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WHERE GREAT FOOD
COMES FROM
Cranswick plc Annual Report & Accounts
53 weeks ended 30 March 2024
ABOUT US
Cranswick is a leading UK food producer with revenue of almost
£2.6billion.Weproduce and supply premium food to UK grocery retailers,
thefoodservicesector, and other UK and global food producers.
Producing great food is not just about taste, but about understanding
andrespecting where food comes from, and appreciating the contribution
fromeachcomplementary stage of our farm-to-fork journey.
We continue to invest at pace in our rapidly growing farming operations and
acrossour wider business. Our farm-to-fork model providesend-to-end visibility
and control of our business and enables ustoaddvalue atevery stage.
WHERE GREAT FOOD
COMES FROM
ABOUT US
CONTENTS
STRATEGIC REPORT
2 Highlights
4 What we do
6 Our Business Model
10 Chairman’s Statement
12 Chief Executive’s Review
15 Market and Consumer Trends
18 Our Strategy
24 Key Performance Indicators
26 Operating and Financial Review
30 Our Sustainability Strategy
39 TCFD Disclosures
44 SASB Disclosure
47 Section 172(1) Statement
51 Our Stakeholders
65 Effective Risk Management
68 Principal Risks and Uncertainties
73 Viability Statement
74 Non-Financial and Sustainability
InformationStatement
CORPORATE GOVERNANCE
76 Chairman’s Overview
78 Board of Directors
80 How we are Governed
82 Stakeholder Engagement
84 Board Activities
89 Governance Framework
91 Board Effectiveness
92 Board Leadership and Purpose
93 Compliance Statement
94 ESG Committee
96 The Audit Committee
101 The Nomination Committee
105 The Remuneration Committee
112 Remuneration Policy
122 Annual Report on Directors’ Remuneration
132 Directors’ Report
137 Statement of Directors’ Responsibilities
FINANCIAL STATEMENTS
139 Independent Auditors’ Report
146 Group Income Statement
147 Group Statement of Comprehensive Income
148 Group Balance Sheet
149 Group Statement of Cash Flows
150 Group Statement of Changes in Equity
151 Notes to the Accounts
186 Company Balance Sheet
187 Company Statement of Changes in Equity
188 Notes to the Company Financial Statements
SHAREHOLDER INFORMATION
197 Stakeholder Information Five Year Statement
197 Financial Calendar
198 Shareholder Analysis
198 Share Price Movement
199 Advisers
OUR PURPOSE IS TO FEED THE
NATION WITH AUTHENTICALLY MADE,
SUSTAINABLY PRODUCED FOOD
Cranswick plc Annual Report & Accounts 2024
1
A year of strong financial and strategic progress
FINANCIAL
Revenue
£ 2, 599. 3m
+11.9 per cent
(FY23: £2,323.0m)
Free cash conversion
142 . 3%
(FY23: 92.7%)
Profit before tax
£158. 4 m
+13.5 per cent
(FY23: £139.5m)
ROCE
1 8 . 5 %
(FY23: 15.8%)
Earnings per share
210. 4p
+1.0 per cent
(FY23: 208.3p)
Water intensity
-0.7%
(FY23: +2.8%)
* References to like-for-like throughout the Annual Report and Accounts exclude the impact of current year acquisitions and the contribution from prior year acquisitions prior to the anniversary
oftheir purchase.
† Adjusted and like-for-like references throughout the Annual Report and Accounts refer to non-IFRS measures or Alternative Performance Measures (APMs). Definitions and reconciliations
oftheAPMstoIFRS measures are provided in Note 30.
HIGHLIGHTS
2023
140.1
2022
136.9
2024
176.6
Adjusted profit before tax†
+26
.1 per cent
£
176.6m
2023 2,323.0
2022 2,008.5
2024 2,591.7
Like-for-like revenue*
+
11.6 per cent
£
2,591.7m
Adjusted earnings per share†
+
15.6% per cent
2
42.8p
2023
210.0
2022
205.4
2024
242.8
2023 79.4
2022 75.6
2024 90.0
Dividend per share
+
13.4 per cent
9
0.0p
2023
149.2
2022
158.4
2024
223.4
Free cash flow
†
+
49.7 per cent
£
223.4m
2023101.4
2022106.0
202499.4
Net debt
-2.0
per cent
£
99.4m
Cranswick plc Annual Report & Accounts 2024
2
STRATEGIC REPORT
STRATEGIC
Acquisition of Froch Foods is aligned to our continuous commitment
toinvestinand expand current categories, add additional capacity
anddriveefficiency improvements.
Acquisition of Elsham Linc feed mill and indoor pigfarming business
lifts our self-sufficiency to over 50 per cent aswe continue
to build our capability in agricultural operations.
£10million investment inCranswickPetProducts
todoubledry dog foodproduction capacity.
£23 million fit-out of new houmous facility at
Worsleyisunderway, to create a state-of-the-art
manufacturing site and facilitate a step
changeinproductioncapacity in the category.
CONSOLIDATE
CONSOLIDATE
DIVERSIFY EXPAND
Cranswick plc Annual Report & Accounts 2024
3
Strategic report
STRATEGIC REPORT
FARMING
Our vertically integrated supply chainis
important in providing traceability, integrity
and sustainability in ourfarm-to-fork model.
Our self-sufficiency in British pigs is now
inexcess of 50 per cent. Our pig and poultry
farming businesses, which include milling,
breeding and growing operations, are
industry leading.
Our dedicated farmers are focused on
developing sustainable farming practices
and leading the way in animal welfare.
>0.8m
Pig herd size
>6.4m
Chicken flock size
STRATEGIC CAPITAL
INVESTMENT
We operate from 23 well-invested
andhighly efficient production facilities
intheUK and we will continue to invest at
pace toensure we serve our customers from
thebest quality asset base the UK industry
canoffer in terms of food safety, technical
compliance and colleague wellbeing.
£91. 4 m
Invested in FY24
OUR PEOPLE
It’s our people who make Cranswick
successful. Their passion, expertise
anddedication helps to differentiate
our offering.
We have experienced and talented
operational management teams supported
by a highly skilled and committed workforce.
Every individual plays a crucial role enabling
us to feed the nation with authentically
made, sustainably produced food.
>14,500
Colleagues
WHAT WE DO
CRANSWICK IS A LEADING,
INNOVATIVE, BRITISH SUPPLIER
OF PREMIUM, FRESH AND
VALUE-ADDED FOOD PRODUCTS
Cranswick was formed by farmers in the early 1970s. Since then we have
grown organically and through targeted acquisitions to become a leading,
innovative, British supplier of premium, fresh and value-added food and pet
products. We are a diversified business with averticallyintegrated supply
chain and a well-established export business.
As the business has grown, our purpose has remained the same – to feed
thenation with authentically made, sustainably produced food.
Cranswick plc Annual Report & Accounts 2024
4
STRATEGIC REPORT
Ballymena
Milton Keynes
London
Eye
Watton
Hull
Lincoln
Retford
Barnsley
Malton
Sherburn-in-Elmet
Worsley
Bury
Leeds
Denbigh
23
well-invested, highly efficient
production facilitiesacrossthe UK
3
milling facilities producing pig and
poultry feed
464
farms supplying pigs and chickens
toour production facilities
Denbigh
Food Service
Watton
Fresh Pork
Eye
Fresh Chicken
Milton Keynes
Cooked Meats
London
Katsouris Brothers
Mediterranean Foods
Ramona’s Kitchen
Agriculture
Feed
production
Pig and poultry
production
Hull
Fresh Pork, Preston
Fresh Pork, Riverside
Gourmet Sausage
Cooked Poultry
Cooked Meats
Gourmet Kitchen
Prepared Poultry
Leeds
Froch Foods
Malton
Gourmet Pastry
Sherburn-in-Elmet
Gourmet Bacon
Barnsley
Cooked Meats
Ballymena
Fresh Pork
Lincoln
Pet Products
Retford
Pet Products
Bury
Continental Foods
Worsley
Mediterranean Foods
Cranswick plc Annual Report & Accounts 2024
5
Strategic report
STRATEGIC REPORT
WHAT WE DO
OUR BUSINESS MODEL
Our vertically integrated business model provides our customers withassurance
overtheintegrity and traceability of the food we produce, and promotes
oursustainabilitystrategy to ensure that waste in our food system is minimised.
WE FARM
We have a thriving farming division made up of seven
businesses: Wayland Farms, Wold Farms, Elsham
Farms and White Rose Farms rear our pigs; Crown
Farms rears our chickens; and Crown Milling and
Elsham Milling produce pig andpoultry feed.
Our dedication to producing the very best pork starts
with our farms. We operate in all areas of pig production,
from breeding through to finishing operations.
We are proud to be the first UK chicken producer
toinvest in the revolutionary ‘NestBorn’ on-farm
hatching system which improves the welfare
ofour birds.
We have our own milling operations in Suffolk
andNorth Lincolnshire, where we mill cereals grown
inthelocal area to feed our chickens and pigs.
Cranswick-Owned British Farms
Contracts with otherUK Farms
Feed milling
WE PRODUCE
WE SUPPLY
We produce a wide range of high quality,
predominantly fresh food, including fresh
andadded-value pork and poultry, gourmet
sausage, bacon and pastry along with cooked
meats andabroad selection of Continental
products. We also producepet food with
afocuson sourcing British ingredients.
We focus on premium products, technical integrity
and continually improving our standards of animal
welfare. Through our fourprimary processing and
19added-value facilities we produce great-tasting
products to the highest standards of food safety
whilemaintaining strong relationships with
our customers.
Retail Wholesale
Food Service Export
We supply most of the UK grocery retailers and have a strong presence in the wholesale
andfood service sectors, as well as a substantial export business.
Other High Quality Ingredients from
Sustainable and Trusted Suppliers
Cranswick Primary Processing
Added-Value Processing
UK Retail
Food Service
Manufacturing
Export
77%
4%
14%
5%
Revenue by Market
% of Group revenue
Cranswick plc Annual Report & Accounts 2024
6
STRATEGIC REPORT
OUR GUIDING PRINCIPLES
OUR STRATEGIC ENABLERS
ICONIC &
RELEVANT PRODUCTS
Relevant
Differentiated
Premium
CUSTOMER
RELATIONSHIPS
Reputation
Partnership
Long-term
LEAN
PROCESSING
Efficiency
Capability
Sustainability
SUPPLY CHAIN
Vertical integration
Differentiation
Long-term security
QUALITY
Delight the customer
Lead on premium
Technical excellence
VALUE
Vertical integration
Utilisation
Efficiency
INNOVATION
Product
Packaging
Process
PEOPLE
Attract
Engage
Empower
Our guiding principles set out the values that unite and inspire our people to deliver our purpose – to feed the nation with authentically made,
sustainably produced food. We built our business on an unwavering commitment to quality, efficiency and innovation which is embedded
inour culture. This is delivered by our hard-working, talented teams who continually drive the business forward.
PUTTING FUTURE
FIRST EVERY DAY
OUR DIFFERENTIATORS
AGRICULTURAL
HERITAGE
Cranswick was formed by a group
of farmers and theseagricultural
roots underpin our commitment
to create great food with integrity.
We continue toinvest in our farming
operations and focus onenhancing
animal welfare standards while
improving sustainability throughout
the supply chain.
ENTREPRENEURIAL
SPIRIT
With the entrepreneurial spirit that
is rooted within our business, we are
constantly looking to the future and
exploring newopportunities
forgrowth. This spirit has fuelled
our growth for almost 50 years.
UPSCALING
ARTISAN
We are famous for upscaling our
artisan products. We work with
experts to bring fantastic product
ranges to market through modern,
efficient facilities which set us apart
from our competitors.
FOCUS ON
FLAVOUR
We produce great tasting food
that is relevant fortheconsumer
of today. Focusing on flavour
is embedded in our culture
acrossthe business.
Cranswick plc Annual Report & Accounts 2024
7
Strategic report
STRATEGIC REPORT
OUR PRODUCTS
Fresh Pork
We offer a comprehensive selection of fresh pork products,
encompassing everything from joints and chops to ribs, along with
seasonal ranges featuring barbecue products. Our commitment
toinnovation ensures that our offering remains relevant, catering
tothechanging needs of our consumers. Our Fresh Pork sites
playa crucial role in supplying pork cuts to other Cranswick facilities,
strengthening our vertically integrated supply chain while creating
further added-value products. Fresh Pork incorporates a large export
business which supplies British Pork into a number of other markets.
Gourmet Products
Our long-term relationships with passionate Cranswick Food Heroes
have been instrumental in developing our Gourmet Products ranges
whichfocus on delivering authentic, premium products from efficient,
well-invested sites. This approach, which we call ‘upscaling artisan’,
focuses on elevating traditional methods to meet contemporary
standards. Ranges include gourmet sausages developed with Martin
Heap; traditional dry-cured, air-dried bacon and gammon created
through our partnership with Chris Battle; and exceptional pastry
products baked at our Yorkshire Baker site in Malton and perfected
with Gill Ridgard.
Convenience
Convenience incorporates our three Cooked Meats sites and our
Continental Products businesses. Our product range includes sliced
cooked meats produced for retailers and food-to-go operators and
a range of ‘slow cook’ and ‘sous vide’ prepared meals for consumers.
Continental Products includes an expanding range of Mediterranean-
inspired products, including charcuterie, olives and antipasti, dips and
otherMediterranean snacks. We work in partnership with like-minded
producer partners across the continent; from small scale artisanal,
traditional specialists to larger scale producers who can satisfy
thegrowing demand and appetite for continental meats in the UK.
Poultry
We have created a unique supply chain in the UK market through the
Cranswick Poultry businesses. Our Fresh Chicken business produces
whole and portioned poultry products as well as seasonal, flavoured
ranges. Our Fresh Chicken site also supplies other facilities within the
Group to create further added-value products. Our Cooked Poultry
operation supplies premium products to retail and food-to-go customers,
and our Prepared Poultry site offers a range of premium, prepared
chicken products to Retail and Quick Service Restaurant customers.
Pet Products
Established over 50 years ago, Lincolnshire based Cranswick Pet
Products was acquired by Cranswick in January 2022. It manufactures
arange of dried dog food for a number of established retail brands
as well as its own Vitalin and Alpha brands. Our own brands are focused
on sustainably sourced and responsibly reared British ingredients,
differentiating themselves with their commitment to quality and origin.
WHAT WE DO
OUR BUSINESS MODEL CONTINUED
Cranswick plc Annual Report & Accounts 2024
8
STRATEGIC REPORT
CREATING VALUE FOR OUR STAKEHOLDERS
Our people
By providing competitive remuneration, safe working conditions,
as well as training, development and mentoring opportunities.
>78,000
training courses completed by Cranswick colleagues in the year
Read more on pages 51–54
Customers and consumers
By continuously delivering high quality,
authentic and innovative products.
4.9%
sales from new products as a percentage of total revenue
Read more on pages 55–56
Producers and suppliers
By providing fair trading terms, and ensuring supplier
integrityandESG compliance.
687
supplier audits completed in the year
Read more on pages 57–59
Shareholders
By delivering strong dividend growth.
34
years of consecutive dividend growth
Read more on page 64
Communities
By providing support to our local communities, led by a strong
focusonfood redistribution, education and skills.
>1. 6 m
meals donated to charities this year
Read more on pages 62–63
NGOs
By working with NGOs we can help tosetpoliciesandimprove
industry standards.
Cranswick Carbon Inset Scheme
strengthens trust and transparency surroundingcarboninsetting
Read more on pages 60–61
Cranswick plc Annual Report & Accounts 2024
9
Strategic report
STRATEGIC REPORT
CHAIRMAN’S STATEMENT
WE HAVE MADE STRONG
STRATEGIC AND
COMMERCIAL PROGRESS
INTHE PAST YEAR WHICH
HAS STRENGTHENED THE
BASE FROM WHICH TO
DELIVER THE ONGOING
PLANS OF THE GROUP.
Tim J Smith CBE
Chairman
I am pleased to report on the
encouraging strategic progress
achieved this year. Continued
growth and success have been
achieved through exceptional
customer service and the highest
product quality, complemented
bythe value and versatility
ofourproduct categories.
Our management team’s expertise and
experience has skilfully transformed industry
challenges into valuable opportunities.
On behalf of the Board, I would like to express
our gratitude to all Cranswick colleagues for
their exceptional resourcefulness, innovative
ideas and steadfast commitment which resulted
in the record performance for the business.
I am very pleased with the progress we have
made towards our strategic priorities this year,
supported by significant investments in
targeted capital expenditure and carefully
chosen acquisitions. Our investment programme
has continued at pace with a relentless focus on
automation, adding scale and delivering further
quality, capacity and efficiency improvements.
The persistent effects arising from broad-based
cost inflation have been proactively addressed
through effective and timely cost management
and recovery measures throughout the period.
By sustaining our partnerships with customers,
we provided cost-effective solutions across our
product ranges, concurrently enhancing
operational efficiencies and driving
automation projects.
This year’s success has also been achieved
inthe face of considerable ongoing challenges
inthe UK food and farming industry, with labour
shortages, financial pressures and political
uncertainty all proving to be major concerns
formany independent producers. It is now more
crucial than ever for the UK to have a thriving
and resilient food and farming sector, especially
given the challenges our food systemiscurrently
facing. The Government has identified that
ournational security depends on addressing
asmall number of critical risks which include
food security. It seems imperative to me that
the Government should better concentrate
itsresources on improving our resilience
tothose risks.
We have further developed and grown our
farming and milling operations which has
strengthened our vertical integration and
enhanced our business resilience.
The expansion of our farming capability helps
us to ensure full farm-to-fork traceability as the
acquisition of Elsham Linc indoor pig farming
business significantly increases the size of our
Red Tractor-assured indoor pig herd and adds
additional feed milling capability, increasing our
self-sufficiency in UK pigs to over 50 per cent.
Looking forward, we anticipate further sector
consolidation, and Cranswick is committed to
expanding its farming capability to ensure the
continuity of supply, sustainability leadership,
and the highest animal welfare standards.
Results
Total revenue for the 53 weeks to 30 March
2024 was £2,599.3 million, showing an
increaseof 11.9 per cent from the previous
year’s reported figure of £2,323.0 million.
Adjusting for contributions of the acquisitions
made in the previous and current financial
years, revenue grew by 11.6 per cent on
alike-for-like basis.
Adjusted profit before tax for the period
at£176.6 million was 26.1 per cent higher
thanthe£140.1 million reported last year.
Adjusted earnings per share on the same
basiswas up 15.6 per cent at 242.8 pence
from210.0pence last year.
Cash flow and financial position
At the end of the year, net debt was
£99.4 million, down from £101.4 million
intheprevious year. Net debt excluding
IFRS16lease liabilities was also reduced
tojust£0.1 million compared to £20.2 million
previously. The Group has access to an
unsecured, sustainability linked £250 million
facility which runs through to November 2026.
Cranswick plc Annual Report & Accounts 2024
10
STRATEGIC REPORT
Dividend
The Board is proposing a final dividend of 67.3
pence per share, 14.5 per cent higher than the
58.8 pence paid last year. Together with the
interim dividend of 22.7 pence per share, this
equates to a total dividend for the year of 90.0
pence per share, an increase of 13.4 per cent
onlast year, extending the period of consecutive
years of dividend growth to 34 years.
The final dividend, if approved by Shareholders,
will be paid on 30 August 2024 to Shareholders
on the register at the close of business on 19 July
2024. Shares will go ex-dividend on
18 July 2024.
Corporate governance
The Board embraces the UK Corporate
Governance Code as part of its culture, as we
believe this underpins our long-term success.
As a Board, we regularly appraise our
governance framework and processes to ensure
they remain effective and fit for purpose.
The Board is supportive of the changes made
inthe updated UK Corporate Governance Code
(‘the Code’). Although we are not obligated
toadopt the new provisions until 2026, we are
working to implement them at the earliest
opportunity. You can read more about our
compliance with the Code in our Corporate
Governance section on page 93.
Board changes
During the year, we have continued to evolve
the Board to ensure it provides the appropriate
skills and experience to support and challenge
Cranswick’s executive team.
With effect from 23 May 2023, Yetunde
Hofmann was appointed as the Company’s
designated Non-Executive Director for
engagement with the workforce. This is an
important position that I had the honour
ofundertaking before my appointment as
Chairman. It was a pleasure to welcome Yetunde
to the role, and her extensive experience brings
a valuable perspective toour team.
Liz Barber succeeded Mark Reckitt as the
Company’s Senior Independent Director
following his retirement as a Non-Executive
Director of the Company on 24 July 2023.
As of this date, the Board appointed Alan
Williams to take on Liz’s previous role as
Chairof the Audit Committee.
Pam Powell retired as an Independent
Non-Executive Director with effect from
1 September 2023 and her position as
Chairofthe Remuneration Committee is
succeeded on an interim basis by Liz Barber.
On 21 March 2024 we announced the
appointment of Rachel Howarth as a Non-
Executive Director with effect from 30 April
2024. Rachel is the Group People Officer at
Whitbread plc. Rachel was previously the
Group HR Director with SSP Group plc, before
which she spent sixteen years with Tesco plc.
On appointment, Rachel became a member
ofthe Remuneration, Nomination and ESG
committees. It is intended that Rachel will
succeed Liz Barber as Chair of the
Remuneration Committee in August, following
conclusion of the scheduled review of the
Company’s Directors’ Remuneration Policy.
On behalf of the Board, I welcome Rachel
andthank Mark and Pam for their positive
contribution to Cranswick’s successful
development over their respective tenures.
Culture
The success of the Group is deeply rooted
inthededication and excellence of our people,
andwe take pride in our strong and inclusive
culture. We have consistently invested in our
team, withan emphasis on training, development
andemployee engagement to cultivate an
environment where everyone can thrive.
More than ever, we are driving the social
aspects of our ESG efforts, focusing on our
ability to meet the needs of our customers,
suppliers, local communities, and of course,
ouremployees. Diversity and inclusion is key
toour progress as an organisation, and it
underlines the vital role Yetunde Hofmann plays
as our designated Director for engagement
with the workforce, ensuring that the views
ofour people are heard by the Board.
Sustainability
We continue to move forward at pace with
oursustainability programme, and this year
wehave relaunched our ‘Second Nature’
sustainability strategy. We aimed to make
itmore directly relatable, accessible and
achievable, ensuring it’s easier for individuals
totake meaningful actions, whilst embracing
both the environmental and social aspects
ofsustainability. You can read more about our
sustainability strategy in our Sustainability
section on pages 30 to 37.
I was also delighted to see that Cranswick was
first place in the second edition of ‘The Better
Food Index’, which ranks the 30 largest food
and drinks companies in the UK on their actions
and commitments towards a fair and sustainable
food system.
Outlook
We have made strong strategic and commercial
progress in the past year which has strengthened
the base from which to deliver the ongoing plans
of the Group. The start tothe current year has
been in line with the Board’s expectations and
the outlook for the current financial year is
unchanged. The strengths of our business, which
include our diverse and long-standing customer
base, breadth and quality of products and
channels, robust financial position and industry-
leading infrastructure will support the further
development of Cranswick over the longer-term.
Tim J Smith CBE
Chairman
21 May 2024
Dividend per share
90.0p
+13 . 4%
Adjusted earnings per share
242.8p
+15 . 6%
34 consecutive years of growth
Dividend per share p
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
2.8
3.3
3.8
4.0
4.1
4.3
4.6
5.1
5.8
6.8
7.5
8.3
10.8
12.0
13.2
14.5
16.5
18.1
19.9
21.7
25.0
27.5
28.5
30.0
32.0
34.0
37.5
44.1
53.7
55.9
60.4
70.0
75.6
79.4
90.0
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STRATEGIC REPORT
CHIEF EXECUTIVE’S REVIEW
SUBSTANTIAL
INVESTMENT
DRIVING ASTRONG
PERFORMANCE.
Adam Couch
Chief Executive
Alongside our colleagues, I would also like to
thank our suppliers and customers, with whom
we continue to work in close partnership. In last
year’s report, I highlighted numerous challenges
impacting the UK farming sector and broader
food supply chains stemming from the Ukraine
war and widespread cost inflation. This year,
weexperienced a more stable environment for
farmers, leading to the recovery of pig prices,
contributing to the achievement of our robust
results. We have increased our self-sufficiency
enabling us to maintain our pig volumes against
a double-digit percentage reduction in the
national herd.
Our successful performance owes a great deal
to the substantial investment we have put into
enhancing our farming infrastructure and
expanding our vertical integration. We have
increased the size, scale and quality of our pig
herds through ongoing organic growth and
theacquisitions of new indoor and premium
outdoor pigs. Notably, our acquisition of Elsham
Linc has substantially bolstered our Red Tractor
assured indoor pig herd. This business comprises
18 sites in North Lincolnshire, including a feed
mill, and has 8,000 sows producing in excess
of3,200 finished pigs per week. We also
acquired a second pig herd during 2023 as part
of a wider agreement tolease and operate,
onalong-term basis, afullyintegrated pig and
arable farming enterprise inNorth Yorkshire.
Thanks to these investments, our self-
sufficiency in UK pigs isnow over 50 per cent.
Access to labour remains one of our most
important challenges. To address this,
weexpanded our recruitment programme and
now have more than 650 colleagues from the
Philippines in the business who form a key part
of our workforce. We continue to put forward
the case for the farming and food producer
sector to the UK government and through
various industry bodies. One of the measures
introduced in Spring 2024 was an increase
inthe salary threshold to £38,700, for those
arriving in the UK on Skilled Worker visas.
This figure marks a significant rise from the
previous level of £26,200; a shift that is poised
to considerably limit labour accessibility for our
Group in the foreseeable future. The scarcity
oflabour resources presents a critical challenge,
threatening our ability to consistently deliver
the exceptional service levels our customers
have come to rely on. We continue to press
government for a greater understanding of this
issue and appreciation of the importance
offood security.
Strong performance
We have again delivered record results with
reported revenue growing by 11.9 per cent to
£2,599.3 million and adjusted operating profit
increasing 26.3 per cent to £185.1 million.
We have reduced net debt on a pre IFRS 16
basisfrom £20.2 million in March 2023 to just
£0.1 million, whilst also investing £91.4 million
across our asset base.
We have delivered a strong
financial performance in the year
and made further progress in
delivering our strategy. We grew
revenue by 11.9 per cent and
increased adjusted profit before
tax by 26.1 per cent.
Our ongoing successful
performance is down to the
unwavering passion, commitment,
and professionalism of our teams
across the business. I have said
many times that our people are
our greatest asset and I would like
to extend my gratitude to all of our
colleagues at Cranswick for their
continued dedication and support
which has enabled us to deliver
astrong set of results and make
progress towards our strategic
objectives.
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STRATEGIC REPORT
We saw operating margin strengthen during
theyear, driven by proactive management
andmitigation of cost inflation, as well as
benefitsarising from capital expenditure
andefficiencies achieved in our operations.
In addition, ourreturn on capital employed has
improved by2.6per cent to 18.5 per cent,
reflecting our ability todeploy capital at pace
todrive strong returns. We are proposing
toincrease our full year dividend by a further
13.4 per cent this year, marking our 34
th
year of
consecutive dividend growth.
This strong performance was driven in part
bythe value offered by pork and poultry,
whichprovide customers and UK consumers
with affordable proteins, value for money and
versatility. Following the initial inflation shock
lastyear, we are seeing the recovery in demand,
reflected in a substantial growth in premium
products and across all four core UK food
categories. Our commitment to delivering
exceptional service to our customers is reflected
in our record-breaking Christmas trading results,
continuing the momentum into the last quarter
of the year, with an impressive 98 per cent
accomplishment of customer service levels.
Year-on-year, there was a significant decrease
intotal export sales. Far East exports were
driving this momentum, with lower prices and
lower demand resulting from the slowdown in
China’s food and agricultural sector. Our Norfolk
primary processing facility continues to operate
without an export license. It has been nearly four
years since we voluntarily suspended this license,
and we remain fully committed to resolving
thisissue. We will continue to raise the matter
with DEFRA and other relevant government
departments at every opportunity until the
matter is successfully resolved.
Progress on our strategy
We are putting our strategy into action across
our three strategic pillars – Consolidate, Expand
and Diversify – to deliver growth across all areas
of our business.
We continue to invest to further strengthen our
vertical integration. I have already mentioned the
acquisition of Elsham Linc, which further
diversifies the Group’s pig farming operations
and adds additional feed milling capability.
Our acquisition of Froch Foods complements
our existing bacon and cooked meats production
capability and demonstrates our commitment to
consolidating our presence in these categories,
whilst adding capacity and driving efficiencies.
We are also investing at pace across our three
fresh pork primary processing operations to
increase capacity and drive further operational
efficiencies in our rapidly growing value-added
pork business. This investment programme
includes a £62 million multi-phased
redevelopment of the Hull primary processing
site, which will add substantial capacity, drive
further efficiencies and add onsite cold
storage capability.
We are increasing our presence in growth
markets such as poultry and Mediterranean
foods by investing in new and existing sites.
We are redeveloping our site at Worsley, near
Manchester, which was acquired at the end
ofthe last financial year. The £23 million fit-out
occupies half of the site’s 50,000 square foot
footprint providing substantial additional
houmous manufacturing capacity.
In our cooked and prepared poultry category
weare making a £27 million capital investment
toincrease our cooking and roasting capacity
and enhance our ability to deliver value-add
products. Our ambition to expand our business
in East Anglia by increasing our fresh poultry
operations remains, but we continue to
encounter obstacles primarily arising from the
complexities involved in navigating through
thelengthy and overly complex planning
application process.
The present year marks a transformative period
for Cranswick Pet Products, albeit the progress
has not been as quick as we initially envisaged.
Nonetheless, our ongoing investments into the
business coupled with the strategic long-term
supply agreement with Pets at Home and
marketing efforts position us well for sustained
growth and success in the foreseeable future.
The outlook remains optimistic, both for our
business and the broader market landscape.
Second Nature
Besides our financial performance, we are
alsodedicated to fulfilling our sustainability
objectives and generating long-term value
forall our stakeholders. This year, we have
accomplished several milestones in our journey
to become a more responsible and resilient
business. We recently refreshed our hugely
impactful Second Nature sustainability
strategy, making it more accessible, relevant
and relatable for all our stakeholders. We are
proud of these achievements, but we
acknowledge that there is still more to do.
We will persist in working with our customers,
suppliers, farmers and other partners to drive
positive change.
A people business
Cranswick is very much a people business,
andIbelieve strongly that our colleagues are
our greatest and most valuable asset. We know
that being an employer of choice in a highly
competitive labour market is crucial for
attracting and retaining the best people which
is why we have worked hard to establish
ourselves as a sector leader in pay, working
conditions, health and safety, inclusivity and
employee wellbeing.
This year alone, I was pleased to see that we
have welcomed several more graduates into
ourprogram, taking the total to 97 since 2013,
with30 of these individuals now promoted
intosenior full-time roles. We also have around
150apprentices across the Group, who are
undertaking a range ofapprenticeship
qualifications.
As an organisation, we actively promote and
support diversity and inclusion, and our
Diversity, Equality and Inclusion (DEI)
programme is driven by a dedicated steering
group who are responsible for taking our DEI
goals and aspirations forward. By nurturing and
developing talent through effective succession
planning, we have also been able to maintain
adeep and continually replenished pool of
great people, who have been vital to achieving
the success we have today.
Looking ahead
Over the last 12 months we have strengthened
our asset base, substantially expanded our
farming operations, enhanced market positions
and developed new customer relationships.
We continue to make good progress against
each of our strategic objectives and we are well
placed to continue our successful development
in the current financial year and over the
longer-term.
Adam Couch
Chief Executive
21 May 2024
Revenue
£2, 599. 3m
+11.9 %
Adjusted operating profit
£18 5 .1m
+26.3%
Capex
£91.4m
(FY23: £85.1m)
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STRATEGIC REPORT
MARKET AND CONSUMER TRENDS
What we are seeing
Guaranteeing food security remains a top priority. While the trading
conditions during the year were more favourable with the recovery
inthe UK standard pig price, there have been numerous challenges
encountered by the UK farming sector including the conflict in Ukraine,
labour shortages, and unprecedented inflationary pressures.
These challenges have led to a contraction in the UK pig herd and
aconsequent tightening of pig supply.
What we are doing
We continue to expand our farming capability to ensure full farm-to-
fork traceability and the continuity of supply of British pigs to meet
ourcustomers’ needs. The acquisition of Elsham Linc indoor pig
farming business significantly increases the size of our Red Tractor-
assured indoor pig herd and adds additional feed milling capability.
We also acquired a second premium outdoor pig herd, further
increasing ourself-sufficiency in UK pigs to over 50 per cent.
Cranswick has demonstrated resilience anddetermination inabundance
despiteconsiderable socio-economic and supply chain challenges,
whichcontinuedtoaffectourmarkets this year, enabling us to make further
meaningfulprogressindeliveringourstrategicobjectives.
FOOD CHAIN SECURITY
INCREASING OUR
SELF-SUFFICIENCY
IN LIVESTOCK
What we are seeing
The shortage of labour in the food industry, particularly in skilled positions
such as butchers, continued to put pressure on the business this year.
Addressing these skill and labour shortages remains a priority, highlighting
the need to offer flexible shifts and favourable conditions to ensure
wecanrecruit and retain the best people. We believe it is important
totakeasector-leading position on pay, working conditions, professional
development, health, safety and wellbeing to attract and retain the best
people across the Group.
What we are doing
We continue to expand our apprenticeship and graduate schemes,
while actively engaging with schools and colleges to showcase
therewarding career opportunities we can offer. Weprovide a wide
range of professional development training programmes to ensure
existing and new colleagues can enjoy a fulfilling career. We also
employ around 650 colleagues from the Philippines inbutchery,
farming andrelated roles, who each benefit from integration
andsupport packages. Investment in automation continues to reduce
our reliance on manual labour where possible.
SHORTAGE OF LABOUR
ADDRESSING
THE SKILLS AND
LABOUR GAP
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STRATEGIC REPORT
MARKET AND CONSUMER TRENDS
CONTINUED
What we are seeing
According to the Office for National Statistics, the overall price of
foodand drink rose by 25 per cent between January 2022 and January
2024. While the rate of inflation is slowing, many consumers remain
focused on closely managing their grocery expenses. The demand
foraffordable protein products, such as pork and poultry, continues
togrow offeringconsumers an opportunity to enjoy both quality and
value for money.
What we are doing
Our strategic use of promotions and multi-buy deals are once again
playing a significant role in the market, driving value forconsumers
atall price points. We used our strong partnerships withcustomers
todeliver cost-effective solutions across our productranges, whilst
also enhancing the quality of our offerings. Additionally,our fresh
chicken and retail pork volumes have stayed robust, with prices
stayingconsistently lower compared tobeef and lamb.
COST INFLATION
DRIVING VALUE
FOR CONSUMERS AT
ALL PRICE POINTS
What we are seeing
Consumerconfidence is slowly rebounding with food and drink inflation
decreasing and wages rising. We have seen a general change in
consumer behaviour, supporting volume growth inpremiumcategories
and value-added meal solutions. The shift towards discounters has
slowed this year, asenthusiasm for premium products that are both
affordable andrichinprotein gains momentum.
What we are doing
We have a strong presence across the major UK grocery retailers, and
we work with them to ensure our consumers have access to indulgent
eating experiences at home. This plays to our strengths as we continue
toinnovate across our diverse portfolio of value-added, convenient
meal solutions, allowing consumers to treat themselves at home,
whilestill managing their household spend.
COST OF LIVING
GROWING DEMAND
FOR PREMIUM
PRODUCTS
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STRATEGIC REPORT
What we are seeing
Eating out is becoming more important. Affordable Quick Service
Restaurants (QSRs) and food-to-go outlets continue to perform strongly,
particularly as people have returned back tooffices. Pubs, bars, and coffee
shops are also faring better, and we haveseen the growing popularity of
out-of-home dining experiences and premium restaurants.
What we are doing
We continue to expand our product offerings for pork and chicken,
introducing new product choices that offer a combination of
affordability and a premium dining experience. We have made
substantial investments in our asset base to capitalise on the fast-
growing QSR market, facilitated by the additional contact cooking line
at our Cooked Bacon facility. Successful Cooked Bacon product
launches with leading QSR partners, coupled with substantial growth in
the out-of-home breakfast market, mark key achievements for the year.
What we are seeing
When it comes to home cooking, consumers are looking for fresh, tasty
recipes and convenient meal ideas, whilst also seeking exciting in-home
dining experiences. Sales across our gourmet products and convenience
categories continue to be very strong, with our ‘slow cook’ and ‘sous vide’
added-value product range supporting this growth.
What we are doing
We have prioritised Cranswick’s unique differentiators; focusing
oninnovation, authenticity and flavour, particularly throughour
premium products and charcuterie ranges. Our commitment to
exceptional customer service remained unwavering, even during the
busiest periods such as the record-breaking Christmas trading season.
We delivered exemplary servicelevels, complemented by our
innovative array of festive products, suchas ‘Christmas Dinner
inaBox’and our ‘slow-cook’ turkey offerings.
OUT-OF-HOME EATING
DINERS ARE SEEKING
AN EXPERIENCE
TO SAVOUR
INSPIRING SOLUTIONS
FOCUSING ON
INNOVATION, AUTHENTICITY
ANDFLAVOUR
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STRATEGIC REPORT
1. CONSOLIDATE
OUR CONTINUED
INVESTMENTHAS
SET THESTANDARD
FOR EFFICIENT
PORKPROCESSING.
OUR STRATEGY
By driving the core we seek to maximise sales and returns from our pork-based
operations by growing market share and securing new business wins. We do this by
building trustworthy and long-lasting relationships, delivering consistent, high-quality
products and creating new, relevant opportunities through innovation.
DRIVING THE CORE
Why it’s important
Continuous investment in additional capacity
and efficiency improvements together with the
expertise of our Food Heroes, allows us
toexpand our product range and to supply our
customers with affordable and great tasting
pork-based products.
Our core portfolio consists of fresh pork and
value-added products; a gourmet category
including bacon, sausages and pastry; and
aconvenience range comprising cooked meats
and ‘slow cook’ products. Across our portfolio
we are renowned for delivering premium,
highquality and great tasting food.
Progress
• £33 million* acquisition of Elsham Linc
indoorpig farming business, which further
underlines our commitment to secure
andgrow our British pig farming operation.
• £13 mil lio n* a cqu isit ion of Froch Foo ds
iscomplementary to our existing bacon
andcooked meats production capabilities
and aligned to our continuous commitment
to invest and expand in current categories,
addadditional capacity and drive efficiencies
across the business.
• £9 m illi on exp an sion proje c t at ou r Hu ll
cooked meats facility willdouble our ‘slow
cook’ capacity.
* Refer to Note 13 of the financial statements
forthebreakdownof cash outflow on acquisition.
Future plans
• £62 mil lio n mul ti-p ha sed re devel op ment
ofthe Hull primary processing site
toaddcapacity, drive further efficiency
improvements and add on-site cold storage.
• C ont inu ous d evelo pme nt of i nnovat ive pi g
meat products that support our core offering
to further drive volume growth.
• E xpa nd c ustom er fo cus o n cu rrent food
trends relating to premium and ‘sous vide’
products. This will open up additional market
opportunities for revenue growth.
• Further investment in strengthening vertical
integration and driving Second
Nature initiatives.
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ADDING VALUE
THROUGH INTEGRATION
The development of our pig supply chain is crucial to secure the
required number of pigs for the Group, as both UK and European
herds contract. This investment enables the Group to align the
supply of pork to the food we produce.
The ongoing investment in our pig farming operations has resulted
in securing over 50 per cent self-sufficiency for our requirements
and we continue to build our capability in agricultural operations.
The Group sources from over 320 farms, owning 19 sites and
directly manages a further 46 farms. Around 80 per cent of the pigs
are produced to the higher welfare RSPCA Assured standard and
the remainder are produced to the Red Tractor standard.
In the year, investment into our pig supply chain includes the
acquisition of Elsham Linc, specialising in the production of Red
Tractor-assured pigs from 11 sites across North Lincolnshire.
In addition to rearing pigs, Elsham Linc also produces all of the
feedrequired for this operation; around 74,000 tonnes of pig feed
perannum. Further capacity will be unlocked through post
acquisition investment at the mill to continue growth inthe
supplyoffeed across the Group.
As the business continues to grow, opportunities to expand our
differentiated pig farming business will continue to be explored
providing further long-term security of supply and
competitive advantage.
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STRATEGIC REPORT
2. EXPAND
OUR INNOVATION TEAM
HASIDENTIFIED GAPS IN
THEMARKET TO CREATE NEW
ANDORIGINAL IDEAS BASED
ON KEY FLAVOUR TRENDS.
INDOING THISWECAN
PUSH THEBOUNDARIES
OF THE COATED AND
COOKED CHICKEN
CATEGORIES, TOBRING
THE CUSTOMER APRODUCT
WHICHISINVENTIVEAND
EXCITING EVERYTIME.
OUR STRATEGY
CONTINUED
‘Expand’ focuses on increasing our presence in growth markets such as poultry
andMediterranean foods. We deliver this by building on successful acquisitions
andinvesting in new sites. We continue to build capacity and capability across
thebusinessand explore opportunities in adjacent categories.
INCREASE MARKET SHARE IN GROWTH CATEGORIES
Why it’s important
We have a fully vertically integrated fresh poultry
business and two value-added poultry facilities,
as well as five continental products sites, which
supply a mix of artisanal Mediterranean products
including olives, falafelsand houmous.
The poultry market continues to offer a strong
growth opportunity for us as we look to expand,
as well as to develop new products and open
new trade channels. Our vertically integrated
poultry supply chain gives us a key advantage
inthis respect, enabling us to take a leading
position on food integrity and animal welfare.
We continue to grow our Continental food
businesses as we work with customers
torespond to changing consumer trends.
Withcontinued investment we can leverage
ourcategory leadership and capitalise
onfurther opportunities.
Progress
• £23 million fit-out of Worsley facility,
providing substantial additional houmous
manufacturing capacity and further
expanding our presence in growth markets.
• Ramona’s continues to expand andisnow
thenumber one houmous brand byvolume
inthe UK.
• New business wins with anchor customers at
both Cooked and Prepared Poultry tosupply
ready-to-eat and breaded chicken expands
ourpresence in the UK poultry market.
• Prepared Poultry won the award for
the“BestPoultry Product” at the Meat
Management Awards recognising the quality
ofcoated chicken products produced
atthe site.
Future plans
• Capital investment of £27 million
inCookedand Prepared Poultry to expand
cooking androasting capabilities, expanding
our capacity to provide convenient poultry
products. This investment aligns with
consumer trends towardsconvenience
andon-the-go poultry products.
• E xpa nsi on of o ur fre sh p oul tr y op erat ion s
inEast Anglia to improve efficiencies,
andtofurther extend our market share
infresh poultry.
• Further investment in our Continental
businesses to increase efficiencies and
expand capacity delivering great taste,
innovation and convenience to consumers
inthe fast growing Mediterranean
foods category.
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STRATEGIC REPORT
STRENGTHENING
OURMEDITERRANEAN
FOODSBUSINESS
Since the acquisition of Continental Fine Foods in 2001, the business
has developed a wide range of products sourced primarily from
theMediterranean region. We supply this category from five sites
inLondon and the North-West. Our new houmous production facility
isdue to open in September 2024. Growth will come from building
new facilities, investment in existing operations andcomplementary
strategic acquisitions.
In 2018, the Continental Foods business relocated to Bury.
Investment of over £30 million has seen the introduction of robotics,
advanced slicing and the capability to create multi-ingredient
selection packs and platters in charcuterie meats and olives &
antipasti, securingnew business with retail and food
service customers.
The acquisition of the Katsouris Brothers business in 2019
complemented the existing business. This extended the product
range to include a broad range of pulses, nuts and seeds, speciality
cheeses, such as feta, ricotta and halloumi and increased our share
ofchilled olives to around 50 per cent of the UK retail market.
A number of bolt on acquisitions have since been completed including:
Mediterranean Foods producing falafel and dips; Atlantica importing
Spanish tortilla; and Ramona’s Kitchen focused on the production
of houmous.
The relaunch of the Ramona’s brand in 2023 secured new retail
distribution points and is supported by a national TV sponsorship
campaign. This has resulted in the brand being recognised as
theUK’sbest selling branded houmous. This success has been
akeyreason forthe move to invest £23 million in the Worsley
houmousanddips facility.
STRATEGIC REPORT
Cranswick plc Annual Report & Accounts 2024
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Strategic report
3. DIVERSIFY
WE HAVE SUCCESSFULLY
DELIVERED A NEW
STRATEGICPARTNER
RELATIONSHIP WITH PETS
ATHOME TO PRODUCE
PRIVATE LABEL PRODUCT,
WHILSTALSO INVESTING
IN A BRAND REDESIGN
OFTHEEXISTING
VITALINAND ALPHA
DOGFOODBRANDS.
OUR STRATEGY
CONTINUED
‘Diversification’ enables the Group to identify new markets that will create further
growth opportunities. Whilst Cranswick is firmly established in major fresh food
categories, opportunities to move into new markets will continue to be explored.
Thecriteria for growth will focus on building capability in, and driving value from,
adjacent complementary categories.
IDENTIFY NEW OPPORTUNITIES
Why it’s important
The acquisition of Cranswick Pet Products acts
as a springboard for delivering future growth.
While grocery retailers form a key part of the
pet food market and are well aligned to
ourexisting customer base, we see clear
opportunities to broaden our reach by
developing strategic customer relationships
with major pet store chains and online retailers,
either through own label range development
orbuilding our Alpha and Vitalin brands.
Progress
• £10 million investment in expanding
drypetfood production at Pet Products
isprogressing to plan. This investment
willdouble kibble production
facility capacity.
• T he refre she d Vit ali n an d Alp ha do g foo d
brands have been relaunched with listings
secured in Pets at Home and through online
retail channels.
Future plans
• C ont inu e to ca pit ali se on revenue grow th
opportunities that the pet food
market offers.
• I ncre ase t he ut ili sati on of o ur f resh p oul tr y
andpork supply chains within our pet
food production.
• E xpl ore n ew ways to in trod uce i nnovat ion
into product development, utilising the skill
and expertise of the Pet Products team.
• Identify new expansion opportunities outside
of our core categories.
Cranswick plc Annual Report & Accounts 2024
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STRATEGIC REPORT
BUILDING A SUSTAINABLE
PETFOODBUSINESS
The acquisition of Cranswick Pet Products in January 2022
(formallyknown as Grove Pet Foods), provided accessto a new
market and long-term opportunities to add value through leveraging
our supply chain.
This year, we initiated a strategic business transformation aimed
atbolstering our long-term growth plans. Although the pace of
progress has not matched our initial expectations, resulting in an
impairment of goodwill and other intangible assets, we streamlined
operations to improve efficiency, while investing in additional
production capacity and capability to enable growth.
We are actively reshaping and consolidating ourcustomer base,
while successfully building on a strategic partnership with Pets at
Home. Initial supply commenced from September 2023, and further
lines continue to be onboarded.
Positioned for sustained future growth, Cranswick Pet Products’
own brands, Vitalin and Alpha, underwent acomprehensive
redevelopment during the year.
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Strategic report
STRATEGIC REPORT
KEY PERFORMANCE INDICATORS
Key Performance Indicators (KPIs) enable us to measure our progress
against our long-term growth strategy and our Second Nature commitments.
LONG-TERM GROWTH STRATEGY
OPERATIONAL EXCELLENCE
Consolidate:
Like-for-like revenue growth
2023 +14.4%
2022 +5.3%
2024 +11.6%
Expand:
Sales from new products
2023 3.6%
2022 7.6%
2024 4.9%
Diversify:
Sales from non-food products
2023 £26.6m
2022 £3.9m
2024 £25.4m
Adjusted operating margin
2023 6.3%
2022 7.0%
2024 7.1%
Free cash flow
2023 £149.2m
2022 £158.4m
2024 £223.4m
Return on capital employed*
2023 15.8%
2022 16.9%
2024 18.5%
Why is this important?
Like-for-like revenue, which excludes
thecontributions from acquisitions prior
totheanniversary of the acquisition date,
allows ustomeasure the underlying growth
ofthe business.
Performance
Like-for-like revenue increased by
11.6percent,reflecting effective inflation
recovery, underpinned by volume growth
inUKfood with growth accelerating through
the second half of the year.
Why is this important?
Ongoing innovation and product range
expansion helps us to drive revenue growth
and strengthen our relationships with
our customers.
Performance
Sales from new products during the first
sixmonths following their launch accounted
for£127.5 million of revenue in the current
year,representing 52 per cent increase
year-on-year.
Why is this important?
Revenue from our “other” segment is an
indicator of growth delivered as a result of our
diversification strategy.
Performance
Revenue in Pet Products decreased by
4.7percent as we consolidated the customer
base before onboarding the new Pets at Home
contract which started inthe second half of
the year.
Why is this important?
Return on capital employed is an
appropriatemetric to measure the efficiency
ofcapital allocation.
Performance
Return on capital employed increased by 264
bps reflecting substantial operating profit
growth from our existing asset base along with
strong returns from capital deployed during
the year.
* ROCE represents adjusted operating profit divided by the
sum of average opening and closing net assets, net debt/
(funds), pension surplus/(deficit) and deferred tax.
Why is this important?
Free cash flow demonstrates the level of cash
generation from the business.
Performance
Free cash flow has increased in the year
primarily due to increased EBITDA, tight
control of working capital and a modest
increase in biological assets.
Why is this important?
Adjusted operating margin is a meaningful
measureof the underlying profitability
ofthe business.
Performance
Adjusted operating margin increased by 81 bps,
reflecting a strong contribution from expanded
pig farming operations, tight cost control and
robust returns from the effective deployment
of capital.
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STRATEGIC REPORT
HIGH QUALITY PRODUCTS
SUSTAINABILITY
Why is this important?
We take food safety very seriously and each
site’s foodsafety standards are assessed every
yearbyanindependent body, the British Retail
Consortium (BRC).
Performance
All production facilities, certified by the
BritishRetail Consortium (BRC) against
Global Standards for Food Safety,
wereawarded a Grade A rating, reflecting
thehighest standards of compliance.
Why is this important?
Our Group Technical Services team undertake
supplier audits to ensure the safety, traceability,
quality and provenance of the raw materials
and ingredients we use.
Performance
The higher number of audits is driven by an
increased number of farm audits. This year,
astrategic decision was made to conduct
additional Cranswick welfare assessments.
This proactive approach aims to identify
potential issues pre-emptively, offering support
to enhance compliance and performance.
Why is this important?
We are dedicated to delivering the highest
quality products which meet or exceed our
customer expectations.
Performance
The increase is primarily driven by two key
drivers. Firstly, several retailers have altered
their reporting methods resulting in enhanced
visibility of complaints. Secondly, the addition
ofnew factories and customers has broadened
the scope of potential issues and subsequently
contributed to the rise in complaints.
Why is this important?
We are committed to reduce our relative carbon
footprint as part of our journey to Net Zero.
Performance
Over the past 12 months, the Group’s relative
carbon footprint for Scope 1 and 2 emissions
increased by 2.2 per cent, driven by changes in
emission methodology and product mix.
* 2023, 2022 and the baseline data has been restated following
new learnings and business acquisitions. Please refer to page
37 for more information.
Why is this important?
We are committed to eliminating edible food
waste by 2030.
Performance
We have invested in innovative processing
techniques and staff training in order to reduce
edible food waste.
* Last year WRAP have refreshed their Food Waste Reduction
Roadmap to remove mandatory reporting of food waste
ineffluent and we have taken the decision to remove waste
ineffluent from historic reporting so accurate comparisons
can be made.
Why is this important?
Health and safety of our employees and visitors
is our key priority. We regularly monitor and
review our performance based on our accident
rate of RIDDORs reported per 100,000 hours
worked in our operations.
Performance
Our RIDDOR frequency rate per 100,000
hours decreased by 8.3 per cent compared
toFY23, mainly driven by improved training
andrisk assessment processes.
Number of BRC Grade A’s
2023 17
2022 15
2024 19
Number of supplier audits
2023 340
2022 352
2024 687
Complaints per million units sold
2023 10
2022 11
2024 14
Relative carbon footprint*
Tonnes of CO
2
e per tonne sales
Baseline (2020) 0.1222
2023
0.0845
2022 0.0894
2024 0.0864
Edible food waste*
Percentage of tonnes sold
2023 0.24
2022 0.27
2024 0.22
RIDDOR frequency rate
per 100,000 hours worked
2023 0.24
2022 0.27
2024 0.22
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Strategic report
STRATEGIC REPORT
OPERATING AND FINANCIAL REVIEW
WE HAVE MADE EXCELLENT
PROGRESS OVER THE
LAST TWELVE MONTHS,
DELIVERING RECORD
RESULTS AND MAKING
FURTHER POSITIVE
PROGRESS TOWARDS
MEETING OUR STRATEGIC
OBJECTIVES.
Mark Bottomley
Chief Financial Officer
Revenue
Reported revenue increased by 11.9 per cent
to£2,599.3 million. Like-for-like revenue which
excludes the contributions from acquisitions
prior to the anniversary of their acquisition date
increased by 11.6 per cent with corresponding
volumes 1.5 per cent higher. On a 52-week
basis reported revenue increased by 9.8 per
cent, underpinned by core UK food volume
growth of 4.5 per cent with allfour categories
delivering positive volume momentum.
Growth accelerated through the second half of
the year to 6.6 per cent, from 2.6per cent in the
first half.
Fresh Pork revenue growth reflected the pass
through of higher pig prices, with volume
growth delivered in both retail and wholesale
channels. Poultry volumes were positive with
strong growth in Prepared Poultry as the
business continues to mature following its initial
start-up phase. Convenience revenue was also
ahead reflecting further inflation recovery and
onboarding of new customers. Growth in
Gourmet Products continued with new product
launches driving strong volume growth at the
Hull Cooked Sausage and Bacon facility.
Customer service levels remained consistently
high throughout the year, with over 98 per cent
fulfilment, including during the record
Christmas trading period.
Adjusted Group Operating Profit
Adjusted Group operating profit increased by
26.3 per cent to £185.1 million with adjusted
Group operating margin at 7.1 per cent.
Excluding the final insurance receipts in respect
of the May 2022 product recall claim and the
contribution from the 53
rd
week, adjusted
operating profit was 20.7 per cent higher than
the prior year. This improvement reflected the
strong returns we are now generating from
ongoing investment in our farming and milling
operations together with inflation recovery
inthe first half of the year, easing input prices,
operational efficiency improvements and tight
cost control. The positive recovery was partly
offset by the losses incurred in our Pet Food
business which is still partway through a major
transformation process.
Revenue and Adjusted Operating Profit
2024
£’m
2023
£’m
Change
(Reported)
Change
(Like-for-like*)
Revenue 2,599.3 2,323.0 +11.9 % +11. 6%
Adjusted Group Operating Profit* 185.1 146.5 +26.3%
Adjusted Group Operating Margin* 7.1% 6.3% +81bps
* See Note 30 of the financial statements.
Cranswick plc Annual Report & Accounts 2024
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STRATEGIC REPORT
Category review
Fresh Pork
Fresh Pork revenue, which represented
25percent of Group revenue, increased by
7.7percent, with like-for-like revenue excluding
the impact of acquisitions up 6.9 per cent
reflecting the further recovery of high UK pig
prices which peaked at 225.65p/kg in August.
UK Fresh Pork volumes were strongly ahead
ofthe prior year, offset by lower Far East
export volumes.
Retail performance was strong with volumes
up4.5 per cent driven by an uplift in retailer
promotional plans throughout the year with
special buys and premium tier promotions
contributing strongly. UK wholesale revenue
also benefitted from increased pricing and
more volume directed into the UK trade as
export demand slowed.
Far East export revenue was 31.1 per cent
behind the prior year as both pricing and
demand from the key Chinese market
remained subdued.
During the year we invested £31 million across
the three primary processing facilities and
ourfarming infrastructure. £7.6 million related
tothe£62 million ongoing multi-phased
redevelopment of the Hull primary processing
site which will add substantial capacity and
drive further efficiency improvements along
with the added benefit of onsite cold storage
capability. This ongoing investment in our
primary processing asset base provides the
platform to not only grow our fresh pork
business but also to feed into our rapidly
growing wider value-added pork businesses.
The acquisition of Elsham Linc, a large-scale
indoor farming business with 18 sites in North
Lincolnshire, including a feed mill, and the
purchase of an additional pig herd during the
year substantially increased the scale of our
farming operations at a time when the overall
size of the UK pig herd has fallen by 15 per cent.
The continued investment in, and expansion of,
our higher welfare and Red Tractor assured pig
herds has lifted our self-sufficiency in UK pigs
toover 50 per cent. Moving forward we will
continue to invest at pace in our pig farming
operations and consider further acquisitions
toensure we have the right quantity and mix
ofpigs to service our customers’ requirements.
Convenience
Convenience revenue increased 13.3 per cent
and represented 39 per cent of Group revenue.
Revenue growth reflected both ongoing
inflation recovery and stronger volumes driven
by a strong performance in Katsouris Brothers
through business wins and category growth.
Cooked Meats revenue growth reflected
ongoing inflation recovery and underlying
volume growth in our ‘slow cook’ and ‘sous vide’
product ranges. Towards the end of the
financial year, across the wider cooked meats
category, we signed a new long-term supply
agreement with one of our strategic
retail customers.
The expansion of our Hull Cooked Meats
facility enabled the successful launch of our
‘slow cook range’ with two new major retail
customers. Leading Christmas products have
become ‘hero lines’ with new, modern flavours
and formats added to the range. The award-
winning ‘Turkey with all the trimmings’ product
was the first to market full meal solution.
At the Milton Keynes facility the extension
works are now complete with the additional
capacity enabling new business to be brought
on board.
Shortly after the year end the Valley Park site
inSouth Yorkshire relinquished some lower
margin business. New retail business has
however since been secured and an ongoing
cost-out plan at the site leaves the business
better able to serve its anchor strategic
customer and search for new accretive business
opportunities going forward.
Continental Products revenue increased with
inflation recovery offsetting modestly lower
volumes. We achieved a great result with our
Christmas range which included 1.9 million
platters that are becoming a popular choice for
modern Christmas celebrations. The creative
‘Charcuter-tree’ was an integral part of one of
our customer’s Christmas marketing campaign.
Our premium grazing platters are ideally suited
to party and sharing occasions, combining
charcuterie, olives, antipasti and crackers.
We have invested heavily in automation and
complex assembly equipment at our Bury
facility to facilitate growth in this attractive
market segment.
Katsouris Brothers revenue increased
reflecting both inflation recovery and strong
volume growth. Our halloumi products have
performed particularly well with business wins
in retail and food service. Strong sales of ambient
products under the Cypressa brand also drove
positive year-on-year growth with the range’s
success recognised with the Grocer Gold for
the Cypressa Halkidiki Olives double stuffed
with Garlic and Red Pepper and Cypressa
Greek Extra Virgin Olive Oil.
The Ramona’s business continued to perform
well and is now the number one houmous brand
by volume in the UK. The Watford facility is now
running at maximum capacity with some volume
needing to be outsourced in the short-term
ahead of the planned move to the new Worsley
facility later in the year. Redevelopment of the
Worsley facility, which was acquired at the end
of the last financial year, is ongoing. The
£23 million fit-out, which will be complete in the
second half of 2024, will deliver a best-in-class
houmous and dips production facility enabling
asignificant increase in capacity using new and
innovative production processes.
Gourmet Products
Gourmet Products revenue increased 20.8 per
cent year-on-year and represented 18 per cent
of Group revenue, with all businesses
contributing positively to the strong
revenue momentum.
The acquisition of Froch Foods Holdings
Limited (‘Froch Foods’) completed during the
year adds capacity to our added-value
processing of predominantly pork and poultry
related products. Froch Foods supplies one
ofour large retail customers in this category
and the acquisition aligns with our commitment
to invest in, and add capacity to, our core
categories to drive further growth.
Revenue from the Cooked Bacon and Sausage
facility was significantly ahead, underpinned
bydouble-digit percentage volume growth.
Successfully onboarding a second depot
foraquick service restaurant customer and
theaddition of new retail customers for
ourpremium cooked sausagerange both
contributed to the strong performance.
Sausage and bacon sales increased strongly
with both retail and food service segments
delivering good volume performance during
the year. Volume growth was boosted by more
retail promotions involving multi-buy deals, with
premium products performing especially well.
Food service volumes were robust as eating
breakfast outside the home continues to gain
inpopularity. Our Christmas output of pigs
inblankets increased by 25 per cent with over
75 million single units delivered to our
customers across the festive period.
Pastry revenue improved year-on-year with
promotional mechanics and an innovative
product range boosting demand. New premium
tier products were launched during the year
with underlying strong performance in the core
product range.
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Strategic report
STRATEGIC REPORT
OPERATING AND FINANCIAL REVIEW
CONTINUED
Poultry
Poultry revenue increased by 7.6 per cent and
represented 17 per cent of Group revenue.
Volumes increased year-on-year with strong
growth from Prepared Poultry.
Fresh Poultry continued to perform well with
anaverage 1.4 million birds processed each
week. Volume growth in the year was driven
through stronger retail sales performance with
the site’s anchor customer, in part facilitated by
investment in additional automated portioning
and thigh deboning in the prior year.
Cooked Poultry revenue was modestly ahead
of the previous year, with the site successfully
launching new products into a premium retail
category. A substantial £17 million capital
investment programme, which will increase
cooking and cooling capacity, along with
additional roasting capability for portions and
bone-in products, is progressing well with
completion targeted before the end of the
current financial year. During the year, the
May2022 product recall claim was successfully
concluded with final insurance receipts of
£4.7 million received and recognised in other
operating income.
The Prepared Poultry facility, in its second year
of operation, delivered strong volume growth
albeit the site continued to operate well below
optimum capacity. With the site carrying a high
fixed overhead base, additional volume is
needed to meet margin expectations.
The recent onboarding of a new retail customer
will go some way to addressing this issue.
The outlook for the business remains positive
with a further £10 million expansion project
now underway to support the category
growth pipeline.
Following on from the highly virulent Avian
Influenza (‘AI’) season in the previous financial
year, it is pleasing to report that the disease has
been far more benign in the current financial
year with Cranswick farms unaffected. Indeed,
the UK has self-declared zonal freedom from
AIwith effect from 29 March 2024. The UK
does not currently have outbreaks occurring
inpoultry or other captive birds and the level
ofrisk is low with no disease control zones in
place in England. This said, strict bio-security
protocols remain in place at the Suffolk plant
and across all our farms in the southeast
of England.
Pet Products
Cranswick Pet Products represented 1 per cent
of Group revenue, with revenue down 4.7 per
cent primarily due to the timing of onboarding
the new Pets at Home (PaH) contract. During the
first half of the year the focus was on building
stock ahead of deliveries into PaH depots which
started in the second half of the year.
We have reduced complexity in the factory,
consolidated the customer base and invested
for future growth, alongside investing heavily
inour Alpha and Vitalin brands. We have taken
positive steps to upgrade the facility, with
amulti-year £10 million investment programme
at the Lincoln site to increase capacity and add
capability nearing completion.
The financial performance of the pet food
business, whilst disappointing, reflected the
profound changes taking place in the business,
with a strategic review of the customer base,
brand investment, stock build ahead of the PaH
launch and disruption resulting from the major
investment programme all contributing.
Following a review of the carrying value of
goodwill and other intangibles at the year end,
we made a non-cash impairment charge of
£15.4 million against these assets. The business
is now on a stronger footing, well placed to grow
rapidly and ultimately deliver a level of return
inline with the wider Group. We will continue
toreshape the customer base of the business
and our appetite to invest in the long-term
production capability of the site is undiminished.
Cranswick plc Annual Report & Accounts 2024
28
STRATEGIC REPORT
Finance review
Revenue
Reported revenue increased by 11.9 per cent
to£2,599.3 million (2023: £2,323.0 million).
Like-for-like revenue, excluding the impact from
acquisitions, increased by 11.6 per cent.
Adjusted gross profit and adjusted EBITDA
Adjusted gross profit increased by 24.5 per
cent to £374.7 million (2023: £300.9 million)
with adjusted gross profit margin at 14.4 per
cent (2023: 13.0 per cent). Adjusted EBITDA
increased by 23.9 per cent to £266.8 million
(2023: £215.3 million) and adjusted EBITDA
margin increased by 100 basis points to
10.3per cent (2023: 9.3 per cent).
Adjusted Group operating profit
Adjusted Group operating profit increased
by26.3 per cent to £185.1 million
(2023: £146.5 million) and adjusted Group
operating margin improved by 81 basis points
to 7.1 per cent (2023: 6.3 per cent).
Full reconciliations of adjusted measures
tostatutory results can be found in Note 30.
Thenet IAS 41 movement on biological
assetsresults in a £2.2 million credit
(2023: £7.6 million credit) on a statutory basis
primarily reflecting the movement in the UK
pigprice during the year.
Finance costs and funding
Net financing costs of £8.9 million
(2023: £6.4 million) included £3.6 million
(2023: £2.5 million) of IFRS 16 lease interest.
Bank finance costs were £1.3 million higher
than the prior year at £5.3 million
(2023: £4.0 million) primarily reflecting the
increase in the bank base rate during the year.
The Group has access to a £250 million
revolving credit facility, including a committed
overdraft of £20 million running until
November 2026.It also includes the option
toaccess a further £50 million on the same
terms at any point during the term of the
agreement. The facility provides the business
with almost £250 million of headroom at
30 March 2024.The adequacy of this facility
has been confirmed as part of robust scenario
testing performed over the three-year viability
period for the Group.
Adjusted profit before tax
Adjusted profit before tax was 26.1 per cent
higher at £176.6 million (2023: £140.1 million).
Taxation
The tax charge of £45.3 million
(2023: £28.1 million) was 28.6 per cent of profit
before tax (2023: 20.1 per cent). The standard
rate of UK corporation tax was 25.0 per cent
(2023: 19.0 per cent). The effective rate was
higher than the standard rate due to the
impairment of goodwill and other expenses
which are not deductible for tax purposes.
The effective tax rate on adjusted profit before
tax was 26.1 per cent (2023: 19.8 per cent).
Tax strategy
Our tax strategy is aligned with our vision and
core values and fits within our overall Corporate
Governance structure. Our strategy ensures
thatwe comply with all tax laws wherever
wedobusiness and that we pay all taxes that
wearelegally required to pay when they fall
due. To safeguard our reputation as a
responsible taxpayer we do not participate
inany tax planning arrangements that do not
comply witheither the legal interpretation or
the spirit oftaxlaws. Our tax strategy can be
found on ourwebsite: www.cranswick.plc.uk.
Dividend policy
We believe in paying a sustainable dividend
which delivers a strong return to investors but
isbalanced against the need to invest in the
future of the business. Our policy ensures that
shareholder income streams are strongly
aligned to the profitability and the sustained
growth in the Group’s profits has been matched
by the Group’s dividend per share growth
which is unbroken for 34 years (see page 11).
Our dividend policy can be found on our
website: www.cranswick.plc.uk.
Adjusted earnings per share
Adjusted earnings per share increased by
15.6per cent to 242.8 pence (2023: 210.0
pence). The average number of shares in issue
was 53,776,235 (2023: 53,461,000).
Statutory profit measures
Statutory profit before tax was £158.4 million
(2023: £139.5 million), with statutory Group
operating profit at £166.9 million
(2023: £145.9 million) and statutory earnings
per share of 210.4 pence (2023: 208.3 pence).
Statutory gross profit was £376.9 million
(2023: £308.5 million).
Cash flow and net debt
The net cash inflow from operating
activities in the year was £228.4 million
(2023: £153.0 million). The increase of
£75.4 million was primarily due to an increase
EBITDA of £46.5 million. Net debt, including
the impact of IFRS 16 lease liabilities, fell to
£99.4 million (2023: £101.4 million) with the
inflow from operating activities offset
by£90.6 million, net of disposal proceeds,
invested in the Group’s asset base, £43.9 million
of dividends paid to the Group’s Shareholders,
£15.6 million of own shares purchased and
placed into the Cranswick Employee Benefit
Trust, £17.8 million of IFRS 16 lease charges
and £41.4 million of tax paid.
Pensions
The Group operates defined contribution
pension schemes whereby contributions
aremade to schemes administered by major
insurance companies. Contributions to these
schemes are determined as a percentage
ofemployees’ earnings.
The Group also operates a defined benefit
pension scheme which has been closed
tofurther benefit accrual since 2004.
On 2 December 2022, the Trustees of the
defined benefit pension scheme purchased
abuy-in insurance policy to secure the majority
of the benefits provided by the scheme.
The surplus on this scheme at 30 March 2024
was £0.2 million (2023: £0.2 million).
The present value of funded obligations was
£20.8 million, and the fair value of plan assets
was £21.0 million. The Group did not make any
contributions in theyear and does not expect to
make any further contributions to the scheme
during the year ending March 2025.
Summary
We have made excellent progress over the
lasttwelve months, delivering record results
and making further positive progress towards
meeting our strategic objectives. We continue
to invest at pace across our industry leading
asset base, with further substantial investment
planned during the year ahead. We have
extended our reach into new and existing
customers through investing in additional
capacity and new capability and by onboarding
newly acquired businesses. We continue
todevelop and grow our farming operations,
again both through organic investment and
through acquisition, to ensure security of
supply and maximise returns. We have a highly
cash generative business and going forward
wewill continue to use this cash to deploy
capital at pace to drive attractive returns for
our shareholders.
Mark Bottomley
Chief Financial Officer
21 May 2024
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STRATEGIC REPORT
OUR SUSTAINABILITY STRATEGY
SECOND NATURE
Guided by our sustainability strategy,
SecondNature, wehave
seamlesslyintegratedour sustainability
commitments into thecoreofour business
model, whichinturnshapesour
decision-making, cultureand actions.
We have refreshed our Second Nature
strategy to make it more accessible, relevant
and relatable for our stakeholders.
Thesimplified strategy facilitates active
involvement and action from all parties.
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STRATEGIC REPORT
Our mission has long been to make meat sustainable and we are striving to make Cranswick the food
industry’s most sustainable meat business. We also know that sustainability is not a competition. It is a
race that all businesses need to win. We believe that SecondNature can be the blueprint for achieving
thegold standard in sustainable food production ifwecan work together withoursuppliers,
whilesupporting local communities and engaging stakeholders.
This is what we mean by putting the future first, every day.
To help us, we have developed threenewSecond Nature Guiding Principles.
PUTTING THE FUTURE FIRST, EVERY DAY
ENVIRONMENT
FARMING WITH
CONSCIENCE
SOURCING WITH
INTEGRITY
PRODUCING
RESPONSIBLY
LIVING
BETTER
SOCIAL GOVERNANCE
FROM THE LAND,
FOR THE LAND
We will always be farmers at our heart.
Agriculture runs through us, down to
our roots. We are connected to the land
through generations, a living history
ofcare and stewardship of restoring
and maintaining balance. At every stage
of our business, from farm-to-fork,
westrive to uphold our responsibility
tothe environment. We are mindful
ofthe obligation we bear to those who
will come after us. In a world grappling
withclimate change we take our role
seriously, working tirelessly to ensure
abrighter, moresustainable future.
NATURE & NURTURE
Considerate farming
from start to finish
Read more on page 32
BIG & SMALL
Even the smallest changes
canleadtobig impacts
Read more on page 33
EVOLVE &
TRANSFORM
Continuous improvement that
transforms our impact
Read more on pages 34-35
COLLECTIVELY
&INDIVIDUALLY
People and planet,
combining for better
Read more on page 36
THRIVING TOGETHER,
WITHPURPOSE
We are a people business with a
missionto nourish the nation, cultivate
careers, empower communities,
promote healthy relationships, and
inspire a better quality of life. Our goal
istoactively contribute to a flourishing
society, bothlocally and globally,
through sustainable practices that
encompass all aspects of what we
doandhow we do it. This includes
creating opportunities for growth,
offering support tothose in need,
andrecognising the value
ofevery individual.
OPEN COLLABORATION,
SHARED SUCCESS
We believe sustainability should be
acollective effort to preserve the
wellbeing of our environment and
society, with no business or individual
left behind. This means sharing
knowledge both internally and
externally, and helping the whole
foodandfarming industry to build
onoursuccesses and to learn from
ourexperience. Through active,
opencollaboration andfocused,
inspiring leadership, we strive
tobeabeacon ofpositive change
inthefoodindustry and beyond.
Second Nature Guiding Principles
Bringing Second Nature to life
While the principles guide us, it is our four working pillars that bring Second Nature to life:
Link to Sustainable
Development Goals
Link to Sustainable
Development Goals
Link to Sustainable
Development Goals
Link to Sustainable
Development Goals
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STRATEGIC REPORT
OUR SUSTAINABILITY STRATEGY
CONTINUED
We are committed to cultivating a
regenerative agricultural food system that
puts livestock attheheart of our strategy.
It aimsto buildmoreresilience into our
supply chain bynurturing soil health with
subsequent improvements inbiodiversity.
We prioritise animal welfare anduphold
industry-leading standards acrossour farms
and supply chains. We fosterandpromote
innovation, empowering farmers todo
theright thing forthemselves, their crops,
animals and the local environment they
arecustodians of. This unrelenting focus
ishelping to build resilience into our
agricultural operations and supply chain,
aswe actively work towards Net
Zero livestock.
Sustainable diets
Reducing the carbon impact of animal feed
remains a significant challenge for our industry.
We have an unrelenting focus on reducing soya
meal in our pig and poultry diets, with levels
below industry averages. We also switched
to100 per cent full mass balance RTRS
certified soya within our chicken feed in 2022,
resulting in a 28 per cent reduction in the
carbon footprint of our chickens.
All of the soya purchased for our pig feed
isregional mass balance RTRS certified soya,
which delivers a 14 per cent decrease in
thecarbon footprint of an outdoor reared pig,
andwe are transitioning to full mass balance
RTRS certified soya during 2024.
Through industry coalitions such as the
UKSoyManifesto, we are working with all
agricultural sectors to ensure that in the future
all physical soya sourced into the UK, or
embedded withinimported raw material, is
from verified, deforestation and conversion-
free sources. We aim to transition our owned
pig and poultry operations to fullmass balance
soya bythe end of 2024, ayear ahead of our
policy commitment. Our future ability to comply
withEU and forthcoming UKlegislation is
verymuch dependent upon the importers
andtraders. An agreement between several
different stakeholders on a sourcing standard,
and timescale of physical delivery atarealistic
pricepremium, remains a significant challenge
for all involved.
Regenerative farming
Throughout the year, we have continued
toemphasise the pivotal role of soil health
inmitigating climate change risks at regional,
national, and international levels.
NATURE & NURTURE
Specifically, our focus was directed towards
theongoing contribution of livestock to soil
health regeneration, through the effective
integration of nutrients and straw from livestock
into the soil, which improves biological activity,
increasing organic matter, and nutrient and
carbon cycling. This provides the optimum
conditions for growth and development of
crops, and increases the diversity of bacterial
populations and soil microbes, whilst reducing
the reliance on synthetic fertilisers.
Our long-standing relationships with local
farmerscontinues to promote the exchange of
straw for muck sourced from our pig operations.
This integration also enhances thesoil’s water
retention capacity, thereby enhancing its ability
tocounteract drought conditions, ultimately
maintaining crop yields andincreasingly
promoting the efficient utilisation ofirrigation
water in field rotations where we share the land
with other food producers.
We continue to share our best practice
techniques for improving soil stability and
sustainability under pigs, and reducing the
impact of pig production on the natural
environment. As we navigate the complexities
of sustainable agricultural practices, leveraging
the relationship between livestock, soil health
and improving biodiversity is key in our
commitment to mitigating climate change, while
ensuring agricultural resilience
and productivity.
FARMING WITH CONSCIENCE
Cranswick Carbon Inset Scheme –
securing farm resilience
This year we received Innovate UK funding
toscale up the Cranswick CarbonInset
Scheme. It aims to strengthen trust
andtransparency surrounding carbon
insetting, while enhancing financial support
for British agriculture. Designed toalign
with existing environmental stewardship
programmes, suchas the Countryside
Stewardship Scheme ortheSustainable
Farming Incentive(SFI), thescheme not
onlyfacilitates theinsetting ofcarbon
AgriSound
We were early adopters of specialist
solar-powered equipment developed
bypollinator biodiversity innovators,
AgriSound, to monitor insect activity on
ouroutdoor breeding units. We installed
devices in key areas around thefarms and
monitored real-time data. Initial findings
revealed a notable increase inpollinator
populations across all farms. Building on
thesuccess of our initial collaboration,
wecontinue to work closely with AgriSound
tofurther develop their technology.
emissions within theCranswick supply
chain,but alsodrivesthe enhancement
ofbiodiversity andnatural capital amongst
ouraligned contract producers, fostering
acollective commitment to environmental
sustainabilityand Net Zero goals within
theagricultural sector.
As part of the Cranswick Carbon Inset
Scheme, AgriSound are expanding their
monitoring capabilities to include a broader
range of species to gain comprehensive
insights into theimproved biodiversity
thatresults from improving soil health
andorganic carbon. This will deliver more
robust data to support thescheme’s aim
todemonstrate the concept ofinsetting
carbon emissions, coupled with biodiversity
net gain within an aligned supply chain,
anda financial mechanism to reward
thelandowner for doing so.
Cranswick plc Annual Report & Accounts 2024
32
STRATEGIC REPORT
SOURCING WITH INTEGRITY
We believe that every action we take
towardsbeing more sustainable is important.
That’swhy we strive to make informed
andethical sourcing decisions, taking into
consideration the impact wehave on the
environment, communities and individuals.
