Cranswick plc Annual Report & Accounts
52 weeks ended 29 March 2025
FEEDING THE
NATiON
SINCE 1975
Cranswick is a leading UK food producer with revenue
of over £2.7 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.
CONTENTS
STRATEGIC REPORT
2
The Cranswick Story
4
Highlights
6
What we do
8
Our Business Model
12 Chairman’s Statement
15 Chief Executive’s Review
19 Market and Consumer Trends
22 Our Strategic Enablers
28 Key Performance Indicators
30 Operating and Financial Review
34 Our Sustainability Strategy
43 TCFD Disclosures
49 SASB Disclosure
53 Our Stakeholders
75 Effective Risk Management
78 Principal Risks and Uncertainties
83 Viability Statement
84 Non-Financial and Sustainability
Information Statement
CORPORATE GOVERNANCE
86 Chairman’s Overview
88 Board of Directors
90 How we are Governed
92 Stakeholder Engagement
94 Board Activities
99 Governance Framework
101 Board Effectiveness
102 Board Leadership and Purpose
103 Compliance Statement
104 The ESG Committee
106 The Audit Committee
111 The Nomination Committee
115 The Remuneration Committee
121 Remuneration at a Glance
123 Annual Report on Directors’ Remuneration
134 Remuneration Policy
141 Directors’ Report
146 Statement of Directors’ Responsibilities
FINANCIAL STATEMENTS
148 Independent Auditor’s Report
155 Group Income Statement
156 Group Statement of Comprehensive Income
157 Group Balance Sheet
158 Group Statement of Cash Flows
159 Group Statement of Changes in Equity
160 Notes to the Accounts
196 Company Balance Sheet
197 Company Statement of Changes in Equity
198 Notes to the Company Financial Statements
SHAREHOLDER INFORMATION
207 Stakeholder Information Five-Year Statement
207 Financial Calendar
208 Shareholder Analysis
208 Share Price Movement
209 Advisers
210 Notes
WHERE GREAT FOOD COMES FROM
EST. 1975
OUR PURPOSE
TO FEED THE NATION
WITH AUTHENTICALLY
MADE, SUSTAINABLY
PRODUCED FOOD
ABOUT US
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1
GREAT FOOD COMES FROM
50 YEARS OF PROUD
BRITISH HERITAGE
INCORPORATED
The Cranswick Mill,
producing animal feed
Admission to
official list of LSE
Fresh Pork production commences
Floated on the stock exchange
1975
1985
1992
Cooked Meats production
commences – acquisition
of Sutton Fields
1993
2006
Acquired DeliCo,
Milton Keynes,
producing
cooked meats
Livestock trading established
1978
Entered Gourmet Sausage
market — formed a joint
venture with Martin Heap
1995
Grain trading
established
1979
1991
Acquired Preston primary
processing facility
2001
Entered Mediterranean market –
acquired Continental Fine Foods
2008
Revenue
£500m
2013
Acquired Wayland farms,
outdoor pig rearing business
2009
Acquired Norfolk
primary processing
facility
2014
Acquired
Benson Park, Hull,
producing premium
cooked poultry
2018
New Continental
Foods site in Bury
2016
Acquired Crown
Chicken, integrated
chicken processor.
Acquired Ballymena,
Northern Ireland,
primary processing
facility
Revenue
£2bn
2019
Acquired Katsouris,
Wold Breeding and
White Rose Farms
New Eye facility
commissioned
2020
2021
Acquired RAMONA’S,
producing houmous
Built new cooked bacon
facility, Gourmet Kitchen
2022
Acquired Grove Pet Foods
and entered pet food market.
New Prepared Poultry
facility commissioned
2023
Acquired Elsham
Linc pig farming,
rearing and feed
milling business
2024
Acquired Froch Foods, Leeds,
to expand bacon production.
New houmous facility opened
2025
Entered pig
genetics, acquired
JSR Farms
2004
Formed a joint venture with Chris Battle,
producing dry-cured, air-dried bacon
2005
Acquired Valley Park
business, producing
sliced cooked meats
New Gourmet
Sausage facility built
Revenue
£1.5bn
Revenue
£2.5bn
2007
Formed a joint
venture with
Colin Woodall,
acquiring Woodall’s
heritage brand
2010
Entered Gourmet Pastry market — formed a joint
venture with Gill Ridgard, Yorkshire Baker
Revenue
£1bn
2015
New Eye facility
Gill Ridgard
Ramona
Chris Battle
Martin Heap
THE CRANSWICK STORY
STRATEGIC REPORT
STRATEGIC REPORT
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Strategic report
FINANCIAL HIGHLIGHTS
Resilient business model delivering sustained growth
2024
176.6
2023
140.1
2025
197.9
2024
223.4
2023
149.2
2025
213.6
2024
2,599.3
2023
2,323.0
2025
2,713.2
2024
90.0
2023
79.4
2025
101.0
2024
242.8
2023
210.0
2025
273.4
2024
99.4
2023
101.4
2025
172.4
1. 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.
2. 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 31.
STRATEGIC HIGHLIGHTS
£24m*
acquisition of JSR pig genetics and indoor
pig farming business, renowned for
innovative genetic solutions centred
around sustainability and efficiency.
*
Refer to Note 13 of the Financial Statements for
the breakdown of cash outflow on acquisition.
£4m*
acquisition of a long-standing supplier
of RSPCA Assured outdoor bred pigs,
based in East Anglia, which further underlines
our commitment to secure and grow
our British pig farming operation.
*
Refer to Note 13 of the Financial Statements for
the breakdown of cash outflow on acquisition.
£62m
multi-phased expansion project at
the Hull pork primary processing site
progressing as planned to add capacity,
drive further efficiency improvements
and add on-site cold storage.
Strengthening competitive advantage through the strategic enablers
HIGHLIGHTS
SUPPLY CHAIN
£25m
fit out of Worsley houmous
facility ongoing with initial phase
successfully commissioned.
£22m
investment split across the Eye facility
and the Kenninghall site in East Anglia,
to add capacity and further automation
into poultry business.
£29m
capital investment in Cooked and
Prepared Poultry to add to our cooking
and cooling capacity, and to enable further
range expansion, including roasted and
bone-in portions. This investment aligns
with consumer trends towards convenience
and on-the-go poultry products.
LEAN PROCESSING
10 Year
deal with Sainsbury’s, with exclusivity
over British pork products.
RAMONA’S
brand is the leading retail houmous brand
measured by both volume and value.
Cypressa
Secured major halloumi contract launching
in 800 stores with a key retail partner.
ICONIC PRODUCTS
CUSTOMER RELATIONSHIPS
Revenue
£2,723.3m
+4.8 per cent
(FY24: £2,599.3m)
Free cash conversion
101.6%
(FY24: 142.3%)
Like-for-like revenue1
£2,713.2m
+4.4 per cent
Dividend per share
101.0p
+12.2 per cent
Adjusted profit before tax2
£197.9m
+12.1 per cent
Free cash flow2
£213.6m
-4.4 per cent
Adjusted earnings per share2
273.4p
+12.6 per cent
Net debt
£172.4m
+73.4 per cent
Profit before tax
£181.6m
+14.6 per cent
(FY24: £158.4m)
ROCE
18.5%
(FY24: 18.5%)
Earnings per share
250.5p
+19.1 per cent
(FY24: 210.4p)
Capital investment
£137.6m
(FY24: £91.4m)
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CRANSWICK IS A LEADING, INNOVATIVE,
BRITISH SUPPLIER OF PREMIUM, FRESH
AND VALUE-ADDED FOOD PRODUCTS.
Cranswick was formed by farmers in 1975. 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.
FARMING
Our vertically integrated supply chain is
important in providing traceability, integrity
and sustainability in our farm-to-fork model.
Our pig and poultry farming businesses,
which include milling, genetics, breeding
and growing operations, are industry
leading. Our self-sufficiency in British pigs
is approaching 55 per cent.
Our dedicated farmers are focused on
developing sustainable farming practices
and leading the way in animal welfare.
>0.9m
Pig herd size
>5.7m
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.
£137.6m
Invested in FY25
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.
>15,400
Colleagues
WHAT WE DO
23
well-invested, highly efficient
production facilities across the UK
>500
farms supplying pigs and chickens
to our production facilities
3
milling facilities producing
pig and poultry feed
4
5
11
10
9
6
7
12
8
13
14
15
16
3
2
1
Hull
Fresh Pork, Preston
Fresh Pork, Riverside
Gourmet Sausage
Cooked Poultry
Cooked Meats
Gourmet Kitchen
Prepared Poultry
Malton
Gourmet Pastry
Sherburn-in-Elmet
Gourmet Bacon
Leeds
Froch Foods
Barnsley
Cooked Meats
Bury
Continental Foods
Worsley
Houmous and Dips
Denbigh
Food Service
Ballymena
Fresh Pork
Retford
Pet Products
Key
Lincoln
Pet Products
Newcastle-under
-Lyme
Blakemans
Watton
Fresh Pork, Norfolk
Eye
Fresh Chicken
Milton Keynes
Cooked Meats
London
Katsouris Brothers
Mediterranean Foods
1
11
12
13
14
15
16
2
3
4
5
6
7
8
9
10
Agriculture
Feed
production
Pig and poultry
production
Genetics
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AGRICULTURAL
ROOTS
Farming is where the business
started and will continue to
be integral to future growth.
This starts with our commitments
to animal welfare, sustainable
farming and the development of
a feed-to-farm-to-fork strategy,
which is relevant across the Group.
ENTREPRENEURIAL
SPIRIT
The passion and commitment
to developing the business
and seeking out new opportunities
have been key drivers for the
growth from day one. This spirit of
enterprise is encouraged across the
business and enables a continued
focus on its development.
UPSCALING
ARTISAN
Cranswick have excelled in
upscaling artisan – making fantastic
quality products using traditional
methods; but with a focus on quality
and efficiency leading to the
development of genuine
industry-leading products
and categories.
FOCUS ON
FLAVOUR
We make exceptional food.
Whether that is a focus on getting the
basics right, crackling that crackles,
or developing consumer-led culinary
experiences, such as ‘slow cook’
or kitchen prepared dishes from Pastry,
the culture focuses on delivering the
best tasting food from all of our sites.
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.
Feed milling
Genetics and breeding
Cranswick-owned British Farms
Contracts with other UK Farms
European Meat Imports
WE FARM
We have a thriving farming division consisting
of five businesses, which rear our pigs and
supply genetics; Crown Farms, which rears our
chickens; and Crown Milling and Elsham Milling,
which 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 genetics and 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 East Anglia,
where we mill cereals grown in the local area to
produce feed for our chickens and pigs.
Cranswick primary processing
Added-value processing
Other high-quality ingredients from
sustainable and trusted suppliers
Wholesale
Retail
Export
Food Service
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,
prioritising British sourced 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.
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.
UK Retail
Food Service
Manufacturing
Export
79%
4%
12%
5%
Revenue by customer type
% of Group revenue
OUR GUIDING PRINCIPLES
OUR GROWTH STRATEGY
VALUE
Vertical integration
Utilisation
Efficiency
QUALITY
Own premium
Delight the customer
Technical excellence
PEOPLE
Attract
Engage
Empower
PUTTING THE FUTURE FIRST EVERY DAY
ICONIC PRODUCTS
Focus on premium
Convenient solutions
Naturally healthy
CUSTOMER
PARTNERSHIPS
Long-term agreements
Transparency and open book
Developing categories
LEAN PROCESSING
Continuous investment
Capacity and capability
Improve efficiency
SUPPLY CHAIN
Vertical integration
Security of supply
Farm productivity
OUR STRATEGIC ENABLERS
OUR DIFFERENTIATORS
CONSOLIDATE
DRIVE THE CORE
DIVERSIFY
IDENTIFY NEW OPPORTUNITIES
EXPAND
INCREASE MARKET SHARE
IN GROWTH CATEGORIES
INNOVATION
Product
Packaging
Process
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OUR PRODUCTS
Fresh Pork
We offer a comprehensive selection of fresh pork products,
encompassing everything from joints and chops to ribs, along with added-
value products such as marinades and dressings. 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 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. Ranges include gourmet
sausages developed with Martin Heap; traditional dry-cured, air-dried
bacon and gammon created through our partnership with Chris Battle
and Colin Woodall; and exceptional pastry products baked at our
Gourmet Pastry site in Malton and perfected with Gill Ridgard.
