CRAN­SWICK (CWK) £33.04

Gain to date: 12.7% Orig­i­nal en­try point: Buy at £29.32, 8 Feb 2018

Shares - - GREAT IDEAS UPDATES -

OUR BULLISH CALL on fresh pork, sausage and cooked poul­try pro­ces­sor Cran­swick (CWK) re­mains 12.7% in the money, al­though the shares have re­cently fallen back from their £34.60 June peak.

Fears over the po­ten­tial im­pact of re­tail sec­tor con­sol­i­da­tion on sup­pli­ers, and on the meat in­dus­try of a re­cent CO2 short­age, may be weigh­ing on sen­ti­ment.

Cran­swick’s first quar­ter up­date (30 Jul) also re­vealed a slow­down in sales growth to 3.2% amid mod­est de­fla­tion and against a barn­storm­ing com­par­a­tive.

En­cour­ag­ingly how­ever, the high qual­ity food pro­ducer flagged pos­i­tive con­tri­bu­tions from each prod­uct cat­e­gory, said to­tal ex­port rev­enues were mod­estly ahead year-on-year and re­as­sur­ingly left full year guid­ance un­changed.

Con­tin­u­ing to in­vest in its as­set base, Cran­swick at­trac­tions also in­clude an un­bro­ken div­i­dend growth track record stretch­ing back to 1990. Shore Cap­i­tal fore­casts pre-tax profit and div­i­dend im­prove­ments to £95.3m (2018: £92.4m) and 55.7p (2018: 53.7p) re­spec­tively for the year to next March.

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