We understand the importance ofsupplier
engagement within the sustainability space,
especially when it comes todelivering Scope 3
emission reductions. We regularly engage with
our suppliers tounderstand their sustainability
journey andidentify areas where our values can
align. As part of this journey, wehave
undertaken active engagement sessions with
protein suppliers over the past 12 months.
We held our first Cranswick Procurement
Summit in February 2024, wherewe had an
opportunity to talk about ourSecond Nature
strategy and, more importantly, collaborate
with our suppliers onhow we are going to
deliver our collective sustainability targets.
Our efforts to create shorter andmore
transparent supply chains ensure thatpeople
can better understand and trust where their
food comes from. We require suppliers who
work with us to provide the assurances that our
customers and consumers need when it comes
to food integrity and safety. We are proud to
say that 100 per cent of our meat, fish and egg
suppliers are accredited to a national
recognised farm assurance scheme.
As part of our commitment to reduce packaging
waste across our value chain, weactively
collaborate with suppliers and re-processors
toidentify effective solutions. This includes
exploring closed-loop recycling systems for
food grade packaging, as well asimplementing
alternative waste trays and tote liners. We are
also making headway inourtrials of pulp-based
trays as a potential replacement for plastic trays
used for some ofour meat products.
Since 2017, we have reduced the use
ofunnecessary plastic across our operations
by19.8 per cent (2,418 tonnes) by focusing on
lighter-weight packaging, reducing the use of
certain meat packaging materials and
developing alternatives to plastic where we can.
New PaperLite packaging
At Cranswick Convenience Foods Milton
Keynes, we are working with fibre-based
packaging supplier, Graphic Packaging,
tomove a range ofcooked meats into
traysproduced from PaperLite™,
athermoformable packaging material
whichcontains 90 per centplant-based
fibre. The PaperLite 200/23 HB material
has received approval from the
On-PackRecycling Label scheme to be
labelled ‘recycle’ in the UK. With a high
percentage of fibre, PaperLite can
significantly reduce the carbon footprint
byup to 85 per cent compared to traditional
plastictrays, whileproviding the same
product protection and shelf life.
BIG & SMALL
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33
Strategic report
STRATEGIC REPORT
Environmental Collaboration
oftheYear
In partnership with SURE Solutions,
weweredelighted to win the Environmental
Collaboration of the Year award at the
RACCooling Industry Awards 2023.
Together, we have been working to
decrease Cranswick’s carbon footprint
byeliminating Hydrofluorocarbons (HFCs)
from our supply chain while simultaneously
decreasing the energy consumption
inourheating and cooling processes.
SURE Solutions helped us implement
arefrigeration plant control system at
ourPrepared Poultry site that significantly
reduced the site’s carbon footprint.
By maintaining the plant’s floating
conditions, we were able to reduce carbon
dioxide emissions by an impressive 1,774kg
CO
2
per day, which equates to roughly
647tonnes CO
2
per year. This is just one
example of our ongoing efforts to make
apositive impact on the environment
andreduce our overall carbon footprint.
OUR SUSTAINABILITY STRATEGY
CONTINUED
We are focused on efficiency
andsustainability in every aspect
ofourwork.Committed to continuous
improvement, weare constantly refining
ourprocesses andpractices, pushing
fornewapproaches and ways forward.
Our Journey to Net Zero
Our overall ambition is to be an operational
NetZero business no later than 2040 and,
aspart of this journey, wehave two key
milestones. The first being a50 per cent
absolute reduction in Scope 1 and 2 emissions
by 2030, against a2019/20 baseline. This target
has been SBTi validated and aligned to warming
no greater than 1.5
o
C. The second milestone is
Net Zero inour owned operations, nolater than
2040. All our Scope 1 and 2 emissions across
manufacturing and farming are included inour
target. In addition, all GHG types are measured
in our footprints, including methane and nitrous
oxide generated from our farming operations.
It is well recognised that the majority of an
organisation’s emissions reside within Scope 3
and specifically for Cranswick within our
purchased goods and services. While reducing
these presents complex and multi-dimensional
challenges, we are continuing to focus on
thethings we can influence the most, such as
thefeed we purchase for our owned farming
operations (see page 32).
As we seek to focus our efforts on our journey
to Net Zero and we have commenced work on
setting new FLAG (forest, land andagriculture
guidance) targets in conjunction with SBTi.
We anticipate these will be verified before the
end of the year.
EVOLVE & TRANSFORM
PRODUCING RESPONSIBLY
Cranswick plc Annual Report & Accounts 2024
34
STRATEGIC REPORT
Our plan
To deliver our ambition to be operational
NetZero no later than 2040, we are working
onthree distinct areas: reducing our reliance on
purchased fossil fuels, reducing our agricultural
non-mechanical emissions, and reducing
refrigerant emissions.
Energy decarbonisation
We started this journey in 2018 when we
switched to 100 per cent green grid electricity
for all of our owned operations and we are
nowworking hard to eliminate other key fossil
fuels such as natural gas, LPG and diesel.
Decarbonisation of energy usage is complex
and werecognise the importance of building
abalanced and diverse mix of renewable
energyas we transition to Net Zero operations.
Approximately one-third of our energy
emissions reside in natural gas and we have
continued toreview lower carbon alternatives
over thepastyear which include green gas from
anaerobic digestion, green hydrogen
generation and off-site solar projects.
We continue to collaborate as part of the
EastCoast Hydrogen Consortium which
isworking to deliver cleanhydrogen into
theHumber region bythemid-2030s.
Our main requirement for LPG is through
ourpoultry farming division. Infrastructure has
nowbeen installed at trial sites to test a new
lower carbon alternative to LPG.
We have successfully trialled renewable diesel,
alower carbon alternative to standard diesel,
forour largest fleet of HGVs which reduced
associated CO
2
emissions by over 95 per cent.
We view using renewable diesel as a transitional
step to the final solution which is likely to be
electrification or the use of green hydrogen.
Reducing agricultural
non-mechanicalemissions
Agricultural non-mechanical emissions are
emissions from biological processes and,
inthecontext of our direct operations,
primarilyarise from enteric fermentation
andmanure management in livestock.
The key activity to reduce these emissions is
improving the efficiency of our livestock
production through both natural genetic
improvement and improvements indiet.
During the year we continued our shift
tosustainable sources of soya with a lower
carbon footprint and have continued diet
reformulations for both pig and poultry diets.
For more information, please refer tothe
‘sustainable diets’ section onpage 32.
Reducing refrigerant emissions
Over the last four years we are proud to have
significantly reduced refrigerant emissions
by83.4 per cent since our 2019/20 baseline.
During the last year efforts have focused
onfurther improvements at sites through
additional system surveys and upgrades,
including switching to HFCs with lower global
warming potential.
Our progress
Over the past 12 months, the Group’s relative
carbon footprint for Scope 1 and 2 location
based emissions increased by 2.2 per cent to
0.086 tonnes ofCO
2
e per tonne of sales.
Despite positive progress in a number of areas,
our progress has been hindered by changes
inemission methodology related to electricity
andoperational emissions.
Water intensity
While reducing our GHG emissions remains
akey priority for the business, we also recognise
the interconnected nature of environmental
sustainability and theimportance of addressing
other areas of concern. Therefore, our efforts
to preserve andrecycle water throughout our
operations remain a high priority and we are
actively investing in this area. Our hygiene
teams collaborate closely withsuppliers to
uncover viable options for improvement, such
as through the use of rinse-free disinfectant.
Our water intensity (excluding farms) has
decreased by 0.7 per cent with a longer-term
trend of 3.9 per cent reduction against our
2019/20baseline. The decrease in water
intensity ismainly driven by an increased focus
onwater usage inour manufacturing sites.
Our Milton Keynes site has been running
along-term water reduction project, which
hasreduced water intensity from 3.66 to 3.16
cubicmetres per tonne of product produced.
We have removed cooling towers from the site
and installed sub-metering toenable targeted
reduction plans to be implemented. Our Fresh
Poultry site also features an effluent treatment
plant to recyclewastewaterfor various
applications such asthewashingof the
vehicle fleet.
Energy intensity
Our overall energy intensity increased
duringtheyear by 0.8 per cent, as a result
oftheexpanded business activities within our
cooking operations, known for their higher
energy consumption.
Besides completely eliminating fossil fuels,
wealso acknowledge the significance of
near-term innovation, particularly in energy
efficiency. Throughout the year, we conducted
extensive audits across our food manufacturing
sites to identify opportunities that would
reduce energy consumption. We currently have
several projects in progress, exploring
opportunities for heat recovery across our sites,
withthe potential to yield substantial short-
term reductions.
Our approach to carbon offsetting
For the last two years we have offset all of
ourfood manufacturing operational emissions
bypurchasing carbon credits from carefully
selected offset projects from reputable
voluntarycarbon registries such as VERRA
andGold Standard, which aligned with our
widersustainability goals.
During the year, the ESG Committee made the
strategic decision to cease purchasing carbon
offsets and place the investment into an Internal
Carbon Innovation Fund to support projects
directly addressing our challenges and
supporting innovation which will reduce our
emissions across all three scopes. More details
ofthe projects undertaken will be highlighted
intheyear ahead.
PRODUCING RESPONSIBLY
Cranswick plc Annual Report & Accounts 2024
35
Strategic report
STRATEGIC REPORT
We are dedicated to the wellbeing and
prosperity of our people and communities,
our animals, and our suppliers. That means
helping our colleagues live more sustainably
at work andat home, as well asfighting
hunger inourcommunities byworking with
local charities.
Promoting inclusion
We actively promote and support diversity and
inclusion. We are committed toproviding
employment opportunities toindividuals from
disadvantaged and under-represented groups,
while creating afairand equitable workplace
for all ofour colleagues.
More information on our Diversity, Equity
andInclusion (DEI) strategy can be found
onpages 54 and 83.
Waste reduction and packaging
We continue to operate as a zero waste to
landfill business and have pledged zero edible
food waste by 2030. Total edible food
lossandwaste has decreased from 0.214 per
cent to0.153 per cent since FY18 baseline,
onalike-for-like basis. Absolute edible food loss
andwaste has decrease by 2.6 per cent which
has beendriven by a shift in the destination
ofour waste.
Our surplus food redistribution efforts
arealsoanimportant way in which we reduce
foodwaste and contribute to our communities.
Our first priority is supporting numerous
charities which are located near our key
manufacturing plants across the UK.
These include school breakfast clubs,
olderpeople’s lunch clubs, homeless shelters,
andcommunity cafés. Wealso work closely with
national food redistribution organisations such
as FareShare, Company Shop and the
Bread-and-Butter Thing. We are a FareShare
leading partner andthis year, we have
redistributed over 1.6 million meals (based on
420g of protein perserving), takingour total
tomore than 7.1million meals since 2017.
COLLECTIVELY & INDIVIDUALLY
LIVING BETTER
Task Force on Climate-related
Financial Disclosures (TCFD)
Details on our climate-related Governance,
Strategy, Risk Management as well as Metrics
and Targets are located inourTCFD disclosure
on pages 39 to 43 aswell as in the ESG
Committee report onpages 94 to 95.
Sustainability Accounting
StandardsBoard (SASB)
By adhering to SASB standards, we ensure
thatwe provide consistent and relevant
sustainability information that investors can
useto evaluate our performance and make
informed decisions. Details on our SASB
disclosure are located on pages 44 to 46.
Carbon Disclosure Project (CDP)
Transparently disclosing our environmental
performance has always been a key focus
ofCranswick’s Second Nature sustainability
strategy – doing so keeps us accountable
andencourages meaningful change across
ourentire industry. Details on our CDP
disclosure can be found at www.cdp.net.
OUR SUSTAINABILITY STRATEGY
CONTINUED
Coronation Food Project
During the year, we were proud to jointhe
Coronation Food Project, coordinated by
TheKing Charles III Charitable Fund.
The project tackles food waste and food
insecurity across the country by supporting
food redistribution charities, FareShare
andThe Felix Project. Cranswick provides
quality, protein-rich ingredients which are
usedto create complete, nutritious, healthy
meals for FareShare to distribute to front line
charities andcommunity groups in need.
More information on our food redistribution
work can be found on page 62.
Company Shop food redistribution
Company Shop is an award-winning
socialenterprise that helps people insome
of the most deprived communities in the UK,
by redistributing surplus products
andambient produce at a heavily reduced
cost. In addition, people who workin the
food industry have access to discounted
food which would have gone to waste.
As part of our partnership with Company
Shop, we established a pop-up shop for our
staff at our cooked meats site in Barnsley.
This gave our colleagues an opportunity
topurchase discounted groceries at their
place of work, in addition to the usual staff
sales that take place at the site.
Tackling modern slavery
We work diligently to ensure that people
throughout our supply chain are treated
withdignity and respect. This includes our
commitment to tackling modern slavery and
human trafficking in any part of our business
through the implementation and enforcement
of effective systems and controls. We also
monitor ethical standards on a regular basis,
both internally and through third-party audits.
We provide colleagues with regular training
onmodern slavery, backed-up by workshops
and awareness sessions. This year 1,391
colleagues in total have completed online
courses in modern slavery, up 10 per cent
onthe previous year.
Our Modern Slavery Statement has been
updated in line with the latest requirements
of section 54 of the Modern Slavery Act 2015.
For more details, see our Anti-Slavery Policy
at www.cranswick.plc.uk.
Cranswick plc Annual Report & Accounts 2024
36
STRATEGIC REPORT
Environmental Performance Data 2023/24^ 2022/23* Baseline*
Scope 1 emissions (tonnes CO
2
e) 84,875 83,407 89,074
Scope 2 emissions (location based) (tonnes CO
2
e) 39,537 35,083 42,059
Total Scope 1 and Scope 2 emissions (location based) (tonnes CO
2
e)
†
124,412 118,490 131,133
Total Scope 1 and Scope 2 emissions (market based) (tonnes CO
2
e) 93,335 90,947 98,172
Relative carbon footprint (location based) (tonnes CO
2
e/sales tonnes**) 0.086 0.085 0.122
Absolute energy use (kWh million) 512 494 370
Energy intensity (kWh/sales tonnes
**
)
†
355 353 345
Absolute water-use (m
3
millions) 2.77 2.56 2.04
Water intensity (m
3
/sales tonnes
**
) 1.92 1.83 1.91
Absolute water use (m
3
million) – excluding farms 1.75 1.73 1.42
Water intensity (m
3
/sales tonnes
**
) – excluding farms
†
1.48 1.49 1.54
^ 2023/24 includes one month of forecasted data.
* Baseline as well as historical data has been updated to reflect acquisitions of new sites, forecast to actual variances and methodology changes, including the calculations of non-mechanical
agricultural emissions.
** Sales tonnes includes intercompany sales, where products move between sites for further processing, as these sales best represent the activity of the business.
† Data for 2023/24 for Total Scope 1 and Scope 2 emissions (location based), Energy Intensity and Water Intensity excluding farms is subject to a Limited Assurance review by PwC. A copy of their
LimitedAssurance Opinion will be made available on our website, www.cranswick.plc.uk.
Scope 3 emissions are disclosed in Cranswick’s CDP report, which can be found at www.cdp.net.
Our progress is monitored through our established governance mechanisms, ensuring robust accountability and, if necessary, timely strategy updates.
For more information on our governance structure, refer to the TCFD disclosure on pages 39 to 43.
Relative carbon footprint
0.086 (tonnes CO
2
e/sales tonnes)
-29.5% vs. baseline
Location Based Emissions
124,412 (tonnes CO
2
e)
-5.1% vs. baseline
Energy Intensity
355 (kWh/sales tonnes)
+0.6% year-on-year
Water Intensity (excluding farms)
1 . 4 8 (m
3
/sales tonnes)
-0.7% year-on-year
Cranswick plc Annual Report & Accounts 2024
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STRATEGIC REPORT
STRATEGIC REPORT
Cranswick plc Annual Report & Accounts 2024
38
TASK FORCE ON CLIMATE-RELATED
FINANCIAL DISCLOSURES (TCFD)
1. Sustainability Governance Structure
Details of the Board’s and management’s role in oversight of climate-related risks and opportunities can be found in our overall sustainability
governancestructure diagram.
Key
Board level committees
Management level committees
PLC BOARD OF DIRECTORS
Holds overall responsibility for the oversight of our sustainability strategy
andobjectives, including annual planning and budgets as well as the approval
ofcapital expenditure addressingclimate-related risks and opportunities.
The Board is updated on climate-related issues at least three times per year
bythe ESG committee. Sustainability data is reportedto the Board quarterly.
ESG COMMITTEE
Committee meets at least three times per
year and manages the progress of our
Second Nature programme and responds
to climate-related risks and opportunities
identified, including identifying available
mitigating actions. Full details of activities
are detailed on pages 94 to 95.
AUDIT COMMITTEE
Supports the Board by considering and
assessing climate-related risks as part of the
quarterly reviewof principal and emerging
risks through theGroup Risk Committee.
For more details refer topages 96 to 100.
GROUP RISK COMMITTEE
Committee meets quarterly and oversees
the operation of the Risk Management
Framework and is responsible for directing
the Group towards identifying, assessing,
and mitigating principal andemerging risks,
including those associated with climate,
nature and sustainability.
ENVIRONMENTAL MANAGERS
Quarterly Group Environmental Managers
meetings are held with representation
foreach site and key Group stakeholders
who review climate-related legislation
anddiscuss specific actions taken by sites.
The meetings also ensure that site
environmental teams are on track to
complete theactions directed by both the
ESG and SecondNature Committees.
SECOND NATURE
STEERING COMMITTEE
Chaired by the COO and attended by
representatives from allaspects of the
business, thecommittee meets quarterly
toreview progressagainst action plan
anddrives the opportunitieshighlighted
through the sub-committees toreduce
ourclimate-related risks.
MANUFACTURING SECOND
NATURE COMMITTEE
Chaired by representatives from our
manufacturing sites, with key stakeholders
attending as needed, the committee meets
regularly toprovide direct updates to the
Second Nature Steering Committee,
regarding climate-related risks and
opportunities with a specific focus on our
manufacturing sites’ journey to Net Zero.
AGRICULTURAL SECOND
NATURE COMMITTEE
Chaired by representatives of our farming
businesses, withkeystakeholders attending
as needed, the committee isresponsible
forthe identification of climate-related
risksandopportunities with a specific
focusonour farming sites’ journey
to low carbon production.
REMUNERATION
COMMITTEE
Aligns the Group’s remuneration policy
toour Second Nature programme goals
andmonitors the executive remuneration
packages and incentive schemes.
Committee is also responsible for setting
targets which challenge and support
management in achieving sustainability
targets while maintaining shareholder value.
Refer to pages 105 to 111 for further detail.
Cranswick plc Annual Report & Accounts 2024
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Strategic report
STRATEGIC REPORT
TASK FORCE ON CLIMATE-RELATED
FINANCIAL DISCLOSURES (TCFD)
CONTINUED
2. Risk and Opportunity Management
2.1 Processes for identifying and assessing
climate-related risks.
Identifying risks and opportunities related
toclimate change is an integral part of our
sustainability programme, Second Nature,
andof our business continuity planning and
riskmanagement processes. To identify
climate-related risks and opportunities we have
undertaken climate scenario analysis which
isrefreshed every three years. The assessment
and management of these risks is embedded
into our enterprise Risk Management
framework, as summarised on pages 65 to 66.
The Board recognises the significant impacts
posed by climate change and these are
shownwithin the climate change principal risk,
seepage 69 for more information.
Following the identification of risks,
wedetermine materiality of a risk by
assessingthe likelihood of the risk occurring
and the magnitude of the potential impact.
When making this assessment, we consider
financial and non-financial consequences
toourbusiness model as well as available
mitigating actions that we could take to minimise
the impact of a risk. This helps us to categorise
and prioritise risks and to determine actions
needed to manage each risk.
We assess climate-related risks against a
numerical system using our climate change
riskmatrix, which determines if a risk is deemed
minor, moderate or severe. The matrix that
classifies these risks also identifies non-financial
strategic impacts based on the time horizon
ofthe lasting implications, reputation and
business unit impacted.
2.2 Processes for managing
climate-related risks.
The Group has a structured and mature
approach to risk management which is
integrated into a multi-disciplinary Company-
wide risk management process to facilitate
theidentification, evaluation and mitigation
ofkey risks facing the business.
The day-to-day management of climate-related
risks and opportunities is undertaken by several
key internal stakeholders, including our risk
andESG teams. The Second Nature steering
group conduct quarterly reviews of risks and
opportunities which may impact on our ability
to deliver our action plans and direct operations.
The ESG Committee are specifically
responsible for identifying, managing,
andmitigating climate-related risks. There is a
short-term focus to identify new andemerging
climate-related risks.
2.3 Integration of climate-related risks
into the overall risk management.
Risk management processes have a long-term
focus through quarterly reviews of risks which
have a direct impact on operations from broad
sustainability issues. All risks are captured
inacorporate risk register with appropriate
mitigation listed alongside. Business continuity
planning ensures risks and mitigation measures
and any impacts from short-term sustainability
risks are incorporated into the business
continuity planning process and procedures.
Where necessary climate-related mitigation
strategies and assurances are agreed and
monitored on a regular basis. Each year the
Board reviews and challenges climate-related
risks and assesses their potential impact on the
business model, strategy, stakeholders,
and performance.
Transition risks
Physical risks
Risk impact
Time horizon
Short-term 2024–2029 Medium-term 2030–2040 Long-term 2041+
1
3
2
9
4
5
8
7
Minor Moderate Severe
1
Availability of commodities (e.g. soy)
2
Increasing carbon prices
3
Increasing regulation impacting
manufacturing operations and
supply chains
4
Increasing heat stress levels
5
Increasing water stress levels
6
Extreme weather events (e.g. flooding)
7
Rising sea levels
8
Deforestation within the supply chain
9
Loss of natural habitats and reduction
in biodiversity
Material climate risks
6
Minor Moderate Severe
Financial <5 per cent adjusted operatingprofit,
orminor capital expenditure
>5 per cent to 20 per cent adjusted
operatingprofit, or moderate increase
incapital expenditure
>20 per cent adjusted operating profit,
orsignificant increase in capital expenditure
Strategic Minimal change in strategy Considerable strategic change Significant change in strategy
Reputational
impact
No public concern, or minimal
publicawareness National public concern International public concern
Cranswick plc Annual Report & Accounts 2024
40
STRATEGIC REPORT
3. Strategy
3.1 Identified climate-related risks
andopportunities.
We treat climate change as an ongoing issue
and therefore chose three separate time
horizons to allow us to model the Group’s
immediate and long-term vulnerability to
various risks and identify opportunities in
multiple future scenarios. This year, we updated
the time horizons to better align with our
enterprise risk management and business
planning cycles and drive strategic decision-
making in the business more closely.
• Short-term (0-5 years) – covers operational
planning and goal setting phases, aligned
toour business planning cycles.
• Medium-term (5-15 years) – allows us to assess
the impact beyond our immediate business
planning and prepare for upcoming risks
and opportunities.
• Long-term (15+ years) – enables us to form
along-term view of the potential impact
ofclimate-related risks and opportunities
onthe Group while still acting as a powerful
driver for strategic decision-making.
Two separate climate scenarios are chosen –
1.5°C and 4°C. The 1.5°C scenario aligns with
ourScience Based Targets (SBT) reduction
commitments and entails greater transition risk,
enabling evaluation of short-term impact on the
Group, whilst the 4°C scenario has higher
physical risks, and allows us to assess the
long-term impact on the business.
This year we reviewed our existing climate-
related risks and opportunities with a wider
group of internal stakeholders to gain a deeper
cross-functional understanding, and to further
refine the materiality of each risk to the
business. Through this work we adjusted the
severity of the following risks:
Availability of commodities (previously referred
to as Rising prices of commodities), Carbon
Pricing, Heat stress, Water stress, Extreme
weather, Deforestation and Biodiversity.
Details of how we historically rated these risks
can be found in our 2022 and 2023 Annual
Reports at cranswick.plc.uk.
We have also consolidated risks in line with our
existing risk management framework, which sees
our previously reported risks of dietary trends
and reputation encompassed in the relevant
associated principal risks (see pages 69 to 70 for
further information) and our renewable energy
risk encompassed within the carbon pricing risk.
During this assessment, additional risks
wereexamined and determined to be either
insignificant or already covered within other
primary risks. For further detail on principal
risks, refer to pages 68 to 72.
The following physical risks were identified as
having the most significant impact on the Group:
Sea level rise – there is a risk of rising sea levels,
which could impact some of our manufacturing
sites and farms which are located around Hull
and East Anglia.
• Mitigation – flood protection systems are
used at high risk locations. New production
sites in Hull have been built with a minimum
600mm flood clearance within the
foundations. We continue to review our
supply base to ensure we have multiple
supplier options to cover the eventuality
where any key supplier sites are flooded
forextended periods.
Cranswick plc Annual Report & Accounts 2024
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Strategic report
STRATEGIC REPORT
TASK FORCE ON CLIMATE-RELATED
FINANCIAL DISCLOSURES (TCFD)
CONTINUED
3. Strategy (continued)
Water stress – as we are a relatively large user
of water for both hygiene reasons and livestock
consumption, water stress may lead to
additional costs to access a reliable water
source and could also restrict water supply.
• Mitigation – we have water storage on our
poultry farms for emergency situations
andalso some poultry farms have rainwater
harvesting systems in place that allow us
to preserve water. We are also investigating
water recycling technology at pig farms and
current water reduction projects include
moving to nipple drinkers for pigs.
Soil stewardship work is underway for
long-term water loss mitigation at the pig
farms. On a wider level, we are a signatory
ofthe Courtauld 2025 Water Ambition
partnership, working to improve water
efficiency in key sourcing areas to help
reduce water stress and return water back
tocommunities and nature. As part of this
weare helping fund the WRAP water
stewardship collaborative action project
inthe Andalusia, Murcia and Valencia areas
ofSouthern Spain which are key sourcing
areas for some of our raw materials. In 2024,
we will further develop this work by directly
engaging with our suppliers in the mentioned
areas to drive them to take direct action, such
as establishing water reduction targets for
those that do not already have them in place
and encouraging them to sign up to local
water management and reduction projects.
Heat stress – we place a strong emphasis
onanimal welfare and pursue industry leading
standards across our farms and supply chains.
However, there is a chance of increasing
frequency of heat waves which could result
inhigher mortality rates and increasing
cooling costs.
• Mitigation – we have ventilation systems
inplace within our poultry sheds and an
increasing number of our poultry sheds
utilise evaporative cooling and/or misting
systems which can reduce temperature by
4–5°C. Pig huts are insulated and have vents
that allow our farmers to manage airflow.
We monitor the weather and transport birds
at cooler times of the day. Similarly, we feed
pigs in the early morning to allow digestion
before the heat rises.
Biodiversity – loss of natural habitats and
reduction in biodiversity is expected to cause
areduction in the number and diversity
ofpollinators, which in turn could affect food
security, with potential losses in agricultural
yields. Due to the criticality of biodiversity loss,
we anticipate regulation in this area to
move rapidly.
• Mitigation – we are currently working to
understand and align the Group with
theTaskforce on Nature-related Financial
Disclosures (TNFD) recommendations by
gaining a more thorough understanding
ofour biodiversity risks, impacts and
dependencies. In addition, we are currently
completing projects on our farms which
promote improvement in biodiversity levels
and restore and regenerate the local area.
We work collaboratively with partners such
as WWF and The Rivers Trust on projects
tohelp drive the restoration of the
natural world.
The following climate-related opportunities
were identified as having the most significant
impact on the Group:
Demand – Growth in demand as we meet
customer requirements for low carbon/
sustainable products.
• Shifting dietary preferences represents
anopportunity to the Group that we
continue tomonitor closely. We have already
diversified our product portfolio to include
products such as houmous, pulses and
grains, falafel, olives and antipasti.
Operational – Reduced operational costs
dueto energy efficiencies.
• Increasing demand and focus on on-site
renewable energy sources, such as solar
andwind, coupled with our expanding efforts
in operational efficiency, creates favourable
conditions to reduce risk and costs across
thebusiness. In order to achieve our targets,
we invested in a range of sustainability
initiatives, including upgrading to more
energy efficient equipment, installing solar
panels, self-generating electricity,
andsourcing all the Group’s grid electricity
provided to manufacturing sites from
renewable sources.
Biodiversity – Improved ecosystem and
restored biodiversity levels.
• We are gathering a deeper level of data across
our farms and production facilities to monitor
our biodiversity performance better.
This includes undertaking Biodiversity
Baseline Surveys to establish an ecological
baseline for measuring any enhancement
programmes we implement to increase
theBiodiversity Net Gain (BNG) of our sites.
We are exploring the opportunity to develop
owned land to restore and regenerate local
biodiversity and increase habitats.
Most biodiversity loss associated with
Cranswick sits in our supply chain and
wehave an opportunity to help drive change
byworking with our suppliers to reduce
deforestation, report accurate emissions
data, support and encourage them to
reducewater wastage and water pollution
and toidentify and reverse the negative
impactsonecosystems and biodiversity.
Cranswick plc Annual Report & Accounts 2024
42
STRATEGIC REPORT
3.2 Impact of climate-related risks and
opportunities on Cranswick’s strategy
andfinancial planning.
We see business planning, strategy,
development, and financial analysis as
acontinuous and evolving process, which not
only depends on actions taken by us as a
business, but by the developments in the global
economy as well. Climate-related risks and
opportunities identified in the present day are
expected to change over time, and therefore
we remain aware of how these risks are
prioritised and what outcomes are expected
tobe material in the future. Insights from
climate risk mapping and scenario analysis are
used by the Board to prompt discussion,
challenge thinking and make informed strategic
decisions when evaluating a short-term
business plan and when examining different
long-term strategic and investment options.
The Group’s financial planning mainly focuses
on a three-year period due to the fast-moving
nature of the food industry and the current
financial and operational forecasting cycles
ofthe Group. It considers the current position,
future prospects and the potential impact of
the principal risks, including climate-related
risk, to the Group’s business model and ability
to deliver its strategy.
A key strategic decision that has been
implemented is the transition away from
uncertified soya. In 2021, we began to
transition the poultry feed and by 2022 we
hadachieved 100 per cent full mass balance
certified soya. We alsobegan to transition
ourpig feed, which was conducted in stages
bymoving initially to regional mass balance
certified soya in 2022, with the ambition
oftransitioning to full mass balance soya
bytheend of 2024. Due to the complexity
ofthe supply chain associated with pig feed,
weachieved 83 per cent of all soya in owned
animal feed as full mass balance certified with
the remainder being regional mass balance.
In 2024, we continued this work and remain
committed to transitioning theremainder
bythe end of 2024. This work allows ustobegin
to realise the climate-related opportunities we
have identified: increase indemand for
sustainable products, and reduced impact on
biodiversity. The impact ofthis transition does
incur additional costs compared to non-
certified soya but the cost ofthis has been
considered within strategic financial planning,
with capital and cash flow managed accordingly.
3.3 Resilience of the
organisation’sstrategy.
Environmental issues and climate change have
the potential for significant impact on our
business. In anticipation of these issues and
inline with the Task Force on Climate-Related
Financial Disclosures (TCFD)
recommendations, we continuously re-assess
and manage long-term climate risks and
opportunities. In 2022, we assessed long-term
mean temperature rise and water stress risks
and opportunities against Intergovernmental
Panel on Climate Change (IPCC) and
International Energy Agency (IEA) scenario
models. In 2023, we assessed sea level rise
andthe disruption to the availability of
agricultural commodities. Detailed analysis
canbe found inour 2022 and 2023 annual
reports at www.cranswick.plc.uk.
We have committed to conducting scenario
analysis at least every three years as one aspect
of our management and assessment of climate
and nature-related risks and impacts. Our next
scenario analysis is planned for 2025 and will
focus primarily on transition risk.
Our scenario analysis process, continual
monitoring of climate and nature-related risk,
and mitigation against potential impacts on our
business, combined with our robust governance
structure and Second Nature programme,
allowus to ensure the resilience of our strategy
intheface of both a high carbon scenario where
physical risks would be of the most significant
concern and a low carbon scenario where
transition risks would be most prevalent.
4. Metrics and Targets
Our environmental metrics can be found
onpage 37. These measure our performance
against our targets and assess our progress
inrelation to climate-related risks
and opportunities.
We have set key targets to measure our
performance against the impact of climate
change. Our main targets are:
• 50 per cent absolute reduction in Scope 1
and 2 emissions by 2030 with a baseline year
of 2020.
• 50 per cent relative reduction in Scope 3
emissions by 2030 with a baseline year
of 2020.
• 5 per cent year-on-year reduction in energy
intensity (kWh/tonnes sold).
• 5 per cent year-on-year reduction in water
intensity (m
3
/tonnes sold) excluding farms.
• 100 per cent of soy for owned pig farms to
befullmass balance (FMB) RTRS certified
byDecember 2024 in line with the
achievement of100 per cent FMB on owned
chicken farms.
These targets and commitments build on
theactions taken in previous years to generate
positive impacts across both the Group and
ourentire value chain.
5. Compliance Statement
We comply with the FCA’s listing Rule 9.8.6R(8)
and make disclosures consistent with the Task
Force on Climate-Related Financial Disclosures
(TCFD) recommendations across all four of the
TCFD pillars. We also disclose in alignment with
the Companies (Strategic Report) (Climate-
related Financial Disclosure) Regulations 2022.
We are currently reviewing the
recommendations of the Taskforce on
Nature-related Financial Disclosures and their
implications for our business.
A full mapping of our TCFD and CFD
alignment can be found at
http://www.cranswick.plc.uk.
Cranswick plc Annual Report & Accounts 2024
43
Strategic report
STRATEGIC REPORT
SUSTAINABILITY ACCOUNTING STANDARDS
BOARD (SASB) DISCLOSURE
SASB disclosure
Measuring environmental performance
We are committed to reporting our environmental performance against the Meat, Poultry & Dairy Sustainability Accounting Standards published
bytheSustainability Accounting Standards Board (SASB). The table below lists the topics under this standard and the accounting metrics applicable
andmaterial to us that we have disclosed against for the financial year.
SASB standard Our accounting metrics
Greenhouse gas
emissions
Gross global Scope 1 emissions
FB-MP-110a.1
2023/24 Scope 1 emissions: 84,875 tonnes CO
2
e including non-mechanical
agricultural emissions (2023: 83,407 tonnes CO
2
e). Further disclosures
ongreenhouse gas emissions can be found on pages 35 and 37.
Long-term and short-term strategy
orplan to manage Scope 1 emissions,
emissions reduction targets, and
ananalysis of performance against
thosetargets
FB-MP-110a.2
We have committed to Net Zero greenhouse gas (GHG) emissions across our
operations by 2040. To help achieve this, we have committed to Science Based
Targets (SBT) for Scope 1, 2 and 3 emissions in line with efforts to limit global
warming to 1.5°C under the Paris Agreement. Further information on our strategy,
targets, plans and progress can be found on pages 31 to 37.
Energy management (1) Total energy consumed,
(2)percentage grid electricity,
(3)percentage renewable
FB-MP-130a.1
2023/24 Absolute energy use: 512 million kWh (2023: 494 million kWh).
31 per cent of this was supplied from grid electricity (2023: 31 per cent).
31 per cent of the absolute energy use was renewable energy (2023: 30 per cent).
Water management (1) Total water withdrawn,
(2) total waterconsumed,
percentageofeach inregions with
Highor ExtremelyHigh Baseline
WaterStress
FB-MP-140a.1
Total water withdrawn: 2.77 million m3 (2023: 2.56 million m3). 1.6 per cent
of this was from an area of high baseline water stress (2023: 1.7 per cent).
Total water consumed: 1.36 million m3 (2023: 1.58 million m3). 0.5 per cent
of this was from an area of high baseline water stress (2023: 0.6 per cent).
Description of water management
risksand discussion of strategies
andpractices to mitigate those risks
FB-MP-140a.2
Water is vital to our production processes, agricultural operations and our supply
chain. During the year, we continued to use the WWF Water Risk Filter to establish
our operational and basin risk. We are also on the oversight panel of the WRAP
Water Stewardship Roadmap that helps us to explore risks associated with water
management as part of our analysis of our climate change risk.
We have also installed a Reverse Osmosis Effluent treatment plant at the Eye
facility. This allows us to return effluent as potable water which can be reused in
ouroperations. During the year, 189,093m3 of water was reused using the new
treatment plant (2023: 195,233m3).
Our production facilities have been set a target to reduce water intensity by
5percent year-on-year against a 2019/20 baseline. We have updated our Water
Policy during the year which pursues a number of objectives in relation to water.
This can be found at www.cranswick.plc.uk.
Number of incidents of non-compliance
with water quality permits, standards,
andregulations
FB-MP-140a.3
During FY24 there were zero incidents of non-compliance with water quality
permits, standards and regulations (2023: zero).
Land use and
ecological impacts
Amount of animal litter and
manuregenerated, percentage
managedaccording to a nutrient
management plan
FB-MP-160a.1
All our pig and poultry manure and litter is managed under a nutrient management
plan in accordance with the Red Tractor and Environment Agency’s guidance.
‘Straw for muck’ arrangements are used, which ensures manure is utilised by local
arable farmers for their crops in return for plentiful straw which supports
animalwelfare.
Animal protein production from
concentrated animal feeding
operations(CAFOs)
FB-MP-160a.3
80 per cent of pork produced on Cranswick-owned farms is certified to RSPCA
standards and 100 per cent to Red Tractor standards.
99 per cent of poultry is produced in line with Red Tractor standards.
Both of the above welfare standards have a stocking density that is a requirement
rather than a recommendation. We operate in line with the required stocking
densities as all our farms are accredited to either RSPCA or Red Tractor standards.
Cranswick plc Annual Report & Accounts 2024
44
STRATEGIC REPORT
SASB standard Our accounting metrics
Food Safety Global Food Safety Initiative (GFSI)
audit(1) non-conformance rate and
(2) associated corrective action rate
for(a) major and
(b) minor non-conformances
FB-MP-250a.1
The GFSI programme used is the BRCGS Food Safety Standard and BRCGS
Storage and Distribution Standard. 19 facilities have a BRC graded A or above
(2023: 17). The non-conformance rate is defined as the total number of
non-conformances identified divided by the number of facilities audited. The rate
for major non-conformances was zero and for minor non-conformances was 3.68
(2023: 2.85). The corrective action rate is calculated by taking the number of
corrective actions divided by the total number of non-conformances, and for major
non-conformances was zero and for minor non-conformances was 100 per cent.
Percentage of supplier facilities
certifiedto a (GFSI) food safety
certification programme
FB-MP-250a.2
100 per cent of our animal protein suppliers are certified to a GFSI programme.
None of our independent producers are currently certified to a GFSI programme.
17 of our production and two non-production facilities are certified to BRC.
(1) Number of recalls issued and
(2) total weight of products recalled
FB-MP-250a.3
During FY24, there were three food safety-related recalls issued (2023: two)
totalling to 6.7 tonnes.
In response to these recalls, we have implemented additional food safety checks
and created additional internal training programmes.
Discussion of markets that ban imports
ofthe entity’s products
FB-MP-250a.4
There were no markets that banned imports of Cranswick products during the year.
In October 2020, we voluntarily suspended our export licence to China from our
Norfolk facility, which followed spikes of COVID-19 in communities in which we
operated. This suspension remains in place pending recertification of the facility.
Antibiotic Use
in Animal Production
Percentage of animal production
thatreceived (1) medically important
antibiotics and (2) not medically
important antibiotics, by animal type
FB-MP-260a.1
We are working with the industry to ensure that best practice is used on all species
from all our suppliers and that antibiotics are only prescribed when absolutely
necessary. Our objective is the reduction and avoidance of antibiotics for
prophylactic use across all our supply base.
We are also monitoring the use of antibiotics in our own herds and flocks with a view
to reducing the amount administered without compromising animal welfare.
The average antibiotic use across our three pig farming businesses in 2023/24
was68.3mg/pcu and across our poultry farms was 9.0mg/pcu.
Responsible Use of Medicines in Agriculture Alliance’s (RUMA) target for 2024
is73mg/pcu for pigs 25mg/pcu for poultry.
Workforce Health
and Safety
(1) Total recordable incident rate
TRIR) and
(2) fatality rate
FB-MP-320a.1
2023/24 Total recordable incident rate: 1.56 (2023: 1.77).
2023/24 Fatality rate: 0.00 (2023: 0.00).
Rates have been calculated in line with SASB guidance. For more information
onouraccident data, see health and safety on page 54.
Description of efforts to assess,
monitor,and mitigate acute and
chronicrespiratory health conditions
FB-MP-320a.2
Our efforts to assess, monitor and mitigate acute and chronic respiratory health
conditions are wide ranging. We have invested in dust extraction systems for
welding, and for flour and other ingredients, which are also monitored through
third-party inspections. We also have dust extraction tables for engineering
workshops. Where extraction is not possible, filter masks and respirator masks
areused. Our standard operating procedures instruct our colleagues and site
audits are undertaken to ensure effective systems are in place for respiratory
health. Spirometry testing through third-party occupational health services
isalsoundertaken. Further information on wider health and safety practices
canbefound on page54.
Cranswick plc Annual Report & Accounts 2024
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STRATEGIC REPORT
SASB standard Our accounting metrics
Animal Care
& Welfare
Percentage of pork produced without
the use of gestation crates
FB-MP-410a.1
100 per cent of the pork that originated from Cranswick-owned farms
wasproduced without the use of gestation crates (2023: 100 per cent).
96 per cent of total pork produced was without the use of gestation crates
(2023:96 per cent). This scope covers our EU third-party suppliers. We work
closely with all our suppliers to improve welfare standards.
Percentage of production certifiedto
athird-party animal welfarestandard
FB-MP-410a.3
Cranswick owned farms
80 per cent of pork produced is certified to RSPCA standards and 100
per cent to Red Tractor standards.
100 per cent of poultry produced in line with Red Tractor standards.
Wider supply chain
35 per cent of pork produced is certified to RSPCA standards (2023:34percent),
90 per cent to Red Tractor standards (2023: 88 per cent) and20percent to other
recognised EU welfare schemes (2023: 22 per cent).
4 per cent of poultry purchased is certified to RSPCA standards
(2023:13percent), 75 per cent to Red Tractor standards (2023: 59 per cent)
and25 per cent to other recognised EU welfare schemes (2023: 29 per cent).
Cranswick also sources poultry meat from suppliers both in the UK and in Europe.
100 per cent of the poultry meat sourced from the UK is assured to Red Tractor
standards.
100 per cent of poultry sourced from the EU comes from farms assured to national
recognised schemes such as QS and IKB.
Environmental
& Social Impacts
of Animal
SupplyChain
Percentage of supplier and contract
production facilities verified to meet
animal welfare standards
FB-MP-430a.2
100 per cent of our meat, fish and egg suppliers are accredited to a national
recognised farm assurance scheme or their welfare standards have been
verified by a trained animal welfare officer against a recognised scheme or
an in-house scheme.
Animal & Feed
Sourcing
Percentage of animal feed sourced
fromregions with High or
ExtremelyHighBaseline Water Stress
FB-MP-140a.1
We are working with industry bodies such as the Soy Transparency Coalition
toovercome transparency challenges in the production of soya. With more visibility
in the supply chain, we can ensure the supply of animal feed is more sustainable.
Percentage of contracts with producers
located in regions with High or
ExtremelyHigh Baseline Water Stress
FB-MP-140a.2
Less than 1 per cent of contracts are with producers that are located in regions
with high or extremely higher water stress (2023: <1 per cent).
Discussion of strategy to manage
opportunities and risks to feed
sourcingand livestock supply
presentedby climate change
FB-MP-140a.3
We have already taken many actions in order to manage the risks to livestock supply
identified to date. We have invested in new buildings that are climate controlled
across our indoor farms and new sow huts that are thermally insulated, which
reduces the temperature range within them. Automatic ventshave been
incorporated that operate when the temperature rises above a certain point. We
are also working hard to reduce our reliance on imported soya and lower the risks
associated with feed sourcing. This includes reducing the inclusion rateof soya in
our feeds and investing in replacements to become more self-sufficientin this area.
SUSTAINABILITY ACCOUNTING STANDARDS
BOARD (SASB) DISCLOSURE
CONTINUED
Cranswick plc Annual Report & Accounts 2024
46
STRATEGIC REPORT
As a Board, we continue to operate in a balanced and responsible way
and make decisionsfor the long-termsuccess of the business.
OUR PEOPLE
We understand that our wide range of
stakeholders are fundamental to the long-term
growth and success of the Group. We interact
regularly with various stakeholder groups,
which allows us to include their respective
needs and expectations into the key decision
making. We have summarised our engagement
with key stakeholders during the year below.
Detailed review of our stakeholders
and engagement activities is covered
on pages 82 to 83.
Our people are at the heart of our business
and help us to achieve the successful delivery
ofour strategy.
Our primary area of focus encompass
fosteringadiverse, equitable, and inclusive
workplace,providing ample opportunities
fordevelopment, and ensuring fair
compensation for all employees.
Read more on pages 51 to 54
Why we engage
• Consistent interaction with our colleagues
drives performance and cultivates an
environment where our colleagues feel
supported and fulfilled.
• By actively engaging with our employees,
both the Board and management gain
insights into the Group’s culture, enabling
usto prioritise their concerns and integrate
their perspectives into our decision-making
processes at the Group level.
How the Company engages
• Regular staff surveys, which include
questions relating to the effectiveness
ofourgrievance mechanisms and Diversity,
Equity and Inclusion (‘DEI’),areconducted
togather feedbackandinsights
from employees.
• The Group maintains a dynamic ‘Flavour’
intranet site and newsletter, providing
employees with updates, news, and
relevant information.
• An effective appraisal process is in place,
allowing for structured discussions and
feedback sessions between employees
andtheir managers.
• Works councils serve as platforms for
opendialogue and collaboration between
management and employees. 20 of our
siteshave works committees, only threeof
which are unionised or have a collective
bargaining agreement.
How the Board engages
• Employees have the opportunity
toparticipate in one-to-one meetings
withadedicated Non-Executive Director,
providing a direct channel for communication
and addressing individual concerns
or feedback.
• The Board conducts frequent factory
visits,fostering direct engagement with
employeesat the operational level and
gaining first-hand insights into their
experiences and challenges.
• The Board regularly analyses food safety
andhealth and safety data, ensuring the
ongoing priority of safeguarding colleagues.
Key actions taken
• Given the cost-of-living crisis, we reviewed
our pay review process, increasing the
average pay award to employees in line
withthe inflationary pressures.
• We increased the pension contribution
rateavailable to the wider workforce
to10per cent of salary through the
introduction ofan improved matching
contribution scheme.
• We progressed individuals who have
completed Cranswick’s graduate
programmeto management positions
andwefurther welcomed our new cohort
ofgraduates intothe business through
ourgraduate programme.
• Although we already had well-established
training programmes, a shortage was felt
inour middle management layer of operations.
As aresult, we introduced home grown
training programmes consisting of business
improvement and people projects.
• Celebrating dedication and commitment
within our workforce through the GEM
Awards, which exemplify our ethos
ofrecognising individuals who consistently
go‘over and above’ in their roles,
contributing significantly to our success.
Board Activities
The key activities of our Board are set
outintheCorporate Governance Report,
whichincludes a summary of the key decisions
made and the stakeholders considered.
Read more about our Board Activities
on pages 84 to 90.
OUR STAKEHOLDERS
SECTION 172(1) STATEMENT
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47
Strategic report
STRATEGIC REPORT
CUSTOMERS &
CONSUMERS
PRODUCERS &
SUPPLIERS
We are working together with our customers
and consumers to understand key demands
and to further improve customer satisfaction.
The key priorities for customers and
consumersencompass high-quality products
and consistent service levels aswellas socially
and environmentally responsible
purchasing decisions.
Read more on pages 55 to 56
Why we engage
• Regular engagement allows us to build
trustworthy and long-lasting relationships and
to deliver innovative high-quality products.
By working closely with suppliers who share our
values and beliefs, we can focus on food safety,
technical integrity, provenance and, ultimately,
produce high-quality products. Our key
priorities include ensuring aresponsible
supply chain, fostering opportunities for
additional growth, ensuring prompt payment,
and maintaining fair terms and conditions.
Read more on pages 57 to 59
Why we engage
• Suppliers play a pivotal role in our operations,
making them essential partners in achieving
our objectives.
• By actively involving them, we integrate
environmental principles and practices
throughout the supply chain.
• Our responsible sourcing commitment
issolidified through close collaboration
andpartnerships with our suppliers.
How the Company engages
• Key teams, including product development,
technical, agricultural, and sales, collaborate
to ensure cross-functional communication
with customers.
• Online surveys are conducted to gather
feedback and insights directly from customers.
• In-store interviews provide opportunities
forface-to-face interactions with customers
and consumers, allowing for in-depth
discussions and feedback collection.
• Customer audits are carried out frequently,
both announced and unannounced.
• Focus groups are organised to facilitate
structured discussions and gather detailed
feedback on specific products or services.
How the Board engages
• Monthly updates on market insights are
provided to the Board to inform category
plans and new product pipelines, aligning
with consumer needs.
• Chief Commercial Officer (CCO) maintains
regular communication with key customers
and provides Board updates on progress
todate and any issues.
• Review updates on supply chain risk, identified
potential impacts on service levels, and
explored opportunities for collaboration with
customers to mitigate any adverse effects.
How the Company engages
• Conducts supplier surveys to gather
feedback and insights on their experiences
and satisfaction levels.
• Utilises Sedex, a platform for sharing ethical
and responsible sourcing data, to collaborate
transparently with suppliers.
• Participates in industry events and forums,
providing opportunities for networking,
collaboration, and knowledge-sharing
with suppliers.
• Conducts regular audits and visits to supplier
facilities, ensuring compliance with quality
standards and fostering strong relationships.
• Implements supplier policies to outline
expectations, standards, and guidelines
forethical and sustainable practices
throughout the supply chain.
How the Board engages
• The Board engages in discussions regarding
the Group’s performance at each meeting
and stays informed about the supply chain
through regular updates throughout
the year.
• Updates on principal risks associated with
the supply chain are provided through the
Audit and Risk Committee.
• The Board receives reports on raw material
procurement, potential challenges, and
mitigation measures to minimise disruptions.
Key actions taken
• We continue to focus on new product
development to address emerging consumer
trends. This ensures that the Group remains
competitive and meets the changing
preferences of its customers and consumers.
• We engaged with our customers to provide
assurance over the stability of Cranswick’s
supply in response to the global supply chain
challenges to ensure no or minimal disruption.
• We are committed to maintaining high
service levels, ensuring that customers
receive their orders in a timely manner
andare satisfied with the quality of
service provided.
• We remain dedicated to maintaining
ourreputation as a high-quality manufacturer,
prioritising food safety and health and
safety standards.
• We continue to invest in automation
andimplemented improvements in factory
performance to increase efficiencies
andenhance capabilities.
• It also maintains oversight of our Responsible
Sourcing strategy, commitments, and
advancements through our ESG Committee.
Key actions taken
• This year we continued supplier mapping,
withmost of our suppliers now being fully
onboarded onto our supplier system,
whichallows us to receive and give timely
feedback, ensuring a more agile
andreactive relationship.
• We regularly engaged with our suppliers to
understand their sustainability journey and
identify areas where our values and actions
can align.
• We also held our first Cranswick procurement
summit this year, discussing the
opportunities to innovate, grow businesses
and develop relationships.
• We continue to undertake supplier audits
toensure the safety, traceability, quality
andprovenance of the raw materials and
ingredients we use. We work with suppliers to
ensure that animals are cared for to the same
standard as at Cranswick.
• The purchasing team kept in regular contact
with our critical suppliers to identify potential
supply chain issues early and to ensure that
mitigations and contingencies were in place
across the whole supply chain.
• We also made further investments into
farming operations, ensuring the stability
of supply.
OUR STAKEHOLDERS
SECTION 172(1) STATEMENT CONTINUED
Cranswick plc Annual Report & Accounts 2024
48
STRATEGIC REPORT
NGOS
COMMUNITIES
We work with various non-governmental
organisations (NGOs) including the
Agricultural and Horticultural Development
Board (AHDB), the British Poultry Council
(BPC), WRAP (Waste and Resource Action
Programme), Red Tractor and the RSPCA.
Read more on pages 60 to 61
We believe that the long-term success
ofourbusiness is closely tied to the success
ofthe communities in which we operate.
Local communities have an expectation
thatbusinesses operate ethically, safely
andsustainably, as well as contributing
tothefurther development of a local area.
There is an additional focus placed on food
producers who act as enablers, to reduce
edible food waste and increase food
redistribution throughout the community.
Read more on pages 62 to 63
Why we engage
• Close collaboration with NGOs allow
ustohelp set policies and improve
industry standards.
How the Company engages
• Directors and managers actively participate
in steering committees, industry groups,
andboards, fostering collaboration and
dialogue with NGOs on key issues.
• Trials new standards, in partnership with
NGOs, seeking to establish and implement
best practices in sustainability and
corporate responsibility.
• Participates in industry events alongside
NGOs, facilitating networking opportunities
and discussions on pressing environmental
and social matters.
• Utilises digital platforms and social media
channels to share important information
andupdates with NGOs, fostering
transparency and communication.
• Incorporates feedback and
recommendations from NGOs into corporate
policies and practices, ensuring alignment
with ethical and sustainable principles.
Why we engage
• Through cooperation with local communities,
we create greater social, environmental and
economic value.
• As a food manufacturer, we recognise the
significance of our manufacturing operations’
impact on the environment. Our Second
Nature strategy allows us to measure and
manage our carbon footprint, aligning with
our Net Zero goals.
• We are dedicated to empowering individuals
to advocate for their beliefs. Through the
Cranswick Charitable Trust, we are committed
to further supporting communities in need.
How the Company engages
• Supports food bank donations, contributing
to local efforts to alleviate hunger and
support vulnerable individuals and families.
• Collaborates with local schools and
universities, providing educational
opportunities, mentorship programmes, and
resources to support student development.
• Offers employment opportunities to
members of the community, promoting
economic growth and stability.
How the Board engages
• The Board regularly seeks updates
ontheoutcomes from the meetings and
consultations with key NGO representatives,
which allows the Board to understand key
concerns and integrate them into strategic
decision-making processes.
• Board members participate in industry
events and forums where NGOs are present,
fostering dialogue and partnership
opportunities on shared objectives.
• By incorporating NGO feedback and
recommendations into corporate policies
andpractices, the Board demonstrates
itscommitment to ethical and sustainable
business practices.
Key actions taken
• During the year, we have contributed towards
setting policies that help to direct the future
of the pork and poultry industries.
• Participated in industry-specific forums and
events, fostering dialogue and partnership
opportunities with NGOs to promote
sustainable practices and ethical sourcing.
• Participates in local projects aimed at
improving infrastructure, environmental
sustainability, and community wellbeing.
• Organises charity fundraising events and
initiatives, mobilising employees and
community members to support causes
thatpositively impact the local area.
How the Board engages
• The Board receives reports on the
keyinitiatives considered by the ESG
Committeeand the activities of the
Cranswick Charitable Trust from members
ofthe SeniorManagement Team.
• Climate-related issues are integrated into
theGroup’s long-term strategy, informing
investment decisions made by the Board.
Key actions taken
• We have partnered with a number of
organisations such as FareShare, through
which we can assist people in need, tackle
food poverty and the cost of living crisis.
• We are also involved in a number of local
projects to provide sponsorship, education,
mentoring and employment to those who
need it in our communities.
Cranswick plc Annual Report & Accounts 2024
49
Strategic report
STRATEGIC REPORT
SHAREHOLDERS
We focus on sustaining fair, balanced and
honest relationships with our Shareholders
aswe strive to deliver the long-term
success of Cranswick.
Read more on page 64
Why we engage
• Our aim is to educate Shareholders about the
Group’s purpose and strategy, while yielding
consistent returns over the long-term.
How the Company engages
• Issues regular announcements and press
releases to keep Shareholders informed
about significant events and milestones.
• Maintains an informative website where
Shareholders can access relevant
information, including financial reports,
corporate governance documents, and
investor presentations.
How the Board engages
• Hosts an Annual General Meeting (AGM)
toprovide Shareholders with updates
onCompany performance, strategy, and
governance matters.
• Approves the Annual Report and Accounts
aswell as Interim Results andany
trading updates.
• CEO and CFO facilitates personal meetings,
virtual roadshows, and participation in
conferences, providing opportunities for
direct engagement and dialogue between
Shareholders and Company management.
• Approves the allocation of capital within
the Group.
• Senior Independent Director (SID) is
available if Shareholders want to raise
concerns that normal channels have failed
to resolve.
Key actions taken
• We updated Shareholders regularly on
current developments, with a primary focus
on supply chain challenges, trading volumes,
as well as customer and market trends.
• Throughout the year, discussions also
covered additional key topics such as
strategy for growth, investments, financial
performance, environmental, social, and
corporate governance (ESG) strategy,
targets, and reporting.
• All Shareholders were invited to participate
inthe 2023 AGM.
• Additionally, we maintained regular
engagement with analysts to review
businessperformance, provide guidance,
and assess financial models.
OUR STAKEHOLDERS
SECTION 172(1) STATEMENT CONTINUED
Cranswick plc Annual Report & Accounts 2024
50
STRATEGIC REPORT
OUR STAKEHOLDERS
OUR PEOPLE
We want to be recognised as an employer
ofchoice to ensure we can compete effectively
when it comes to attracting and retaining the
best talent.
We take a sector-leading position on pay,
working conditions, professional development,
health and safety, inclusivity and wellbeing
forall our colleagues across the Group.
Building careers at Cranswick
Recognising that individuals prioritise
professional and career development when
selecting an employer, we persistently enhance
our array of training and upskilling initiatives.
This year we revised our induction programme
and we are also trialling a new buddy system
tosupport new joiners as they get to know
the business.
We offer a wide range of training opportunities
for colleagues at various levels ofthe organisation,
and during the last year:
• We introduced a new training programme
tohelp colleagues reach middle
management positions, as well as a Front
Line Management programme focused
onimproving management skills.
• 18 colleagues joined our Operational
TalentProgramme, which is aimed at middle
managers within our operations teams
whoare looking to progress into more
senior roles.
• 23 colleagues enrolled on our Management
Training Programmes.
• We also offered colleagues Green Belt
LeanSix Sigma training.
All of our training is now paperless and
delivered through our online Cranswick Core
platform, which features over 200 courses
aimed at all tiers and functions of the business.
This year more than 78,000 courses
werecompleted through Cranswick Core,
including face-to-face learning and mentoring,
which is equivalent to an average 12 training
hours per employee over the year.
This integrated learning approach empowers
colleagues with increased autonomy in their
professional growth, and since its launch
in2020, over 247,000 courses have been
completed on the platform.
We are in the process of refreshing the
Cranswick Core home page, and hope to add
anew ‘skills academy’, which will be abespoke
training platform by the end of the year.
CRANSWICK GEMAWARDS:
RECOGNISING
EXCEPTIONAL
DEDICATION
In our third year of the GEM Awards,
wecontinuedtorecognise exceptional
individualswhogo above and beyond
in their roles.
This year’s winner, Lucy, stands out as a crucial
teammember, celebrated for her steadfast
dedication and proactive attitude.
Despite startingwithout prior experience,
Lucyswiftly integrated into our team,
takingownership of farm responsibilities,
andsupporting colleagues tirelessly.
Her willingness toassist beyond her duties
andhercommitment toprofessional growth,
evidencedby her upcoming degree
inSupplyChain Management, exemplify
thespiritofthe GEM Awards.
Lucy’s story embodies Cranswick’s values
ofdedication and continuous improvement,
inspiring us all to strive for excellence.
We extendour gratitude to Lucy and
allouremployees for their invaluable
contributionsto our community.
We are committed to building a diverse, talented and motivated workforce.
Werecognisethatthededicationand expertise of our employees
driveourbusiness,andwestrivetocultivateaninclusiveculturethat
fosterstheirdevelopment and growth.
CHAMPIONING TALENT
Cranswick plc Annual Report & Accounts 2024
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Strategic report
STRATEGIC REPORT
Graduate recruitment
andapprenticeships
Developing and retaining existing colleagues
iscritical to our business, but it is equally
important that we can attract fresh talent.
This year we recruited 12 more graduates,
taking the total to 97 since 2013, with 30
ofthese individuals now promoted into senior
and full-time roles across the business.
We continue to promote apprenticeships
andwith applications increasing year-on-year,
weutilise the apprenticeship levy across the
Group. We currently have around 150
colleagues undertaking apprenticeship
qualifications, and we expanded our offering of
degree apprenticeships in the year, including
engineering, technical and butchery roles.
Early careers
We continue to pursue our early careers
strategy through our Enterprise Advisory
roleswithin local schools and have attended
recruitment events at 30 schools and
universities this year, promoting entry
levelopportunities within the food industry.
We havealso offered three new university
scholarships this year, and for the third
consecutive year, we again supported the
McDonald’s Future Young Farmers programme,
offering a working placement to one more
individual this year.
Our Group HR Director continues to chair
thelocal Humber and East Yorkshire
Cornerstone Group, which aims to bring
businesses together in the local area to forge
better relationships with schools and give
young people an understanding of the world
ofwork and the opportunities available.
This year, we also attended the Schools Food
and Farming Days at Driffield Showground,
presenting the opportunity for school children
to discover more about the breadth of career
opportunities available within the food
industry,including the wide range of roles we
offer atCranswick, as well as our placements,
apprenticeships and graduate schemes.
Addressing the skills gap
The Group’s average employee turnover rate
has declined from 3.34 percent in the prior
yearto 2.87 percent in FY24, attributed
tonumerous initiatives implemented at both
siteand Group levels. Despite these actions,
labour availability continues to pose
asignificant challenge, particularly within
ourfactories. The recent decision by the UK
Government to raise the salary threshold
forSkilled Worker visas further compounds
thisissue, significantly restricting our access
tolabour in the foreseeable future.
To ensure we have the skills needed to meet
demand, we have now recruited over 650
skilled colleagues from the Philippines into
farming, engineering and technical roles,
whichhas reduced our reliance on agency
workers. We also support our colleagues
whowish to work in the UK through the
EUSettlement Scheme.
We are committed to helping our colleagues
integrate within their communities, offering
integration and support packages. We were
delighted when members of the Filipino
community from our Watton site took part
inthe Lord Mayor’s procession in Norwich.
They performed a Filipino dance in traditional
dress and won first prize in the procession.
Reward and recognition
We believe that celebrating the achievements
of our colleagues plays an important part
incontributing to a positive workplace.
Our‘Going the Extra Mile’ (‘GEM’) Awards
recognise those who have gone above and
beyond their job description, this year bringing
together 46 finalists from across the business
for an Awards Dinner to celebrate their success,
with Lucy from Wold Farms and White Rose
Farms the overall GEM winner.
Colleague successes are also recognised
onamore regular basis through our intranet
site, Flavour, which is integrated with our online
Feed Your Wellbeing hub.
We continue to monitor employee
engagement levels through our annual
Group-wide staff survey. 79 per cent of
ourpeople responded to our latest survey,
with a consistent engagement score of
72per cent (2023: 72 per cent).
OUR STAKEHOLDERS
OUR PEOPLE CONTINUED
Cranswick plc Annual Report & Accounts 2024
52
STRATEGIC REPORT
Workplace wellbeing
We prioritise colleague health and wellbeing,
with 192 mental health champions across
oursites, supported by 98 mental health
first-aiders, our Banish the Burnout programme,
and wellbeing courses offered through
Cranswick Core.
Since FY21, 13,312 positive mental health at
work courses have been completed including
4,694 this year. This year we hosted our
first‘Time to Talk’ day to refresh our employees’
understanding of the role that our first aiders
and champions play. Individual sites also held
numerous events dedicated to mental health,
including Grocery Aid and ‘Wear it Green’ days.
We also offer bereavement training, providing
people with the skills to help them cope with
bereavement, alongside personal and practical
support that includes counselling and crisis
grants through our ongoing partnerships
withGroceryAid and theButchers’ & Drovers’
Chartered Institute.
We are pleased to report that the consolidated
Cranswick Group’s mean pay gap has decreased
by 3.5 per cent from 17.5 per cent in 2022,
to14 per centin 2023. Our latest Gender Pay
Gap report can be found on the Group’s
website www.cranswick.plc.uk.
CRANSWICK
FOOD
BEHAVIOURS
At Cranswick we introduced our
FOOD behaviours to be clear on the
values and culture of our business.
(FOOD = Forward thinking, One team,
Ownership, Driven). The behaviours
have also played a crucial role in
attracting, recruiting, retaining and
promoting talent within our business.
We use FOOD in our recruitment days
to ensure that new colleagues have the
behaviours required for their role.
Grading pathways have been created
for our operational teams where
colleagues could move through the pay
grading structure by demonstrating
the correct skills and behaviours.
We continue to evolve our grading
system, with feedback from our
colleagues, to continue to embed our
culture and ensure that we invest in our
people across all levels of our business.
Employee benefits
So far, 79 per cent of our permanent staff have
signed up to our ‘Feed Your Wellbeing’ hub,
which gives them access to an enhanced
benefits package. This includes additional
holidays, a Cycle to Work Scheme, electric car
salary sacrifice schemes, enhanced maternity
and paternity pay, generous retailer discounts,
and financial services including our Salary
Finance scheme.
We recognise the significant value these
benefits hold, particularly during challenging
economic periods. This year we have enhanced
optional employee pension contributions by 5
to 10 per cent to safeguard them against the
enduring impacts of the cost of living
challenges. During the year, we also launched
Care Concierge, which provides colleagues
with advice and assistance, including getting
financial support for anyone caring for a sick
orelderly relative.
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Encouraging diversity
Our established Diversity, Equity and Inclusion
(‘DEI’) strategy is driven by a dedicated steering
group charged with taking our DEI goals and
aspirations forward. We have an Employee
Non-Executive Director, YetundeHofmann,
whose role is to develop atwo-way conversation
between the Board andcolleagues from across
the business. Yetunde specialises in diversity,
inclusion andculture, and has been busy this
year attending town hall events and holding
one-to-one meetings with employees.
To support our strategy, we have increased
ourfocus on DEI training and education, with
2,416 colleagues completing our diversity,
equity and inclusion training programme this
year, up by 44 per cent from last year.
We are working closely with the Meat Business
Women organisation to provide support,
development and mentoring opportunities
toall women in the Group. Every individual
within the business is offered the opportunity
to hold membership of Meat Business Women
for free, and will have access to the library
ofcontent that is available such as seminars,
meetings and events.
We are also working with Hull and York Medical
School to promote a Woman 2 Woman Study.
This work aims to reduce health inequalities by
increasing cervical screening uptake among
Polish and Romanian women, which fits well
with the health and wellbeing agenda within our
Cranswick factories.
HEALTH AND SAFETY
We are committed to a zero accident and no
work-related illness approach. It is firmly at the
heart of our safety culture, and we will always
put our people first, protecting their health and
striving to keep them free from harm and injury,
so they can carry out their work confidently
andresponsibly. We act in line with all relevant
health and safety (‘H&S’) standards and
regulations and are constantly seeking to
improve our safety procedures in all areas.
Clear H&S road map
Our H&S strategy has focused on local
leadership, best available technology (‘BAT’)
and behavioural safety which has helped
toreduce the safety risk at our sites. However,
thisyear we have updated this strategy to
further align our sites with overarching Group
policies and procedures. This makes keeping
safe easier and provides aclearer roadmap for
our people based onkeythemes and a better
understanding ofhowwe do things safely.
Technology
Technology is helping us drive improvements
toreduce risk. We are always looking to reduce
risk through design and automation which
ishelping to keep our workforce safe.
We havenow moved to integrated paperless
health and safety reporting via our integrated
management system across all of our sites
andfarms. This is assisting us with hazard
reporting, near miss reporting, safety
inspections and accident investigation.
H&S concerns can also be reported during
leadership H&S tours, through H&S committee
representatives or through the hazard and near
miss reporting systems.
Accident rates
Our ‘Step Back and Take Five’ initiative
encourages our H&S managers to reflect
on-site layout, working environment and
housekeeping to better evaluate risks and
determine if safety protocols can be improved
upon. Proactive hazard reporting has helped
usidentify over 32,500 hazard spots across
theGroup, and our hazard spotting year-on-
yearhas increased by 67 per cent.
We continue to make progress on the
Reporting of Injuries, Diseases and Dangerous
Occurrences Regulations (‘RIDDOR’).
Our RIDDOR frequency rate per 100,000
hours decreased by 8 per cent compared
toFY23, and our lost time accidents fell by
7per cent. Due to our proactive reporting
processes, there were 770 instances of
accident reporting across the Group.
However,thevast majority ofthese accidents
(78 per cent) remain minor and primarily
relateto return towork incidents.
Compliance
Our audit compliance scores are improving,
with 68 per cent of sites achieving a score
of90+ per cent, meaning that most of our
sitesare green rated. Risk assessments are
conducted using the integrated management
system and shared with department managers
for review. 90 per cent of our sites are
accredited to the ISO45001 Health and Safety
management system.
Training and upskilling
We continue to prioritise upskilling 44
qualifiedH&S professionals who are based
atallsites within the Group. Mandatory training
isundertaken in key disciplines including
manual handling, riskandresponsibilities,
andslips and trips. We are in the process
ofdeveloping anew behavioural safety
programme tosupplement our H&S strategy.
During the year we recruited a second H&S
degree-level graduate who has been deployed
at various sites assisting with Group audits.
This will help the Group further expand its
H&Scapability on the agricultural side of the
business, as well as manufacturing.
OUR STAKEHOLDERS
OUR PEOPLE CONTINUED
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OUR STAKEHOLDERS
OUR CUSTOMERS AND CONSUMERS
Through delivering exemplary service, offering premium-quality food
andupholdingintegrity,weaimtoprovide our customers and consumers
withcaptivatingmealoptions,whilealsoensuringauthenticity,
valueand quality throughout the year.
Who we serve
Retail customers account for around three
quarters of our revenue (77 per cent in FY24)
and the sector has delivered another
impressive performance this year.
Customers and consumers continue to
recognise and appreciate the quality, value
andversatility of our pork and poultry product
ranges, while promotions are really driving the
market – with deals on premium products
driving strong volumes.
Sales were also buoyant across our food service
and wholesale categories, particularly in the
quick service restaurant (‘QSR’) and food-to-go
sectors, which are performing strongly now
thatpeople are returning back to offices and
haveresumed more normal leisure activities.
We continue to invest in our capacity and are
expanding our product portfolio to meet this
growing demand in QSR products, where we
can offer taste experiences and genuine value
for consumers.
These performances helped to offset a
slowdown in export sales due to the weakened
demand in some of our key export markets such
as China. This year, exports accounted for 4 per
cent of our revenue, a slight decrease on the
previous year, but our outlook for recovery
remains optimistic as we continue to diversify
our customer base and make preparations to
enter new markets.
Focus on quality
This year, our commitment to close collaboration
and transparent communication with
ourcustomers, coupled with the exceptional
dedication of our teams, has resulted in an
outstanding performance in service and quality
across the whole Group.
Despite facing supply chain disruptions and
labour pressures, we have maintained high
service levels, ensuring that our customers
receive their orders promptly and consistently.
This year we took part in the Advantage Survey,
where retailers provide valuable insights
into manufacturers.
Moreover, we have upheld our reputation
asahigh-quality manufacturer, prioritising
foodsafety and health standards to reassure
consumers of the safety and integrity of our
products. The Cranswick Manufacturing
Standard (‘CMS’) applies across all of our
production sites to ensure that we automatically
comply with any new customer specifications
orstandards. This means we can reassure
ourcustomers that there is greater consistency
inthe work we do to assure the safety,
traceability, quality and provenance of our
rawingredients and manufacturing processes.
Value proposition
During the year, we have taken significant
stepsto meet consumer needs by focusing
onthe value and price of our offerings.
Recognising the importance of promotional
strategies in a post-inflationary market, we
prioritised building robust promotional plans
with our customers, which are crucial for driving
volume and market share for our customers.
We identified opportunities where promotions
not only offer value but also highlight
theexceptional quality of our products. A prime
example is the M&S Ultimate Pork Crackling
Joint, which continues to captivate consumers
by focusing on what matters most to them.
This product not only delivers on taste but also
ensures convenience, making it effortless for
anyone to achieve tender pork and perfect
crackling every time they roast it.
By emphasising these product attributes
alongside promotional offers, we created
compelling propositions that resonate with
customers and consumers.
FOCUS ON
QUALITY
We maintained high service levels,
ensuring that our customers received
their orders promptly and consistently.
Our efforts were recognised
asCranswick was voted a top
privatelabel supplier, affirming our
commitment to meeting customer
needs and expectations.
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Innovation
Throughout this year, our focus has remained
on catering for evolving consumer needs
through continuous new product
developments. Welaunched the Cranswick
Innovation platform, Horizon, aiming to ensure
that westayat the forefront of innovation within
ourindustry, while addressing changing
consumer needs even more effectively.
Our barbecue offerings excelled this summer,
particularly our gourmet sausages and hot
dogs, winning multiple awards for their
outstanding quality and innovation.
Notable among these awards are the BBC
Good FoodSummer Taste Awards 2023, where
we securedvictory in the Best Sausage
Category, andtheprestigious Good
Housekeeping Awardfor ‘The Best Sausage for
your BBQ’.
Wealso achieved record sales during
Christmas, including a record-breaking
production of 75 million pigs in blankets
andafocus on traditional seasonal items
likegammon. Our products have garnered
notable recognition, such as Tesco’s Finest
PorkPorchetta being featured in a TV advert
and receiving a Good Housekeeping award
foritsexcellence as an alternative to
Christmasturkey, while the Sainsbury’s Meaty
and Mighty Pigs in Blankets also earned the
prestigious Good Housekeeping award.
Looking ahead, we anticipate a substantial
emphasis on healthy foods, putting a particular
emphasis on how wepresent the health
benefits of our products. Additionally, we are
exploring avenues to expand our retail
offerings to align with the preferences of
consumers who are eating more calories at
home but still seek excitement intheir
food choices.
As part of the recent Food Hero Fortnight, we had the pleasure of hosting a celebration of our Cranswick Food Heroes, giving colleagues the chance to meet
them and hear their incredible stories first-hand.
OUR STAKEHOLDERS
OUR CUSTOMERS AND CONSUMERS CONTINUED
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STRATEGIC REPORT
OUR STAKEHOLDERS
PRODUCERS AND SUPPLIERS
We collaborate with an extensive network of production and supply chain partners
toguaranteethereliabilityof food supply, reflecting our shared commitment to trust,
nutrition,quality,andexcellenceinlow-carbon manufacturing practices.
Supplier resilience
Given the turbulence across the globe,
drivenby geopolitical issues, and the growing
threat to businesses from cyber-attacks,
supplier resilience and the security
of our supply chain have been top of
ouragendathis year.
Our purchasing team has completed a review
of our top suppliers using supply chain mapping
tools within our supplier management system.
The review has helped us to develop a detailed
understanding of where our materials are
coming from and any potential challenges
thatmay arise, while also assessing disaster
recovery scenarios should the worst happen.
During the year, we also completed a cyber risk
assessment of our suppliers, focusing on any
potential cyber risks within our business and
those of our suppliers and evaluating our
resilience to IT threats.
No specific issues were highlighted at this time,
however, it proved valuable to understand
andevaluate potential challenges. We acquired
more comprehensive data on products
susceptible to these challenges and gathered
suggestions for alternative suppliers should
they be required.
Ethical procurement
Building greater resilience is all part of
ourapproach to responsible sourcing.
Only through close collaboration with our
suppliers can we offer the assurances required
by our customers and consumers regarding
theintegrity and safety of our food.
We consider a broad range of social, ethical
andenvironmental factors when engaging with
any supplier, and we expect them to meet high
standards across all of these areas. Our supplier
policy sets out these standards in detail with
aclear set of commitments. These include
following the Ethical Trading Initiative (‘ETI’)
Base Code on labour practice, undertaking
Sedex Member Ethical Trade Audits (‘SMETA’)
if operating inahigh-risk country, sourcing
certified palm oil and soya from reputable
certification schemes, and measuring
greenhouse gas emissions. For more details,
see our Group Sustainable Procurement Policy
at www.cranswick.plc.uk.
Supply chain assurance
We have further strengthened our supply
chainassurance this year, restructuring our
audit teams across our sites and changing
theway audits are carried out to focus more
onfood safety and integrity. We have adopted
the updated Cranswick Manufacturing
Standard, which was reissued this year.
As aresult, we have identified more issues,
butthis has effectively minimised potential
customer issues.
We continue to enhance our supplier
management system to efficiently and safely
manage our data. This year, we transitioned
toapaperless approach for conducting supplier
audits. This not only granted our technical
teamenhanced visibility during audits but
alsoyielded time-saving benefits for all
stakeholders involved.
An additional 52 raw material suppliers
wereapproved this year, bringing the total
to1,011,along with 9,157 products and
associated specifications.
We monitor our suppliers continuously to
ensure they are performing to the highest
standards and progressing against key
metricssuch as emissions reductions.
CRANSWICK
PROCUREMENT
SUMMIT
We held our first Procurement Summit
this year, bringing together suppliers
from diverse sectors, including
ingredients, packaging and logistics, to
explore innovation and
sustainability strategies.
This event served as an excellent
opportunity to network, foster
innovative ideas throughout our
supplychain and to share our
SecondNature messages.
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STRATEGIC REPORT
During the past 12 months, 687 supply chain
audits were carried out to assure the safety,
traceability, quality and provenance of the
rawmaterials we use (340 in FY23).
The increase in the number of audits is
drivenby an increased number of farm audits.
We made a strategic decision to carry out more
ofourown Cranswick welfare assessments
torecognise a potential issue before it occurs
and provide support to improve compliance
and performance. Currently 942 outof our
1,011 total suppliers are registered onSedex,
including all 527 direct suppliers and88 per
cent of indirect suppliers (FY23: 88per cent).