Convenience
Convenience incorporates our three Cooked Meats sites and
our Continental Products businesses. Our ranges include
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, houmous,
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 Poultry business produces
whole and portioned poultry products as well as added-value ranges.
Our Fresh Poultry 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 Grove Pet Foods
(later renamed to Cranswick Pet Products) was acquired 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.
OUR BUSINESS MODEL
CONTINUED
CREATING VALUE FOR OUR STAKEHOLDERS
Our people
By providing competitive remuneration, safe working conditions,
as well as training, development and mentoring opportunities.
>84,400
training courses completed by Cranswick colleagues in the year
Read more on pages 53 to 58.
Customers and consumers
By continuously delivering high-quality, authentic
and innovative products.
8.0%
sales from new products as a percentage of total revenue
Read more on pages 59 to 61.
Producers and suppliers
By providing fair trading terms and ensuring
supplier integrity and ESG compliance.
1,488
supplier audits completed in the year
Read more on pages 62 to 65.
Shareholders
By delivering strong dividend growth.
35
years of consecutive dividend growth
Read more on pages 72 to 73.
Communities
By providing support to our local communities, led by
a strong focus on food redistribution, education and skills.
>1.8m
meals donated to charities this year
Read more on pages 69 to 71.
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 66 to 68.
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CHAIRMAN’S STATEMENT
“Over the past year, we have
made further strategic
progress, strengthening our
position as a market leader and
delivering against our long-term
strategic objectives.”
Tim J Smith CBE
Chairman
Over the past year, we have made
further progress in strengthening
our position as a market leader and
delivering against our long-term
strategic objectives. We have
reported record results, exceeding
our recently updated medium-term
targets, enabling us to increase
our progressive dividend for the
35th consecutive year.
Our experienced and agile management
team has continued to successfully navigate
a challenging operating and wider
macroeconomic environment. Their relentless
attention to our strategic goals coupled with
operational strength and leadership has been
remarkable. On behalf of the Board, I would like
to thank them and all our colleagues across the
business. Concentrating on quality, innovation,
and customer service continues to underpin the
resilience of our business model, demonstrating
our ability to deliver consistent value for all
stakeholders, while positioning the Group for
sustainable, long-term growth.
It was disappointing that food was excluded
from the new government’s industrial strategy
although the government has recently
established a new body to deliver a standalone
national food strategy. The strategy will link
food policy with health, address barriers to
investment, promote fairness and reduce the
impact that the food system has on the planet.
The Group regards each of those priorities as
being central to its own strategic purpose.
As a leading UK food producer, we are aligned
with others across the sector in our ambition
to operate in an environment underpinned by
certainty and success. Translating this ambition
into action requires a regulatory environment
that supports long-term sustainable investment.
One of the most significant barriers to
unlocking the business’ full potential is the
complexity and inefficiency of the current
planning system. Excessive bureaucracy
conflicted with our objective to enhance
UK food security and significantly delayed
important projects such as the redevelopment
and expansion of the Methwold and Feltwell
farms in Norfolk, and the construction of
a second poultry facility at Eye in Suffolk.
These projects are essential prerequisites to
enhancing capacity, improving food resilience,
and meeting rising consumer demand.
A more streamlined and responsive planning
framework is, therefore, essential to unlocking
capital investment, supporting job creation,
and growing regional economies.
The UK pig herd has contracted leading to
tighter pig supply, while the poultry sector
remains under pressure from reduced rearing
capacity following the industry wide move to
lower stocking densities to meet enhanced
animal welfare standards.
To reinforce supply chain resilience, and as
previously announced, we have expanded
our UK farming operations in East Yorkshire
through the acquisition of J.S.R.
Genetics Limited (JSR Genetics) from JSR
Farms Limited, an existing, long-standing,
valued supplier to Cranswick. The transaction
included the pig genetics and pig farming
operations of JSR Farms Limited. JSR Genetics
is a leading UK based pig genetics company,
located in East Yorkshire and is renowned for its
innovative genetic solutions for cost effective
pig production. We now have the capability to
offer our customers an end-to-end supply chain
solution through which we can drive further
productivity gains and quality improvements.
We have also increased our self-sufficiency in
premium, higher welfare, outdoor pigs with
further herds acquired in East Anglia and
continued investment in existing herds and
farming infrastructure across our wider UK
operations. This increasing self-sufficiency
provides our strategic retail partners with
greater supply chain resilience and access to
an unparallelled level of innovation and quality.
That enhanced capability was a critical feature
in our new 10-year partnership with
Sainsbury’s, which reflects the benefits of
long-term shared goals, supply chain controls
and alignment with consumer interests.
Over the last 12 months we have accelerated
the pace at which we deploy capital to
drive attractive and industry leading
returns with a record-level of investment
across our operations of £138 million.
Strategic investment at key sites is not only
creating a world-leading asset base, but is also
enhancing capabilities, increasing efficiencies
and improving food safety and quality.
We remain focused on delivering strong
returns for our Shareholders, while producing
food of the highest quality. With dedicated
production facilities aligned to major customers
and industry-leading service levels, we are
building a supply chain fit for the future.
Increasing customer integration alongside
strategic investment in our supply chain reflects
the importance our retail customers place on
the security of supply, enabling us to continue
building a strong reputation as an
industry leader.
Results
Total revenue for the 52 weeks to 29 March
2025 was £2,723.3 million, an increase of 6.8
per cent from the prior year on a comparable
52 week basis. On the same basis, like-for-like
revenue grew by 6.4 per cent.
Adjusted profit before tax for the period at
£197.9 million was 14.3 per cent higher than
the prior year on a comparable 52 week basis.
Adjusted earnings per share on the same basis
was up 15.6 per cent at 273.4 pence.
Cash flow and financial position
At the end of the year, net debt was
£172.4 million, up from £99.4 million in the
previous year. Net debt excluding IFRS 16 lease
liabilities increased to £39.7 million compared
to £0.1 million previously. The Group has
access to an unsecured, sustainability-linked
£250 million facility, which runs through to
November 2026.
Dividend
The Board is proposing a final dividend of 76.0
pence per share, 12.9 per cent higher than the
67.3 pence paid last year. Together with the
interim dividend of 25 pence per share, this
equates to a total dividend for the year of 101.0
pence per share, an increase of 12.2 per cent on
last year, extending the period of consecutive
years of dividend growth to 35 years.
The final dividend, if approved by Shareholders,
will be paid on 29 August 2025 to Shareholders
on the register at the close of business on
18 July 2025. Shares will go ex-dividend on
17 July 2025.
Corporate governance
The Board wholeheartedly embraces the UK
Corporate Governance Code (the ‘Code’),
embedding it into our culture to provide
a foundation for our long-term success.
We regularly review and refine our governance
framework and processes to ensure they are
effective and suited to our needs. You can read
more about our compliance with the Code in our
Corporate Governance section on page 103.
Board changes
During the year, we have continued to ensure
that Board members have access to the
support and training they need to provide the
appropriate skills and experience, which will
both assist and challenge Cranswick’s executive
team in executing our strategy.
Rachel Howarth was appointed as a Director
on 1 May 2024. Rachel succeeded Liz Barber
as Chair of the Remuneration Committee after
our AGM in July 2024, as intended, following
the conclusion of the scheduled review of the
Directors’ Remuneration Policy.
Culture
The Group’s success depends on the dedication
and ingenuity of our people, and we continue
to work on initiatives that help us build a strong
and inclusive culture, providing leadership to
our industry. We invest heavily in our colleagues,
providing the training, development, and
opportunities for employee engagement that
ensure we create an environment where
everyone can flourish.
The social aspects of our ESG commitments
are vital to ensuring we meet the needs of our
customers, suppliers, local communities, and,
of course, our employees. We are fortunate
to have Yetunde Hofmann as our designated
Director for workforce engagement.
Her essential role in ensuring our people’s
voices are heard by the Board is a key part of our
approach to diversity and inclusion, something
that is crucial to our progress as an organisation.
Sustainability
I am pleased to report that we are forging
ahead with our updated ‘Second Nature’
sustainability strategy. We re-launched the
updated strategy last year to empower
colleagues to take meaningful actions, while
embracing both the environmental and social
aspects of sustainability. Our focus during the
period has been on embedding this strategy
across the business, pushing forward with
innovative projects and initiatives, and
improving our scores on a wide range of
sustainability metrics. You can dive deeper into
our sustainability strategy in the Sustainability
section on pages 34 to 51.
Outlook
As we begin a new year of trading and celebrate
our 50th anniversary, we are inspired by the
achievements of the past and excited by the
opportunities ahead. I look forward to
commemorating Cranswick’s 50th anniversary
and celebrating our rich history.
Thanks to our strategic investments and the
unwavering dedication of our teams across the
organisation, we are in a stronger position than
ever to deliver on the Group’s strategy. The start
to the current financial year has been in line with
the Board’s expectations. The strengths of the
business which include its diverse and
longstanding customer base, breadth and quality
of products and channels, robust financial
position and industry leading infrastructure will
support the further development of Cranswick
in the current financial year and over the
longer-term.
Tim J Smith CBE
Chairman
20 May 2025
35 consecutive years of growth
Dividend per share (pence)
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
101.0
90.0
Dividend per share
101.0p
+12.2%
Adjusted earnings per share
273.4p
+12.6%
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CHIEF EXECUTIVE’S REVIEW
“This year we have made
significant strategic and financial
progress delivering record revenue
and adjusted profit before tax.
We have also continued to make
substantial investment across our
industry leading asset base,
our farming operations and
in acquisitions to support our
long-term growth ambitions.”
Adam Couch
Chief Executive
Further strong strategic
and financial progress
This year we have made significant strategic
and financial progress delivering record
revenue and adjusted profit before tax.
We have also continued to make substantial
investment across our industry leading asset
base, our farming operations and in acquisitions
to support our long-term growth ambitions.
Our successful performance in challenging
market conditions reflects the strength of our
customer relationships, the quality of our asset
base, our deep vertical integration and, most
importantly the talent, capability and
determination of our colleagues across the
business. I would like to thank them for their
unwavering commitment. The culture we have
fostered, centred around a clear ambition to
deliver strong sustainable growth, has been
the key driver of our continued success over
the long-term.
We are accelerating the pace at which we invest
to drive strong returns. This year we spent a
record £138 million across our business to add
capacity, expand capability and drive further
efficiencies through automation and scale.
Effective deployment of capital to drive strong
returns has been a key attribute of Cranswick’s
successful long-term performance and, going
forward, we will continue to invest at pace
across our asset base in line with our recently
updated medium-term target of between 40
and 50 per cent of adjusted EBITDA.
Acquisitions are a core element of our growth
strategy, allowing us to consolidate further
our core business, expand newer growth
categories or diversify into new sectors
and markets. We often have close working
relationships with the businesses we acquire.
The recent acquisition of JSR Genetics,
a leading, UK based, pig genetics company
located in East Yorkshire, is a good example
of this.
We are also deepening and strengthening our
strategic customer partnerships, highlighted
by the recently announced 10-year sole
supply agreement with Sainsbury’s and the
extension of the Tesco Sustainable Pig Group.
These relationships are underpinned by our
relentless focus on delivering outstanding
service, continuous innovation and the highest
standards of product quality.
We continue to recognise the strategic
importance of UK food security. During the
year we expanded our vertical integration
across genetics, feed milling and pig and
poultry farming. We have deepened and
strengthened our supply chains to make our
business more sustainable and provide food
security for our customers and consumers.
