“The company is very well placed in the current inflationary environment, given that the majority of business is on cost-plus contracts. Hilton Foods is the third food company making a statement on the day, with some commentary usually provided ahead of its annual shareholder meeting. The outlook will be important as sales will need to be strong to offset cost increases. Sales from Greencore are expected to have improved in the second quarter and new business wins, with underlying profits of £15mln forecast compared to breakeven last year and £38mln in 2020. One of Cranswick’s clients is Greencore Group PLC (LSE:GNC), which supplies a wide variety of prepared foods to the big supermarkets, including chicken sandwiches. It was confirmed by the Food Standards Agency that a routine internal inspection identified the presence of salmonella in some cooked chicken products prepared at its poultry facility in Hull, with the FTSE 250-listed company liaising with agency and closing the factory until investigations are complete.īesides what is expected to be a strong performance last year, investors will be interested in what management has to say about the investigation and the sharp increase in the cost of pigs and chickens over the past two months, alongside the cost of living crisis that is sure to hit demand. Meat packer Cranswick PLC (LSE:CWK)’s shares are down 13% over the past month after Aldi, Pret a Manger, Tesco and Sainsbury, Waitrose and other retailers recalled sandwiches and other food-to-go products containing chicken from the company due to concerns about salmonella contamination. “Whilst disappointing in the short term,” broker Peel Hunt said the demand backdrop “remains undeniably positive”, including discussions around new and incremental orders across respiratory and helmet products, as well as previously announced cost reductions. On the one hand, revenues were said to be on target, with a step-change in demand in the wake of the Ukraine war, but on the other, the high costs in the helmet business meant profitability had taken some flak. On Monday, Avon Protection PLC (LSE:AVON), the maker of military helmets and respirators, marches into the City from its Wilshire base with first-half numbers that follow a mixed trading update. ![]() There are also the last macroeconomic nuggets of the month, with flash PMI surveys and a closely watched Federal Reserve update. ![]() Utilities, a popular choice with investors during times of market stress, might be in a happier place, with power company SSE along with water companies Severn Trent and United Utilities - though reports of a criminal probe into water pollution could make some uncomfortable.Įlsewhere food and holidays are also themes, with meat producers Cranswick and Hilton, along with beach tours specialist On The Beach and airport cafe operator SSP. As the latest rock-bottom consumer confidence data shows it's a tough time for retailers, who will be a dominant presence in the coming week, including Kingfisher, M&S and Pets and Home.
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