The Kitwave Group has delivered a positive trading update to the London Stock Exchange, with the board confirming a strong performance across all divisions and anticipated that the results for the full financial year will be slightly ahead of market expectations.
Due to the seasonality of the business, the statement claims that as in previous periods, there is a heavier weighting towards trading in the second half of the year, with the board also remaining conscious of the wider macroeconomic environment including inflationary headwinds but believing that it is well-placed to mitigate these risks.
Read more: Acquisitions and strong performance lead to huge revenue increase at Kitwave
The group’s revenues recently rose by 32% to £503.1m and gross profit margin increased to 20% for the twelve months ending 31 October, with the company putting this down to acquisitions and strong business performance.
It acquired M.J. Baker Foodservice in February 2022 and recently completed the purchase of WestCountry Food Holdings for £29m in December.
Paul Young, chief executive of Kitwave, commented: “I am pleased to report on the progress made by the Group in the six months ending 30 April 2023. Following a strong first half performance, and with the second half of the year typically driving increased trading, we expect full year results will be slightly ahead of market expectations.
“With the considerable opportunities still available, both in the form of organic developments and through strategic, complementary acquisitions in a largely fragmented wholesale market, we have an excellent platform for growth. We look forward to continuing to deliver value to the Group and its shareholders and updating the market on our continued progress.”