The poultry industry transition to lower
stocking densities in line with the Better
Chicken Commitment represents a significant
milestone in improving animal welfare
standards. We welcome this initiative, and
we have invested across our poultry farming
operations to ensure we can meet this new
standard. However, this shift, which now means
20 per cent more space is required to grow
the same number of birds, is placing additional
pressure on a growth industry which has
been starved of investment over many years.
Cranswick’s £92 million facility in Eye, Suffolk
was the first new build UK poultry facility in
more than 30 years when it was commissioned
in 2019. We are prepared to invest at pace, to
grow our own business and support the wider
industry at a time of rising consumer demand.
Revenue
£2,723.3m
+4.8%
Adjusted operating profit
£206.9m
+11.8%
Capex
£137.6m
(FY24: £91.4m)
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We know that our customers and consumers
care deeply about the welfare of animals
involved in food production – it is a priority we
share. We have always placed the highest
importance on animal health and wellbeing and
continuously aim to have the most stringent
standards in the sector. We take seriously any
instance, anywhere in our supply chain, where
behaviour fails to meet those standards. We are
therefore instigating a new, fully independent,
expert veterinarian review of all our existing
animal welfare policies, together with a
comprehensive review of our livestock
operations across the UK. We will provide a
further update on this work in due course.
Investing in our talent and culture
Above all, Cranswick is a people-focused
business, valuing our colleagues for the unique
qualities they bring us. To attract and retain
top talent in a competitive market, we have
established ourselves as a leader in pay,
working conditions, health and safety,
inclusivity, and employee wellbeing. We offer
market-leading graduate and apprenticeship
opportunities, as well as taking a proactive
approach to filling gaps in our organisation
by reaching out to our local communities
and recruiting from industries experiencing
downturns, where individuals have valuable
transferable skills. We set and expect the
highest standards from all colleagues and
we will take swift and appropriate action
when these standards are not adhered to.
We welcomed 14 more graduates into our
programme this year, taking the total to 102
since 2013. I am delighted to say that 37 of
these individuals have now been promoted
into senior full-time roles. In addition, we have
around 190 apprentices across the Group,
pursuing a wide range of
apprenticeship qualifications.
We actively promote and support diversity
and inclusion across the Group, nurturing
and developing our people within a culture
that values creativity, innovation, and a broader
range of perspectives. In February 2025,
Cranswick signed the Race at Work Charter,
committing to initiatives that promote
workplace diversity and inclusion. We also
founded the Next Generation Committee,
giving younger employees a platform to share
their perspectives on our business and
strategic direction.
Summary and Outlook
Our results for the year ending 29 March
2025 were strong across all our key metrics
and in line with or ahead of our recently
updated medium term targets. We have
extended our customer relationships,
broadened our product range and deepened
our vertical integration.
As we mark Cranswick’s 50th anniversary
I am firmly focused on the future. We remain
very cash generative, enabling us to invest
at pace in future opportunities for growth
whilst maintaining a strong balance sheet.
Our investment pipeline is strong, and we see
further opportunities to develop our business
through complementary, accretive acquisitions.
We have made a positive start to the new
financial year. Our core UK market remains
extremely resilient as our customers and the
UK consumer continue to recognise the quality,
value and versatility of our pork and poultry
product ranges.
Looking further ahead, I am confident that
the strengths of the business which include
its long-standing customer base, breadth and
quality of products, robust financial position
and industry leading asset infrastructure
will support the successful development of
Cranswick in the current financial year and
over the longer-term.
Adam Couch
Chief Executive
20 May 2025
CHIEF EXECUTIVE’S REVIEW
Delivering strong and
sustainable growth
We have again delivered record results, with
reported revenue growing by 6.8 per cent to
£2,723.3 million and adjusted operating profit
increasing by 14.0 per cent to £206.9 million on
a comparable 52 week basis. On the same basis,
earnings per share were 15.6 per cent higher
and operating margin improved to 7.6 per cent
reflecting the growing contribution from our
agricultural operations, excellent capacity
utilisation, efficiency improvements and tight
cost control.
Net debt on a pre-IFRS16 basis increased from
£0.1 million to £39.7 million reflecting a record
year of capital investment and the acquisition
of JSR Genetics. Return on capital employed
at 18.5 per cent reflects the strong compound
returns we continue to generate from the
capital we deploy.
We are proposing to increase our full year
dividend by 12.2 per cent, marking our 35th
year of consecutive dividend growth.
We have grown revenue, adjusted profit before
tax, earnings per share and dividend per share
by more than 10 per cent per annum over the
last 10 years, which is clear evidence of our
strong and sustainable growth model.
Significant progress in delivering
our strategy
Over the last 12 months we have made
significant progress in delivering our strategy.
We continue to gain market share through our
relentless focus on quality, service
and innovation.
Our core pork business performed extremely
well with record pig numbers processed and
good growth in our fresh pork and value-added,
convenience categories. I was extremely
pleased to receive the positive news in early
December that the China export licence at our
Norfolk primary processing facility had been
reinstated four years after we were advised by
DEFRA to self-suspend it. Our team worked
tirelessly throughout this four-year period
to get the licence reinstated and I thank
those involved for their determination and
perseverance. A full range of products started
being shipped to China from early January
and contributed to a strong year-on-year
increase in Far Eastern export revenues.
Our poultry and Mediterranean foods
categories again performed well.
Production of the Ramona’s houmous brand
moved to the new Worsley facility in September
and we have recently launched a range of
new and complementary products with more
planned over the coming months. Our poultry
business performed exceptionally well growing
by more than 20 per cent on a comparable
52 week basis. Notwithstanding the planning
challenges we are managing, poultry will
continue to be the mainstay of our growth
ambitions over the next five years and beyond.
After a relatively slow and prolonged start-up
phase since we acquired the pet food business
in January 2022, the business has really gained
momentum. Revenue was ahead by almost
50 per cent as we continue to strengthen our
relationship with Pets at Home. The £10 million
capacity expansion project is now complete.
Record investment driving strong
and sustainable returns
We are accelerating the pace at which we
invest to drive strong returns. This year we
spent a record £138 million, representing
5.1 per cent of revenue, across the business
to add capacity, expand capability and drive
further efficiencies through automation and
scale. Effective deployment of capital to drive
strong returns has been a key attribute of
Cranswick’s successful long-term performance.
We have now invested £480 million across our
asset base over the last five years and, going
forward, we will continue to invest at pace
across our asset base in line with our recently
updated medium-term target of between
40 and 50 per cent of adjusted EBITDA.
We spent £63 million across the four major
strategic capital projects in the year. The
£29 million expansion of the two added-value
poultry sites in Hull is now complete with the
new business onboarded. The £25 million fit
out of the houmous and dips facility in Worsley,
Manchester, is progressing to plan with the
initial phase now successfully commissioned.
The £22 million project to increase incubatory
and processing capacity at the Kenninghall
and Eye sites respectively, in Suffolk, is
underway. Finally, the £62 million multi-phased
expansion project at our Hull pork primary
processing facility is progressing as planned.
We have also now committed a further
£35 million to lift capacity at the Hull site from
35,000 to 50,000 by the end of March 2027.
Acquisitions are a core element of our growth
strategy, allowing us to consolidate further our
core business, expand newer growth categories
or diversify into new sectors and markets.
Many of our acquisitions are businesses
with which we already have a close working
relationship. The £24 million acquisition of
JSR Genetics, a leading UK based, pig genetics
company located in East Yorkshire, is a good
example of this, as is the recent acquisition
of Blakemans, a well-invested, leading food
service sausage manufacturer.
We continue to expand and strengthen our
pig farming business through both organic
growth and acquisitions. We acquired a 4,000
outdoor pig herd in East Anglia as well as the
JSR Genetics business. We have trebled our
own pig production over the last six years with
finished pig numbers increasing 14 per cent
year-on-year.
Our poultry business continues to be a key
growth driver for the business. We are investing
close to £50 million to add incubatory capacity,
lift processing capacity at Eye and significantly
upscale our two added-value facilities in East
Yorkshire. We are also materially expanding
our rearing footprint through a combination
of acquisition and new lease arrangements.
Second Nature – delivering
value responsibly
During the year, we successfully refreshed
our Second Nature sustainability strategy
supported by four working pillars: farming with
conscience; sourcing with integrity, producing
responsibly; and living better. We made good
progress in embedding these pillars during the
last financial year.
We transitioned all our soy purchases to
100 per cent full mass balance deforestation
free soya by the end of 2024, delivering a
14 per cent reduction in the carbon footprint
of an outdoor reared pig. During the year,
we further increased our focus on regenerative
agriculture, working with the WWF on a
Carbon Inset Project to support resilient
farming systems and productivity.
We are engaging with our suppliers to improve
the quality of our Scope 3 data, splitting it into
Forest, Land and Agriculture (‘FLAG’) and
non-FLAG categories. We are enhancing the
visibility and transparency within our supply
chains, and we are working with our suppliers
to develop lighter weight packaging, reducing
plastic usage and exploring plastic alternatives.
Since 2017, we have reduced plastic use by
20 per cent.
To advance our Net Zero ambitions, we are in
the process of setting FLAG and non-FLAG
targets in conjunction with the Science Based
Target initiative (‘SBTi’). These revised targets
will update and supersede our Scope 1, 2 and 3
short-term targets, while establishing new,
long-term verified commitments.
A commitment to zero accidents and
eliminating work related illnesses is the bedrock
of our safety culture. During the year, RIDDOR
incidents decreased by 27 per cent, well ahead
of our 10 per cent reduction target. We also
lifted the response rate in our employee
engagement survey to 80 per cent, with the
survey highlighting continued progress in
diversity and inclusion.
TRIBUTE TO MARTIN HEAP
It is with sadness that this year we lost one
of the great creatives of Cranswick, and
indeed the food industry, with the passing
of our original Food Hero, Martin Heap.
Martin was the founder of a chain of specialist
sausage shops, ‘Simply Sausages’ in London,
this led to his collaboration with us 30 years
ago when we formed the Cranswick Gourmet
Sausage Company.
He changed the sausage market forever with
his flair, ingenuity and infectious enthusiasm
for making the perfect gourmet sausages.
This changed the course of our company’s
history and the sausage market that we
know today.
His passion, humour and energy will be
greatly missed.
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The Group has continued to go from strength to strength, demonstrating remarkable
resilience and determination in navigating a complex socio-economic landscape and
persistent supply chain challenges. We remained focused on our long-term goals,
delivering strong operational performance, maintaining excellent customer service,
and making significant progress across all pillars of our strategic objectives.
MARKET AND CONSUMER TRENDS
GROWING OUR PIG HERDS TO IMPROVE RESILIENCE
What we are seeing
The UK food and farming industry is
facing significant ongoing challenges,
with financial pressures and political
uncertainty remaining major concerns
for many independent producers. This is
reflected in the ongoing decline of UK
and EU pig herds, with reduced long-term
sector appeal and weaker demand from
key export markets such as China.
The decrease in supply highlights the
growing need for self-sufficiency within
the market. As a result, supply chain
stability is critical in order to meet retail
demand and ensure the long-term viability
of the British pig farming sector. With fewer
producers in the industry, prioritising
efficient and sustainable production
methods has become even more vital.
What we are doing
We are taking decisive steps to strengthen
our pig farming and milling operations
through organic growth coupled with
recent acquisitions. These include a 4,000
outdoor pig herd in East Anglia and the JSR
Genetics business, a leading UK-based pig
genetics company located in East
Yorkshire, renowned for its innovative
genetic solutions for cost-effective
pig production.
By investing in our pig farming and
agricultural operations, we are securing
volumes to meet the requirements of our
key customer partners. This strengthens
our strategic relationships, as more
agricultural supply chains align with specific
customers and product ranges.
SUPPLY CHAIN UNCERTAINTY
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MARKET AND CONSUMER TRENDS
CONTINUED
PREMIUMISATION AND QUALITY
ELEVATING AT‑HOME DINING EXPERIENCES
What we are seeing
As consumers increasingly consume more
calories at home, the demand for premium
products that replicate the out-of-home dining
experience has surged. This shift reflects a
broader change in consumer behaviour, where
the desire for high-quality meals at home is
replacing the eating out occasion. With the
growing emphasis on value for money, more
consumers are seeking to enjoy the indulgence
and experience of dining out, but without the
associated costs and effort. Premium products,
such as ready-to-cook or restaurant-inspired
meals, allow customers to recreate restaurant-
quality dishes in the comfort of their own
homes, delivering both value and high-quality,
indulgent meal solutions.
