Kitwave Group PLC on Tuesday said it increased its revenue and profit in its first half year, with its WestCountry acquisition as a ‘significant highlight,’ and said its expects its financial 2023 results to surpass market expectations.

The North Shields, England-based food wholesaler said its pretax profit for the six months ended April 30 was up by 48% to £8.3 million from £5.6 million for the same period the year before. Its profit for the year ended October 31, 2022 was £17.8 million.

Kitwave also said its half year revenue was up 23% to £275.0 million from £223.3 million. Consolidated gross margin rose to 21.6% from 19.8%.

Kitwave declared an interim dividend of 3.75 pence per share, up from 2.50p per share the year before.

Cost of sales was £215.6 million, up 20% from £179.2 million. Kitwave’s distribution expenses meanwhile increased by 36% to £26.3 million from £19.4 million, and administrative expenses increased by 27% to £23.0 million from £18.1 million.

Kitwave also noted its acquisition and integration of WestCountry Food Holdings Ltd into its Foodservice division. Chief Executive Officer Paul Young described this as a ‘significant highlight’ which would enable Kitwave to ‘deliver high-quality fresh produce throughout the South West.’

Since the end of April, Kitwave said trading was ‘strong across all divisions and ahead of board expectations’. Consequently, it anticipates its full year results to be ahead of market expectations, noting that trading in the wholesale sectors is normally weighted towards the second half of the year.

‘We believe that our unwavering focus on operational efficiency, strategic investments, and customer satisfaction, means we are well placed to drive sustainable growth, both organically and through acquisitions to deliver value for the group and its shareholders,’ commented Young.

Shares in Kitwave were up 5.4% at 330.00p on Tuesday in London.

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