Alongside increasing the frequency of supplier
audits, we are also adjusting the emphasis of
our audits. We are now placing added emphasis
on food integrity, prioritising robust traceability
and authenticity of the ingredients we use,
while maintaining our commitment to food
safety as paramount.
Supplier engagement
As well as holding our first Procurement
Summit this year, we spent two days at
SheffieldHallam University engaging with
ourengineering contractors and suppliers.
Discussions centred on food safety risk
assessments. We have implemented a
requirement for all engineers visiting our
sitesto hold a minimum Food Safety Level 2
certification, a regulation that has been
welcomed by our suppliers and contractors.
Internal compliance and governance
Our internal auditing processes conform to
ourown Cranswick Manufacturing Standard
(‘CMS’), as well as ISO14001, ISO45001 and
ISO50001 quality standards. In the coming
years we will move away from ISO45001,
asitisbeing replaced by our CMS standard,
encompassing the BRCGS Food Safety
Standard and all the latest customer technical
codes of practice.
During the year, we launched new Food Safety
and Quality Committees. At Group level,
ourheads of department meet bi-monthly,
while individual sites host their own committees
dedicated to enhancing food safety practices
attheir respective locations.
19 of our production sites were audited against
the BRCGS Food Safety Standard withfour
achieving an AA rating, twelve receiving an
AA+ rating, three an A+ rating.
We carry out proactive intelligence audits,
which this year focused on reducing foreign
body risks, as well as ensuring food safety
andintegrity. Additionally, we conducted
several targeted audits at specific sites,
primarily utilised to bolster site support
andpromote improvements.
Upskilling our teams
Our Technical, Sustainability and Compliance
teams undertake regular training, including
monthly technical upskilling sessions. Over766
colleagues were trained in 80 courses this year,
covering auditing, inspection, food hygiene,
safety and traceability, as well astechnical,
ethical and health and safety issues, and
animal welfare.
A significant initiative introduced this year
involves standardising protocols and guidance
across all our factories and farms as part of
ourBrilliant Basics programme. This includes
ensuring consistency in signage and
procedures, allowing for seamless transitions
ofpersonnel between sites, even for agency
staff less acquainted with our operations.
Animal welfare
At Cranswick, we are committed to achieving
and maintaining the highest possible standards
of animal health and welfare through our
industry-leading assurance standards,
supported by our vertically integrated
supply chain.
Animal welfare is a fundamental component
ofour Second Nature Strategy, underscored
byour unwavering dedication to enhancing it.
This is evidenced by our consistent
achievements within the higher tiers for
theBusiness Benchmark For Animal Welfare
(BBFAW) for five consecutive years, and
wearesteadfast in our focus on upholding
thisbenchmark in the years ahead.
OUR STAKEHOLDERS
PRODUCERS AND SUPPLIERS CONTINUED
REVOLUTIONISING
PIG FARMING
The Innovate UK funded commercial trial of FarmSense, an artificial intelligence
research and development project aiming to deliver astep change
inpighusbandry by real time monitoring of pig welfare and performance
anddisease detection, is entering its final phase. The 3D cameras installed
within three separate sites aregathering valuable behavioural information.
When this iscombined with remote disease detection datavia air sampling
volatile organic compounds (VOCs), this is the start of developing an algorithm
that can determine anomalies and provide an early warning system to
management. The project isalso using the performance data to develop an
optimum pig weight data prediction tool, based on dailyweight gain and price
of feed.
FarmSense is learning to automatically detect any changes in the pigs’
behaviour that could indicate problems, such as the angle of the tail that could
indicate there is a risk of tail biting, abnormal eating or the presence of disease
within the shed before clinical signs are physically evident.
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Over 50 per cent of the pigs that we process,
and 100 per cent of the chickens processed
atour primary processing facilities, are reared
through our own farms, giving us a high level
ofcontrol over how our animals are reared and
cared for. A shortened supply chain delivers the
opportunity to directly influence and be totally
transparent, providing greater trust to the
consumer from farm-to-fork. Our agriculture
team works hard to ensure that the same high
standards of farm animal welfare we have
across our own operations are adhered to
throughout our UK-aligned producer base,
andEU supply chains.
In 2023 the Cranswick Agriculture team
expanded its presence within our own farming
operations and independent producers’ farms.
The team now conducts customer audits
inaddition to the existing Cranswick Welfare
Assessments, typically scheduled with just
48hours notice. All producers are risk-rated
viaaunique matrix, in an effort to identify
where there may be challenges. Our aim is to
obtain the most accurate reflection of on-farm
practices, allowing us to provide support
andguidance where appropriate.
Caring for our chickens
Our fully integrated poultry model means we
can offer higher welfare chicken to customers.
We use the revolutionary NestBorn on-farm
hatching system for all of our eggs, meaning
that our chicks are born in a warm barn
instress-free conditions, and have immediate
access to shelter, feed and water as soon
astheyhatch. This results in more robust
andhealthier birds, and calmer flocks with
improved immunity, while helping us to reduce
our carbon footprint.
We rear all of our chickens indoors to astandard
that either complies with, or goes beyond,
RedTractor welfare standards. Our poultry
sheds provide more space for chickens to roam
freely and are enriched bythepresence of fresh
bales, perches withtoys, and windows to allow
in natural light.
Our sheds all feature climate control systems,
enabling us to optimise the indoor temperature
to suit the needs of our chickens all year round.
They also have water misting systems to make
sure the birds are more comfortable during
theperiods of more extreme heat during
thesummer months.
This year, we have implemented a reduction
inpoultry stocking densities to 30 kg/m
2
across
a small percentage of our estate, in contrast
tothe 38 kg/m
2
recommended by Red Tractor
guidelines. We plan to roll this out across
theentire business next year. This adjustment
has yielded favourable welfare outcomes,
andperformance improvements, due to less
competition at the feeders and water drinkers.
Caring for our pigs
Our integrated pig farms are located close
toour primary processing sites to reduce
transportation times and minimise stress.
All ofthe pigs we purchase from producers
arereared to Red Tractor standards, with
around 50 per cent also meeting outdoor
RSPCA Assured certification standards.
The Cranswick Pig Producer Standard is
reviewed and sent out annually at the start
ofour first quarter. This document outlines
andreinforces the key areas of assurance
standards we expect of our suppliers and
inourown operations, and has at its heart
the‘five freedoms’ concept promoted bythe
Farm Animal Welfare Council.
In the current year, following the
implementation of a risk rating system for
producers based on health and welfare
outcome results, subsequent focused farm
audits and welfare assessments are arranged
with minimal notice, a shorter time frame than
stipulated by the Red Tractor or RSPCA
Assured schemes. These visits involve
comprehensive assessments carried out by
experienced pig specialists skilled at identifying
potential health and welfare issues, and gaps
within management practices that may inviterisk.
The welfare assessment prioritises observing
and evaluating the pigs and their housing
conditions over and above paperwork
compliance. The assessment provides us
withreal information that we can build
improvement plans around in collaboration with
the producer if required. Sharing and trending
health andwelfare information with a producer
immediately creates a performance incentive
asthey like to maintain levels below the factory
average, and invariably their vet becomes
akeypart of the improvement plan.
Through the Cranswick Pig Passport we also
have put a comprehensive training and career
programme in place, helping to upskill people
already within the business, and to support
therecruitment and training of apprentices.
The programme has been very well received,
and was nominated as a finalist in this year’s
National Pig Awards.
Our earlier investment in an adaptive indoor
farrowing system on one breeding unit
withinWhite Rose Farms in 2020, has yielded
encouraging results in terms of performance,
whilst improving the health and welfare of the
sows. While we have ambitious plans to expand
adaptive farrowing across other breeding sites,
we await DEFRA guidance on the type of
system and pen size that will ensure the farms
are compliant with future industry standards.
Veterinary exams and antibiotic use
Our antibiotic use across our pig and poultry
farms remains well below the industry average,
despite usage rates increasing this year for
ourpigs due to labour and supply chain issues.
The average antibiotic use across our three
pigfarming businesses was 68.3mg/pcu
andacross our poultry farms was 9.0mg/pcu.
We are Board members of Food Industry
Initiative on Antimicrobials (‘FIIA’) and continue
to work with FIIA to develop industry best
practice in this field.
For more information on antibiotic use,
pleaserefer to our SASB disclosure on pages
44 to 46.
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STRATEGIC REPORT
OUR STAKEHOLDERS
NGOS AND PARTNERSHIPS
Shared ambition
In pursuit of shared goals, we collaborate
withdiverse non-governmental organisations
(NGOs) and strategic partners. This allows
ustoshare experience and best practices from
an aligned supply chain test innovative
solutions, promote industry standards, and
shape future policies. The focus of this work is
on addressing critical global issues, which
require collective action rather than individual
efforts to solve.
Tackling deforestation
As active members of the UK Soya Manifesto,
weare dedicated to promoting the importation
ofsoya that has not contributed to deforestation
orland conversion into the UK. By engaging
withour importers, traders and compound feed
suppliers, we are collectively working towards
the ultimate goal of transitioning all soya used
within our farms tobe exclusively 100 per cent
verified deforestation and conversion free.
We are in transition towards full mass balance
RTRS certified soya across our own pig and
poultry farming businesses by the end of 2024,
one year ahead of our policy commitment.
We aremonitoring closely the EU‘s position
inrelation to meeting recent deforestation
regulation, andawait further information on
proposed UK legislation in thisarea.
We are active members of the UK Roundtable
on Sustainable Soya and the Soya Transparency
Coalition, and we support global initiatives
thatwork towards zero deforestation. We have
pledged our commitment to the Cerrado
Manifesto, led by the FAIRR Initiative, which
advocates for an end to deforestation in the
Brazilian ecoregion.
Driving decarbonisation
Our efforts to embrace decarbonisation remain
unwavering as we prioritise renewable energy
generation, strive for optimal energy and
refrigeration efficiency, and explore the use
oflower carbon alternatives to LPG to heat our
poultry sheds. We are committed to reducing
emissions from our HGV fleet by transitioning
torenewable fuel through the use of
hydrotreated vegetable oil (‘HVO’) and by
introducing electrified trailers. We continuously
explore innovative solutions to maximise our
use of clean energy, and have partnered with
the East Coast Hydrogen Consortium group,
which aims to expand hydrogen production
inthe area and bridge the gap between supply
and demand.
The Cranswick Carbon Inset Scheme,
whichhasthe backing of WWF-UK, is a
trailblazing initiative in the industry. To raise
wider awareness of the opportunity within
aligned agricultural supply chains of the
concept, andsupport the scaling-up of the
scheme, weapplied and were successful
inbeing awarded Innovate UK funding.
Our goalsfor the project include building
trustand transparency in relation to carbon
insetting, using the positive carbon and
biodiversity aspects of our farming operations
to contribute towards our Net Zero livestock
objective. The inset scheme will provide
additional financial support for British
agriculture, and therural economy, in light
of ashift away from production support by
UK Government.
Reducing food and plastic waste
We are committed to addressing the issue of
plastic waste on a large scale through our work
with multiple stakeholders as part of the UK
Plastics Pact, which is led by the Waste and
Resources Action Programme (‘WRAP’).
We are proud members of OPRL, whose
experts offer invaluable assistance and
resources to businesses seeking to tackle
theintricacies ofpackaging recyclability in
aproductive and efficient manner. The spotlight
this year has been on recyclability, particularly
for Ramona’s Kitchen and Cranswick
Pet Products.
Our robust connections within the food industry empower us to inspire
broaderperspectivesandactions,crucial for effecting the necessary scale
ofchangeneeded to createamoresustainable food system. Our collaborative
efforts arecraftedtosetindustrystandards, prioritise impactful outcomes,
andmaintaina forward-looking approach.
We are active signatories of high-level coalitions
such as Champions 12.3 and Courtauld 2030,
which focus on reducing foodwaste across
thesupply chain. This year, wehave actively
supported the Food Waste Action Week
inMarch 2023, which is a consumer facing
campaign that aims to make consumers
consider the impact of food waste.
Alongside our work with suppliers that tackle
packaging waste within our value chain,
ourpeople have continued reducing plastic
pollution off-site by teaming up with local
charitiestoattend litter picking events
atbeachesontheEastYorkshire coast.
Customer alignment
Our poultry production is entirely self-sufficient,
and recent acquisitions have increased our pig
supply from owned operations to just over
50percent. This shortened supply chain allows
us even greater control and influence, while
providing our customers with a trusted
andtransparent view of an increasingly aligned
agricultural supply chain. Given the pressures
within the marketplace to deliver even higher
levels of animal welfare or more sustainable
products, we recognise the need to work towards
such goals, while being open and transparent
around the practical and commercial implications.
Our Agriculture team is responsible for
managing these expectations, and we work
hard to ensure that our farms are engaged
andequipped todeliver on our strategy. In the
future, while sharing best practice and results
from our R&Dfarms with aligned independent
producers, wewill also require a financial
mechanic within producer contracts to reward
measured improvements across a range of
metrics. In the absence of detailed DEFRA
policy and support, this will be pivotal in driving
progress and fostering sustainability within
our industry.
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Sustainable farming
By partnering with food producers, charities,
andcommunity organisations, we are helping
tosafeguard critical agricultural resources.
Soil health is being increasingly recognised
asacrucial factor in mitigating climate
changeatlocal, national and global levels.
Livestock play an important role in regenerating
soil by incorporating their dung naturally where
they are, or pig and poultry manure from indoor
systems can be used to fertilise soil for nearby
crops, reducing the need for synthetic
fertilisers. By incorporating the muck into
thesurrounding soils from our pig operations,
thenutrient level and organic matter is
increased. Over time the soil retains water
moreeffectively, making it more resistant
todrought and maintaining crop yields.
Improving welfare outcomes
acrosstheindustry
Collaborating with several industry bodies
andassurance schemes, we are committed
toestablishing robust Company policies,
andevaluating future standards of animal
welfare,while promoting the integrity
ofthemeat industry.
We maintain a close working relationship with
Red Tractor, and we are actively participating
inDEFRA’s Animal Health and Welfare Pathway,
which aims to develop welfare standards and
financial support, in light of changing
Government agricultural policy.
Our dedication to animal welfare is evidenced
byour direct involvement in various industry
assurance schemes and groups. Our Technical
Director is a valued member of the British Meat
Processors Association’s Animal Welfare
Committee, and our Director of Agricultural
Strategy sits on the Red Tractor Pig Board
andisaDirector on the board of the National
PigAssociation. Furthermore, we are active
members of the Agriculture & Horticulture
Development Board, where our presence
atbothBoard and Committee levels enables
ustohelp shape the industry’s agenda.
For more details, see our Animal Welfare
policyatwww.cranswick.plc.uk.
REGENERATIVE
AGRICULTURE PANEL
Our Director of Agricultural Strategy, Ash Gilman, was asked by WWF-UK
tobe a panellist at this year’s Oxford Farming Conference.
Ash and his fellow panellists were invited to discuss the launch
ofWWF-UKandNatWest’s new roadmap for Financing
aRegenerativeAgriculturalTransition in England.
Ash had contributed to the creation of the roadmap, and also shared
aninsightinto the Carbon Inset Scheme, and Cranswick’s pioneering
supportforatransition within its agricultural supply chain. He stressed
theimportanceofpromoting regenerative agricultural practices amongst
farmersand landowners, with a primary focus on maximising the
valueoflivestock manure on improving soil health, and its contribution
toimprovedcarbon sequestration and biodiversity.
With a focus on supporting farmers through the initial period of transition,
thepanel made recommendations for actions along the value chain and
explored how the roles of supply chains, financial institutions, Government
andmore can help effectively mobilise investment.
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STRATEGIC REPORT
OUR STAKEHOLDERS
OUR COMMUNITIES
Assisting our communities
The ongoing cost of living crisis has laid bare
the challenging circumstances many people
inour communities face, especially when
itcomes to accessing food and basic support.
Through our concentrated efforts on the
redistribution of food, education and
outreachinitiatives, we have the ability
togenuinely makea difference to those
whoarein dire need.
Our well-established partnership with
FareShare, the UK’s leading food redistribution
charity, has yielded tremendous results.
In theseven years of our partnership, we have
diverted 425,000 tonnes of surplus food to
FareShare, which amounts to a remarkable
1.6 million portions based on a 420g protein
serving. This high-quality and nutritious food
has been distributed to 2,966 charities and
community groups, such as school breakfast
clubs, older people’s lunch clubs, homeless
shelters, andcommunity cafés.
In partnership with FareShare and some of
ourmajor customers, we are also very proud to
be signatories of the Coronation Food Project,
aninnovative initiative that seeks to combat
food waste and food poverty in the UK.
This groundbreaking project not only
addresses theurgent need to rescue surplus
food, but italso aims to reduce
carbon emissions.
On a regional level, Cranswick Cooked Poultry
supported local charity EMS with their Free
Meals Day, providing food and activities for
local residents in Hull. EMS has been serving
Hull, East Yorkshire, and parts of Lincolnshire
since November 2009, collaborating with local
businesses, community groups, and residents
to tackle issues of food and fuel poverty.
We have also launched a new Sports Grant
inMilton Keynes, allowing employees and
people from their community to request
funding forsports teams they or their children
are involved with to cover the cost of items
suchasnew kits, additional equipment,
orevenwinter training facilities.
Other fundraising activities
We support a number of charities across
theGroup, placing a strong emphasis on staff
volunteering to help raise money for good
causes. This year our colleagues collectively
raised more than £30,000 through various
fundraising activities, including Macmillan
Coffee Mornings and Wear It Pink Days,
cakesales and raffles.
For the fifth year in a row, our Group has
retained its GroceryAid Gold Award supporter
status. Achieving this status requires
participation in a variety of activities that fall
under the three critical pillars of Awareness,
Fundraising, and Volunteering. Two of our
management team also sit on the GroceryAid
committee, enabling us to increase awareness
of its work.
We are dedicated to providing support and bolstering the communities where we operate.
Byactivelyseekingto make a positive impact on a local level, we contribute to the development
ofmorecohesive communities that enhance the wellbeing of individuals.
DOING IT FOR
THEKIDS!
Cranswick Country Foods Preston
hosted its annual Charity Golf Day
at the Forest Pines golf course in
Scunthorpe, raising an impressive
£102,000 for thewonderful charity
KIDS. Attendees included Cranswick
colleagues, suppliers, and customers,
many of whom have supported the
event for numerous years.
Cranswick has been a proud supporter
of this charity since 2007, and thanks
tothe immense generosity shown
byeveryone involved, has raised more
than £430,000 for KIDS over the years,
making a profound difference
tothelives of countless children
andtheir families.
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EXCITING EDUCATIONAL
PARTNERSHIP
The opening of a state-of-the-art Centre for Pig Industry Training
atBishopBurton College marks the start of an exciting new partnership
between the college and White Rose Farms Ltd.
White Rose Farms, part of Cranswick’s farming business, is the latest
industry partnership established by the college. The partnership will
support the college in preparing students for the world of work, as they
study for vocational and technical qualifications. This new venture
represents an opportunity for business and education to work together
tosupport the skills and learning of the next generation of pig farmers.
The £1 million centre houses a herd of 300 sows and offers the
verylatestinfarrowing facilities; providing 50 per cent more space
thanexistingconventional systems. The pigs will be reared to
RedTractorAssured standards.
We are also proud to support IntoUniversity,
which is a national programme, creating
opportunities for young people from
disadvantaged backgrounds. Since opening
inOctober 2022, the IntoUniversity Hull East
has supported 741 local children andyoung
people through after-school study sessions,
mentoring meetings, holiday clubs and their
FOCUS programme which inspires and
supports ambition in Primary and Secondary
school children.
Cranswick Charitable Trust
The Cranswick Charitable Trust (‘CCT’) is a
grant-making charity governed by a separate
Board of trustees to our Company that provides
a focus for our charitable giving. The Trust
receives a lot of requests for support and
typically addresses causes that combat food
poverty and promote education for children,
usually around where we have facilities.
In the early stages of the conflict in Ukraine,
theGroup donated £500,000 to the CCT
tohelp with ongoing relief and aid efforts
related to war. This included sending aid to
those affected in Ukraine as well as supporting
refugees repatriated to the UK. So far the
Trusthas donated a total of £250,000
tosevencharities – the UN Refugee Council,
TheRefugee Council, UNICEF, Red Cross,
PlanUK, The Norfolk Community Foundation
and TheLincolnshire Community Foundation,
withthe remaining sum to be distributed in
thenear future.
This year the CCT has donated £100,000
totheYorkshire Children’s Charity, which
provides a helping hand to children and
familiesin Hull and the wider area. It has also
made a number of smaller donations to other
UK-based charities to help ease food poverty,
support eating disorders and provide respite
for familieswith children that are suffering
fromlife-limiting illnesses.
The Group has also supported homeless
charities anda return to work programme in
Milton Keynes, helping to provide skills and
employment opportunities. It also organised
Christmas dinner for the Hessle foodbank.
Educational outreach
Our efforts to support future skills
development continued this year through
ourpartnerships with schools, colleges, and
universities, providing sponsorships, education,
and mentoring. Our people regularly visit
localschools and offer students career advice.
We attended the Driffield Show to engage
withlocal suppliers and farmers, as part of our
support for the agricultural community in East
Yorkshire. The show has become a ‘must do’
event on the calendars of both the farming
community and families looking for a good
value day out, and we were delighted to make
our contribution. We talked to primary school
children there, and with older children too,
discussing the potential career opportunities
they may find in our industry.
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STRATEGIC REPORT
OUR STAKEHOLDERS
SHAREHOLDERS
Individual Shareholders
The Group has a significant number of individual Shareholders many of whom have been Shareholders for many years. The Group engages with
individual Shareholders through our website and at the Annual General Meeting when a presentation, similar to the presentation made to institutional
Shareholders, is made to those attending. The Company Secretary also coordinates communications with individual Shareholders to make sure that we
respond appropriately to individual matters raised in conjunction with our registrars, Link Group, where this relates to matters regarding shareholdings.
Institutional Shareholders
The Group engages with institutional Shareholders through regular meetings. Presentations are made by the Chief Executive Officer, the Chief
Financial Officer and the Chief Commercial Officer to analysts and institutional Shareholders on the half year and full year results and on Company
strategy. We also periodically organise investor days when investors get the opportunity to visit our facilities and engage with our wider management
team. During 2023, the Chief Executive and Chief Financial Officer also undertook an investment roadshow to US and Canadian investors.
The Chairman, Chief Executive Officer and Chief Financial Officer discuss governance and strategy with major Shareholders from time-to-time.
The Senior Independent Director and Committee Chairs are also available for direct meetings with Shareholders where required. Significant matters
relating tothetrading or development of the business are disseminated to the market by way of Stock Exchange announcements.
Our metrics
AGM The AGM will take place on Monday 29 July 2024 at the Mercure Hull Grange Park Hotel, Grange Park Lane, Willerby, Hull,
HU10 6EA at 10.30 am. The Board welcomes the attendance and questions of Shareholders at the AGM, which is also attended
by the Chairs of the Audit, Remuneration, Nomination and ESG Committees. We encourage Shareholders whocannot attend
to vote by proxy on all resolutions proposed.
Annual Report We publish our Annual Report and Accounts each year which contains a Strategic Report, Corporate Governance section,
Financial Statements and Shareholder Information. The report is available in paper format and online. We encourage
Shareholders to opt for our online format to help reduce the amount of paper we use.
Investor days We hold periodic investor days at facilities where there has been significant development and investment, when investors
aregiven the opportunity to tour the relevant site and receive presentations from the wider management team.
Press releases We issue press releases for all substantive news relating to the Group’s financial and operational performance, which can
be found on our website at www.cranswick.plc.uk.
Results
announcements
We release full financial and operational results at the interim and full year stage in November and May respectively.
The Group also releases a trading update at the first- and third-quarter with reduced disclosure. The interim and full year
resultsare accompanied by presentations by the CEO, CFO and CCO, which are also available on our website.
Website Our website (www.cranswick.plc.uk) is regularly updated and contains a wide range of information relating to the Group.
TheInvestor section includes our investor calendar, financial results, presentations, Stock Exchange Announcements
andcontact details. Shareholders can make enquires through our website, which the Company responds to promptly.
Shareholder engagement themes
Climate Change The Group has engaged with Shareholders and a wide range of stakeholders in relation to climate change and other
sustainability-related issues, including the Group’s Science Based Targets, progress in relation to reducing its Scope 1, 2 and 3
emissions and other commitments relating to decarbonisation and biodiversity projects in its agricultural supply chain, which
are covered in further detail in the Strategic Report on pages 32 to 37 and the ESG Committee Report on pages 94 to 95.
Financial
performance
The Group discussed its financial performance in meetings with institutional Shareholders and analysts with a focus on future
investments for growth. Matters focused on also included the continued impact of inflation and further investment being
undertaken at the Group’s Preston facility and the development of the Group’s new houmous and dips facility at Worsley,
Manchester, which are covered in further detail in the Strategic Report on pages 26 to 29.
Remuneration During the year, the Company consulted with institutional Shareholders on the review of its Directors’ Remuneration Policy,
which focused on retention and ensuring that Directors were appropriately incentivised based on achieving targets that
weresufficiently demanding and aligned with Shareholders interests. Details of our review of the Directors Remuneration
Policy are set out in the Remuneration Committee Report on pages 105 to 121.
Diversity and
Inclusion
The Group has engaged with Shareholders and various interest groups regarding diversity and inclusion at all levels following
the publication of the Parker Review regarding ethnic diversity and calls for increased ethnic pay gap reporting. Further details
relating to workforce engagement, diversity and inclusion are set out on pages 82 to 83 of the Governance Report and details
of our policy and performance relating to diversity are included in the Nomination Committee Report on pages 101 to 104.
Shareholder engagement on a regular basis is important to us to capture and
embracefeedbackandensurethe Group responds to developing themes.
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STRATEGIC REPORT
Effective risk management plays
a vital role in identifying, assessing
and mitigating risks that could
impact the delivery of the Group’s
strategic objectives. It is through
an established Risk Management
Framework that we are able to
manage these risks and identify
opportunities as they arise.
The Group has a structured and mature approach
to risk management to ensure a systematic
andplanned method for identifying, assessing,
prioritising, mitigating and monitoring risks
istaken across the business.
The Group’s Risk Management Framework
incorporates a top-down approach when
identifying principal risks and a bottom-up
approach when identifying operational risks.
Our culture of effective risk management
isbased upon a balance of risk and reward,
established through an assessment of
thelikelihood and impact of the risk, while
considering the Group’s risk appetite.
The Group also has a dedicated Internal
Auditand Risk Team who, supported by a risk
management IT system, help to facilitate
therisk management process and provide both
challenge and advice to Management teams,
while ensuring that the Risk Management
Framework is consistently applied across
the business.
The Board performs annual reviews of the
Group’s principal risks and receives regular risk
updates to include key emerging risks facing
the Group, analysis of risk trends, and actions
taken to mitigate risks. The Group Risk
Committee reviews risks during the intervening
periods and met four times during the course
ofthis year.
In order to deliver our strategic objectives
andensure the sustainable growth of the
business, effective risk management is vital.
The Board isresponsible for maintaining
theRisk Management Framework to ensure
theGrouphas appropriate mitigating actions
foritskey risks. This responsibility is delegated
tothe Group Risk Committee, chaired by the
Chief Financial Officer, and governed by
keyinternal stakeholders including Directors,
Executive Directors, Heads of Departments
and the Head of Internal Audit and Risk.
In addition, the Audit Committee provides
further independent assurance over the
Group’sRisk Management Framework
andsystem ofinternal controls through the
established in-house Internal Audit and Risk
Team. During the year, the Internal Audit and
Risk Team completed various reviews across
the Group, including several deep dive risk
reviews, and reported no significant failings
orweaknesses in the Risk Management
Framework and system of internal controls.
EFFECTIVE RISK MANAGEMENT
OPERATIONAL RISKS
LINES OF DEFENCE
2ND LINE
GRO U P
FUNCTIONAL
TEAMS INCLUDING
COMMITTEES AND
THE BOARD
Key risk areas are
monitored by Group
functional teams to
challenge the effectiveness
of the first line of defence,
manage current and
emerging risks, and
respond to changes
inourrisk landscape.
OPERATIONAL MANAGEMENT
Deploy site level risk management processes to ensure risks are adequately identified,
mitigation actions are implemented, and risks are controlled.
BOARD
Responsible for approving the principal risks, setting the tone, and influencing the culture
of risk management as reflected in the Group’s risk appetite statement.
AUDIT COMMITTEE
Provide assurance to the Board that an
effective system of integrated governance,
internal control, and risk management
ismaintained within the Group.
GROUP RISK COMMITTEE
Provide oversight and advice to the
AuditCommittee and Board in relation
tocurrent and potential emerging risks
andmitigation strategies.
INTERNAL AUDIT AND RISK TEAM
Coordinate risk management activity and report on the effectiveness
oftheRiskManagementFramework. Provide assurance to the Audit Committee
andtheBoardthatinternal controls are adequate.
3RD LINE
INTERNAL
AUDIT AND RISK
TEAM
The Internal Audit and Risk
team provides objective
and independent
assurance over the internal
control framework by
identifying weaknesses and
agreeing remedial actions.
1ST LINE
OPERATIONAL
MANAGEMENT
Risks are managed and
controlled on a day-to-day
basis by site management
and operational teams
through the creation
ofpolicies and procedures
that implement an effective
control framework.
PRINCIPAL RISKS
M
I
T
I
G
A
T
I
O
N
M
O
N
I
T
O
R
I
N
G
A
S
S
E
S
S
M
E
N
T
P
R
I
O
R
I
T
I
S
A
T
I
O
N
I
D
E
N
T
I
F
I
C
A
T
I
O
N
RISK
MANAGEMENT
FRAMEWORK
TOP-DOWN APPROACH
BOTTOM-UP APPROACH
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STRATEGIC REPORT
EFFECTIVE RISK MANAGEMENT
CONTINUED
Principal risks and uncertainties
Although the Group is exposed to a variety
ofrisks, it only reports on risks with a high
likelihood and greater current or near-term
impact on strategic objectives, operational
plans, or reputational damage. The Board has
completed a detailed assessment of risks that
could compromise the Group’s business model,
future performance, solvency or liquidity.
The risk assessment map on page 68 provides
asummary of the Group’s principal risks.
Further details on mitigation strategies and
connection to our strategic enablers can be
found on pages 69 to 72. No additional risks
have been identified during the year however,
movements within existing risks have been
noted, as described in the ‘Principal risk trends’
section on page 67.
Risk appetite
Risk appetite is defined by the UK Corporate
Governance Code as the nature and extent
ofrisk that a business will accept in order to
achieve its operational and strategic objectives.
At Cranswick, the delivery of the Group’s
strategic objectives is dependent on
anappropriate balance between risk and
reward, especially when considering business
acquisitions or capital expenditure, where
a higher level of risk may be accepted to
achieve strategic growth.
The Board have defined risk appetite
statements for each of the Group’s principal
risks using a five-point scale which aligns to
our five-by-five risk scoring matrix. Our overall
approach is to minimise risk and uncertainty
while recognising that some residual risk may
be necessary and beneficial. During the year,
risk appetite statements have proven to be an
effective tool to prompt conversations across
the Group, while ensuring that mitigating
actions are efficient, appropriate andin line
withour strategic goals and priorities.
Over the course of the year, a detailed exercise
to refresh and redefine our risk appetite
statements was completed. The ‘Health
andSafety’, ‘Food Scares and Product
Contamination’, and ‘IT Systems and Cyber
Security’ principal risks sit at the lower end
ofthe scale and should be reduced to a level
aslow as reasonably practicable. At the other
endof the scale sits the ‘Growth and Change’
principal risk as the Group is willing to accept
areasonable level of risk in order to benefit
from investment opportunities. In addition,
inorder to seek a balance between retained
riskand risk transfer, risks that can be partially
mitigated through insurance have been
identified and evaluated (e.g. operational
disruption and cyber incidents).
Emerging risks
Emerging risks are areas of uncertainty
whichhave the potential to impact the Group
inthefuture, from both a risk and opportunity
perspective. During the course of the year, the
Group uses its embedded Risk Management
Framework to identify emerging risks,
withthose identified being reviewed by both
the Group Risk Committee and the Board.
Identification methods include horizon
scanning, using in-house knowledge or
expertise, and support from external sources.
Key emerging risks identified during the year
included: threats and opportunities presented
by the emergence of artificial intelligence,
newregulations within the pig supply chain,
changing Government policies following the
UK General Election, a proposed increase to
the Agriculture and Horticulture Development
Board (AHDB) pork levy, exclusion of butchers
and poultry dressers from the Governments
shortage of occupation list, and geopolitical
uncertainty caused by the ongoing war between
Russia and Ukraine, the conflict in Gaza and
shipping disruption in the Red Sea. Emerging
riskscontinue to be discussed and reviewed,
predominantly by the Group Risk Committee,
with appropriate action taken when required
tomitigate any impact.
The Group’s principal risks and uncertainties
are summarised in the risk profile tables on
pages 69 to 72.
Key areas of focus this year
Risk Management Framework
Identifying risk is a continual process, with
riskregisters in place at both a Group
(top-down) and operational level (bottom-up).
As part of the risk assessment process, risk
registers are reviewed regularly with both
thegross risk (before consideration of any
mitigations) and net risk (after consideration
ofany mitigations) assessed and documented.
To ensure risks are evaluated consistently
across the Group, a five-by-five riskscoring
matrix is used to assess the likelihood and
impact on several key areas, including cash flow,
profit, operational disruption, reputational
damage, or industry-wide issues. The Risk
Management Framework is supported by
ariskmanagement IT system that ensures
theongoing improvement tothequality and
integrity of reported risk information and
theGroup’s ability to respond promptly
toexisting and emerging risks. During the year,
the Internal Audit and Risk Team delivered
refresher training workshops across the
business to provide additional support, advice
on the risk management ITsystem, and
tofurther embed risk culture around the Group.
In addition, several deep dive risk reviews have
taken place during the year toensure that risks
are being reported andmanaged correctly,
andto assess whether further mitigations can
be deployed.
In accordance with the requirements of the
UKCorporate Governance Code, risk updates
are reviewed over the course of the year by the
Audit Committee, on behalf of the Board and
other Non-Executive Directors, to summarise
the risks facing the Group and the effectiveness
of internal controls. The Audit Committee
Chairand another Non-Executive Director
bothattended separate Group Risk Committee
meetings during the year to further understand
the Risk Management Framework and risk
processes which included how risks are
effectively identified and managed.
Managing major disruptions
anduncertainties
Major events in recent years, such as the
ongoing war between Russia and Ukraine,
theconflict in Gaza, shipping disruption
intheRedSea, COVID-19, and Brexit, have
presented significant challenges and
uncertainties to theGroup, specifically across
our supply chain, operations, and workforce.
In addition, economic uncertainty, inflation,
andinterest rates continue to put pressure
onhousehold budgets and despite initial
indications that inflation is falling, the timeline
of the current cost of living crisis remains
uncertain. The Group continues to closely
monitor these situations to ensure our
operational resilience remains strong and
hasrobust measures to identify and manage
potentially disruptive events should they arise.
We routinely track retail data in categories
inwhich we operate to ensure that suitable
strategies are developed to minimise the effect
of any potential economic downturn. In light
ofthis, innovation and product development
remain integral, such as the Group’s ongoing
expansion of ‘slow cook’ ranges to help offer
restaurantquality, budget friendly meals
inthe home.
Business continuity remains a key mitigation
forthe Group as it ensures operational
resilience during unexpected disruptions
andevents. During the year, we started work
with abusiness continuity specialist to review
andupdate our existing business continuity
arrangements with a view to stress-test the
effectiveness of plans in the year ahead.
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African Swine Fever and Avian Influenza
African Swine Fever (‘ASF’) is a notifiable
disease within pigs which is transferred directly
from animal to animal through infected feed,
clothing, equipment and vehicles. If ASF arrived
in the UK, this could significantly impact the
Group’s operations and our ability to export
overseas for a sustained period of time.
During the year, following a rise in the number
of cases across Europe, the Group continued
tocloselymonitor the risk of ASF spreading
fromoverseas. Despite UK border controls,
therisk of ASF entering the country remains
possible due to non-commercial andillegal
imports. During the year, the Group continued
to enhance its farm bio-security protocols
andcontingency plans, and continues to
workwith industry bodies to identify further
mitigation strategies.
Avian Influenza (‘AI’) is a notifiable disease
which spreads from bird to bird by direct
contact or through contaminated items such
as feed, water, vehicles and clothing. This year
the UK has seen a decrease in the number of
AIcases in both commercial and domestic birds
in comparison to previous years. Despite this,
our poultry farms continue to enhance their
bio-security measures to help prevent the
spread including restricting non-essential
visitors and movement between sites,
disinfecting vehicles before entry, and
providing further training tostaff. The Group
continues to closely monitor the situation
withfrequent industry updates and
communications shared on a regular basis.
Climate-related risks
The Group’s ‘Climate Change’ principal risk
considers the physical risks caused by climate
change and transitional risks associated with
the shift to becoming a carbon-zero business.
The Group agrees and monitors any climate-
related mitigation strategies and assurances
ona regular basis.
The Internal Audit and Risk Team works
closelywith the Sustainability Team as
across-functional unit toensure that all
climate-related risks are monitored and
updated on a regular basis, withregular
updates on all climate-related matters provided
during the course ofthe year to the Group
Risk Committee.
Our TCFD report outlines our key disclosures
on the four areas recommended by TCFD:
governance, strategy, risk management and
metrics and targets, which can be found on
pages 39 to 43.
Principal risk trends
During the year, the Group has seen
movements in a number of its principal risks,
asshown in the risk assessment map on
page68.
Specifically there have been decreases in the
following risks:
• ‘Growth and Change’, ‘Reliance on Key
Customers and Exports’ and ‘Pig Meat
Availability and Price’ due to the successful
acquisitions made during the year
(e.g.Elsham Linc Limited), which have led to
less reliance on exports and an increase in
the supply of pigs from Group-owned farms.
• ‘Adverse Media Attention’ as our approach
for identifying and reacting to adverse media
is now well established and embedded
across the Group.
• ‘Food Scares and Product Contamination’
asthe ‘Brilliant Basics’ campaign signage,
procedures, rules and guidance have been
successfully embedded at all sites.
• ‘Disease and Infection within Livestock’
asfurther work has been progressed on ASF
contingency plans together with one of our
sites obtaining a licence to be a designated
production facility in the event of an ASF
outbreak inthe UK.
Increases have been seen in the following risks:
• ‘Health and Safety’ following several industry
specific Health andSafety incidents reported
in the media.
• ‘IT Systems and Cyber Security’ as, despite
the enhancement of the Group’s existing
cyber processes and controls
(e.g.introduction of a Cyber Security Team
andSteering Committee), we have seen
anincreased number of cyber attacks across
the food industry.
As noted in the previous year, ‘COVID-19’
and‘Brexit Disruption’ principal risks have
beenremoved as they no longer pose a
materialrisk to the Group. Management of
these tworisks is now embedded within our
day-to-day operations.
Key priorities for next year
The Group continuously reviews and improves
our approach to risk management in order to
identify new opportunities to support effective
and appropriate decision-making. In particular,
next year we plan to:
• Enhance our risk management IT system
togive greater simplicity and effectiveness
to our reporting process. This will help
todrive risk culture due to its additional
collaboration capabilities and options to
create more interconnectivity of risks across
different areas of the business;
• Complete a series of deep dive risk reviews
across key principal risks to provide third-line
assurance and ensure that risk assessments,
controls and actions are appropriate and
consistently documented within our risk
management ITsystem;
• Refine our approach to identifying, assessing
and monitoring key controls at both a Group
and operational level, to ensure that robust
mitigation strategies and levels of assurance
are in place. This will align with the
requirements of the updated UK Corporate
Governance Code; and
• Continue to ensure that there is a cross-
functional team responsible for TCFD
withanadditional focus on further
integrating TCFD risks into our existing
RiskManagement Framework.
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PRINCIPAL RISKS AND UNCERTAINTIES
Risk assessment map
Category Principal risks Risk owner Risk trend
Strategic
1
Competitor Activity Group Marketing Director
2
Climate Change Head of Sustainability, Strategy and ESG
3
Growth and Change Group Marketing Director
Commercial
4
Reliance on Key Customers and Exports Group Marketing Director
5
Consumer Demand Group Marketing Director
6
Pig Meat Availability and Price Pork Procurement Director
7
Adverse Media Attention Group Marketing Director
Financial
8
Interest Rate, Currency, Liquidity and Credit Risk Director of Group Reporting and Control
Operational
9
Health and Safety Head of Health and Safety
10
Food Scares and Product Contamination Group Technical Director
11
Disruption to Group Operations Group Technical Director
12
IT Systems and Cyber Security Group IT Director
13
Labour Availability and Cost Group HR Director
14
Disease and Infection within Livestock Group Technical Director
15
Recruitment and Retention of Key Personnel Group HR Director
Business impact
Likelihood
1
2
6
10
4
14
9
8
12
11
13
15
7
3
5
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STRATEGIC REPORT
Risk trend
Risk increased
Risk unchanged
Risk decreased
Strategic enabler
Supply chain Iconic and relevant products
Lean processing Customer relationships
STRATEGIC
Competitor activity
Risk description and impact
Product innovation, changing
consumer trends, and operating in
highly competitive markets provide
a constant challenge to the Group.
Failure to manage these challenges
could adversely impact our
financialperformance.
Strategic
enabler
Mitigation strategy
Emerging trends and risks associated with
competitor activity are regularly discussed by
the Board, with appropriate actions deployed.
The Group develops and maintains strong
working relationships with its customers,
whichare underpinned by delivering high
levels ofcustomer service, quality products,
andaconsistent focus on product development
and innovation.
Actions in 2023/24
• A high proportion of the business
issecured in long-term contracts
andanumber of these have been
renewedover the last year.
• The Advantage Survey, completed
bykey customers, benchmarks
Cranswick’s performance against
otherfood manufacturers. This ranks
the business across supply chain,
commercial performance, technical
systems, andcategory development
andplaces Cranswick in a very
strong position.
Climate change
Risk description and impact
The Group is exposed to physical
risks caused by climate change and
transitional risks associated with the
shift to Net Zero. Failure to mitigate
these risks could impact our
regulatory compliance, financial and
operational performance.
Strategic
enabler
Mitigation strategy
The Group continues to develop its
SecondNature programme with a focus
onimproving production efficiency,
reducingcarbon emissions, and identifying
alternative options to decrease reliance
onimported soya for feed.
Actions in 2023/24
• We continued to address the impact
ofcarbon embedded within our animal
feed which included progressing the
transition to 100 per cent full mass
balance certified soya for our pig feed.
• We have successfully trialled renewable
diesel for our Northern HGV fleet and
reduced our associated CO
2
emissions
by over 95 per cent in the past year.
Growth and change
Risk description and impact
Our growth is dependent on securing
contracts with new customers,
retaining contracts with existing
customers, and reviewing acquisition
opportunities. The Group continues
to navigate through both internal and
external change requirements such
asregulatory changes, which could
present operational, reputational
andfinancial implications.
Strategic
enabler
Mitigation strategy
The Board receives regular updates on the
contractual position of all key customers and
implements necessary action where required.
Rigorous pre-acquisition due diligence reviews
are performed for all business acquisitions.
Internal and external change requirements are
appropriately considered to ensure operational
excellence and compliance with regulations,
with performance being monitored by
SeniorManagement and operational staff.
Actions in 2023/24
• Capital investment across the Group
continued to build capacity and
capability in existing facilities and also
enabled the acquisition of new facilities
and agricultural supply chains.
• The Group has secured new contracts
incooked meats, slow cooked and
added-value poultry in the year, and
continues to identify new
growth opportunities.
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PRINCIPAL RISKS AND UNCERTAINTIES
CONTINUED
COMMERCIAL
Reliance on key customers and exports
Risk description and impact
A significant proportion of the
Group’s turnover is generated from
a small number of major customers.
Loss of all (or part) of the Group’s
business with one or more of these
customers, or loss of an export
licence for a prolonged period of
time, could adversely impact the
Group’s financial performance.
Strategic
enabler
Mitigation strategy
The Group continually pursues opportunities
to expand its customer base across all product
categories and works closely with UK and
overseas customers to ensure service, quality,
food safety and new product developments
areof the highest standard.
Actions in 2023/24
• We continued to proactively engage with
potential new customers andmarkets
while strengthening relationships with
existingmajor customers.
• We continued to lobby the Government
and associated trade bodies to help
improve relationships with China and
other countries that theGroup exports to.
Consumer demand
Risk description and impact
The Group faces external economic
and social challenges, such as
inflation within the UK economy
andchanges to food consumption
patterns, which could lead to a fall
indemand for the Group’s products.
Strategic
enabler
Mitigation strategy
Even in volatile economic conditions,
pigandpoultry products remain extremely
competitively priced and sought-after products.
The Group is constantly reviewing emerging
trends in consumer eating habits, working
closely with its key customers to adapt to
changing consumer requirements, and offers
arange of products across premium, standard
and value tiers which can be flexed accordingly.
Actions in 2023/24
• We continued to work with retailers and
industry bodies to promote the role of
meat as part of a healthy, balanced and
sustainable diet.
• We have worked with our customers to
continue to promote our product ranges
and adapted our offerings including entry
level product ranges.
Pig meat availability and price
Risk description and impact
The Group is uniquely exposed to
issues associated with the availability
of pig meat and its price. A lack of
availability of pig meat or an increase
in pig prices could adversely impact
the Group’s operations and our
ability to supply key customers.
Strategic
enabler
Mitigation strategy
The Group has a trusted long-standing farming
supply base that is accompanied by supply
fromthe Group’s own farms, which has been
significantly increased by acquisitions and
investment over recent years.
Actions in 2023/24
• We have increased the number of pigs
supplied from our own farms through the
acquisition of Elsham Linc Farms, to help
uplift our own self sufficiency of supply.
• We continued to develop relationships
with local farmers to buy pigs on
short-term agreements when required.
Adverse media attention
Risk description and impact
The Group may face adverse media
attention as a result of alleged animal
welfare incidents, protests, vigils or
other operational incidents. Failure
to identify, escalate and respond to
adverse media coverage may result
in reputational damage.
Strategic
enabler
Mitigation strategy
The Group closely monitors business
andindustry related media attention.
Therearearrangements in place to
managemedia coverage in a consistent
andappropriatemanner.
Actions in 2023/24
• A number of new media monitoring
processes have been introduced and
enhanced internal communication flows
implemented when events happen.
• Additional training has been completed
at sites to ensure colleagues are able
todeal with any potential incursions
appropriately.
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FINANCIAL
Interest rate, currency, liquidity and credit risk
Risk description and impact
The Group needs continued access
tofunding for current business
activities, future growth and
acquisitions. In addition, the Group
isexposed to financial risk on
borrowings and foreign currency
fluctuations in some areas.
Strategic
enabler
Mitigation strategy
Sites have access to the Group’s overdraft
facility and bank balances are monitored
on a daily basis by the Group Finance Team.
All bank debt is arranged centrally, and
appropriate headroom is always maintained.
The Group uses currency hedging
arrangements to mitigate the risks associated
with foreign currency movements.
Actions in 2023/24
• We have continued to monitor our
currency,liquidity, interest, and customer
credit risks during the year and ensured
that the Group’s £250 million borrowing
facility remains appropriate.
Health and Safety
Risk description and impact
The Group is exposed to the risk
of breaching Health and Safety
legislations. Breach of these could
cause reputational damage and
couldlead to regulatory penalties,
restrictions on operations, fines,
or personal litigation claims.
Whilst no major health & safety
incidents have occurred in the year,
several incidents in the food industry
have been reported in the media.
Strategic
enabler
Mitigation strategy
The Group has robust Health and Safety
processes and procedures in place which
areperiodically independently reviewed,
conform to all relevant regulations and
standards, andembrace industry best practice.
All sites are subject to frequent audits by
internal teams, customers, and regulatory
authorities to ensure standards are being
adhered to.
Actions in 2023/24
• The Group has finalised a new three-year
Health and Safety strategy and launched
apaperless reporting, inspection, and risk
assessment system.
• Due to enhanced ways of working, the
Group has seen a reduction in RIDDOR,
lost time, and total accidents compared
toprevious years.
Food scares and product contamination
Risk description and impact
The Group is subject to the risk of
accidental or deliberate product
orrawmaterial contamination, and
potential health related industry-wide
food scares. Incidents could lead to
product recall costs, reputational
damage, and regulatory penalties.
Strategic
enabler
Mitigation strategy
The Group ensures all raw materials
aretraceable to the original source.
Site manufacturing, suppliers,
storage,anddistribution systems are
continually monitored.
The Group has established crisis
managementprocedures to reduce potential
impacts andimprove communications to key
internal stakeholders.
Actions in 2023/24
• We have restructured our approach to
operational audits to ensure a more holistic
and in-depth review is taken, focusing
onfood safety, integrity, and quality within
the factory.
• Our ‘Brilliant Basics’ campaign has been
rolled out across the business to further
embed food safety and hygiene culture,
and has been equally well received by
colleagues and customers.
Disruption to group operations
Risk description and impact
Significant incidents such as fire,
floodor loss of key utilities,
togetherwith the breakdown of key
machinery, could result in prolonged
disruption to site operations.
Strategic
enabler
Mitigation strategy
Continuity plans are in place and insurance
arrangements exist across the Group to
mitigate financial losses.
Business disruptions are minimised through
potentially utilising multiple sites to operate
manyof the Group’s core product lines.
Actions in 2023/24
• In consultation with a third-party business
continuity specialist, the Group has started
reviewing and updating its existing
businesscontinuity arrangements.
• The Group has conducted a thorough
review of its insurance arrangements to
ensure that they provide sufficient cover.
OPERATIONAL
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OPERATIONAL CONTINUED
IT systems and cyber security
Risk description and impact
In common with other businesses,
theGroup is susceptible to cyber
attacks. Such incidents could impact
the Group’s financial performance
andbe a threat to the overall
confidentiality andavailability
ofsystems data.
While no material cyber security
breaches have occurred over the
course of the year, the Board is aware
of the ongoing risks in this area,
giventhe increasing sophistication
andevolving nature of this threat.
Strategic
enabler
Mitigation strategy
The Group has a robust IT control framework
in place which is reviewed and tested
onafrequent basis by internal teams and
specialist third parties.
Cyber insurance is in place across theGroup
which provides financial cover and specialist
technical and legal support in the event of
asignificant cyber incident.
Actions in 2023/24
• A Cyber Security team has been created
within our Group IT Department who are
responsible for improving our security
posture and reducing security risk.
• We have introduced a documented cyber
incident response plan and engaged with
independent third-party cyber security
specialists to assess our security posture
and maturity.
Labour availability and cost
Risk description and impact
The Group faces external political
andeconomic pressures which can
affect the availability and associated
costs oflabour or specialist skills.
Failure to manage this could
adversely impact the Group’s
operations and financial
performance.
Strategic
enabler
Mitigation strategy
The Group is continually reviewing
andimproving its recruitment processes
andrelationships with third-party agency
providers to reflect changing market
conditions and levels of pay.
The Group is actively progressing options
toemploy more permanent members of staff.
Alternative methods of production are
beingconsidered to embrace emerging
technological advancements.
Actions in 2023/24
• We continued to look at alternative
routesfor recruitment to fulfil our
skilledworkerrequirements and have
focused on recruiting agency staff
ontopermanent contracts to protect
keyroles inthe business.
• We have enhanced our reward and
recognition platform which offers
anumber of benefits to staff.
Disease and infection within livestock
Risk description and impact
The Group faces risks associated
withoutbreaks such as African
SwineFever (‘ASF’) or Avian
Influenza(‘AI’). Suchoutbreaks
couldresult in the lossof supply
ofpigor poultry meat, oraffect the
free movement oflivestock, which
mayimpact the Group’s operations
andfinancial performance.
Strategic
enabler
Mitigation strategy
The Group’s pig farming activities, and other
farms from which third-party pig meat is
sourced, have a broad geographical spread
to avoid relying on a single production area.
The Group’s poultry flock is housed indoors
which reduces the risk of disease.
Robust vaccination and bio-security protocols
mitigate the risk of disease and infections
within the Group’s pig and poultry farms.
Actions in 2023/24
• The Group has lobbied relevant
government bodies to strengthen meat
checks at UK borders and to clarify the
proposed changes to disease legislation,
ensuring the industry can respond quickly
and effectively in the event of an outbreak
of ASF in the UK.
• We continue to trial rapid disease
diagnostic equipment to improve disease
surveillance, disease management and
appropriate intervention within our
farming businesses.
Recruitment and retention of key personnel
Risk description and impact
The strategic growth and success
of the business is dependent on
attracting and retaining quality,
skilledand experienced personnel.
Failure to do this could adversely
impact the Group’s operations and
financial performance.
Strategic
enabler
Mitigation strategy
Robust recruitment processes, competitive
remuneration packages, ongoing training,
and development plans are in place across
the Group.
Formalised succession plans are in place
forkey personnel.
Actions in 2023/24
• We have recruited 12 graduates during
the year across Commercial, IT, Technical
and generalist schemes. In addition,
wecurrently have 34 degree apprentices
and a further 118 skilled apprentices
completing their training in various
functions across the business.
• Management training and succession
planning continues at all levels up to and
including the Board to secure our talent
pipelines and ensure ongoing
development for the future.
PRINCIPAL RISKS AND UNCERTAINTIES
CONTINUED
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STRATEGIC REPORT
VIABILITY STATEMENT
In accordance with the provisions
of the UK Corporate Governance
Code, the Board has assessed
theviability of the Group over
anappropriate time period, taking
into account the current position,
future prospects and the potential
impact of the principal risks to the
Group’s business model and ability
to deliver its strategy.
The Board has determined that a three-year
period to March 2027 is an appropriate period
over which to provide its Viability Statement.
This time frame has been specifically chosen
due to the fast-moving nature of the food
industry and the current financial and
operational forecasting cycles of the Group.
In making this assessment of viability,
theBoardcarried out a robust assessment
oftheprincipal risks and uncertainties facing
theGroup as well as considering material
macroeconomic conditions and geopolitical
challenges. Detailed assessment of the
principal risks is detailed in pages 69 to 72
ofthis report.
Principal risks which were assessed to have the
highest likelihood of occurrence or the severest
impact, crystallising both individually and in
combination, were considered. These risks
included: reliance on key customers and
exports; labour availability and cost; adverse
media; disease and infection within livestock,
inparticular focusing on an outbreak of Avian
Influenza and African Swine Fever in the UK
andEurope; the loss of customer demand;
andthe potential impact of climate change.
Having considered the magnitude of the
principal risks, the linkage between them
andpotential mitigation, as well as the level
ofuncertainty surrounding the risk,
theconclusion was reached that extensive
modelling was only required on the loss
ofcustomer demand and the impact of disease
and infection in livestock, in particular focusing
on the risk of both anoutbreak of Avian
Influenza impacting ourchicken flock and
awidespread outbreak ofAfrican Swine Fever
inthe UK and Europe.
In establishing relevant severe but plausible
downside scenarios, the Board has considered
the impact of a significant reduction in
customer demand for premium and value-add
products and an outbreak of Avian Influenza
(‘AI’) and African Swine Fever (‘ASF’) on the
Group. The viability assessment has been
performed by completing a sensitivity analysis
of severe but plausible scenarios materialising
and comparing them to a base case.
Although we are seeing improving
customerconfidence and growing demand
forpremium products, current economic
andgeopolitical challenges have a potential
todisrupt thedemand for Cranswick’s
products. Key assumptions of the scenario
analysis included an overall five per cent
reduction inrevenue across most of
Cranswick’s businesses. Additionally, a further
five to tenpercent decrease in revenue
wasprojected forbusinesses specialising in
premium andvalue-added products, which
areusually moreexpensive andconsidered as
atreat, ratherthannecessity. Assumption was
made that the tangible effects will commence
promptly following the signing of the Group’s
financial statements inJune 2024 and persist
throughout the entireviability period. Given the
relatively briefimpact period, noworkforce
redundancies were assumed, andcentral costs
remained unadjusted.
In respect of African Swine Fever, the most
severe but plausible downside scenario
identified was the inability to sell any pork
products in the UK during the affected period.
This scenario also assumed that the facilities,
which supply solely pork products, or which
areunlikely to have sufficient demand for
alternative proteins, are closed and most
employees at those facilities are made
redundant. Moreover, it was assumed that
themajority of multi-protein sites do not fully
recover pork volumes, resulting in additional
demand for poultry and continental products,
which in turn led to increased poultry prices
due to reduced protein availability.
Mitigating actions in the scenario analysis
included management of discretionary
andcapital expenditure.
The Avian Influenza severe but plausible
scenario has been modelled based on the
latestUK Government’s guidance, observations
from current UK AI cases and the experience
ofthe Group over the past 12 months.
This scenario assumed that all UK poultry
farms,including both broilers and breeders,
areinfected and, asa result, the Group is unable
tosell any fresh poultry products during the
impacted period. Given the UK’s experience
with Avian Influenza, however, it is expected
that the disease could be actively managed
withchicken flocks replenished within a short
period of time. Assumption was also made
thatother Cranswick Group entities, currently
buying poultry produce from Cranswick’s
poultry businesses, would be able to source
materials from alternative sources. Given the
relatively brief impact period, noworkforce
redundancies were assumed, andcentral costs
remained unadjusted.
The sensitivity analysis utilised the Group’s
robust three-year budget and forecasting
process to quantify the financial impact on
thestrategic plan and on the Group’s viability
against specific measures including liquidity,
credit rating and bank covenants.
Given the strong liquidity of the Group, the
committed banking facilities and the diversity
ofoperations, the results of the sensitivity
analysis highlighted that the Group would,
overthe three-year period, be able to withstand
the impact of the most severe combination of
the risks modelled by making adjustments to its
strategic plan and discretionary expenditure,
with a strong headroom against current
available facilities and full covenant compliance
in all modelled scenarios.
Based on the results of this analysis, the Board
has a reasonable expectation that the Group
will be able to continue in operation and meet
its liabilities as they fall due over the period to
27 March 2027.
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STRATEGIC REPORT
NON-FINANCIAL AND SUSTAINABILITY
INFORMATIONSTATEMENT
The table below is intended to set out where stakeholders can find information on key areas in accordance withthe
Non-Financial Reporting requirements contained in sections 414CA and 414CB of the Companies Act2006.
Reporting requirement Policies References
Environmental matters Group Environmental & Energy Policy
Group Water Policy
Group Deforestation Policy
Group Sustainability Procurement Policy
Animal Welfare Policy
ISO140001 accreditation
Above policies can be found on our website: www.cranswick.plc.uk
A description of the Group’s work on our sustainability
strategy Second Nature can befound on pages
30to37 and on pages 44to 46.
The Group’s work on procurement and animal welfare
are discussed on pages 57 to 59.
Employees Health and Safety Policy
Group Equal Opportunities, Harassment andDignity at Work
Above policies can be found on our website: www.cranswick.plc.uk
A description of the Group’s activities in relation to
employees, including our Health and Safety activities
can be found on pages 51 to 54.
Human Rights Group Human Rights Policy
Anti-slavery and Human Trafficking Policy
Group Equal Opportunities, Harassment andDignity at Work
Above policies can be found on our website: www.cranswick.plc.uk
We remain vigilant when it comes to excluding modern
slavery and human trafficking from oursupply chains.
For further information, please see below.
Social matters Group Ethical Trading Policy
Group Corporate Responsibility Policy
Group Sustainable Procurement Policy
Above policies can be found on our website: www.cranswick.plc.uk
Cranswick is committed to doing business
in an ethical way and our policies apply to all operations.
For more details, see pages 47to64.
Anti-corruption
andanti-bribery
Anti-Bribery Policy
Group Ethical Trading Policy
Above policies can be found on our website: www.cranswick.plc.uk
The Group’s policies set out the high standards expected
when it comes to doing business fairly and interacting
with stakeholders. See below for further information.
Description of principal
risks and impact
ofbusiness activity
See pages 69 to 72.
Description of the
business model
See pages 6 to 9.
Non-financial KPIs See page 25.
Human Rights
Respect for Human Rights is fundamental
tothesustainability of our business. We have
aresponsibility to ensure that our colleagues,
our customers, the communities we operate
inand the people who work throughout our
supply chain are treated with dignity and
respect. We are committed to creating a safe,
equal and diverse workplace with fair terms
andconditions for all our employees.
We provide our employees with information,
guidance, training and equipment to carry out
their duties safely, and the mental wellbeing
ofour people is just as important as their
physical safety. We are also a member
ofSEDEX which helps us manage supplier
performance on business ethics. This helps
usmake informed business decisions and
drivecontinuous improvement across
thesupply chain.
Anti-slavery and human trafficking
We are committed to ensuring that there
isnomodern slavery or human trafficking
inoursupply chains or in any part of our
business. Our Anti-slavery and Human
Trafficking Policy reflects ourcommitment
toacting ethically and with integrity in all our
business relationships. We have implemented
and enforce effective systems and controls
toensure slavery and human trafficking is not
taking place anywhere in our supply chains.
We monitor ethical standards across the
business on a regular basisboth internally
andvia external third-party audits.
Robust technical and traceability systems
ensure that our products are responsibly
sourced from suppliers whose values are
aligned with ourown. We provide training
toour staff and allour HR teams and our
GroupTechnical team have attended
workshops and awareness sessions.
Anti-bribery
It is Cranswick’s policy to conduct business
in an open and honest way, without the use
of corrupt practice or acts of bribery.
Cranswick has a zero-tolerance attitude
towards acts of bribery. We expect all
customers, suppliers and business associates
to support us in this policy. The policy is
mandatory to all individuals working for,
oronbehalf of, the Group, regardless
ofwherethey are based and whether they
aredirectly employed by the Group.
Whistleblowing Policy
The Group uses an independent third-party
whistleblowing hotline system, which enables
employees and third parties to report,
anonymously if required, any concerns.
The whistleblowing line is available 24 hours
per day, 7 days per week and 365 days a year.
It is also available for translation into most
languages. Steps are also taken during the
yeartopublicise the availability of the hotline
totheGroup’s employees.
The operation of the Group’s whistleblowing
arrangements is subject to annual review by
theBoard and periodic audit by the Group’s
Internal Audit function.
Whistleblowing Reports are reviewed
quarterlyby the Audit Committee and are
subject to anannual review by the Board.
During the 53weeks ended 30 March 2024,
thirty whistleblowing reports were received
and investigated, which related predominantly
to human resource related matters. In the year,
eleven whistleblowing grievances were
raisedin relation to bullying and harassment,
eightforhealth and safety matters, seven
ondiscrimination and work relations, three
concerns over pay rates and one in relation
toinappropriate behaviour.
Our Strategic Report for the 53 weeks ended
30 March 2024, from the inside front cover to
page 74, has been reviewed and approved by
the Board and is signed by order of the Board.
Steven Glover
Company Secretary
21 May 2024
Cranswick plc Annual Report & Accounts 2024
74
STRATEGIC REPORT
CORPORATE
GOVERNANCE
74
78
80
82
84
89
91
92
93
94
96
101
105
112
122
132
137
Chairman’s Overview
Board of Directors
How we are Governed
Board Activities Stakeholders Engagement
Board Activities
Board Activities Governance Framework
Board Effectiveness
Board Leadership and Purpose
Compliance Statement
ESG Committee
The Audit Committee
The Nomination Committee
The Remuneration Committee
Remuneration Policy
Annual Report on Directors’ Remuneration
Directors’ Report
Statement of Directors’ Responsibilities
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
75
Corporate governance
THERE HAS BEEN A
SIGNIFICANT FOCUS
ON INCREASING THE
GROUP’S LONG-TERM
RESILIENCE BYINVESTING
IN OUR SUPPLY CHAINS,
AGRICULTURE AND SEEKING
TO ADDRESS LABOUR
AVAILABILITY ISSUES.
Tim J Smith CBE
Chairman
CHAIRMAN’S OVERVIEW
As the Group continues to drive
growth through its vertically
integrated business model,
theBoard has taken into account
the impact on our stakeholders
aswe continue to promote
delivery of the Group’s strategy.
Securing our growth
Whilst general inflation has eased since the
publication of last year’s Annual Report &
Accounts, food inflation (whilst decreasing)
remains an issue for consumers as cost-of-living
pressures continue. This is combined with
increasing concern about UK food security
andreliance on extended supply chains in an
environment of political instability and change
globally. Concerns are further compounded
bythe availability of labour in the food sector,
which is required to underpin delivery of
UKfood security. The resilience of the UK’s
food supply has been significantly tested
inrecent years and there is no sign that
thoseunexpected events, and others
whichcould have been foreseen, will reduce
infrequency orseverity. There is a clear
needfor government to provide long-term
leadership ofthe food system.
The Board continues to monitor the impact
ofinflation on our stakeholders including
consumers, the communities we operate
inandour colleagues. Whilst we remain
concerned about this, there has also been
significant focus on increasing the Group’s
long-term resilience by investing in our supply
chains, agriculture and seeking to address
labour availability issues through various
recruitment initiatives and investment in further
automation. We do this whilst also balancing
our Second Nature sustainability strategy
tomake meat more sustainable and to become
thefood industry’s most sustainable business.
This requires our corporate governance
processes to take into account and balance
awide range of resulting considerations
relating to our stakeholders. We appreciate
that this means it is not possible to always
accommodate fully all conflicting interests
andthat there will often be a range of views
onkey decisions. However, the Board is mindful
ofthis and its responsibilities and we have
explained inour Strategic Report and on pages
82 to 83of the Governance Report some ofthe
key decisions made and how we have taken
stakeholder interests into account.
The Board is responsible for corporate
governance and this report describes how
wehave applied the principles of the 2018
UKCorporate Governance Code (the Code)
throughout the year and considered the
often-competing interests of our stakeholders.
Our detailed compliance statement is set out
onpage 93 which explains those areas where
we have deviated from the Code and, where
appropriate, actions taken to address these.
Corporate Governance Reform
In January 2024, the Financial Reporting
Council (FRC) published the 2024 Corporate
Governance Code which will apply to the
Company from January 2025, which follows
earlier consultation by the Government relating
to trust in audit and corporate governance.
We welcome the targeted approach taken
bythe FRC and balance struck between UK
competitiveness and outcomes for companies,
investors and the wider public.
The new Corporate Governance Code includes
a number of changes in relation to Board
leadership and Company purpose, succession
and evaluation and remuneration, much of which
the Company has, in practice, already adopted
or is in the process of evolving to implement.
More substantive changes have alsobeen
introduced relating to audit, risk and internal
controls which enhance the Board’s obligation
to monitor and report on the effectiveness
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
76
ofsuch controls. In relation tothisand in
anticipation of the proposed changes, the
AuditCommittee initiated a project in 2022,
with the assistance of external consultants,
toreview and enhance our controls and to
monitor the effectiveness of these over the
Company’s material financial, operational,
reporting and compliance risks, which will
ensure full compliance by the Group within
theFRC’s deadlines for implementation.
Separately, we also welcome the FRC’s
marketstudy on the UK sustainability assurance
market, where we believe there is greater
scopeto establish clearer market practice
andstandards to assist companies in making
appropriate disclosures and shareholders
toreview these to assess ESG performance.
Operation of the Board
During the year the Board met regularly,
withanumber of site tours being undertaken
byDirectors at the Group’s facilities to review
key investments being made and gainfirst-hand
experience of the Group’s operations and
engage with our wider workforce.
Topics considered by the Board during
theyearare set out on pages 82 to 88
oftheGovernance Report. The Board
continued toconsider the interests of all its
stakeholders when making its decisions and
afurther explanation identifying the Group’s
various stakeholders and how their interests
have beentaken into account, along with
oursection 172(1) Statement, is set out on
pages 47 to50 of the Strategic Report.
Matters considered by the Board covered
broad strategic concerns and included an
ongoing review throughout the year of labour
availability, particularly in light of proposed
Government changes to established migration
schemes. The Board engaged with relevant
Government Departments, Labour shadow
ministers and industry groups relating to this
given its central importance to the food sector.
The Board also reviewed a range of strategic
investments in the Group’s existing facilities
and through complementary business
acquisitions which give the Group further
control over its supply chain to enable
continuity of supply to its retail customers.
Given challenges faced by the sector,
theBoardbelieves this will become increasingly
important and a key differentiator tothe
Group’s UK competitors.
This year, the Remuneration Committee
hasundertaken its scheduled triennial
reviewoftheDirectors’ Remuneration Policy.
The changes proposed are the result of
extensive consultation with stakeholders
andreflect the Board’s desire to incentivise
theExecutive Directors to remain with the
business and continue to promote the growth
of the Group over the medium-term,
whilstcontinuing to take the prudent view
whenmanaging risk that has served us so well
to date.In particular, the proposals include
newincentives to achieve growth above and
beyondthat targeted under the Group’s
existing incentive schemes, which reflects
theconfidence and ambition that the Group
hasinits growth strategy and executive team.
I amalso very pleased that we have been
abletointroduce a new Buy As You Earn share
incentive plan, available to all our workforce,
which will further broaden engagement of our
colleagues in the future success of the business.
Details of these changes are set out in the
Remuneration Committee report on pages
105to 111.
Last year, Board effectiveness was reviewed
through an independent external process
andwe have reported on the implementation
ofsteps taken to enhance the governance
ofthe Company and independence of the
Board in light of the recommendations made.
Further details can be found on page 91
oftheGovernance Report.
Board succession and diversity
During the year we appointed Alan Williams
asa Non-Executive Director, who until
recentlywas the Chief Financial Officer of
Travis Perkins plc, bringing significant financial
experience combined with food sector
experience, having also previously had senior
roles at Greencore and Cadbury. Alan has
succeeded Liz Barber asChair of our Audit
Committee and has also joined our Nomination
and ESG Committees. We also recently
announced the appointment of Rachel Howarth
as an additional Non-Executive Director from
30 April 2024. Rachel is the Group People
Officer at Whitbread plc and was previously
theGroup HR Director of SSP Group plc and
has become amember of the Remuneration,
Nomination andESG Committees.
Details of the processes undertaken in relation
to the appointment of Alan and Rachel are set
out in the Nomination Committee Report on
pages 101 to 104.
During the year Mark Reckitt and Pam Powell
both retired as Non-Executive Directors.
We thank both for their contribution to the
Group and wish them well for the future.
The Nomination Committee also reviewed
diversity initiatives being undertaken and
hasconsidered various voluntary disclosure
requirements being promoted relating to
ethnic diversity. Whilst over the longer-term
diversity is being addressed through
ourrecruitment and graduate programme
supplemented by external recruitment and
enhanced policies and training, we recognise
that our current senior management are not
ethnically diverse, which is discussed in more
detail, along with measures we are taking to
promote diversity and inclusion, on page 104
ofthe Nomination Committee Report and
onpage 54 of the Strategic Report.
Sustainability
Our ESG Committee has continued to develop
over the year, overseeing the refresh of our
Second Nature strategy to make it more
accessible, relevant and relatable for our
stakeholders. I am also pleased that the
Committee has taken significant steps in
relation to the promotion of social sustainability,
which we recognised required further
development in last year’s Annual Report and
Accounts, with the establishment of a Social
Impact Committee to provide more focused
support for this element of our ESG agenda.
Further details of the ESG Committee and
itsactivities are set out in the ESG Committee
Report on pages 94 to 95.
Governance
Your Board is committed to continuing to
maintain a high standard of governance and
adopting best practice as this develops.
This report explains how we have applied
theprinciples of good governance and have
aligned these during the year to our strategic
plans and the interests of Shareholders.
Tim J Smith CBE
Chairman
21 May 2024
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
77
BOARD OF DIRECTORS
TIM
SMITH CBE
ADAM
COUCH
MARK
BOTTOMLEY
JIM
BRISBY
CH R I S
ALDERSLEY
Non-Executive Chairman Chief Executive Chief Financial Officer Chief Commercial Officer Chief Operating Officer
Term of office
Tim was appointed as an
independent Non-Executive
Director in 2018 and was
appointed as Chairman
in 2021.
Adam was appointed to
theBoard in 2003 as
Managing Director of
FreshPork andbecame
Chief Executive in 2012.
Mark was appointed
to the Board in 2009
asFinance Director.
Jim was appointed to the
Board in 2010 as Sales and
Marketing Director and
became Commercial
Director in 2014.
Chris was appointed to the
Board as Chief Operating
Officer in 2022.
Committee membership
R
E
Chair
N
Chair
E
E
E
E
Independent
Yes Not applicable Not applicable Not applicable Not applicable
Skills and experience
Tim has experience in
theUK food sector
havingworked in food
manufacturing, government
regulation and supermarket
retail. Tim was the Group
Quality Director at Tesco
plc between 2012 and 2017.
Prior to joining Tesco plc,
Tim was the Chief Executive
of the Food Standards
Agency (‘FSA’), during
which time he led a strategic
review of the agency.
Before joining the FSA,
Timled a number of food
businesses. Tim was
appointed a CBE in 2022
for services to the food
andagriculture sector.
Adam joined
Cranswick’s Fresh
Pork business in 1991
andwas appointed to the
Boardin 2003 as Managing
Director of Fresh Pork.
He was appointed as Chief
Operating Officer in 2011
and then Chief Executive in
2012. Under his leadership,
Cranswick has continued
toexpand and become
amajor player in the food
processing industry.
Adam was a committee
member of the British Pig
Executive between 2005
and 2013.
Mark joined Cranswick in
2008 as Group Financial
Controller and was
appointed to the Board as
Finance Director in 2009.
Before joining the Company,
Mark held a number of
senior finance roles in the
food sector. Mark is
responsible for overseeing
the financial operation
of the Group and setting
financial strategy. Mark is
aChartered Accountant.
Jim joined Cranswick in
1995. He was appointed
Sales and Marketing
Director in 2010 and
Commercial Director in
2014 and has been a key
member of the team
responsible for the
growthof the Group
and the development of
itscommercial strategy.
Chris joined Cranswick in
1998 and since then has
undertaken a variety of
senior management roles,
becoming the Group’s Chief
Operating Officer in 2015.
Chris has responsibility for
manufacturing operations
at the Group’s primary
processing and added-value
facilities and also for its
agricultural operations,
which support the Group’s
vertically integrated
supply chain.
External appointments and commitments
Non-Executive Director
of Pret a Manger (Europe)
Limited.
Non-Executive Chairman
of Sheffield
Hallam University.
Member of the UK
Government’s Agri-Food
Trade Advisory Group.
Non-Executive Director
of Vp plc.
None None
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
78
1
1
3
1
3
Board by Age
46 – 50
51 – 55
56 – 60
61 – 65
66 – 70
6
3
Board by Gender
Male
Female
0 – 3 years
3 – 6 years
6 – 9 years
Over 9 years
3
4
1
1
Board by Tenure
LIZ
BARBER
ALAN
WILLIAMS
YETU N D E
HOFMANN
RAC H EL
HOWARTH
Senior Independent
Non-Executive Director
Non-Executive Director Non-Executive Director Non-Executive Director
Liz was appointed as an
independent Non-Executive
Director in 2021 and is the
Senior Independent
Director and Interim Chair of
the Remuneration Committee.
Alan was appointed
asanindependent
Non-Executive Director
in2023 andisChair
oftheAudit Committee.
Yetunde was appointed
as an independent
Non-Executive Director
in2022 and is the
Non-Executive Director
responsiblefor
workforce engagement.
Rachel was appointed
as an Independent
Non-Executive Director
in 2024.
A
E
N
R
Chair
A
Chair
E
N
A
E
N
R
N
R
E
Yes Yes Yes Yes
Liz has experience of the UK
utility sector. She was Chief
Executive of Kelda Group
where she undertook
various senior management
roles between 2010 and
2022. Prior to joining Kelda
Group, Liz was with Ernst &
Young where she was made
a partner in 2001 and was
the senior partner for audit
for the north of England.
Whilst at Ernst & Young,
Liz was the Company’s
audit partner between
2003 and2007.Liz is a
Chartered Accountant.
Alan was the Chief Financial
Officer of Travis Perkins plc,
the UK’s largest distributor
of construction materials.
Prior to this, Alan held
anumber of senior
management roles in the
food sector having served
as CFO at Greencore
Group plc for six years and
previously working at
Cadbury plc in a variety
offinancial roles in the UK,
France and the USA.
In addition to his finance
background, Alan has
extensive experience in
leading strategic initiatives,
mergers and acquisitions,
integrations and business
transformation. Alan is a
member of the Institute of
Management Accountants.
Yetunde has experience
gained in mergers and
acquisitions, business
operating model
transformation,
organisational capability
development and growth
and international expansion.
Yetunde is the Managing
Director of Synchrony
Development Consulting,
an international leadership
and change consultancy
thatpartners with leaders
tofacilitate strategy, change,
diversity and inclusion and
the founder of Solaris Global
Executive Leadership
Development. She is also
avisiting fellow at the
University of Reading’s
Henley Business School of
Marketing and Reputation.
Rachel is the Group People
Officer at Whitbread plc,
which is the owner of
Premier Inn, the UK’s
biggest hotel brand
employing over 39,000
people in over 1,700
Premier Inn hotels and
restaurants across the UK.
Rachel was previously the
Group HR Director with SSP
Group plc, before which she
spent sixteen years with
Tesco plc, in operational and
human resource capacities
and has also served as an
officer in the Royal Air
Force, specialising in
logistics and supply chain.
Non-Executive Director
ofRenew Holdings plc,
HICL Infrastructure plc,
Encyclis Limited and
Sizewell C Limited.
Non-Executive Director
ofKCOM plc between 2015
and 2019.
Executive Director of
TravisPerkins plc between
2017 and 2024.
Board Trustee at the
Institute of Business Ethics.