What we are doing
We continue to strengthen our reputation
as a premium food producer by delivering
high-quality products across both premium
and standard ranges. In close partnership
with retailers, we support the development
of premium brands, with a focus on quality,
innovation, and choice. One example of this
is the new chef-endorsed product range
launched into a major retailer and produced
at our Pastry site. Our premium value-added
products have also played a crucial role in
driving festive success, contributing to our
record-breaking Christmas trading
performance. Our focus
on premium products not only aligns with
evolving market trends but also reinforces our
position as a trusted supplier of high-quality,
differentiated food solutions.
HEALTH AND SUSTAINABILITY
FOCUS ON NATURAL, BALANCED NUTRITION
What we are seeing
Consumers are becoming increasingly
conscious of ultra-processed foods,
favouring products made with natural, kitchen
cupboard ingredients. Meat, especially pork
and poultry, when produced sustainably,
is increasingly seen as a natural and
sustainable protein source. This trend is
growing demand for products that align with
a naturally healthy diet, offering essential
nutrients like protein, vitamins, and minerals,
while being low in fat.
What we are doing
This shift has created opportunities to address
health-conscious consumers and reinforce
positive messaging around our product
portfolio. We are reformulating products
to minimise ultra-processed ingredients and
ensure clean, transparent labelling. Many of
our offerings, including chicken and lean cuts
of pork, naturally align with a healthy, balanced
diet, being low-fat and nutrient-rich. We are
committed to sustainable sourcing, ensuring
our meat comes from ethically raised animals,
and working with trusted partners to meet high
environmental and welfare standards.
Through in-store support, product packaging,
and collaborations with retailers, we reinforce
the health benefits of our offerings. We also
engage with our customers through educational
campaigns, providing insights into the
nutritional value of our products. By prioritising
sustainability, innovation, and transparency,
we are meeting the needs of health-conscious
consumers, while building trust and loyalty.
CONVENIENCE AND EASE
CONVENIENT SOLUTIONS FOR SIMPLIFIED MEALTIMES
What we are seeing
With increasingly busy lifestyles and a lack of
confidence in cooking, consumers are seeking
convenient solutions that reduce the time
taken to prepare meals at home. This trend has
driven a renewed interest in added-value
products such as ‘slow cook’ and ‘sous vide’
ranges, which are quick and easy to prepare.
These products not only save time but also
align with the growing desire for high-quality
meals. The category has seen strong volume
growth, supported by product innovation,
increased space in store and strong retail
promotions, with further opportunities
envisaged as the category continues
to expand.
What we are doing
We are leveraging the growing demand for
convenience by expanding our ‘slow cook’ and
‘sous vide’ ranges, supported by substantial
investment in capacity at our Convenience site in
Hull. Our focus remains on delivering high-quality,
easy-to-prepare meal options. By innovating in
this space and partnering with retailers, driving
strong promotional activity and enhancing the
range, we are well-positioned to continue driving
growth in the category.
RISING COST OF LIVING
AFFORDABILITY DRIVES DEMAND FOR KEY PROTEINS
What we are seeing
The rising cost of living continues to
shape consumer behaviour, with tighter
budgets prompting a shift towards affordable
protein sources such as pork and poultry.
These categories remain popular due to their
value for money proposition, versatility and are
naturally healthy. Retail prices for pork and
chicken have risen more modestly compared
to other proteins, enhancing their relative
affordability and growing demand among
price-conscious shoppers.
What we are doing
We continue to strengthen our position in
pork and poultry by developing secure supply
chains and offering competitively priced
protein options. Through significant
investment in efficient pork and poultry
production, including the £62 million
redevelopment of our Hull primary pork
processing site, the £22 million investment
at Eye and Crown to increase fresh chicken
volumes and the £29 million investment
programme in Cooked and Prepared Poultry,
we are boosting production capacity and
driving operational efficiencies.
We are also strengthening key customer
partnerships in ready-to-eat chicken and
breaded products, driving growth in
value-added categories. These efforts
position us to deliver affordability, quality
and innovation, meeting both consumer
demand and customer expectations.
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CREATING
COMPETITIVE ADVANTAGE
THROUGH GENETICS
During the year, we made significant progress in enhancing our vertical
integration by improving the quality, size, and scale of our existing pig herds
through additional investments. The recent acquisition of JSR Genetics
strengthens our pig supply chain and presents opportunities to drive further
improvements in production efficiency, animal health, and the overall
quality of our products.
The acquisition of JSR Genetics represents a strategic step forward,
securing a competitive advantage by making Cranswick the only UK processor
with a direct link to genetic development. We are now uniquely positioned
to enhance product quality and drive innovation across our supply chain.
These world-class genetics deliver demonstrable improvements in animal
health, production efficiency, and eating quality. By leveraging these traits,
we can better customise products for key retail partners, expand our margins
through increased efficiency and premiumisation, and further integrate
consumer and customer insights into our research development programmes.
This integration creates substantial opportunities to deepen our customer
relationships, particularly as demand for high-welfare, high-quality British pork
continues to grow. By strengthening our position in the added-value segment,
and supporting the premiumisation of our offering, we are better equipped
to serve existing customers, while also opening new market opportunities.
WHERE GREAT FOOD COMES FROM
Our vertically integrated model underpins the security of our supply chain and enhances
resilience, while driving continuous improvements in farm productivity.
By focusing on the strategic enablers, the Group has established a distinct competitive advantage
and a unique position within the UK food industry. We achieve this by creating a secure and
sustainable supply chain, investing in world-class manufacturing facilities, maintaining a relevant
and innovative product range, and cultivating strong, strategic relationships with customers who
value their partnership with Cranswick.
Why it’s important
From farm-to-fork, we are committed to a
supply chain built on sustainability, integrity,
efficiency, and transparency, ensuring
we uphold not only our own values but also
those of our customers. By actively managing
every stage of the supply chain, we take
pride in delivering quality with accountability
at every step.
Progress
• £24 million* acquisition of JSR pig genetics
and indoor pig farming business, renowned
for innovative genetic solutions centred
around sustainability and efficiency.
• £4 million* acquisition of a long-standing
supplier of RSPCA Assured outdoor bred
pigs, based in East Anglia.
• The move to lower stocking densities
across our fresh poultry farming supply
chain is progressing to plan.
*
Refer to Note 13 of the Financial Statements for the
breakdown of cash outflow on acquisition.
Future plans
• Continued investment in strengthening
vertical integration and driving Second
Nature initiatives.
• £9 million committed investment in the
Kenninghall site in East Anglia will add
additional incubatory capacity.
Number of pigs produced
>1,700,000
+13.5%
Poultry self-sufficiency
c.100%
Pig self-sufficiency
c.55%
OUR STRATEGIC ENABLERS
SUPPLY CHAIN
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DRIVING GROWTH
THROUGH END-TO-END
POULTRY EXPANSION
We have made significant strides in expanding our end-to-end poultry operations,
driving growth across fresh, cooked, and prepared poultry through
strategic investments, increased capacity, and strong retail demand.
Our fresh poultry division has seen robust revenue growth, while operating at full
capacity. The £22 million investment across the Eye and Kenninghall sites will increase
throughput and expand the product range. The expansion at Kenninghall will also
add further incubatory capacity, reducing reliance on third-party providers and
allowing for greater control over bird welfare.
Additionally, our £29 million ongoing investment programme in both Cooked and
Prepared Poultry will increase cooking and cooling capacity and allow for range
expansion, including roasted and bone-in portions. This project will support new
business wins with one of the UK’s largest retailers in both the cooked ready-to-eat
and breaded categories, increasing both capacity and volumes.
This expansion across all areas of our poultry operations, from farming to processing,
cooking, and value-added products, underscores our commitment to building
a fully integrated, end-to-end poultry operation. By investing in capacity, innovation,
and new business opportunities, we are positioning ourselves for continued
success and leadership in the competitive poultry market.
WHERE GREAT FOOD COMES FROM
OUR STRATEGIC ENABLERS
CONTINUED
We are committed to keeping our facilities at the forefront of the industry
through continuous investment and innovation. Our key priorities –
increasing efficiencies, enhancing sustainability, and expanding
our capabilities – are shaping the future of our operations.
Why it’s important
By integrating cutting-edge technology and
streamlining processes, we are not only driving
efficiency but also adapting to evolving market
demands, supporting our workforce, and
delivering even greater value to our customers.
Progress
• £25 million fit out of Worsley houmous
facility ongoing with initial phase
successfully commissioned.
• £29 million capital investment in Cooked
and Prepared Poultry to add additional
cooking and cooling capacity and to enable
further range expansion, including roasted
and bone-in portions. This investment aligns
with consumer trends towards convenience
and on-the-go poultry products.
• £62 million multi-phased expansion project
at the Hull pork primary processing site
progressing as planned to add capacity,
drive further efficiency improvements
and add on-site cold storage.
• £10 million investment in expanding dry pet
food production at Pet Products is nearing
completion. This investment aims to double
kibble production facility capacity.
• Continued positive momentum in our
‘slow cook’ and ‘sous vide’ product range
following significant recent investment in
capacity at our Hull Cooked Meats sites.
Future plans
• Committed £13 million investment to
Eye facility in East Anglia to increase capacity
in our fresh poultry operations by
approximately 15 per cent.
• Committed to a further £35 million
investment to upgrade the Hull pork primary
processing site, creating the first 1,000 pig
per hour site in the UK and expanding
capacity up to 50,000 pigs per week.
• Phase 2 of the investment in our Worsley
businesses to facilitate the expansion of
our dips range.
• Investment in our asset base to increase
capacity, enhance production yields
and add flexibility to production areas,
improving customer service and supporting
further growth.
LEAN PROCESSING
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OUR STRATEGIC ENABLERS
CONTINUED
Our iconic and market-leading products set the benchmark
for excellence, supported by great taste, high-quality,
craftsmanship and innovation.
Why it’s important
Every product we create is a testament to our
expertise, blending tradition with cutting-edge
techniques to deliver something truly
exceptional. By continuously refining our
methods and pushing the boundaries
of innovation, we ensure our product range
remains distinct, relevant, and ahead of evolving
consumer trends.
Progress
• A record 78 million pigs in blankets were
delivered to our customers across the festive
period, coupled with a Good Housekeeping
award win for the best pigs in blankets.
• In close partnership with retailers, we
support the development of premium
brands, with a focus on quality, innovation,
and choice.
• We launched new genetics in fresh pork with
key retail customers, improving taste, texture,
and overall product quality.
• Sales from new products increased by 72 per
cent on the prior year, reflecting our focus on
innovation, authenticity, and flavour.
• The Ramona’s brand has recently launched
innovative new products across leading
retailers, including new flavours and formats.
Future plans
• Continue innovating, leveraging the Group’s
food expertise to create appealing offerings
like ‘sous vide’.
• Ongoing development of innovative,
added-value pig meat products that support
our core offering to further drive
volume growth.
• Identify new expansion opportunities outside
of our core categories.
• Maximise revenue growth opportunities
within the pet food market.
We have built deep, long-term strategic partnerships with our customers,
working closely to develop tailored supply chains, dedicated facilities,
and breakthrough innovations that set new industry standards.
Why it’s important
We have built deep, long-term strategic
partnerships with our customers, working
closely to develop tailored supply chains,
dedicated facilities, and breakthrough
innovations that set new industry standards.
By fostering collaboration, trust, and shared
ambition, we create solutions that drive
efficiency, sustainability, and long-term security.
Through these strong relationships, we deliver
not only reliability and resilience but
continuous growth.
Progress
• Long-term supply agreements with strategic
retail partners secured and expanded,
including 10 years sole supply of fresh pork,
sausage, premium bacon and cooked meats
with Sainsbury’s.
