstrate that we continue to capitalise on the
opportunities available to us in a fragmented delivered wholesale
market.
"Kitwave is
well positioned to continue delivering value to its customers and
shareholders and we look forward to updating the market on further
progress in due course."
-
Ends-
For
further information please contact:
Kitwave Group plc
Ben Maxted, Chief Executive
Officer
David Brind, Chief Financial
Officer
www.kitwave.co.uk
|
Tel: +44 (0) 191 259 2277
|
Canaccord Genuity Limited
(Nominated Adviser and Sole Broker)
Bobbie Hilliam
Alex Orr
|
Tel: +44 (0) 20 7523 8150
|
Yellow Jersey PR
(Financial media and PR)
Sarah Hollins
Shivantha Thambirajah
Bessie Elliot
|
Tel: +44 (0) 20 3004 9512
|
Company Overview
Founded in 1987, following the acquisition of a single-site
confectionery wholesale business based in North Shields, United
Kingdom, Kitwave is a delivered wholesale business, specialising in
selling and delivering impulse products, frozen, chilled and fresh
foods, alcohol, groceries and tobacco to approximately 42,000,
mainly independent, customers.
With a network of 32 depots, Kitwave
is able to support delivery throughout the UK to a diverse customer
base, which includes independent convenience retailers, leisure
outlets, vending machine operators, foodservice providers and other
wholesalers, as well as leading national retailers.
The Group's growth to date has been
achieved both organically and through a strategy of acquiring
smaller, predominantly family-owned, complementary businesses in
the fragmented UK grocery and foodservice wholesale
market.
Kitwave Group plc was admitted to
trading on AIM of the London Stock Exchange in May 2021.
For further information, please
visit www.kitwave.co.uk.