Managing Director of
Synchrony Development
Consulting and The
Enjoyable Life Series CIC.
Founder of Solaris Global
Executive Leadership
Development.
Non-Executive Director
ofTreatt plc between
2019 and 2023.
None
Audit Committee
Environment, Social
and Corporate
Governance Committee
Committee
Membership
A
E
R
Remuneration
Committee
Nomination Committee
N
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
79
HOW WE ARE GOVERNED
Attendance
There were ten scheduled Board meetings held during the year and a number of other meetings and conference calls were convened for specific
business matters. All Directors are expected to attend the scheduled Board meetings and relevant Committee meetings in addition to the AGM unless
they are prevented from doing so by prior work or extenuating personal commitments. Where a Director is unable to attend a meeting, they have
theopportunity to review relevant papers and discuss any issues with the Chairman in advance of the meeting. Following the meeting, the Chairman,
orCommittee Chair as appropriate, also briefs any Director not present to update them on key matters discussed and decisions taken.
Details of Board membership and attendance at scheduled Board meetings are set out below:
Board
Audit
Committee
Nomination
Committee
Remuneration
Committee
ESG
Committee
Meetings held during the year 10 5 4 5 3
Meetings
attended
Meetings
attended
Meetings
attended
Meetings
attended
Meetings
attended
Executive Directors
Chris Aldersley 10/10 N/A N/A N/A 2/3
1
Mark Bottomley 10/10 N/A N/A N/A 3/3
Jim Brisby 10/10 N/A N/A N/A 3/3
Adam Couch 10/10 N/A N/A N/A 3/3
Non-Executive Directors
Liz Barber 10/10 5/5 4/4 5/5 3/3
Yetunde Hofmann 9/10
2
5/5 3/4
2
4/5
2
2/3
2
Pam Powell 4/10
3
2/5
3
1/4
3
2/5
3
1/3
3
Mark Reckitt 4/10
4
2/5
4
1/4
4
2/5
4
1/3
4
Tim Smith 10/10 5/5
5
4/4 5/5 3/3
Alan Williams 6/10
6
3/5
6
3/4
6
N/A 2/3
6
Rachel Howarth 0/10
7
N/A 0/10
7
0/10
7
0/10
7
1. Chris Aldersley was unable to attend the April ESG Committee meeting due to a long-standing conflicting commitment prior to his appointment as a Director, which was approved by the Board.
2. Yetunde Hofmann was unable to attend the April Board, Nomination Committee, Remuneration Committee and ESG Committee meetings due to a long-standing conflicting commitment prior
toherappointment as a Director, which was approved by the Board.
3. Pam Powell retired as a Director on 1 September 2023 and attended all relevant meetings prior to retirement.
4. Mark Reckitt retired as a Director at the Company’s AGM on 24 July 2023 and attended all relevant meetings prior to retirement.
5 Tim Smith attends the Audit Committee as an observer.
6. Alan Williams was appointed as a Director from the Company’s AGM on 24 July 2023 and attended all relevant meetings following appointment.
7. Rachel Howarth was appointed as a Director on 30 April 2024 and therefore did not attend any meetings during the period reported.
N/A not applicable (where Director is not a member of the Committee). Executive Directors attend the various Committee meetings by invitation as required.
Operation
Conflicts of interest
The Board has completed its annual review
ofthe register relating to potential conflicts
ofinterest with its Directors and reviewed
TimSmith’s potential conflict of interest arising
as a result of his directorship of Pret a Manger
(Europe) Limited in relation to which controls
previously agreed remain in place. The Board
also reviewed Rachel Howarth’s potential
conflict of interest arising as a result of her
employment as executive of Whitbread plc
(which is a customer of the Group) in relation
towhich appropriate controls have been
agreed to address any conflict. No other
potential conflicts exist.
In cases where any conflict arises, it has been
agreed that the relevant Director does not
receive any confidential information relating
tothe relevant matter or participate in the
relevant deliberations of the Board.
Appropriate consideration would also be given
to any further measures required depending
onthe materiality and duration of any conflict
situation. The Board confirms that no actual
conflicts occurred during the course of the year.
Risk management and internal control
It is the Board’s role to protect the business
fromoperational and financial risks and it has
established a system of internal control which
safeguards the Shareholders’ investment and
the Group’s assets. Such a system provides
reasonable but not absolute assurance against
material misstatement or loss, as it is designed
tomanage rather than eliminate the risk
offailure to achieve business objectives.
The Board is responsible for reviewing the
effectiveness ofinternal controls. The Audit
Committee supports the Board in this process
by reviewing the Group’s principal risks, and
thereport on pages 68 to 72 further outlines
this process.
The Group operates within a clearly defined
organisational structure with established
responsibilities, authorities and reporting
linesto the Board. The organisational structure
has been designed in order to develop, plan,
execute, monitor and control the Group’s
objectives effectively and to ensure that internal
control is embedded within the operations.
The Board confirms that the key ongoing
processes and features of the Group’s internal,
risk-based, control system have been fully
operative throughout the year and up to the
date of approval of the Annual Report.
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Financial reporting
The culture of the business extends
totheprovision of financial information.
Operational management provide weekly
reviews, monthly trading reports, and annual
budgets and these are forwarded to Group
management and are discussed at monthly
siteoperating board meetings. Group Executive
Directors attend most of these meetings and
theinformation is consolidated and reported
atBoard meetings. The Group prepares an
annual budget and half year re-forecast that
areagreed by the Board, with the budget
including a three-year forecast for consideration
to support the Viability Statement. The use
ofstandard reporting software by all Group
entities ensures that information is presented
ina consistent manner which facilitates the
preparation of the consolidated financial
statements. Site directors and finance heads
arerequired to sign a monthly confirmation
thattheir business has complied with the
Group’s accounting policies and procedures,
with a more detailed confirmation provided
forhalf year and year end reporting.
Remuneration
The Remuneration Committee monitors the
executive remuneration packages and incentive
schemes and believes the incentives provide
astrong alignment between Shareholders,
theExecutive Directors and the wider Senior
Executive Management team.
The Remuneration Policy was agreed at the
AGM in 2021 and is subject to review at the
Company’s forthcoming AGM in July 2024,
when Shareholders will be asked to approve
arevised Remuneration Policy. This is included
in the Remuneration Committee Report on
pages 105 to 110 which provides further details
on Directors’ remuneration, together with
theactivities of the Remuneration Committee
during the year.
Stakeholders
The Board engages with the Company’s
stakeholders to enable it to understand their
interests and to facilitate effective decision-
making and discharge its duties under section
172(1) of the Companies Act 2006.
Further details of how the Board engages are
set out on page 82 and in our Section 172(1)
Statement on pages 47 to 50.
Relations with Shareholders
Regular engagement with investors provides
the Group with the opportunity to discuss
certain areas of interest and to ascertain any
areas of concern they may have. Further details
of steps taken by the Group to engage with its
Shareholders are set out on page 83. Details of
the Company’s major Shareholders are set out
on page 133.
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BOARD ACTIVITIES
STAKEHOLDER ENGAGEMENT
The Board engages with the
Group’s stakeholders to ensure
that it understands their interests
and can balance these
appropriately when discharging
its duty under section 172(1)
ofthe Companies Act 2006.
Wevalue interaction withour
stakeholders and regularly review
how to make our decision-making
process more inclusive in relation
to our stakeholders.
Stakeholder engagement is conducted through
anumber of channels which include established
engagement processes with our employees
andinvestors, and individual engagement by
Directors directly with the Group’s customers
and suppliers. Directors also participate in
various Government advisory bodies such as
the UK Government’s Agri-Food Trade
Advisory Group and regularly engage directly
with Government departments and agencies
such as the Department for Environment,
Foodand Rural Affairs (Defra) and the Animal
and Plant Health Agency. Directors also engage
with industry bodies such as the National
PigAssociation, RedTractor Pig Board and
Agriculture and Horticulture Development
Board. The views ofthe Group’s wider
stakeholders are then reported to the Board
byregular updates toensure that stakeholder
interests can be appropriately taken into
account and balanced.
Given the scope of the Group’s activities,
broaderstakeholder engagement is also
undertaken bythe Group’s senior management,
who have long established business-led
relationships withboth national and local
stakeholders and regularly engage directly
withretailer sponsored producer groups, our
local communities, councils and interest groups.
Any concerns or emerging stakeholder issues
identified by management arethen reported
inregular monthly management meetings
attended by the Executive Directors who,
where appropriate, willthemselves engage
directly and are also reported at scheduled
Board meetings.
Details of Board engagement with our workforce
and investors is described as follows.
Workforce engagement
We have 11,191 permanent full-time
employees, who are employed on full-time
contracts. We donot have any zero hours
contracts withinthis cohort of staff. We also
employ 355 permanent part-time employees,
and 2,996 agency employees who will either
have a contract forservices with
anemployment Agency, orbe employed
onapermanent contract withthe relevant
Agency. Where there is a permanent position
available foragency workers they willbe
employed onafull-time and permanent
contract with Cranswick after a 12-week
periodof time.
Our colleagues are key to the delivery of
ourstrategy, and we believe are one of the
keydifferentiators between Cranswick and
itscompetitors. Workforce engagement is
therefore a particular focus of the Board and
isundertaken through a number of channels.
We prioritise representation chosen by
ourworkforce, typicallythrough Works
Committees established at each site.
Additionally, where preferred byemployees,
wefacilitate representation through trade
unions. Currently, three of oursitesoperate
under collective bargaining agreements.
These mechanisms provide avenues for
employees to voice their opinions, share
suggestions, address concerns, and engage
inwage negotiations.
Non-Executive Directors also undertake
individual site visits where they are encouraged
to engage directly with colleagues at all levels
following which they feedback to the Board.
The individual visits andrelated agendas are
determined by the Non-Executive Directors
whoare encouraged tovisit any of our sites,
whichare then facilitated by the Group.
As indicated in last year’s report, the Group
hasappointed Yetunde Hofmann to take
overtherole of designated Non-Executive
Director responsible for workforce
engagement (ENED). We have also taken the
opportunity tostrengthen the engagement
process, enable broader involvement and
ensure a consistent andcoordinated approach.
This has involved engaging with a wider and
more diverse cross-section of the workforce
that goes beyond, without excluding,
established Works Councilsthat our
engagement had previously focused on.
We have also taken the opportunity to restate
thepurpose of employee engagement which
istounderstand what it is really like to work
atCranswick with the aim of this contributing
tothepurpose, vision and long-term success
oftheGroup. The key aims of our engagement
process are to:
• D evelop the u nd erst an din g of th e cul ture
ofthe Group in the context of the employee.
• En abl e gre ater in sig ht into i ssu es a nd
differences experienced by our workforce
atall levels.
• En han ce th e ab ilit y of t he B oar d to m ake
effective decisions that impact the long-term
success of the Group.
Yetunde’s responsibilities underpin putting
thepurpose of our employee engagement into
effect and include:
• M an agi ng th e pro ces s on b eha lf of t he
Board, including setting standards in relation
to the format of meetings and key
engagement topics to be raised.
• Li ais ing w ith c olle ag ues i n HR a nd
management (in particular the Chief
Operating Officer) to facilitate meetings.
• C oor din atin g an d atte ndi ng si te vis its a nd
engaging with local staff.
• Coordinating online cross company
engagement forums and meeting with
theGroupDiversity, Equality and
Inclusion Committee.
• I ssu in g re gu lar re por t s to th e Bo ard r aisi ng
inconfidence any issues that require
addressing and leading the annual Board
review ofemployee engagement.
During the year, seven ENED visits were
undertaken to a range of facilities covering
arange of the Group’s activities and geographic
regions that we operate in. Yetunde also met
withthe Diversity, Equality and Inclusion
Committee to review their work and understand
the challenges faced. Other Non-Executive
Directors are encouraged to also participate
inemployee engagement and participated
inanumber of theENED visits.
Key themes that were evident from the ENED
visits included the following:
• Pride in Work: At all facilities visited it
wasevident that there was a sense of pride
amongst the workforce in their facility
andthework that they were undertaking.
• Environmental: There was a significant
levelof understanding and engagement
withthe Group’s environmental agenda and,
inparticular, the Second Nature initiative.
• Health and Safety: There was a focus at
eachof the facilities on ensuring that
colleagues have a safe working environment
and that steps were taken to address any
risks identified.
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Outcomes from the visits included a number
ofrecommendations, which the Board has
reviewed and agreed further actions required
where appropriate with local management.
These include the following:
• Communication: Whilst the Group clearly
articulates its strategy to its investors,
itwasapparent that communication to the
workforce could be improved. In particular,
itwas evident that the way in which the
strategy was translated into local goals
andactions atindividual sites required further
focus, together with communication of
anymajor changes proposed. The Board
haveconsidered this and are developing
acommunication plan and delivery with
agreater use of ‘townhall’ meetings hosted
bylocal management.
• Local Communities: Where the Group
isundertaking significant development
ofitsactivities in an area, colleagues were
sometimes of the view that greater
engagement could be undertaken with
surrounding communities. The Board
recognised the need to communicate with
ourlocal communities but also has to balance
this with commercial sensitivities and ensuring
that its plans are sufficiently advanced to make
any consultation worthwhile and constructive.
The Board has reviewed its engagement
withlocal communities and has taken steps
toenhance this through online presentations
relating to major developments being
undertaken and greater participation by
management in local community meetings.
• Workforce Nationalities: The Group has
awide range of different nationalities
employed at each of its facilities with
colleagues from around the world, and with
significant numbers who originate from
Eastern European and South-East Asian
countries. Whilst the make-up of nationalities
varies considerably across the Group’s
facilities, at a number aneed has been
identified for greater communication
bymanagement across all ofthe nationalities
employed, rather than focusing on the
predominant groups. Management are
working with HR to develop more inclusive
communication plans involving greater
useoftranslated materials and arealso looking
at more actively promoting communication
between our various national groups
of workers.
• Diversity: The Group’s Diversity, Equality
andInclusion Committee met with Yetunde.
It was recognised that significant progress
had been made over a relatively short period
of time andthat the Group had been well
supported through sponsorship by senior
management. A number of suggestions
weremade to further promote the Group’s
diversity agenda which included obtaining
more accurate diversity data across the
Group and greater training for staff, more
direct interaction with the Board and
leveraging the Group’s relationship with
charitable organisations to also cover
diversity. We are in progress of introducing
the Group’s new HR system, enhancing
thequality of diversity data available.
Furthermore, a diversity training module
hasbeen introduced into staff training.
The Committee will also now be interfacing
directly with the Board ESG Committee to
support the Group’s ESG agenda and we are
looking at ways to further broaden our
interaction with charities we support to also
include activities focused ondiversity.
Further details of the Group’s activities and
approach in relation to diversity are set out
on pages 54 to 64 of the Strategic Report
and in the Nomination Committee Report on
pages 101 to 104.
• Hybrid Working: Colleagues were keen that
aconsistent policy relating to hybrid working
ispromoted and communicated across
theGroup as a positive step in embracing
thediverse needs of all of our workforce.
Whilst the nature of much of the work
undertaken in manufacturing means that there
is limited scope for hybrid working for many
roles, further consideration is being given
todevelopment of a Group-wide policy
where appropriate.
Investors
Shareholder engagement on a regular basis
isimportant to the Board. Throughout the year
the Board engages with both its institutional
investors and individual Shareholders
througharange of meetings and scheduled
presentations. The Group also regularly updates
investors through announcements and a wide
range of information relating to the Group is
available on our website www.cranswick.plc.uk.
Further details of how we have engaged with
ourstakeholders and key themes that have been
raised and how these have influenced the Board
in its decision-making are set out on pages 81
to82.
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Cranswick plc Annual Report & Accounts 2024
83
BOARD ACTIVITIES
The Board met regularly
throughout the year to discharge
its duties. There were ten
scheduled meetings which were
held at the Group’s head office
and at anumber of operational
sites (whichwere combined
withsitetours and meetings
withoperational management).
Detailsof attendance at meetings
can be found on page 80.
During the year additional ad-hoc Board calls
and a number of Committee meetings were
held to manage matters that arose outside the
scheduled meetings. Directors also attended
anumber of meetings of the Group’s Risk
Committee and Second Nature Committee.
The Chairman sets the agenda for meetings
with assistance from the Company Secretary.
A collaborative approach is taken by the Board
in relation to determining any non-standard
agenda items appropriate for consideration
bythe Board. The Chairman is responsible
forensuring the efficient running of the Board
andthat appropriate priority and sufficient time
is given in relation to matters being considered
to enable effective decision-making.
The Company Secretary supports the
Chairman in annual agenda planning to ensure
that matters are scheduled for consideration
atappropriate meetings throughout the year
reflecting the Group’s annual business cycle.
Meetings are also attended on an ad-hoc basis
by the Group’s advisers and members of senior
management to assist the Board in relation
tothe consideration of relevant matters and
toprovide the opportunity to engage with
theGroup’s broader management team.
Details of the Board’s activities are set out
inthetable on page 86, linking these to the
Group’s Principal Risks.
The Board considers our purpose, culture
andstrategy to ensure all decisions have a clear
and consistent rationale. This involves balancing
the interests of all ofourstakeholders, including
any competing stakeholder interests. Details of
our key stakeholders, how we engage with
them, how we foster relationships and factors
considered when the Board discharges its
duties as set out in Section 172(1) of the
Companies Act 2006 can be found on pages
47 to 50 of the Strategic Report. In addition to
these factors, the Board also considers
theinterests and views of other stakeholders,
including our pensioners, regulators and
government bodies.
Further details of some of the more significant
matters considered by the Board during the
year are as follows:
Growth Agenda
During 2023/24, the Board considered a range
of investments to advance the Group’s growth
strategy, which it reviewed in detail at our
BoardStrategy Day last year. These included
the approval for the fit-out of the Group’s new
facility at Worsley, investment in ‘slow cook’
capacity in Hull, theacquisition of Froch Foods
and investment in the Group’s Pet Products
division, further details of which are set out
inthe Strategic Review.
Each investment involves the consideration
ofarange of stakeholder interests which can
vary depending on the individual project.
Whilst Cranswick operates in a balanced and
responsible way taking account of our wide
range of stakeholders, our shareholders remain
the Group’s key stakeholders and it is important
that our investments can be financially justified
and generate attractive returns on capital for
shareholders. A key part of the Board’s
assessment is therefore the efficient allocation
of the Group’s capital and the return on
investment that will be achieved and ability to
generate returns over the longer-term.
Whilst the Group has invested significant
amounts of capital over the year both in its
existing facilities and through undertaking
several acquisitions of new businesses, a
number of projects were not progressed where,
in the Board’s view, appropriate returns were
not achievable.
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The Board also took into account the impact
ofits investments on local communities.
Whilst creating employment opportunities,
significant investment can cause disruption in
the areas affected during construction phases,
and can result in long-term increases in local
traffic. Where possible the Group seeks to
minimise impact and mitigate disruption
through design, working with consultants and
local planning authorities and by incorporating
leading technology to make the Group’s
facilities ‘best in class’. The Board also oversees
engagement with local communities at an
appropriate stage to explain its proposals
andtake account oflocal sensitivities,
withconsultation being undertaken through
meetings and online presentations.
Consideration has also been given by the Board
to the impact of investments upon theGroup’s
workforce. In general terms investments have
been viewed as positive, withemployees
regarding this a vote of confidence in their
facilities further securing their futures and
often creating career opportunities.
Where concerns are expressed relating
totheintroduction of new technology and
theimpact on job security, the Board ensures
that appropriate consultation is entered into
explaining the impact of proposed investments,
which have generally improved efficiency
without an adverse impact on employment
opportunities for the Group’s workforce, given
current labour pressures.
Sustainability and impact on the environment
has also been a significant consideration
inrelation to the Group’s investments, where
theBoard has had to balance the increased
costs resulting from this with its Second Nature
sustainability commitments and targets.
In certain cases the Board has accepted that
the Group’s Second Nature mission to make
meat sustainable and make Cranswick the
foodindustry’s most sustainable business
hasrequired that lower levels of return are
necessary to support these long-term goals.
Further details of sustainability considerations
are set out on pages 30 to 38 of the
Strategic Report.
Supply Chain Security
The Board has been focused on food supply
chain security given the numerous challenges
the UK farming sector has experienced over
recent years, including the Ukrainian conflict,
labour shortages and feed price inflation.
As aresult, the UK pig herd has contracted
leading to pig supply tightening and prices
increasing. The UK poultry sector is also likely
to experience pressure as stocking densities
are reduced to address animal welfare concerns
resulting in reduced rearing capacity in the
absence of investment in significant
new facilities.
The Group has addressed these concerns
through the acquisition of Elsham Linc indoor
pig farming business to significantly increase
the size of its indoor pig herd and to add
additional milling capacity. The Group is also
developing its existing businesses through
further investment in its herds and farming
infrastructure, including the establishment
ofnew pig and poultry facilities. We are also
developing longer-term relationships with
ourkey third-party suppliers through closer
collaboration and partnership arrangements
tosupport such suppliers and provide them
with greater security.
Increasing the level of integration and
investment in our supply chain reflects the
importance to our retail customers (and more
generally to consumers) of security of supply
which the Board has taken into account when
considering its supply chain investments.
Whilst price remains important to retailers,
theability to deliver products reliably and
consistently is becoming more relevant and
represents a competitive advantage that the
Group has over many of its UK competitors
without integrated supply chains.
The expansion of the Group’s control
overitssupply chain enables the Group
tocapture additional margin in relation to
itsproductsand to invest further capital
atreturnsconsistent with the Group’s strategic
plan, which is in the interest of its shareholders.
Greater visibility inrelation to its supply
chainsalso means that pricing is more
predictable andtransparent for the Group’s
long-term retailcustomers under its model-
based supply arrangements.
The Board recognises that significant
environmental concerns arise relating to
bothpig and poultry farming that have been
highlighted by concerns over farming practices
by some of our competitors and their impact
inareas such as the Wye Valley, where
significant pollution has been attributed
topoultry farming. The Board is mindful that
itsenvironmental performance also impacts
theGroup’s perception by investors and our
colleagues who want to work for a company
that is focused on mitigating the impact of its
operations. The Group addresses this through
its Second Nature Strategy and investment
inregenerative agricultural systems which
arehighlighted on pages 30 to 38 of the
Strategic Report.
The Board is conscious that the expansion
ofthe Group’s activities can have a significant
impact on local communities particularly
inruralareas. Such concerns are taken into
account inrelation to the design and
implementation ofour investment projects
which seek to limit the impact on the areas
weoperate in. Whilst the investment and job
opportunities created are often welcomed,
reactions in some areas are more mixed and,
notwithstanding it’sefforts to do so, the
Groupsometimes faceschallenges in fully
accommodating the concerns of all of those
inits local communities who object to its
investment projects.
Labour
The Board has continued to focus throughout
the year on the shortage of labour in the food
and agriculture sector and received regular
reports from the Group HR Director on
challenges faced. In order to ensure that the
Group has the skilled workforce to support
itsoperations we have continued to promote
acareer with the Group in our local communities
through schools and our expanded graduate
and apprenticeship programmes, with which
Board members have been engaged.
The Board has also sponsored the recruitment
of over 650 colleagues from the Philippines
into farming, engineering and technical roles
which were becoming increasingly challenging
to recruit into locally, further details of which
are set out in page 15 of the Strategic Report.
The Group has also positioned itself generally
as a sector-leading employer on pay, working
conditions, professional development, Health
and Safety, inclusivity and wellbeing to attract
and retain our workforce. The Group also
continues to invest heavily in its facilities to
promote efficiency and reduce reliance on
labour, which continues to be a diminishing and
increasingly costly resource. Labour availability
and our workforce plans to address this are
nowone of the Board’s primary considerations
when developing new facilities or investing
toexpand existing sites.
Concerns relating to labour availability have
been heightened by recent changes to the
Government’s sponsorship schemes which the
Board has been monitoring closely as they are
likely to significantly reduce thelabour pool
available to the food and agriculture sector
from overseas and will potentially impact both
food prices and security. The Board continues
to pro-actively engage with the Government
toreview the current approach being taken to
address the Board’s concerns and to develop
viable alternatives.
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Cranswick plc Annual Report & Accounts 2024
85
Link to Principal Risks
See pages 69 to 72 for more information.
Strategy
Reviewing Group strategy at Board meetings throughout the year. • Competitor Activity
• Climate Change
• Growth & Change
• Reliance on Key Customers & Exports
• Consumer Demand
Receiving presentations from operational management on future strategic opportunities.
Considering potential acquisition opportunities and other strategic initiatives.
Reviewing the Group’s investment programme to enhance its facilities and strengthen
itssupplychains.
Performance monitoring
Considering monthly reports from the Group’s Executive Directors. • Disease & Infection within Livestock
• InterestRate,Currency,
Liquidity & Credit Risk
• Pig Meat Availability & Price
Receiving reports from Board Committee Chairs.
Approving the Group’s budget.
Reviewing and approving the Group’s Annual Report and Accounts, financial and interim results
andtrading updates.
Approving capital expenditure proposals and leases in excess of £2 million and certain key contracts.
Approving the Company’s dividend strategy and recommending the 2022/23 final dividend
and2023/24 interim dividend.
Governance and risk
Reviewing three-year forecasts and other factors in support of the Viability Statement
(viabilityisconsidered in detail on page 73).
• Adverse Media Attention
• Disruption to Group Operations
• Food Scares & Product Contamination
• Health & Safety
• IT Systems & Cyber Security
Considering the Group’s Risk Appetite Statement and principal non-financial risks to which
theGroupisexposed (supported by the Audit Committee).
Reviewing the Board Committees’ effectiveness and Directors’ conflict of interest.
Reviewing quarterly Health & Safety, Risk, ESG and Technical updates.
Overseeing of the Group’s whistleblowing arrangements and reports.
Sustainability
Considering the Group’s sustainability strategy, Second Nature. • Climate Change
• Growth & Change
Reviewing the Group’s Science-Based Targets and Net Zero 2040 commitment.
Reviewing the Group’s TCFD and SASB disclosures.
Reviewing and approving ESG investments.
People and succession
Approving the appointment of two new Non-Executive Directors. • Labour Availability & Cost
• Recruitment and retention
of key personnel
Approving the appointment of Senior Executives.
Reviewing the Group labour strategy.
Reviewing proposals on senior executive succession planning.
Reviewing the structure, size, composition and diversity of the Board and its Committees
(supportedby the Nomination Committee).
Reviewing behaviours to ensure these are consistent with the Group’s culture.
BOARD ACTIVITIES
CONTINUED
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Promoting our culture
One of the key responsibilities of the Board
istopromote of the Group’s culture across its
businesses to achieve our purpose of feeding
the nation with authentically made, sustainably
produced food. Our culture is based on our four
guiding principles of dedication to delivering
the highest quality products, an unwavering
commitment to driving value, adapting to the
needs of consumers through innovation and
being proud of our passionate and committed
colleagues. These four guiding principles are
bound together by our Second Nature
sustainability strategy.
Each of our guiding principles and Second
Nature Strategy is referenced to a range of
measures that are monitored and regularly
reviewed by the Board to ensure that the
Group’s activities are aligned with our purpose,
culture and strategy and is reinforced through
the key decisions that the Board takes. A key
feature of our culture is that each of the Group’s
facilities operate with a significant degree
ofautonomy and reflect the communities they
operate in and their history within the Group.
Local responsibility and drive promote our
success, but are nevertheless underpinned
byour common guiding principles.
We monitor a range of measures that underpin
our culture. Our colleagues’ support is critical
to the delivery of the Group’s purpose and
ensuring a safe and supportive environment,
where colleagues are given the opportunity
todevelop and fully participate in our business,
is a key area of Board review. We actively
monitor our Health and Safety performance
and promote a Health and Safety culture at
work toensure colleague safety, taking prompt
action to address any concerns. Details of
Health and Safety performance are set out
onpage 54 of the Strategic Report.
Likewise, we focus on producing the highest
quality food without compromising the heritage
and integrity of our products by monitoring
andinvestigating any complaints received
thoroughly. The food safety standards at each
of our sites are reviewed regularly by our own
technical teams and externally by the British
Retail Consortium, with action being taken
toaddress any issues if we fail to achieve an
AGrade at any of our sites. Further details
ofcomplaints per million units sold and BRC
Grades awarded are set out on page 25
oftheStrategic Report.
Underpinning our culture
We have developed various means
ofengagement to underpin our culture
andtoensure that our colleagues understand
andcontribute to this at a practical level.
All employees participate in online training
toensure that they understand the expectations
and standards that define the Group across
awide range of areas, including food safety,
diversity and inclusion, anti-bribery and
corruption and Health and Safety, which
arerefreshed and supplemented at
regular intervals.
Our Board is kept informed through
engagement across the workforce through
regular site visits, engagement with works
councils and from feedback on presentations
toour colleagues on the Group’s performance
and strategy.
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
87
How the Board monitored culture in 2023/24
Action taken Link to culture
Directors undertook site visits as
aBoard and individually.
Visits enable the Board to gain a direct understanding of the working environment
ofcolleagues and the challenges that they face, together with the practical impact
oftheGroup’s policies and initiatives and understanding of the Group’s purpose.
Where individual visits are undertaken by Directors, feedback is provided to the Board
toassist the understanding of the Group’s culture and ways in which this is understood
and driven at a local level.
Reviewed reports from the Designated
Non-ExecutiveDirector responsible for
WorkforceEngagement (ENED).
During the year the Board considered a number of reports and related recommendations
from the ENED (Yetunde Hofmann) following visits to various Group facilities, further
details of which are set out on pages 82 and 83 of the GovernanceReport.
Sponsored Group-wide colleague surveys
andconsideredresponses provided.
These facilitate the Board obtaining feedback from colleagues on how we operate
ourbusiness and its leadership and enable us to critically review our culture. The Board
review and monitor response rates which helps its understanding of engagement by
ourcolleagues and their understanding of our culture and guiding principles.
Reviewed Health and Safety performance
trendsandstatistics.
Active monitoring of performance at our sites enables the Board to monitor the
effectiveness of safety practices and behaviours and to identify issues that require
addressing to promote a Health and Safety culture to ensure colleague safety.
Reviewed data on food safety and reports on
related technical matters.
Provides the Board with insight into how the delivery of high quality food is undertaken
at a site level and, where issues were identified, improvement plans required and the
implementation of learnings across the Group.
Attended Second Nature Group meetings, visited
variousSecond Nature projects and reviewed regular
progress reports on initiatives being undertaken.
Allowed the Board to develop further insight into the Group’s sustainability strategy
andvision to become the food industry’s most sustainable business and ways this is
embraced throughout the Group by colleagues and individual sites.
Participated in product development reviews,
tastingsandmonitored the development
of new product categoriesand their commercial
introduction into themarket.
Enabled the Board to understand new recipes and culinary ideas developed toensure
our products remain relevant and are adapted to the needs of the modern consumer and,
more broadly, the extent to which our workforce take an interest and
pride in the products they help to produce.
Reviewed details of internal audits where performance
wasconsidered to fall short of Group standards
(throughAudit Committee reviews reported to
the Board).
Reports highlighted to the Board matters where behaviours and practices were not
consistent with the promotion of the Group’s culture and provided details of learnings
applicable to the Group more generally and actions being taken to rectify matters.
Reviewed a broad range of matters related to business
integrity across the Group, including the operation
ofanindependent whistleblowing line and the
implementation of policies relating to modern slavery,
equal opportunities and diversity and anti-bribery
andcorruption.
This provided the Board with an understanding and the opportunity to review practices
and behaviours across the Group and extent to which these promote the Group’s
purpose and culture.
Reviewed and approved major capital expenditure
proposals across the Group.
Facilitated the Board’s understanding of how the Group is supporting its purpose
andculture through investment by reference to a number of linked criteria including
itsimpact on our efficiency, environmental performance and ability to offer value
tocustomers.
BOARD ACTIVITIES
CONTINUED
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
88
BOARD ACTIVITIES GOVERNANCE FRAMEWORK
The Board is responsible for the long-term
success and stewardship of the Company,
overseeing its conduct and affairs to create
sustainable value for the benefit of its
Shareholders and other stakeholders, including
customers, suppliers, employees and the
communities in which the business operates.
The Board is ultimately responsible for the
business strategy and the financial robustness
of the Group, for monitoring performance and
for establishing a governance structure and
practice that facilitates effective decision-
making and good governance.
The Board consists of Executive Directors
alongside a strong team of experienced
Non-Executive Directors. All Non-Executive
Directors are deemed to be independent.
The Executive Directors have responsibility for
particular functions which are set out on page
92, and further delegate management to the
wider senior management team throughout the
Group based on their experience and seniority.
To enable the members of the Board to discharge
these responsibilities, they have full and timely
access to all relevant information.
Board meetings are periodically held at the
Group’s sites and Non-Executive Directors
regularly visit the Group’s sites on an individual
basis allowing the Directors to review the
operations and meet the management teams
ofthose particular sites.
BOARD OF DIRECTORS
BOARD COMMITTEES
EXECUTIVE COMMITTEES
OPERATING BOARDS
EXECUTIVE MANAGEMENT
• Establishes the Company’s strategy, purpose and values.
• Promotes the long-term success of the Company.
• Engages with stakeholders to ensure their interests are
appropriately balanced.
• Reviews the principal risks faced by the Company and
establishesitsrisk appetite.
• Maintains a framework of effective and prudent controls.
• Reviews and promotes the Group’s culture.
• Approves the Company’s budgets, financial reports
and dividends.
• Oversees matters delegated to Board Committees.
The Board delegates certain roles and responsibilities to its various
committees and to Senior Executives. The Committees ensure that
thereis independent oversight of internal controls and risk management
andassist the Board by fulfilling their obligations and reporting back
tothe Board on the outcomes from their respective activities.
The terms of reference for each Board Committee are available
on the Company’s website at www.cranswick.plc.uk.
The key responsibilities of the Environment, Social&Corporate
Governance (ESG) Committee, AuditCommittee,Nomination
Committee and Remuneration Committees are set out onpages94,
96,101 and 105respectively.
NOMINATION
COMMITTEE
REMUNERATION
COMMITTEE
ESG
COMMITTEE
AUDIT & RISK
COMMITTEE
Executive Committees are constituted on an ad-hoc basis to address
particular strategic, operational and commercial matters affecting
the business.
These consist of Executive Directors and relevant Senior Executives
from the business. The feedback from any such committees is shared
withthe Board.
Operating boards (or sub-boards) consisting of Senior Executives from
each of the relevant businesses meet regularly to discuss operational and
commercial matters affecting such businesses. Operating boards are also
attended by the Executive Directors and relevant members of the Group’s
Food Central Division, which provides technical and administrative
support across the Group. The feedback from the operating boards
isshared with the Board.
FRESH PORK
CONVENIENCE
GOURMET
PRODUCTS
POULTRY
PET
PRODUCTS
3– 6 years
6 – 9 years
Over 9 years
4
3
2
Executive Management by tenure
41– 50 years
51– 60 years
3
6
Executive Management by age
Male
Female
7
2
Executive Management by gender
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
89
Succession planning
During the year, the Nomination Committee
reviewed the Board and Senior Management
Succession Plans, which incorporated
contingency planning relating to sudden
andunforeseen departures, together with
longer-term planning. Whilst appointments
continueto be made on the basis of merit,
without the adoption of specific diversity
targets, the Board recognises the importance
of ensuring that itisnot composed exclusively
of like-minded individuals with similar
backgrounds and hasa policy of increasing
diversity at all levels.
During the year, Mark Reckitt retired as a
Non-Executive Director after nine years of
service, Pam Powell retired as a Non-Executive
Director after nearly six years of service and
Alan Williams and Rachel Howarth
wereappointed as Non-Executive Directors.
Further details relating to appointments to
theBoard during this year are set out in the
Nomination Committee Report on pages
101to104.
Director reappointment
All Non-Executive Directors undertake
afixedterm of three years subject to annual
re-election by Shareholders at the AGM.
The fixed term can be extended and consistent
with Corporate Governance best practice,
would not exceed nine years except in the
caseof exceptional circumstances. The current
length of tenure for the Chairman and each
of the Non-Executive Directors as at 30 March
2024 is set out below.
Professional development and support
All Directors are provided with the opportunity
for ongoing training to keep up to date with
relevant legislative changes, including covering
their duties and responsibilities as Directors
and the general business environment.
Directors can obtain independent advice at
theexpense of the Company.
Training is provided at training sessions
delivered at Board meetings which all
Directorsattend and also by way of focused
meetings andsite visits undertaken
byindividual Non-Executive Directors.
Training isdelivered by senior executives
and,where appropriate, by external advisors
and other professional bodies.
In the past year, the Board received updates
andtraining on a number of topics including
various technical presentations relating
tofoodmanufacturing, H&S and UK equity
marketregulation and valuations along with
other market perspectives from management.
The Company Secretary and Group Finance
also provide briefings during the year on
material developments in legal, governance
andcompliance matters.
During the year, Non-Executive Directors also
attended a number of Group Risk Committee
and Second Nature Committee meetings
tofurther enhance their understanding
oftheGroup’s operations.
Tenure as at 30 March 2024 for Non-Executive Directors
Director 1 Year 2 Years 3 Years 4 Years 5 Years 6 Years 7 Years 8 Years 9 Years
Tim Smith
Liz Barber
Alan Williams
Yetunde Hofmann
Rachel Howarth was appointed as a Non-Executive Director on 30 April 2024.
BOARD ACTIVITIES GOVERNANCE FRAMEWORK
CONTINUED
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
90
BOARD EFFECTIVENESS
A performance evaluation
processwas undertaken based
onan online questionnaire.
Thiswas facilitated by the
Company Secretary who
isconsidered asuitable and
independent person to conduct
this process.
Evaluation Process
The Board evaluation was conducted via an
online questionnaire and focused on a range
ofgovernance matters, including:
• Implementation of the 2022/23 external
Board effectiveness review
• Board composition
• Leadership and succession planning
• Board dynamics and decision-making
• Strategy, purpose, values and culture
• Operation of Board Committees
• Board logistics and secretariat support
• The Board’s advisers
In addition, the views were sought from senior
executives who interact regularly with the
Board and the Board’s remuneration advisers
and auditors in relation to the operation of the
Remuneration Committee and
Audit Committee.
The Company Secretary then prepared
aBoardReport summarising the key findings
and themes arising from the responses to the
questionnaire. The report was then presented
to the Board and discussed at its April meeting.
Findings
The report found that the Board continues
tooperate effectively in a collegiate manner
withastrong sense of common purpose and
included a good balance of challenge and
support to management. The report concluded
that the Directors had the necessary skills
required for the effective governance of the
Company, but recognised that greater digital
and cyber experience at a Board level would
bean advantage.
The report considered progress in relation
tothe recommendations made the previous
year when, in accordance with corporate
governance best practice, an independent
external assessment of board effectiveness had
been undertaken by Clare Chalmers which
hadidentified scope for further improvement
inanumber of areas which the Board considered,
including the following:
• The need for a more formal, structured
approach to long-term executive
succession planning: A formal succession
plan has been developed by the CEO and
Group HR Director which has been reviewed
by the Nomination Committee and covers
key management roles, however, the Board
effectiveness evaluation identified the
requirement for further progress in relation
to development and training of the
succession pipeline within the Group, which
will be addressed over the coming year.
• A more central role for the Board in
articulating and overseeing strategic aims
of the business: Board meetings over the
year have been more focused on strategic
matters with a review of forward agendas
forthe next financial year having been
undertaken to maintain attention to strategic
priorities. The Board review acknowledged
that progress had been made and that the
momentum to reorientate the Board’s focus
should be continued.
• A deeper understanding of certain risks
faced by the Group and to test the Board’s
appetite for risk: A number of deep dive
reviews have been undertaken by the Audit
Committee and the Board has undertaken
areview of the Group’s appetite for risk,
which is reflected in the principal risks and
uncertainties summarised in the Strategic
Report on pages 68 to 72. Further deep dive
reviews of key risks by the Audit Committee
will be undertaken during the year.
• Further development of the ESG
Committee in relation to the social aspects
of its remit: Whilst the review identified that
further progress is required, it was noted that
the Group had now established a Social
Impact Committee and that considerable
progress had been made. Further details are
set out in the ESG Committee Report of
pages 94 to 95.
• Consideration of the frequency and
duration of Board and Committee
meetings with less emphasis on
operational matters: The Board schedule
for the coming year has been reduced
toeight scheduled meetings, with a range
ofmore strategic topics, and less emphasis
on operational matters included in the
Board’s forward agenda.
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
91
BOARD LEADERSHIP AND PURPOSE
The division of roles and responsibilities between our Chairman, Executive Directors and Non-Executive Directors is explained below, together with
thesupport they receive from the Company Secretary to enable them to meet their responsibilities under the UK Corporate Governance Code.
Non-Executive Chairman
Tim Smith
• Primarily responsible for the leadership of the Board, ensuring
thatitis effective and promoting critical discussion.
• Chairs the Nomination Committee and ESG Committee
andthe AGM.
• Sets the Board meeting agendas in consultation with the
ChiefExecutive and Company Secretary, ensuring they are
alignedtothebusiness strategy.
• Leads the performance evaluation of the Board and ensures
itseffectiveness in all aspects of its role.
• Sponsors and promotes the highest corporate governance
andethical standards.
• Facilitatescontribution from all Directors to the discussions
ofthe Board.
• Provides a sounding board for the Chief Executive on key business
decisions and challenges proposals where appropriate.
• Ensures effective communication with our Shareholders and
other stakeholders.
Chief Executive Officer
Adam Couch
• Develops and implements the Group’s strategy with input from
therest of the Board and its advisers.
• Responsible for the overall operational activity of the Group.
• Manages the day-to-day business of the Group, leads its
directionand promotes its culture and values.
• Brings matters of particular significance or risk to the Chairman
fordiscussion and consideration by the Board where appropriate.
• Responsible for overseeing the delivery of the sustainability agenda
within the Group.
Executive Directors
Mark Bottomley, Jim Brisby and Chris Aldersley
• Provide specialist knowledge and experience to the Board.
• Support the Chief Executive Officer in the implementation
oftheGroup’s strategic policies.
• Responsible for the budgeting process and reporting of the
financial performance of the Group.
• Responsible for the commercial affairs of the Group.
• Responsible for the operational performance of the Group.
• Responsible for the leadership and management of commercial,
risk,treasury, tax and finance functions across the Group.
Senior Independent Director (SID)
Liz Barber
• Provides a sounding board for the Chairman and supports
himinhisleadership of the Board.
• Is available if Shareholders want to raise concerns that normal
channels have failed to resolve.
• Chairs the Remuneration Committee.
• Heads up the Non-Executive Directors on the Board.
• Reviews the Chairman’s annual performance appraisal along
withtheother Non-Executive Directors.
Non-Executive Directors
Yetunde Hofmann, Alan Williams and Rachel Howarth
• Bring complementary skills and experience to the Board.
• Constructively challenge the Executive Directors on
mattersaffecting the Group.
• Chairs the Audit Committee (Alan Williams).
• Satisfy themselves as to the accuracy of the financial performance
ofthe Group and the robustness and effectiveness of financial
controls and risk management processes.
• Help develop strategy with an independent outlook.
• Together with the SID, review management’s performance.
• Engage directly with employees.
Company Secretary
Steven Glover
• Responsible to the Board.
• Acts as secretary to the Board and each of its Committees
ensuringcompliance with procedures.
• Responsible, under the direction of the Chairman, for ensuring
the Board receives timely and accurate information.
• Provides support to the Non-Executive Directors.
• Responsible for advising the Board on all governance matters.
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
92
COMPLIANCE STATEMENT
This report, together with the
ESGReport on pages 94 to95,
the Audit Committee Report on
pages 96 to 100, theNomination
Committee Report onpages 101
to 104, andthe Remuneration
Committee Report on pages 105
to 131, describes how the Board
applies the principles of good
governance and best practice as
set out in the 2018 UK Corporate
Governance Code (the ‘Code’)
which can be found on the
Financial Reporting Council’s
website: www.frc.org.uk.
The Board is pleased to report that it has
complied with the requirements of the Code
during the 53 weeks ended 30 March 2024,
with the following exceptions:
At least half the Board, excluding
theChair, should be non-executive
directors whom the Board considers
independent (Code Provision 11).
Following the retirement of Pam Powell
asaNon-Executive Director on 1 September
2023, the Board had three independent
Non-Executive Directors (excluding the
Chairman) and four Executive Directors.
The Board undertook the recruitment
ofanadditional independent Non-Executive
Director using independent search consultants
and appointed Rachel Howarth as a Non-
Executive Director on30 April 2024 to address
this, following which the Company has been
compliant with Code Provision 11.
Further details relating to the recruitment of
Rachel Howarth are set out in the Nomination
Committee Report on page 101.
The Remuneration Committee should
have a minimum membership of three
independent Non-Executive Directors
(Code Provision 32).
Following the retirement of Pam Powell
on1 September 2023, the Remuneration
Committee had only two independent
Non-Executive Directors (excluding the
Chairman). This was addressed by the
recruitment and appointed to the Committee
of Rachel Howarth, described in more detail
above, following which the Company has been
fully compliant with Code Provision 32.
Workforce engagement relating to
alignment of executive remuneration
with wider Company pay policy
(CodeProvision 40 and 41).
The Remuneration Committee does not
directly consult with employees regarding
theremuneration of the Executive Directors.
However, when considering remuneration
levels to apply, the Committee takes into
account base pay increases, bonus payments
and share awards made to the Company’s
employees generally. Details of how Executive
Director pay is considered in the context of
thebroader workforce is set out on page 109
ofthe Remuneration Committee Report.
The Board has reviewed the financial
statements and, taken as a whole, considers
them to be fair, balanced and understandable,
providing sufficient and appropriate
information for Shareholders to assess
theCompany’s position and performance,
businessmodel and strategy. The Audit
Committee provided guidance to the Board
toassist it inreaching this conclusion.
By order of the Board
Steven Glover
Company Secretary
21 May 2024
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
93
ESG COMMITTEE
The Environment, Social and
CorporateGovernance (ESG)
Committee reviews and
recommendstothe Board the
Group’sESG strategytaking into
account its stated purpose,
strategy,culture, vision and values.
As Chair ofthe ESG Committee,
Iam pleased to introduce the ESG
Committee Report for the
53weeksended 30 March 2024.
Tim J Smith CBE
Chairman
Composition of the ESG Committee
Committee Members Meetings attended
Tim Smith – Chair 3/3
Mark Reckitt
1
1/3
Pam Powell
2
1/3
Liz Barber 3/3
Yetunde Hofmann
3
2/3
Alan Williams
4
2/3
Adam Couch 3/3
Mark Bottomley 3/3
Jim Brisby 3/3
Chris Aldersley
5
2/3
1. Mark Reckitt retired as a Director at the Company’s AGM
on 24 July 2023 and attended all relevant meetings prior
to retirement.
2. Pam Powell retired as a Director on 1 September 2023
andattended all relevant meetings prior to retirement.
3. Yetunde Hofmann was unable to attend the April ESG
Committee meeting due to a long-standing conflicting
commitment prior to the appointment as a Director,
whichwasapproved by the Board.
4. Alan Williams was appointed as a Director from the
Company’s AGM on 24 July 2023 and attended all relevant
meetings following appointment
5. Chris Aldersley was unable to attend the April ESG
Committee meeting due to a long-standing conflicting
commitment prior to the appointment as a Director,
whichwasapproved by the Board.
Other regular attendees
• The Group HR Director and the Head
ofSustainability Strategy & ESG and
othersenior executives attend by invitation
as required.
• The Company Secretary also attends
meetings as secretary to the Committee.
Stakeholders
• Engaged with investor bodies and significant
Shareholders relating to theGroup’s ESG
performance and related disclosures.
• Reviewed engagement and outcomes
inrelationtoa range of investor indices
and ratings.
Social
• Reviewed the updated strategic position
onSocial Sustainability issues.
• Reviewed revised guiding principles which
define the approach to Social
Sustainability issues.
• Reviewed the established four working pillars
to support Social Sustainability activities.
Other activities
• Reviewed the Group’s policies on
Environment and Energy, Waste
and Deforestation.
• Reviewed short, medium, and long-term
plans on the sustainability agenda.
• Reviewed the ESG Committee Report.
• Approved the Committee’s terms
of reference.
• Reviewed and approved the strategic
decision to cease purchasing carbon credits
and place the investment into an Internal
Carbon Innovation fund.
Frequency of meetings
The Committee meets as necessary and
atleastthree times a year.
Independence
A majority of the Members of the Committee
are independent.
Key Activities in 2023/24
Second Nature Strategy
• Reviewed the updated Second
Nature Strategy.
• Received reports from and reviewed the
activities of the Second Nature Committee.
• Received updates on key initiatives and
activities completed to enhance our position
on Social Sustainability issues.
TCFD/Climate-related targets
• Reviewed the TCFD disclosure.
• Reviewed climate-related targets, including
progress on carbon reduction plans, energy
intensity metrics, water intensity and food
waste reductionplans in
manufacturing operations.
• Reviewed SASB and other climate-related
disclosures included in the Strategic Report.
Climate risks
• Reviewed climate-related risks and related
plans to manage and mitigate such risks.
• Considered how the recent updates
totheTCFD are reflected on internal
risk management.
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
94
The Committee
The Committee coordinates the Group’s
activities relating to ESG matters and, in
particular, considers and recommends the
Group ESG strategy to ensure that short-term
and long-term objectives for the Group’s ESG
activities are in place and key metrics are
reported on to support this.
We have developed a number of focused
committees which support the ESG committee
and have a developed ESG governance
structure which is described in detail on page
94 of the Strategic Report. Members of the
Committee have a broad range of business
experience relevant to various aspects of our
ESG strategy. In particular, Liz Barber has
significant experience of sustainability and
environmental aspects relating to water usage
from her previous role as Chief Executive
ofKelda Group, which is particularly relevant
tothe Group. Yetunde Hofmann also has a
broad background in organisational capacity
and growth, with a focus on facilitating strategy
development, change, diversity and inclusion,
which are also relevant to the development
ofour social agenda.
In addition, whilst Group Quality Director at
Tesco plc, my role included responsibility for
overseeing Tesco’s responsible sourcing and
I therefore have significant experience of
overseeing supply chain compliance with ESG
and other ethical related requirements, which is
an important element of our wider ESG agenda.
Following Pam Powel’s retirement in
September, the Committee no longer had
majority of independent members, however,
this has been addressed by appointment
ofRachel Howarth in April 2024.
Our commitments
During the year the Committee continued
toreview the Group’s commitments and targets
including reduction plans on greenhouse gases,
water use, energy intensity, food waste and
packaging and our performance against these.
Whilst progress is being made in most areas,
this is not linear, and the review has underlined
the challenge in meeting these targets by their
stated dates. Details of progress to date is set
out in more detail in the Strategic Report on
pages 44 to 46.
The committee considered the areas of priority
for the Group’s environmental sustainability
strategy, and in particular, the commitments
toreduce greenhouse gas emissions across
allscopes. Part of this process is to understand
and discuss key interventions, the costs
associated with these activities and the
outcome against our SBTi targets in 2030.
Further details of our quest to Net Zero are set
out on pages 34 to 35 of the Strategic Report.
Also, as part of our wider sustainability
commitments, the Committee also considered
and reviewed the latest updates to the Group’s
Sustainability Strategy Platform called Second
Nature. The Second Nature platform was
established in 2018/19, which lays out our
strategic approach to dealing with the
challenges that surround sustainability.
However, as part of our annual review it was
agreed that certain elements of our strategy
needed updating and refreshing, given the
evolving nature of sustainability. As part of this
process the Committee reviewed qualitative
and quantitative research to understand
internal/external stakeholder views on our
current Second Nature Strategy and
considered proposed revisions to our guiding
principles and the working pillars of our
strategy. Our updated approach to setting our
Sustainability Strategy can be found on pages
30 to 38.
Social sustainability
In our 2022/23 ESG Report we highlighted
theimportance and recognition that our
sustainability strategy needs a more balanced
view on the interconnected nature of both
Environmental and Social Sustainability issues.
Whilst the Group already has well defined
policies in relation to matters such as diversity,
inclusion, and human rights, it was agreed
thatSocial Sustainability issues should be
incorporated more formally into ESG related
discussionsandour Group-wide
sustainability strategy.
As part of this process, the strategic approach
taken to sustainability through our Second
Nature platform, was updated in the 2022/23
period, with input and support from the ESG
committee members. To help us clearly
articulate what Social Sustainability means
tointernal and external stakeholders we
developed a set of guiding principles and
working pillars (see page 31). The guiding
principle of “Thriving Together with Purpose”
sets out our overall approach, whilst the
working pillar of “Living Well” brings Social
Sustainability to life.
The Group HR Director heads up our social
sustainability strategy and is supported by the
Group Marketing Director and the Head of
Sustainability Strategy and ESG. Over the last
12 months, Social Sustainability considerations
and issues have been discussed at our ESG
committee and Second Nature committee.
Key areas discussed in the last 12 months
included, food redistribution activity,
volunteering initiatives, DEI approach and
community engagement projects.
Risk
A key function of the Committee is to identify,
manage and mitigate climate-related risks an
analysis of which is set out on pages 40 to 43
ofthe Strategic Report and includes details of
actions being taken by the business to address
risks identified. The Committee’s work also
encompasses considering the allocation of the
Group’s resources and capital to ensure that
these have a material impact mitigating our
risks, whilst also delivering value to Shareholders.
In particular, the Group faces significant
challenges when addressing greenhouse gas
emissions, the majority of which encompasses
our Scope 3 emissions, which derive from the
Group’s supply chain and are therefore less
easy to influence directly. Work on establishing
our Science Based Targets relating to this and
the development of effective mitigation
strategies is ongoing.
Governance
The Committee’s terms of reference were
reviewed by the Committee during the year.
A copy of the Committee’s terms of reference
isavailable on the Company’s website at
www.cranswick.plc.uk.
On behalf of the Committee
Tim J Smith CBE
Chairman
21 May 2024
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
95
THE AUDIT COMMITTEE
Principal responsibilities
oftheAuditCommittee
The Committee’s principal responsibilities
include reviewing and monitoring:
• The integrity of the Group’s financial
statements and related narrative reporting;
• The Group’s accounting policies and the
impact of new and amended
accounting standards;
• The effectiveness of the Group’s financial
reporting, internal control and risk
management systems in support of
the Board;
• The effectiveness of the Internal Audit
function in the context of the Company’s
overall risk management framework;
• The effectiveness, scope, cost and
independence of the Group’s
external auditors;
• The Company’s whistleblowing and
anti-bribery policies; and
• The Group’s viability, and its disclosure within
the Annual Report.
The Committee makes recommendations
totheBoard on the removal, appointment or
reappointment of the Group’s external auditors.
The Audit Committee’s terms of reference,
whichare reviewed and approved by the Board
annually, are available on the Group’s website
atwww.cranswick.plc.uk within the Corporate
Governance section.
Composition of the Audit Committee
The Audit Committee comprises the following
Non-Executive Directors:
Committee Members Meetings attended
Alan Williams – Chair* 3/5
Yetunde Hofmann 5/5
Pam Powell** 2/5
Liz Barber*** 5/5
Mark Reckitt**** 2/5
* Alan Williams was appointed as a Director on 24 July 2023
and attended all meetings following appointment.
** Pam Powell retired as a Director on 1 September 2023
andattended all meetings prior to retirement.
*** Liz Barber ceased to be Chair of the Audit Committee
on24 July 2023 following her appointment as Senior
Independent Director but has continued to attend meetings
as a member of the Audit Committee.
**** Mark Reckitt retired as a Direc tor at the Company’s AGM on
24 July 2023 and attended all meetings prior to retirement.
All members of the Committee have extensive
managerial experience in large, complex
organisations and have a wide range of financial,
commercial and operational expertise. It is a
requirement of the UK Corporate Governance
Code that at least one Committee member
hasrecent and relevant financial experience.
Both Alan Williams and Liz Barber meet
this requirement.
Other regular attendees
The Chair, Chief Financial Officer, Head of Risk
and Internal Audit, Director of Group Reporting
and Control, External Audit Partner and
External Audit Director attend by invitation
asrequired. The Group Company Secretary
also attended meetings as secretary to
the Committee.
Frequency of meetings
The Committee is required to meet at least
three times a year and its agenda is linked to
theGroup financial calendar. Both the external
auditors and the Head of Risk and Internal Audit
have the opportunity to access the Committee,
without the Executive Directors being present,
at any time, and the Committee formally meets
with both the external auditors and the Head
ofRisk and Internal Audit independently, at least
once a year. In addition to formal meetings, the
Chair of the Audit Committee has one-on-one
updates with the Head of Risk and Internal audit
and Chief Financial Officer to discuss ongoing
matters and approve any non-audit fees
undertaken by the external auditors.
Independence
All members of the Committee
are independent.
The Audit Committee’s
primaryroleistoassist the Board
inproviding effective governance
overthe Group’sfinancial reporting,
riskmanagement andinternal
controlsystems. Thisincludes
oversightoftheGroup’s Internal
AuditFunction,theRisk Committee
andtheExternalAudit.
Alan Williams
Chair of the Audit Committee
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
96
Key activities in 2023/24
Integrity of Financial Statements
• Rev iewed a nd ch all eng ed t he key fi nan cia l
reporting judgements and estimates and
concluded that accounting treatments
were appropriate.
• Reviewed the Cranswick Pet Products
impairment assessment, and agreed that
theconclusions reached and impairment
recognised are appropriate.
• Reviewed and concluded that the Group
isagoing concern for a period of at least one
year from the date of signing these financial
statements; and that the relevant disclosures
are appropriate.
• Reviewed and concluded that the Financial
Statements and narrative reporting are fair,
balanced and understandable.
Accounting policies
• Reviewed the Group’s accounting policies
toensure they remain appropriate and have
been consistently applied.
• Reviewed the change in accounting policy for
share based payments and concluded that
disclosures in this year’s Financial Statements
are appropriate.
• Reviewed the impac t of new and for thcoming
accounting standards and concluded that
disclosures in this year’s Financial Statements
are appropriate.
• Reviewed the disclosure of Alternative
Performance Measures (APMs) and concluded
that they are appropriate formonitoring the
Group’s underlyingperformance.
Internal audit
• Reviewed and challenged the work of
theGroup’s Internal Audit function and
concluded that it is operating effectively
andis appropriately resourced.
• Reviewed and approved the Internal
Audit Charter.
• Reviewed and approved Head of Risk and
Internal Audit independence declaration.
• Reviewed and approved the Internal Audit
plan and budget for the coming year.
• Reviewed and appraised the
recommendations from the Internal Audit
External Quality Assessment (EQA).
External audit
• Approved the terms of engagement and
remuneration of the external auditors.
• Rev iewed a nd wa s sat isf ied w ith t he
effectiveness of the external audit process.
• Monitored the independence of external
auditors and concluded that
PricewaterhouseCoopers LLP (PwC)
is independent.
Whistleblowing and anti-bribery
• Reviewed and approved the Group’s
whistleblowing policy.
• Reviewed and approved the Group’s
anti-bribery policy.
• Reviewed, on behalf of the Board,
whistleblowing reports and their resolution.
Internal controls and risk management
• Reviewed the Group’s internal controls and
risk management systems, including those
for assessing emerging risks, and concluded
that they are operating effectively.
• Reviewed and challenged the work and
associated reporting of the Group
Risk Committee.
• Reviewed and updated the Board’s risk
appetite statement.
• Reviewed and approved the Group’s
proposed approach in response to the
newUK Corporate Governance Code,
particularly focusing on the actions required
to comply with the Provision 29.
• Reviewed and updated, where necessary,
theCommittee’s terms of reference.
• Reviewed the Group’s IT control
environment, and received regular updates
on cyber risks.
Group viability and related disclosures
• Reviewed and concluded that a three-year
time horizon for the Group’s Viability
Statement remained appropriate.
• Reviewed the Group’s budget, forecasts and
downside sensitivity analysis, including the
loss of consumer demand for premium and
added-value products and the risk of disease
within livestock, and concluded that the
Group is viable over the three-year
time horizon.
• Reviewed and approved theViability
Statement disclosureinthe
Financial Statements.
Statement by the Chair
oftheAuditCommittee
On behalf of the Audit Committee, I am pleased
to present the Audit Committee Report for the
53 weeks ended 30 March 2024 which provides
an overview of the key activities and theareas
of focus of the Committee during the year.
This is my first report as Audit Committee Chair
following my appointment in July 2023 when
Itook over the role as Chair from Liz Barber.
I would like to thank Liz for her leadership and
Ilook forward to progressing the work of
the Committee.
The Committee met formally five times this
year, with meetings in advance of half-year
andyear end financial reporting in November
and May respectively, and additional meetings
in June, September and March in preparation
for the half-year and year end processes.
Across these five meetings the Committee
focused on its primary responsibilities of
supporting the Board and protecting the
interests of Shareholders in relation to financial
reporting, audit and internal control.
The Committee also facilitated strategic
discussions on risk appetite, the adequacy
ofmitigation and controls to manage risk to
anacceptable level.
Throughout the year, the Committee monitored
developments in respect of the UK Corporate
Governance Code and maintained its emphasis
on enhancing the internal controls framework
for risk management. Following the release
ofthe 2024 Corporate Governance Code
inJanuary, the Committee welcomed the
focused approach taken by the FRC.
The Committee reviewed Internal Audit’s
termsof reference and future audit plans, and
reviewed the appropriateness of the external
audit including the experience, resource and
value provided by the Group’s auditor. In the
period, an Internal Audit External Quality
Assessment (EQA) was conducted by Ernst
&Young LLP to evaluate, in line with the
International Standards for the Professional
Practice of Internal Auditing (‘IIA Standards’)
and the Code of Practice for Internal Audit
(‘Code of Practice’), the quality and efficacy
ofthe Internal Audit function. The review
identified good practices and adherence
withthe key standards, and identified a small
number of recommendations to further
enhance the effectiveness of the Internal
Auditfunction. Overall, the conclusion was
reached that the Internal Audit function is well
respected, operating effectively, and provides
the appropriate level of assurance to the Group.
During the year, the FRC conducted a review
of the Group’s Interim Report for the period
ended 23 September 2023, as part of its routine
corporate reporting quality assessment. I am
pleased to confirm that following this review,
noimmediate actions were required from the
Group. Observations were brought tothe
attention for consideration in the preparation
ofthe Group’s 2024 Annual Report and future
interim reports, and the suggestions have been
incorporated. The Committee appreciates FRC’s
collaboration and valuableinput, which support
our ongoing commitment to enhancing the
quality of our financial reporting.
Over the next 12 months the Committee will
continue to focus on key areas of financial
judgement and reporting as well as further
enhancing the Group’s internal control
environment. Certain principal risks will be
strategically reviewed via deep dive risk reviews
by the Committee to ensure mitigating controls
remain adequate against an evolving risk
landscape. The Committee will also review the
adequacy of other sources of assurance in areas
such as ESG and the developing requirements
of the International Sustainability Standards
Board (ISSB).
Alan Williams
Chair of the Audit Committee
21 May 2024
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
97
THE AUDIT COMMITTEE
CONTINUED
Performance evaluation of
theAuditCommittee
An independent external evaluation of the
effectiveness of the Committee is conducted
every three years. In the last review carried
outin 2022 by Clare Chalmers Limited, the
evaluation indicated that the Committee was
operating effectively.
Financial reporting
During the year, the Audit Committee reviewed
accounting papers prepared by management
and considered, with input from external
auditors, the appropriateness of the main
accounting policies, estimates and judgements
made in preparing the financial statements.
The key matters considered by the Committee
in review of the financial statements for the 53
weeks ended 30 March 2024 are set out below.
Biological assets
• In accordance with IAS 41, biological assets
are valued at fair value in the Group balance
sheet, with the net valuation movement
disclosed separately on the face of the
income statement. The valuation requires
judgement involved in the classification
ofbiological assets within the fair value
hierarchy, and is sensitive to key assumption
which includes the fair value of livestock at
the various stages of development. The Audit
Committee reviewed the assumptions used
within the models, management’s proposed
accounting treatment and the change in the
fair value hierarchy, resulting in sucklers,
weaners and finished pigs moving from Level
2 into Level 3 of the fair value hierarchy, and
was satisfied that the standard had been
fairly and consistently applied and the
required disclosures made inthe financial
statements (See Note 14).
Investment carrying value (Company only)
• The Committee reviewed management’s
assertion that no impairment triggers were
identified, and the assumptions used in
determining the carrying value ofinvestments
in subsidiariesin the Parent Company.
These were considered reasonable.
Goodwill
• In accordance with IAS 36, the carrying
valueof goodwill is reviewed annually for
impairment. For each cash-generating unit
(‘CGU’) the recoverable amount is determined
as the higher of either the fair value less cost
of disposal or the value in use. The Audit
Committee reviewed the judgements
applied and assessed the reasonableness
ofthe assumptions used indetermining
CGUs and the recoverable amounts
including discount rates and market data.
The Committee also reviewed the reasons
for completing the goodwill impairment
assessment for the Fresh Pork and Livestock
CGUs on a combined basis. The Committee
was satisfied that theassumptions used and
the recoverable amounts determined were
appropriate. (SeeNote 10).
• Specific attention was paid to the Cranswick
Pet Products CGU, as the losses incurred
bythe business since its acquisition in FY22
served as a significant indicator for potential
goodwill and intangible asset impairment.
The Audit Committee reviewed
management’s projections and assumptions
underpinning the value-in-use model and
assessed calculations as well as sensitivity
analyses. Additional consideration was given
to the fair value less cost of disposal
calculation, which led the Committee to
concur with the need to recognise an
impairment. Two additional intangible assets
were recognised on acquisition, customer
relationships and trade names, which were
separately tested for impairment given the
change in business model and a greater focus
on new customer relationships. Aseparate
review was also performed over the fixed
assets within the Pet Products business.
The Committee was satisfied with the
amount of impairment recognised in the
Group’s financial statements (See Note 10).
The Audit Committee also considered the
following other reporting matter relevant tothe
financial statements:
Share Based Payments
• The Group has changed its accounting policy
for share based payments (‘SBP’) such that the
value of shares that have been exercised,
lapsed or forfeited is now credited to Retained
Earnings as opposed to remaining within the
SBP Reserve. The impact on of this resulted in
a third balance sheet to present the restated
FY22 position, alongside both FY23 and
FY24. The Audit Committee considered the
basis for and impact of the change and
concluded that the proposed change was
appropriate (See Note 2 and Note 24).
Going concern and viability
At the request of the Board, and reflecting
therequirement of the UK Corporate
Governance Code, the Audit Committee
reviewed and reported to the Board that it was
satisfied withthe risk disclosures set out on
pages 68 to 72 and the Viability Statement
presented on page 73.
To perform this review the Audit Committee:
• Reviewed risk reporting disclosures in detail;
• Considered the appropriateness of the
three-year time horizon selected for testing
the Group’s viability;
• Reviewed the Group’s annual budget and
extended three-year forecast and the
assumptions therein for reasonableness;
• Agreed appropriate downside sensitivities
tobe applied to the forecasts for stress
testing, based on the Group’s Principal Risks
and the work of the Risk Committee (in the
current year focused on the risk of disease
within livestock and a reduction in consumer
demand for premium and added-
value products);
• Reviewed the availability of debt funding
forthe Group across the three-year forecast
period; and
• Reviewed the TCFD disclosure, the risks
disclosed and the forecast impact of climate
change on the business.
The Board and the Committee concluded that,
based on the results of the analysis provided,
they have a reasonable expectation that the
Group will be able to continue in operation and
meet its liabilities as they fall due over a
three-year time horizon (see page 73).
Fair, balanced and understandable
At the request of the Board, the Audit
Committee reviewed whether the financial
statements taken as a whole are fair, balanced
and understandable and provide the necessary
information for Shareholders to assess the
Company’s position and performance, business
model and strategy.
The Board and the Committee understand
that‘fair’ should mean reasonable and impartial,
‘balanced’ should mean even-handed with
bothpositive and negative messages being
portrayed and ‘understandable’ should mean
simple, clear and free from jargon or
unnecessary clutter.
In performing this review, the Audit Committee:
• Reviewed and assessed key judgement areas
detailing management’s accounting
treatment, and discussed key points with
theChief Financial Officer outlining reasons
for considering the disclosures to be fair,
balanced and understandable;
• Obtained confirmation from the preparers
ofthe Annual Report that they had reviewed
the fairness and completeness of
their sections;
• Considered the Annual Report and Accounts
inthe context of the Audit Committee’s
knowledge and experience of the business;
• Reviewed the disclosure of Alternative
Performance Measures (‘APMs’) and
considered their appropriateness for
monitoring the Group’s underlying
performance; and
• Discussed this evaluation with
External Auditors.
The Committee also established through
reports from management that there were
noindications of fraud relating to financial
reporting matters.
The Audit Committee is pleased to report
thatit reported to the Board that the financial
statements taken as a whole are fair, balanced
and understandable.
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
98
Risk management and internal control
The Committee conducted its annual review
ofthe effectiveness of the Company’s internal
control and Risk Management Framework
through the work of Internal Audit, an External
Quality Assessment (EQA), the external
auditors’ control recommendations on the
Group’s financial control environment following
their audit and thorough review and challenge
of monthly Board reports. The Committee also
reviewed key Group policies to include;
whistleblowing and bribery prevention policies
and regular whistleblowing update reports on
behalf of the Board.
The Group Risk Committee chaired by the
Chief Financial Officer and including
representatives from all areas of the business
met regularly and reported its outputs directly
to the Audit Committee and updated the Board
accordingly. During the year, members of the
Audit Committee attended Group Risk
Committee meetings to ensure that the Risk
Management Framework and risk processes
wereadequate,and that risks were
effectively discussed.
In addition, the Committee reviewed the key
outputs from work performed by the Group
Risk Committee to gain assurance over the Risk
Management Framework, which is designed
toidentify, assess, prioritise, monitor and
mitigate risk and was satisfied that all Principal
Risks, including emerging risks, had been
identified (see pages 68 to 72) and that the Risk
Management Framework, including processes
for assessing and reporting emerging risks, was
operating effectively. Over the course of the
coming year, it is planned that a Risk
Management Maturity Assessment will be
completed by a third party to provide further
assurance over the robustness and
effectiveness of the Group’s Risk Management
Framework and importantly to identify any
areas where actions can be progressed to
further enhance existing Risk
Management arrangements.
During the course of the year, the Committee
continued to support the Board on the
deployment of risk appetite statements
specifically being the level of risk the Group
was willing to tolerate in order to achieve its
operational and strategic objectives, which in
turn will help determine the depth and extent of
actions and resources required to mitigate risk
to an agreed acceptable level. Over the coming
year several deep dive risk reviews are planned,
which will be supported as required by third
party subject matter experts, and will provide
further assurance over the assessment,
reporting and mitigating actions associated
with specific Principal Risks.
The Committee also oversaw the developments
aimed at advancing Corporate Governance
reform in the UK. This included closely
following the UK Government’s legislative
proposals and the Financial Reporting Council’s
(FRC) consultation on updates to the UK
Corporate Governance Code. In light of the
updated Corporate Governance Code
released in January 2024, the Committee
assessed its requirements and discussed with
management the proposed strategy for
their implementation.
Looking ahead, the Committee’s primary focus
for the upcoming year will be on implementing
the newly introduced 2024 UK Corporate
Governance Code, particularly concerning
audit, risk, internal control, and the optimisation
of a new IT system introduced to enhance the
documentation and evidence supporting
control activities.
Internal audit
The Audit Committee is responsible for
monitoring the performance and effectiveness
of Internal Audit. The Committee reviewed and
approved the annual Internal Audit plan,
ensuring that it was aligned to the Principal
Risks of the business and received regular
updates on the delivery of the plan objectives at
each of its meetings during the year.
The Committee also reviewed and approved
the Group’s Internal Audit Charter, which sets
out the role and mandate of the Internal Audit
function, the Head of Risk and Internal Audit’s
annual independence declaration and the
budget for the coming year.
The Internal Audit approach considered the
overall Group Risk Management Framework as
well as risks specific to individual operations
and was regularly updated to consider changes
to the risk profile of the Group. Internal Audit
findings, together with responses from
management, were considered by the Audit
Committee and challenged where necessary.
The Audit Committee also reviewed progress
by management in addressing the issues
identified on a timely basis.
The Audit Committee takes control weaknesses
identified at site level seriously given the
decentralised structure of the Group.
During the year, Internal Audit performed
acore financial controls review at the majority
of the Group’s sites. In common with prior years,
Internal Audit also reviewed specific Group
non-financial risk areas including whistleblowing
procedures and the roll out of a new group
HR system.
Following the discovery of an immaterial fraud
incident by an external third party at one of our
sites, the Audit Committee immediately
initiated a proactive response to safeguard the
integrity of Group’s operations. The Audit
Committee ensured that the root cause
ofthese weaknesses were understood and that
appropriate mitigating action was taken
toprevent recurrence. By requesting Internal
Audit to perform these steps, the Audit
Committee aimed to identify any potential
vulnerabilities, reinforce control mechanisms,
and strengthen our overall risk management
framework. The Audit Committee engaged
directly with senior management at specific
sites to seek this understanding and to satisfy
themselves that appropriate actions had
been implemented.
In respect of all other Internal Audit reviews
completed over the course of the year, no
control failings or weaknesses were identified
that would have asignificant impact on the
Group, however recommendations were raised
where necessary at specific sites to strengthen
existing processes and controls and follow-up
audit visits were carried out to ensure that
agreed corrective actions were being
progressed by management.
In view of the work of Internal Audit, external
audit, Group Finance and Site management
teams, it was considered unlikely that
aweakness at an individual site would have
asignificant impact on the Group.
External audit
PricewaterhouseCoopers LLP (PwC) has been
the Group’s auditor since 2017. The Audit
Committee assesses annually the qualifications,
expertise, resources and independence of the
auditor as well as the quality and effectiveness
of the audit process. This exercise was
performed through a questionnaire completed
by Audit Committee members and the Group’s
senior finance team.
In assessing audit quality, the Committee
evaluated four key areas: the mindset and
culture of the auditor; the auditor’s approach
toquality control; the skills, character and
knowledge of audit staff; and the judgements
they make during the audit process.
The Committee also considered the following
factors in assessing the effectiveness of the
external audit process:
• The experience and expertise of the audit
partner and the audit team;
• The level of professional scepticism displayed
throughout the audit process;
• The extent to which the audit plan was met
and the quality of its delivery and execution;
• The robustness and perceptiveness of work
performed on key accounting and audit
judgements and estimates; and
• The content of the reports on audit findings
and other communications.
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
99
THE AUDIT COMMITTEE
CONTINUED
The output from the process for the 2023
auditwas reviewed and discussed by the
AuditCommittee and with the external
auditors. Having considered these factors
andhaving noted the observations made
intheauditor’s reporting, the Committee
wassatisfied with the effectiveness of the
external audit process and recommended to
the Board that PricewaterhouseCoopers LLP
(PwC) be reappointed as external auditors
totheGroup and a resolution to this effect
willbe proposed at the 2024 AGM.
For the 53 weeks ending 30 March 2024,
theBoard elected to provide a parental
guarantee in respect of certain of its subsidiary
companies and therefore not require an audit of
those subsidiary financial statements. By virtue
of this, the work of PwC has focused on the
consolidated Group and the Parent Company,
Cranswick plc, and did not extend to the other
subsidiary statutory financial statements.
The Audit Committee considered the
appropriateness of this election and concluded
that the work performed by PwC provided
sufficient assurance to the AuditCommittee
and the Group’s Shareholders that the election
of the Board was appropriate in balancing the
cost and benefit of third-party assurance.
Auditor independence
The Audit Committee approves the terms
ofengagement and remuneration of external
auditors and monitors their independence.
The Committee confirms that it has complied
with the requirements of the CMA Order
2014as regards audit tendering, auditor
appointment, negotiation and agreement of
audit fees and approval of non-audit services.
The Group meets its obligations for maintaining
an appropriate relationship with external
auditors through the Audit Committee, whose
terms of reference include a requirement to
oversee the commissioning and monitoring
ofthe level of non-audit work performed by
external auditors, to ensure objectivity
andindependence is safeguarded. There is an
established policy to avoid compromising the
external auditors’ independence that the
auditor shall be excluded from all non-audit
work specified as such in the Ethical Standard
2019. The Audit Committee Chair’s approval
isrequired prior to awarding to the external
auditors any permissible non-audit services
inexcess of £30,000 and in practice all
non-audit services are reviewed and agreed
bythe AuditCommittee. Any such work will
beon an exceptional basis only and additionally
subject to PwC’s own rules onethical standards.
In the current year, non-audit services provided
by PwC included both the review of Interim
Financial Statements and the provision of a
Limited Assurance Report over selected
environmental metrics disclosed on page 37
ofthis report. Although the Committee do not
encourage external auditors to carry out
non-audit work, with the exception of their
review of the Interim Financial Statements,
thisassurance engagement is specifically
permitted by the FRC’s ethical standards,
givenits coverage of material included within
this Annual Report. The Audit Committee did
not consider the provision of these services
tobe athreat to PwC’s independence.
During the year, the Audit Committee reviewed
and considered the following factors to assess
the objectivity and independence of PwC:
• The auditor’s procedures for maintaining and
monitoring independence, including those
toensure that the partners and staff have
nopersonal or business relationships with
the Group, other than those in the normal
courseof business permitted by UK
ethical guidance;
• The degree of challenge to management
andthe level of professional scepticism
shown by the audit partner and the audit
team throughout the process;
• The auditor’s policies for rotation of the audit
partner every five years, and regular rotation
of key audit personnel;
• The nature of non-audit work undertaken
during the year and its approval in
accordance with the Audit Committee’s
guidelines for ensuring independence;
• Adherence to the Group’s internal policy
that, other than in exceptional circumstances,
the fees paid to external auditors for
non-audit work in any one year should not
exceed the lower of £500,000 and 50 per
cent of the external audit fee on average over
the last three years; and
• A report from PwC confirming that they have
adequate policies and safeguards in place
toensure that auditor objectivity and
independence is maintained.
