Kitwave ahead of expectations after strong first half
By Josh White
Date: Wednesday 04 May 2022
(Sharecast News) - Independent wholesaler Kitwave reported a "strong" first half financial performance in a trading update on Wednesday, with all divisions now trading at pre-pandemic levels or higher.
The AIM-traded firm said that as a result, it expected its results for the full financial year to be "slightly ahead" of market expectations.
Due to the seasonality of the business, it added that there would be a heavier weighting towards trading in the second half of the year.
Kitwave did note that external factors and uncertainties from cost-of-living pressures impacting end consumers' disposable income could become more of a factor as the year progressed, however.
The company also said it would continue to face higher operating costs, however its board said it was "confident" those would be recovered.
Kitwave also confirmed that the integration of MJ Baker Foodservice, which was acquired in February, had gone to plan, with the business performing in line with internal expectations.
"I am pleased to report on the progress made by the group in the six months ended 30 April," said chief executive officer Paul Young.
"Following an encouraging first half performance, and with the second half of the year typically driving increased trading, we expect full year results to be slightly ahead of market expectations."
Young also noted that MJ Baker was Kitwave's first acquisition since its admission to AIM in May 2021.
"The acquisition of MJ Baker enables a significant expansion of the group's activities into south-west England, and complements the group's existing foodservice division.
"The integration of the business into the group is going as hoped, and the business is operating in line with internal expectations."
At 1213 BST, shares in Kitwave Group were up 1.53% at 149p.
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