• The China export licence at our Norfolk
primary processing facility had been
reinstated after a four-year suspension.
A full range of products started being
shipped to China from early January 2025.
• Secured a new, major halloumi contract with
a key retail customer under the Cypressa
brand, launching in 800 stores.
• The Ramona’s brand has recently secured
new own-label business with one of the
Group’s leading retail customers.
Future plans
• Major new contract on the way for our
cooked and ready-to-eat chicken factory
from the start of Q1 FY26, which will be
a step change in volume and supported
by a capacity and capability enhancing
capital investment.
ICONIC PRODUCTS
CUSTOMER PARTNERSHIPS
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RIDDOR frequency rate
per 100,000 hours worked
2024
0.22
2023
0.24
2025
0.16
Edible food waste**
Percentage of tonnes sold
2024
0.16
2023
0.16
2025
0.12
Relative carbon footprint*
Tonnes of CO2e per tonne sales
Baseline (2020) 0.122
2024
0.087
2023
0.085
2025
0.088
Complaints per million units sold
2024
14
2023
10
2025
17
Number of supplier audits
2024
687
2023
340
2025
1,488
Number of BRC Grade A’s
2024
19
2023
17
2025
19
KEY PERFORMANCE INDICATORS
Key Performance Indicators (‘KPIs’) enable us to measure our progress
against our long-term growth strategy and our Second Nature commitments.
HIGH-QUALITY PRODUCTS
SUSTAINABILITY
LONG-TERM GROWTH STRATEGY
OPERATIONAL EXCELLENCE
Consolidate:
Like-for-like revenue growth
2024
+11.6%
2023
+14.4%
2025
+4.4%
Expand:
Sales from new products
2024
4.9%
2023
3.6%
2025
8.0%
Diversify:
Sales from ‘other’ segment
2024
£25.4m
2023
£26.6m
2025
£36.7m
Adjusted operating margin
2024
7.1%
2023
6.3%
2025
7.6%
Free cash flow
2024
£223.4m
2023
£149.2m
2025
£213.6m
Return on capital employed*
2024
18.5%
2023
15.8%
2025
18.5%
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 BRC
against Global Standards for Food Safety,
were awarded a Grade A rating, reflecting the
highest standards of compliance.
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 4.4 per cent,
reflecting a strong underlying performance
across our core categories. This was supported
by the continued outperformance of premium
added-value product ranges and a record
Christmas trading period, partially offset by
deflation due to falling pig prices.
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
£218.8 million of revenue in the current year,
representing 72 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
Pet food revenue 44 per cent higher
reflecting successful ongoing roll out of Pets
at Home contract.
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 farms and higher number
of farm audits.
Why is this important?
We are dedicated to delivering the highest
quality products, which meet, or exceed,
our customer expectations.
Performance
The increase is driven by the addition of new
factories, the onboarding of new customers,
and increased sales of new products.
Why is this important?
We are committed to reduce our relative
carbon footprint as part of our journey
to Net Zero.
Performance
Despite a marginal increase over the year,
the footprint is 39 per cent lower compared
to the 2019/20 baseline, reflecting continued
progress in energy efficiency and the
implementation of targeted carbon
reduction strategies.
*
2024, 2023 and the baseline data has been restated
following new learnings and business acquisitions.
Please refer to page 41 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.
** 2024 and 2023 data has been restated following the change
in methodology and business acquisitions.
Please refer to page 41 for more information.
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
RIDDOR accident frequency rate is down by
27 per cent compared to the previous year,
driven by efficient investigations and timely
corrective actions.
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
7bps reflecting substantial operating profit
growth from our existing asset base.
*
Return on capital employed (‘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 decreased during the year,
reflecting higher working capital outflow
of £37.7 million, partially offset by an increase
in EBITDA of £26.2 million.
Why is this important?
Adjusted operating margin is a meaningful
measure of the underlying profitability
of the business.
Performance
48bps increase in adjusted operating
margin to 7.6 per cent, reflecting a strong
contribution from growing pig farming
operations, excellent capacity utilisation
and tight cost control.
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OPERATING AND FINANCIAL REVIEW
“We have delivered strong
results and we have invested
at pace spending a record
£137.6 million to add capacity,
build capability and deepen
our vertical integration.
Our long-term growth strategy
remains firmly on track.”
Mark Bottomley
Chief Financial Officer
Revenue and Adjusted Operating Profit
2025
52 weeks
2024
53 weeks
Change
(Reported)
Change
(52 weeks3)
Revenue
£2,723.3m
£2,599.3m
+4.8%
+6.8%
Revenue (like-for-like1)
+4.4%
+6.4%
Adjusted Group Operating Profit2
£206.9m
£185.1m
+11.8%
+14.0%
Adjusted Group Operating Margin2
7.6%
7.1%
+48bps
+48bps
1. Like-for-like revenue references excludes the current year contribution from current and prior year acquisitions prior to the anniversary of their purchase.
2. Adjusted and like-for-like references throughout this statement refer to non-IFRS measures or Alternative Performance Measures (‘APMs’). Definitions and reconciliations of the APMs to IFRS measures are
provided in Note 31.
3. 2024 was a 53 week accounting period. References to revenue and adjusted group operating profit percentage change throughout the operating and financial review are on a comparable 52 week basis.
Revenue
Revenue increased by 6.8 per cent to
£2,723.3 million with volumes 7.7 per cent
ahead, reflecting a strong underlying
performance across our core categories,
supported by the continued outperformance
of premium added-value product ranges
and a record Christmas trading period.
Export revenue was 9.7 per cent ahead driven by
a stronger second half following the
reinstatement of the Norfolk site China export
license. Pet food revenue was 47.8 per cent
ahead as the onboarding of Pets at Home
business continues to build. Poultry revenue
increased by 20.3 per cent reflecting strong
growth in Cooked and Prepared Poultry and now
represents 19.6 per cent of total Group sales.
Adjusted Group Operating Profit
Adjusted Group operating profit was 14.0 per
cent higher at £206.9 million with adjusted
Group operating margin up 48 basis points to
7.6 per cent. Higher Group operating margin
reflected the positive contribution from the
Group’s expanded agricultural operations
across our Pork and Poultry businesses
alongside strong volume growth, excellent
capacity utilisation and a continued focus on
tight cost control.
processing facilities and downstream added-
value pig meat operations. We also increased
our self-sufficiency in pig feed milling to 20
per cent. We are now producing over 36,000
finished pigs each week and have almost
1 million pigs on the ground at any time, an
increase of 19 per cent versus March 2024.
We will continue to invest in our pig farming
and feed milling operations to ensure that we
have a secure supply chain in place to deliver
improved UK food security for our strategic
retail partners and consumers.
During the year, we have strengthened
farm-to-fork relationships across several of our
strategic customer partnerships. This includes
the recently announced extension of the Tesco
Sustainable Pig Group, securing Tesco’s supply
chain for its Finest and core fresh pork and
sausage ranges. The 10-year sole supply
agreement with Sainsbury’s includes fresh pork,
in addition to sausage, premium bacon and
cooked meats ranges. These long-term
partnerships give us, alongside independent
farmers, the confidence to continue investing in
British pig farming, ensuring further investment
in leading animal welfare standards and
farm productivity.
Fresh Pork, primary processing
All three primary processing sites lifted
production volumes year-on-year with the total
number of pigs processed increasing by 8.1
per cent. Increasing throughput drove higher
revenues through retail, wholesale and export
channels, with the balance traded internally
to fuel growth in our added-value gourmet
and convenience ranges. Including products
supplied internally, total Fresh Pork revenue
surpassed £1 billion.
We remain committed to continued
investment across our primary processing
operations to increase capacity and drive
further operational efficiencies. The ongoing
£62 million redevelopment of the Hull primary
processing site to expand the site footprint
and add onsite cold storage capability is
progressing to plan and is expected to be
operational from March 2026. We are now
committed to a further £35 million investment
to upgrade the Hull site’s abattoir, creating
the first 1,000 pig per hour site in the UK and
expanding capacity up to 50,000 pigs per
week. Ongoing investment at the Ballymena
and Norfolk sites includes projects that will
deliver efficiency improvements and
production flexibility.
During the year, we secured long-term
customer partnerships that underpin retail
Fresh Pork sales volumes for the future.
This builds on a record Christmas performance
and new innovative premium products
launches, utilising bespoke genetics with
increased levels of intramuscular fat and
improved eating quality. Innovation in pig
genetics has supported revenue growth and is
driving increased consumer appeal for pork
products through improved taste
and succulence.
Convenience
Convenience revenue was 0.5 per cent ahead
of the prior year and represented 36.2 per cent
of Group revenue.
Cooked Meats revenue was modestly ahead
of the prior year, reflecting new retail business
secured and with underlying growth from new
listings, offset by the decision to forego some
lower margin business at the start of the year.
We continued to see positive momentum in
‘slow cook’ and ‘sous vide’ products throughout
the year, with retailers looking to broaden their
ranges with more premium and convenient
meal solutions in this growing category.
This capability also contributed to a record
Christmas for the business with slow cooked
turkey and the ‘Christmas Dinner in a Box’
products continuing to gain traction
with consumers.
The Hull Cooked Meats facility renewed its
contract with the site’s anchor retail customer
and launched a new range of ‘slow cook’
products with a leading retail customer towards
the end of the year. Significant investment
projects in the year included further expansion
of ‘slow cook’ and slicing capability, delivering
labour efficiencies and providing headroom for
future growth.
The Milton Keynes facility maintained leading
service levels despite disruption from ongoing
site investment projects. We have launched a
new premium tier range with the site’s anchor
customer, following recent investment in
expanding capacity. An additional listing for
British Corned Beef has been secured which
will be onboarded early in the new
financial year.
The Valley Park site in South Yorkshire will
benefit from the recently announced long-term
Sainsbury’s deal, securing sole supply of the
Cooked Meats range with onboarding of
additional lines expected to take place by the
end of the current financial year.
Continental and Mediterranean Products
revenue was modestly behind the prior year,
with stronger pricing offset by lower volumes.
Imports of certain European charcuterie
products were disrupted during the second half
of the year due to the outbreak of foot and
mouth disease in Germany. Despite these
challenges, we have maintained retail service
levels for these products ahead of competitors
through the Bury site’s ‘Made in Manchester’
operating model. In olives and anti-pasti
products, pricing has reflected support for
olive producers following the challenging 2024
summer harvest. The stronger pricing also
reflects an improvement in product mix with
the business now being focused on premium,
added-value Mediterranean foods and
supplying less high volume, low value products.
The ongoing popularity of charcuterie, olives
and anti-pasti products, either sold in single
or mixed platter pack formats, continues to
drive expansion of wider Mediterranean food
categories and by driving this innovation we
delivered a record Christmas trading period
in the year.
The Ramona’s houmous brand is the leading
retail houmous brand measured by both
volume and value and has recently launched
new innovative products across leading
retailers, including new flavours and formats.
We resolved the capacity constraints of
Ramona’s small Watford plant by moving
production to the newly commissioned
Worsley facility halfway through the year.
The new facility has recently secured new
own-label business with one of the Group’s
leading retail customers. The Worsley facility
creates a platform to rapidly expand the
Ramona’s and own-label houmous and dips
ranges and provides substantial headroom
for further category innovation and growth.
The Bury site, newly commissioned in 2019,
is already approaching capacity demonstrating
the rapid growth of our Continental Products
business. We have recently acquired a 5 acre
site adjacent to the facility to expand the
footprint and ensure there is ample headroom
for future growth. Further operational
efficiencies have been delivered at the site
through investment in pepper stuffing and
olive desalination automation.
During the year, the Katsouris Brothers site
secured new business for a significant existing
food service customer co-packing their
branded range that is supplied across all major
retailers. We secured new halloumi listings
through the year supplying a leading retail
customer. We celebrated the 60th anniversary
of the Cypressa brand, which produces a range
of nuts and pulses, in the year. With strong
growth in retail distribution Cypressa is now
recognised as a leading nut snacking brand in
UK grocery. All these products are produced at,
or sourced through, our Katsouris business in
North London where investment in further
capacity is ongoing.