Details of the fees paid for non-audit services
are set out below:
Non-Audit Fees £’000
Interim review 48
Other services 35
Total Non-Audit Fees 83
Audit fee for year ended
30March 2024 1,094
Total Audit Fees 1,177
Ratio of Non-Audit Fees to
Audit Fees 0.07:1
The ratio of non-audit fees to audit fees on
average over the last three years was 7 per
cent, well below the 50 per cent limit set out
inthe Group’s policy.
Following consideration of the performance
and independence of the external auditors
atitsmeeting in May 2024, the Audit
Committee recommended to the Board that
the reappointment of PwC as the Company’s
external auditors should be proposed to
Shareholders at the 2024 Annual
General Meeting.
Alan Williams
Chair of the Audit Committee
21 May 2024
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
100
THE NOMINATION COMMITTEE
Composition of the
NominationCommittee
Committee Members Meetings attended
Tim Smith – Chair 2/2
Liz Barber 2/2
Yetunde Hofmann 2/2
Alan Williams 2/2
Mark Reckitt* 0/2
Pam Powell* 0/2
* Mark Reckitt and Pam Powell retired as directors prior to the
Nomination Committee meetings scheduled during the year
ended 30 March 2024.
Other regular attendees
• T he Ch ief E xecut ive an d Ch ief Fi nan cia l
Officer attend by invitation as required.
• The Company Secretary also attends
meetings as secretary to the Committee.
Frequency of meetings
The Committee meets as necessary and at least
twice a year.
Independence
All members of the Committee are independent.
Key activities in 2023/24
Board composition
• Recommended the appointment
ofAlanWilliams as an independent
Non-ExecutiveDirector.
• Recommended the appointment
ofRachelHowarth as an independent
Non-Executive Director.
• Recommended the re-appointment of
TimSmith as an independent Non-Executive
Director andChairman.
• Reviewed ongoing training requirements for
Non-Executive Directors and development
of industry knowledge.
Succession planning
• Reviewed and updated the succession plans
forthe Board and Senior Management.
• Reviewed the Group talent
managementprogramme.
Non-Executive Directors
• Reviewed the continued independence
ofthe Non-Executive Directors.
• Reviewed Non-Executive Director time
commitments and overboarding.
Diversity
• Reviewed the Group’s diversity policy.
• Reviewed The Parker Review 2023 and
considered senior management ethnic
diversity targets.
• Reviewed UK Government Guidance relating
to ethnicity pay gap reporting.
• Reviewed compliance with the 2018 UK
Corporate Governance Code for the Group.
Governance and evaluation
• Reviewed the Governance Section of the
2024 Annual Report and recommended
it to the Board for approval.
• Reviewed the Committee’s terms
of reference.
Board appointments
Following the retirement of Mark Reckitt and
Pam Powell as Non-Executive Directors, the
Board had three independent Non-Executive
Directors (excluding the Chairman) and four
Executive Directors and, consequently, did not
comply with Provision 11 of the Corporate
Governance Code from September 2023,
which requires that half the Board, excluding
theChairman, should be independent
Non-Executive Directors, which is explained
inmore detail in the Compliance Statement
onpage 93. However, I am pleased to report
that following the appointment of Rachel
Howarth asa Non-Executive Director
on30 April 2024 we are again in compliance
withthis requirement.
During the year, Mark Reckitt and Pam Powell
retired as Non-Executive Directors.
Mark retiredin July 2023 having served nine
years as a Non-Executive Director and as
SeniorIndependent Director and was replaced
by LizBarber as Senior Independent Director.
Pam retired in September 2023 having served
nearly six years as a Non-Executive Director
andas Chair of the Remuneration Committee
and was replaced by Liz Barber as Interim Chair
of the Remuneration Committee. Liz has been
aNon-Executive Director since 2021 anda
member of the Nomination, Audit, Remuneration
and ESG committees and hassignificant
management and non-executive experience
having previously been the Chief Executive
ofKelda Group and having also served on
theBoard of a number of listed companies.
The Nomination Committee reviews
thestructure, size and composition
ofthe Board and is responsible
forconsidering and making
recommendations to the Board
onnewappointments of Executive
andNon-Executive Directors.
As Chair of the Nomination
Committee,Iam pleased
tointroduceitsreport for the
53weeksended 30March 2024.
Tim J Smith CBE
Chair of the Nomination Committee
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
101
THE NOMINATION COMMITTEE
CONTINUED
During 2023/24, the Company undertook
twosearches for additional Non-Executive
Directors which resulted in the appointment
ofAlan Williams in August 2023 and Rachel
Howarth inApril 2024. The Committee,
inconsultation with other Board members,
undertook astructured assessment of the
Board’s composition needs through the
development ofa skills matrix and agreed
thekey experience and skills required.
Teneo and Russell Reynolds (independent
search consultancies) were then engaged to
also assist with the first and second searches
respectively, which involved the preparation of
separate long and short lists for consideration.
A number of candidates were interviewed
bythe Chair and Chief Executive and members
of the Committee following which Alan was
recommended to the Board as the Committee’s
preferred candidate in May 2023 and Rachel
was recommended to the Board asthe
Committee’s preferred candidate in March
2024. During each process both Alanand
Rachel met individually with other members
ofthe Board, following which each proposed
appointment was unanimously approved
bytheBoard.
Alan was appointed to the Board with effect
from conclusion of the 2023 AGM and has also
become a member of the Nomination, Audit,
and ESG Committees and was appointed as
Chair of the Audit Committee in succession
toLiz Barber. Alan was the Chief Financial
Officer of Travis Perkins plc and prior to this,
held a number of senior management and
finance roles in the food sector having served
as CFO at Greencore Group plc for six years
and previously working at Cadbury plc.
Alan isalso a member of the Institute of
Management Accountants. Accordingly, the
Committee considered that given his extensive
finance experience in listed companies,
Alanwas appropriately qualified to succeed
Lizas Chairof the Audit Committee.
Rachel was appointed to the Board on
30 April2024 and has become a member
oftheRemuneration, Nomination and ESG
committees. Rachel is the Group People
Officerat Whitbread plc, and was previously
the Group HR Director with SSP Group plc,
before which she spent sixteen years with
Tescoplc in operational and human resource
capacities andhas significant experience of
theoperation oflisted company remuneration
committees. Given her extensive experience,
itis intended that Rachel will succeed
LizBarberas Chair of the Remuneration
Committee in August, following conclusion
ofthe scheduled reviewofthe Company’s
Directors’ Remuneration Policy.
During March 2024, the Senior Independent
Director discussed my reappointment as
aNon-Executive Director and Chairman
withthe other Non-Executive Directors and
Executive Directors, without me being present,
following which the Committee recommended
my reappointment. I did not participate in the
consideration of my reappointment at either
the relevant Committee or Board meetings.
All Directors will be standing for re-election
atthe AGM. The Board has set out in the
Noticeofthe Meeting its reasons for supporting
the re-election of the Directors and their
biographical details on pages 78 and 79
demonstrate the range of experience and skills
which each brings to the benefit of the Company.
Succession
The Committee reviewed the Group’s
succession plan which relates to Executive
Members of the Board and Key Management
throughout the Group. The Committee’s review
included arrangements relating to contingency
planning for sudden and unforeseen departures
together with longer-term planning focused
onidentifying potential candidates within
theGroup for progression and areas where
further training and/or external recruitment
may be required.
During the year the Committee has also
overseen the promotion of a number of
candidates from within the Group to Senior
Executive positions as part of ensuring an
orderly succession.
In relation to the appointment of any new
Non-Executive Directors or Chairman,
theGroup’s policy is to engage independent
externalsearch consultants to assist with
appointments, who are required to have
adoptedthe Voluntary Code of Conduct
forExecutive Search Firms ongender
diversityand best practice. The Group does
notadvertise Non-Executive positions,
butkeepsdevelopments in market practice
inrelation to this under review.
Independence of
Non-Executive Directors
Consideration was given by the Committee
tothe continued independence of the
Non-Executive Directors, including their term
in office, the time commitment required from
each of them taking into account the number
ofmeetings and preparation and attendance
atthose meetings. It was concluded that
allNon-Executive Directors remained
independent and devoted an appropriate
amount of time to fulfil their responsibilities.
Male
Female
67%
33%
Board
Male
Female
62%
38%
Gender breakdown
Total employees
Male
Female
53%
47%
Grads/App’s
Male
Female
74%
26%
Senior Managers*
* Senior Managers comprise executive management reporting
directly to the Chief Executive as set out in the table above,
and are the directors of the Company’s subsidiaries.
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
102
Overboarding
The Committee has considered Director
overboarding and it is pleased to note that
there are no issues. It believes that the
Non-Executive Directors have sufficient time
and energy to be effective representatives
ofShareholders’ interests.
The Committee’s review included Non-
Executive Director’s commitments to private
companies and charities to ensure they have
sufficient time available to discharge
theirresponsibilities effectively. During the
year Liz Barber was appointed a Non-Executive
Director of Sizewell C Limited and I was
appointed as Non-Executive Chairman
ofSheffield Hallam University. However, in
bothcases we have also reduced our other
third-party commitments and the Committee
was satisfied that we continue to have sufficient
time to fully discharge our responsibilities
tothe Company.
Mark Bottomley is a Non-Executive Director
ofVp plc. The Company adheres to shareholder
guidance in relation to its Executive Directors
holding no more than one Non-Executive
position in another listed company.
Board structure
Consideration was given to Board and
Committee structure and operation and
weconcluded that the current operating
Boardstructure explained on page 89 of
theCorporate Governance review remained
effective and appropriate.
Given the increasing requirements placed
uponcommittee members, and consistent
withgood corporate practice, we have decided
that going forward it is no longer appropriate
for each Non-Executive Director to also
beamember ofall Board committees.
This hasbeen implemented when appointing
AlanWilliams and Rachel Howarth to relevant
Board committees.
Diversity
Cranswick recognises the potential benefits
ofbringing together a wide variety of
backgrounds and experiences and is pursuing
the development of a diverse workforce that
isrepresentative of all sections of society.
Our Group Diversity Policy requires that
allappointments, including recruitments
andinternal promotions, are based on merit,
qualification and abilities, and are not influenced
or affected by race, colour, nationality, religion
or belief, gender, marital status or civil
partnership, family status, pregnancy or
maternity, sexual orientation, gender
reassignment, disability or age. The policy
applies at all levels across the Group, including
the Board and its Committees. Our recruitment
practices are designed to eliminate bias
anddiscrimination, which includes how
andwhere we recruit colleagues and ensuring
ourrecruitment materials and interview
practices are inclusive.
The Committee considered the 2023 Parker
Review’s recommendation that companies
voluntarily establish a percentage target
relating to ethnic diversity for senior
management to be achieved by 2027.
We recognise that our current senior
management team and their immediate reports
are not ethnically diverse, and we are therefore
not in a position to set meaningful ethnic
diversity targets based on our existing
succession pipeline. Over the longer-term this
isbeing addressed through our recruitment
and graduate programme supplemented
byexternal recruitment, however, this is not
anticipated to have a significant impact on the
senior management team within the reporting
horizon anticipated by the Parker Review.
The Group is taking steps to address this and
toencourage an inclusive culture ensuring race
equality is embedded into our vision, mission,
values and business plan which will support
thedevelopment of a more diverse senior
management team.
During 2023, the Committee also considered
UK Government guidance released relating
toethnicity pay gap reporting in relation
towhich the Committee also engaged
withanumber ofshareholder action groups.
The Group has historically collected data
relating to its workforce by reference to
nationality and therefore does not currently
have sufficient relevant data to enable reliable
ethnicity reporting to be undertaken.
However,we are inthe process of introducing
new HR systems across the Group’s sites that
will enable the capture of such data across the
workforce, which it is anticipated will be largely
completed during the next financial year,
following which itis anticipated that ethnicity
pay gap reporting will be undertaken. It will also
enable us to identify any structural and cultural
barriers that may contribute to maintaining any
workplace inequalities, which will be combined
with agreater focus on diversity in our staff
surveys togain a greater understanding
ofcolleague’s opinions. The Group will also
beintroducing compulsory diversity, equality
andinclusion training for all staff to underpin
our commitment to increasing our diversity.
The gender breakdown of the Group’s
workforce is set out on page 102. The proportion
of females overall and in graduate and
apprentice positions remained largely static
over the last 12 months, with anexception of
manager positions, where thedistribution has
improved year-on-year. We recognise we need
to do more to ensure abetter gender balance
and are addressing thisthrough the introduction
of more flexible working practices, provision
ofenhanced maternity pay, standing by our
commitments inour Gender Pay Gap report,
working closely with external organisations
providing support, development and mentoring
opportunities tofemale colleagues and
introducing initiatives to reduce female
health inequalities.
Our sector has historically had low levels of
ethnic and female participation in management
in the geographic regions in which we operate.
Whilst we have been actively taking steps
topromote greater diversity including through
our recruitment and our graduate programme,
this represents a longer-term approach which
will result in improvement over time as careers
develop and our colleagues move into more
senior management positions. We have also
explained on page 54 of the Strategic Report
various further measures we are undertaking
toencourage diversity, which apply across
theGroup at all levels, including
senior management.
Details of Board and executive management
diversity are set out at the end of this report
inaccordance with Listing Rule requirements.
The Listing Rules also require that
companiesexplain where they do not meet
thefollowing targets:
• At least 40 per cent of the Board are women.
• At least one senior Board position
(Chair,Chief Executive, Senior Independent
Director, Chief Financial Officer) is a woman.
• At least one Board member is from an ethnic
minority background.
Cranswick does not meet the target relating
towomen on the Board (where following Rachel
Howarth’s appointment, 33 per cent of the
Board will be women). Whilst we have made
significant progress over recent years in
relation to diversity on the Board and other
senior positions across the Group, we recognise
that there remains more to achieve.
The Nomination Committee considers
thatdiversity can strengthen the Board and
thatitisimportant that the Board is not made
upexclusively of like-minded individuals with
similar backgrounds. Whilst management
appointments will continue to be made on the
basis of merit, without the adoption of specific
diversity targets, the Group recognises the
potential benefits of a more diverse
management and has a policy of increasing
diversity at all levels. The Board remains mindful
of the need to promote wider forms of diversity
when considering future appointments to the
Board and Senior Management.
Successful delivery of the Group’s strategy
andplanned growth depends on the
recruitment and retention of a motivated and
skilled workforce in an increasingly competitive
and mobile labour market. The Board
recognises that broadening diversity to ensure
that our workforce is more reflective of society
maximises our available talent pool and the
attractiveness of a career with the Group both
at a senior level and more generally.
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
103
THE NOMINATION COMMITTEE
CONTINUED
Board and executive management diversity
Gender Identity or Sex
Number of
Boardmembers
Percentage
ofBoard
Number of
senior positions
on the Board
(CEO, CFO, SID
andChair)
Number in
executive
management
Percentage of
executive
management
Male 6 75 3 7 78
Female 2 25 1 2 22
Not specified/prefer not to say – – – – –
Ethnic Background
Number of
Boardmembers
Percentage
ofBoard
Number of
senior positions
on the Board
(CEO, CFO, SID
andChair)
Number in
executive
management
Percentage of
executive
management
White British or other White (including minority-whitegroups) 7 87. 5 4 9 100
Mixed/Multiple Ethnic Groups
– – – – –
Asian/Asian British
– – – – –
Black/African/Caribbean/BlackBritish 1 12.5 – – –
Other ethnic group, including Arab
– – – – –
Not specified/prefer not to say
– – – – –
Notes:
1. The tables above reflect relevant data at a reference date of 30 March 2024.
2. Executive management are the most senior level of managers reporting to the Chief Executive, including the Company Secretary, but excluding administrative and support staff.
3. Diversity data was collated by the Company Secretary to meet the disclosure requirements of LR 14.3.33(1) and LR 14.3.33(2) by the individuals concerned self-reporting in response to a written
questionnaire requiring self-identification by reference to the ethnic groups, categories of gender identity and sex adopted by the UK Office for National Statistics for the 2021 Census of England and
Wales (and included an option not to specify in response). The Company’s approach to data collection was consistent for the purposes of making disclosures under LR 14.3.33 and across all individuals
in relation to who data is reported.
Board performance evaluation
The Board evaluation was undertaken this year
by the Company Secretary who is considered
asuitable and independent person to
undertake the review. Further details of the
Board Evaluation are set out on page 91 ofthe
Corporate Governance Review.
The Chairman also evaluated the performance
of individual Directors and the Chairs of each
Board Committee. The performance of the
Chairman was also reviewed by the Senior
Independent Director. The Board considered
the performance of each Director to be
effective and concluded that both the Board
and its Committees continue to provide
effective leadership and exert the required
levels of governance and control.
Governance
The Committee’s terms of reference were
reviewed by the Committee and updated
during the year. A copy of the Committee’s
terms of reference is available on the
Company’s website at www.cranswick.plc.uk.
On behalf of the Committee
Tim J Smith CBE
Chairman
21 May 2024
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
104
THE REMUNERATION COMMITTEE
The Remuneration Committee establishes
the Remuneration Policy forExecutive
Directors’ remuneration and determines
theappropriate performance conditions
forthe annual cash bonus and long-term
incentive awards. The Remuneration
Committee also sets remuneration for
theChair, Executive Directors and Senior
Executives. The Remuneration Committee
ismindful of consistency andfairness
inExecutive Directors’ remuneration,
takinginto account theperformance
oftheCompany andexperience of
Shareholders andthewider workforce.
Liz Barber
Interim Chair of the Remuneration Committee
This report contains the following
separatesections;
• Part 1 – The Chair’s annual statement
onpages 105 to 109.
• Part 2 – Remuneration at a glance
onpage111.
• Part 3 – Full details of our new Remuneration
Policy on pages 112 to121.
• Part 4 – The Annual Report on Remuneration
on pages 122 to 131 which discloses how the
existing Remuneration Policy has been
applied during the year and how, subject to
Shareholder approval, it is proposed that the
new Policy will be applied in 2024/25.
Those elements ofPart4subject to external
audit are clearly identified.
The Remuneration Committee
The Remuneration Committee (the Committee)
is a formal Committee of the Board. Its remit
isset out in the terms of reference adopted
bytheBoard. The Committee’s terms of
reference were reviewed by the Committee
during the year. A copy of the terms of reference
is available on the Group’s website
atwww.cranswick.plc.uk within the Corporate
Governance section. The Committee’s
performance against these terms of reference
is reviewed on an annual basis and the
Committee is satisfied that it has acted
inaccordance with its terms of reference
duringthe year.
The primary purpose for the Committee,
assetout in its terms of reference, is to set
theRemuneration Policy for the Chair,
Executive Directors and Senior Executives
(including the Company Secretary).
Committee meetings during the year
The attendance of members at the meetings
was as follows:
Committee Members Meetings attended
Liz Barber* – Interim Chair 5/5
Yetunde Hofmann** 4/5
Pam Powell*** 2/5
Mark Reckitt**** 2/5
Tim Smith 5/5
* Liz Barber was appointed Interim Chair of the Committee
witheffect from 1 September 2023 when Pam Powell
retiredas a Director.
** Yetunde Hofmann was unable to attend the April
Remuneration Committee meeting due to a long-standing
conflicting commitment that was approved by the Board.
*** Pam Powell attended all relevant meetings prior
to retirement.
**** Mark Reckitt attended all relevant meetings prior
to retirement.
Other regular attendees
• The Chief Executive, Chief Financial Officer
and Group HR Director attend by invitation
as required (no individual is involved in
decisions relating to their own remuneration).
• The Company Secretary also attends
meetings as secretary to the Committee.
Frequency of meetings
The Committee meets as necessary and at least
twice a year.
Independence
All members of the Committee are independent.
Key activities in 2023/24
Review of Remuneration Policy
• Appointed independent remuneration
consultants to advise the Committee.
• Reviewed the existing Remuneration Policy
and proposed amendments.
Executive Director and
SeniorExecutiveremuneration
• Reviewed Executive Directors’ and other
Senior Executives’ base salaries.
• Reviewed the Senior Executives’ annual
bonus structure.
Approval of bonuses
• Set objectives for the annual bonus
arrangements for 2024 for Executive
Directors and Senior Executives.
• Reviewed the achievement of the Executive
Directors’ bonus arrangements against
the2023 target.
LTIP awards
• Approved LTIP awards granted in 2023,
including targets linked to reductions
inemissions, water intensity and
energy intensity.
• Reviewed the outcome of performance
conditions for the LTIP awards which were
granted in 2021.
Shareholder engagement
• Engaged with major Shareholders on
theproposed new Remuneration Policy
asdiscussed further below.
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
105
THE REMUNERATION COMMITTEE
CONTINUED
Other activities
• Reviewed the Annual Remuneration Report
for 2023/24.
• Reviewed employee benefit structures
andapproved the issue of the SAYE share
scheme for 2023/24.
• Reviewed and approved the introduction
ofaBuy As You Earn share incentive
planavailable to all Group employees.
• Reviewed and approved new LTIP rules to be
proposed to Shareholders at the 2024 AGM.
• Reviewed Committee effectiveness.
• Approved the Committee’s terms
of reference.
Statement by the Chair of the
Remuneration Committee
On behalf of the Remuneration Committee
andthe Board, I am pleased to present the
Remuneration Committee Report for the
53weeks ended 30 March 2024, which is my
first report since appointment as Interim Chair
on1 September 2023. I would like to thank
mypredecessor, Pam Powell, on behalf of
theCommittee, for her contribution as Chair.
This year we continued to apply the
Remuneration Policy that was adopted in 2021,
but which is due to be renewed in July 2024.
Consequently, we have also reviewed our
existing policy with thehelp of independent
executive remuneration consultants, Deloitte
LLP, and will be asking Shareholders to approve
a revised Remuneration Policy at the Company’s
AGM on29 July 2024. A summary and
explanation ofthe key changes proposed is set
out on pages 107 and 108 with the full
Remuneration Policy set out in Part 3.
If the Remuneration Policy is approved
byShareholders, it will become effective
immediately for three years until the Company’s
AGM in 2027. As in prior years, Shareholders
will also be asked to pass an advisory vote
onthe Annual Report on Directors’
Remuneration (excluding Remuneration Policy
renewal) attheforthcoming AGM.
Resolutions will also be proposed at the
Company’s AGM on 29 July 2024 to approve
the Company’s new LTIP, Buy As You Earn
shareincentive plan and to increase the overall
limiton Non-Executive Directors’ fees.
Further details of these resolutions are set out
inthe accompanying Notice of AGM.
Company performance
Over the course of 2023/24, the Group has
delivered a very strong performance across
itscore product categories and has continued
to consolidate its supply chains and expand
itsMediterranean food, poultry and pet food
categories, with adjusted profit before tax
increasing by 26.1 per cent and adjusted
earnings per share increasing by 15.6 per cent.
Furthermore, as discussed in the Chairman’s
Statement on page 10, the Company is also
proposing an increased dividend payment
toShareholders. The Remuneration Committee
believes it is important that the Executive
Directors’ interests are aligned with the
Company’s strategic vision, the interests
ofShareholders and that the incentive
outcomes reported are appropriate given
theperformance of the Group.
The Company recognises the continuing
difficulties faced by many of our employees
notwithstanding recent reductions in inflation.
The Group continues to promote benefits such
as discount voucher schemes to help mitigate
daily living expenses, along with continuing
toprovide other benefits such as subsidised
canteens, transport and discounted staff sales.
The Company is introducing a Buy As You Earn
share incentive plan which will be available
toallemployees (in addition to the Company’s
existing SAYE Plan) which will offer a tax
efficient way for employees to further
participate in the success of the Company
through share ownership.
2024 bonuses
The Company delivered a strong financial
performance in the year and grew revenue by
11.9 per cent and increased adjusted profit
before tax by 26.1 per cent.
Bonus awards for 2024 reflect the performance
delivered in the year, as outlined below. A bonus
of 100 per cent of maximum (i.e. 165 per cent
of base salary) has been awarded to each
oftheExecutive Directors. Further details are
shown on page 111. The Committee considers
the level of pay-out is reflective of the overall
strong performance of the Group in the year
and is appropriate.
LTIP awards vesting in respect of the
period ended 30 March 2024
The LTIP Awards granted in 2021 were based
on the three-year performance period from
April 2021 to March 2024 and were subject
toearnings per share (EPS) (50 per cent) and
total shareholder return (TSR) (50 per cent)
targets. In 2023, as explained in detail in our
last Remuneration Committee Report, the
Committee exercised its discretion to substitute
the three-year average growth in RPI over
thefive-year period from 2017 to 2021
(being2.56 per cent) for the UK RPI benchmark.
This reflected the fact that the very significant
increases in inflation over 2021 and 2022 meant
that the inflationary benchmark that would
otherwise apply in relation to Cranswick’s EPS
growth would be far in excess of that anticipated
when the EPS targets for the2021 LTIP were
set and would not result inthe EPS component
vesting, notwithstanding Cranswick’s historical
EPS growth having been very strong.
No adjustment has been made inrelation toEPS
targets for the Executive Directors to reflect
the 6 per cent increase inthe UK corporation
tax rate which came into effect from April 2023,
which has reduced EPS.
Performance over the three-year period
asmeasured against adjusted EPS has been
strong with average annual EPS growth
of7.28per cent and vesting at 46.4 per cent
ofthemaximum in accordance with the revised
targets referred to above. Performance in
relation to TSR measured over a three-month
averaging period, which the Committee
considered an appropriate measure to apply,
has also been strong with the Company being
ranked in the 91
st
percentile of its comparator
Group and, consequently, 100 per cent of the
TSR element of the award has vested this year.
Overall, 73.2 per cent of the maximum award
will vest in August 2024 (i.e. 146.4 per cent
ofsalary) for each Executive Director, versus
60.9per cent of the maximum award which
vested inJuly 2023 (i.e. 121.8 per cent of salary).
This is reflected in the table on page 101.
The Committee considers the level of pay-out
isreflective of the overall performance of the
Group over the three-year performance period
ended 30 March 2024 and is appropriate.
Other than as described above in relation
totheLTIP, the Committee did not consider
itnecessary to exercise its discretion in relation
tothe annual bonus outcome and LTIP outcome
for the Executive Directors and believes that
the measures used to judge performance,
remain appropriate and reflect the performance
of the Group throughout the period under review.
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
106
LTIP award granted during the period
ended 30 March 2024
The Committee also awarded nil-cost share
options under the existing LTIP scheme
toSenior Executives, including the Executive
Directors, during the year. The number
ofshares awarded to each Executive Director
was equivalent to 200 per cent of base salary
based on the market value of the Company’s
shares atthe date of award (1 July 2023).
Vesting will be after a three-year performance
period over which TSR and EPS performance
measures (each accounting for 42.5 per cent
ofthe award) and reduction of emissions,
energy intensity and water intensity performance
measures (each accounting for five per cent
ofthe award) will be assessed. The awards
toExecutive Directors will then be subject
toatwo-year holding period.
Targets for the reduction of emissions, water
intensity and energy intensity were set based
on the Group’s published 2019/20 baseline
performance and are consistent with the
achievement of the Group’s long-term target
ofachieving a 50 per cent reduction in such
measures by 2029/30 (after taking into account
performance achieved to March 2023).
These awards and details of the performance
conditions are set out on pages 124 and 125.
New Remuneration Policy
Cranswick’s new Remuneration Policy is being
proposed against a backdrop of the Group’s
performance having continued to be impressive
and delivering significant value to its
shareholders since our last review in 2021
(including continuing dividend growth,
contributing to 34 years of unbroken dividend
growth), notwithstanding significant economic
challenges faced over the last three years.
When our Remuneration Policy was last
approved, our market capitalisation was
£1.9billion. It is now £2.2 billion representing
anincrease of 15.8 per cent. Our revenue was
£1.9 billion, it is now £2.6 billion representing
anincrease of 36.8 per cent and our adjusted
profit before tax was £129.7 million; it is now
£176.6 million representing an increase
of36.1per cent, which reflect the progress
achieved over the last three years.
Our relentless focus on quality, service,
innovation, and managing our cost base
through an extremely challenging inflationary
cycle, allied to delivering exceptional customer
service, hasunderpinned these results.
Wehave an excellent track record of deploying
capital having invested over £600 million since
2015/16 in new facilities, capacity expansion
andautomation projects underpinned by
anunrelenting focus ondelivering
efficiency improvements.
The Committee believes that Cranswick is now
at a pivot point for transformation and has the
potential to deliver further significant growth
invalue to all its stakeholders. The Committee
believes that the executive team, with the right
motivation, will deliver more. To build on the
considerable experience, expertise and culture
they have nurtured over the years, we are
proposing a revised Policy that will reward
theteam for further performance stretch over
andabove that which has been delivered
todate and in doing so, it is important that
weretain Adam Couch, the CEO, and his team
of Senior Executives.
The Policy has been carefully constructed
tomotivate the team to aim for significant
growth in the Group, whilst maintaining the
returns andperformance they have been
sosuccessful atdelivering to date. The current
market for executives of this calibre is highly
competitive and so we must respond to this
challenge in order to retain our
exceptional team.
Our approach to the new Policy
The changes we are proposing follow a
comprehensive review of all aspects of the
current Policy with the Company’s major
Shareholders and various investor bodies.
Whilst Shareholders were on the whole
supportive ofour current approach to executive
remuneration, Shareholder feedback
emphasised the following:
• The need to retain and recognise the
outstanding performance and contribution
of a very experienced, long standing
executive team, in particular, our CEO,
AdamCouch, taking into account the
competitive market for talent.
• Some differentiation in the incentive
framework between the Executive Directors.
• Using a broader range of metrics in the
annual bonus plan (not simply our adjusted
profit before tax) and the introduction
ofreturn on capital employed (ROCE)
intothe long-term incentive framework.
• Quantum increases where they were
accompanied by additional stretch in targets
designed to incentivise and reward the
unlocking oftransformative growth potential
forthebusiness (whilstretaining our strong
track record fordelivering strong operational,
financial, commercial performance and
appropriately managing risk).
The Committee has been mindful to ensure
that increased quantum is only awarded for
impressive performance against challenging
targets with increased stretch to incentivise
theteam to achieve further growth. At the same
time, tailored, objective individual bonus
measures will also be used to maintain the
disciplines and culture that has served the
Company and its investors well.
Directors’ Remuneration Policy
The key changes proposed to the Policy for
Executive Directors and other considerations
relevant to our overall proposals are
summarised below.
Increase in annual bonus opportunity
accompanied by an increase in the level
ofstretch in the targets: The current Policy
provides for an annual bonus opportunity
ofupto 165 per cent of salary. To incentivise
and reward in year out-performance, we are
proposing to increase the maximum annual
bonus for our CEO to 200 per cent of salary
and to 180 per cent of salary for the other
Executive Directors. This will be combined with
astretch in the performance targets to ensure
that this increase in quantum is accompanied
bya corresponding target increase.
Introduction of Group strategic and/or
individual goals into the annual bonus plan
together with PBT: For 2024/25 it is
anticipated that the proposed initial weighting
on strategic and/or individual goals will be
20per cent of salary for the CEO and 15 per
cent of salary for the other Executive Directors.
It isanticipated that an element of the strategic
targets will be tailored to each Executive
Director’s areas of responsibility and in the case
of the CEO will be linked to the Group’s overall
strategic objectives. In line with the Group’s
existing practice, given the commercial
sensitivity of annual targets, details of these
willbe disclosed inthe Remuneration Report
ona retrospective basis.
Retaining discretion to amend any formulaic
incentives outturn which does not reflect the
Committee’s assessment of overall business
performance: This includes the discretion
toreduce incentives where there has been
afailure of acceptable health and safety
standards, which may include a fatality or very
serious injury, food safety incidents, or animal
welfare failures (or other events which may result
in serious reputational damage to the business).
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
107
THE REMUNERATION COMMITTEE
CONTINUED
No change to the core LTIP quantum of 200
per cent of salary, but change in metrics:
Taking into account the feedback from
Shareholders and to encourage the executive
team to continue to pursue incremental project
investment to consolidate, expand and diversify
operations, we are introducing a ROCE metric
in the LTIP (in substitution for TSR) alongside
the current 42.5 per cent based onEPS and
15per cent on sustainability measures.
The Committee consider this the most
appropriate metric for these purposes to
reward capital deployment and maintaining
astrong investment pipeline and ensuring
ROCE remains above our medium-term
mid-teens target. The changes proposed will
not result in targets being materially more
orless difficult to satisfy and any adjustments
tomitigate the risk that the metric encourages
under investment will not be made as a result
ofgeneral changes in market conditions
or movements.
Additional Exceptional Performance LTIP
award of 100 per cent of salary for the CEO
and 50 per cent of salary for the other
Executive Directors granted annually,
vesting subject to the delivery of exceptional
performance measured over a three-year
performance period: This annual award
istoincentivise and stimulate exceptional
performance (over and above the performance
rewarded under the core LTIP award).
For2024/25, performance will be measured
onrelative TSR against companies in the FTSE
250 Index (excluding investment trusts),
withadditional stretch over and above typical
market practice in relation to vesting thresholds
- vesting of the Exceptional Performance LTIP
award will start from 0 per cent at threshold
(rather than the more usual 25 per cent vesting
at threshold). There will be no vesting of the
Exceptional Performance LTIP if performance
is below upper quartile. Full vesting requires
performance at the 90
th
percentile.
This additional award is proposed for the
current CEO and current Executive Directors.
TheCommittee consider that having all of the
Exceptional Performance LTIP based on
relative TSR:
• Ensures there is an appropriate balance
ofmetrics across the LTIP and Exceptional
Performance LTIP.
• Provides a focus on exceptional operational
performance and strategic execution being
reflected in superior TSR growth compared
to the market.
• Ensures that setting stretch targets for the
Exceptional Performance LTIP does not lead
to unintended outcomes and that there
isalignment between Executive Directors
reward outcomes and shareholder
experience.
Principle-based approach to shareholding
guidelines and bonus deferral: Under the
current Policy for Executive Directors
appointed on or after 21 July 2021 (the date
onwhich the Policy became effective), one-third
ofany bonus earned is deferred into shares
forup to two years. Taking a principle-based
approach toensuring the Policy supports the
attraction(and retention) of high-quality talent,
whilst ensuring that Executive Directors’
interests are aligned with those of Shareholders,
under the new Policy deferral will now only
berequired for allExecutive Directors until they
meet the shareholding guideline (equal to 200
per cent of the Executive Director’s salary).
In line with the current Policy, Chris Aldersley’s
bonus for the year ended 25 March 2023 was
paid partly in cash and partly in an award of
deferred shares. During the course of the year
ended 30 March 2024, the Committee
permitted the early exercise of that award in
consideration for Chris Aldersley agreeing to
continue the deferral of the bonus by
committing to retain for the deferral period a
number of shares equal to the after-tax number
of deferred shares, asdescribed on page 129,
so that his deferral was switched from a gross
(pre-tax) basis tobeing on a net (after-tax) basis.
For the year ended 30 March 2024, the
Committee has agreed that deferral will again
be applied on anet (after-tax) basis.
The core LTIP award will continue to be based
on a three-year performance period and
two-year holding period. Under the new
Policythe holding period will continue to apply
fortwoyears post-employment (other than
inexceptional/compassionate circumstances).
The post-employment shareholding
requirement introduced under the current
Policy will also continue to apply.
We believe this is a proportionate and principle-
based approach that will provide Cranswick
with a competitive edge in attracting and
retaining executive talent whilst still having
aclear emphasis on shareholder alignment
across the arrangements as a whole. This also
reflects that all the current Executive Directors
have exceeded the 200 per cent ofsalary
shareholding guideline with the CEO, CFO
andCCO each having significant shareholdings,
of approximately 10 times salary respectively.
Fixed pay and pension contributions:
Basesalary increases will continue to be at
orbelow thelevel of increase awarded to the
wider workforce. Pension contributions/cash
inlieu ofpension for the Executive Directors’
will continue to be aligned with the wider
workforce at ten per cent of salary.
Impact on total remuneration
Market benchmarking was not the key driver
behind the proposal. As set out above, the key
focus of the proposals is to retain and motivate
a long-standing, collegiate and exceptional
executive team who are key to the future
success and growth potential for Cranswick plc.
It is clear from our discussions with investors
that they are supportive of implementing an
approach that will reward the team for stretch
performance, over and above that which has
been delivered to date.
In finalising the proposals, the Committee
considered a number of market reference points
to ensure that Cranswick remains competitive
in the market and that it can continue to attract
and retain top talent. This is especially
important in our sector where we compare
notonly with UK plc, but with a number
ofinternationally owned and private equity
backed businesses not subject to the same
constraints on pay. A high-level summary of
themarket positioning of the overall packages
under the new Policy compared to UK listed
companies of a similar size and complexity is
outlined below.
• Base salary: Upper end of market competitive
range – reflecting experience and
performance of our CEO, and the
executive team.
• Bonus: Positioned around upper quartile
compared to UK listed FTSE 250 companies
of a similar size – as noted above the increase
in opportunity is accompanied by an increase
in the stretch of targets to incentivise and
reward in year out-performance.
• Core and Exceptional Performance LTIP
award: Positioned around upper quartile
compared to UK listed FTSE 250 companies
of a similar size.
• Total compensation: Positioned around
upper decile versus UK listed FTSE 250
companies of a similar size but only for
delivering upper decile performance.
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
108
LTIP rules renewal, new all-employee
Share Incentive Plan and Articles
amendment
Our current LTIP rules were adopted in 2015
and expire, for the purposes of new grants,
in2025. To coincide with the renewal of the
Policy we will be seeking shareholder approval
for anew LTIP at the 2024 AGM. We are also
committed to our wider workforce having the
opportunity to share in Cranswick’s success,
with reward aligned with the experience
ofShareholders. Alongside our long-running
SAYE scheme, wewill therefore be implementing
a new all-employee Buy AsYou Earn share
incentive plan, for which we will seek shareholder
approval at the 2024 AGM togive us flexibility
as to the source of shares for the satisfaction
of awards.
At the 2024 AGM Shareholders will also be asked
to approve an amendment to the Non-Executive
Director fee cap in the Company’s Articles
ofAssociation taking into account recent
changes inthe size and make-up of the Board.
Salary increases for the year ending
29March 2025
The Committee has awarded Executive Directors
an increase of 5.1 per cent, which is below the
average salary increase (in percentage of salary
terms) awarded to other employees of the Group
of 6.1 per cent.
Following the increase in pay, which will be
applicable from 1 April 2024, the Executive
Directors’ base salaries will be:
Director New Salary
Chris Aldersley £560,200
Mark Bottomley £560,200
Jim Brisby £560,200
Adam Couch £847,400
Director changes
Mark Reckitt retired as Senior Non-Executive
Director at the Company’s AGM on 24 July
2023 and Pam Powell retired as a Non-
Executive Director on 1 September 2023.
Alan Williams was appointed as a Non-
Executive Director following the Company’s
AGM on 24 July 2023 and was appointed Chair
of the Audit Committee and a member of the
Nomination and ESG Committees on the
same date.
Rachel Howarth was appointed as a Non-
Executive Director with effect from 30 April
after the end of the Company’s 2023/24
financial year, and was appointed a member
ofthe Remuneration, Nomination and ESG
Committees on the same date.
Remuneration for the year ended
29 March 2025
Details of the implementation of the Policy for
the year ended 29 March 2025 are disclosed
on pages 112 to 121.
Executive Director pay and the
broader workforce
The Committee recognises that an
understanding of broader workforce pay
andconditions can be helpful in relation to
considering executive pay along with other
relevant factors. The Committee receives
information on the annual salary review across
the Group, gender pay and CEO pay ratios
together with the principles that are applied
inrelation to broader incentive schemes
operated in the Group. The Committee also
considers outcomes in relation to the wider
Senior Management team when considering
outcomes for the Executive Directors.
The Group also operates works committees and
employee surveys to obtain employee feedback
on all areas of the Group’s business and has
appointed Yetunde Hofmann as its designated
Non-Executive Director to enhance existing
engagement methods.
The Executive Directors pensions are aligned
with the wider workforce and I have also
described the continuing actions taken by
theGroup to recognise the difficulties faced
byour employees in the current
financial climate.
CEO pay ratios
The Company aims to provide a competitive
remuneration package which is appropriate to
promote the long-term success of the Company
and applies this policy fairly and consistently
toattract and motivate staff. The Company
considers the CEO median pay ratio is consistent
with the Company’s wider policies on employee
pay, reward and progression and is reflective
ofthe sector that the Company operates in.
Further information is given on page 127.
Shareholder approval and engagement
Ongoing engagement by the Chairman,
ChiefExecutive, Chief Financial Officer and
myself has ensured that key Shareholders have
been regularly updated on progress and
performance throughout the year. As noted
above, the Committee consulted with the
Company’s major Shareholders and various
investor bodies to obtain their views on the
proposed changes to the Remuneration Policy.
We were grateful for the feedback received
from Shareholders during the consultation, and
were pleased that the majority of Shareholders
consulted were supportive of our proposals.
It was clear from our discussions with investors
that they recognise the need to retain and
motivate a long-standing, collegiate and
exceptional executive team, remains imperative
to the future success and growth potential
ofCranswick plc.
We considered the feedback received carefully
and took it into account in our final proposals for
the new Policy. In particular:
• Although shareholders generally supported
the principle of introducing the Exceptional
Performance LTIP award, some shareholders
had a strong preference for this not being
ona one-off basis, which we have reflected
inour final proposals.
• T he in crea se in the a nn ual b on us op po rt unit y
to 200 per cent and combined Core and
Exceptional Performance LTIP award of 300
per cent for the CEO will only apply for our
current CEO, Adam Couch. This recognises
his outstanding performance and contribution
as a very experienced, long-standing CEO
who isinstrumental to the success of the
Group. Should we need to appoint a new
CEO, theuse of this maximum opportunity
will not be automatic and would be considered
on acase-by-casebasis at the discretion
ofthe Committee.
• Similarly, the proposed increase in the annual
bonus opportunity to 180 per cent and
combined Core and Exceptional
Performance LTIP award of 250 per cent will
only apply for all other current Executive
Directors. For a newly appointed Executive
Director (other than theCEO) use of this
maximum opportunity will not be automatic
and would be considered on a case-by-case
basis at the discretion ofthe Committee.
• We also recognised that some shareholders
expressed a preference for bonus deferral to
apply regardless of whether the shareholding
guidelines had been met. However, the
Committee’s view is that introducing bonus
deferral for the current Executive Directors
is not appropriate taking into account that
the CEO, CFO and CCO have significant
shareholdings, of approximately 10 times
salary. We believe linking the requirement
todefer aproportion of the bonus until the
shareholding guideline is met, is a
proportionate approach that will provide
Cranswick with a competitive edge in
attracting and retaining executive talent
whilst still having a clear emphasis on
shareholder alignment across the
arrangements as a whole.
On behalf of the Board, I would like to thank
Shareholders for their continued support.
Should you have any questions on, or would
liketo discuss any further aspect of, our
remuneration strategy I can be contacted
at[email protected].
Liz Barber
Interim Chair of the Remuneration Committee
21 May 2024
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
109
Alignment of the Remuneration Policy with the Code
In determining the new Remuneration Policy, the Committee took into account the principles of clarity, simplicity, risk, predictability, proportionality
andalignment to culture, as set out in the Code.
Principle Commentary
Clarity: remuneration arrangements should be transparent and
promoteeffective engagement with Shareholders and the workforce.
We operate simple variable pay arrangements, which are subject to clear
performance measures aligned with the Group’s strategy and the interests
of all stakeholders.
Simplicity: remuneration structures should avoid complexity and
theirrationale and operation should be easy to understand.
Details of our remuneration arrangements are disclosed clearly and concisely.
Risk: remuneration arrangements should ensure reputational and
otherrisks from excessive rewards, and behavioural risks that can
arisefrom target-based incentive plans, are identified and mitigated.
Both the annual bonus, the core LTIP and the Exceptional Performance LTIP
are subject to malus and clawback provisions. This allows the Committee
tohave appropriate regard to risk considerations.
Annual bonus deferral which applies to Executive Directors until they meet
their respective shareholding guideline, provides longer-term alignment
withShareholders’ interests. The Executive Directors’ current shareholdings
areeach in excess of 200 per cent of salary and provide sufficient alignment
between Executive Director and Shareholder interests in the long-term.
The Committee also has discretion to override formulaic outcomes, which
may not accurately reflect the underlying performance of the Group,
whichincludes health and safety failures, animal welfare failures or other
events which may result in serious reputational damage to the business.
Predictability: the range of possible values of rewards to individual
Directors and other limits or discretions should be identified and
explained at the time of approving the Remuneration Policy.
Details of the range of possible values of rewards and other limits
ordiscretions can be found on pages 113 to 116.
Proportionality: the link between individual awards, the delivery
ofstrategy and the long-term performance of the Company should
beclear. Outcomes should not reward poor performance.
We believe that total remuneration should fairly reflect performance of the
Executive Directors and the Group as a whole, taking into account underlying
performance and shareholder experience.
The Committee considers the approach to wider work-force pay and policies
when determining the Directors’ Remuneration Policy to ensure that it is
appropriate in this context.
Alignment to Culture: incentive schemes should drive behaviours
consistent with Company purpose, values and strategy.
In determining the Remuneration Policy, the Committee was clear that this
should drive the right behaviours, reflect our values and support the
Company purpose and strategy. The Committee will review the remuneration
framework regularly so that it continues to support our strategy.
THE REMUNERATION COMMITTEE
CONTINUED
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
110
Remuneration in 2024
The Committee ensures that executive remuneration targets are stretching, aligned with business
strategy to drive long-term Shareholder value and reflect the performance of the business during
the period under review. Executive Directors’ rewards (excluding base salary and benefits)
aretwo-fold: short-term by way of a cash bonus (part of which is deferred into shares in the case
ofChrisAldersley); and longer-term by way of share awards under the Company’s Long-Term
IncentivePlan (LTIP).
Adam Couch Mark Bottomley Jim Brisby Chris Aldersley
Salary 802 530 530 530
Benefits 41 35 34 37
Pension 85 56 56 56
Bonus 1,323 875 875 875
LTIP 1,046 692 692 692
SAYE 2 4 11 4
Total 3,299 2,192 2,198 2,194
Outcomes
2021 LTIP
2021 LTIP vesting by reference to performance to the end of 2023/24:
Measure Threshold Maximum Actual Vesting
EPS (average annual growth) 5.56% 11.56% 7. 28% 46.4%
TSR 50
th
percentile 90
th
percentile 91
st
percentile 100%
2024 bonuses
Measure Threshold Maximum** Actual
Adjusted Group profit before tax* £143.2m £161.9m £181.1m
Bonus payable (per cent of Maximum) 20% 100% 100%
* Adjusted Group profit before tax targets are stated before deduction of bonuses paid to Executive Directors, associated employers
NI and non-trading items.
** Maximum bonus represents 165 per cent of relevant Executive Directors base salary.
Remuneration for 2025
Salary 5.1 per cent increase to Directors’ salaries which is below the
average salary increase awarded (in percentage of salary terms)
awarded to other employees of the Group of 6.1 per cent.
Bonus Subject to Shareholder approval, opportunity increased
to200per cent of salary for CEO and 180 per cent of salary
forother Executive Directors. Targets commensurate with
theincrease in opportunity and incorporation of new strategic/
individual objectives accounting for 20 per cent of salary
forthe Chief Executive and 15 per cent of salary for the other
Executive Directors. All Executive Directors have met their
shareholding guideline therefore mandatory bonus deferral
does not apply.
Core LTIP awards Subject to Shareholder approval, opportunity at 200 per cent
of salary for 2024/25.
Targets changed from previous year to 42.5 per cent EPS,
42.5 per cent ROCE, 15 per cent ESG.
Exceptional Performance
LTIPaward
Subject to Shareholder approval, opportunity at 100 per cent
ofsalary for 2024/25 for Chief Executive and 50percent
ofsalary for other Executive Directors.
Stretching relative TSR target against the FTSE 250 Index
(excluding investment trusts), over a three-year period.
REMUNERATION AT A GLANCE
Remuneration at a glance
Our performance during the year
Like-for-like revenue increase to £2,591.7m
+
11.6%
Sha
re price increase to 4,096p
at 30 March 2024
+
35.9%
Adjusted profit before tax
£
176.6m
Adjusted earnings per share
2
42.8p
Targets for 2023/24
Bonus
Adjusted profit before tax
1
00%
LTIP
Relative TSR
50%
5
0%
of total votes cast in favour of the
Remuneration Committee's Report
at last year's AGM
Read more:
see page 131 for more details
c
.90%
EPS
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
111
This part of the Directors’ Remuneration Report sets out the Directors’ Remuneration Policy (the ‘Policy’) which, subject to Shareholder approval
atthe2024 AGM, shall take binding effect from the close of that meeting. A summary of the proposed changes to the policy is set out in the
Remuneration Committee Interim Chair’s statement on pages 105 to 109.
Illustration of Application of Remuneration Policy for 2024/25
The following charts illustrate the potential pay opportunities for the Executive Directors under three different performance scenarios for the year
ending 29 March 2025. The charts show the split of remuneration between fixed pay, annual bonus and long-term incentive pay on the basis of minimum
remuneration, remuneration receivable for performance in line with Cranswick’s expectations, maximum remuneration, and maximum remuneration
assuming a 50 per cent increase in the Company’s share price for the purpose of the long-term incentive elements. In illustrating the potential award,
thefollowing assumptions have been made:
Fixed pay Annual Bonus LTI P Exceptional Performance LTIP
Minimum performance
Base salary effective at
1 April 2024, employer
pension contributions at
10per cent ofbase salary
andbenefits disclosed in the
single figure table for the
yearended 30March 2024
No bonus No LTIP vesting
No Exceptional
Performance LTIP vesting
Performance in line
with expectations
Bonus equal to 50 per cent of the
opportunity (i.e. 100 per cent of
salary for the CEO and 90 per cent
of salary for other Executive
Directors)
LTIP vests as to 50 per
cent of the maximum
award (i.e. 100 per cent
of salary)
No Exceptional
Performance LTIP vesting
Maximum performance
Bonus equal to 200 per cent of
salary isearned for the CEO and
180 per cent of salary for other
Executive Directors
LTIP vests in full
(200per cent of salary)
Exceptional Performance
LTIP vests in full, 100 per
cent of salary for CEO and
50 per cent of salary for
other Executive Directors
Maximum
performance plus
shareprice increase
Bonus equal to 200 per cent of
salary isearned for the CEO and
180 per cent of salary for other
Executive Directors
LTIP vests in full
(200per cent of salary)
plus an assumed 50 per
cent increase in the
share price
Exceptional Performance
LTIP vests in full, 100 per
cent of salary for CEO and
50 per cent of salary for
other Executive Directors
plus an assumed 50 per
cent increase in share price
REMUNERATION POLICY
3,760
3,059
1,715
651
4,000
4,500
5,000
5,500
6,000
6,500
3,500
3,000
2,500
2,000
1,500
1,000
500
0
+50% SP Maximum On Target Fixed +50% SP Maximum On Target Fixed +50% SP Maximum On Target Fixed +50% SP Maximum On Target Fixed
Adam Couch Chris Aldersley Jim Brisby Mark Bottomley
Fixed Bonus LTIP Exceptional Performance LTIP
6,481
5,210
2,667
973
15% 19%
36%
100%
100%
100%
100%
3,762
3,061
1,717
653
3,759
3,058
1,714
650
11%
37%
33%
11%
9%
27%
11%
37%
33%
27% 33%
29%
17% 21%
38%
45%
32%
45%
17% 21%
33%
38%
37%
29%
33%
17% 21% 38%
29%
33% 27%
45%
9%
20%
17%
39%
32%
26% 32%
32%
9%
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
112
Our Remuneration Policy is principally designed to align the interests of Executive Directors and Senior Executives with the Company’s strategic vision
and the creation of sustainable long-term value for our stakeholders without encouraging excessive levels of risk taking. The Policy is intended to
remunerate our Executive Directors competitively and appropriately for effective delivery of this and allows them to share in this success and the value
delivered to Shareholders. The principles and values that underpin the remuneration strategy are applied on a consistent basis for all Group employees.
It is the Group’s policy to reward all employees fairly, responsibly and by reference to local market practices, by providing an appropriate balance
between fixed and variable remuneration.
The remuneration package is in two parts, to provide competitive total remuneration:
• a non-performance part represented by fixed remuneration (basic salary, pension and benefits); and
• a significant performance-related element in the form of an annual bonus and long-term share-based awards.
Proposed Changes to the Remuneration Policy
The key differences between the Policy and the Remuneration Policy approved at the Company’s 2021 AGM are:
• An increase in the maximum annual bonus opportunity from 165 per cent of salary to 200 per cent of salary for the CEO and to 180 per cent of salary
for any other Executive Director, although it should be noted that these are the opportunities under the new Policy for our current Executive
Directors and would not automatically be applied to any Executive Director appointed in the future. They would only be used at the discretion of the
Committee. The increase in opportunity is being accompanied by an increase in the stretch of targets to incentivise and reward in year out-
performance.
• The introduction of an enhanced ‘Exceptional Performance’ LTIP, vesting subject to the delivery of exceptional performance measured over
athree-year performance period. The maximum annual award is 100 per cent of salary for the CEO and 50 per cent of salary for any other Executive
Director, which are the award levels under the new Policy for our current Executive Directors but which would not automatically be applied to any
Executive Director appointed in the future. This is designed to incentivise and reward unlocking the transformative growth potential for the business
(whilst retaining our strong track record for delivering strong operational, financial, and commercial performance and appropriately managing risk).
• Under the Remuneration Policy approved at the 2021 AGM, Executive Directors appointed on or after 26 July 2021 (the date on which that policy
became effective), are required to defer one-third of any bonus earned into shares for up to two years. Under that policy approved in 2021, bonus
deferral does not apply to Executive Directors appointed before 26 July 2021. Under the new Policy it is proposed that the deferral of one third
ofanyearned bonus will apply to any Executive Director until they meet the shareholding guideline (200 per cent of salary). We believe linking the
requirement to defer a proportion of the bonus until the shareholding guideline in met, is a proportionate approach that will provide Cranswick with
acompetitive edge in attracting and retaining executive talent whilst still having a clear emphasis on shareholder alignment across the arrangements
as a whole. The Committee’s view is that introducing bonus deferral for the current Executive Directors is not appropriate taking into account that
theCEO, CFO and CCO have significant shareholdings, approximately 10x salary respectively. The COO (who was appointed to the Board post
21 July 2021) also has a shareholding in excess of 2x salary.
• Recovery provisions (both malus and clawback) will continue to apply to the annual bonus, Core LTIP and Exceptional Performance LTIP. The Core
and Exceptional Performance LTIP will continue to be based on a three-year performance period and two-year holding period. Under the new Policy
the holding period will continue apply for two years post-employment (other than in exceptional/compassionate circumstances). The post-
employment shareholding requirement introduced under the 2021 Policy will also continue to apply.
• Retaining the Committee’s discretion to amend formulaic outputs which do not reflect the Committee’s assessment of overall business performance,
but specifying that this includes the ability for the Committee to exercise downward discretion when there has been a failure of acceptable health
andsafety standards, which may include a fatality or very serious injury, food safety incidents, or animal welfare failures (or other events which may
result inserious reputational damage).
• Addition of the new all-employee Buy As You Earn (BAYE) share incentive plan which is referred to in the Interim Committee Chair’s letter and which
isavailable to the Executive Directors on the same basis as to all other eligible employees. Although we currently intend only to operate the BAYE
onthe basis of Partnership Shares (acquired by participants from their remuneration) and Matching Shares awarded on a 1 Matching Share for every
8 Partnership Shares basis, the BAYE as adopted includes all of the permitted elements which are, therefore, referred to in the Policy.
Further information in relation to these changes can be found in the Interim Committee Chair’s letter on pages 105 to 109.
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
113
The details of individual components of the remuneration package are set out below:
Purpose and link
to strategy Operation Performance metrics Maximum entitlement
Base Salary
To provide a market
competitive base
salaryto attract and
retain executives.
Base salaries are ordinarily reviewed annually
taking into account a number of factors
including (but not limited to):
• the individual’s skills, experience
and responsibilities;
• pay increases within the Group more
generally; and
• per formance, Group profitability
andprevailing market conditions.
Any changes will usually take effect
from 1 April.
Whilst no formal
performance conditions
apply, anindividual’s
performance in role
istaken into account
indetermining any
salary increase.
Whilst there is no maximum salary, increases will
normally be within the range of salary increases
awarded (in percentage of salary terms) to other
employees in the Group.
However, higher increases may be awarded
inappropriate circumstances, such as:
• an increase in scope of the role or the
individual’s responsibilities;
• where an individual has been appointed
totheBoard at a lower than typical market
salary to allow for growth in the role, in which
case larger increases may be awarded to
move salary positioning to a typical market
level asthe individual gains experience;
• change in size and complexity of the Group;
and/or
• significant market movement.
Such increases may be implemented over
suchtime period as the Committee deems
appropriate.
Pension
To provide a framework
to save for retirement.
Executive Directors are entitled to
non-contributory membership of the Group’s
defined contribution pension scheme.
Alternatively, at their option, Executive
Directors may receive a cash payment in lieu
ofpension contribution, subject to the normal
statutory deductions (or a combination
thereof).
Pension contributions may also be made
inlieuofsalary.
N/A The maximum Company contribution or cash
payment in lieu will not exceed the percentage
rateavailable to the majority of the workforce
asdetermined by the Committee
(currently 10 percent of salary).
Benefits
To provide market
competitive benefits
aspart of the
remuneration package.
Market competitive benefits principally
comprise health insurance (which may include
coverage for the director’s spouse/partner
and dependent children), life insurance,
income protection insurance, personal tax
advice, pension advice and Company car
allowance or the provision of aCompany car
andrunning costs.
Additional benefits might be provided from
time-to-time if the Committee decides
payment of such benefits is appropriate.
Reimbursed expenses may include a gross-up
to reflect anytax or social security due in
respect of thereimbursement.
Benefits are not pensionable.
N/A Whilst the Committee has not set an absolute
maximum on the level of benefits Executive
Directors may receive, the value is set at a
levelwhich the Committee considers to be
appropriately positioned, taking into account
relevant market levels based on the nature
andlocation of the role and individual
circumstances.
REMUNERATION POLICY
CONTINUED
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
114
Purpose and link
to strategy Operation Performance metrics Maximum entitlement
Annual bonus
To incentivise and
reward for performance
in the year against
targets linked tothe
delivery of the
Company’s strategic
priorities.
Where deferral applies,
this provides direct
alignment to
Shareholders’ interests.
Measures and targets are reviewed annually
andany pay-out is determined by the
Committee after the year end, based
onperformance against targets set for
thefinancialperiod.
The Committee has discretion to amend
thepay-out as referred to on page 107.
If an Executive Director has met, as
determinedby the Committee, the In-Service
Shareholding Guideline referred to below
thistable, thewholeof any bonus earned
maybe paid in cash.
If an Executive Director has not met the
In-Service Shareholding Guideline, one-third
ofany bonus earned will be deferred into
sharesfor up to two years and the balance
ofthebonus earned will be paid in cash.
Deferralofany bonus is subject to
ademinimislimit of £10,000.
A greater proportion of the bonus may
bedeferred with the agreement of the
ExecutiveDirector.
Additional shares may be awarded in respect
ofshares subject to deferred bonus awards
toreflect the value of dividends which would
have been paid on those shares during the
period from grant to the release date (this
payment may assume that dividends had been
reinvested in shares on a cumulative basis).
Bonuses are non-pensionable.
Recovery provisions apply as referred to below.
The bonus will
bebasedon the
achievement oftargets
with stretching
performance measures
and respective
weightings(where
morethan onemeasure
is used) set each year
dependent on the
Group’s strategic
priorities. The majority
of thebonus will be
based on financial
measures.
The maximum opportunity is up to 200 per cent
of base salary for the CEO and up to
180percent of base salary for any other
Executive Director.
Subject to the Committee’s discretion
tooverride formulaic outcomes in respect
offinancial measures, the bonus for achieving
threshold performance is 20 per cent of
maximum opportunity, rising up to 50 per cent
ofthemaximum for on-target performance.
Subject to the Committee’s discretion to override
formulaic outcomes, vesting ofthebonus in
respect of non-financial measures orindividual
objectives will be between0 per centand 100
per cent based on the Committee’s assessment
ofthe extent to which the relevant metric or
objective has been met.
Share-based awards
A Save As You Earn
(SAYE) share scheme
is available to all
eligibleemployees.
Subject to approval by the Board, SAYE options
are made available to eligible staff, including
Executive Directors, in accordance with
thescheme rules which reflect the applicable
legislation with an option exercise price which
may be set at a discount tothe share price when
the option is offered.
N/A The limit on monthly savings and maximum
discount that may be applied in setting the
exercise price will be determined in accordance
with the applicable tax legislation from time-to-
time and willbe the same for the Executive
Directors as for other eligible employees. At the
date of approval of this Policy the maximum saving
is £500 per month and the maximum discount
is20 per cent.
A Buy As You Earn
(BAYE) share incentive
plan is available to all
eligible employees.
Under the BAYE, eligible staff, including
Executive Directors, may acquire
‘PartnershipShares’ from their remuneration,
be awarded ‘Matching Shares’ in respect
ofPartnership Shares they acquire
andbeawarded ‘Free Shares’.
N/A The maximum value of Partnership Shares that
may be acquired, the maximum Matching Shares
ratio and the maximum value of Free Shares that
may be awarded will be determined in line with
the applicable tax legislation from time-to-time
and will be the same for the Executive Directors
asfor all other eligible employees. At the date
ofapproval of this Policy, the maximum value
ofPartnership Shares that may be acquired
is£1,800 per year, the maximum Matching Share
to Partnership Share ratio is 2:1 and the maximum
value of Free Shares that may be awarded
is£3,600 per year.
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
115
REMUNERATION POLICY
CONTINUED
Purpose and link
to strategy Operation Performance metrics Maximum entitlement
Core LTIP and Exceptional Performance LTIP
Core Long-Term Incentive Plan
(LTIP) awards and Exceptional
Performance LTIP awards
provide a clear link between
theremuneration of Executive
Directors and the creation
ofvalue for Shareholders
byrewarding the achievement
oflonger-term strategic
priorities aligned to Shareholder
interests, with exceptionally
stretching performance targets
applying to Exceptional
Performance LTIP awards.
Core LTIP awards and Exceptional
Performance LTIP awards may take
theform of nil (or nominal) cost share
options or conditional awards.
Awards will usually vest following
theassessment of the applicable
performance measures. Awards held
by Executive Directors are then
subject to a two year holding period
which may be structured as either: (1)
the Executive Director being entitled
to acquire the shares once vested,
but,other than as regards sales to
cover taxor any exercise price, being
prevented from selling shares until the
end of theholding period; or (2) the
Executive Director being prevented
from acquiring shares until the end of
the holding period. If a holding period
isstructured on the latter basis,
additional shares may be awarded in
respect of vested shares to reflect the
value of dividends paid on shares from
the start of the holding period until
thedate on which the Executive
Director is entitled to acquire shares
(this payment may assume that
dividends have been reinvested
inshares on a cumulative basis).
The Committee has discretion
toamend pay-outs as referred to
onpage107.
Recovery provisions apply as
referredto on page 117.
The Committee may at its discretion
structure awards as qualifying LTIP
awards, consisting of a tax qualifying
CSOP option with an exercise price
equal to the market value of a share
atthe date of grant and an ordinary
nil-cost LTIP award, with the ordinary
award scaled back at exercise to
takeaccount of any gain made on
exercise of the CSOP option.
Theprovisions ofthis Policy will
applyto the CSOP element of any
qualifying LTIP award to the extent
permitted by the applicable tax
legislation and HMRC practice.
Core LTIP awards
Performance measures for Core LTIP
awards are typically assessed over a
period of three years and will include
financial measures (which may include,
but are not limited to EPS growth
andreturn measures) and may include
strategic/individual performance
measures (which may include ESG
measures). At least 80 per cent of the
award will be subject to performance
measures based on financial measures.
Where more than one measure is used,
the weightings will be determined
bythe Committee taking into account
the Company’s key strategic priorities.
Theperformance measures for the
2024/25 Core LTIP awards are set out
onpage 130.
Subject to the Committee’s discretion
to override formulaic outturns,
threshold vesting will not be at more
than 25 per cent of maximum. Core
LTIP awards vest in full for maximum
performance.
Exceptional Performance LTIPawards
Performance measures for Exceptional
Performance LTIP awards are typically
assessed over a period of three years
and will be based on financial and/or
TSR measures. Where more than one
measure is used, the weightings will
bedetermined by the Committee
taking into account the Company’s key
strategic priorities. The performance
measure for the 2024/25 Exceptional
Performance LTIP awards is set out
onpage 131.
Subject to the Committee’s discretion
to override formulaic outturns,
therewill be no vesting for performance
atorbelow threshold, with performance
increasing from 0 per cent at threshold
to 100 per cent for maximum
performance.
Core LTIP awards
The maximum Core LTIP
awardin respect of any
financialyear isup to 200 per
cent of base salary.
Exceptional Performance
LTIPawards
The maximum Exceptional
Performance LTIP award in
respect of any financial year
isupto 100 per cent of base
salaryfor the CEO and up to
50per cent of base salary for
anyother Executive Director.
Qualifying LTIP
If a qualifying LTIP award is
granted, the value of shares
subject to the CSOP option
willnot count towards the limits
referred to above, reflecting
theprovisions for scale back
ofthe ordinary LTIP award.
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
116
Notes to the Remuneration Policy table
Adjustments and the use of Committee discretion
The Committee has discretion to amend pay-outs under the annual bonus, Core LTIP, and Exceptional Performance LTIP if it considers that the formulaic
output does not reflect its assessment of performance, is not appropriate in the context of circumstances that were unexpected or unforeseen at
thestart of the relevant year or date of grant, or is not appropriate in the context of other factors considered relevant by the Committee which includes
the ability to exercise downward discretion where there has been a failure of acceptable health and safety standards, which may include a fatality or very
serious injury, food safety incidents, or animal welfare failures (or other events which may result in serious reputational damage to the business).
Recovery provisions
The annual bonus, Core LTIP and Exceptional Performance LTIP are subject to recovery provisions as set out below.
Malus provisions apply which enable the Committee to determine before the payment of an annual bonus or the vesting of a Core LTIP or Exceptional
Performance LTIP award, that the bonus opportunity or Core LTIP or Exceptional Performance LTIP award may be cancelled or reduced.
Clawback provisions apply which enable the Committee to determine for up to two years following the payment of a cash bonus or the vesting
ofaCoreLTIP or Exceptional Performance LTIP award, that the amount of the bonus paid may be recovered (and any deferred bonus award
maybereduced or cancelled, or recovery may be applied to it if it has been exercised) and the Core LTIP or Exceptional Performance LTIP award
maybecancelled or reduced (if it has not been exercised) or recovery may be applied to it (if it has been exercised).
The malus and clawback provisions may be applied in the event of material misstatement, error in assessing a performance condition or in the
information or assumptions on which a bonus award, Core LTIP or Exceptional Performance LTIP was awarded, material misconduct by a participant,
material risk management failure, serious reputational damage or material corporate failure.
Differences in policy on remuneration of Executive Directors from policy on remuneration of employees generally
The Company aims to provide a remuneration package that is market competitive and which reflects responsibility and role scope. Accordingly Executive
Directors have a greater weighting towards long-term and performance-based remuneration.
Shareholding requirements
To align the interests of Executive Directors with those of Shareholders, the Committee has adopted shareholding guidelines which apply
in-employment and after cessation of employment. The Committee retains discretion to disapply or vary these provisions in exceptional circumstances.
Purpose and link
to strategy Operation Performance metrics Maximum entitlement
Fees and benefits payable to Non-Executive Directors
To pay fees at a level
thatreflects market
conditionsand are sufficient
toattract and retain
individualsof the
appropriatecalibre.
The fees of the Non-Executive
Directors are determined by the
Boardand reviewed periodically.
The fees of the Non-Executive Chair
are determined by the Committee and
reviewed periodically.
Non-Executive Directors are paid
abasic fee withadditional fees paid
forother Board responsibilities
orrolesortime commitment, such
aschairing Committees, for holding
therole ofSenior Independent
DirectororDesignated Non-Executive
Directorwith responsibility for
engaging with the workforce.
Non-Executive Directors are not
eligible to participate in any of the
Group’s share schemes, incentive
schemes or pension schemes.
Non-Executive Directors may
beeligible to receive benefits such
astravel costs and other reasonable
expenses. Reimbursed expenses
mayinclude a gross-up to reflect
anytaxorsocial security due in
respectof thereimbursement.
N/A Fees are set taking into account
the responsibilities of the
roleand the expected time
commitment.
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
117
REMUNERATION POLICY
CONTINUED
In-Service Shareholding Guideline
During employment, each Executive Director is required to build and maintain a shareholding with a value of at least 200 per cent of their annual
basesalary. The Executive Director must retain shares acquired through the Core LTIP, Exceptional Performance LTIP and any deferred bonus award
(after sales to cover tax, any exercise price and costs) until the required level of holding has been achieved.
Where a Core LTIP award or Exceptional Performance LTIP award is subject to a holding period on the basis that the Executive Director is prevented
from acquiring shares until the end of the holding period, the vested shares count towards the shareholding requirement, on a net of assumed tax basis.
Shares subject to a deferred bonus award count towards the shareholding requirement, on a net of assumed tax basis.
Shareholding requirement post-employment
Shares are subject to the post-employment shareholding requirement only if they are acquired from Core LTIP awards, Exceptional Performance
LTIPawards or deferred bonus awards granted after 1 April 2021. Shares purchased by an Executive Director are not subject to this requirement.
For the first 12 months after cessation of employment (or, if the Committee so determines, after the Executive Director has stepped down from the
Board), the Executive Director must retain such of their relevant shares as have a value at cessation equal to 200 per cent of base salary (or if less all
oftheir relevant shares) and for the following 12 months, retain such of their relevant shares as have a value at cessation equal to 100 per cent of base
salary (or if less all of their relevant shares).
Annual bonus performance targets
The structure of the performance targets applicable to annual bonus awards to be made in a particular year will ordinarily be set out in the
implementation section of the Annual Report on Remuneration which precedes that year rather than in this Remuneration Policy report. The actual
targets will not be disclosed in advance as they are considered to be commercially sensitive information; however, the details will be disclosed
retrospectively, provided they are not considered commercially sensitive at that time.
Historically, Group profit before tax, as adjusted for acquisitions, disposals and other non-trading items, was the sole metric against which the annual
bonus award was assessed. This Policy has flexibility for the Committee to introduce other financial and/or strategic measures, if deemed necessary,
toprovide an appropriately balanced and stretching incentive. It is proposed that for 2024/25 strategic measures will be introduced into the annual
bonus tailored to each Executive Director’s area of responsibility to ensure diversification of metrics and incentivisation of other priorities. Such metrics
will ordinarily be disclosed in the implementation section.
Core LTIP measures
At least 80 per cent of the Core LTIP award will be based on financial measures, with the chosen measures determined by the Committee taking into
account strategic priorities. The Policy provides flexibility for up to 20 per cent of the Core LTIP award to be based on strategic/individual performance
measures (which may include ESG measures).
For 2025, the Core LTIP award will be based on EPS (42.5 per cent weighting), ROCE (42.5 per cent weighting) and sustainability targets (15 per cent
weighting). The introduction of ROCE reflects clear consensus from shareholder feedback that a metric linked to value creation and a strong investment
pipeline to ensure our ROCE percentage remains above our medium-term mid-teens target should be incorporated into the long-term
incentive framework.
Exceptional Performance LTIP measures
The Exceptional Performance LTIP award will be based on financial and/or TSR measures, with the chosen measures determined by the Committee
taking into account strategic priorities. The performance targets set require a genuinely exceptional level of performance to be delivered, requiring
transformational growth significantly in excess of internal and external expectations.
For 2025, the Exceptional Performance LTIP award will be based on Relative TSR against companies in the FTSE 250 Index (excluding investment
trusts) with additional stretch over and above typical market practice (i.e. no vesting of the Exceptional Performance award for performance at or below
upper quartile performance). This ensures there is an appropriate balance of metrics across the Core LTIP and the Exceptional Performance LTIP and
provides a focus on exceptional operational performance and strategic execution being reflected in superior TSR growth compared to the market.
Ability to vary or substitute performance measures or targets
The Committee may vary or substitute any performance measure or target where it considers it would be appropriate to do so (for example, to reflect
achange in strategy, a material acquisition and/or divestment of a Group business, and/or a significant investment or a change in prevailing market
conditions), provided that any such variation is fair and reasonable and, in the opinion of the Committee, would not make the measure materially less
demanding. The Committee will assess performance on a fair and consistent basis from year-to-year. If the Committee was to make such a variation
orsubstitution, an explanation would be given in the next Directors’ Remuneration Report.
Operation of share plans
The Committee retains discretion to operate the Company’s share plans in accordance with the plan rules, including the ability to adjust the number
ofshares subject to awards in the event of a variation in share capital, or other relevant event and to settle awards in cash or to grant awards as rights
tocash payments calculated by reference to a notional number of shares. Although the Committee would only settle an Executive Directors’ award in
cash in appropriate circumstances, such as where there is a regulatory restriction on the delivery of shares or as regards the tax liability arising in respect
of the award.
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
118
Recruitment remuneration policy
When appointing a new Executive Director, the Committee will typically align the remuneration package with the above Policy.
When determining appropriate remuneration arrangements, the Committee may include other elements of pay which it considers are appropriate.
However, this discretion is capped and is subject to the limits referred to below.
• Base salary will be set at a level appropriate to the role and the experience of the Executive Director being appointed. This may include agreement
onfuture increases up to a market rate, in line with increased experience and/or responsibilities, subject to good performance, where it is
considered appropriate.
• Pension will only be provided in line with the above Policy.
• The Committee will not offer non-performance-related incentive payments (for example a ‘guaranteed sign-on bonus’).
• Other elements may be included in the following circumstances:
– an interim appointment being made to fill an Executive Director role on a short-term basis;
– if exceptional circumstances require that the Chair or any other Non-Executive Director takes on an executive function on a short-term basis;
– if an Executive Director is recruited at a time in the year when it would be inappropriate to provide a bonus or long-term incentive award for that year
asthere would not be sufficient time to assess performance. Subject to the limit on variable remuneration set out below, the quantum in respect ofthe
months employed during the year may be transferred to the subsequent year so that reward is provided on a fair and appropriate basis; or
– if the Director will be required to relocate in order to take up the position, it is the Company’s policy to allow reasonable relocation, travel and
subsistence payments. Any such payments will be at the discretion of the Committee.
• The Committee may also alter the performance measures, performance period, vesting period, deferral period and holding period of the bonus,
CoreLTIP or any Exceptional Performance LTIP, subject, where relevant, to the plan rules, if the Committee determines that the circumstances
oftherecruitment merit such alteration. The rationale will be clearly explained in the next Directors’ Remuneration Report.
• The normal maximum level of variable remuneration which may be granted in respect of a year (excluding ‘buyout’ awards as referred to below)
isupto500 per cent of salary for a new CEO (assuming an annual bonus opportunity of up to 200 per cent of salary, a Core LTIP of up to 200 per cent
of salary and an Exceptional Performance LTIP of up to 100 per cent of salary) and up to 430 per cent for any other Executive Director (assuming
anannual bonus opportunity of up to 180 per cent of salary, a Core LTIP of up to 200 per cent of salary and an Exceptional Performance LTIP of up
to50per cent of salary). The award of bonus opportunities and Exceptional Performance LTIP awards up to the maxima permitted will not be
automatic and would be considered on a case-by-case basis.
The Committee may make payments or awards in respect of appointing an Executive Director to ‘buyout’ remuneration arrangements forfeited
onleaving their previous employment or engagement. In doing so, the Committee will take into account relevant factors including any performance
conditions attached to the forfeited arrangements and the time over which they would have vested. The Committee will generally seek to structure
‘buyout’ awards or payments on a comparable basis to the remuneration arrangements forfeited. Any such payments or awards are excluded from
themaximum level of variable remuneration referred to above. ‘Buyout’ awards will ordinarily be granted on the basis that they are subject to forfeiture
or‘clawback’ in the event of departure within 12 months of joining, although the Committee will retain discretion not to apply forfeiture or clawback
inappropriate circumstances.
Any share awards referred to in this section will be granted as far as possible under the Company’s share plans. If necessary and subject to the limits
referred to above, recruitment awards may be granted outside of these plans as permitted under the Listing Rules which will allow for the grant
ofawards to facilitate, in unusual circumstances, the recruitment of an Executive Director.
Where a position is filled internally, any ongoing remuneration obligations or outstanding variable pay elements shall be allowed to continue
inaccordance with their terms.
Fees payable to a newly appointed Chair or Non-Executive Director will be in line with the policy in place at the time of appointment.
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REMUNERATION POLICY
CONTINUED
Policy on payment for loss of office
Individual Director’s eligibility for the various elements of remuneration is set out below.
Provision Treatment upon loss of office
Fixed remuneration Salary/fees, benefits and pension contributions/salary supplement will be paid to the date of termination. The Company may
make a payment in lieu of notice at any time after notice has been given by either the Company or the Director. This payment
would include basic salary for the unexpired period of notice and may also include benefits (including pension contributions
orapplicable salary supplement or contribution in lieu of salary) for that period. Alternatively, benefits may continue to be
provided for the duration of the notice period that would otherwise have applied. In appropriate circumstances, the Committee
may permit the continuation of benefits such as health insurance for a reasonable period following cessation of employment.
