Kitwave flags record results as board agrees all-cash takeover
By Josh White
Date: Thursday 22 Jan 2026
(Sharecast News) - Kitwave Group reported record interim revenue and adjusted operating profit for the year ended 31 October on Thursday, as the wholesale group also agreed the terms of a recommended £251m all-cash takeover by funds managed by OEP Capital Advisors.
In its unaudited interim results, Kitwave said revenue rose 20.9% to £802.7m, compared with £663.7m a year earlier, although like-for-like revenue fell 1%.
Consolidated gross margin improved to 22.9% from 22.3%, while adjusted operating profit increased 11.7% to £38.0m.
Adjusted EBITDA rose to £53.4m from £45.2m, and profit before tax was broadly flat at £22.4m.
Cash generation strengthened materially, with operating cash inflow of £46.4m and pre-tax operational cash conversion of 104%, up from 90% a year earlier.
The group said leverage reduced to 2.3x including IFRS 16 lease liabilities, or 1.4x excluding them, reflecting de-leveraging during the period.
Operationally, Kitwave said its retail and wholesale division outperformed the prior year in both revenue and adjusted operating profit, while Creed Foodservice delivered growth despite economic headwinds in retail and leisure spending.
The integration of Total Foodservice and Miller Foodservice was completed during the period, with further progress made on combining the enlarged foodservice business into Creed.
Kitwave also said its new south west distribution centre was now operating at required service levels following capital and operational investment, although additional costs associated with that investment continued into the second half as previously guided.
"During this period, Kitwave has achieved record revenue and adjusted operating profit," said chief executive Ben Maxted.
"Additionally, significant operational changes have been implemented across its expanded foodservice division through the integration of Creed Foodservice with our northern and south west foodservice businesses.
"This work will create opportunities for operational synergies and provide a platform for sustainable growth."
He added that the group remained highly cash generative, maintaining a strong balance sheet and facility headroom, adding that it de-levered in the period through reduction in net debt as expected.
Alongside the results, Kitwave announced that it had agreed the terms of a recommended cash acquisition by Kite UK Bidco, a newly-formed company indirectly wholly-owned by OEP-managed funds.
Under the terms of the deal, shareholders would receive 295p in cash per share, representing a premium of around 33.5% to the closing price of 221p on the last possible date and valuing the group's equity at £251m.
The transaction was expected to be implemented by way of a court-sanctioned scheme of arrangement, with completion targeted in the first quarter of 2026, subject to shareholder and court approvals.
OEP said it saw Kitwave as a "resilient and attractive business with strong foundations for continued expansion", citing its national distribution network, supplier relationships and growth potential in foodservice.
"We are thrilled to be announcing this recommended cash acquisition of Kitwave, a high-quality national distribution platform within the attractive UK grocery and foodservice wholesale market," said Ori Birnboim, partner at OEP.
Steve Lunau, also a partner at OEP, added that the firm "fully support[s] Kitwave's vision for long-term growth and believe our partnership will enable it to accelerate its strategy."
The Kitwave board, advised by Canaccord Genuity, said the terms of the acquisition were fair and reasonable and intended to recommend unanimously that shareholders vote in favour of the scheme.
"Since becoming a public company in 2021, Kitwave has rapidly transformed from a regional foodservice operator into an enlarged UK-wide delivered wholesale business," Maxted said.
"OEP has an excellent track record of helping businesses like Kitwave to significantly scale and the board believes that becoming a private company will provide greater financial flexibility to achieve its ambitions."
At 1154 GMT, shares in Kitwave Group were up 33.03% at 294p.
Reporting by Josh White for Sharecast.com.
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