Category review
Food Segment
Fresh Pork
Fresh Pork revenue was 4.0 per cent ahead
of the prior year and represented 24.2 per cent
of Group revenue. Growth reflected strong
volume driven demand across retail, wholesale
and export channels.
Retail and wholesale channel revenue was
2.8 per cent ahead with corresponding volumes
up by 5.0 per cent. This was driven by the increase
in production volumes year-on-year offset by a
marginal decrease in the cost of pig production,
reflecting deflation in key commodities,
with the benefit being passed to customers.
Export revenues were 10.2 per cent ahead
with strong volume growth partially offset by
lower pricing. Volume growth reflected higher
pig numbers processed. Export revenues were
supported further, through increased volumes
shipped and improved pricing of ‘Fifth Quarter
material’, in the second half following the
reinstatement of the Norfolk site’s China export
license after a four year hiatus, although
year-on-year pricing to China and other Far
Eastern markets remained lower on average
versus the prior year.
Fresh Pork, agricultural operations
We continue to invest in and strengthen our pig
farming and feed milling operations. During the
year, we increased the size, scale and quality of
our indoor and outdoor pig herds through both
organic investment and acquisition. We are now
the only UK processor with direct control over
integrated pig genetics production, following
the acquisition of JSR Genetics.
Through enhanced genetics selection we can
now improve the eating quality of British pork,
supporting premiumisation and strengthening
customer partnerships. The acquisition of JSR
Genetics also increases our self-sufficiency in
indoor pig production. During the first quarter,
we also completed the acquisition of a
long-standing existing supplier of RSPCA
Assured outdoor-bred pigs, based in East
Anglia, which we have integrated into the
Wayland Farms operation.
We have trebled our own pig production over
the past six years, and we are now the largest
pig farming operation in the UK. Finished pig
numbers increased by 14 per cent compared
to the prior year with self-sufficiency
maintained at well over 50 per cent despite
growth in demand from our three primary
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OPERATING AND FINANCIAL REVIEW
CONTINUED
Gourmet Products
Gourmet Products revenue was 8.8 per cent
ahead of the prior year and represented
18.7 per cent of Group revenue. Volumes were
strongly ahead with revenue growth supported
by the contribution from Froch Foods, acquired
during the second half of the prior year.
Gourmet Sausage revenue was strongly
ahead reflecting positive volume momentum.
Retail promotions across premium ranges
and additional summer and Christmas listings
all contributed to strong underlying volume
growth. Strong demand for pigs in blankets
continues with double-digit year-on-year
growth and over 78 million single units
delivered to our customers across the festive
period, underpinning a record Christmas.
We supported this performance through
innovation and premiumisation with the
development of double wrapped pigs in
blankets and further investment in automated
production capacity.
Gourmet Bacon grew revenues year-on-year
driven by increased volumes, reflecting sales
growth to existing retail customers. The site’s
largest retail customer led this with strong
promotional activity, particularly around the
key Christmas trading period. Towards the end
of the year, we secured a new listing with one
of the Group’s strategic retail partners.
Froch Foods, acquired during the prior year,
continues to provide a positive contribution
to external revenue. We have transferred
bacon curing for the Hull Cooked Bacon
and Sausage facility from the Sherburn site
to Froch Foods. This has created headroom
for growth in premium bacon curing capacity
and is the more significant impact of the
Froch Foods acquisition.
Other segment
Pet Products
Pet Products revenue was 47.8 per cent ahead
of the prior year and represented 1.3 per cent
of Group revenue. Strong revenue growth
reflected the successful ongoing roll out of the
Pets at Home business, including the launch
of new premium lines in the year. We have
continued to strengthen our relationship
with Pets at Home over the course of the year.
Whilst top line growth is pleasing, the financial
performance of the pet food business reflects
the continued transformation taking place
including the ongoing strategic review of
the customer base, brand investment and
disruption resulting from the major capital
investment programme that has been ongoing
throughout the year. The business is well
positioned to enter its next phase, more fully
aligned to Pets at Home.
Finance review
Revenue
Reported revenue increased by 4.8 per cent
to £2,723.3 million (2024: £2,599.3 million).
Like-for-like revenue, excluding the impact from
acquisitions, increased by 4.4 per cent. On a
comparable 52 week basis, reported revenue
increased by 6.8 per cent and like-for-like
revenue increased by 6.4 per cent.
Adjusted gross profit and adjusted EBITDA
Adjusted gross profit increased by 12.1 per
cent to £419.9 million (2024: £374.7 million)
with adjusted gross profit margin at 15.4 per
cent (2024: 14.4 per cent). Adjusted EBITDA
increased by 9.9 per cent to £293.2 million
(2024: £266.8 million) and adjusted EBITDA
margin increased by 50 basis points to 10.8 per
cent (2024: 10.3 per cent).
Adjusted Group operating profit
Adjusted Group operating profit increased
by 11.8 per cent to £206.9 million
(2024: £185.1 million) and adjusted Group
operating margin improved by 48 basis points
to 7.6 per cent (2024: 7.1 per cent).
Full reconciliations of adjusted measures to
statutory results can be found in Note 31.
The net IAS 41 movement on biological assets
results in a £11.1 million debit (2024: £2.2 million
credit) on a statutory basis primarily reflecting
a reduction in sow value.
Finance costs and funding
Net financing costs of £9.2 million
(2024: £8.9 million) included £6.0 million
(2024: £3.6 million) of IFRS 16 lease interest.
Bank finance costs were £2.1 million lower than
the prior year at £3.2 million (2024: £5.3 million)
primarily reflecting the decrease 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 over £200 million of
headroom at 29 March 2025. 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 12.1 per cent
higher at £197.9 million (2024: £176.6 million).
Taxation
The tax charge of £47.3 million
(2024: £45.3 million) was 26.0 per cent of profit
before tax (2024: 28.6 per cent). The standard
rate of UK corporation tax was 25.0 per cent
(2024: 25.0 per cent). The effective rate was
higher than the standard rate due to the
impairment of intangible assets and other
expenses which are not deductible for tax
purposes. The effective tax rate on adjusted
profit before tax was 26.0 per cent (2024: 26.1
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 35 years (see page 13).
Our dividend policy can be found on our
website: www.cranswick.plc.uk.
Adjusted earnings per share
Adjusted earnings per share increased by 12.6
per cent to 273.4 pence (2024: 242.8 pence).
The average number of shares in issue was
53,581,044 (2024: 53,776,235).
Statutory profit measures
Statutory profit before tax was £181.6 million
(2024: £158.4 million), with statutory
Group operating profit at £190.6 million
(2024: £166.9 million) and statutory earnings
per share of 250.5 pence (2024: 210.4 pence).
Statutory gross profit was £408.8 million
(2024: £376.9 million).
Cash flow and net debt
The net cash inflow from operating
activities in the year was £216.3 million
(2024: £228.4 million). The decrease of
£12.1 million was primarily due to a higher
working capital outflow of £37.7 million.
This was partially offset by an increase in
EBITDA of £26.2 million. Net debt, including
the impact of IFRS 16 lease liabilities, increased
to £172.4 million (2024: £99.4 million) with
the inflow from operating activities offset
by £135.6 million, net of disposal proceeds,
invested in the Group’s asset base, £49.5 million
of dividends paid to the Group’s Shareholders,
£25.3 million of own shares purchased and
placed into the Cranswick Employee Benefit
Trust, £22.2 million of IFRS 16 lease charges
and £41.5 million of tax paid. There was a
£30.9 million increase in net debt in the year
in relation to acquisitions.
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 29 March 2025
was £nil (2024: £0.2 million). The present value
of funded obligations was £17.8 million, and
the fair value of plan assets was £17.8 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 2026.
Summary
We have delivered strong results and we
have invested at pace spending a record
£137.6 million to add capacity, build capability
and deepen our vertical integration. Our long-
term growth strategy remains firmly on track.
Our robust financial position, conservatively
managed balance sheet and class leading asset
base underpin the foundations from which we
will continue to grow and develop the business
during the next financial year and over the
longer term.
Mark Bottomley
Chief Financial Officer
20 May 2025
Revenue from the Hull Cooked Bacon and
Sausage facility was ahead of the prior year,
reflecting strong volume growth with new retail
business and further quick service restaurant
business onboarded at the end of the first half.
On 16 May 2025, following the year end,
we acquired the entire issued share capital
of James T Blakeman & Co (Holdings) Limited
(‘Blakemans‘). Blakemans is a leading
manufacturer of specialist raw and cooked
sausage products supplying the food service
sector. The business operates from a dedicated
well-invested facility in Staffordshire and
employs a total workforce of approximately
290. The acquisition is complementary to our
existing added-value Gourmet business, adding
capacity in raw and cooked sausage production
whilst enabling efficient supply into the food
service market.
Pastry revenues were strongly ahead
year-on-year reflecting a robust underlying
performance in the core product range with the
site’s anchor customer. New product launches,
including innovative meal solutions developed
in collaboration with a celebrity chef and new
premium sausage roll products, continue to
drive category growth in our premium pastry
range and deliver improved sales mix for the
site. During the year, the Malton facility was
awarded ‘Fortress’ status by the site’s anchor
retail customer, one of only nine sites in the
country to be awarded this status.
Poultry
Poultry revenue was 20.3 per cent ahead of
the prior year and represented 19.6 per cent
of Group revenue, up from 17.4 per cent in
the previous financial year.
Poultry, agricultural operations
We have expanded our fresh poultry farming
supply chain at pace throughout the year.
Now nearing completion, we have secured
the space necessary to enable the move to
enhanced welfare lower stocking densities.
The £9 million investment project to expand
incubatory capacity at the Kenninghall site in
East Anglia is progressing to plan, with
extensive mill refurbishment works underway.
This project will ensure we have an increased
and secure supply of birds available to match
the planned uplift in Eye processing capacity.
Poultry, primary and added-value processing
Fresh Poultry continued to perform well
reflecting retail demand from the site’s anchor
customer and a 7.2 per cent increase in birds
processed at the Eye facility versus the prior
year. We have grown internally supplied Fresh
Poultry volumes driven by increased demand
from new Cooked and Prepared Poultry retail
business onboarded in the year. The £13 million
investment project to add further capacity at
Eye will add c.15 per cent additional capacity
and further automation.
Prepared Poultry revenues more than doubled
and Cooked Poultry delivered double digit
growth, driven by increased volumes and
improved sales mix following the onboarding
of new premium retail business. This growth
has been delivered despite disruption from the
£29 million capacity and capability expansion
projects being completed across these sites
in the year and widely reported industry-wide
fresh poultry supply challenges. These projects
are now nearing completion and supply into
the new flagship retail partner shared across
the Cooked and Prepared Poultry sites has
recently started.
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OUR SUSTAINABILITY STRATEGY
We have continued to make significant strides
in embedding our Second Nature strategy across
the business and driving it forward with innovative
projects and initiatives. These have included establishing
an internal carbon fund, participating in recycling
schemes, and engaging with partners to further
the transition to regenerative agriculture.
Embedding the Second Nature strategy
Our Second Nature sustainability strategy
is designed to be accessible, relevant and
relatable for all our stakeholders, facilitating
active involvement and action from all parties.
It guides us in integrating our sustainability
commitments seamlessly into the core
of our business model, which in turn shapes
our decision making, culture and actions.
Over the course of the year, we have focused
on embedding Second Nature throughout
Cranswick and beyond. This has included the
introduction of communications in multiple
languages, with QR codes linking to real time
news and updates. These ensure that everyone
at our sites, regardless of their role
or first language spoken, can access and
understand the Company’s sustainability goals.
Acting sustainably is a way of life. To us,
it is ‘Second Nature’ to protect and nurture
our environment, supporting people and
communities to thrive. This is what we mean
by putting the future first, every day.