Annual Bonus This will be reviewed on an individual basis and the decision whether or not to award a bonus in full or in part will be dependent
upon a number of factors including the circumstances of their departure and their contribution to the business during the
bonus period in question such that any bonus will be paid only in circumstances that the Committee considers are ‘good leaver’
circumstances. Any bonus payment would typically be pro-rated for time in service to termination and paid at the usual time
(although the Committee retains discretion to pay the bonus earlier in appropriate circumstances) and to vary the application
of (or disapply) time-based pro-rating. Where bonus deferral would otherwise apply, the Committee may permit the payment
of a bonus wholly in cash, although would do so only in circumstances that in the opinion of the Committee amount to
compassionate ‘good leaver’ circumstances.
Any outstanding deferred bonus awards would typically continue (other than in the event of summary dismissal where
theentitlement would lapse) and vest at the originally anticipated date, although the Committee retains discretion to release
any such award at the date of cessation or at an alternative date before the originally anticipated date.
Core LTIP and
Exceptional
Performance LTIP
Unvested awards
Unvested Core LTIP and Exceptional Performance LTIP awards will lapse on cessation of employment, unless cessation is as
aresult of death, injury, ill health, disability, redundancy, retirement with the agreement of the Company or other circumstances
at the discretion of the Committee. In these ‘good leaver’ scenarios, awards will usually vest at the normal vesting date subject
to the satisfaction of the performance conditions and, unless the Committee determines otherwise, a pro-rata reduction to
reflect the proportion of the vesting or performance period that has elapsed at the date of cessation. The Committee retains
discretion to vest awards early (and to assess performance conditions early where relevant) and to waive or vary the time based
pro-rating reduction.
The holding period would typically apply until the earlier of its originally anticipated end date and the second anniversary
of the date on which the Executive Director ceased employment, unless the vesting was two years or more after cessation
ofemployment in which case no holding period would apply. The Committee has discretion to vary the application of the
holding period in exceptional and compassionate circumstances.
Awards in a Holding Period
If an Executive Director ceases employment during the holding period relating to a Core LTIP award or an Exceptional
Performance LTIP award, the holding period will ordinarily continue to apply, although the Committee has discretion to bring
it to an end earlier in exceptional and compassionate circumstances.
Other payments In appropriate circumstances, payments may also be made in respect of accrued holiday pay, and outplacement
and legal fees.
Options under the SAYE scheme and awards under the BAYE will vest on cessation in accordance with the plan rules,
whichdonot allow for discretionary treatment.
Change of control In the event of a change of control, unvested Core LTIP awards and unvested Exceptional Performance LTIP awards will
bereleased to the extent determined by the Committee taking into account the relevant performance conditions and,
unlessthe Committee determines otherwise, the extent of vesting so determined shall be reduced to reflect the proportion
ofthe vesting or performance period that has elapsed. In the event of a change of control during the holding period relating
toa Core LTIP award or an Exceptional Performance LTIP award, that holding period shall come to an end.
Deferred bonus awards will vest in full on a change of control.
Options under the SAYE scheme and awards under the BAYE will vest on a change of control.
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Where appropriate the Committee would have regard to the departing Executive Director’s duty to mitigate loss. There are no express provisions
withinthe Director’s service contracts for the payment of compensation or liquidated damages on termination of employment.
Where a ‘buyout’ or other award is made, the leaver provisions would be determined at the time of the award.
The Committee reserves the right to make additional exit payments where such payments are made in good faith in discharge of an existing legal
obligation (or by way of damages for breach of such an obligation) or by way of settlement or compromise of any claim arising in connection with
thetermination of a Director’s office or employment.
The Non-Executive Directors are not entitled to compensation on termination of their appointment in excess of their outstanding fee entitlement.
Service contracts
The Committee’s current policy is not to enter into employment contracts with any element of notice period in excess of one year. Accordingly,
eachofthe following Executive Directors has a one year rolling contract: Adam Couch commencing 1 May 2006 (revised 1 August 2012),
MarkBottomley from 1 June 2009, Jim Brisby from 26 July 2010 and Chris Aldersley from 19 October 2015 (revised 1 August 2022).
Non-Executive Directors
Each Non-Executive Director has an appointment letter – Tim Smith for three years from 1 April 2024 and Liz Barber for three years from 1 May 2024,
Alan Williams for three years from 24 July 2023, Yetunde Hofmann for three years from 1 August 2022, and Rachel Howarth for three years from
30 April 2024. The continuing appointments are subject to annual re-election at the Company’s AGM.
Copies of the service contracts and letters of appointment are held at the Company’s Registered Office and will be available for inspection at the AGM.
Legacy remuneration arrangements
The Committee reserves the right to make any remuneration payments and/or payments for loss of office (including exercising any discretions available
to it in connection with such payments) notwithstanding that they are not in line with the Policy set out above where the terms of the payment were
agreed: (i) before the Policy set out in this 2024 Annual Report and Accounts came into effect, provided that the terms of payment were consistent
withthe Shareholder-approved Directors’ Remuneration Policy in force at the time they were agreed, or (ii) at a time when the relevant individual was
notadirector of the Company and, in the opinion of the Committee, the payment was not in consideration for the individual becoming a Director of the
Company. For these purposes ‘payments’ includes the Committee satisfying awards of variable remuneration and, in relation to an award over shares,
the terms of the payment are ‘agreed’ at the time the award is granted.
Pay and conditions elsewhere in the Group
The Committee does not directly consult with employees regarding the remuneration of the Executive Directors. However, when considering
remuneration levels to apply, the Committee will take into account base pay increases, bonus payments and share awards made to the Company’s
employees generally.
The following are the key aspects of how pay and employment conditions across the Group are taken into account when setting the remuneration
ofemployees, including the Executive Directors:
• the Group operates within the UK food sector and has many employees who carry out demanding tasks within the business;
• all employees, including Directors, are paid by reference to the market rate;
• performance is measured and rewarded through a number of performance-related bonus schemes across the Group including LTIP share options
forExecutive Directors and Senior Executives;
• performance measures are cascaded down through the organisation to individual businesses;
• the Group offers employment conditions that are commensurate with a quoted company of a similar size, including high standards of health and safety
and equal opportunities; and
• the Group operates Save As You Earn share schemes and has introduced a new Buy As You Earn (BAYE) share incentive plan, each of which is open
toalleligible employees including Executive Directors.
Consideration of Shareholders’ views
The Committee believes that ongoing dialogue with major Shareholders in relation to Executive Director remuneration is of key importance, and
consulted with major Shareholders and investor agencies in relation to the new Policy, adjusting the proposals having regard to feedback received,
asdiscussed in the Interim Committee Chair’s letter on pages 105 to 109. The Committee will consider Shareholder feedback received on remuneration
matters including issues raised at the AGM as well as any additional comments received during any other meeting with Shareholders. The Committee
will seek to engage directly with major Shareholders and their representative bodies should any material changes be proposed to be made to the
Remuneration Policy or made to the way the Remuneration Policy is implemented.
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121
ANNUAL REPORT ON DIRECTORS’ REMUNERATION
Directors’ Remuneration (audited)
The remuneration Policy operated as intended in 2023/24. The table below sets out the single figure remuneration details of the Directors
for the reporting year:
Salary and fees Benefits Bonus LTIP
1
Pension SAYE Total Total fixed Total variable
£’000 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Executive Directors
Chris Aldersley
2
530 331 37 23 875 256 692 98 56 59 4 – 2,194 767 623 413 1,571 354
Mark Bottomley 530 496 35 33 875 383 692 489 56 89 4 4 2,192 1,494 621 618 1,571 876
Jim Brisby 530 496 34 32 875 383 692 489 56 89 11 – 2,198 1,489 620 617 1,578 872
Adam Couch 802 751 41 36 1,323 580 1,046 741 85 134 2 – 3,299 2,242 928 921 2,371 1,321
2,392 2,074 147 124 3,948 1,602 3,122 1,817 253 371 21 4 9,883 5,992 2,792 2,569 7,091 3,423
Salary and fees Benefits Bonus LTIP
1
Pension SAYE Total Total fixed Total variable
£’000 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Non-Executive Directors
Tim Smith 250 250 – – – – – – – – – – 250 250 250 250 – –
Mark Reckitt
3
21 66 – – – – – – – – – – 21 66 21 66 – –
Pam Powell
4
28 63 – – – – – – – – – – 28 63 28 63 – –
Kate Allum
5
– 22 – – – – – – – – – – – 22 – 22 – –
Liz Barber 67 63 – – – – – – – – – – 67 63 67 63 – –
Yetunde
Hofmann
6
65 37 – – – – – – – – – – 65 37 65 37 – –
Alan Williams
7
46 – – – – – – – – – – – 46 – 46 – – –
477 501 – – – – – – – – – – 477 501 477 501 – –
Total
2,869 2,575 147 124 3,948 1,602 3,122 1,817 253 371 21 4 10,360 6,493 3,269 3,070 7,091 3,423
1. The values of the LTIP awards which vested in July 2023 have been updated for the actual share price on the date of vesting. In line with the regulations, the values for 2024 are based on the average share
price over the three-month period to 30 March 2024 as these awards will not vest until August 2024 (see tables on page 124).
2. Appointed to the Board on 1 August 2022. The 2023 figures reflect their remuneration for the period from 1 August 2022. The LTIP figures relates to the LTIP award made whilst employed by the
Group in a Senior Executive position as Chief Operating Officer prior to being appointed a Director on 1 August 2022.
3. Retired from the Board on 24 July 2023.
4. Retired from the Board on 1 September 2023.
5. Retired from the Board on 1 August 2022.
6. Appointed to the Board on 1 August 2022.
7. Appointed to the Board on 24 July 2023.
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As reported last year, the Executive Directors had pay awards in the year effective from 1 May 2023 which were consistent with the average increase
awarded to Senior Executives and below average increases applied to the wider workforce as set out below:
From 1 May 2023 % increase
Chris Aldersley £532,975 7%
Mark Bottomley £532,975 7%
Jim Brisby £532,975 7%
Adam Couch £806,250 7%
As disclosed in last year’s Chair’s annual statement on page 110, Executive Directors were awarded a salary increase of 7 per cent which considered
theannual increase for 2023/24 for the wider workforce (which for the majority of employees ranged from 5 per cent to 9 per cent, with an increase
ofat least 7 per cent for a significant proportion of the workforce, taking into account unscheduled mid-year pay increases focused on our lower paid
workers and sites where the cost-of-living crisis had been particularly acute).
Benefits principally comprise health and life insurance, personal tax advice, pension advice and company car allowance.
Executive Director pension contributions are set at 10 per cent which is consistent with the rate of pension contribution available to the wider workforce.
The number of Directors who were active members of the money purchase pension scheme in the year was two (2023: two).
The Non-Executive Chairman is paid a fee of £250,000 for chairing the Company, which is reviewed triennially. No additional fees are payable to the
Chairman for chairing any committees or undertaking workforce engagement.
Non-Executive Directors are paid a basic fee of £56,000 with additional fees of £11,000 paid for chairing Committees, for the role of Senior
Independent Director and for undertaking the role as designated Non-Executive Director for workforce engagement, which are reviewed triennially.
Annual bonus arrangement (audited)
The bonus scheme in operation for FY24 was based on the achievement of adjusted Group profit before tax targets which were set with regard to the
Company’s budget, historical performance and market outlook for the year. There are three bonus profit targets triggering awards of 20 per cent,
50per cent and100 per cent of the maximum award (representing 165 per cent of the relevant Executive Directors base salary) with a straight-line,
pro-rata award for profits falling between the targets.
The performance in the year, before charging bonus awards made to the Executive Directors was £181.1 million. This resulted in a bonus award
representing 165 per cent of salary as shown below. The Committee considers the level of pay-out is reflective of the overall performance of the Group
in the year and is appropriate and therefore no discretion was applied.
Threshold
Target to
stretch Maximum Actual*
Group profit targets £143.2m £150.0m £161.9m £181.1m
Bonus payable (% of maximum) 20% 50% 100% 100%
* Adjusted Group profit before tax targets are stated before deduction of bonuses paid to Executive Directors, associated employers NI and non-trading items.
This award is reflected in the single figure remuneration table above.
LTIP award vesting in respect of the 53 weeks ended 30 March 2024 (audited)
The Remuneration Committee makes awards under the LTIP in order to ensure that Executive Directors and Senior Management are involved in the
longer-term success of the Group. Options awarded can only be exercised if certain performance criteria are achieved by the Group. The performance
criteria for the 2021 LTIP awards that will vest in August 2024 are as follows:
• After taking into account the changes to the EPS targets described in the Committee’s statement last year on pages 108 and 109, 50 per cent of each
award is subject to an EPS target requiring average annual growth in EPS of 5.56 per cent for threshold vesting (25 per cent) and average annual
growth in EPS of 11.56 per cent for full vesting, with average annual growth between 5.56 and 11.56 per cent rewarded pro-rata.
• 50 per cent is aligned to a TSR target measured against a comparable Group of companies over a three-year period. The TSR target allows 25 per cent
ofthe shares subject to the target to vest at the 50
th
percentile and 100 per cent at the 90
th
percentile with performance between the 50
th
and90
th
percentiles rewarded pro-rata.
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123
ANNUAL REPORT ON DIRECTORS’ REMUNERATION
CONTINUED
The comparison companies used are: Associated British Foods plc, A.G. Barr plc, Britvic plc, Carrs Group plc, Greencore Group plc, Hilton Food Group
plc, Kerry Group plc, McBride plc, Premier Foods plc and Tate and Lyle plc.
The value of the LTIP for the year ended 30 March 2024 relates to awards made in August 2021 with a performance criteria based on the three years
ended 30 March 2024 that will vest in August 2024 calculated at the average price for the three months ended on 30 March 2024 of 3,986 pence.
Over the three-year performance period the EPS element of the award, based on the criteria set above, gave an outperformance of 1.72 per cent over
the threshold adjusted average annual growth (referenced above) and vesting at 46.4 per cent of the maximum. Performance in relation to TSR
measured over athree-month averaging period has been strong with the Company being ranked in the 91
st
percentile of its comparator Group and,
consequently, 100per cent of the TSR element of the award has vested this year. The total award of 73.2 per cent of maximum (146.4 per cent of salary)
is reflected inthe table on page 122, and below. The Committee considers the level of pay-out is reflective of the overall performance of the Group over
the three-year performance period ended 30 March 2024 and is appropriate and therefore no discretion was applied.
Date of
grant
Options
granted
Vesting
performance
Shares
awarded
Average
share price
Value of
shares
Chris Aldersley* 1 August 2021 23,700 73.2% 17, 3 5 3 3,986 £691,691
Mark Bottomley 1 August 2021 23,700 73.2% 17,35 3 3,986 £691,691
Jim Brisby 1 August 2021 23,700 73.2% 17, 3 5 3 3,986 £691,691
Adam Couch 1 August 2021 35,850 73.2% 26,249 3,986 £1,046,285
* Chris Aldersley’s LTIP award was made whilst employed by the Group in a Senior Executive position as Chief Operating Officer prior to being appointed a Director on 1 August 2022.
The 2021 LTIP awards with a performance period ended 30 March 2024, were granted on 1 August 2021 when the share price was 4,050 pence.
The three-month average share price ended on 30 March 2024 was 3,986 pence. This equated to a decrease in value for each Executive Director
of64pence per share due to vest in August 2024. The proportion of the value attributable to share price growth is therefore -1.6 per cent.
The Committee did not exercise discretion in respect of the share price depreciation.
True-up of awards vested in respect of the 52 weeks ended 25 March 2023 for share price on vesting date (audited)
The value of the LTIP for the 52 weeks ended 25 March 2023 relates to awards, made in 2020, with a performance criteria based on the three years
ended 25 March 2023 that vested in July 2023, updated for the actual vesting share price of 3,230 pence. The EPS element of the award achieved
83.7per cent of its performance target and 38 per cent was achieved under the TSR measure giving an overall award of 60.9 per cent of maximum
andthis is reflected in the 2023 column of the table on page 122 and in the table below.
The 2020 LTIP awards with performance period ended 25 March 2023, were granted on 1 July 2020 when the share price was 3,664 pence.
Based on the vesting share price, this equated to an decrease in value of 434 pence per share.
Date of grant Options vested
Value of award as
at 25 March 2023
based on an average
price of 3,099p
Value of award
when vested
in July at the market
price of 3,230p
Chris Aldersley* 1 July 2020 13,662 £94,086 £98,063
Mark Bottomley 1 July 2020 15,154 £469,622 £489,474
Jim Brisby 1 July 2020 15,154 £469,622 £ 489,474
Adam Couch 1 July 2020 22,944 £711,035 £741,091
* Chris Aldersley’s LTIP award was made whilst employed by the Group in a Senior Executive position as Chief Operating Officer prior to being appointed a Director on 1 August 2022. The value of the award
vesting, included in the figure above and the single figure table, is the value of 8/36 of the vesting shares, reflecting the proportion of the three-year performance period for which Chris Aldersley was
a Director.
LTIP awards granted during the year ended 30 March 2024 (audited)
Details of the nil-cost LTIP options granted in the year under the LTIP are set out below:
Date of
grant
Basis of
award
Number of
shares
Share price
at grant* (p)
Face value
of shares
Vesting at minimum
performance
End of performance
period
Chris Aldersley 1 July 2023 200% of salary 32,800 3,250 £1,066,000 25% 28 March 2026
Mark Bottomley 1 July 2023 200% of salary 32,800 3,250 £1,066,000 25% 28 March 2026
Jim Brisby 1 July 2023 200% of salary 32,800 3,250 £1,066,000 25% 28 March 2026
Adam Couch 1 July 2023 200% of salary 49,620 3,250 £1,612,650 25% 28 March 2026
* Based on the average of the quoted market price of the Company’s shares on the three dealing days prior to the date of grant.
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Each person has also been granted a tax qualifying option over 615 shares at an exercise price of 3,250p per share as part of their award. These tax
qualifying options are linked to the LTIP nil-cost options such that, at the time of exercise, to the extent that there is a gain in the tax qualifying option,
theLTIP nil-cost option will be forfeited to the value of that gain.
Details of the performance targets for the LTIP granted during the year ended 30 March 2024 are as follows:
EPS as at 28 March 2026 (42.5% of award) Vesting percentage
215.6 pence per ordinary share 25%
Growth between 215.6 pence and 249.8 pence per ordinary share Straight-line vesting
249.8 pence per ordinary share 100%
TSR performance (42.5% of award) Vesting percentage
Median 25%
Between median and upper decile Straight-line vesting
Upper decile 100%
Emissions reduction (tonnes CO
2
e)* (5% of award) Vesting percentage
12.4 per cent 25%
Between 12.4 per cent and 16.5 per cent Straight-line vesting
16.5 per cent 100%
Water Intensity reduction (m
3
/sales tonnes)** (5% of award) Vesting percentage
12.2 per cent 25%
Between 12.2 per cent and 16.3 per cent Straight-line vesting
16.3 per cent 100%
Energy Intensity reduction (kWh/sales tonnes) (5% of award) Vesting percentage
14.0 per cent 25%
Between 14.0 per cent and 18.7 per cent Straight-line vesting
18.7 per cent 100%
* Emissions are total Scope 1 and Scope 2 emissions (location based).
** Water intensity excludes farms.
The Committee has discretion to reduce the extent of vesting in the event that it considers that performance against any measure is inconsistent
withthe overall financial or non-financial performance of the Group over the performance period.
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125
ANNUAL REPORT ON DIRECTORS’ REMUNERATION
CONTINUED
SAYE (audited)
The value of the SAYE options relates to awards granted three or five years ago that have had their full contribution paid by the Executive Director
andhave been exercised in the year. The awards exercised in 2023/24 by Adam Couch had an exercise price of 2,565 pence and a market value of
3,338 pence respectively, the awards exercised by Chris Aldersley had an exercise price of 2,565 pence and a market value of 3,242 pence respectively,
theawards exercised by Mark Bottomley had an exercise price of 2,800 pence and a market value of 4,066 pence respectively and the awards exercised
byJimBrisby had an exercise price of 2,239 pence and a market value of 3,904 pence respectively. The notional gains are shown in the 2024 column
ofthetable on page122.
Payments to past Directors and payments for loss of office (audited)
There have been no payments made to past Directors or payments for loss of office during the year.
Performance graph – total shareholder return (unaudited)
The graph below shows the percentage change (from a base of 100 in March 2014) in the TSR (with dividends reinvested) for each of the last 10 years
ona holding of the Company’s shares against the corresponding change in a hypothetical holding in the shares of the FTSE 350 Food Producers and
Processors Price Index (FTSE FPP) and the FTSE All Share Index (FTSE All Share). The FTSE FPP and the FTSE All Share were chosen as representative
benchmarks of the sector and the market as a whole for the business.
0
50
100
150
200
250
300
350
400
450
Total Shareholder Return
2022 2020 20212019 2018 2017 2016 2015 2014
Cranswick PLC FTSE 350 Food producers FTSE All Share
2023 2024
The table below illustrates the change in the total CEO remuneration over a period of ten years, with the bonus awards in those years and the LTIP
vesting awards set against a percentage of the maximum available.
£’000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Base salary 562 588 599 616 635 651 669 720 751 802
Benefits 29 29 31 32 33 34 32 33 36 41
Pension 112 118 120 123 127 130 134 134 134 85
Bonus 843 882 898 925 240 979 1,004 604 580 1,323
LTIP 825 1,148 1,341 1,793 840 1,118 1,200 1,482 741 1,046
SAYE – 38 – – – 49 – 17 – 2
CEO total remuneration 2,371 2,803 2,989 3,489 1,875 2,961 3,039 2,990 2,242 3,299
Bonus award against
maximum opportunity 100% 100% 100% 100% 25% 100% 100% 51% 47% 100%
LTIP vesting against
maximum opportunity 87% 100% 100% 100% 81% 99% 77% 100% 61% 73%
Adam Couch was the CEO throughout the ten year period referenced above.
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Annual percentage change in remuneration of Directors and employees (unaudited)
The table below shows the percentage change in each Director’s salary/fees, benefits and bonus between the year ended 27 March 2021, the year ended
26 March 2022, the year ended 25 March 2023 and the year ended 30 March 2024, and the average percentage change inthesameremuneration
over the same period in respect of the employees of the Cranswick plc on a full-time equivalent basis.
The average employee change has been calculated by reference to the mean of employee pay. During the year ended 30 March 2024, Alan Williams
was appointed to the Board, and accordingly has been excluded from the analysis.
Average
employee
1
Chris
Aldersley
2
Mark
Bottomley
Jim
Brisby
Adam
Couch
Mark
Reckitt
3
Pam
Powell
4
Tim
Smith
5
Liz
Barber
Yetunde
Hofmann
Salary/fees 2023/24 +4.4% +6.9% +6.9% +6.9% +6.8% -68.2% -55.6% – +6.3% +75.7%
2022/23 +19.1% N/A +4.2% +4.2% +4.3% +4.8% +16.7% +31.6% +28.6% N/A
2021/22 +0.3% N/A +7.7% +7.7 % +7.6% +6.8% +5.9% +222.0% – N/A
2020/21 +6.6% N/A +2.8% +2.8% +2.8% – – – N/A N/A
Benefits 2023/24 +4.8% +6.1% +6.1% +6.3% +13 .9 % N/A N/A N/A N/A N/A
2022/23 +1.7% N/A 0.0% 0.0% +9.1% N/A N/A N/A N/A N/A
2021/22 -11.6% N/A +6.5% +3.2% +3.1% N/A N/A N/A N/A N/A
2020/21 -2.3% N/A -3.7% -0.7% -5.7% N/A N/A N/A N/A N/A
Bonus 2023/24 +23.4% +128.5% +128.5% +128.5% +12 8 .1% N/A N/A N/A N/A N/A
2022/23 +35.3% N/A -4.0% -4.0% -4.0% N/A N/A N/A N/A N/A
2021/22 -18.1% N/A -39.9% -39.9% -39.9% N/A N/A N/A N/A N/A
2020/21 +12 .1% N/A +2.8% +2.8% +2.6% N/A N/A N/A N/A N/A
1. Includes the impact of pay awards, growth in employee numbers and restructuring of plc support functions.
2. Appointed to the Board on 1 August 2022, in order for the numbers to be compatible the 2023 value has been annualised.
3. Retired from the Board as a Director on 24 July 2023.
4. Retired from the Board as a Director on 1 September 2023.
5. Increase in remuneration during 2020/21 is due to being appointed as Chairman on 26 July 2021.
Chief Executive pay ratio (unaudited)
The table below shows the pay ratio based on total remuneration and salary of the Chief Executive to the 25
th
, 50
th
and 75
th
percentile of all permanent
UK employees of the business.
Year Method* 25
th
percentile pay ratio Median pay ratio 75
th
percentile pay ratio
2020 Option A 120:1 101:1 79:1
2021 Option A 112 :1 95:1 77:1
2022 Option A 119:1 100:1 80:1
2023 Option A 79:1 69:1 55:1
2024 Option A 109:1 95:1 79:1
2024 Chief Executive 25
th
percentile Median 75
th
percentile
Salary 802 24 29 33
Total Remuneration 3,299 30 35 42
* The Company used Option A as defined in The Companies (Miscellaneous Reporting) Regulations 2018, as the calculation methodology for the ratios was considered to be the most accurate method.
The 25
th
, median and 75
th
percentile pay ratios were calculated using the full-time equivalent remuneration for all UK employees as at the financial year end and incorporated all components of employee
remuneration. Employees’ involvement in the Group’s performance is encouraged, with all employees employed on the relevant offer date eligible to participate in the SAYE schemes. Certain employees
also participate in discretionary bonus schemes.
The Chief Executive remuneration for the year ended 25 March 2023 is the total single figure remuneration figure as disclosed on page 122, which has
been adjusted to reflect the actual LTIP vesting (further information on page 124). This adjustment has increased the CEO pay ratios for the year ended
25 March 2023 as follows: 25
th
percentile 77:1 to 79:1; median 68:1 to 69:1; and 75
th
percentile 54:1 to 55:1.
The workforce comparison is based on the payroll data for the financial year for all employees (including the Chief Executive but excluding
Non-Executive Directors) as at 30 March 2024. The workforce comparison has not excluded any component of total pay and benefits.
A substantial proportion of the Chief Executive’s total remuneration is performance-related. The ratios will therefore depend significantly on the
ChiefExecutive’s annual bonus and LTIP outcome, and may fluctuate year-to-year. In respect of the median employee (50
th
percentile),
totalremuneration hasincreased to £35,000. The Group considers the median pay ratio to be consistent with the Group’s wider policies on employee
pay, reward and progression. In 2021, a special bonus was paid to all site-based colleagues which resulted in a decrease in the median pay ratio 2021,
withnofurther special bonuses having been paid in subsequent years. The variation in the median pay ratio reflects the greater proportion of the
ChiefExecutives’ totalremuneration being performance based and dependent on the Company’s share price.
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
127
Relative importance of the spend on pay (unaudited)
The table below shows the total remuneration paid across the Group together with the total dividend paid and share buybacks in respect of 2024
andthe preceding financial year. There have been no share buybacks during 2024 and 2023.
Pay against distributions £’m 2024 2023 Change %
Remuneration paid to all employees* 388.4 335.9 +15.6%
Total dividends paid and share buybacks in the year 43.9 40.7 +7.9 %
* Includes the impact of pay awards, growth in employee numbers and corporate activity.
Outstanding share awards (audited)
The interests of the Executive Directors in the Deferred Bonus Plan, LTIP and SAYE schemes were as follows:
Long-term Incentive Plan (audited)
Year of award
At 25 March
2023
Number
Granted
in the year
Number
Exercised
in the year
Number
Lapsed
in the year
Number
At 30 March
2024
Number
Exercise
price
p
Market price
at grant
p
Chris Aldersley*** 2020 22,450 – (13,662) (8,788) – nil 3,664
2021 23,700 – – – 23,700 nil 4,050
*2022 31,900 – – – 31,900 nil 3,034
**2023 – 32,800 – – 32,800 nil 3,246
Mark Bottomley 2020 24,900 – (15,154) (9,746) – nil 3,664
2021 23,700 – – – 23,700 nil 4,050
*2022 31,900 – – – 31,900 nil 3,034
**2023 – 32,800 – – 32,800 nil 3,246
Jim Brisby 2020 24,900 – (15,154) (9,746) – nil 3,664
2021 23,700 – – – 23,700 nil 4,050
*2022 31,900 – – – 31,900 nil 3,034
**2023 – 32,800 – – 32,800 nil 3,246
Adam Couch 2020 37,70 0 – (22,944) (14,756) – nil 3,664
2021 35,850 – – – 35,850 nil 4,050
*2022 48,250 – – – 48,250 nil 3,034
**2023 – 49,620 – – 49,620 nil 3,246
* Each of the Executive Directors, was also granted a tax qualifying option over 320 ordinary shares at an exercise price of £31.24 per ordinary share which is linked to the LTIP awards such that, at the time
ofexercise, to the extent that there is a gain in the tax qualifying option, the LTIP was scaled back by the value of that gain.
** Each of the Executive Directors, was also granted a tax qualifying option over 615 ordinary shares at an exercise price of £32.50 per ordinary share which is linked to the LTIP awards such that, at the time
ofexercise, to the extent that there is a gain in the tax qualifying option, the LTIP was scaled back by the value of that gain.
*** Chris Aldersley’s LTIP awards prior to 1 August 2022 were made whilst employed by the Group in a Senior Executive position as Chief Operating Officer prior to being appointed a Director.
The performance periods run for three years from the commencement of each financial year and conclude at the end of the financial year three years
later and are exercisable on the attainment of certain performance criteria detailed on pages 124 and 125 in respect of 2023 and as detailed in the
Directors’ Remuneration Report for the preceding years on the following pages of the relevant report: 2022 page 114, 2021 page 105 and 2020
page 88.
The LTIP, issued in 2021, which vests in August 2024, will achieve 46.4 per cent of the EPS target and 100 per cent of the TSR target giving a share
vesting of 73.2 per cent of the maximum award.
The following Directors exercised LTIP share options during the year:
Number Date exercised
Exercise price
p
Market price
p
Gain on exercise
£
Chris Aldersley* 13,662 30 June 2023 nil 3,230 441,283
Mark Bottomley 15,154 30 June 2023 nil 3,230 489,474
Jim Brisby 15,154 30 June 2023 nil 3,230 489,474
Adam Couch 22,944 30 June 2023 nil 3,230 741,091
* Chris Aldersley’s LTIP award was made whilst employed by the Group in a Senior Executive position as Chief Operating Officer prior to being appointed a Director on 1 August 2022.
ANNUAL REPORT ON DIRECTORS’ REMUNERATION
CONTINUED
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
128
Savings-related share option scheme (audited)
Year of award
At 25 March
2023
Number
Granted
in the year
Number
Exercised
in the year
Number
Lapsed
in the year
Number
At 30 March
2024
Number
Exercise
price
p Range of exercise dates
Chris Aldersley 2017 584 – (584) – – 2,565 1 Mar 2023 – 1 Sept 2023
2020 535 – – – 535 2,800 1 Mar 2026 – 1 Sept 2026
2022 600 – – – 600 2,498 1 Mar 2028 – 1 Sept 2028
Mark Bottomley 2020 321 – (321) – – 2,800 1 Mar 2024 – 1 Sept 2024
2022 360 – – – 360 2,498 1 Mar 2026 – 1 Sept 2026
Jim Brisby 2018 669 – (669) – – 2,239 1 Mar 2024 – 1 Sept 2024
2020 535 – – – 535 2,800 1 Mar 2026 – 1 Sept 2026
2023 – 505 – – 505 3,127 1 Mar 2029 – 1 Sept 2029
Adam Couch 2017 205 – (205) – – 2,565 1 May 2023 – 1 Nov 2023
2019 591 – – – 591 2,534 1 Mar 2025 – 1 Sept 2025
2020 347 – – – 347 2,800 1 Mar 2026 – 1 Sept 2026
2023 – 177 – – 177 3,127 1 Mar 2029 – 1 Sept 2029
The Executive Directors are eligible, as are other employees of the Group, to participate in the SAYE scheme, which by its nature does not have
performance conditions.
The following Executive Directors exercised savings related share options during the year:
Number Date exercised
Exercise price
p
Market price
p
Gain on exercise
£
Chris Aldersley 584 25 August 2023 2,565 3,242 3,954
Mark Bottomley 321 14 March 2024 2,800 4,066 4,064
Jim Brisby 669 1 March 2024 2,239 3,904 11,139
Adam Couch 205 1 June 2023 2,565 3,338 1,585
Deferred Bonus Plan (audited)
The following Executive Director exercised deferred bonus share options during the year:
Year of award
Number of nil
cost options Date of Exercise
Chris Aldersley 2023 2,619
29 November
2023*
Deferred bonus shares are subject to a two-year retention period and will lapse in certain circumstances on the cessation of employment.
* During the year, the Board of Directors (with the approval of Remuneration Committee) agreed to the early exercise of the nil cost options (and dividend equivalents) in consideration for Chris Aldersley
undertaking to the Company to retain 1,388ordinary shares of 10p each (representing the after-tax number of shares subject to the Deferred Bonus Plan) from his existing holding of shares in the Company
for the balance of the two-year deferral period relating to the nil-cost options granted under the Deferred Bonus Plan.
Minimum shareholding
The Remuneration Committee has recommended that the Executive Directors hold shares in the Company worth at least 200 per cent of base salary.
The Executive Directors’ current holdings and value are all in excess of the 200 per cent target and are shown below.
Directors’ interests (audited)
LTIP (Unvested,
subject to
performance)*
LTIP (Vested
unexercised)**
SAYE
(Non-performance
related)
Number of shares
held as at
30 March 2024
Value of shares
held as a % of
base salary Target %
Chris Aldersley*** 64,700 17, 3 5 3 1,135 36,687 268% 200
Mark Bottomley 64,700 17,353 360 133,125 973% 200
Jim Brisby 64,700 17, 3 53 1,040 143,630 1,050% 200
Adam Couch 97, 870 26,249 1,115 233,439 1,128% 200
Tim Smith – – – 5,000 – –
Liz Barber – – – 1,000 – –
Alan Williams – – – 2,000 – –
* Not including tax qualifying options granted to each of the Executive Directors.
** LTIP awards are due to vest in August 2024 with the performance criteria now completed.
*** Chris Aldersley’s LTIP awards were made whilst employed by the Group in a Senior Executive position as Chief Operating Officer prior to being appointed a Director on 1 August 2022.
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
129
ANNUAL REPORT ON DIRECTORS’ REMUNERATION
CONTINUED
The share price at 30 March 2024 of 4,096 pence was used in calculating the percentage figures shown above. Yetunde Hofmann has no interests
in the Company at the present time. There have been no further changes to the above interests in the period from 30 March 2024 to 21 May 2024.
Remuneration for the year ending 29 March 2025 (unaudited)
Salaries and pension
Our approach to Executive Directors’ salaries and pension for 2024/25 is described in the Committee Chair’s Statement on pages 105 to 109.
Bonus
In accordance with the proposed 2024 Remuneration policy, a bonus opportunity of 200 per cent of salary for the Chief Executive and 180 per cent
ofsalary for the other Executive Directors will be awarded. 90 per cent of the bonus in the case of the Chief Executive and 91.7 per cent ofthe bonus
forthe other Executive Directors will be based on the achievement of Group profit targets which are set having regard to the Company’s budget,
historical performance and market outlook for the year. The remaining part of the bonus opportunity will be based against quantifiable and objective
strategic/individual targets. The Committee have ensured that the stretch in bonus targets is commensurate with the proposed increase in
bonus opportunity.
The actual 2025 targets are not disclosed as they are considered to be commercially sensitive. The targets will be declared retrospectively in the 2025
Annual Report & Accounts, provided they are not considered commercially sensitive at that time. There will be three bonus profit targets triggering
awards of 20 per cent, 50 per cent and 100 per cent of the maximum award (representing 200 per cent of base salary for the Chief Executive and
180per cent of base salaries for the other Executive Directors) with a straight-line pro-rata award for profits falling between the targets. All Executive
Directors have met their shareholding guideline therefore mandatory bonus deferral does not apply.
Core LTIP
Core LTIP awards, equivalent to 200 per cent of basic salary, will be made in August 2024 and vesting will be after a three-year performance period.
42.5percent of the award will be based on a ROCE performance measure, 42.5 per cent on an EPS performance measure, and 15 per cent on
sustainability measures.
Details of the performance targets for the Core LTIP awards to be granted are as follows:
EPS as at 30 March 2027 Vesting percentage
259.9 pence per ordinary share 25%
Growth between 259.9 pence and 301.2 pence per ordinary share Straight-line vesting
301.2 pence per ordinary share 100%
ROCE as at 30 March 2027 Vesting percentage
16.0 per cent 25%
Between 16.0 per cent and 18.0 per cent Straight-line vesting
18.0 per cent 100%
Emissions reduction (tonnes CO
2
e*) Vesting percentage
16.8 per cent 25%
Between 16.8 per cent and 22.4 per cent Straight-line vesting
22.4 per cent 100%
Water Intensity reduction (m
3
/sales tonnes)** Vesting percentage
15.6 per cent 25%
Between 15.6 per cent and 20.8 per cent Straight-line vesting
20.8 per cent 100%
Energy Intensity reduction (kWh/sales tonnes) Vesting percentage
18.1 per cent 25%
Between 18.1 per cent and 24.1 per cent Straight-line vesting
24.1 per cent 100%
* Emissions are total Scope 1 and Scope 2 emissions (location based).
** Water intensity excludes farms.
Threshold vesting for the LTIP award is intended to be 25 per cent of maximum in line with the Remuneration Policy.
Awards are subject to a two-year holding period.
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
130
Exceptional Performance Long-term Incentive Award
Subject to Shareholder approval, an Exceptional Performance Long-term Incentive Award, equivalent to 100 per cent of basic salary in relation to the
Chief Executive Officer and 50percent of salary in relation to the other Executive Directors, will be made in August 2024 and vesting will be after
athree-year performance period based on a TSR measure.
Details of the performance target for the Exceptional Performance Long-term Incentive Award to be granted are as follows:
TSR Vesting percentage
75
th
percentile 0%
Between 75
th
percentile and 90
th
percentile Straight-line vesting
90
th
percentile 100%
Awards are subject to a two-year holding period.
Advisers to the Committee (unaudited)
The Committee keeps itself fully informed on the developments within the industry and in the field of remuneration, and seeks advice from external
advisers where appropriate. Deloitte LLP was reappointed by the Committee to advise it during 2023/24 and has provided general remuneration
advice and share scheme advice to the Company. Deloitte is a member of the Remuneration Consultants Group and as such voluntarily operated under
the Code of Conduct in relation to executive remuneration consulting in the UK. Deloitte’s fees for providing remuneration advice agreed by the
Committee were £86,160 for the year ended 30 March 2024. Deloitte also provides consultancy services to the Group but otherwise has no connection
to the Company or its directors. However, the Committee have reviewed any potential conflicts of interest and judged that Deloitte’s advice is both
objective and independent. The Committee have also been provided advice during the year in relation to its consideration of matters relating to
Directors’ remuneration by the Chief Executive Officer, Chief Financial Officer and Company Secretary.
Statement of Shareholders voting (unaudited)
The resolution to approve the 2023 Remuneration Committee Report was passed on a poll at the Company’s last AGM held on 24 July 2023. The votes
cast in respect of the resolution were:
Remuneration Committee Report Number %
For 39,798,119 89.96
Against 4,440,977 10.04
Withheld 12,505 –
The resolution to approve the Remuneration Policy was passed on a poll at the Company’s 2021 AGM held on 26 July 2021. The votes cast in respect
ofthe resolution were:
Remuneration Policy Number %
For 36,982,645 86.78
Against 5,632,533 13.22
Withheld 568,001 –
Remuneration disclosure
This report complies with the requirements of the Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008
asamended, the principles and provisions of the 2018 UK Corporate Governance Code and the Listing Rules of the Financial Conduct Authority.
Liz Barber
Interim Chair of the Remuneration Committee
21 May 2024
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
131
DIRECTORS’ REPORT
The Directors’ Report required
under the Companies Act 2006
comprises this Directors’ Report
(pages 132 to 136), the Corporate
Governance Report (pages 76to
131), the Sustainability Report set
out in the Strategic Report (pages
30 to 37) and the Statement of
Directors Responsibilities (page
137). Themanagement report
required under Disclosure
Guidance andTransparency Rule
4.1.8R comprises the Strategic
Report (pages 2 to 74) and this
Directors’ Report. This Directors’
Report meets the requirements
ofthe corporate governance
statement required under
Disclosure Guidance and
Transparency Rule7.2. As
permitted by legislation, some
ofthe matters required to be
included in the Directors’
Reporthave been included
intheStrategic Report by
crossreference.
Annual General Meeting
The AGM of Cranswick plc will be held at the
Mercure Hull Grange Park Hotel, Grange Park
Lane, Willerby, Hull HU10 6EA on Monday
29 July 2024. A notice convening the AGM
can be found in the separate Notice of Annual
General Meeting accompanying this Annual
Report and Accounts.
Details of the Special Business to be transacted
at the AGM are contained in the separate letter
from the Chairman which also accompanies this
Annual Report and Accounts, and covers the
Directors’ authority to allot shares, the partial
disapplication of pre-emption rights and the
authority for the Company to buy its own shares.
Results and dividends
The profit from continuing operations for
thefinancial year, after taxation amounts
to£113.1 million (2023: £111.4 million).
The Directors have declared dividends
as follows:
2024 2023
Interim dividend
per share paid on
26 January 2024 22.7p 20.6p
Final dividend per
share proposed 67.3p 58.8p
Total dividend £48.5m £41.0m
Subject to approval at the AGM, the final
dividend will be paid in cash on 30 August
2024to members on the register at the close
ofbusiness on 19 July 2024. The shares will
goex-dividend on 18 July 2024. The proposed
final dividend for 2024 together with the
interim paid in January 2024 amount to 90.0
pence per share which is 13.4 per cent higher
than the previous year.
Directors
The Directors of the Company who were
inoffice during the year and up to the date of
signing the audited consolidated financial
statements together with the biographies of all
Directors serving at the date of this Annual
Report are shown on pages78 and 79.
Directors’ interests in the
Company’s shares
The interests of the Directors of the Company
and their connected persons at 30 March 2024
in the issued share capital of the Company
(orother financial instruments) which have been
notified to the Company in accordance with
the Market Abuse Regulation are set out in
theRemuneration Report on page 129.
Details of Directors’ interests in shares are
provided in the Directors’ Remuneration Report
on page 129.
Appointment and removal of Directors
The Articles of Association of the Company,
theUK Corporate Governance Code and the
Companies Act 2006 govern the appointment
and replacement of Directors. Our Articles
ofAssociation are available on our website
(www.cranswick.plc.uk). The Articles of
Association include rules such as the limitation
on the number of Directors to 15. Directors may
be appointed by an Ordinary Resolution
oftheShareholders or by a resolution of the
Directors. A Director appointed by the Board
during the year must retire at the first AGM
following their appointment and such Director
is eligible to offer themselves for election
bytheCompany’s Shareholders.
Notwithstanding the retirement provisions
inthe Company’s Articles of Association, it is the
Company’s current practice that all Directors
retire from office at each AGM in accordance
with the recommendations of the UK Corporate
Governance Code.
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
132
Directors indemnities
The Company has in place directors’ and
officers’ liability insurance which gives
appropriate cover against the costs of
defending themselves in civil proceedings
taken against them in their capacity as a
Director or officer ofthe Company and in
respect of damages resulting from any
unsuccessful defence of any proceedings.
Directors conflicts of interest
Procedures are in place to ensure compliance
with the Directors’ conflict of interest duties set
out in the Companies Act 2006. The Company
has complied with these procedures during
theyear and the Board believes that these
procedures operate effectively. During the
year, details of any new conflicts or potential
conflict matters were submitted to the Board
for consideration and, where appropriate, these
were approved. Authorised conflict or potential
conflict matters are reviewed by the Board
atleast on an annual basis.
Share capital
The Company has a single class of shares in
theform of ordinary shares with a nominal value
often pence per share which have a Premium
Listing on the London Stock Exchange and
trade as part of the FTSE 250 Index under
thesymbol CWK. The Company has one class
of shares, being ordinary shares of ten pence
each. There are no special rights pertaining
toany of the shares in issue; each share carries
the right to one vote at general meetings of
theCompany. The allotted and fully paid up
share capital is shown in Note 22 on page 178.
During the year, the share capital increased
by305,215 shares. The increase comprised
302,549 of shares issued relating to share
options exercised during the year and 2,666
shares issued relating to deferred bonuses.
Details of share option schemes are summarised
in Note 24 to the audited consolidated financial
statements. The information in Note 24 to the
financial statements is incorporated into this
Directors’ Report by reference and is deemed
to form part of this Directors’ Report.
Rights and obligations
attachingtoshares
The rights and obligations attaching to shares
are set out in the Company’s Articles of
Association which are available on the
Company’s website (www.cranswick.plc.uk).
The holders of ordinary shares are entitled
toreceive dividends when declared, to receive
theCompany’s Annual Report and Accounts,
toattend and speak at general meetings of the
Company, to appoint proxies and to exercise
voting rights.
No shares carry any special rights with regard
to control of the Company and there are
norestrictions on transfer or limitations on the
holding of ordinary shares in the Company
other than where certain restrictions may apply
from time-to-time on the Board of Directors
andother Senior Executives and staff which
areimposed by laws and regulations relating
toinsider trading laws and market requirements
relating to close periods. The Company is not
aware of agreements between holders of
securities that may result in restrictions on the
transfer of securities or on voting rights and
noknown arrangements under which financial
rights are held by a person other than the
holder of the shares.
Amendment of Articles of Association
The Company’s Articles of Association may only
be amended by a special resolution at a general
meeting of the Shareholders.
Major interests in shares
The following information has been disclosed
tothe Company pursuant to the Financial
Conduct Authority’s Disclosure Guidance and
Transparency Rules and is published on a
Regulatory Information Service and on the
Company’s website. The following has been
received, in accordance with DTR 5, from
holders of notifiable interests in the Company’s
issued share capital as at 30 March 2024:
At 30 March 2024
Number of
shares
% of issued
share capital Nature of holding
BlackRock Inc 3,452,401 6.39 Direct & Indirect
The Vanguard Group, Inc. 2,663,335 4.93 Direct & Indirect
Franklin Resources 2,527, 3 74 4.68 Direct & Indirect
Invesco Perpetual 2,472,377 4.58 Direct & Indirect
abrdn plc 2,401,113 4.44 Direct & Indirect
J P Morgan Chase & Co 2,276,082 4.21 Direct & Indirect
Royal London Mutual Assurance Society 2,112,664 3.91 Direct & Indirect
Schroders 1,798,061 3.33 Direct
Wellington Mgt Company 1,624,970 3.01 Direct
The positions stated above represent the holdings in shares either in their own right or on behalf of
third parties and may not represent the total voting rights (or authority to vote) as at 30 March 2024.
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
133
There have been no notifications of any
significant changes, or percentage movements,
to these shareholdings as at 21 May 2024.
Capital structure
The primary objective of the Group’s capital
management is to ensure that it maintains
astrong credit rating and healthy capital ratios
in order to support its business and maximise
value for Shareholders and other stakeholders.
The Group regards its Shareholders’ equity and
net debt as its capital and manages its capital
structure and makes adjustments to it in light
ofchanges in economic conditions. To maintain
or adjust the capital structure, the Group may
adjust the dividend payment to Shareholders,
return capital to Shareholders or issue new
shares. No changes were made to the
objectives, policies or processes during the
52weeks ended 25 March 2023 and 53 weeks
ended 30 March 2024. The Group’s capital
structure is as follows:
2024
£’m
2023
£’m
Net debt/(funds)
(Note 26) 99.4 101.4
Cranswick plc
Shareholders’ equity 911.5 842.9
Capital employed 1,010.9 944.3
Powers of the Directors in relation
to share capital
The powers of the Directors are determined
bythe Company’s Articles of Association, UK
legislation including the Companies Act 2006
and any directions given by the Company
inageneral meeting.
Allotment of shares
The Company’s Directors were granted
authority at the AGM in 2023 to allot shares
inthe Company or to grant rights to subscribe
for or to convert any securities into shares in
theCompany (a) up to a maximum aggregate
nominal amount of £1,791,000 (being
approximately one-third of the issued share
capital prior to that AGM) in any circumstance
and (b) a further maximum aggregate nominal
amount of £1,791,000 (being approximately
one-third of the issued share capital prior to
theAGM) in connection with a rights issue only.
The Directors do not have any present intention
of exercising this authority other than in
connection with the issue of ordinary shares in
respect of the Company’s share option plans.
This authority is due to lapse at the 2024 AGM.
At the 2024 AGM, Shareholders will be asked
to renew the authority. Specific details of the
resolution and the number of shares covered
bythe renewed authority can be found in
Resolution 16 of the Notice of Annual
General Meeting.
Disapplication of pre-emption rights
The Directors were empowered at the 2023
AGM to make non-pre-emptive issues for cash
up to a maximum aggregate nominal amount
of£537,000 (being approximately 10 per cent
of the issued share capital prior to that AGM)
and up to a further nominal amount equal to
20per cent of such issue if used only for the
purposes of making a follow-on offer which
theDirectors determine to be of a kind
contemplated by the Pre Emption Group’s
Statement of Principles (as updated in
November 2022). This power is also due to
lapse at the 2024 AGM and Shareholders will
be asked to grant a similar power (Resolution 17
of the Notice of Annual General Meeting).
In addition, as supported by the Pre-Emption
Group’s Statement of Principles, as updated
inNovember 2022, the Directors were
empowered at the 2023 AGM to allot shares
for cash or sell shares out of treasury up to
afurther nominal amount of £537,000,
representing approximately 10 per cent of the
issued ordinary share capital as at June 2023
(the latest practicable date before the
publication of the Notice of Annual General
Meeting), other than to existing Shareholders
without first having to offer them to existing
Shareholders in proportion to their holdings
forthe purposes of financing (or refinancing)
atransaction which is an acquisition or other
capital investment and up to a further nominal
amount equal to 20 per cent of any allotments
or sales if used only for the purposes of making
a follow-on offer which the Directors determine
to be of a kind contemplated by the Statement
of Principles. In respect of this, the Board
confirms that it will only allot shares or sell
shares out of treasury pursuant to this authority
where the relevant acquisition or specified
capital investment is announced
contemporaneously with the allotment, or has
taken place in the preceding six-month period
and is disclosed in the announcement of the
allotment. The Directors have no current
intention of exercising this authority. If this
authority is used, the Company will publish
details of the placing in its next Annual Report
& Accounts. This power is also due to lapse at
the 2024 AGM and Shareholders will be asked
to grant a similar power (Resolution 18 of the
Notice of Annual General Meeting).
Own share purchases
The Directors were also authorised at the 2023
AGM under a Special Resolution to make market
purchases of the Company’s own ordinary
shares up to a maximum aggregate number
of5,373,000 shares (being approximately ten
per cent of the issued share capital prior to that
Annual General Meeting) and subject to the
conditions as to pricing set out in the authority.
This authority is also due tolapse at the 2024
AGM when it is proposed that Shareholders
grant a similar authority.
The authority to make market purchases of
theCompany’s own ordinary shares will expire
at the earlier of 24 January 2025 or the
conclusion of the 2024 AGM. It is the current
intention of the Directors to renew this
authority annually. In the event that shares are
purchased pursuant to the authority granted
under this resolution, the shares would either
be cancelled (and the number in issue would
bereduced accordingly) or retained as treasury
shares. The Directors will only make purchases
after consideration of the possible effect on
earnings per share and the long-term benefits
to Shareholders and in consultation
with advisers.
Own shares held
During the year, the Cranswick Employee
Benefit Trust (the ‘Trust’), which was set up in
May 2020, began purchasing Cranswick plc
shares. Shares held in trust are recorded at cost
and deducted from equity.
The Shares held in trust reserve represents the
cost of shares in Cranswick plc purchased in
themarket and held by the Trust to satisfy share
awards under the Group’s Long-Term Incentive
Plan and Save As You Earn share option plan.
Change of control
There are no agreements that the Company
considers significant and to which the Company
is party that would take effect, alter or terminate
upon change of control of the Company
following a takeover bid other than the following:
• the Company is party to a number of banking
agreements which upon a change of control
of the Company are terminable by the bank
upon the provision of 30 working days’ notice;
• the Company is party to an agreement
withWM Morrison Supermarkets plc
(‘WM Morrison’) for the supply of poultry
products from its facility at Eye, Suffolk,
which upon achange of control of the
Company is terminable by WM Morrison
upon the provision of notice;
• the Company is party to an agreement with
Pets at Home Limited (‘Pets at Home’) forthe
supply of pet food products from itsfacility
atLincoln, which upon a change ofcontrol of
the Company is terminable by Pets at Home
upon the provision of notice;
DIRECTORS’ REPORT
CONTINUED
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
134
• there are no agreements between the
Company and its Directors or employees
providing for compensation for loss of office
or employment (whether through resignation,
purported redundancy or otherwise) that
occur because of a takeover bid; and
• there are certain provisions in the Company’s
Save As You Earn share option plan and the
Long-Term Incentive Plan that may cause
options and awards granted to vest on a
takeover. The proportion of the awards that
are capable of exercise will depend on the
time in the scheme and as far as the LTIP
isconcerned the extent to which the
performance targets (as adjusted or amended)
have been satisfied.
Tax contribution
Within the UK, our tax contribution to the UK
treasury takes two forms: direct contributions,
being a cost to the Company which includes
corporation tax on profits, employer’s National
Insurance on wages paid, business rates and
apprenticeship levy; and indirect contributions,
being income tax and employee’s National
Insurance on wages paid. The total paid in the
year amounts to £152.5 million and is analysed
as follows:
Direct tax
Corporation tax £41.4m
Employer’s National Insurance £31.9m
Business rates £3.9m
Apprenticeship levy £1.8m
Indirect tax
Income tax £51.9m
Employee’s National Insurance £21.6m
Financial instruments
Functional currency
The functional currency of all Group
undertakings is Sterling.
Foreign currency risk
The main foreign exchange risk facing the
Group is in the purchasing of olives and
charcuterie products and fresh pork cuts from
continental Europe in Euros and the sale of
fresh pork to the USA and China denominated
in US Dollars. The policy of the Group is to seek
to mitigate the impact of this risk by taking out
forward contracts for up to 12 months ahead
and for amounts that commence at
approximately 25 per cent of the requirement
and move progressively towards full cover.
The Chief Financial Officer is consulted about
the key decisions on currency cover.
Interest rate risk
The Group’s current policy is to manage its cost
of borrowing using a mix of fixed and variable
rate debt. Whilst fixed rate interest-bearing
debt is not exposed to cash flow interest rate
risk, there is no opportunity for the Group to
enjoy a reduction in borrowing costs in markets
where rates are falling. In addition, the fair value
risk inherent in fixed rate borrowing means that
the Group is exposed to unplanned costs
should debt be restructured or repaid early
aspart of the liquidity management process.
In contrast, whilst floating rate borrowings are
not exposed to changes in fair value, the Group
is exposed to cash flow risk as costs increase
ifmarket rates rise.
The Group has reduced its borrowings over
thepast 12 months with the net debt
decreasing to£99.4 million (2023: £101.4m).
At 30 March 2024 gearing was 10.9 per cent
(2023: 12.0 per cent). Given this conservative
debt structure and low market interest rates,
the Group has not fixed the interest rate
onanypart of its current facility.
The Board will keep this situation under
constant review and will fix the interest rate
onaproportion of the Group’s borrowings
atsuch time as it becomes appropriate to do so.
The monitoring of interest rate risk is handled
entirely at Head Office, based on the monthly
consolidation of cash flow projections and the
daily borrowings position.
Credit risk
Practically all sales are made on credit terms,
the majority of which are to the major UK food
retailers. Overdue accounts are reviewed at
monthly management meetings. The historical
incidence of bad debts is low. For all major
customers, credit terms are agreed by
negotiation and for all other customers,
creditterms are set by reference to external
credit agencies and/or commercial awareness.
Every attempt is made to resist advance
payments to suppliers for goods and services;
where this proves commercially unworkable,
arrangements are put in place, where practical,
to guarantee the repayment of the monies
inthe event of default.
Liquidity risk
The Group has historically been very cash-
generative. The bank position for each site
ismonitored on a daily basis and capital
expenditure is approved at local management
meetings at which members of the main Board
are present and reported at the subsequent
monthly main Board meeting. Major projects,
inexcess of £2 million are approved by the
main Board.
Each part of the Group has access to the Group’s
overdraft facility and all term debt is arranged
centrally. The Group has a core bank facility
which (following the exercise of an option
toextend for a further year in 2022) runsto
November 2026 comprising a revolving credit
facility of £250 million, including acommitted
overdraft facility of £20 million. The facility also
includes an accordion feature which allows an
additional £50 million to be drawn down on the
same terms at any point during the term of the
facility. The Group manages the utilisation
ofthe revolving credit facility through the
monitoring of monthly consolidated cash flow
projections and the daily borrowings position.
The current arrangement provides the Group
with reduced liquidity risk and medium-term
funding to meet its objectives. The unutilised
element of the facilities at 30 March 2024
was£222.0 million (2023: £208.0 million).
Note 21 (Financial Instruments) to the audited
consolidated financial statements is
incorporated into the Directors’ Report
by reference.
Research and development
The Group remains at the forefront of new
product development offering consumers
awide range of products, with the research
anddevelopment expenditure in the year
reaching £29.0 million (2023: £10.8 million).
Through innovative use of existing and
emerging technologies, there will continue
tobe successful development of new products
and processes for the Group.
Political donations
No contributions were made to political parties
during the year ended 30 March 2024
(2023: £nil).
Employee and other
stakeholderconsiderations
Details of the Company’s arrangements for
engaging with employees and actions taken
during the year can be found on pages 51 to 54
of the Strategic Report and page 82 of the
Corporate Governance Report. Details of the
arrangements in place under which employees
can raise any matter of concern are set out
onpage 74. Disclosures relating to the Group’s
human rights and anti-bribery policies are
contained on page 74. The Group’s non-
financial information statement is set out
onpage 74. Details of employee involvement
inCompany performance through share
scheme participation can be found on page
180. Details of how the Directors have engaged
with employees and how theDirectors have had
regard to employee interests and the effect of
that regard on the principal decisions taken by
the Company during the financial year can be
found in the section 172(1) statement on page
47. These are deemed to form part of this
Directors’ Report.
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
135
A summary of how the Company has engaged
with suppliers, customers and other third parties
can be found on pages 55 to 59. Details of how
the Directors have had regard to the need to
foster the Company’s business relationships
with suppliers, customers and others, and the
effect of that regard on the principal decisions
taken by the Company during the financial year
are contained in the Section 172(1) statement
on pages 47 to 50. Further information on our
payment practices with suppliers can be found
on the UK Government’s reporting portal.
In addition, during the year, the Company
supported a range of causes in local communities
requiring assistance. Further details can be
found on pages 62 and63. These are deemed
to form part of thisDirectors’ Report.
Employment policies
The Group’s employment policies can be found
on www.cranswick.co.uk. A description of
actions theGroup has taken to encourage
greater employee involvement in the business
are setout on pages 82 to 83. Such information
isincorporated into this Directors’ Report by
reference and is deemed to form part of this
Directors’ Report.
As an employer, the Group takes reasonable
steps to ensure that recruitment processes
andterms of employment do not discriminate
for reasons related to disability and that
opportunities offered for promotion, transfer,
training or other benefits are the same for all
employees and that a disabled person is not put
at a disadvantage because of their disability.
Environmental matters
Information on our greenhouse gas emissions
energy consumption and energy efficiency
actions required to be disclosed by the
Companies Act 2006 (Strategic Report and
Directors’ Report) Regulations 2013 and
Schedule 7 of the Large and Medium-sized
Companies and Groups (Accounts and
Reports) Regulations 2008/410 is set out
intheSustainability Report on page 30.
Such information is incorporated into this
report by reference and is deemed to form
partof this Directors’ Report.
Information included in the
StrategicReport
Certain information required to be included
inthe Directors’ Report has been set out
intheStrategic Report, including information
tobe disclosed pursuant to section 414C(11)
ofthe Companies Act 2006. The Strategic
Report required by the Companies Act 2006
can be found on pages 2 to 74. The report sets
out the business model (pages 6 to 8), strategy
and likely future developments (pages 18 to
23). It contains a review of the business and
describes the development and performance
ofthe Group’s business during the financial
year and the position at the end ofthe financial
year. It also contains a Viability Statement and
description of the principal risks and
uncertainties facing the Group (pages 68
to72). Such information is incorporated into
this report by reference and is deemed to form
part of this Directors’ Report.
Information required by LR 9.8.4R
There is no information required to be disclosed
under LR 9.8.4R save for details of the Company’s
Long-Term Incentive Plan which canbe found in
the Remuneration Committee Report on pages
123 to 125.
Going concern
The UK Corporate Governance Code 2018
requires the Directors to assess and report
onthe prospects of the Group and whether the
Group is a going concern. Management has
produced forecasts that have been sensitised
to reflect severe yet plausible downside
scenarios which considers the principal risks
faced by the Group, including but not limited
toa loss of consumer demand, an outbreak
ofAvian Influenza impacting our chicken flock
and a widespread outbreak of African Swine
Fever in the UK and Europe, as well as the
Group’s considerable financial resources and
strong trading relationships with its key
customers andsuppliers. These forecasts,
which have been reviewed by the Directors,
lead the Directors tobelieve that the Group
iswell placed to manage its business risk
successfully. The assumptions supporting these
sensitivities have been set out in more detail
inthe Viability Statement on page 73.
After reviewing the available information,
including business plans and downside scenario
modelling and making enquiries, the Directors
have a reasonable expectation that the Group
has adequate resources to continue in
operational existence for at least twelve months
from the date of signing Group financial
statements. For this reason, they continue
toadopt the going concern basis for preparing
these financial statements.
Post balance sheet events
There have been no significant post balance
sheet events to report.
Independent auditors
A resolution to reappoint
PricewaterhouseCoopers LLP as independent
external auditors will be proposed at the AGM,
together with the authority for the Audit
Committee to determine their remuneration.
A statement on the independence of the
external auditors is included in the report
oftheAudit Committee on page 100.
The Directors’ Report was approved by a duly
authorised Committee of the Board on 21 May
2024 and is signed by order of the Board by:
Steven Glover
Company Secretary
21 May 2024
Company number: 1074383
DIRECTORS’ REPORT
CONTINUED
CORPORATE GOVERNANCE
Cranswick plc Annual Report & Accounts 2024
136
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
IN RESPECT OF THE FINANCIAL STATEMENTS
The directors are responsible for preparing
theAnnual Report and Accounts and the
financial statements in accordance with
applicable law and regulation.
Company law requires the directors to prepare
financial statements for each financial year.
Under that law the directors have prepared the
group financial statements in accordance with
UK-adopted international accounting standards
and the company financial statements
inaccordance with United Kingdom Generally
Accepted Accounting Practice (United
Kingdom Accounting Standards, comprising
FRS 101 “Reduced Disclosure Framework”,
andapplicable law).
Under company law, directors must not approve
the financial statements unless they are
satisfied that they give a true and fair view
ofthe state of affairs of the group and company
and of the profit or loss of the group for that
period. In preparing the financial statements,
the directors are required to:
• select suitable accounting policies and then
apply them consistently;
• state whether applicable UK-adopted
international accounting standards have
been followed for the group financial
statements and United Kingdom Accounting
Standards, comprising FRS 101 have been
followed for the company financial
statements, subject to any material
departures disclosed and explained in the
financial statements;
• make judgements and accounting estimates
that are reasonable and prudent; and
• prepare the financial statements on the
going concern basis unless it is inappropriate
to presume that the group and company will
continue in business.
The directors are responsible for safeguarding
the assets of the group and company and hence
for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The directors are also responsible for keeping
adequate accounting records that are sufficient
to show and explain the group’s and company’s
transactions and disclose with reasonable
accuracy at any time the financial position of the
group and company and enable them to ensure
that the financial statements and the Directors’
Remuneration Report comply with the
Companies Act 2006.
The directors are responsible for the
maintenance and integrity of the company’s
website. Legislation in the United Kingdom
governing the preparation and dissemination
offinancial statements may differ from
legislation in other jurisdictions.
Directors’ confirmations
The directors consider that the Annual Report
and Accounts, taken as a whole, is fair, balanced
and understandable and provides the
information necessary for shareholders to
assess the group’s and company’s position and
performance, business model and strategy.
Each of the directors, whose names and
functions are listed in Board of Directors
section on pages 78 and 79 confirm that, tothe
best of their knowledge:
• the group financial statements, which have
been prepared in accordance with UK-
adopted international accounting standards,
give a true and fair view of the assets,
liabilities, financial position and profit
ofthe group;
• the company financial statements, which
have been prepared in accordance with
United Kingdom Accounting Standards,
comprising FRS 101, give a true and fair view
of the assets, liabilities and financial position
of the company; and
• the Strategic Report on pages 2 to 74 ofthis
document includes a fair review of the
development and performance of the
business and the position of the group and
company, together with a description of the
principal risks and uncertainties that it faces.
In the case of each director in office at the date
the directors’ report is approved:
• so far as the director is aware, there is no
relevant audit information of which the
group’s and company’s auditors are unaware;
and
• they have taken all the steps that they ought
to have taken as a director in order to make
themselves aware of any relevant audit
information and to establish that the group’s
and company’s auditors are aware of
that information.
On behalf of the Board
Tim J Smith CBE
Chairman
Mark Bottomley
Chief Financial Officer
21 May 2024
CORPORATE GOVERNANCE
Corporate governance
Cranswick plc Annual Report & Accounts 2024
137
FINANCIAL
STATEMENTS
139
146
147
148
149
150
151
186
187
188
Independent Auditors’ Report
Group Income Statement
Group Statement of Comprehensive Income
Group Balance Sheet
Group Statement of Cash Flows
Group Statement of Changes in Equity
Notes to the Accounts
Company Balance Sheet
Company Statement of Changes in Equity
Notes to the Company Financial Statements
Cranswick plc Annual Report & Accounts 2024
138
FINANCIAL STATEMENTS
INDEPENDENT AUDITORS’ REPORT TO
THE MEMBERS OF CRANSWICK PLC
Report on the audit of the financial statements
Opinion
In our opinion:
• Cranswick plc’s group financial statements and company financial statements (the “financial statements”) give a true and fair view of the state of the
group’s and of the company’s affairs as at 30 March 2024 and of the group’s profit and the group’s cash flows for the 53 week period then ended;
• t he gro up fi na ncia l st ateme nts have be en p rope rly p rep ared in acco rda nce w ith U K-ad opted i nter nati on al acco unt ing s ta nda rds a s app lie d in
accordance with the provisions of the Companies Act 2006;
• t he co mpa ny f ina nci al st atem ent s have be en p rop erl y prep are d in a ccorda nce w ith U nite d Ki ngd om G en era lly Acce pted A ccoun tin g P rac tic e
(UnitedKingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework”, and applicable law); and
• t he fi nan cia l sta teme nts h ave b ee n pre pare d in a ccord ance with the re qu irem ent s of th e Co mpa nie s Ac t 200 6.
We have audited the financial statements, included within the Annual Report & Accounts (the “Annual Report”), which comprise: the group and company
balance sheets as at 30 March 2024; the group income statement, the group statement of comprehensive income, the group statement of cash flows,
and the group and company statements of changes in equity for the period then ended; and the notes to the financial statements, comprising material
accounting policy information and other explanatory information.
Our opinion is consistent with our reporting to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs
(UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,
which includes the FRC’s Ethical Standard, as applicable to listed public interest entities, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard were not provided.
Other than those disclosed in the Audit Committee Report, we have provided no non-audit services to the company in the period under audit.
Our audit approach
Overview Audit scope
• The group is organised into 30 reporting units, all within the UK. The group financial statements are a consolidation
ofthese reporting units and the consolidation journals.
• Of the 30 reporting units, we identified 12 which, in our view, required an audit of their complete financial information,
either due to their size or risk characteristics. We also audited material consolidation journals.
• This covered 76.3 per cent of the group’s revenue and 73.4 per cent of the group’s Adjusted profit before tax.
These coverages are based on absolute values.
• Specific audit procedures over biological assets were performed for a further 4 reporting units due to their contribution
towards the overall biological assets financial statement line item.
• On the remaining 18 reporting units which were not subject to audit of their complete financial information,
weperformedanalytical procedures to respond to any potential risks of material misstatement to the group
financial statements.
Key audit matters
• IAS 41 – Biological assets (group).
• Risk of impairment of investments in subsidiary undertakings and amounts owed by group undertakings (company).
Materiality
• Overall group materiality: £8.8 million (2023: £7.0 million) based on 5% of adjusted profit before tax.
• Overall company materiality: £2.6 million (2023: £2.4 million) based on 1% of total assets capped due to group
materiality allocation.
• Performance materiality: £6.6 million (2023: £5.3 million) (group) and £2.0 million (2023: £1.8 million) (company).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements.
Cranswick plc Annual Report & Accounts 2024
139
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit of the financial statements of the
current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by the auditors, including
those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement
team. These matters, and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
The key audit matters below are consistent with last year.
Key audit matter How our audit addressed the key audit matter
IAS 41 – Biological assets (group)
Refer to page 152 (Judgements and key sources of estimation
uncertainty), note 2 (Accounting Policies) and note 14 (Biological
Assets) of the financial statements. Due to the nature of the group’s
operations, biological assets consisting of pigs and chickens are
measured on initial recognition and at the balance sheet date.
Thesebiological assets have been measured at their fair value less
costs to sell, in line with IAS 41. The net IAS 41 valuation movement
recognised in the period is a credit of £2.2 million (2023: credit
of£7.6 million). We have deemed this to be a Key Audit Matter due
tothe valuation of these biological assets requiring multiple inputs
and judgements, changes in which can have a material impact on
the valuation, and the judgement involved in the classification of
biological assets within the fair value hierarchy.
In auditing management’s valuation of biological assets we performed the
following procedures:
• G ai ned a n un de rst and ing o f, a nd eval uate d the key p roces se s u se d to ca lcul ate
the fair value of the biological assets; and
• Performed a recalculation of both the pig and chicken valuation models
toassess the accuracy of the calculation.
We evaluated management’s key inputs used in relation to the valuation
ofthebiological assets as follows:
• We have agreed the quantity of biological assets, by category, back to
operational data obtained from the farms. We have also attended a sample of
counts at pig farms and obtained third party confirmations for a further sample;
• We have compared the fair value price of the assets at the various stages of
their life cycle to supporting third party data;
• We have compared the mortality assumptions within the models to the
operational data obtained from the farms;
• We have corroborated the growth rate of the chickens to third party source
data and have assessed the reasonableness of the straight line growth
assumption used for pigs; and
• We have considered the appropriateness of the correlation between historic
market prices for sucklers and weaners and the UK Standard Pig Price used for
finisher pigs.
We have performed a sensitivity analysis over the mortality and growth rate
assumptions and confirmed significant movements would be required to result
ina material misstatement.
We have also considered management’s judgement in relation to the classification
of biological assets within the fair value hierarchy.
We found, based on the results of our testing, that the calculation and disclosures
made in the financial statements in relation to the IAS 41 valuation of biological
assets were consistent with the supporting evidence obtained.
INDEPENDENT AUDITORS’ REPORT TO
THE MEMBERS OF CRANSWICK PLC
CONTINUED
Cranswick plc Annual Report & Accounts 2024
140
FINANCIAL STATEMENTS
Key audit matter How our audit addressed the key audit matter
Risk of impairment of investments in subsidiary undertakings
and amounts owed by group undertakings (company)
Refer to note 2 (Accounting Policies), note 9 (Investments)
andnote 10 (Trade and other receivables). The company has
investments in subsidiary undertakings of £155.5 million
(2023:£152.1 million) and amounts owed by group undertakings
of £169.0 million (2023: £161.9 million). Given the magnitude
ofboth of these balances, and the management judgement
involved in determining whether any impairment triggers exist,
wehave considered the risk of impairment of these assets as a
KeyAudit Matter.
In assessing the appropriateness of valuation of investments in subsidiary
undertakings we have performed the following procedures:
• We obtained a schedule of investments in subsidiary undertakings and ensured
this is reconciled to the financial statements;
• We challenged management’s assertion that no impairment triggers were
identified that would necessitate a full impairment review to be performed;
• We performed a review of net assets of the subsidiary entity against the carrying
value, compared the carrying value to the group’s market capitalisation and
also our review of the discounted cash flow models prepared for the purpose
oftesting overall group goodwill for impairment.
• We have reviewed the disclosures included within note 2 and note 9 of the
company accounts and consider these to be appropriate.
Based on these procedures we concluded that there were no triggers that would
indicate the directors were required to perform a full impairment test of the
carrying value of investments in subsidiary undertakings.
In respect of the amounts owed by group undertakings:
• We performed a reconciliation of the amounts owed by group undertakings
and ensured this agrees with the counterparty;
• We evaluated management’s assessment of the recoverability of amounts
owed by group undertakings including assessing the ability of other group
companies to settle the intercompany balances; and
• We also assessed the adequacy of the disclosure provided in note 2 and note
10 of the company financial statements in relation to the relevant
accounting standards.
We found no exceptions as a result of our testing and consider the recoverability
of investments in subsidiary undertakings and amounts owed by group
undertakings to be appropriate.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole, taking
into account the structure of the group and the company, the accounting processes and controls, and the industry in which they operate.
The group is organised into 30 reporting units all within the UK. The group’s financial statements are a consolidation of these reporting units and the
consolidation journals. The reporting units vary in size and we identified 12 reporting units that required an audit of their complete financial information
due to their individual size or risk characteristics. We also audited material consolidation journals.
Specific audit procedures over biological assets were performed for a further 4 reporting units due to their contribution towards the overall biological
assets financial statement line item.
The 12 reporting units where we performed an audit of their complete financial information, and work performed centrally by the group team,
accounted for 76.3 per cent of the group’s revenue and 73.4 per cent of the group’s Adjusted profit before tax. These coverages are based on
absolute values.
The work was performed by a component audit team on 4 of the 12 reporting units. All other work was completed by the group audit team. All reporting
units were audited by PwC in the UK. The group audit team supervised the direction and execution of the audit procedures performed by the
component teams. Our involvement in their audit process, including attending component clearance meetings, review of their supporting working
papers, together with the additional procedures performed at group level, gave us the evidence required for our opinion on the financial statements
asa whole.
On the remaining 18 reporting units which were not subject to an audit of their complete financial information, we performed analytical procedures
torespond to any potential risks of material misstatement to the group financial statements.
Based on our group scoping procedures we identified the parent entity, Cranswick plc, as a component and determined that it required an audit of its
complete financial information due to its individual size and risk characteristics.
The impact of climate risk on our audit
As part of our audit we made enquiries of management to understand the process management adopted to assess the extent of the potential impact
ofclimate risk on the Group’s financial statements and support the disclosures made within the Strategic Report. We also read the Group’s governance
process in response to climate risk.
Management have made commitments to be an operational Net Zero business by 2040.
Management considers the impact of climate risk does not give rise to a potential material financial statement impact.
Cranswick plc Annual Report & Accounts 2024
141
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
The key areas of the financial statements where management evaluated that climate risk has a potential significant impact are the assumptions in relation
to future cash flows used in impairment assessments of the carrying value of non-current assets and revision of the useful economic lives and related net
book values of tangible assets.
Using our knowledge of the business we evaluated management’s risk assessment, its estimates as set out in note 2 of the financial statements and
resulting disclosures where significant. We considered the following areas to potentially be materially impacted by climate risk and consequently
wefocusedourauditwork in these areas: cash flows relating to the impairment assessment of goodwill and intangible assets and property plant
and equipment.
To respond to the audit risks identified in these areas we tailored our audit approach to address these, in particular, we:
• Challenged management on how the impact of climate commitments made by the Group would impact the assumptions within the discounted cash
flows prepared by management that are used in the Group’s impairment analysis;
• Challenged whether the impact of climate risk in the Directors’ assessments and disclosures of going concern and viability were consistent with
management’s climate impact assessment; and
• Where appropriate, performed independent sensitivity analysis to determine to what extent reasonably possible changes in these assumptions could
result in material changes to the goodwill and other intangible assets balance and assessed the appropriateness of the associated disclosures.
We also considered the consistency of the disclosures in relation to climate change (including the disclosures in the Task Force on Climate-related
Financial Disclosures (TCFD) section) within the Annual Report with the financial statements and our knowledge obtained from our audit.
Our procedures did not identify any material impact in the context of our audit of the financial statements as a whole, or our key audit matters for the
period ended 30 March 2024.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with
qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual
financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the financial
statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Financial statements – group Financial statements – company
Overall materiality £8.8 million (2023: £7.0 million). £2.6 million (2023: £2.4 million).
How we determined it 5% of adjusted profit before tax 1% of total assets capped due to group materiality
allocation
Rationale for benchmark applied Adjusted profit before tax excludes the net IAS 41
valuation movement on biological assets and
amortisation and impairment of intangible assets.
We have chosen this as our benchmark as it is a key
performance measure disclosed to users of the
financial statements. This figure takes prominence in
the Annual Report, as well as the communications to
both the shareholders and the market, and an
element of management remuneration is linked to
this performance measure. Based on this we
considered it appropriate to use the Adjusted profit
before tax figure for the period as an appropriate
benchmark.
We believe that total assets is the primary measure
used by the shareholders in assessing the performance
of a holding company, and is a generally accepted
auditing benchmark.
