Trading UpdateSource: RNS
04 May 2022
Kitwave Group plc
("Kitwave", the "Group" or the "Company")
Kitwave Group plc (AIM: KITW), the delivered wholesale business, today announces a pre-close trading update for the six-month period ended 30 April 2022.
The Group experienced a strong first half financial performance with all divisions of the business now trading at pre-pandemic levels or higher. Following this performance, the Board now anticipates the Group's results for the full financial year to be slightly ahead of market expectations.
Due to the seasonality of the business, as in historical periods, there is a heavier weighting towards trading in the second half of the year.
As for many businesses, the final full year results of the Group will be influenced by external pressures and uncertainties from cost of living pressures impacting end consumers' disposable income. The business will also continue to face higher operating costs, however the Board is confident that these will be recovered.
The Board is pleased to confirm that the integration of the M.J. Baker Foodservice Limited, which was acquired in February 2022, into the Group has gone to plan and the business is performing in line with internal expectations.
Paul Young, Chief Executive Officer of Kitwave, commented:
"I am pleased to report on the progress made by the Group in the six months ending 30 April 2022. Following an encouraging first half performance, and with the second half of the year typically driving increased trading, we expect full year results to be slightly ahead of market expectations.
"During the period, we were delighted to announce Kitwave's first acquisition since its admission to AIM in May 2021. The acquisition of M.J. Baker enables a significant expansion of the Group's activities into south-west England and complements the Group's existing Foodservice division. The integration of the business into the Group is going as hoped and the business is operating in line with internal expectations.
"We look forward to providing updates to the market in due course."
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For further information please contact:
Kitwave Group plc
Paul Young, Chief Executive Officer
David Brind, Chief Financial Officer
Tel: +44 (0) 191 259 2277
Canaccord Genuity Limited
Alex Aylen - Sales
Tel: +44 (0) 20 7523 8150
Yellow Jersey PR
Tel: +44 (0) 20 3004 9512
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 and chilled foods, alcohol, groceries and tobacco to approximately 39,000, mainly independent, customers.
With a network of 27 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 (AIM: KITW) was admitted to trading on AIM of the London Stock Exchange on 24 May 2021.
For further information, please visit www.kitwave.co.uk.