PUTTING THE FUTURE
FIRST, EVERY DAY
Second Nature Guiding Principles
ENVIRONMENT
FROM THE LAND,
FOR THE LAND
We will always be farmers at heart.
Environmental stewardship is woven into
our identity, from farm-to-fork. We work
tirelessly for a more sustainable future.
GOVERNANCE
OPEN COLLABORATION,
SHARED SUCCESS
Sustainability is a shared responsibility,
one that requires collective action
to preserve the wellbeing of our
environment and society, leaving
no business or individual behind.
SOCIAL
THRIVING TOGETHER,
WITH PURPOSE
We are a people-focused business.
Our mission extends beyond
nourishing the nation, as we strive
to cultivate careers, empower
communities and enhance quality of life.
Bringing Second Nature to life
While our three principles guide us, our four working pillars bring Second Nature to life day to day.
FARMING WITH
CONSCIENCE
NATURE
& NURTURE
Empowering and supporting our
farmers to do the right thing and
cultivate a healthier, more
sustainable world — for
themselves, for the animals, for
the planet.
Considerate farming
from start to finish
Read more on page 36.
Link to Sustainable
Development Goals
PRODUCING
RESPONSIBLY
EVOLVE &
TRANSFORM
Use less. Waste less.
Recycle, reuse and repurpose.
Committed to continuous
improvement, we are constantly
refining our processes
and practices.
Continuous improvement that
transforms our impact.
Read more on pages 38 to 41.
Link to Sustainable
Development Goals
SOURCING WITH
INTEGRITY
BIG &
SMALL
We make conscious and ethical
decisions on where we source
from, informed by the impact
that each decision has on the
environment, communities
and individuals.
Even the smallest changes
can lead to big impacts.
Read more on page 37.
Link to Sustainable
Development Goals
LIVING
BETTER
COLLECTIVELY
& INDIVIDUALLY
We are devoted to the welfare
of our people and communities,
our animals and suppliers.
Every human encounter,
every animal we care
for, they all matter.
People and planet,
combining for better.
Read more on page 42.
Link to Sustainable
Development Goals
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STRATEGIC REPORT
SOURCING WITH INTEGRITY
FARMING WITH CONSCIENCE
NATURE & NURTURE
BIG & SMALL
We are committed to cultivating a
regenerative agricultural food system that
focuses on livestock and nurturing soil health
to improve biodiversity and build supply chain
resilience. By prioritising animal welfare and
upholding industry-leading standards, we
foster and promote innovation, empowering
farmers to act responsibly in the interests
of their crops, animals, and their local
environment. This proactive approach helps
us work towards achieving our Net Zero
livestock goal, while ensuring resilient,
sustainable agricultural practices in our
operations and supply chain.
Sustainable soya standard
Reducing the carbon footprint of animal feed
remains a significant industry challenge. We are
determined to lower the levels of soya meal in
our pig and poultry diets, achieving figures
below industry averages. We transitioned all
our soya purchases to 100 per cent full mass
balance RTRS certified by the end of 2024,
which delivers a 14 per cent decrease in the
carbon footprint of an outdoor reared pig.
We are also supporting the efforts made by
the Agricultural Industries Confederation
(‘AIC’) to introduce a UK sustainable soya
standard. With retailers pushing for verified
deforestation-free soya, we believe this will
be achievable, but it needs to be an industry-
wide move.
Through industry coalitions such as the UK Soy
Manifesto (‘UKSM’), we are working with all
agricultural sectors to ensure that, in the future,
all physical soya shipments to the UK are
deforestation and conversion free. The AIC
is developing a new module for conversion-free
soya, which aligns with the EU Deforestation
Regulation. This is expected to be available
to all UKSM signatories by the end of the year.
Regenerative agriculture
The transition to regenerative agriculture
remains a key focus for Cranswick.
We recognise both the role pigs play in
improving soil health, and the pivotal role soil
health has in mitigating climate change risks
at regional, national, and international levels.
Through our longstanding relationships with
local farmers, we facilitate the exchange
of straw for muck from our pig and
poultry operations.
The effective integration of nutrients and straw
from livestock into the soil improves biological
activity, increasing organic matter, and nutrient
and carbon cycling. This provides the optimum
conditions for the growth and development of
crops and increases the diversity of bacterial
populations and soil microbes, while reducing
reliance on synthetic fertilisers. This improves
soil water retention, helps counter the threat
of drought, maintains crop yields, and promotes
efficient irrigation in shared field rotations.
During the year, we further increased our
focus on regenerative agriculture, working
on a carbon inset project to support resilient
farming systems and productivity, sharing our
best practice techniques for improving soil
stability. We also aim to purchase our cereal
crops from British producers practising
regenerative agriculture. This initiative will
reduce the carbon footprint of these crops
and support the transition to sustainable
farming practices.
MONITORING
BIODIVERSITY
WITH AGRISOUND
Building on the success of our existing
collaboration with AgriSound, we are leveraging
their cutting-edge microphone and software
technologies to monitor biodiversity even more
effectively. Previously used to monitor insect
activity on our outdoor breeding units, the
AgriSound monitors are now capable of
detecting a wide range of wildlife, helping us to
ensure that farming practices are in harmony
with the environment.
emissions within the Cranswick supply chain
but also drives the enhancement of biodiversity
and natural capital among our aligned contract
producers. This promotes a collective
commitment to environmental sustainability
and Net Zero goals within the agricultural sector.
Landowners participating in the scheme can
earn premiums for demonstrating high levels
of carbon and biodiversity uplift. This initiative
is part of a broader collaboration with the Soil
Association Exchange, Sustainable Markets
Initiative and key retailers, in an effort to
commercialise the carbon inset concept
within vertically integrated supply chains.
CRANSWICK CARBON
INSET SCHEME –
IMPROVING BIODIVERSITY
Through the Cranswick Carbon Inset Scheme,
we focus on reducing carbon emissions within
our supply chain. By working closely with
producers and customers, we aim to lower the
carbon footprint of our products and promote
sustainable practices across the industry.
We have secured Innovate UK Government
funding to advance the scheme’s initiatives
across the agricultural supply chain. This funding
has supported projects like carbon mapping and
the deployment of 300 AgriSound monitors to
enhance biodiversity monitoring.
The Cranswick Carbon Inset Scheme is closely
linked to biodiversity improvement.
Designed to align with existing and future
environmental programmes, such as the
Countryside Stewardship Scheme or the
Sustainable Farming Incentive (‘SFI’), the scheme
not only facilitates the insetting of carbon
HIGHLIGHTS
HIGHLIGHTS
Every action we take towards being
more sustainable as a business is important,
whether big or small. We constantly aim
to make informed and ethical sourcing
choices, considering our impact
on the environment, our communities,
and individuals.
Engaging with suppliers
We understand the importance of supplier
engagement, especially when it comes
to monitoring and reducing our Scope 3
emissions. We have made strides in improving
the quality of our Scope 3 data during the year,
splitting it into Forest, Land, and Agriculture
(‘FLAG’) and non-FLAG categories.
We continue to engage further with our
suppliers to understand their sustainability
journey and identify areas where our values can
align. By prioritising key suppliers, particularly
those with significant emissions such as corned
beef producers from Brazil, we are working
to ensure that we are all on the same
sustainability journey.
Transparent supply chains
We are proud to say that 100 per cent of our
meat, fish and egg suppliers are accredited to
a nationally recognised farm assurance scheme.
It is important that the suppliers who work with
us can provide the assurances that our
customers and consumers need when it comes
to food integrity and safety. That is why we are
striving to enhance the visibility and
transparency within our supply chains.
Reducing packaging waste
To address the issue of packaging waste
across our value chain, our development teams
collaborate closely and challenge existing
assumptions, with the aim of integrating
sustainability into every stage of development.
We work with suppliers and re-processors to
identify effective solutions, such as closed-loop
recycling systems for food-grade packaging
and using alternative waste trays and tote liners.
Since 2017, we have reduced unnecessary
plastic use by 19.9 per cent (2,440 tonnes)
through lighter-weight packaging, reducing
certain packaging materials, and developing
alternatives to plastic where feasible.
Our Project Flake initiative focuses on
tray-to-tray recycling. Waste plastic trays from
our sites are collected and sent to a third-party
facility for washing and reprocessing.
The recycled material is then delivered to our
supplier, where it is blended into the extrusion
mix used to produce new trays, which are
returned to Cranswick for reuse. This project
aims to promote recycling and contribute to
the circular economy by creating a closed-loop
system for plastic tray reuse.
We have supported the development of
groundbreaking recyclable wheat straw-based
trays made from 80 per cent wheat and 20 per
cent pulp. These trays are fully recyclable,
offering an innovative solution to eliminate
plastic. While slightly more expensive than
plastic, they are more cost-effective than
comparable sustainable alternatives,
making them a significant advancement in
eco-friendly packaging.
Self-sustaining solutions like tray-to-tray recycling
are vital in driving progress. However, government
traction on recycling initiatives is crucial to drive
meaningful change. By driving the adoption
of closed-loop systems, waste generation can
be drastically reduced while conserving valuable
resources. Aligning policy and incentives with
sustainability objectives will create a more resilient
and efficient recycling framework.
INNOVATIVE PACKAGING
PARTNERSHIP
Working with a leading European packaging
company, we have assisted a key retailer in
transforming its fresh sausage packaging.
The switch from non-recyclable material
to fully recyclable mono-material allows
fresh sausage packaging to be recycled
at supermarkets through back-to-store soft
plastic recycling schemes.
By updating the packaging for this sausage
range, the retailer has reduced packaging
weight by 30 per cent, saving 10 tonnes
of material each year. This change not only
provides sustainability benefits, but also
improves presentation, with a special tactile
finish for a ‘butcher’s feel’, giving the packs
a unique paper-like appearance, while
contributing to environmental conservation.
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PRODUCING RESPONSIBLY
EVOLVE & TRANSFORM
We are dedicated to driving efficiency
and sustainability across all aspects of our
business. With a commitment to continuous
improvement, we constantly refine our
processes, adopt innovative practices
and seek new opportunities for progress.
Responsible production is an ongoing,
ever-evolving journey – one that requires
us to adapt and advance alongside it.
Our ambition to Net Zero
Our first key milestone is a 50 per cent absolute
reduction in Scope 1 and 2 emissions by 2030,
against a 2019/20 baseline. This target has
been validated by the Science Based Targets
initiative (‘SBTi’) and is aligned to the Paris
Agreement’s 1.5oC warming limit. We are in
the process of setting SBTi long-term targets
but, in the meantime, we have a voluntary
ambition of Net Zero in our owned operations,
no later than 2040. Here we endeavour to
maximise emission reductions to 90 per cent
and then offset the remaining unavoidable
residual emissions using high-quality
permanent carbon removals.
In accordance with the Greenhouse Gas
(‘GHG’) Protocol, all our Scope 1 and 2
emissions across manufacturing and farming
are incorporated in our GHG inventory.
Our GHG inventory also contains Scope 3
emissions, which account for over 95 per cent
of our total emissions. We strive towards our
current SBTi-validated 50 per cent relative
reduction in Scope 3 emissions by 2030,
against a 2019/20 baseline. Reducing Scope 3
emissions, particularly in purchased goods and
services, presents complex multi-dimensional
challenges. We prioritise categories we can
influence the most, such as our purchased
animal feed or increasing vertical integration
of our owned livestock. We continue to improve
data accuracy, with most of our inventory
moving from spend-based methodology
onto weight and supplier-based methods.
Leveraging supplier engagement and supplier-
specific data allows us to incorporate their
emission reductions, drive collaboration and
influence business decisions.
Enhancing our ambition
with SBTi FLAG
To advance our ambition to Net Zero, we are in
the process of setting FLAG (Forest, Land, and
Agriculture) and non-FLAG targets in conjunction
with SBTi. These new targets will revise and
supersede our current Scope 1, 2 and 3
short-term SBTi targets, while establishing new
long-term verified commitments. We await final
guidance from the GHG Protocol but anticipate
submission within the next financial year.