For each component in the scope of our group audit, we allocated a materiality that is less than our overall group materiality. The range of materiality
allocated across components was £1.2 million to £8.0 million.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected
misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our audit and the nature and extent
of our testing of account balances, classes of transactions and disclosures, for example in determining sample sizes. Our performance materiality was
75% (2023: 75%) of overall materiality, amounting to £6.6 million (2023: £5.3 million) for the group financial statements and £2.0 million
(2023: £1.8 million) for the company financial statements.
INDEPENDENT AUDITORS’ REPORT TO
THE MEMBERS OF CRANSWICK PLC
CONTINUED
Cranswick plc Annual Report & Accounts 2024
142
FINANCIAL STATEMENTS
In determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment and aggregation risk and
the effectiveness of controls - and concluded that an amount at the upper end of our normal range was appropriate.
We agreed with the Audit Committee that we would report to them misstatements identified during our audit above £0.4 million (group audit)
(2023: £0.3 million) and £0.2 million (company audit) (2023: £0.2 million) as well as misstatements below those amounts that, in our view, warranted
reporting for qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the group’s and the company’s ability to continue to adopt the going concern basis of accounting included:
• Obtaining from management their latest assessments supporting their conclusions with respect to the going concern basis of preparation of the
financial statements;
• Testing the mathematical integrity of management’s going concern forecast model;
• Evaluating the historical accuracy of the budgeting process to assess the reliability of the data;
• Evaluating management’s base case forecast and downside scenarios, and challenging the adequacy and appropriateness of the underlying
assumptions, including corroborating these to appropriate sources of audit evidence;
• Assessing the appropriateness of downside scenarios including an outbreak of Avian Influenza (“AI”) in all UK poultry farms, an outbreak of African
Swine Fever (“ASF”) in the UK and Europe, and loss of customer demand. Our evaluation also included incorporating further sensitivities to
management’s downside scenarios;
• In conjunction with the above we have also reviewed the terms of the Revolving Credit Facility (“RCF”), and management’s analysis of both liquidity
and covenant compliance to satisfy ourselves that no breaches are anticipated over the period of assessment. We agreed the opening cash position
within the forecast;
• Reviewing management accounts for the financial period to date and checked that these were consistent with the starting point of management’s
forecasts, and supported the key assumptions included in the assessment; and
• Reviewing the disclosures made in respect of going concern included in the financial statements.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively,
may cast significant doubt on the group’s and the company’s ability to continue as a going concern for a period of at least twelve months from when the
financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial
statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the group’s and the company’s ability
tocontinue as a going concern.
In relation to the directors’ reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or draw attention
to in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to adopt the going concern
basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon.
The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly,
we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there
is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed,
weconclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on
these responsibilities.
With respect to the Strategic Report and Directors’ Report, we also considered whether the disclosures required by the UK Companies Act 2006 have
been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as
described below.
Strategic Report and Directors’ Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic Report and Directors’ Report for the
period ended 30 March 2024 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the group and company and their environment obtained in the course of the audit, we did not identify
anymaterial misstatements in the Strategic Report and Directors’ Report.
Cranswick plc Annual Report & Accounts 2024
143
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Directors’ Remuneration
In our opinion, the part of the Annual Report on Directors’ Remuneration to be audited has been properly prepared in accordance with the Companies
Act 2006.
Corporate governance statement
The Listing Rules require us to review the directors’ statements in relation to going concern, longer-term viability and that part of the corporate
governance statement relating to the company’s compliance with the provisions of the UK Corporate Governance Code specified for our review.
Our additional responsibilities with respect to the corporate governance statement as other information are described in the Reporting on other
information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance statement
ismaterially consistent with the financial statements and our knowledge obtained during the audit, and we have nothing material to add or draw
attention to in relation to:
• The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;
• The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify emerging risks and an explanation
ofhow these are being managed or mitigated;
• The directors’ statement in the financial statements about whether they considered it appropriate to adopt the going concern basis of accounting
inpreparing them, and their identification of any material uncertainties to the group’s and company’s ability to continue to do so over a period of at
least twelve months from the date of approval of the financial statements;
• The directors’ explanation as to their assessment of the group’s and company’s prospects, the period this assessment covers and why the period
isappropriate; and
• T he di rec tors’ st atem ent a s to wh ethe r th ey h ave a reas on abl e expe c tati on t hat t he com pa ny w ill b e ab le to co ntin ue i n o pe rati on an d me et it s
liabilities as they fall due over the period of its assessment, including any related disclosures drawing attention to any necessary qualifications
or assumptions.
Our review of the directors’ statement regarding the longer-term viability of the group and company was substantially less in scope than an audit and
only consisted of making inquiries and considering the directors’ process supporting their statement; checking that the statement is in alignment with
the relevant provisions of the UK Corporate Governance Code; and considering whether the statement is consistent with the financial statements and
our knowledge and understanding of the group and company and their environment obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance
statement is materially consistent with the financial statements and our knowledge obtained during the audit:
• The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable, and provides the information
necessary for the members to assess the group’s and company’s position, performance, business model and strategy;
• The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems; and
• The section of the Annual Report describing the work of the Audit Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement relating to the company’s compliance with the Code
does not properly disclose a departure from a relevant provision of the Code specified under the Listing Rules for review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of Directors’ Responsibilities in Respect of the Financial Statements, the directors are responsible for the
preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view.
The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate
the group or the company or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due
to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken
onthe basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined
above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud, is detailed below.
INDEPENDENT AUDITORS’ REPORT TO
THE MEMBERS OF CRANSWICK PLC
CONTINUED
Cranswick plc Annual Report & Accounts 2024
144
FINANCIAL STATEMENTS
Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related
toListing Rules, pensions legislation, employment regulation, health and safety legislation and other legislation specific to the industry in which the
group operates including food safety legislation, and we considered the extent to which non-compliance might have a material effect on the financial
statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006 and
tax legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk
ofoverride of controls), and determined that the principal risks were related to posting manual journal entries to manipulate financial performance,
management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transactions. The group
engagement team shared this risk assessment with the component auditors so that they could include appropriate audit procedures in response to such
risks in their work. Audit procedures performed by the group engagement team and/or component auditors included:
• D iscu ss ion s wit h ma nag em ent , in h ou se le gal team a nd t hose cha rged with govern an ce inc lud ing cons ide rati on of k nown or su spe cte d in sta nces
ofnon-compliance with laws and regulations and fraud;
• Understanding and evaluation of management’s controls designed to prevent and detect irregularities;
• Review of board minutes throughout the year and post year end;
• Identifying and testing unusual journal entries which could represent a heightened risk of manipulation of the financial performance of the business
toensure they are appropriate;
• Testing over period end adjustments; and
• Challenging assumptions and judgements made by management in their significant accounting estimates.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws
andregulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material
misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example,
forgery or intentional misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing techniques. However,
ittypically involves selecting a limited number of items for testing, rather than testing complete populations. We will often seek to target particular items
for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion about the population
from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16
oftheCompanies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose
ortoany other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• we have not obtained all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received from branches not visited
by us; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• the company financial statements and the part of the Annual Report on Directors’ Remuneration to be audited are not in agreement with the
accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
Following the recommendation of the Audit Committee, we were appointed by the members on 24 July 2017 to audit the financial statements for the
year ended 31 March 2018 and subsequent financial periods. The period of total uninterrupted engagement is 7 years, covering the years ended
31 March 2018 to 30 March 2024.
Other matter
The company is required by the Financial Conduct Authority Disclosure Guidance and Transparency Rules to include these financial statements in an
annual financial report prepared under the structured digital format required by DTR 4.1.15R - 4.1.18R and filed on the National Storage Mechanism
ofthe Financial Conduct Authority. This auditors’ report provides no assurance over whether the structured digital format annual financial report has
been prepared in accordance with those requirements.
Hazel Macnamara (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Leeds
21 May 2024
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145
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
GROUP INCOME STATEMENT
FOR THE 53 WEEKS ENDED 30 MARCH 2024
Notes
2024 2023
£’m£’m
Revenue
3
2, 59 9. 3
2 , 32 3. 0
Adjusted Group operating profit
18 5 .1
14 6 . 5
Net IAS 41 valuation movement on biological assets
14
2.2
7. 6
Amortisation of intangible assets
10
(5.0)
(5. 2)
Impairment of intangible assets
10
(15. 4)
(3 .0)
Group operating profit
4
16 6 . 9
14 5 .9
Finance costs
6
(8 .9)
(6 . 4)
Share of net profit of joint venture
13
0. 4
–
Profit before tax
15 8 . 4
13 9. 5
Taxation
7
(4 5. 3)
(2 8 .1)
Profit for the year
113 .1
111. 4
Earnings per share
On profit for the period:
Basic
9
210 . 4p
208.3p
Diluted
9
2 0 9. 7p
2 0 7. 8 p
An analysis of costs within Group operating profit is presented in Note 4.
Cranswick plc Annual Report & Accounts 2024
146
FINANCIAL STATEMENTS
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE 53 WEEKS ENDED 30 MARCH 2024
Notes
2024 2023
£’m£’m
Profit for the year
113 .1
111 . 4
Other comprehensive (expense)/income
Other comprehensive (expense)/income to be reclassified to profit or loss in subsequent periods:
Cash flow hedges
(Losses)/gains arising in the year
19
(0 .1)
0 .1
Reclassification adjustments for (losses)/gains included in the income statement
19
(0 .1)
0. 3
Income tax effect
7
0 .1
(0 .1)
Net other comprehensive (expense)/income to be reclassified to profit or loss in subsequent periods
(0 .1)
0.3
Other comprehensive expense not to be reclassified to profit or loss in subsequent periods:
Actuarial losses on defined benefit pension scheme
25
–
(12 . 5)
Income tax effect
7
–
2.8
Net other comprehensive expense not to be reclassified to profit or loss in subsequent periods
–
(9 .7)
Other comprehensive expense
(0 .1)
(9. 4)
Total comprehensive income
113 . 0
10 2 . 0
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147
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
GROUP BALANCE SHEET
AT 30 MARCH 2024
Notes
27 March
20232022
2024Restated*Restated*
£’m£’m£’m
Non-current assets
Financial asset investment
13
0 .1
–
–
Investment in joint venture
13
0.8
–
–
Intangible assets
10
213 . 5
22 3.2
2 31. 3
Defined benefit pension scheme surplus
25
0. 2
0.2
8.3
Property, plant and equipment
11
518 . 9
4 6 4 .1
434.8
Right-of-use assets
12
92. 4
76 . 3
65.5
Biological assets
14
6. 4
6.3
2 .7
Total non-current assets
8 32 . 3
7 7 0 .1
74 2 . 6
Current assets
Biological assets
14
83 .7
72 .8
50 .7
Inventories
15
113 . 7
113 . 0
1 05.2
Trade and other receivables
16
32 5 . 3
288. 5
244 .4
Other financial assets
17
–
0 .1
–
Income tax receivable
2.0
–
–
Cash and short-term deposits
26
2 7. 0
20.3
0 .2
Total current assets
5 51. 7
494 . 7
40 0. 5
Total assets
1, 3 8 4 .0
1 ,264. 8
1 ,1 4 3 .1
Current liabilities
Trade and other payables
18
(310 . 0)
(268.5)
(23 8 .7)
Other financial liabilities
19
(2 .3)
(0 .1)
(3 .1)
Lease liabilities
12
(17. 3)
(14 . 4)
(13 . 8)
Provisions
20
(1. 8)
(0 .8)
(1. 8)
Income tax payable
–
(4 . 3)
(2. 4)
Total current liabilities
(3 31. 4)
(2 8 8 .1)
(2 5 9. 8)
Non-current liabilities
Other payables
18
(0 .9)
(0. 4)
(0 . 6)
Other financial liabilities
19
(2 7.1)
(4 3. 2)
(3 6. 4)
Lease liabilities
12
(82 .1)
(6 6 . 8)
(56.0)
Deferred tax liabilities
7
(28 . 4)
(20 .7)
(19. 7)
Provisions
20
(2 . 6)
(2.7)
(1.7)
Total non-current liabilities
(1 41 .1)
(13 3 . 8)
(114 . 4)
Total liabilities
(472 . 5)
(4 21.9)
(3 74 . 2)
Net assets
9 11 . 5
8 4 2 .9
76 8 . 9
Equity
Called-up share capital
22
5.4
5.4
5.3
Share premium account
12 8 . 3
12 3 . 9
11 5 . 9
Share-based payments
24
11 . 8
9. 5
10 .9
Shares held in trust
23
(15 . 6)
–
–
Hedging reserve
(0 .1)
–
(0 .3)
Retained earnings
781. 7
7 0 4 .1
6 3 7.1
Total equity attributable to owners of the Parent
9 11 . 5
8 4 2 .9
76 8 . 9
* See note 2 for details regarding the restatement as a result of a change in accounting policy.
The financial statements on pages 146 to 185 were approved by the Board of Directors on 21 May 2024 and signed on its behalf by
Tim J Smith CBE Mark Bottomley
Chairman Chief Financial Officer
21 May 2024
Cranswick plc Annual Report & Accounts 2024
148
FINANCIAL STATEMENTS
Notes
2024 2023
£’m£’m
Operating activities
Profit for the year
11 3 . 1
111. 4
Adjustments to reconcile Group profit for the year to net cash inflows from operating activities:
Income tax expense
7
45. 3
2 8 .1
Net finance costs
6
8 .9
6.4
Loss/(gain) on sale of property, plant and equipment
1.0
(0 .5)
Loss on disposal of right-of-use asset
0. 2
–
Depreciation of property, plant and equipment
11
65.5
5 4 .1
Depreciation of right-of-use assets
12
16 . 2
14 . 7
Amortisation of intangible assets
10
5.0
5 .2
Impairment of intangible assets
10
15 . 4
3.0
Share-based payments
8.8
4.7
Difference between pension contributions paid and amounts recognised in the income statement
–
(4 . 4)
Share of net profit of joint venture
(0. 4)
–
Release of Government grants
(0. 4)
(0. 2)
Net IAS 41 valuation movement on biological assets
14
(2 . 2)
(7. 6)
Increase in biological assets
(1. 3)
(18 .1)
Decrease/(increase) in inventories
0.3
(7. 7 )
Increase in trade and other receivables
(3 3. 8)
(4 4 . 8)
Increase in trade and other payables
28. 2
29 . 1
Cash generated from operations
26 9. 8
17 3 . 4
Tax paid
(41. 4)
(2 0.4)
Net cash from operating activities
228 . 4
15 3 . 0
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired
13
(23 . 5)
0 .1
Payment of property, plant and equipment acquired on acquisition
13
(9 .1)
–
Purchase of financial asset investment
13
(0 .1)
–
Purchase of property, plant and equipment
(91. 4)
(8 5 .1)
Proceeds from sale of property, plant and equipment
0.8
1 .2
Net cash used in investing activities
(12 3 . 3)
(83 . 8)
Cash flows from financing activities
Interest paid
(5.0)
(3.8)
Proceeds from issue of share capital
4.4
3.7
Own shares purchased
23
(15 . 6)
–
Issue costs of long-term borrowings
–
(0. 4)
(Repayment of)/proceeds from borrowings
(14 . 0)
4.0
Repayment of borrowings acquired
13
(6 . 5)
–
Dividends paid
8
(4 3.9)
(36.3)
Payment of lease capital
(14 . 2)
(13 . 8)
Payment of lease interest
(3 . 6)
(2. 5)
Net cash used in financing activities
(98 . 4)
(4 9 .1)
Net increase in cash and cash equivalents
26
6.7
2 0 .1
Cash and cash equivalents at beginning of year
26
20.3
0 .2
Cash and cash equivalents at end of year
26
2 7. 0
20. 3
GROUP STATEMENT OF CASH FLOWS
FOR THE 53 WEEKS ENDED 30 MARCH 2024
Cranswick plc Annual Report & Accounts 2024
149
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE 53 WEEKS ENDED 30 MARCH 2024
Share Share Share-based Shares held Hedging
capital premium payments intrustreserve Retained Total
NoteNoteNoteNoteNoteearnings equity
£’m£’m£’m£’m£’m£’m£’m
At 26 March 2022 as originally presented
5.3
115 .9
44.3
–
(0. 3)
6 0 3.7
76 8 .9
Change in accounting policy
–
–
(3 3.4)
–
–
33.4
–
Total equity at the beginning of the
financialyear (restated*)
5. 3
11 5 . 9
10.9
–
(0. 3)
6 3 7.1
76 8 .9
Profit for the year
–
–
–
–
–
111. 4
111. 4
Other comprehensive expense
–
–
–
–
0.3
(9 .7)
(9. 4)
Total comprehensive income
–
–
–
–
0.3
101.7
10 2 . 0
Share-based payments
–
–
4.7
–
–
–
4 .7
Exercise, lapse or forfeit of share-based
payments (restated*)
–
–
(6 .1)
–
–
6 .1
–
Scrip dividend
–
4.4
–
–
–
–
4.4
Share options exercised
0 .1
3.6
–
–
–
–
3.7
Dividends
–
–
–
–
–
(4 0 .7)
(4 0 .7)
Deferred tax related to changes in equity
–
–
–
–
–
(0 .9)
(0 .9)
Current tax related to changes in equity
–
–
–
–
–
0.8
0.8
At 25 March 2023 (restated*)
5. 4
12 3 .9
9. 5
–
–
70 4 .1
8 4 2 .9
At 25 March 2023 as originally presented
5.4
12 3 .9
4 9. 0
–
–
66 4.6
8 4 2 .9
Change in accounting policy
–
–
(3 9. 5)
–
–
3 9. 5
–
Total equity at the beginning of the financial
year (restated*)
5.4
12 3 .9
9. 5
–
–
70 4 .1
8 4 2 .9
Profit for the year
–
–
–
–
–
113 .1
11 3 . 1
Other comprehensive expense
–
–
–
–
(0 .1)
–
(0 .1)
Total comprehensive income
–
–
–
–
(0 .1)
113 .1
113 . 0
Share-based payments
–
–
8.8
–
–
–
8.8
Shares acquired by Employee Benefit Trust
–
–
–
(15 . 6)
–
–
(15 . 6)
Exercise, lapse or forfeit of share-based
payments
–
–
(6 . 5)
–
–
6.5
–
Share options exercised
–
4 .4
–
–
–
–
4.4
Dividends
–
–
–
–
–
(4 3 .9)
(4 3 .9)
Deferred tax related to changes in equity
–
–
–
–
–
1. 4
1. 4
Current tax related to changes in equity
–
–
–
–
–
0.5
0.5
At 30 March 2024
5.4
12 8 . 3
11. 8
(15 . 6)
(0 .1)
7 81. 7
911 . 5
(a)
(b)
(c)
(d)
(e)
* See note 2 for details regarding the restatement as a result of a change in accounting policy.
Notes:
(a) Share capital
The balance classified as share capital represents the nominal value of ordinary 10 pence shares issued.
(b) Share premium
The balance classified as share premium includes the net proceeds in excess of nominal value on issue of the Company’s equity share capital, comprising 10 pence ordinary shares.
(c) Share-based payments reserve
This reserve records the fair value of share-based payments expensed in the income statement, and in the case of the Company in relation to share-based payments to employees of subsidiary companies,
capital contributions to cost of investments. The value of shares that have exercised, lapsed or forfeit is credited to Retained earnings.
(d) Shares held in trust
The shares held in trust are intended to be granted to the beneficiaries of the Group’s SAYE and Long-Term Incentive Plan (LTIP) when the relevant conditions of the SAYE and LTIP are satisfied,
with a transfer between the Shares held in trust reserve and Retained earnings.
(e) Hedging reserve
This reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an effective hedge.
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FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS
1. Authorisation of Financial Statements and Statement of Compliance with IFRSs
The Group financial statements of Cranswick plc for the 53 weeks ended 30 March 2024 were authorised for issue by the Board of Directors
on 21 May 2024 and the Balance Sheet was signed on the Board’s behalf by Tim Smith and Mark Bottomley.
Cranswick plc is a public limited company incorporated and domiciled in England, United Kingdom (Company number: 1074383, registered office:
Crane Court, Hesslewood Country Office Park, Ferriby Road, Hessle, East Yorkshire HU13 0PA). The Company’s ordinary shares are traded on the
London Stock Exchange.
The Group financial statements have been prepared in accordance with UK-Adopted International Accounting Standards (‘UK-Adopted IAS’) and with
the requirements of the Companies Act 2006 as applicable to companies reporting under those standards. The principal accounting policies adopted
by the Group are set out in Note 2.
2. Accounting Policies
Basis of preparation
The consolidated financial statements of Cranswick plc have been prepared under the historical cost convention except where measurement
of balances at fair value is required as explained in the accounting policies below. The Group’s financial statements have been prepared in accordance
with UK-Adopted International Accounting Standards (‘UK-Adopted IAS’). The Group’s financial statements have been prepared in accordance with
international accounting standards in conformity with the requirements of the Companies Act 2006.
The Financial Statements of the Group are prepared to the last Saturday in March. Accordingly, these Financial Statements are prepared for the 53 week
period ended 30 March 2024. Comparatives are for the 52 week period ended 25 March 2023. The Balance Sheets for 2024, 2023 and 2022 have
been prepared as at 30 March 2024, 25 March 2023 and 27 March 2022 respectively. The 2023 and 2022 Balance Sheets have been restated
following a change in accounting policy. For more details, please see below.
These Financial Statements are presented in Pounds Sterling because that is the currency of the primary economic environment in which the Group
operates. Foreign operations are included in accordance with the foreign currency policy set out below.
A summary of the principal accounting policies is presented below.
Going concern
The UK Corporate Governance Code 2018 requires the Directors to assess and report on the prospects of the Group and whether the Group is a
going concern. Management has produced forecasts that have been sensitised to reflect severe yet plausible downside scenarios which consider the
principal risks faced by the Group, including but not limited to a loss of consumer demand, an outbreak of Avian Influenza impacting our chicken flock
and a widespread outbreak of African Swine Fever in the UK and Europe, as well the Group’s considerable financial resources and strong trading
relationships with its key customers and suppliers. These forecasts, which have been reviewed by the Directors, lead the Directors to believe that
the Group is well placed to manage its business risk successfully. The assumptions supporting these sensitivities have been set out in more detail
in the longer-term viability statement on page 73. After reviewing the available information, including business plans and downside scenario modelling
and making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for at
least twelve months from the date of signing Group financial statements. For this reason, they continue to adopt the going concern basis for preparing
these financial statements.
Basis of consolidation
The Group financial statements consolidate the financial statements of Cranswick plc and its subsidiaries. The results of undertakings acquired or sold
are consolidated for the periods from the date of acquisition or up to the date of disposal. Acquisitions are accounted for under the acquisition method
of accounting.
The consolidated financial statements comprise the financial statements of the Group and its subsidiaries for the 53 week period ended 30 March 2024.
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those
returns through its power over the investee.
Specifically, the Group controls an investee if and only if the Group has:
• power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);
• exposure, or right, to variable returns from its involvement with the investee; and
• the ability to use its power over the investee to affect its returns.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three
elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control
of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the statement of
comprehensive income from the date the Group gains control until the date the Group ceases to control the subsidiary .
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting
policies. All intra-Group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are
eliminated in full on consolidation.
Judgements and key sources of estimation uncertainty
The preparation of the Group financial statements requires management to make judgements, estimates and assumptions that affect the amounts
reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year.
In the process of applying the Group’s accounting policies, management has made the following estimations and judgements, which will most likely
have a significant effect on the amounts recognised in the financial statements in the next 12 months:
Cranswick plc Annual Report & Accounts 2024
151
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
2. Accounting Policies (continued)
Significant estimates and assumptions:
Share-based Note 24 – measurement of share-based payments.
payments The fair value of share-based payments is estimated using inputs including expected share price volatility, the expected life of the
options and the number of awards that will ultimately vest. This estimate is not expected to have a material impact on the next 12 months.
Pensions
Note 25 – pension scheme actuarial assumptions.
The valuation of the defined benefit pension scheme is determined using assumptions including mortality, discount rates and inflation.
Goodwill
Note 10 – intangible assets.
The carrying value of Goodwill is tested annually for impairment. For each cash-generating unit (‘CGU’) the recoverable amount
is determined as the value-in-use.
For value-in-use models, the sensitivity of the assumptions applied in the model, including the estimated risk-adjusted future pre-tax
cash flows, which are derived from Board approved budgets, and the pre-tax discount rate applied, which represents the Group’s
pre-tax weighted average cost of capital (WACC), carries most of the estimation uncertainty.
Refer to Note 10 for the sensitivity analysis of key assumptions on the value-in-use calculations and impairment outcomes.
Biological Note 14 – growth rate assumptions used in the fair value model.
assets Pigs
The key estimate in determining the fair value of pigs is market prices.
Quoted (unadjusted) prices in an active market are no longer available for sucklers and weaners. The Group’s valuation model for
sucklers and weaners is therefore a function of the UK Standard Pig Price (SPP) for finished pigs since historic data suggests that
prices for sucklers, weaners and finished pigs were strongly correlated. The derived prices for sucklers and weaners are then adjusted
to reflect the growth of the pigs through a straight-line interpolation based on age, to provide a value for the pigs at a particular stage
of growth. As suckler and weaner prices are no longer observable in the market, management concludes these prices fall within Level
3 of the fair value hierarchy. Refer to Note 21 for key assumptions about unobservable inputs, their relationship to fair value and
sensitivity analysis.
The Group’s valuation model for finished pigs utilises quoted (unadjusted) prices in an active market. The prices are then adjusted
to reflect the growth of the animals through straight-line interpolation between prices to provide a value for the finished pigs at a
particular stage of growth. As the estimated weaner price used in the straight-line interpolation for finished pigs is no longer
observable in the market, management concludes these prices fall within Level 3 of the fair value hierarchy.
Poult ry
Estimates in determining the fair value of poultry relate to market prices.
The valuation for broiler birds uses recent transaction prices at various stages of development. The prices are then adjusted to reflect
the growth of the birds through interpolation between the transaction prices. Interpolation is used as an approximate growth rate.
Estimates relating to biological assets are not expected to have a material impact on the next 12 months.
Significant judgements:
Share-based Note 24 – measurement of share-based payments.
payments The selection of valuation models requires the use of management’s judgement. The fair value of share-based payments is estimated
as at the date of grant using a Black-Scholes option pricing model or a stochastic option pricing model.
Goodwill
Note 10 - intangible assets
The level at which goodwill is tested for impairment involves judgement. Management assess the nature of the individual businesses
as well as the internal information presented to the Board to determine the level at which goodwill is monitored for the purpose of
goodwill impairment testing. Changes to this assessment could impact the value-in-use calculation, affecting the conclusion of
whether assets’ carrying amounts are recoverable. Following a review completed earlier in the year, the goodwill impairment
assessment for the Fresh Pork and Livestock CGUs is completed on a combined basis consistent to how it is monitored by the
management. The resulting change does not impact management’s assessment of goodwill impairment considerations in the current
period or prior years.
Pensions
Note 25 – pension scheme actuarial assumptions.
The Group has the right to recover any remaining surplus on the winding up of the pension scheme. The expected method of recovery
of the recognised pensions surplus is through reduction in future contributions or recovery of any remaining surplus through a refund.
Management have applied judgement on the scheme rules to conclude the Group has the right to a refund. The rules state that
any surplus remaining in the hands of the Trustees may, at the discretion of the Trustees, be used to increase the pensions
payable or contingently payable to Members and/or their Dependents. Any surplus remaining in the hands of the Trustees after
making such provision (if any) shall be paid to the Employers. Management have formed the judgement, based on paragraph BC10
of IFRIC 14, that the right to the surplus is not affected by future acts that could change the amount of surplus that could ultimately
be recovered. The Trustees ability to use discretion and choose to grant benefit improvements (thus reducing the surplus) has
therefore not been anticipated and does not remove the Company’s unconditional right to the surplus.
Alternative Note 30 – alternative performance measures.
performance Management apply judgement to identify the significant non-cash items to exclude when calculating adjusted performance measures.
measures The Board believe alternative measures are useful as they exclude volatile, one-off and non-cash items.
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
152
FINANCIAL STATEMENTS
Other estimates and judgements have been applied by management in producing the Annual Report and Accounts including, but not limited
to, depreciation and amortisation rates. However, these are not considered to have a significant risk of material adjustment.
Consideration of climate change
In preparing the financial statements, the Directors have considered the impact of climate change, particularly taking into account disclosures made
in the Strategic Report including those made in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures.
This included an assessment of goodwill and other intangible assets and how they could be impacted by measures taken to address global warming.
There has not been a material impact on the financial reporting judgements and estimates in the current year, which is consistent with conclusions
reached that climate change is not expected to have a material impact on the Group’s cash flows in the short- to medium-term including those
considered in the going concern and viability assessments. When making this assessment, the Directors have considered assumptions in relation
to the future cash flows used in impairment assessments of the carrying value of non-current assets; estimates of future profitability in assessment
of the recoverability of deferred tax asset and revision of the useful economic lives and related net book values of our tangible assets.
Ongoing capital projects, relating to our Second Nature sustainability strategy and targets, such as solar panels, ammonia plant and effluent treatment
projects, are, to the extent known, included in the annual budgets for each business and the carrying values of assets they may replace have been
reviewed for appropriateness.
Accounting standards or interpretations which have been adopted in the year
From 26 March 2023, the following standards and amendments are effective in the Group’s consolidated Financial Statements:
• IFRS 17 ‘Insurance Contracts’;
• Amendments to IAS 8 ‘Accounting policies, Changes in Accounting Estimates and Errors’, distinguishing changes in accounting estimates from
changes in accounting policies;
• Amendments to IAS 1 ‘Presentation of Financial Statements’, disclosure of accounting policies and materiality judgements;
• Amendments to IAS 12 ‘Income taxes’, ‘International Tax Reform – Pillar Two Model Rules’.
There has been no material impact on the consolidated Financial Statements from any amendments effective during the year.
Amendments to IAS 12 ‘Income Taxes’: on 7 May 2021, the IASB issued amendments to IAS 12 ‘Income Taxes’ relating to deferred tax on assets and
liabilities arising from a single transaction. The amendments require companies to recognise deferred tax on transactions that on initial recognition give
rise to equal amounts of taxable and deductible temporary differences. This amendment has been adopted by the Group from 26 March 2023 and has
resulted in an increase in the deferred tax asset and liability by the same amount. The prior year comparative figures have been amended in line with IAS
12 ‘Income Taxes’.
Accounting standards or interpretations issued but not yet effective
Apart from IFRS 18 ‘Presentation and Disclosure in Financial Statements’, there were no accounting standards or interpretations issued which have
an effective date after the date of these consolidated financial statements that the Group reasonably expects to have an impact on disclosures, financial
position or performance.
Change in accounting policy
The Group changed its accounting policy for share-based payments such that the value of shares that have exercised, lapsed or forfeit is now credited
to Retained earnings as opposed to remaining within the Share-based payment reserve.
The change in accounting policy had no impact upon the Group Income Statement, Group Statement of Comprehensive Income, Group Statement
of Cash Flows, net assets of the Group, or the Group distributable reserves. The change in accounting policy enables the readers of the financial
statements to identify the cumulative value of share-based payments that are still to be exercised, lapse or forfeit.
The impact of the change in accounting policy is detailed in the Group Statement of Changes in Equity.
There is no change to basic and diluted earnings per share arising from the change in accounting policy.
Revenue
Revenue is recognised as the performance obligation is satisfied and is recorded based on the amount of consideration expected to be received
in exchange for satisfying the performance obligation. The performance obligation is satisfied when control of the goods has passed to the buyer which,
depending on the contract, is either on despatch of goods or on delivery of goods. Revenue represents the value of sales to customers net of discounts,
similar allowances and estimates of returns and excludes value added tax. The Group does not adjust any of the transaction prices for the time value
of money due to the nature of the Group’s transactions being completed soon after the transaction is entered into.
Sales related discounts and similar allowances comprise (commercial accruals):
• Volume rebates and similar allowances – which are sales incentives to customers to encourage them to purchase increased volumes and are related
to total volumes purchased and sales growth.
• Advertising and marketing contributions – which are directly related to promotions run by customers.
For commercial accruals that must be earned, management make estimates related to customer performance, sales volume and agreed terms,
to determine total amounts earned and to be recorded in deductions from revenue.
2. Accounting Policies (continued)
Cranswick plc Annual Report & Accounts 2024
153
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
2. Accounting Policies (continued)
Alternative performance measures
The Board monitors performance principally through the adjusted performance measures. Adjusted profit and earnings per share measures exclude
certain non-cash items including the net IAS 41 valuation movement on biological assets, and amortisation and impairment of intangible assets.
Free cash flow is defined as net cash from operating activities less interest paid, and like-for-like revenue excludes the benefit of acquisitions in the
current year and the current year contribution of prior year acquisitions, prior to the anniversary of purchase, and the impact of the 53
rd
week of trading.
Return on capital employed is a key performance indicator for the Group and is defined as adjusted operating profit divided by the sum of average
opening and closing net assets, net debt/(funds), pension liability/(surplus) and deferred tax.
The Board believes that such alternative measures are useful as they exclude volatile (net IAS 41 valuation movement on biological assets), one-off
(impairment of intangible assets) and non-cash (amortisation of intangible assets) items which are normally disregarded by investors, analysts and
brokers in gaining a clearer understanding of the underlying performance of the Group when making investment and other decisions. Equally, like-for-
like revenue provides these same stakeholders with a clearer understanding of the organic sales growth of the business. (Reconciliations of alternative
performance measures can be found in Note 30).
Taxation
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates
and laws that are enacted or substantively enacted by the balance sheet date. Deferred tax is provided on temporary differences at the balance sheet
date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences:
i) except where the deferred income tax liability arises from the initial recognition of goodwill or the initial recognition of an asset or liability
in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit or loss; and
ii) in respect of taxable temporary differences associated with investments in subsidiaries, except where the timing of the reversal of the temporary
differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the
extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profits will be available against which
the temporary differences can be utilised:
i) except where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset
or a liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss; and
ii) in respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are only recognised to the extent
that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the
temporary differences can be utilised.
Deferred tax assets and liabilities within the same tax jurisdiction are offset where there is a legally enforceable right to offset current tax assets against
current tax liabilities and where there is an intention to settle these balances on a net basis.
Deferred income tax assets and liabilities are measured at the tax rates that apply to the period when the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Income taxes relating to items recognised in other
comprehensive income or directly in equity are also recognised in other comprehensive income or directly in equity and not in the income statement.
Otherwise income tax is recognised in the income statement.
Dividends
Dividends receivable by the Group are recognised in the income statement if they are declared, appropriately authorised and no longer at the discretion
of the entity paying the dividend, prior to the balance sheet date. Dividends payable to the Shareholders are recognised when declared and therefore
final dividends proposed after the balance sheet date are not recognised as a liability at the balance sheet date. Dividends paid to Shareholders are
shown as a movement in equity rather than on the face of the income statement.
Business combinations
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration
transferred, measured at acquisition date fair value. The identifiable assets acquired and the liabilities assumed are measured at their acquisition-date
fair values. Acquisition costs incurred are expensed and included in administrative expenses.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Subsequent changes to the fair
value of the contingent consideration which is deemed to be an asset or liability will be recognised in profit or loss.
For each business acquired during the year separate disclosure will be made detailing the name of each business, the principal activity, the date
of acquisition and the percentage of share capital acquired. Further disclosures will be detailed separately for those acquisitions that are considered
to be material, and disclosures will be given in aggregate for any individually immaterial acquisitions.
Joint ventures
The Group’s interest in joint ventures is accounted for using the equity method. Under this method the Group’s share of the profit or loss of joint ventures
is included in the Group Income Statement and the Group share of joint ventures net assets is included in the Group Balance Sheet, less
dividends received.
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
154
FINANCIAL STATEMENTS
2. Accounting Policies (continued)
Purchase of shares held in trust
The Shares held in trust reserve relates to ordinary shares in Cranswick plc which are held in an Employee Benefit Trust set up in May 2020.
The shares held in trust are intended to be granted to the beneficiaries of the Group’s SAYE and Long-Term Incentive Plan (LTIP) when the relevant
conditions of the SAYE and LTIP are satisfied, with a transfer between the Shares held in trust reserve and Retained earnings.
Intangible assets
Intangible assets acquired as part of an acquisition of a business are capitalised at fair value separately from goodwill only if the fair value can be
measured reliably on initial recognition and the future economic benefits are expected to flow to the Group. Customer relationships and trademarks
are amortised evenly over their expected useful lives of five years, with amortisation charged through administration expenses in the income statement.
Goodwill is the excess of the fair value of the consideration paid for a business over the fair value of the identifiable assets, liabilities and contingent
liabilities acquired. Goodwill is capitalised and subject to an impairment review, both annually and when there are indications that the carrying value
may not be recoverable.
Impairment is determined for goodwill by assessing the recoverable amount of the cash-generating unit (CGU) to which the goodwill relates. Where the
recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Previously recognised impairment losses of goodwill
are not reversed subsequently. When an entity is disposed of, any goodwill associated with it is included in the carrying amount of the operation when
determining the gain or loss on disposal except that goodwill arising on acquisitions prior to 31 March 2004 which was previously deducted from equity
is not recycled through the income statement.
Property, plant and equipment
Property, plant and equipment are included at cost less accumulated depreciation and any provision for impairment.
Freehold land is not depreciated. Depreciation is charged on property, plant and equipment on the depreciable amount, being cost less the estimated
residual value (based on prices prevailing at the balance sheet date) on a straight-line basis over their estimated useful economic lives, or the estimated
useful economic lives of their individual parts.
Useful economic lives are principally as follows:
Freehold buildings 20–50 years
Plant, equipment and vehicles 3–11 years
The carrying value of property, plant and equipment is reviewed for impairment individually or at the cash-generating unit level when events or changes
in circumstances indicate that the carrying value may not be recoverable.
Capitalised borrowing costs
Borrowing costs incurred in financing the construction of qualifying assets within property, plant and equipment are capitalised up to the date at which
the relevant asset is substantially complete. Borrowing costs are calculated using the Group’s weighted average cost of borrowing during the period
of capitalisation. All other borrowing costs are expensed as incurred.
Accounting for leases
The Group leases various properties, farming units, equipment and motor vehicles. Rental contracts are typically made for fixed periods of 2
to 15 years but may have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes.
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group.
Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the income statement over the lease period so as
to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the
shorter of the asset’s useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following
lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• variable lease payments that are based on an index or a rate;
• amounts expected to be payable by the Group under residual value guarantees;
• the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
• payments of penalties for terminating the lease, if that lease term and payments includes options that are reasonable certain to be exercised.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group’s weighted average
incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value
in a similar economic environment with similar terms and conditions.
Right-of-use assets are measured at cost, comprising the following:
• the amount of the initial measurement of lease liability;
• any lease payments made at or before the commencement date less any lease incentives received;
• any initial direct costs; and
• restoration costs.
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FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
2. Accounting Policies (continued)
Under IFRS 16, right-of-use assets are tested for impairment in accordance with IAS 36 Impairment of Assets and any impairment is provided
for by writing down the asset value.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in the income statement.
Short-term leases are leases with a lease term of 12 months or less. Low-value assets primarily comprise IT equipment.
Government grants and contributions
Business Investment Scheme payments as well as Government grants from the Rural Payments Agency, Regional Growth Fund, Rural Development
Programme for England in respect of property, plant and equipment and slurry acidification are credited to deferred income and released to the income
statement over the relevant depreciation period.
Inventories
Inventories are stated at the lower of cost (on a first-in, first-out basis) and net realisable value after making allowance for any obsolete or slow-moving
items. In the case of finished goods, cost comprises direct materials, direct labour and an appropriate proportion of manufacturing fixed and variable
overheads, where applicable, based on a normal level of activity.
Biological assets
The Group’s biological assets consist of pigs in the form of breeding sows (classified as non-current assets) and their progeny for processing within
the Group and externally (classified as current assets) and chickens in the form of breeder stocks (classified as non-current assets) and their progeny
for processing within the Group and externally (classified as current assets).
On initial recognition and at the balance sheet date biological assets have been measured at their fair value less costs to sell, in line with IAS 41.
Cost to sell include incremental selling costs, comprising of transport and administrative costs.
Gains and losses in relation to the fair value of biological assets are recognised in the income statement, within ‘cost of sales’, in the period in which
they arise.
Farming costs associated with biological assets, such as feeding, labour costs and veterinary services are expensed as incurred. The cost of purchase
of pigs and poultry are capitalised as part of biological assets.
Cash and cash equivalents
Cash and cash equivalents are defined as cash at bank and in hand, including short-term deposits with original maturity within three months.
For the purposes of the Group cash flow statement, cash and cash equivalents consist of cash and cash equivalents net of outstanding bank overdrafts.
Cash and cash equivalents includes BACS receipts in flight at the reporting date for transactions where control is considered to have passed
to the Group. BACS payments in flight at the reporting date are excluded from cash and cash equivalents as control is deemed to have passed from
the Group.
Financial instruments
i) Debt instruments, including bank borrowings
Debt instruments are initially recognised at the fair value of net proceeds received after the deduction of issue costs. Subsequently, debt
instruments are recognised at amortised cost using the effective interest method. Issue costs are charged to the income statement over the term
of the debt at a constant rate on the balance sheet carrying amount under the effective interest method.
The nature of the draw downs under the Revolving Credit Facility are high volume and quick turnover and therefore the Group has elected to illustrate
the drawdowns and repayments net within the Cash flow statement.
ii) Derivative financial instruments
The Group uses derivative financial instruments such as foreign currency contracts and interest rate swaps to hedge its cash flow risks associated
with interest rate and foreign currency fluctuations. Such derivative financial instruments are stated at fair value.
The fair value of forward contracts is calculated by reference to current forward exchange rates for contracts with a similar maturity profile.
The fair value of interest rate swaps is determined by reference to market values for similar instruments.
Where derivatives meet the hedging criteria under IFRS 9 for cash flow hedges the portion of the gain or loss on the hedging instrument that
is determined to be an effective hedge is recognised directly in other comprehensive income and the ineffective portion is recognised in the income
statement. Gains or losses recognised in comprehensive income are transferred to the income statement in the same period in which the hedged item
affects the net profit or loss. If a forecast transaction is no longer expected to occur, amounts previously recognised in other comprehensive income are
transferred to the income statement.
For derivatives that do not qualify for hedge accounting under IFRS 9, any gains or losses arising from changes in fair value are taken directly to profit or
loss for the period.
Trade receivables
Trade receivables are recognised initially at the amount of consideration that is unconditional. The Group holds trade receivables with the objective
of collecting the contractual cash flows so they are subsequently measured at amortised cost using the effective interest method, less loss allowance.
Gains and losses are recognised in the income statement when receivables are derecognised or impaired.
The Group uses a model to calculate expected credit losses (ECL). The provision is calculated by reviewing the lifetime expected credit losses using
both historic and forward looking data. Balances are written off when the probability of recovery is assessed as being remote.
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
156
FINANCIAL STATEMENTS
2. Accounting Policies (continued)
Foreign currencies
In the accounts of each entity in the Group, individual transactions denominated in foreign currencies are translated into functional currency
at the actual exchange rates ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated
into the functional currency at the rates ruling at the balance sheet date. Profits and losses on settlement of individual foreign currency transactions
and movements on monetary assets and liabilities are dealt with in the income statement.
Employee benefits
i) Pensions
A subsidiary of the Group operates a defined benefit pension scheme for certain employees which requires contributions to be made to a separate
trustee administered fund. The scheme was closed to new members on 30 June 2004.
The asset recognised in the balance sheet in respect of the defined benefit pension scheme is the present value of the fair value of plan assets
less the defined benefit obligation at the balance sheet date, together with adjustments for unrecognised past-service costs. The defined benefit
obligation is calculated annually by independent actuaries using the projected unit method. The present value of the defined benefit obligation
is determined by discounting the estimated future cash outflows using interest rates of high quality corporate bonds that are denominated
in Sterling, and that have terms to maturity approximating to the terms of the related pension liability.
With a buy-in, the insurance policy asset is valued at an amount equal to the present value of the defined benefit obligation. The difference between
the value of the liabilities and the asset valuation at the point in time the insurance policy is acquired is recognised in Other Comprehensive Income
as it is an actuarial loss arising on the exchange of one plan asset for another.
The Group also operates defined contribution schemes for employees under which contributions are paid into schemes managed by major
insurance companies. Contributions are calculated as a percentage of employees’ earnings and obligations for contributions to the schemes
are recognised as cost of sales or operating expenses in the income statement in the period in which they arise.
ii) Equity-settled share-based payments
The Group operates a savings related share option scheme under which options have been granted to Group employees (SAYE scheme).
In addition, the Group operates a Long-Term Incentive Plan (LTIP) for Senior Executives. Share options awarded are exercisable subject to the
attainment of certain market-based and non-market-based performance criteria.
The cost of equity-settled transactions with employees is measured by reference to the fair value at the date on which they are granted and is recognised
as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is
determined using Black-Scholes or stochastic option pricing models. In valuing equity-settled transactions, no account is taken of any service and
performance (vesting conditions), other than performance conditions linked to the price of the shares of the Company (market conditions). Any other
conditions which are required to be met in order for an employee to become fully entitled to an award are considered
to be non-vesting conditions. Alongside market performance conditions, non-vesting conditions are taken into account in determining the grant date
fair value.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market or non-vesting condition,
which are treated as vesting irrespective of whether or not the market or non-vesting condition is satisfied, provided that all other performance or
service conditions are satisfied.
At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired
and management’s best estimate of the number of equity instruments that will ultimately vest. The movement in cumulative expense since the previous
balance sheet date is recognised in the income statement, with a corresponding entry in equity.
The value of shares that have exercised, lapsed or forfeit in the year is credited back to Retained earnings.
Where the terms of an equity-settled award are modified or a new award is designated as replacing a cancelled or settled award, the cost based
on the original award terms continues to be recognised over the original vesting period. In addition, an expense is recognised over the remainder
of the new vesting period for the incremental fair value of any modification, based on the difference between the fair value of the original award
and the fair value of the modified award, both as measured on the date of the modification. No reduction is recognised if this difference is negative.
Where an equity-settled award is cancelled (including when a non-vesting condition within the control of the entity or employee is not met), it is treated
as if it had vested on the date of cancellation, and any cost not yet recognised in the income statement for the award is expensed immediately.
Any compensation paid up to the fair value of the award at the cancellation or settlement date is deducted from equity, with any excess over fair value
being treated as an expense in the income statement.
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157
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
3. Business and Geographical Segments
IFRS 8 requires operating segments to be identified on the basis of the internal financial information reported to the Chief Operating Decision Maker
(CODM). The Group’s CODM is deemed to be the Executive Directors on the Board, who are primarily responsible for the allocation of resources
to segments and the assessment of performance of the segments.
The CODM assesses profit performance principally through adjusted profit measures consistent with those disclosed in the Annual Report
and Accounts.
The reporting segments are organised based on the nature of the end markets served. The ‘Food’ segment entails manufacture and supply of food
products to UK grocery retailers, the food service sector and other UK and global food producers. The ‘Other’ segment represents all other activities
which do not meet the above criteria, principally Cranswick Pet Products Limited.
The reportable segment ‘Food’ represents the aggregation of four operating segments which are aligned to the product categories of the Group;
Fresh Pork, Convenience, Gourmet Products and Poultry, all of which manufacture and supply food products through the channels described above.
The acquisition of Elsham Linc Limited is included within the Fresh Pork product category, and the acquisition of Froch Foods Holdings Limited is
included within the Gourmet Product category. The operating segments have been aggregated into one reportable segment as they share similar
economic characteristics. The economic indicators, which have been assessed in concluding that these operating segments should be aggregated,
include the similarity of long-term average margins; expected future financial performance; and operating and competitive risks. In addition, the
operating segments are similar with regard to the nature of the products and production process, the type and class of customer, the method of
distribution and the regulatory environment.
2024
2023
£’m
Food
Other
Total
Food
Other
Total
Revenue
2,573.9
25.4
2,599.3
2,296.4
26.6
2,323.0
Adjusted operating profit/(loss)
192.5
( 7. 4)
185.1
146.3
0.2
146.5
Finance costs
(8.9)
–
(8.9)
(6.3)
(0.1)
(6.4)
Share of net profit of joint venture
0.4
–
0.4
–
–
–
Adjusted profit/(loss) before tax
184.0
(7. 4)
176.6
140.0
0.1
140.1
Assets
1,355.0
29.0
1,384.0
1,248.4
16.4
1,264.8
Liabilities
(446.2)
(26.3)
(472.5)
(410.6)
(11.3)
(421.9)
Net assets
908.8
2.7
911. 5
8 37.8
5.1
842.9
Depreciation
79.0
2.7
81.7
67. 5
1.3
68.8
Property, plant and equipment and right-of-use asset additions
120.0
6.0
126.0
105.4
3.5
108.9
Geographical segments
The following table sets out revenues by destination, regardless of where the goods were produced:
2024 2023
£’m £’m
UK
2,543.7
2,236.2
Continental Europe
24.9
36.7
Rest of world
30.7
50.1
2,599.3
2,323.0
In addition to the non-UK sales disclosed above, the Group also made sales to export markets through UK-based meat trading agents totalling
£59.5 million (2023: £73.2 million). Including these sales, total sales to export markets were £115.1 million for the year (2023: £160.0 million).
The Group’s non-current assets were all located within the UK during both 2024 and 2023.
Customer concentration
The Group has three customers (2023: three) which individually account for ten or more per cent of the Group’s total revenue. These customers account
for 21 per cent, 16 per cent and 10 per cent respectively. In the prior year, these same three customers accounted for 21 per cent, 16 per cent and
11 per cent respectively.
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
158
FINANCIAL STATEMENTS
4. Group Operating Profit
Group operating costs comprise:
2024 2023
£’m £’m
Cost of sales excluding net IAS 41 valuation movement on biological assets
2,224.6
2,022.1
Net IAS 41 valuation movement on biological assets*
(2.2)
( 7.6)
Cost of sales
2,222.4
2,014.5
Gross profit
376.9
308.5
Selling and distribution costs
100.0
94.8
Administrative expenses excluding amortisation and impairment of intangible assets
95.3
69.5
Impairment of intangible assets
15.4
3.0
Amortisation of intangible assets
5.0
5.2
Administrative expenses
115.7
77.7
Other operating income
(5.7)
(9.9)
Total operating costs
2,432.4
2 ,17 7.1
• This represents the difference between operating profit prepared under IAS 41 and operating profit prepared under historical cost accounting, which forms
part of the reconciliation to adjusted operating profit.
Included within other operating income are credits of £5.7 million for insurance claims received in the period (2023: £9.9 million).
The net impact of these claims is not material.
Group operating profit is stated after charging/(crediting):
2024 2023
£’m £’m
Depreciation of property, plant and equipment
65.5
54.1
Depreciation of right-of-use assets
16.2
14.7
Amortisation of intangible assets
5.0
5.2
Impairment of intangible assets
15.4
3.0
Release of Government grants
(0.4)
(0.2)
Short-term, low-value lease payments
1.9
1.2
Net foreign currency differences
(0.5)
(0.6)
Cost of inventories recognised as an expense
1,339.3
1,249.0
Increase/(decrease) in provision for inventories
1.2
(1.5)
Increase/(decrease) in provision for impairment of receivables
0.2
(0.3)
Research and development expenditure
29.0
10.8
Auditors’ remuneration
Fees payable to the Company’s auditors in respect of the audit
Audit of these financial statements
1.0
1.0
Local statutory audit of the Company
0.1
0.1
Total audit remuneration
1.1
1.1
Other services
0.1
0.1
Total non-audit related remuneration
0.1
0.1
Further details of audit and non-audit fees can be found on page 100.
Cranswick plc Annual Report & Accounts 2024
159
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
5. Employees
2024 2023
£’m £’m
Staff costs:
Wages and salaries
388.4
335.9
Social security costs
35.8
30.9
Other pension costs
9.7
8.6
433.9
375.4
Included within wages and salaries is a total expense for share-based payments of £8.8 million (2023: £4.7 million), all of which arises from transactions
accounted for as equity-settled share-based payment transactions.
The average monthly number of employees during the year was:
2024 2023
Number Number
Production
9,720
9,194
Selling and distribution
490
586
Administration
828
642
11,038
10,422
The Group considers the Directors to be the key management personnel. Details of each Director’s remuneration, pension contributions and share
options are detailed in the Remuneration Committee Report on pages 105 to 131.
2024 2023
£’m £’m
Directors’ remuneration
7.2
4.7
Aggregate gains made by Directors on exercise of share options
2.8
1.7
Number of Directors receiving pension contributions under money purchase schemes
1
2
Details of Directors’ remuneration can be found in the Remuneration Committee Report on page 122. The total Directors’ remuneration of £7.2 million
(2023: £4.7 million) comprises salary and fees £2.9 million (2023: £2.6 million), benefits £0.1 million (2023: £0.1 million), bonus £3.9 million
(2023: £1.6 million) and pension £0.3 million (2023: £0.4 million). The difference between pension contributions noted above and pension contributions
on page 122 is cash paid in lieu of pension.
6. Finance Costs
2024 2023
£’m £’m
Finance costs:
Bank interest paid and similar charges
5.3
4.0
Total interest expense for financial liabilities not at fair value through profit or loss
5.3
4.0
Net finance income on defined benefit pension surplus (Note 25)
–
(0.1)
Lease interest
3.6
2.5
Total finance costs
8.9
6.4
The interest relates to financial assets and liabilities carried at amortised cost.
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
160
FINANCIAL STATEMENTS
7. Taxation
a) Analysis of tax charge in the year
Tax charge based on the profit for the year:
2024 2023
£’m £’m
Current income tax:
UK corporation tax on profit for the year
37.8
20.2
Adjustments in respect of prior years
0.7
5.6
Total current tax
38.5
25.8
Deferred tax:
Origination and reversal of temporary differences
7.5
5.1
Deferred tax rate change
–
2.4
Adjustments in respect of prior years
(0.7)
(5.2)
Total deferred tax
6.8
2.3
Tax on profit
45.3
28.1
Tax relating to items charged or credited to other comprehensive income or directly to equity:
2024 2023
£’m £’m
Recognised in Group statement of comprehensive income
Deferred tax on revaluation of cash flow hedges
(0.1)
0.1
Deferred tax on actuarial gains/(losses)on defined benefit pension scheme
0.1
(2.3)
Corporation tax credit on actuarial losses on defined benefit pension scheme
(0.1)
(0.5)
(0.1)
(2.7)
Recognised in Group statement of changes in equity
Deferred tax (credit)/charge on share-based payments
(1.4)
0.9
Corporation tax credit on share options exercised
(0.5)
(0.8)
(1.9)
0.1
Total tax credit recognised directly in equity
(2.0)
(2.6)
b) Factors affecting tax charge for the year
The tax assessed for the year is higher (2023: higher) than the standard rate of corporation tax in the UK. The differences are explained below:
2024 2023
£’m £’m
Profit before tax
158.4
139.5
Profit multiplied by standard rate of corporation tax in the UK of 25 per cent (2023: 19 per cent)
39.6
26.5
Effect of:
Expenses which are not deductible for tax purposes
1.9
0.8
Goodwill impairment
3.8
–
Deferred tax rate change
–
2.4
Non-taxable income
–
(0.3)
Super deduction
–
(2.0)
Adjustment in respect of prior years
–
0.4
Share-based payments
–
0.3
Total tax charge for the year
45.3
28.1
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161
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
7. Taxation (continued)
c) Deferred tax
The deferred tax included in the Group balance sheet is as follows:
Restated
2024 2023*
£’m £’m
Deferred tax liability in the balance sheet
Accelerated capital allowances
29.2
19.5
Business combinations
3.6
3.8
Losses
(0.6)
(0.5)
Biological assets
(0.1)
(1.2)
Right-of-use asset
18.9
15.9
Right-of-use liability
(19.9)
(16.6)
Other temporary differences
0.2
0.4
Share-based payments
(5.2)
(2.7)
Deferred tax on defined benefit pension scheme
(0.2)
(0.4)
Customer relationships intangibles
2.5
2.5
Deferred tax liability
28.4
20.7
* Comparative figures reflect the amendments to IAS 12 ‘Income Taxes’, see note 2 for more information.
2024 2023
£’m £’m
Deferred tax liability in the balance sheet
At 25 March 2023
20.7
19.7
Recognised in income statement
7.5
7. 5
Prior year adjustment recognised in income statement
(0.7)
(5.2)
Acquired on acquisitions in the year
2.3
–
Recognised in statement of comprehensive income
–
(2.2)
Recognised in statement of changes in equity
(1.4)
0.9
At 30 March 2024
28.4
20.7
The deferred tax included in the income statement is as follows:
2024 2023
£’m £’m
Deferred tax in the income statement
Accelerated capital allowances
8.2
2.3
Business combinations
(0.1)
(0.1)
Losses
0.9
(0.2)
Biological assets
0.6
1.9
Right-of-use asset
2.9
2.0
Right-of-use liability
(3.3)
(2.2)
Other temporary differences
0.1
–
Share-based payments
(1.2)
0.3
Deferred tax on defined benefit pension scheme
–
(0.1)
Customer relationships intangibles
(1.3)
(1.6)
Deferred tax charge
6.8
2.3
The deferred tax liability is not expected to be settled within the next 12 months.
d) The Global Anti-Base Erosion Rules (‘Pillar Two’)
Pillar Two legislation has been enacted in some of the jurisdictions in which the Group operates. The legislation will be effective for the Group’s financial
year beginning 26 March 2023. Taxation balances are adjusted for a change in tax law if the change has been enacted or substantively enacted by the
balance sheet date. However, the IASB issued narrow-scope amendments to IAS 12 ‘Income Taxes’ Pillar Two which provide a temporary exception,
which can be applied immediately, from the requirement to recognise and disclose deferred taxes arising from the Pillar Two model rules. The Group has
applied this exception.
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
162
FINANCIAL STATEMENTS
7. Taxation (continued)
The Group has performed an assessment of its potential exposure to Pillar Two income taxes. This assessment is based on the most recent information
available regarding the financial performance of the constituent entities in the Group. Based on the assessment performed, the Pillar Two effective rates
in all jurisdictions in which the Group operates are above 15 per cent and management is not currently aware of any circumstances under which this
might change. Therefore, the Group does not expect a potential exposure to Pillar Two top-up taxes.
8. Equity Dividends
2024 2023
£’m £’m
Declared and paid during the year:
Final dividend for 2023 – 58.8p per share (2022: 55.6p)
31.7
29.7
Interim dividend for 2024 – 22. 7p per share (2023: 20. 6p)
12.2
11.0
Dividends paid
43.9
40.7
Proposed for approval of Shareholders at the Annual General Meeting on 29 July 2024:
Final dividend for 2024 – 67 .3p per share (2023: 58.8p)
36.3
30.0
9. Earnings per Share
Basic earnings per share amounts are calculated by dividing net profit for the year attributable to members of the Parent Company of £113.1 million
(2023: £111.4 million) by the weighted average number of shares outstanding during the year. In calculating diluted earnings per share amounts,
the weighted average number of shares is adjusted for the weighted average number of ordinary shares that would be issued on the conversion
of all dilutive potential ordinary shares into ordinary shares, and shares held by the Employee Benefit Trust.
The weighted average number of ordinary shares for both basic and diluted amounts was as per the table below:
2024 2023
Thousands Thousands
Basic weighted average number of shares
53,776
53,461
Dilutive potential ordinary shares – share options
187
129
53,963
53,590
Adjusted earnings per share
Adjusted earnings per share are calculated using the above weighted average number of shares for both basic and diluted amounts (see Note 30).
10. Intangible Assets
Customer
Goodwill Trademark relationships Total
£’m £’m £’m £’m
Cost
At 27 March 2022
213.8
5.7
32.6
252.1
Fair value adjustments
(0.8)
–
0.9
0.1
At 25 March 2023
213.0
5.7
33.5
252.2
Acquired on acquisitions
5.7
–
5.0
10.7
At 30 March 2024
218.7
5.7
38.5
262.9
Amortisation
At 27 March 2022
–
1.3
19.5
20.8
Amortisation
–
1.1
4.1
5.2
Impairment
–
–
3.0
3.0
At 25 March 2023
–
2.4
26.6
29.0
Amortisation
–
1.0
4.0
5.0
Impairment**
15.1
–
0.3
15.4
At 30 March 2024
15.1
3.4
30.9
49.4
Net book value
At 26 March 2022
213.8
4.4
13.1
231.3
At 25 March 2023
213.0
3.3
6.9
223.2
At 30 March 2024
203.6
2.3
7.6
213.5
Cranswick plc Annual Report & Accounts 2024
163
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
10. Intangible Assets (continued)
Intangible assets related to trademarks and customer relationships are amortised over a remaining term of one to five years.
Impairment testing
Goodwill is subject to annual impairment testing. Goodwill acquired through business combinations has been allocated for impairment testing purposes
to the following principal cash-generating units:
Cash-generating unit
2024 2023
£’m £’m
Fresh Pork
21.8
21.8
Livestock*
23.3
20.2
Cooked Meats
90.2
90.2
Continental Fine Foods
39.1
39.1
Premium Cooked Poultry
9.2
9.2
Fresh Chicken
13.7
13.7
Cranswick Pet Products**
–
15.1
Other
6.3
3.7
203.6
213.0
* Following a review completed earlier in the year, the goodwill impairment assessment for the Fresh Pork and Livestock CGUs is completed on a combined basis consistent to how it is monitored by the
management. The resulting change does not impact management’s assessment of goodwill impairment considerations in the current period or prior years.
** The carrying amount of the Cranswick Pet Products CGU has been reduced to its recoverable amount through recognition of an impairment loss against goodwill. This loss is presented separately
in the Group Income Statement.
Significant estimate: key assumptions used in value-in-use calculations
Impairment tests on the carrying amounts of goodwill are performed annually by analysing the carrying amount allocated to each CGU against its
value-in-use. The recoverable amount for all cash-generating units has been determined based on value-in-use calculations using annual budgets for
each business for the following year, approved by the Board of Directors, and cash flow projections for the next three years calculated for the Viability
Statement, extended for a further two years.
Forecast replacement capital expenditure is included from budgets and thereafter capital expenditure is assumed to represent 100 per cent
of depreciation, except where specific expansion plans are in place.
Terminal growth rates of two per cent (2023: two per cent) are applied to subsequent cash flows, reflecting management’s best view based on market
and operational experience of the expected long-term growth in the market.
When assessing for impairment of goodwill, management have considered the impact of climate change, particularly in the context of the risks
and opportunities, and have not identified any material short-term impacts from climate change that would impact the carrying value of goodwill.
Ongoing capital projects relating to our Second Nature sustainability strategy are, to the extent known, included in the annual budgets for each
business, such as solar panels, ammonia plant and effluent treatment projects. The impact of climate change on future annual cash flows is not
considered likely to have a material impact at this point in time. Over the longer-term, the risks and opportunities are more uncertain, and management
will continue to assess the quantitative impact of risks at each reporting period.
A pre-tax discount rate of 12.0 per cent (2023: 11.9 per cent) has been applied in determining the recoverable amounts of all CGUs, except for
Cranswick Pet Products, representing management’s estimate of the Group’s risk adjusted pre-tax weighted average cost of capital (WACC).
Impairment assessment
The losses incurred by Cranswick Pet Products in FY24 served as a potential indicator for goodwill and intangible asset impairment, prompting the
completion of the impairment assessment in January 2024. A pre-tax discount rate of 11.8 per cent has been applied to Cranswick Pet Products CGU
in determining the recoverable amount. Impairment modelling indicated that the discounted present value of future pre-tax cash flows attributable
to Cranswick Pet Products did not support the carrying value of the goodwill asset, resulting in a full £15.1 million impairment charge.
Management concluded that the fair value less cost of disposal was not materially different to the value-in-use model. Therefore, considering all relevant
factors, a value-in-use model has been used to assess the impairment of goodwill. The value-in-use model considers the specific operational and
strategic factors affecting the business, without the need to rely on uncertain market conditions.
Two additional intangible assets were recognised on acquisition, customer relationships and trade names. Both assets were separately tested for
impairment given the change in business model and a greater focus on new customer relationships. The recalculated customer relationships value
of £3.0 million, indicates that £0.3 million of impairment is required to the fair value of £3.3 million.
Sensitivity analysis
The goodwill impairment calculation is most sensitive to the following assumptions:
Gross margin
Gross margin depends upon average selling prices and the cost of raw materials. Historical margins are used as the base, adjusted for management’s
expectations derived from experience and with reference to budgets and forecasts.
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
164
FINANCIAL STATEMENTS
10. Intangible Assets (continued)
Operating costs
Operating costs relate to direct costs and overheads. Management forecasts these costs based on the expected sales volume, structure of the
business and inflation.
Discount rates
All calculations of this nature are sensitive to the discount rate used. Management’s estimate of the weighted average cost of capital has been used
for each cash-generating unit.
The Group has applied sensitivities to assess whether any reasonably possible changes in assumptions could cause an impairment that would be material
to these consolidated financial statements.
The recoverable amount of each CGU would equal its carrying amount if the key assumptions were to change by the following percentage:
Cash Generating Units
Budgeted gross Other operating Pre-tax discount
margin (£’m) costs (£’m) rate (%)
Fresh pork and livestock
(14%)
15%
20%
Cooked meats
(4%)
4%
5%
Continental Fine Foods
(5%)
6%
4%
Premium Cooked Poultry
(12%)
12%
12%
Fresh Chicken
(10%)
10%
11%
Other
(11%)
10%
21%
The Directors and management have considered and assessed possible changes for other key assumptions and have not identified any instances that
could cause the carrying amount of any of the above listed CGUs to exceed its recoverable amount. Assumptions and projections are updated on an
annual basis .
11. Property, Plant and Equipment
Plant, Assets in the
Freehold land equipment and course of
and buildings vehicles construction Total
£’m £’m £’m £’m
Cost
At 27 March 2022
239.1
418.5
57.9
715.5
Additions
11. 3
34.1
38.1
83.5
Acquired on acquisition
–
0.6
–
0.6
Transfers between categories
22.0
47.0
(69.0)
–
Disposals
(0.1)
(13.4)
–
(13.5)
At 25 March 2023
272.3
486.8
27.0
786.1
Additions
6.6
35.8
49.0
91.4
Acquired on acquisitions
22.7
8.0
–
30.7
Transfers between categories
7.4
22.1
(29.5)
–
Disposals
(0.6)
(21.1)
–
(21.7)
At 30 March 2024
308.4
531.6
46.5
886.5
Depreciation
At 27 March 2022
43.7
237.0
–
280.7
Charge for the year
6.8
47. 3
–
54.1
Relating to disposals
–
(12.8)
–
(12.8)
At 25 March 2023
50.5
271.5
–
322.0
Charge for the year
11.0
54.5
–
65.5
Relating to disposals
(0.6)
(19.3)
–
(19.9)
At 30 March 2024
60.9
306.7
–
3 67. 6
Net book amounts
At 26 March 2022
195.4
181.5
57.9
434.8
At 25 March 2023
221.8
215.3
27. 0
464.1
At 30 March 2024
247.5
224.9
46.5
518.9
Cranswick plc Annual Report & Accounts 2024
165
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
11. Property, Plant and Equipment (continued)
Included in freehold land and buildings is land with a cost of £35.4 million (2023: £27.9 million), which is not depreciated.
Cost includes £1.9 million (2023: £1.6 million) in respect of capitalised interest. Interest of £0.3 million was capitalised during the year (2023: £nil).
12. Right-of-use Assets
Amounts recognised in the balance sheet
The balance sheet shows the following amounts relating to leases:
Plant,
Land and equipment and
buildings vehicles Total
£’m £’m £’m
Cost
At 27 March 2022
86.0
9.2
95.2
Additions
23.1
2.3
25.4
Disposals
(1.6)
(2.7)
(4.3)
At 25 March 2023
107.5
8.8
116.3
Acquired on acquisitions
1.4
–
1.4
Additions
26.9
7.7
34.6
Disposals
(11.8)
(2.8)
(14.6)
At 30 March 2024
124.0
13.7
137.7
Depreciation
At 27 March 2022
25.1
4.6
29.7
Charge for the year
12.2
2.5
14.7
Relating to disposals
(1.6)
(2.4)
(4.0)
Onerous lease provision reversal
(0.4)
–
(0.4)
Transfer between categories
(0.6)
0.6
–
At 25 March 2023
34.7
5.3
40.0
Charge for the year
13.3
2.9
16.2
Relating to disposals
(8.1)
(2.8)
(10.9)
At 30 March 2024
39.9
5.4
45.3
Net book amounts
At 26 March 2022
60.9
4.6
65.5
At 25 March 2023
72.8
3.5
76.3
At 30 March 2024
84.1
8.3
92.4
2024 2023
£’m £’m
Lease liabilities:
Current
17.3
14.4
Non-current
82.1
66.8
99.4
81.2
Amounts recognised in the income statement
The income statement shows the following amounts relating to leases:
2024 2023
£’m £’m
Depreciation charge on right-of-use assets:
Land and buildings
13.3
12.2
Plant, equipment and vehicles
2.9
2.5
16.2
14.7
Interest expense (included in finance costs)
3.6
2.5
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
166
FINANCIAL STATEMENTS
13. Acquisitions
i) Froch Foods Limited
On 19 January 2024, the Group acquired 100 per cent of the share capital of a holding entity Froch Foods Holdings Limited and its subsidiary Froch
Foods Limited, an added value processor of predominantly pork and poultry related products, together with associated leasehold buildings, for a total
cash consideration of £9.8 million.
The acquisition is complementary to the Group’s existing bacon and cooked meats production capabilities.
The acquisition has been accounted for as a business combination using the acquisition method of accounting in accordance with IFRS 3 Business
Combinations and consequently the assets acquired, and liabilities assumed, have been recorded by the Group at fair value, with an excess purchase
price over the fair value of the identifiable asset and liabilities being recognised as goodwill.
The following table sets out the fair values of the identifiable assets and liabilities acquired by the Group.
Provisional
fair value
£’m
Net assets acquired:
Property, plant and equipment
8.0
Right-of-use assets
1.4
Customer relationships
5.0
Trade and other receivables
0.7
Bank and cash balances
1.6
Bank loans
(1.7)
Trade and other payables
(4.1)
Lease liabilities
(1.4)
Provisions
(0.6)
Deferred tax liability
(1.7)
7.2
Goodwill arising on acquisition
2.6
Total consideration
9.8
Satisfied by:
Initial cash consideration
9.4
Deferred consideration
0.4
9.8
Net cash outflow arising on acquisition:
Cash consideration paid
9.4
Cash and cash equivalents acquired
(1.6)
7.8
The fair values on acquisition are provisional and will be concluded within twelve months of the acquisition date.
The fair value of trade and other receivables acquired is the same as the gross contractual amounts. All of the trade and other receivables acquired
are expected to be collected in full.
Following management’s assessment, the Group recognised a customer relationship intangible asset of £5.0 million. No further intangible assets
were identified.
Included in the £2.6 million of goodwill recognised above are certain intangible assets that cannot be individually separated from the acquiree
and reliably measured due to their nature. These items include the expected value of synergies and an assembled workforce.
Transaction costs in relation to the acquisition of £0.3 million have been expensed within administrative expenses.
From the date of acquisition to 30 March 2024, the external revenue of Froch Foods Limited was £1.3 million and the business contributed net profit
after tax of £0.1 million to the Group. Had the acquisition taken place at the beginning of the financial year, Group revenue would have been
£2,604.9 million, and Group profit after tax would have been £114.6 million.
In addition to the net cash outflow on acquisition of £7.8 million, the Group immediately paid a further £5.5 million consisting of a £1.7 million bank loan
and £3.8 million other payables settled on acquisition.
Cranswick plc Annual Report & Accounts 2024
167
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
13. Acquisitions (continued)
ii) Elsham Linc Limited
On 4 August 2023, the Group acquired 100 per cent of the issued share capital of Elsham Linc Limited, a commercial pig farming enterprise operating
from numerous sites predominately across North Lincolnshire and the Humber, for a net cash consideration of £14.7 million.
Included within the assets acquired is Elsham Linc Limited’s 50 per cent share of the Mere Pigs joint venture, a commercial pig farming business.
Beechgrove Farms Limited, the other party to the joint venture, holds the remaining 50 per cent interest in Mere Pigs.
The acquisition is in line with the Group’s focus on increasing self-sufficiency in British pigs.
The acquisition has been accounted for as a business combination using the acquisition method of accounting in accordance with IFRS 3 Business
Combinations and consequently the assets acquired, and liabilities assumed, have been recorded by the Group at fair value, with an excess purchase
price over the fair value of the identifiable asset and liabilities being recognised as goodwill.
The following table sets out the provisional fair values of the identifiable assets and liabilities acquired by the Group in relation to Elsham Linc Limited:
Fair value
£’m
Net assets acquired:
Property, plant and equipment
22.7
Investment in joint venture
0.4
Biological assets
7.5
Inventories
1.0
Trade and other receivables
2.3
Bank and cash balances
(3.1)
Bank loans
(4.8)
Trade and other payables
(16.9)
Deferred tax liability
(0.6)
8.5
Goodwill arising on acquisition
3.1
Total consideration
11.6
Satisfied by:
Initial cash consideration
10.5
Deferred consideration
1.1
11.6
Net cash outflow arising on acquisition:
Cash consideration paid
11.6
Cash and cash equivalents acquired
3.1
14.7
The deferred consideration of £1.1 million was settled within the year. No further amounts payable are recognised at the year end.
The fair value of trade and other receivables acquired is the same as the gross contractual amounts. All of the trade and other receivables acquired
are expected to be collected in full.
Following management’s assessment, no customer relationship intangibles have been recognised and there are no trademarks linked to
Elsham Linc Limited.
Included in the £3.1 million of goodwill recognised above are certain intangible assets that cannot be individually separated from the acquiree and
reliably measured due to their nature. These items include the expected value of synergies and an assembled workforce.
Transaction costs in relation to the acquisition of £0.3 million have been expensed within administrative expenses.
From the date of acquisition to 30 March 2024, the external revenue of Elsham Linc Limited was £4.7 million and the business contributed net profit
after tax of £1.5 million to the Group. The share of profit in the joint venture from the date of acquisition was £0.4 million. Had the acquisition taken place
at the beginning of the financial year, Group revenue would have been £2,611.5 million, and Group profit after tax would have been £113.7 million.
In addition to the cash consideration paid of £11.6 million, the Group immediately paid a further £21.2 million consisting of a £3.1 million bank overdraft,
£4.8 million bank loan, £9.1 million for property, plant and equipment acquired (which is included within trade and other payables of the identifiable
liabilities of Elsham Linc Limited) and £4.2 million other payables settled on acquisition.
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
168
FINANCIAL STATEMENTS
13. Acquisitions (continued)
iii) Financial asset investment – BIA Analytical Ltd
On 22 September 2023, the Group acquired 2.77 per cent of the ordinary share capital of BIA Analytical Ltd, a lab-based authenticity testing business,
for £0.1 million. BIA Analytical is registered in Northern Ireland, company number NI657772.
iv) Deferred and Contingent Consideration
The Sale and Purchase agreements for Atlantica UK Limited and Ramona’s Kitchen Limited included contingent consideration payable in cash to the
previous owners based on the performance of the businesses in the period to 30 June 2024.
The fair value of the contingent consideration on acquisition was estimated at £2.7 million and was estimated calculating the present value of the future
expected cash flows. During the year, deferred contingent consideration of £1.0 million was paid. The remaining value has been reassessed at the end
of the reporting period based on latest Board approved cash flows, resulting in £1.7 million recognised as at the year end.
The Sale and Purchase agreement for Froch Foods Holdings Limited included deferred consideration payable in cash to the previous owners based
on the finalisation of completion accounts. The amount payable is estimated at £0.4 million, and will be paid within the year.
v) Pig herd acquisition
In the year the Group purchased a pig herd, along with some plant and machinery for £3.1 million, as part of a wider agreement to lease and operate,
on a long-term basis, a fully integrated pig and arable farming enterprise in North Yorkshire. In accordance to IFRS 3 Business Combinations, this has
been accounted for as an asset acquisition.
vi) 2023 – Cranswick Mediterranean Foods Limited
On 13 February 2023, the Group acquired the trade and assets of Mediterranean Foods (London) Ltd. The business, now renamed Cranswick
Mediterranean Foods Limited, produces Mediterranean snacking foods and was acquired for a cash consideration of £0.5 million.
The following table sets out the fair values of the identifiable assets and liabilities acquired by the Group from Mediterranean Foods (London) Ltd:
Fair value
£’m
Net assets acquired:
Property, plant and equipment
0.6
Inventories
0.1
Trade and other payables
(0.1)
Provisions
(0.1)
0.5
Goodwill arising on acquisition
–
Total consideration
0.5
Satisfied by:
Initial cash consideration
0.5
Deferred contingent consideration
–
0.5
Net cash outflow arising on acquisition:
Cash consideration paid (included in cash flows from investing activities)
0.5
Cash and cash equivalents acquired
–
0.5
Transaction costs in relation to the acquisition of £0.1 million have been expensed within administrative expenses.
Post-acquisition Cranswick Mediterranean Foods Limited has contributed £0.1 million revenue and £nil operating result which is included in the Group
income statement. Had the acquisition taken place at the beginning of the year, revenue in the year would have been £2.2 million higher and profit in the
year would have been the same.
Cranswick plc Annual Report & Accounts 2024
169
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
14. Biological Assets
The Group’s biological assets consist of pigs in the form of breeding sows (classified as non-current assets) and their progeny for processing within
the Group and externally (classified as current assets) and chickens in the form of breeder stocks (classified as non-current assets) and their progeny
for processing within the Group and externally (classified as current assets).
