Kitwave Group PLC on Thursday said it expects to report inline with expectations for the full-year following robust trading over the summer.
The North Shields, England-based wholesale business said that following the robust summer trading referenced in its September update, sales through to the end of October were as anticipated, with the firm expecting to meet market expectations for the full-year.
The AIM-listed firm drew attention to its mergers and acquisitions strategy, highlighting three acquisitions made throughout the financial year, namely WLG Ltd last November, Total Foodservice Solutions Ltd in March this year and more recently, Creed Catering Supplies Ltd in September.
Its acquisition of Creed was for an initial consideration of £60 million, rising to £70 million upon the achievement of performance related targets over the next two years.
This takes Kitwave’s total acquisitions to 15 since 2011, with the firm noting it is well positioned to continue executing its M&A strategy during 2025 and beyond.
Kitwave added that it failed to predict the government’s amendments to national insurance in the autumn statement, noting that it will add £2 million to its annual operating costs.
However, it stated that it will look to mitigate this new cost through savings and other efficiencies given the changes do not take effect until April 2025.
Kitwave Chief Executive Ben Maxted said: ‘I am delighted that Kitwave continues to make significant financial and operational progress.
‘We also made some key strategic decisions to improve operational efficiencies in the period, including investment in the new Foodservice distribution centre in the South West and our voice-picking technology at the Northern ambient hub.
‘The management team believes that these investments will help to support organic growth and enhance our customer service.
‘Our platform for growth remains strong, with our network now at 37 depots. The group looks forward to reporting its financial year 2024 results in March 2025, which are expected to be in line with market forecasts, and also providing an update on the early progress made in 2025.’
Kitwave shares are down 1.6% at 332.50 pence on Thursday afternoon in London.
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