Reconciliation of carrying amounts of livestock:
Pigs Chickens Total
£’m £’m £’m
At 26 March 2022
44.0
9.4
53.4
Increases due to purchases
23.5
14.3
37.8
Decrease attributable to harvest
(238.2)
(181.1)
(419.3)
Decrease attributable to sales
(1.7)
(1.9)
(3.6)
Changes in fair value less estimated costs to sell
241.0
169.8
410.8
At 25 March 2023
68.6
10.5
79.1
Increases due to purchases
29.7
17.6
47. 3
Increases due to acquisition
7.5
–
7.5
Decrease attributable to harvest
(298.5)
(196.8)
(495.3)
Decrease attributable to sales
(6.8)
(1.5)
(8.3)
Changes in fair value less estimated costs to sell
278.6
181.2
459.8
At 30 March 2024
79.1
11.0
90.1
2024 2023
£’m £’m
Non-current biological assets:
Pigs
5.7
6.0
Chickens
0.7
0.3
6.4
6.3
Current biological assets:
Pigs
73.4
62.6
Chickens
10.3
10.2
83.7
72.8
2024 2023
£’m £’m
Net IAS 41 valuation movement on biological assets*
Changes in fair value of biological assets
459.8
410.8
Biological assets transferred to cost of sales
(4 57.6)
(403.2)
2.2
7.6
* This represents the difference between operating profit prepared under IAS 41 and operating profit prepared under historical cost accounting, which forms part of the reconciliation to adjusted
operating profit.
The Group’s biological assets are measured using Level 2 and Level 3 of the fair value hierarchy.
Quoted (unadjusted) prices in an active market are no longer available for sucklers and weaners. The Group’s valuation model for sucklers and weaners
is therefore a function of the UK Standard Pig Price (SPP) for finished pigs since historic data suggests that prices for sucklers, weaners and finished pigs
were strongly correlated. The derived prices for sucklers and weaners are then adjusted to reflect the growth of the pigs through a straight line
interpolation based on age, to provide a value for the pigs at a particular stage of growth. As suckler and weaner prices are no longer observable in the
market, management concludes these prices fall within Level 3 of the fair value hierarchy.
The Group’s valuation model for finished pigs utilises quoted (unadjusted) prices in an active market: the UK Standard Pig Price (SPP). The prices are
then adjusted to reflect the growth of the animals through straight-line interpolation between weaner to finished pig to provide a value for the pigs
at a particular stage of growth. As the weaner price used in the straight-line interpolation for finished pigs is no longer observable in the market,
management concludes these prices fall within Level 3 of the fair value hierarchy.
The valuation for broiler birds uses recent transaction prices at various stages of development. The prices are then adjusted to reflect the growth
of the birds through interpolation between the transaction prices. The valuation of breeder chickens is based on recent transactions for similar assets
and therefore it is also classified as Level 2 in the fair value hierarchy.
The valuation of sows, boars and breeder chickens is based on recent transactions for similar assets and therefore is also classified as Level 2 in the fair
value hierarchy.
The main assumptions used in relation to the valuation are growth and mortality rates of chickens and a market price for sucklers and weaners.
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
170
FINANCIAL STATEMENTS
14. Biological Assets (continued)
Additional information:
2024 2023
Number Number
Quantities at year end:
Breeding sows (Bearer biological assets)
71,237
62,515
Boars
1,315
1,132
Pigs (Consumable biological assets)
755,051
655,212
Breeder chickens (Bearer biological assets)
441,050
365,814
Broiler chickens (Consumable biological assets)
6,007,274
5,332,477
Number of pigs produced in the year
1,570,358
1,248,357
Number of chickens produced in the year
61,985,710
59,
367,8
4 8
15. Inventories
2024 2023
£’m £’m
Raw materials and work in progress
70.7
73.5
Finished goods and goods for resale
43.0
39.5
113.7
113.0
Inventories are shown net of any provision for slow-moving or obsolete inventory. As at 30 March 2024 the provision against inventory was £6.4 million
(2023: £5.2 million).
16. Trade and Other Receivables
2024 2023
£’m £’m
Financial assets:
Trade receivables
295.0
265.5
Other receivables
15.7
12.0
310.7
27 7. 5
Non-financial assets:
Prepayments
14.6
11.0
325.3
288.5
The above financial assets are carried at amortised cost. As at 30 March 2024 and 25 March 2023, the analysis of trade receivables that were past due
was as follows:
Trade Of which:
receivables
Not due
Past due date in the following periods
Between
Less than 30 and 60 More than
30 days days 60 days
£’m
£’m
£’m £’m £’m
2024
295.0
255.4
37.2
1.3
1.1
2023
265.5
221.2
35.7
3.6
5.0
Trade receivables are non-interest-bearing and are generally on 30 to 60 day terms and are shown net of any provision for impairment. The provision
is calculated by reviewing the lifetime expected credit losses (ECL) using both historic and forward looking data. Balances are written off when the
probability of recovery is assessed as being remote. The loss rates used in the current year range from 0.0 per cent to 0.08 per cent and in the prior year
range from 0.0 per cent to 1.08 per cent. The uncertainty around the ability of non-retail customers to pay has been impacted by inflationary pressures
and the current level of economic uncertainty in the current year and prior year has been incorporated into the expected future loss rates.
As at 30 March 2024, the provision for impairment of trade receivables was £2.7 million (2023: £2.5 million), of which £2.0 million (2023: £2.3 million)
resulted from ECL calculations referred to above.
Cranswick plc Annual Report & Accounts 2024
171
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
16. Trade and Other Receivables (continued)
Movements in the provision for impairment of receivables were as follows:
£’m
Bad debt provision:
At 27 March 2022
2.8
Provided in year
0.2
Released
(0.5)
Utilised
–
At 25 March 2023
2.5
Provided in year
0.7
Released
(0.4)
Utilised
(0.1)
At 30 March 2024
2.7
There are no bad debt provisions against other receivables.
17. Other financial Assets
2024 2023
£’m £’m
Current:
Forward currency contracts
–
0.1
–
0.1
18. Trade and Other Payables
2024 2023
£’m £’m
Current:
Trade payables
180.0
167.6
Tax and social security
11.1
5.4
Other creditors
19.8
16.2
Commercial accruals*
18.5
12.8
Other accruals
80.2
66.3
Deferred income – Government grants
0.4
0.2
310.0
268.5
Non-current:
Deferred income – Government grants
0.9
0.4
* See breakdown on page 171.
Included within trade and other payables acquired at Elsham Linc Limited is a Government grant of £1.1 million from the Rural Payments Agency,
received for slurry acidification. Government grants previously received relate to Regional Growth Fund, Rural Development Programme for England
and Business Investment Scheme payments. The amounts previously received have been used to fund fixed asset investment with the objective of
creating and safeguarding jobs at the Group’s facilities.
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
172
FINANCIAL STATEMENTS
18. Trade and Other Payables (continued)
Commercial accruals consist of:
Volume rebates Advertising and
and similar marketing
allowances contributions Total
£’m £’m £’m
At 27 March 2022
8.5
2.4
10.9
Charged to income statement
14.3
1.4
15.7
Paid
(12.4)
(1.4)
(13.8)
At 25 March 2023
10.4
2.4
12.8
Charged to income statement
22.3
6.9
29.2
Paid
(16.8)
(6.7)
(23.5)
At 30 March 2024
15.9
2.6
18.5
19. Other financial Liabilities
2024 2023
£’m £’m
Current:
Forward currency contracts
0.2
0.1
Deferred and contingent consideration (Note 13)
2.1
–
2.3
0.1
Non-current:
Contingent consideration (Note 13)
–
2.7
Amounts outstanding under revolving credit facility
28.0
42.0
Unamortised issue costs
(0.9)
(1.5)
27.1
43.2
2024 2023
£’m £’m
Movement on hedging instruments:
(Losses)/gains arising in the year
(0.1)
0.1
Reclassification adjustment for (losses)/gains included in the income statement
(0.1)
0.3
(0.2)
0.4
All financial liabilities are carried at amortised cost, except for forward currency contracts and contingent consideration, which are carried at fair value.
Forward currency contracts are used to hedge a proportion of anticipated purchases denominated in foreign currencies and held at fair value in the
balance sheet. To the extent that these forward contracts represent effective hedges, movements in fair value are taken directly to other comprehensive
income and are then reclassified through the income statement in the period during which the hedged item impacts the income statement. A description
of amounts and maturities is contained in Note 21.
Movements on hedged foreign currency contracts are subsequently reclassified through cost of sales.
Banking facility
On 22 November 2021, the Group successfully refinanced its banking facility. The sustainability linked agreement is unsecured and with an initial period
agreed to November 2025. The facility was successfully extended, shortly after the 2022 period end, for a further year, through to November 2026.
The facility comprises a revolving credit facility of £250 million, including a committed overdraft of £20 million. It also includes the option to access
a further £50 million on the same terms at any point during the term of the agreement. The base margin of the facility is linked to the total Scope 1
and Scope 2 emissions (location-based), energy intensity, and water intensity excluding farms metrics, which are subject to a limited assurance review
by PwC.
Cranswick plc Annual Report & Accounts 2024
173
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
19. Financial Liabilities (continued)
£nil (2023: £nil) of the overdraft facility was utilised at 30 March 2024. Interest on the overdraft is payable at a margin over base rate. £28.0 million
(2023: £42.0 million) of the revolving credit facility was utilised as at 30 March 2024. Interest on the revolving credit facility is payable at a margin over
the sterling overnight index rate (SONIA).
The arrangement fees of £2.2 million (2023: £2.2 million) are being amortised over the period of the facility.
The maturity profile of bank loans is as follows:
2024 2023
£’m £’m
In one year or less
–
–
Between one year and two years
–
–
Between two years and five years
28.0
42.0
28.0
42.0
Unamortised issue costs
(0.9)
(1.5)
27.1
40.5
The bank facility for the current year was unsecured and subject to interest cover and adjusted leverage covenants. Interest cover (which is required
to be greater than 3x covered) is calculated as Adjusted EBITDA divided by Net finance costs and was 56.6x at 30 March 2024. Adjusted leverage
(which is required to be less than 3x covered) is calculated as net debt divided by Adjusted EBITDA and was 0.0x at 30 March 2024. Both covenants
are calculated excluding IFRS 16 Leases.
The bank facility for the prior year was unsecured and subject to interest cover and adjusted leverage covenants. Interest cover (which is required to be
greater than 3x covered) is calculated as Adjusted EBITDA divided by Net finance costs and was 63.1x at 25 March 2023. Adjusted leverage (which is
required to be less than 3x covered) is calculated as net debt divided by Adjusted EBITDA and was 0.1x at 25 March 2023. Both covenants are calculated
excluding IFRS 16 Leases.
20. Provisions
Lease Other Total
provisions provisions provisions
£’m £’m £’m
At 25 March 2023
2.7
0.8
3.5
On acquisition
0.6
–
0.6
Created
0.9
–
0.9
Utilised
(0.6)
–
(0.6)
Released
–
–
–
At 30 March 2024
3.6
0.8
4.4
Analysed as:
2024 2023
£’m £’m
Current liabilities
1.8
0.8
Non-current liabilities
2.6
2.7
4.4
3.5
Lease provisions are held against dilapidation obligations on leased properties. These provisions are expected to be utilised over the next five years.
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
174
FINANCIAL STATEMENTS
21. Financial Instruments
An explanation of the Group’s financial instruments risk management strategy is set out on page 135 in the Directors’ Report.
Biological assets
To provide an indication about the range of the inputs used in determining fair value, the Group has classified its non-financial assets and liabilities
into the three levels prescribed under the accounting standards:
Level 1 Level 2 Level 3 Total
£’m £’m £’m £’m
At 30 March 2024
Breeding sows (Bearer biological assets)
–
12.2
–
12.2
Boars
–
0.2
–
0.2
Finished pigs (Consumable biological assets)
–
–
49.9
49.9
Sucklers and weaners (Consumable biological assets)
–
–
16.9
16.9
Breeder chickens (Bearer biological assets)
–
2.2
–
2.2
Broiler chickens (Consumable biological assets)
–
8.2
–
8.2
Total biological assets
–
22.8
66.8
89.6
Level 1 Level 2 Level 3 Total
£’m £’m £’m £’m
At 25 March 2023
Breeding sows (Bearer biological assets)
–
13.0
–
13.0
Boars
–
0.1
–
0.1
Finished pigs (Consumable biological assets)
–
39.7
–
39.7
Sucklers and weaners (Consumable biological assets)
–
15.7
–
15.7
Breeder chickens (Bearer biological assets)
–
1.6
–
1.6
Broiler chickens (Consumable biological assets)
–
8.2
–
8.2
Total biological assets
–
78.3
–
78.3
For pigs, in the year, there has been a change in available external data from AHDB in respect of suckler and weaner pig prices. As a result, management
have used historic data and applied a correlation with the current UK standard pig price. There is no change in underlying methodology applied, however
as these suckler and weaner prices are no longer observable in the market, management considers that this causes the valuation to move into Level 3
of the fair value hierarchy. Having considered the sensitivities in key inputs to suckler and weaner valuations, management considers that reasonable
sensitivities would not result in a material impact on the fair value.
The Group’s valuation model for finished pigs utilises quoted (unadjusted) prices in an active market: the UK Standard Pig Price (SPP). The prices are
then adjusted to reflect the growth of the animals through straight-line interpolation between weaner to finished pig to provide a value for the pigs
at a particular stage of growth. As the weaner price used in the straight-line interpolation for finished pigs is no longer observable in the market,
management concludes these prices fall within Level 3 of the fair value hierarchy.
Reconciliation of carrying amounts of fair value level 3 livestock:
£’m
At 25 March 2023
55.4
Increase due to purchases
21.4
Increase due to acquisition
6.0
Decrease attributable to harvest
(292.1)
Decreases attributable to sales
(6.8)
Changes in fair value less estimated costs to sell
282.9
At 30 March 2024
66.8
The gains or (losses) recognised in relation to the sucklers, weaners and finished pigs are as follows:
2024 2023
£’m £’m
Net total gains or (losses) for the period recognised in profit or loss under ‘Change in fair value of biological assets’
6.4
(0.9)
Net change in unrealised gains or (losses) for the period recognised in profit or loss attributable to weaners,
sucklers and finished pigs held at the end of the reporting period
6.7
(1.2)
The following table summarises the quantitative information about the significant unobservable inputs used in the fair value measurements of the
weaners, sucklers and finishers.
Cranswick plc Annual Report & Accounts 2024
175
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
21. Financial Instruments (continued)
Fair value
Range of inputs
2024 2023 Unobservable 2024 2023 Relationship of unobservable
Description
£’m £’m inputs £’m £’m
inputs to fair value
Sucklers and weaners
16.9
15.7
Suckler price
51.98 - 55.40
39.31 - 52.60
The higher the market price,
Weaner price
56.70 - 64.69
56.61 - 61.93
the higher the fair value
Finished pigs
49.9
39.7
Finisher price
182.83 - 215.19
139.85 - 198.54
If the sensitivities in the table above moved by 10 per cent, the fair value of the sucklers and weaners as well as finished pigs would move by £2.8 million.
There is no material impact on the Group.
Valuation processes
The valuation approach of the Group’s biological assets as well as the final results are discussed at the Group’s Audit Committee alongside any key
judgements made during year end and interim reporting. This also entails a discussion and analysis of any changes in Level 2 and Level 3 fair values.
The main Level 3 inputs used by the Group are derived by applying a correlation with the current UK Standard Pig Price.
Interest rate risk profile of financial assets and liabilities
The interest rate profile of the interest-earning financial assets and interest-bearing liabilities of the Group as at 30 March 2024 and their weighted
average interest rates is set out below.
As at 30 March 2024
Fixed interest
Weighted
average
effective At floating
interest rate Total interest rates 1 year or less 1–2 years 2–3 years
% £’m £’m £’m £’m £’m
Financial liabilities:
Revolving credit facility
6.0%
(28.0)
(28.0)
–
–
–
Financial assets:
Cash at bank
0.0%
27.0
27.0
–
–
–
(1.0)
(1.0)
–
–
–
As at 25 March 2023
Fixed interest
Weighted
average
effective At floating
interest rate Total interest rates 1 year or less 1–2 years 2–3 years
% £’m £’m £’m £’m £’m
Financial liabilities:
Revolving credit facility
3.3%
(42.0)
(42.0)
–
–
–
Financial assets:
Cash at bank
0.0%
20.3
20.3
–
–
–
(21.7)
(21.7)
–
–
–
The maturity profile of bank loans is set out in Note 19.
Currency profile
The Group’s financial assets at 30 March 2024 include Sterling denominated cash balances of £20.5 million (2023: £10.5 million), Euro £6.2 million
(2023: £9.5 million), and US Dollar £0.3 million (2023: £0.3 million) all of which are held in the UK.
The proportion of the Group’s net assets denominated in foreign currencies is immaterial.
The Group’s other financial assets and liabilities are denominated in Sterling.
Currency sensitivity analysis has not been included below as the foreign currency risk is not considered to be material to the Group.
Credit risk
The Group makes a significant proportion of its sales to the major UK supermarket groups, which correspondingly represent a significant proportion
of the Group’s trade receivables at any one time. Based on the financial strength of these customers, the Directors do not consider that the Group faces
a significant credit risk in this regard. Debts with other customers, which represent a smaller proportion of the Group’s trade receivables, are considered
to provide greater risk, particularly in the current economic climate. All debts are reviewed using lifetime expected credit losses considering both
historic and forward looking data which then generates an expected loss rate and provision.
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
176
FINANCIAL STATEMENTS
21. Financial Instruments (continued)
All cash financial assets are held by UK financial institutions. The maximum credit exposure relating to financial assets is represented by their carrying
values as at the balance sheet date.
Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.
Transfers between levels of the fair value hierarchy are deemed to have occurred during the reporting period.
The Group’s forward currency contracts are measured using Level 2 of the fair value hierarchy. The valuations are provided by the Group’s bankers
from their proprietary valuation models and are based on mid-market levels as at close of business on the Group’s year end reporting date.
Contingent consideration is measured using Level 3 of the fair value hierarchy and relates to future amounts payable on acquisitions. Amounts payable
are based on agreements within purchase contracts, management’s expectations of the future profitability of the acquired entity and the timings
of payments.
Fair value of financial instruments
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties on an arm’s length basis.
The fair value of floating rate assets and liabilities is estimated to be equivalent to book value. All derivative financial instruments are shown in the
balance sheet at fair value.
2024
2023
Book value Fair value Book value Fair value
£’m £’m £’m £’m
Forward currency contracts liability (Note 17 and Note 19)
0.2
0.2
–
–
Contingent consideration (Note 13 and Note 19)
1.7
1.7
2.7
2.7
The book value of trade and other receivables, trade and other payables, cash balances, loans receivable, overdrafts and amounts outstanding under
revolving credit facility equates to fair value for the Group.
Hedges
Financial instruments designated as cash flow hedges are held at fair value in the balance sheet. The Group hedges the following cash flows:
Forward contracts to hedge expected future purchases
The Group hedges a proportion of its near-term expected purchases denominated in overseas currencies. Where these hedges meet the hedge criteria
of IFRS 9, changes in fair value are posted directly to other comprehensive income and subsequently reclassified through the income statement at the
time that the hedged item affects profit or loss.
Exchange Fair value
Currency
Amount
Maturities
rates £’m
Euros
€41.6m
31 Mar 2024 – 01 Dec 2024
1.14 – 1.17
(0.2)
US Dollars
$3.0m
16 April 2024 – 24 May 2024
1.26 – 1.27
–
These contracts were effective cash flow hedges under the criteria set out in IFRS 9 and therefore fair value gains and losses related to the contracts
were recognised directly in other comprehensive income .
Interest rate risk
The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant, of the Group’s
profit before tax (through the impact on floating rate borrowings). There is no material impact on the Group’s equity.
Currency derivatives have not been included in the sensitivity analysis below as they are not considered to be exposed to interest rate risk.
Cranswick plc Annual Report & Accounts 2024
177
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
21. Financial Instruments (continued)
Increase/ Effect on profit
decrease before tax
in basis points £’m
2024
Sterling
+10 0
(0.8)
-100
0.8
2023
Sterling
+10 0
(1.0)
-100
1.0
Liquidity risk
The tables below summarise the maturity profile of the Group’s financial liabilities at 30 March 2024 and 25 March 2023 based on contractual
undiscounted payments:
As at 30 March 2024
Less than
1 year 1 to 2 years 2 to 5 years Over 5 years Total
£’m £’m £’m £’m £’m
Revolving credit facility
–
–
28.0
–
28.0
Deferred and contingent consideration
2.1
–
–
–
2.1
Trade and other payables
310.0
0.6
0.3
–
310.9
Derivative financial instruments
0.2
–
–
–
0.2
Lease liabilities
19.5
18.0
42.5
34.7
114.7
331.8
18.6
70.8
34.7
455.9
At 25 March 2023
Less than
1 year 1 to 2 years 2 to 5 years Over 5 years Total
£’m £’m £’m £’m £’m
Revolving credit facility
–
–
42.0
–
42.0
Contingent consideration
–
2.7
–
–
2.7
Trade and other payables
268.5
0.2
0.2
–
268.9
Derivative financial instruments
0.1
–
–
–
0.1
Lease liabilities
15.6
14.1
32.4
27.4
89.5
284.2
17.0
74.6
27. 4
403.2
The impact of liquidity risk on the Group is discussed in detail in the Directors’ Report on page 130.
Capital management
The primary objective of the Group’s capital management policy is to ensure that it maintains a strong credit rating and healthy capital ratios in order to
support its business and maximise value for Shareholders and other stakeholders. The Group regards its Shareholders’ equity and net debt as its capital.
For further information see page 134 of the Directors’ Report. An analysis of the changes in net debt can be found in Note 26.
22 . Called -up Sha re Capital
Allotted, called-up and fully paid – Ordinary shares of 10 pence each:
2024 2023 2024 2023
Number Number £’m £’m
At beginning of year
53,702,395
53,178,624
5.4
5.3
On exercise of share options
302,549
382,925
–
0.1
Deferred Bonus Plan
2,666
–
–
–
Scrip dividends
–
140,846
–
–
At end of year
54,007,610
53,702,395
5.4
5.4
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
178
FINANCIAL STATEMENTS
22 . Called -up Sha re Capital (continued)
On 27 January 2023, 76,398 ordinary shares were issued at 3,033.2 pence as a result of Shareholders exercising the scrip dividend option in lieu
of the cash payment for the 2023 interim dividend.
On 12 September 2022, 64,448 ordinary shares were issued at 3,288.4 pence as a result of Shareholders exercising the scrip dividend option in lieu
of the cash payment for the 2022 final dividend.
During the course of the year, 302,549 ordinary shares were issued to employees exercising SAYE and LTIP options at prices between nil and
2,800.0 pence.
Ordinary share capital of £165,246 is reserved for allotment under the Savings Related Share Options Schemes and Long-Term Incentive Plans (LTIP).
The options are exercisable as follows:
Number
Exercise price
Exercise period
Savings related
9,887
2,239p
March 2022 – October 2024
Savings related
26,725
2,534p
March 2023 – October 2025
Savings related
91,237
2,800p
March 2024 – October 2026
Savings related
186,000
2,899p
March 2025 – October 2027
Savings related
299,551
2,498p
March 2026 – October 2028
Savings related
280,523
3,127p
March 2027 – October 2029
LTIP
758,538
Nil
June 2024 – July 2033
23. Shares held in trust
During the 53 weeks ended 30 March 2024, the Cranswick Employee Benefit Trust (the ‘Trust’), which was set up in May 2020, began purchasing
Cranswick plc shares. Shares held in trust are recorded at cost and deducted from equity.
The Shares held in trust reserve represents the cost of shares in Cranswick plc purchased in the market and held by the Trust to satisfy share awards
under the Group’s Long-Term Incentive Plan and SAYE scheme.
The number of ordinary shares held by the Trust at 30 March 2024 was 400,250 which represents 0.74 per cent of total called-up share capital.
No shares held in trust in Cranswick plc were cancelled during the periods presented.
24. Share-based Payments
The Group operates two share option schemes, a revenue approved scheme (SAYE) and a Long-Term Incentive Plan (LTIP), both of which are equity-
settled. The total expense charged to the income statement during the year in relation to share-based payments was £8.8 million (2023: £4.7 million).
The Group changed its accounting policy for Share-based payments such that the value of shares that have exercised, lapsed or forfeit is now credited
to Retained earnings as opposed to remaining within the Share Based Payment Reserve, for more details refer to Note 2. The total value of shares that
have exercised, lapsed or forfeit in the year was £6.5 million (2023: £6.1 million).
Long-Term Incentive Plan (LTIP)
During the course of the year, 286,295 options at nil cost were granted to Directors and Senior Executives, the share price at that time was £32.46.
Details of the performance criteria relating to the LTIP scheme can be found in the Remuneration Committee Report on page 106. The maximum
term of LTIP options is ten years.
2024 2024 2023 2023
Number WAEP (£) Number WAEP (£)
Outstanding as at beginning of year
695,658
–
659,908
–
Granted during the year (i)
286,295
–
268,622
–
Lapsed during the year
(84,867)
–
(2,453)
–
Exercised during the year (ii)
(138,548)
–
(230,419)
–
Outstanding as at end of year (iii)
758,538
–
695,658
–
Exercisable at end of year
11,749
–
24,382
–
(i) The weighted average fair value of options granted during the year was £21.00 (2023: £21.04). The share options granted during the year were at £nil per share.
The share price at the date of grant was £32.46 (2023: £30.34).
(ii) The weighted average share price at the date of exercise for the options exercised was £32.96 (2023: £30.76).
(iii) For the share options outstanding as at 30 March 2024, the weighted average remaining contractual life is 8.36 years (2023: 8.31 years).
The exercise price for all options outstanding at the end of the year was £nil.
Cranswick plc Annual Report & Accounts 2024
179
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
24. Share-based Payments (continued)
All Employee Share Option Scheme (SAYE)
All employees are eligible to participate in the SAYE scheme if they are in employment with the Group on the relevant invitation date. The exercise price
is equal to the market price of the shares less 20 per cent on the relevant date. The contractual life of the options is three or five years. The maximum
term of SAYE options is 3.5 or 5.5 years.
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, SAYE share options during the year:
2024 2024 2023 2023
Number WAEP (£) Number WAEP (£)
Outstanding as at beginning of year
898,138
26.58
880,349
27.04
Granted during the year (i)
288,842
31.27
364,489
24.98
Lapsed during the year
(127,815)
26.79
(190,225)
27. 8 9
Exercised during the year (ii)
(165,242)
26.50
(156,475)
23.82
Outstanding as at end of year (iii)
893,923
28.08
898,138
26.58
Exercisable at end of year
75,991
27.27
61,817
25.33
(i) The share options granted during the year were at £31.27 (2023: £24.98), representing a 20 per cent discount on the price at the relevant date.
The share price at the date of grant was £38.08 (2023: £30.78).
(ii) The weighted average share price at the date of exercise for the options exercised was £37.21 (2023: £31.53).
(iii) For the share options outstanding as at 30 March 2024, the weighted average remaining contractual life is 2.51 years (2023: 2.62 years).
The weighted average fair value of options granted during the year was £10.03 (2023: £8.66). The range of exercise prices for options outstanding
at the end of the year was £24.98–£31.27 (2023: £22.39–£28.99).
The fair value of the SAYE options has been estimated as at the date of grant using the Black-Scholes option pricing model, taking into account the terms
and conditions upon which the options were granted. The LTIP equity settled options have been calculated using a Stochastic option pricing model for
the TSR element, a Black-Scholes option pricing model for the EPS, emissions, water intensity and energy intensity elements and Chaffe option pricing
model for the holding period. The following table lists the inputs to the model used for the years ended 30 March 2024 and 25 March 2023:
2024
LTIP
2024
SAYE
2023
LTIP
2023
SAYE
Dividend yield
2.35%
2.14%
2.49%
2.48%
Expected share price volatility
22.65%
– 22.93%
22.25%
– 25.35%
22.70%
– 26.99%
25.44% – 26.91%
Risk-free interest rate
4.67%
– 5.05%
3.32%
– 3.53%
1.55% –
1.63%
3.50% – 3.63%
Expected life of option
3 years
3.42 –
5.42 years
3 years
3.42 – 5.42 years
Exercise prices
£nil
£31.27
£nil
£24.98
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility
reflects the assumption that the historical volatility is indicative of future trends, which may not necessarily be the actual outcome.
The initial fair value of LTIP options is adjusted to take into account market-based performance conditions.
25. Pension Schemes
Defined benefit pension scheme
The Group acquired a defined benefit final salary pension scheme during 2009, which is funded by the payment of contributions to separately
administered trust funds. The scheme was closed to new members and future accrual on 30 June 2004.
In line with Pension Regulation, the plan assets are separately managed by independent trustees.
The trustees purchased a buy-in insurance policy on 2 December 2022 to secure the majority of the benefits provided by the scheme. The trustees
remain responsible for paying the benefits from the scheme which are met by income from the buy-in policy.
Pension costs are determined with the advice of an independent qualified actuary on the basis of a triennial valuation using the projected unit credit
method. The latest available formal actuarial valuation of the scheme was carried out as at 31 December 2021. This valuation was updated to the year
end. Plan assets are stated at fair value at the respective balance sheet dates and overall expected rates of return are established by applying published
brokers’ forecasts to each category of scheme assets.
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
180
FINANCIAL STATEMENTS
25. Pension Schemes (continued)
a) Change in benefit obligation
2024 2023
£’m £’m
Benefit obligation at the beginning of the year
22.1
30.1
Interest cost
1.0
0.9
Remeasurement (gains)/losses:
Actuarial gains arising from changes in financial assumptions
(1.8)
(9.4)
Actuarial losses arising from changes in demographic assumptions
–
0.2
Other experience items
0.2
1.5
Benefits paid from plan
(0.7)
(1.2)
Benefit obligation at the end of the year
20.8
22.1
b) Change in plan assets
2024 2023
£’m £’m
Fair value of plan assets at the beginning of the year
22.3
38.4
Interest income
1.0
1.0
Return on plan assets
(1.6)
(17.3 )
Recognition of loss at inception date of buy-in policy
–
(2.9)
Employer contributions
–
4.3
Benefits paid from plan
(0.7)
(1.2)
Fair value of plan assets at the end of the year
21.0
22.3
c) Amounts recognised in the balance sheet
2024 2023
£’m £’m
Present value of funded obligations
(20.8)
(22.1)
Fair value of plan assets
21.0
22.3
Net asset recorded in the balance sheet
0.2
0.2
d) Components of pension cost
2024 2023
£’m £’m
Amounts recognised in the income statement:
Interest cost
1.0
0.9
Interest income
(1.0)
(1.0)
Total pension income recognised in the income statement
–
(0.1)
Actual return on assets
Actual return on plan assets
(0.6)
(16.3)
Amounts recognised in the Group statement of comprehensive income
Actuarial (losses)/gains immediately recognised
–
(12.5)
The weighted average actuarial assumptions used in the valuation of the scheme were as follows:
e) Principal actuarial assumptions 2024
2023
Discount rate
4.85%
4.65%
Rate of price inflation
3.15%
3.05%
Revaluation of deferred pensions:
Benefits accrued prior to 1 January 1998
5.00%
5.00%
Benefits accrued after 1 January 1998
3.15%
3.05%
Rate of compensation increase:
Benefits accrued prior to 1 January 1997
3.00%
3.00%
Benefits accrued after 1 January 1997
3.15%
3.05%
Future expected lifetime of pensioner at age 65:
2024
2023
Current pensioners:
Male
20.9
20.9
Female
23.8
23.8
Future pensioners:
Male
22.2
22.2
Female
25.2
25.2
Cranswick plc Annual Report & Accounts 2024
181
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
25. Pension Schemes (continued)
The mortality rates used have been taken from Base tables S3PA (2023: S3PA) Male: post retirement 115 per cent S3PMA YoB CMI 2021
improvements 1.25 per cent long-term rate of improvement; Females: post retirement 101 per cent S3PFA_M YoB CMI 2021 improvements
1.25 per cent long-term rate of improvement. (2023: Male: post retirement 115% S3PMA YoB CMI 2021 improvements 1.25 per cent Long-Term rate
of improvement; Females: post retirement 101 per cent S3PFA_M YoB CMI 2021 improvements 1.25 per cent long-term rate of improvement).
At 30 March 2024, the average duration of the scheme liabilities was 17 years (2023: 19 years). For deferred pensions the average duration was
20 years (2023: 23 years) and for pensions in payment the average duration was 10 years (2023: 11 years).
A 0.1 per cent increase/decrease in the discount rate would give rise to a £351,000 decrease/£357,000 increase (2023: £416,000 decrease/
£424,000 increase) in the scheme liabilities at 30 March 2024.
A 0.1 per cent increase/decrease in the inflation assumption would give rise to a £154,000 increase/£153,000 decrease (2023: £180,000
increase/£179,000 decrease) in the scheme liabilities at 30 March 2024.
A one year increase/decrease in the life expectancy assumption would give rise to a £713,000 increase/£650,000 decrease (2023: £673,000
increase/£697,000 decrease) in the scheme liabilities at 30 March 2024.
The scheme rules require the pension benefits to be uplifted by Retail Price Index (RPI), so there was no financial effect from the statutory requirement
to uplift pension benefits by Consumer Price Index (CPI) rather than RPI.
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur,
and changes in some of the assumptions might be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial
assumptions, the same method (that is, present value of the defined benefit obligation calculated with the projected unit credit method at the end of the
reporting period) has been applied as when calculating the defined benefit surplus recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared the prior period.
From the date of the buy-in, the vast majority of all benefits payable under the scheme are covered by the buy-in policy. For the benefits covered under
the buy-in policy, the investment, inflation, interest rate and longevity risk of the scheme are insured.
The split of the fund’s liability by category of membership is as follows:
2024 2023
£’m £’m
Deferred pensioners
12.3
13.2
Pensions in payment
8.5
8.9
20.8
22.1
f) Plan assets
2024 2023
Fair value of Fair value of
plan assets plan assets
£’m £’m
Annuities
1.8
1.9
Cash
0.5
0.5
Buy-in policy
18.7
19.9
Total
21.0
22.3
The plan has not invested in any of the Group’s own financial instruments nor in any properties or other assets used by the Group. Annuities are in place
for 75 pensioner members and held in the name of the Trustees. This manages the risk as future pension payments are matched with income from
the annuity.
The Group does not expect to contribute any further to the scheme during the year ending 29 March 2025.
The Group has the right to recover any remaining surplus on the winding up of the pension scheme. The Group has the right to recover any remaining
surplus through a refund. Information on management’s judgement in relation to this is provided in Note 2.
Defined contribution pension schemes
The Group also operates defined contribution pension schemes whereby contributions are made to schemes operated by major insurance companies.
Contributions to these schemes are determined as a percentage of employees’ earnings. Contributions owing to the insurance companies at the year
end, included in trade and other payables, amounted to £1.8 million (2023: £0.8 million). Contributions during the year totalled £9.0 million
(2023: £8.6 million).
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
182
FINANCIAL STATEMENTS
26. Additional Cash Flow Information
Analysis of changes in net debt:
At Other At
26 March Acquired on non-cash 30 March
2023 acquisition Cash flow changes 2024
£’m £’m £’m £’m £’m
Cash and cash equivalents
20.3
(1.5)
8.2
–
27.0
Bank loans
–
(6.5)
6.5
–
–
Revolving credit facility
(40.5)
–
14.0
(0.6)
(27.1)
Lease liabilities
(81.2)
–
17.8
(35.9)
(99.3)
Net debt
(101.4)
(8.0)
46.5
(36.5)
(99.4)
Net debt is defined as cash and cash equivalents and loans receivable less interest-bearing liabilities net of unamortised issue costs.
At Other At
27 March non-cash 25 March
2022 Cash flow changes 2023
£’m £’m £’m £’m
Cash and cash equivalents
0.2
20.1
–
20.3
Revolving credit facility
(36.4)
(3.6)
(0.5)
(40.5)
Lease liabilities
(69.8)
16.3
( 27.7 )
(81.2)
Net debt
(106.0)
32.8
(28.2)
(101.4)
27. Contingent Liabilities
The Company, together with its subsidiary undertakings, has entered into a cross guarantee with Lloyds Banking Group plc, The Royal Bank of Scotland
plc, HSBC UK plc, Bank of China Limited and Coöperatieve Rabobank U.A. in respect of the Group’s facility with those banks. Drawn down amounts
totalled £28.0 million as at 30 March 2024 (2023: £42.0 million).
28. Commitments
(a) The Directors have contracted for future capital expenditure for property, plant and equipment totalling £37.6 million (2023: £25.0 million).
(b) The future minimum rentals payable under non-cancellable operating leases that do not meet the criteria for right-of-use assets under IFRS 16
(e.g. low-value leases) are as follows:
2024 2023
£’m £’m
Not later than one year
0.2
0.2
After one year but not more than five years
–
–
After five years
–
–
0.2
0.2
29. Related Party Transactions
In the Group accounts, transactions between the Company and its subsidiaries are eliminated on consolidation.
The Group consider the Directors to be the key management personnel. Remuneration of key management personnel:
2024 2023
£’m £’m
Short-term employee benefits
8.2
5.9
Share-based payments
3.6
1.3
11. 8
7.2
During the year the Group made purchases of £2.2 million from its joint venture and made sales of £1.1 million to its joint venture. As at 30 March 2024,
the Group owed £0.2 million to, and was owed £0.1 million by its joint venture.
Cranswick plc Annual Report & Accounts 2024
183
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
30. Alternative Performance Measures
The Board monitors performance principally through adjusted and like-for-like performance measures. Adjusted profit and earnings per share measures
exclude certain non-cash items including the net IAS 41 valuation movement on biological assets, amortisation and impairment of acquired intangible
assets. Free cash flow is defined as net cash from operating activities less net interest paid and like-for-like revenue excludes the benefit of acquisitions
in the current and prior year. Free cash conversion reflects free cash flow adjusted for non-growth capital expenditure, the net IAS 41 valuation
movement on biological assets, lease capital and lease interest paid; as a percentage of adjusted profit. Return on capital employed is a key performance
indicator for the Group and is defined as adjusted operating profit divided by the sum of average opening and closing net assets, net debt/(funds),
pension liability/(surplus) and deferred tax.
The Board believes that such alternative measures are useful as they exclude volatile (net IAS 41 valuation movement on biological assets), one-off
(impairment of intangible assets) and non-cash (amortisation of intangible assets) items which are normally disregarded by investors, analysts and
brokers in gaining a clearer understanding of the underlying performance of the Group when making investment and other decisions. Equally,
like-for-like revenue provides these same stakeholders with a clearer understanding of the organic sales growth of the business.
Like-for-like revenue
2024 2023
£’m
£’m
Change
Revenue
2,599.3
2,323.0
+11.9 %
Cranswick Mediterranean Foods Limited
(1.6)
–
Elsham Linc Limited
(4.7)
–
Froch Foods Limited
(1.2)
–
Like-for-like revenue
2,591.7
2,323.0
+11.6%
Adjusted gross profit
2024 2023
£’m
£’m
Change
Gross profit
376.9
308.5
+22.2%
Net IAS 41 valuation movement
(2.2)
( 7.6)
Adjusted gross profit
374.7
300.9
+24.5%
Adjusted Group operating profit and adjusted EBITDA
2024 2023
£’m
£’m
Change
Group operating profit
166.9
145.9
+14 . 4%
Net IAS41 valuation movement
(2.2)
( 7.6)
Amortisation of intangible assets
5.0
5.2
Impairment of intangible assets
15.4
3.0
Adjusted Group operating profit
185.1
146.5
+26.3%
Depreciation of property, plant and equipment
65.5
54.1
Depreciation of right-of-use assets
16.2
14.7
Adjusted EBITDA
266.8
215.3
+23.9%
Adjusted profit before tax
2024 2023
£’m
£’m
Change
Profit before tax
158.4
139.5
+13. 5%
Net IAS41 valuation movement
(2.2)
( 7.6)
Amortisation of intangible assets
5.0
5.2
Impairment of intangible assets
15.4
3.0
Adjusted profit before tax
176.6
14 0.1
+26.1%
NOTES TO THE ACCOUNTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
184
FINANCIAL STATEMENTS
30. Alternative Performance Measures (continued)
Adjusted earnings per share
2024 2024 2023 2023
2024 Basic Diluted 2023 Basic Diluted
£’m pence pence £’m pence pence
On profit for the year
113.1
210.4
209.7
111.4
208.3
207. 8
Amortisation of intangible assets
5.0
9.4
9.3
5.2
9.6
9.6
Tax on amortisation of intangible assets
(1.3)
(2.3)
(2.3)
(1.0)
(1.8)
(1.8)
Net IAS 41 valuation movement
(2.2)
(4.2)
(4.1)
( 7.6)
(14.2)
(14.2)
Tax on net IAS 41 valuation movement
0.6
1.0
1.0
1.9
3.6
3.6
Impairment of goodwill
15.1
28.0
27.9
–
–
–
Impairment of acquired intangible assets
0.3
0.6
0.6
3.0
5.6
5.6
Tax on impairment of acquired intangible assets
(0.1)
(0.1)
(0.1)
(0.6)
(1.1)
(1.1)
On adjusted profit for the year
130.5
242.8
242.0
112. 3
210.0
209.5
Free cash flow
2024 2023
£’m
£’m
Change
Net cash from operating activities
228.4
153.0
+49.3%
Net interest paid
(5.0)
(3.8)
Free cash flow
223.4
149.2
+49.7%
Free cash conversion
2024 2023
£’m
£’m
Change
Free cash flow
223.4
149.2
+49.7%
Non-growth capital expenditure
(22.1)
(36.4)
Net IAS 41 valuation movement
2.2
7. 6
Lease capital paid
(14.2)
(13.8)
Lease interest paid
(3.6)
(2.5)
185.7
104.1
Adjusted profit for the year
130.5
112.3
Free cash conversion
142.3%
92.7%
+4,960 bps
Return on capital employed
2024 2023
£’m
£’m
Change
Average opening and closing net assets
877.2
805.6
Average opening and closing net debt
100.4
103.7
Average opening and closing pension surplus
(0.2)
(4.2)
Average opening and closing deferred tax
24.6
20.1
1,002.0
925.2
Adjusted Group operating profit
185.1
146.5
Return on capital employed
18.5%
15.8%
+264 bps
Cranswick plc Annual Report & Accounts 2024
185
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
COMPANY BALANCE SHEET
AT 30 MARCH 2024
Notes
2024
£’m
2023
Restated*
£’m
27 March
2022
Restated*
£’m
Non-current assets
Property, plant and equipment 7 0.3 0.6 0.7
Investments in subsidiary undertakings 9 155.5 152.1 179.3
Trade and other receivables 10 162.7 160.8 112.8
Right-of-use assets 8 0.4 0.4 0.5
Deferred tax assets 6 1.1 0.4 1.1
Total non-current assets 320.0 314.3 294.4
Current assets
Trade and other receivables 10 9.7 4.1 5.8
Cash and short-term deposits 1.2 11. 5 –
Total current assets 10.9 15.6 5.8
Total assets 330.9 329.9 300.2
Current liabilities
Trade and other payables 11 (62.3) (60.5) (56.0)
Financial liabilities 12 – – (0.4)
Lease liabilities 8 (0.1) (0.1) (0.1)
Provisions 13 – – (0.1)
Income tax payable (12.7) (3.8) (7.4)
Total current liabilities (75.1) (64.4) (64.0)
Non-current liabilities
Financial liabilities 12 (27.1) (40.5) (36.4)
Lease liabilities 8 (0.3) (0.4) (0.5)
Provisions 13 (0.8) (0.8) (0.7)
Total non-current liabilities (28.2) (41.7) ( 3 7.6)
Total liabilities (103.3) (10 6.1) (101.6)
Net assets 227.6 223.8 198.6
Equity
Called-up share capital 15 5.4 5.4 5.3
Share premium account 128.3 123.9 115.9
Shares held in trust 16 (15.6) – –
General reserve – 4.0 4.0
Merger reserve 1.8 1.8 1.8
Share-based payments 17 11.8 9.5 10.9
Retained earnings 95.9 79.2 60.7
Total equity 227.6 223.8 198.6
* See note 2 for details regarding the restatement as a result of a change in accounting policy.
The Company’s profit for the 53 weeks ended 30 March 2024 was £49.7 million (2023: £53.0 million).
The financial statements on pages 186 to 195 were approved by the Board of Directors on 21 May 2024 and signed on its behalf by
Tim J Smith CBE Mark Bottomley
Chairman Chief Financial Officer
21 May 2024
Cranswick plc Annual Report & Accounts 2024
186
FINANCIAL STATEMENTS
COMPANY STATEMENT OF CHANGES IN EQUITY
AT 30 MARCH 2024
Share
capital
Note
(a)
£’m
Share
premium
Note
(b)
£’m
General
reserve
Note
(c)
£’m
Merger
reserve
Note
(d)
£’m
Share-based
payments
Note
(e)
£’m
Shares held
intrust
Note
(f)
£’m
Retained
earnings
£’m
Total
equity
£’m
At 26 March 2022 as originally presented 5.3 115.9 4.0 1.8 44.3 – 27. 3 198.6
Change in accounting policy – – – – (33.4) – 33.4 –
Total equity at the beginning of the
financialyear (restated*) 5.3 115.9 4.0 1.8 10.9 – 60.7 198.6
Profit for the year, being total
comprehensive income – – – – – – 53.0 53.0
Share-based payments – – – – 4.7 – – 4.7
Exercise, lapse or forfeit of
share-basedpayments (restated*) – – – – (6.1) – 6.1 –
Scrip dividend – 4.4 – – – – – 4.4
Share options exercised 0.1 3.6 – – – – – 3.7
Dividends – – – – – – (40.7) (40.7)
Deferred tax related to changes in equity – – – – – – (0.3) (0.3)
Current tax related to changes in equity – – – – – – 0.4 0.4
At 25 March 2023 (restated*) 5.4 123.9 4.0 1.8 9.5 – 79.2 223.8
At 25 March 2023 as originally presented 5.4 123.9 4.0 1.8 49.0 – 39.7 223.8
Change in accounting policy – – – – (39.5) – 39.5 –
Total equity at the beginning of the financial
year (restated*) 5.4 123.9 4.0 1.8 9.5 – 79.2 223.8
Profit for the year, being total
comprehensive income – – – – – – 49.7 49.7
Share-based payments – – – – 8.8 – – 8.8
Shares acquired by Employee Benefit Trust – – – – – (15.6) – (15.6)
Exercise, lapse or forfeit of
share-based payments – – – – (6.5) – 6.5 –
Share options exercised – 4.4 – – – – – 4.4
Transfer of reserves – – (4.0) – – – 4.0 –
Dividends – – – – – – (43.9) (43.9)
Deferred tax related to changes in equity – – – – – – 0.3 0.3
Current tax related to changes in equity – – – – – – 0.1 0.1
At 30 March 2024 5.4 128.3 – 1.8 11.8 (15.6) 95.9 227.6
* See note 2 for details regarding the restatement as a result of a change in accounting policy.
Notes:
(a) Share capital
The balance classified as share capital represents the nominal value of ordinary 10 pence shares issued.
(b) Share premium
The balance classified as share premium includes the net proceeds in excess of nominal value on issue of the Company’s equity share capital, comprising 10 pence ordinary shares.
(c) General reserve
This reserve arose in 1993 when the High Court of Justice granted permission to reduce the Company’s share premium account by £4.0 million which was credited to a separate reserve named the General
reserve. During the year, the General reserve was transferred into Retained earnings.
(d) Merger reserve
Where shares have been issued as consideration for acquisitions, the value of shares issued in excess of nominal value has been credited to the merger reserve rather than to the share premium account.
(e) Share-based payments reserve
This reserve records the fair value of share-based payments expensed in the income statement, and in the case of the Company in relation to share-based payments to employees of subsidiary companies,
capital contributions to cost of investments. The value of shares that have exercised, lapsed or forfeit is credited to Retained earnings.
(f) Shares held in trust
The shares held in trust are intended to be granted to the beneficiaries of the Group’s SAYE and Long-Term Incentive Plan (LTIP) when the relevant conditions of the SAYE and LTIP are satisfied,
with a transfer between the Shares held in trust reserve and Retained earnings.
Cranswick plc Annual Report & Accounts 2024
187
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
NOTES TO THE COMPANY FINANCIAL STATEMENTS
1. Authorisation of Financial Statements
The Company financial statements of Cranswick plc (the ‘Company’) for the 53 weeks ended 30 March 2024 were authorised for issue by the Board
ofDirectors on 21 May 2024 and the Balance Sheet was signed on the Board’s behalf by Tim Smith and Mark Bottomley.
Cranswick plc is a public limited company incorporated and domiciled in England, United Kingdom (Company number: 1074383, registered office:
Crane Court, Hesslewood Country Office Park, Ferriby Road, Hessle, East Yorkshire HU13 0PA). The Company’s ordinary shares are traded on the
London Stock Exchange. The principal activity of the Company is that of a holding company.
2. Accounting Policies
Basis of preparation
The Company only Financial Statements of Cranswick plc (the ‘Company’) were prepared under the historical cost convention. In the prior year, the
Company elected to change the basis of preparation from UK-Adopted International Accounting Standards (‘UK-Adopted IAS’) to Financial Reporting
Standard 101 Reduced Disclosure Framework (‘FRS 101’), which had no material impact on the information presented. In preparing these financial
statements, the Company applies the recognition, measurement and disclosure requirements of International Financial Reporting Standards as adopted
by the UK (UK-adopted international accounting standards), but makes amendments where necessary in order to comply with the Companies Act 2006
and to take advantage of FRS 101 disclosure exemptions.
In these financial statements, the company has applied the exemptions available under FRS 101 in respect of the following disclosures:
• The requirements of IAS 7, ‘Statement of cash flows’;
• The requirements of IFRS 7 ‘Financial Instruments: Disclosures’;
• Paragraphs 45(b) and 46 to 52 of IFRS 2, ‘Share-based payments’;
• Paragraphs 91 to 99 of IFRS 13, ‘Fair value measurement’;
• The requirements of paragraphs 10(d), 10(f), 39(c) and 134–136 of IAS 1 ‘Presentation of Financial Statements’;
• The requirement in paragraph 38 of IAS 1 ‘Presentation of Financial Statements’ to present comparative information in respect of:
– paragraph 79(a)(iv) of IAS 1;
– paragraph 73(e) of IAS 16 Property, Plant and Equipment;
• The requirements of paragraphs 30 and 31 of IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’;
• The requirements of paragraph 17 of IAS 24 ‘Related Party Disclosures’;
• The requirements in IAS 24 ‘Related Party Disclosures’ to disclose related party transactions entered into between two or more members of a group,
provided that any subsidiary which is a party to the transaction is wholly-owned by such a member;
• The requirements of paragraphs 134(d)–134(f) and 135(c)–135(e) of IAS 36 ‘Impairment of Assets’; and
• The effects of new but not yet effective International Financial Reporting Standards.
No income statement or statement of comprehensive income is presented by the Company as permitted by Section 408 of the Companies Act 2006.
The results of the Company are included in the Group consolidated financial statements of Cranswick plc.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.
The principal accounting policies adopted have been applied consistently and are the same as those set out in Note 2 to the Consolidated
Financial Statements.
The Company Financial Statements are prepared on the going concern basis as set out in Note 2 to the Consolidated Financial Statements.
The Financial Statements of the Company are prepared to the last Saturday in March. Accordingly, these Financial Statements are prepared for the
53week period ended 30 March 2024. Comparatives are for the 52 week period ended 25 March 2023. The Balance Sheets for 2024, 2023 and 2022
have been prepared as at 30 March 2024, 25 March 2023 and 27 March 2022 respectively. The 2023 and 2022 Balance Sheets have been restated
following a change in accounting policy. For more details, please see below.
A summary of the principal accounting policies is presented below.
Judgements and key sources of estimation uncertainty
The preparation of the Company financial statements requires management to make judgements, estimates and assumptions that affect the amounts
reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year.
In the process of applying the Company’s accounting policies, management has made the following estimations and judgements, which will most likely
have a significant effect on the amounts recognised in the financial statements in the next 12 months:
Significant judgements and estimates:
Investments Note 9 – investments
Where an impairment indicator exists, the carrying value of the investment is compared to their recoverable
amount to determine whether an impairment should be recognised. The recoverable amount is the higher of the
investment’s fair value less costs of disposal and its value-in-use (‘VIU’). VIU is the present value of expected
future cash flows from the investment. The assumptions used in the model are the future cash flows, which are
derived from Board approved budgets, and the discount rate applied which represents the Group’s weighted
average cost of capital (WACC). Management do not deem these assumptions to be sensitive.
Cranswick plc Annual Report & Accounts 2024
188
FINANCIAL STATEMENTS
2. Accounting Policies (continued)
Other estimates and judgements have been applied by management in producing the Annual Report and Accounts including, but not limited to,
depreciation and amortisation rates. However, these are not considered to have a significant risk of material adjustment.
Change in accounting policy
The Company changed its accounting policy for share-based payments such that the value of shares that have exercised, lapsed or forfeit is now
credited to Retained earnings as opposed to remaining within the Share-based payment reserve.
The change in accounting policy had no impact upon the company’s profit, total comprehensive income, cash flows, net assets, or distributable reserves.
The change in accounting policy enables readers of the financial statements to identify the cumulative value of share-based payments that are still to be
exercised, lapse or forfeit.
The impact of the change in accounting policy is detailed in the Company Statement of Changes in Equity.
Adjustments to the prior year disclosure
During the current financial year, the disclosure of financial statement line items presented in the prior year have been restated to more appropriately
reflect their nature. There was no change to the reported financial performance, net assets or total cash flows of the company for any of the
restatements as at 25 March 2023 or 27 March 2022. The restatements of the 25 March 2023 and 27 March 2022 numbers can be summarised
as follows:
Previously amounts owed by subsidiary undertakings were classified as current under the legal form. During the year, this has been reclassified to
non-current to better reflect the expected repayment, and to present amounts owed to the same entity on a gross basis. The 25 March 2023 current
trade and other receivables decreased by £160.2 million, non-current trade and other receivables increased by £160.8 million, and current trade and
other payables increased by £0.6 million. The 27 March 2022 current trade and other receivables decreased by £110.8 million, non-current trade and
other receivables increased by £112.8 million, and current trade and other payables increased by £2.0 million.
Taxation
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates
andlaws that are enacted or substantively enacted by the balance sheet date. Deferred tax is provided on temporary differences at the balance sheet
date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences:
i) except where the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither accounting profit nor taxable profit or loss; and
ii) in respect of taxable temporary differences associated with investments in subsidiaries, except where the timing of the reversal of the temporary
differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities within the same tax jurisdiction are offset where there is a legally enforceable right to offset current tax assets against
current tax liabilities and where there is an intention to settle these balances on a net basis.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses,
totheextent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profits will be available against which
the temporary differences can be utilised:
i) except where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset
oraliability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss; and
ii) in respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are only recognised to the extent
that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the
temporary differences can be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that apply to the period when the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Income taxes relating to items recognised in other
comprehensive income or directly in equity are also recognised in other comprehensive income or directly in equity and not in the income statement.
Otherwise income tax is recognised in the income statement.
Dividends
Dividends receivable by the Company are recognised in the income statement if they are declared, appropriately authorised and no longer at the
discretion of the entity paying the dividend, prior to the balance sheet date. Dividends payable by the Company are recognised when declared and
therefore final dividends proposed after the balance sheet date are not recognised as a liability at the balance sheet date. Dividends paid to
Shareholders are shown as a movement in equity rather than on the face of the income statement.
Foreign currencies
Individual transactions denominated in foreign currencies are translated into functional currency at the actual exchange rates ruling at the dates of the
transactions. Monetary assets and liabilities denominated in foreign currencies are translated into functional currency at the rates ruling at the balance
sheet date. Profits and losses on settlement of individual foreign currency transactions and movements on monetary assets and liabilities are dealt with
in the income statement.
Cash and cash equivalents
Cash and cash equivalents are defined as cash at bank and in hand, including short-term deposits with original maturity within three months.
Cranswick plc Annual Report & Accounts 2024
189
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
2. Accounting Policies (continued)
Cash and cash equivalents includes BACS receipts in flight at the reporting date for transactions where control is considered to have passed to the
Company. BACS payments in flight at the reporting date are excluded from cash and cash equivalents as control is deemed to have passed from
the Company.
Property, plant and equipment
Property, plant and equipment are included at cost less accumulated depreciation and any provision for impairment.
Freehold land is not depreciated. Depreciation is charged on property, plant and equipment on the depreciable amount, being cost less the estimated
residual value (based on prices prevailing at the balance sheet date) on a straight-line basis over their estimated useful economic lives, or the estimated
useful economic lives of their individual parts.
Useful economic lives are principally as follows:
Freehold buildings 20–50 years
Plant, equipment and vehicles 4–11 years
The carrying value of property, plant and equipment is reviewed for impairment individually or at the cash-generating unit level when events or changes
in circumstances indicate that the carrying value may not be recoverable.
Investments
Investments in subsidiaries are shown at cost less any provision for impairment plus capital contributions for share based payments.
Accounting for leases
The Company leases an office. Rental contracts are typically made for fixed periods of 2 to 15 years but may have extension options. Lease terms
arenegotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants,
butleased assets may not be used as security for borrowing purposes.
From 31 March 2019, leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for
useby the Company. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the income statement over
the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset
isdepreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following
lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• variable lease payments that are based on an index or a rate;
• amounts expected to be payable by the Company under residual value guarantees;
• the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and
• payments of penalties for terminating the lease, if that lease term and payments includes options that are reasonable certain to be exercised.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Company’s weighted average
incremental borrowing rate is used, being the rate that the Company would have to pay to borrow the funds necessary to obtain an asset of similar
valuein a similar economic environment with similar terms and conditions.
Right-of-use assets are measured at cost, comprising the following:
• the amount of the initial measurement of lease liability;
• any lease payments made at or before the commencement date less any lease incentives received;
• any initial direct costs; and
• restoration costs.
Under IFRS 16, right-of-use assets are tested for impairment in accordance with IAS 36 Impairment of Assets and any impairment is provided
forbywriting down the asset value.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in the income statement.
Short-term leases are leases with a lease term of 12 months or less. Low-value assets primarily comprise IT equipment.
Trade and other payables
Trade and other payables are initially recorded at their fair value and subsequently carried at amortised cost.
Trade and other receivables
Trade receivables are recognised initially at the amount of consideration that is unconditional. The Company holds trade receivables with the objective
of collecting the contractual cash flows so they are subsequently measured at amortised cost using the effective interest method, less loss allowance.
Gains and losses are recognised in the income statement when receivables are derecognised or impaired.
The Company uses a model to calculate expected credit losses (ECL). The provision is calculated by reviewing the lifetime expected credit losses using
both historic and forward looking data. Balances are written off when the probability of recovery is assessed as being remote.
NOTES TO THE COMPANY FINANCIAL STATEMENTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
190
FINANCIAL STATEMENTS
2. Accounting Policies (continued)
Purchase of shares held in trust
The Shares held in trust reserve relates to ordinary shares in Cranswick plc which are held in an Employee Benefit Trust set up in May 2020. The shares
held in trust are intended to be granted to the beneficiaries of the Group’s SAYE and Long-Term Incentive Plan (LTIP) when the relevant conditions of the
SAYE and LTIP are satisfied, with a transfer between the Shares held in trust reserve and Retained earnings.
3. Employees
2024
£’m
2023
£’m
Staff costs:
Wages and salaries 16.6 10.1
Social security costs 2.3 1.4
Other pension costs 0.3 0.1
19.2 11.6
The average monthly number of employees during the year was:
2024 2023
Administration 83 76
83 76
Remuneration paid to the Directors is disclosed in the Remuneration report on pages 105 to 131 and in the Note 5 to the Group’s consolidated
financial statements.
4. Profit or loss
The profit attributable to equity Shareholders dealt with in the Financial Statements of the Company was £49.7 million (2023: £53.0m). In accordance
with Section 408 of the Companies Act 2006, the Company is availing of the exemption from presenting its individual Income Statement to the Annual
General Meeting and from filing it with the Registrar of Companies.
Amounts paid to the Company’s auditors in respect of the audit of the financial statements of the Company are disclosed in Note 4 to the Group’s
consolidated financial statements.
Fees paid to the auditors for non-audit services to the Company itself are not disclosed in the individual financial statements of the Company because
the Group’s consolidated financial statements are prepared which are required to disclose such fees on a consolidated basis. These are disclosed
inNote4 to the Group’s consolidated financial statements.
5. Equity Dividends
2024
£’m
2023
£’m
Declared and paid during the year:
Final dividend for 2023 – 58.8p per share (2022: 55.6p) 31.7 29.7
Interim dividend for 2024 – 22.7p per share (2023: 20.6p) 12.2 11.0
Dividends paid 43.9 40.7
Proposed for approval of Shareholders at the Annual General Meeting on 29 July 2024
Final dividend for 2024 – 67.3p per share (2023: 58.8p) 36.3 30.0
6. Taxation
a) Analysis of tax charge in the year
Tax relating to items charged or credited to other comprehensive income or directly to equity:
2024
£’m
2023
£’m
Recognised in company statement of changes in equity
Deferred tax (credit)/charge in share based payments (0.3) 0.3
Corporation tax credit on share options exercised (0.1) (0.4)
Total tax credit recognised directly in equity (0.4) (0.1)
Cranswick plc Annual Report & Accounts 2024
191
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
6. Taxation (continued)
b) Deferred tax
The deferred tax included in the Company balance sheet is as follows:
2024
£’m
2023
£’m
Deferred tax asset in the balance sheet
Other temporary differences – 0.1
Share-based payments 1.1 0.3
Deferred tax asset 1.1 0.4
7. Property, Plant and Equipment
Freehold
land and
buildings
£’m
Plant,
equipment
and vehicles
£’m
Total
£’m
Cost
At 25 March 2023 0.5 0.4 0.9
Disposals (0.3) – (0.3)
At 30 March 2024 0.2 0.4 0.6
Depreciation
At 25 March 2023 – 0.3 0.3
Charge for the year – – –
At 30 March 2024 – 0.3 0.3
Net book amounts
At 25 March 2023 0.5 0.1 0.6
At 30 March 2024 0.2 0.1 0.3
Included in freehold land and buildings is land with a cost of £0.2 million (2023: £0.5 million) which is not depreciated.
8. Right-of-use Assets
Amounts recognised in the balance sheet
The balance sheet shows the following amounts relating to leases:
Land and
buildings
£’m
Cost
At 25 March 2023 and at 30 March 2024 0.7
Depreciation
At 25 March 2023 0.3
Charge for the year –
At 30 March 2024 0.3
Net book amounts
At 25 March 2023 0.4
At 30 March 2024 0.4
2024
£’m
2023
£’m
Lease liabilities:
Current 0.1 0.1
Non-current 0.3 0.4
0.4 0.5
NOTES TO THE COMPANY FINANCIAL STATEMENTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
192
FINANCIAL STATEMENTS
9. Investments
Subsidiary
undertakings
£’m
At 27 March 2022 179.3
Capital contribution in subsidiary 0.3
Capital contribution relating to share options 6.0
Return of capital by subsidiaries (33.5)
At 25 March 2023 152.1
Capital contribution relating to share options 4.4
Return of capital by subsidiaries (1.0)
At 30 March 2024 155.5
The subsidiary undertakings as at 30 March 2024 were:
• Cranswick Country Foods plc*, registered number 01803402
• Cranswick Gourmet Pastry Company Limited*, registered number 07815262 (100 per cent owned by Cranswick Country Foods plc)
• Wayland Farms Limited*, registered number 06727508 (100 per cent owned by Cranswick Country Foods plc)
• Wold Farms Limited*, registered number 09051574 (100 per cent owned by Cranswick Country Foods plc)
• Cranswick Convenience Foods Limited*, registered number 02239912
• Kingston Foods Limited*, registered number 03798949 (100 per cent owned by Cranswick Country Foods plc)
• Benson Park Limited*, registered number 04508360 (100 per cent owned by Cranswick Country Foods plc)
• Cranswick Bio Limited*, registered number 08013140 (100 per cent owned by Cranswick Country Foods plc)
• CCL Holdings Limited*, registered number 02800280 (100 per cent owned by Cranswick Country Foods plc)
• Crown Chicken Limited*, registered number 04760487 (100 per cent owned by CCL Holdings Limited)
• Cranswick Country Foods (Ballymena)*, registered number NI071259 (registered in Northern Ireland, registered office 146 Fenaghy Road,
Cullybackey, County Antrim, Northern Ireland BT42 1EA) (100 per cent owned by The Harts Corner Natural Sausage Company Limited)
• Roma (No.1) Limited (formally Roma (No.1) plc)*, registered number 01908346
• Continental Fine Foods Limited*, registered number 02096132
• Cranswick Country Foods (Norfolk) Limited*, registered number 00835854 (92 per cent owned by Friars 587 Limited, 8 per cent owned by
Cranswick Country Foods plc)
• Cranswick Gourmet Bacon Company Limited*, registered number 04966717 (100 per cent owned by Cranswick Country Foods plc)
• Cranswick Gourmet Sausage Company Limited*, registered number 03064390 (50 per cent owned by Cranswick Country Foods plc, 50 per cent
owned by The Harts Corner Natural Sausage Company Limited)
• Cranswick Trustees Limited* registered number 04340385
• Cranswick Tuck Marketing Limited*, registered number 01942648
• Friars 587 Limited*, registered number 06727526 (100 per cent owned by Cranswick Country Foods plc)
• The Harts Corner Natural Sausage Company Limited*, registered number 02779673 (100 per cent owned by Cranswick Country Foods plc)
• White Rose Farms Limited*, registered number 11091424 (100 per cent owned by Cranswick Country Foods plc)
• Cranswick Mill Limited (formally CHL Pigs Limited)*, registered number 12426959 (100 per cent owned by White Rose Farms Limited)
• Wold Farms Breeding Limited*, registered number 08656877 (100 per cent owned by Cranswick Country Foods plc)
• Katsouris Brothers Limited*, registered number 00824300 (100 per cent owned by Cranswick Country Foods plc)
• Ramona’s Kitchen Limited*, registered number 05492903 (100 per cent owned by Cranswick Country Foods plc)
• Holdco Alpha Limited*, registered number 08126846 (100 per cent owned by Cranswick Country Foods plc)
• Cranswick Pet Products Limited*, registered number 00896298 (100 per cent owned by Holdco Alpha Limited)
• Ballyside Limited*, registered number NI676022 (registered in Northern Ireland, registered office 146 Fenaghy Road, Cullybackey, County Antrim,
Northern Ireland BT42 1EA) (100 per cent owned by Cranswick Country Foods (Ballymena))
• Cranswick Mediterranean Foods Limited*, registered number 14649146 (100 per cent owned by Katsouris BrothersLimited)
• Elsham Linc Limited*, registered number 05525289 (100 per cent owned by Cranswick Country Foods plc), acquired on 4 August 2023
• Froch Foods Holdings Limited*, registered number 14748703 (100 per cent owned by Cranswick Country Foods plc), acquired on 19 January 2024
• Froch Foods Limited*, registered number 13667244 (100 per cent owned by Froch Foods Holdings Limited), acquired on 19 January 2024
• Warwick One Limited, registered number SC189028 (registered in Scotland, registered office 21 Jenny Moores Road, St. Boswells, Melrose,
Roxburghshire, TD6 0AN), dissolved 14 November 2023
• Mulberry House Foods Limited, registered number 06414311 (100 per cent owned by Cranswick Country Foods plc), dissolved 21 November 2023
• Weeton Foods Limited, registered number 06414382 (100 per cent owned by Cranswick Country Foods plc), dissolved 21 November 2023
• Potterdale Foods Limited, registered number 05600670 (100 per cent owned by Cranswick Country Foods plc), dissolved 21 November 2023
Cranswick plc Annual Report & Accounts 2024
193
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
9. Investments (continued)
• Cranswick Country Foods (Norfolk) Pension Trustees Limited, registered number 05969955 (100 per cent owned by Cranswick Country Foods
(Norfolk) Limited), dissolved 27 February 2024
• Brookfield Foods Limited, registered number 02617865, dissolved 21 November 2023
• North Wales Foods Limited, registered number 03685950, dissolved 21 November 2023
• Cranswick Mill Limited, registered number 01941133, dissolved 21 November 2023
• Charter Pork Cuts Limited, registered number 02269959, dissolved 21 November 2023
• Crown Milling Limited, registered number 03203641 (100 per cent owned by CCL Holdings Limited), dissolved 21 November 2023
• Delico Limited, registered number 03423315, dissolved 21 November 2023
• Katsouris Bros Limited, registered number HE1550 (registered in Cyprus, registered office 28 October Street, 313, Limassol, 3105, Cyprus)
(100percent owned by Cranswick Country Foods plc), dissolved 24 November 2023
• Cypresa Products Limited, registered number 01704511 (100 per cent owned by Katsouris Brothers Limited), dissolved 21 November 2023
Except where otherwise stated, each of the companies is registered in England and Wales, with registered office Crane Court, Hesslewood Country
Office Park, Ferriby Road, Hessle, East Yorkshire HU13 0PA and Cranswick plc holds directly 100 per cent of the shares and voting rights of each
subsidiary undertaking.
* For the year ended 30 March 2024, Cranswick plc has provided a guarantee in respect of the outstanding liabilities of the subsidiary undertaking in accordance with sections 479A – 479C of the Companies
Act 2006, as these UK subsidiary companies of the Group are exempt from the requirements of the Companies Act 2006 relating to the audit of financial statements by virtue of section 479A of this Act.
The joint venture undertaking as at 30 March 2024 was:
• Mere Pigs (50 per cent held by Elsham Linc Limited), acquired 4 August 2023
The financial asset investment as at 30 March 2024 was:
• BIA Analytical Ltd, registered number NI857772 (2.77 per cent held by Cranswick Country Foods plc), acquired 22 September 2023
In the opinion of the directors, the value of the Company’s investments in its subsidiaries is not less than the amount at which it is shown
in the balance sheet.
10. Trade and Other Receivables
2024
£’m
2023
Restated*
£’m
Current:
Financial assets:
Trade receivables – 0.6
Amounts owed by subsidiary undertakings 6.3 1.1
Other receivables 1.3 0.7
7.6 2.4
Non-financial assets:
Prepayments 2.1 1.7
9.7 4.1
Non-current:
Amounts owed by subsidiary undertakings 162.7 160.8
* See note 2 for details regarding the restatement.
Amounts owed by subsidiary undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
11. Trade and Other Payables
2024
£’m
2023
Restated*
£’m
Current:
Trade payables 2.1 2.3
Amounts owed to subsidiary undertakings 39.4 39.3
Tax and social security 3.1 10.1
Other creditors 12.7 6.2
Other accruals 5.0 2.6
62.3 60.5
* See note 2 for details regarding the restatement.
Amounts owed to subsidiary undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
NOTES TO THE COMPANY FINANCIAL STATEMENTS
CONTINUED
Cranswick plc Annual Report & Accounts 2024
194
FINANCIAL STATEMENTS
12. Financial Liabilities
2024
£’m
2023
£’m
Non-current:
Amounts outstanding under revolving credit facility 28.0 42.0
Unamortised issue costs (0.9) (1.5)
27.1 40.5
All financial liabilities are carried at amortised cost.
Banking facility
Details in respect of Company banking facility is presented in Note 19 of the Group Financial Statements.
13. Provisions
Lease
provisions
£’m
At 27 March 2022 and at 25 March 2023 0.8
Created –
Utilised –
Movement on discount –
At 30 March 2024 0.8
Analysed as:
2024
£’m
2023
£’m
Current liabilities – –
Non-current liabilities 0.8 0.8
0.8 0.8
Lease provisions are held against dilapidation obligations on leased properties. These provisions are expected to be utilised over the next two years.
14. Contingent Liabilities
The Company, together with its subsidiary undertakings, has entered into a cross guarantee with Lloyds Banking Group plc, The Royal Bank of Scotland
plc, HSBC UK plc, Bank of China Limited and Coöperatieve Rabobank U.A. in respect of the Group’s facility with those banks. Drawn down amounts
totalled £28.0 million as at 30 March 2024 (2023: £42.0 million).
15. Called-up Share Capital
Details in respect of called-up share capital are presented in Note 22 of the Group Financial Statements.
16. Shares held in trust
Details in respect of shares held in trust are presented in Note 23 of the Group Financial Statements.
17. Share-based payments
The Company operates two share option schemes, a revenue approved scheme (SAYE) and a Long-Term Incentive Plan (LTIP), both of which are equity
settled. All disclosures relating to the plans are given in Note 24 of the Group Financial Statements.
The Group changed its accounting policy for share-based payments such that the value of shares that have exercised, lapsed or forfeit is now credited
toRetained earnings as opposed to remaining within the Share-based payment reserve, for more details refer to Note 2. The total value of shares that
have exercised, lapsed or forfeit in the year was £6.5 million (2023: £6.1 million).
Cranswick plc Annual Report & Accounts 2024
195
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
SHAREHOLDER
INFORMATION
197
197
198
198
199
Stakeholder Information Five Year Statement
Financial Calendar
Shareholder Analysis
Share Price Movement
Advisers
Cranswick plc Annual Report & Accounts 2024
196
SHAREHOLDER INFORMATION
STAKEHOLDER INFORMATION
FIVE YEAR STATEMENT
FINANCIAL CALENDAR
2024
£’m
2023
£’m
2022
£’m
2021
£’m
2020
£’m
Revenue 2,599.3 2,323.0 2,008.5 1,898.4 1,667. 2
Profit before tax 158.4 139.5 129.9 114.8 104.0
Adjusted profit before tax* 176.6 14 0.1 136.9 129.7 102.3
Earnings per share 210.4p 208.3p 195.7p 176.4p 159.1p
Adjusted earnings per share* 242.8p 210.0p 205.4p 199.3p 156.4p
Dividends per share 90.0p 79.4p 75.6p 70.0p 60.4p
Capital expenditure 91.4 85.1 93.7 71.9 97. 5
Net (debt)/funds (99.4) (101.4) (106.0) (92.4) (146.9)
Net assets 911.5 842.9 768.9 686.1 614.5
* Adjusted profit before tax and earnings per share exclude certain non-cash items including the net IAS 41 valuation movement on biological assets, amortisation and impairment of acquired intangible
assets, and profit on sale of a business. These are the measures used by the Board to assess the Group’s underlying performance.
Dividends per share relate to dividends declared in respect of that year.
Net (debt)/funds is defined as per Note 26 to the accounts.
Preliminary announcement of full year results May
Publication of Annual Report and Accounts June
Annual General Meeting July
Payment of final dividend August
Announcement of interim results November
Payment of interim dividend January
Cranswick plc Annual Report & Accounts 2024
197
SHAREHOLDER INFORMATION
SHAREHOLDER INFORMATION
SHAREHOLDER ANALYSIS
AT 3 MAY 2024
SHARE PRICE MOVEMENT
Number of
holdings
Number of
shares
Classification
Private Shareholders 1,413 2,690,985
Corporate bodies and nominees 561 51,352,385
1,974 54,043,370
Size of holding (shares)
1–1,000 1,228 373,180
1,001–5,000 341 785,470
5,001–10,000 84 601,352
10,001–50,000 160 3,881,250
50,001–100,000 50 3,529,035
Above 100,000 111 44,873,083
1,974 54,043,370
Share price
Share price at 25 March 2023 3,014p
Share price at 30 March 2024 4,096p
Low in the year 2,956p
High in the year 4,210p
Cranswick’s share price movement over the six year period to May 2024 and comparison against the FTSE 350 Food Producers and Processors Price
Index (FTSE FPP) and against the FTSE All Share Price Index (FTSE All Share), all rebased to Cranswick’s share price at 4 May 2018 (2,369p),
isshown below:
Share Price (p)
2024
2022 2023 2021 2019 20202018 2017
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
Cranswick
Share Price (p) (rebased to Cranswick)
FTSE All Share FTSE 350 Food Producers
Cranswick plc Annual Report & Accounts 2024
198
SHAREHOLDER INFORMATION
ADVISERS
Secretary Steven Glover LLB
Company number 107438 3
Registered office Crane Court
Hesslewood Country Office Park
Ferriby Road
Hessle
East Yorkshire
HU13 0PA
Stockbrokers HSBC Bank plc – London
Investec Investment Banking – London
Shore Capital Stockbrokers – Liverpool
Registrars Link Group
Central Square
29 Wellington Street
Leeds
LS1 4DL
Tel: +44(0)371 664 0300 (Calls are charged at the standard geographic rate and will vary by provider.
Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open
between 09:00–17:30, Monday to Friday excluding public holidays in England and Wales).
email: shareholderenquiries@linkgroup.co.uk
website: www.linkassetservices.com
Independent auditors PricewaterhouseCoopers LLP – Leeds
Tax advisers KPMG – Leeds
EY – Leeds
Solicitors Rollits LLP – Hull
Eversheds Sutherland (International) LLP – Leeds
Bankers Lloyds Banking Group plc
The Royal Bank of Scotland plc
HSBC UK plc
Cöoperatieve Rabobank U.A.
Bank of China Limited
Merchant bankers N M Rothschild & Sons – Leeds
Cranswick plc Annual Report & Accounts 2024
199
SHAREHOLDER INFORMATION
SHAREHOLDER INFORMATION
NOTES
Cranswick plc Annual Report & Accounts 2024
200
SHAREHOLDER INFORMATION
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Cranswick
Cranswick plc
Crane Court, Hesslewood Country Office Park,
Ferriby Road, Hessle, East Yorkshire HU13 0PA
01482 275 000
www.cranswick.plc.uk