Our transition plan
To deliver our Net Zero ambition, we have
incorporated the UK Transition Plan Taskforce’s
(‘TPT’) general and food sector guidance
recommendations into our Second Nature
strategy. We are in the process of developing
a standalone Net Zero transition plan. As per
TPT recommendations, this document will then
be updated either every three years, or following
material changes, whichever is sooner.
We have identified the following transition
levers that enable carbon reductions across
the Group to achieve our ambition.
Energy reductions
The primary objective of this lever is to minimise
energy consumption by implementing energy
efficiency measures across the Group.
This encompasses the ongoing identification,
evaluation and execution of opportunities
to enhance energy performance.
Key focus areas include more extensive
sub-metering to identify improvement areas;
upgrading to advanced energy-efficient
equipment where possible; improving insulation
and thermal efficiencies; optimising production
processes; achieving and maintaining
ISO50001 certification; utilising fleet
management software to optimise logistics;
eco-efficient driver training; and adopting
best practices in energy management.
For example, 90 per cent of our manufacturing
sites are ISO50001 accredited, which helps
drive energy efficiency and carbon reductions
through auditing and action planning.
Similarly, all sites have been gap assessed
for submetering and energy efficiencies.
These sites have then completed, or are
in the process of completing, installation
of sub-meters, new energy efficient machinery
and improved insulation. Multiple sites are now
fully sub-metered for gas, electricity and water
allowing for granular analysis to improve
individual processes.
In addition, this lever reflects our broader
strategic ambitions that prioritise similar
reductions and efficiency improvements in
critical areas such as water, packaging and
food loss and waste. By integrating these
efforts and driving efficiencies, we aim to
achieve holistic resource efficiency and reduce
unnecessary energy use to impart positive
impacts on our emissions.
Increasing renewables
Renewable energy is fundamental to the
global transition toward a low-carbon economy.
For Cranswick, this involves two key
dimensions: generating renewable energy
on-site and transitioning to renewable fuels.
Since 2018, we have sourced green electricity
from the grid to power our operations.
Building on this foundation, we aim to not
only reduce our reliance on the grid, lowering
our carbon footprint, but also enhance our
resilience and control over energy costs.
To achieve this, we are maximising renewable
energy generation systems such as solar panels,
wind turbines, and battery storage technology
wherever possible. Twelve of our locations
already have solar installations, with additional
sites in the pipeline.
Green electricity is critical to enabling the
electrification of equipment and processes.
However, some operations are not easily
electrifiable, requiring alternative energy
solutions. This makes renewable fuels essential.
Hydrotreated vegetable oil (‘HVO’) has already
reduced emissions from our northern HGV
fleet by 95 per cent. Additionally, infrastructure
is in place at our farming operations to trial bio
alternatives to liquefied petroleum gas (‘LPG’).
We continue to explore emerging low-carbon
alternatives such as green gas from anaerobic
digestion and green hydrogen generation.
As part of the East Coast Hydrogen Consortium,
we are collaborating to bring clean hydrogen to
the Humber region by the mid-2030s.
By combining renewable energy generation
with a transition to alternative fuels, we are
positioning ourselves to significantly reduce
carbon emissions, while supporting the broader
low-carbon shift within our industry.
Rollout of technologies and equipment
The deployment of additional technologies
and equipment emphasises strategic investments
aimed at modernising operations, while reducing
environmental impact, playing a vital role in
bringing existing facilities up to speed.
The first key focus is the continued transition
to advanced refrigeration systems that phase
out the use of F-gases. We are proud to have
significantly reduced refrigerant emissions
by 80.9 per cent since our 2019/20 baseline.
We continue to focus on eliminating harmful
refrigerant emissions from our operations
with several ongoing projects to implement
alternative refrigeration systems. This year,
efforts have continued by installing new
systems and switching to gases with lower
global warming potential. These new systems
not only reduce reliance on F-gases, but also
improve energy efficiency and allow for
heat recovery.
The installation of heat recovery solutions
enables the capture and reuse of waste heat,
optimising energy use and reducing fuel
consumption. Similarly, ground and air-source
heat pumps provide opportunities to reduce
or eliminate fossil fuel consumption for
hard-to-abate areas. This electrification of
processes traditionally reliant on fossil fuels
has allowed many of our sites to significantly
reduce emissions. Finally, investing in
equipment capable of utilising alternative
future fuels, or retrofitting existing systems,
such as our combined heat and power
units, remains a crucial step in improving our
own operations.
By systematically rolling out these technologies,
we enhance energy efficiency, reduce emissions,
and future-proof our operations against
climate-related risks.
This approach also plays a critical role in
decision making when constructing new sites,
not just when renovating existing facilities.
Cranswick has a strong track record of
developing state-of-the-art facilities tailored
to our operational needs, such as our poultry
processing site in Eye, our Gourmet Kitchen
site producing cooked bacon, our added-value
poultry site in Hull, and our newest houmous
factory in Worsley. These sites were designed
from the ground up with sustainability as a core
principle, incorporating cutting-edge, energy-
efficient, and climate-conscious technologies.
By prioritising sustainable design from the
outset, we eliminate the need for future
retrofits and embed climate resilience directly
into the foundations of our operations.
Reducing agricultural
non-mechanical emissions
Agricultural non-mechanical emissions stem
from biological processes and, in the context
of our direct operations, primarily arise from
enteric fermentation and manure management
in livestock. While our farming operations will
benefit from the three previously identified
levers, such as energy efficiencies through
refurbishing older sheds or switching
to renewable fuels, these FLAG emissions
require a more nuanced approach.
Our primary strategy for reducing these
emissions is to enhance the efficiency
of livestock production through natural genetic
advancements and dietary improvements.
This year, we have further transitioned
to deforestation-free soya, which has a lower
carbon footprint, and continued reformulating
diets for both pigs and poultry. Additionally,
we remain committed to exploring alternative
feed sources through ongoing trials.
In manure management, we actively collaborate
with farmers to promote best practices and
assess innovative applications for manure
utilisation. Integrating regenerative agricultural
practices remains a key priority across our
farming operations, often incorporating
manure as part of the process.
For more information, please refer to the
‘Farming With Conscience’ section on page 36.
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OUR SUSTAINABILITY STRATEGY
CONTINUED
Our progress
Since the launch of Second Nature back in
2017, we have reduced our relative market-
based Scope 1 and 2 emissions by
approximately 70 per cent, demonstrating
strong, sustained progress despite the
organic growth of the Group. This achievement
has been driven by a range of targeted
initiatives, such as our transition to renewable
electricity in 2018.
While the location-based emissions increased
marginally by 1.7 per cent over the past year,
this was primarily due to a shift in product
mix requiring greater gas usage and increased
heat demand for our expanded livestock
operations, which require higher
LPG consumption.
Despite this short-term fluctuation, we remain
focused on improving operational efficiency
that supports long-term progress towards
our carbon reduction goals. We are actively
auditing our food manufacturing sites to
identify opportunities for energy reduction,
and are advancing heat recovery projects with
the potential to deliver significant short-
term savings.
Water
While reducing our GHG emissions remains a
key priority, we recognise the interconnectivity
of environmental sustainability, water and
nature. 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 using rinse-free
disinfectant. Additionally, multiple sites are
trialling, or have implemented, innovative
automated conveyor belt cleaning systems
that show significant water reductions.
Similarly, multiple sites are investigating
solutions for pressure, flow and temperature
reductions. Our Fresh Poultry site features an
effluent treatment plant to recycle wastewater
for various applications, such as the washing
of the vehicle fleet, and our Prepared Poultry
site captures rainwater for use as grey water.
Additional projects are in the pipeline such
as reverse osmosis and rainwater capture.
These improvements listed above are reflected
in our water intensity excluding farms, which
has decreased 3.8 per cent since last year, with
a longer-term trend of 4.7 per cent reduction
against our 2019/20 baseline.
Internal Carbon Fund
Cranswick’s ESG Committee has established
an Internal Carbon Fund, redirecting money
previously spent on carbon credits into a central
fund for sustainability projects. This dedicated
financial resource channels proceeds from
internal carbon pricing, applied to
manufacturing sites’ Scope 1 and 2 emissions,
into climate-related initiatives. This approach
incentivises carbon reduction decision making
over time, while providing targeted funding
for initiatives that may not ordinarily meet
capex allocation thresholds.
Throughout the year, funding has been
allocated to 18 projects, including
sub-metering, water pressure reduction
systems, reverse osmosis, rainwater harvesting,
anaerobic digestion feasibility studies,
heat recovery, heat pumps, and pipe lagging.
These projects will directly and indirectly
reduce carbon emissions across the Group,
with an estimated combined saving of
5,000 tCO2e.
HIGHLIGHTS
WELLY RECYCLING SCHEME
Our Cranswick Convenience Foods division
has started to use WashGuard Wellington
Boots, which are designed for hygiene teams,
offering a combination of comfort and safety.
The boots are not only practical but also
contribute to sustainability through
recycling initiatives.
This has enabled us to launch a new recycling
initiative with PPE recycling and disposal
experts Food Clean. They collect the used
Wellington boots and other garments, recycle
them, and transform them into playground
surfaces and athletic fields.
This initiative not only enhances sustainability
but also ensures comfort for our employees.
With 12,000 production employees, the
scheme prevents a remarkable 22,800kg
of Wellington waste going to incineration
every year.
SINCE LAUNCHING SECOND NATURE IN 2017, WE HAVE ACHIEVED:
Relative carbon footprint (market-based)
-67.6%
2017: 0.205 tonnes CO2e/sales tonnes
>80%
Reduction in harmful F-gas emissions from refrigeration
>30%
of our sites now have solar panels installed
Market-based Emissions
-29.2%
2017: 142,172 tonnes CO2e
Environmental Performance Data
2024/25^
2023/24*
2019/20*
Scope 1 emissions (tonnes CO2e)
94,185
85,758
89,074
Scope 2 emissions (location-based) (tonnes CO2e)
39,377
39,875
42,059
Total Scope 1 and Scope 2 emissions (location-based) (tonnes CO2e)†
133,562
125,633
131,133
Total Scope 1 and Scope 2 emissions (market-based) (tonnes CO2e)
100,657
94,149
98,172
Relative carbon footprint (location-based) (tonnes CO2e/sales tonnes**)
0.088
0.087
0.122
Absolute energy use (kWh million)
543
517
370
Energy intensity (kWh/sales tonnes**)†
358
356
345
Absolute water use (m3 millions)
2.88
2.86
2.04
Water intensity (m3/sales tonnes**)
1.90
1.97
1.91
Absolute water use (m3 million) – excluding farms
1.83
1.82
1.42
Water intensity (m3/sales tonnes**) – excluding farms†
1.47
1.53
1.54
^ 2024/25 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 2024/25 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 43 to 48.
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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 partnering
with local charities to combat hunger.
Promoting inclusion
We actively encourage and embrace 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.
Read more about our Diversity, Equity and
Inclusion (‘DEI’) strategy on page 57.
Tackling modern slavery
We are committed to ensuring that people
in our supply chain are treated with dignity
and respect. That means playing our part
in combating modern slavery and human
trafficking through the implementation
and enforcement of effective systems
and controls. Alongside this, we regularly
monitor ethical standards internally and
through third-party audits.
We provide colleagues with regular training
on modern slavery, backed up by workshops
and awareness sessions. This year 1,176
colleagues in total have completed online
courses in modern slavery.
Our Modern Slavery Statement has been
updated in line with the latest requirements
of section 54 of the Modern Slavery Act 2015.
Read more about our Anti-Slavery Policy
at www.cranswick.plc.uk.
Food waste and redistribution
We maintain our zero operational waste
to landfill policy and continue our ambitions
to zero edible food waste by 2030. Food loss
and waste is segregated from other waste,
either weighed on site or at collection, then
reported monthly and stored centrally by
food category and waste type. Since our
2017/18 baseline, the total edible food waste
percentage has reduced by 51.5 per cent
to 0.119 per cent thanks to implemented
interventions and redistribution efforts.
We have therefore reached our 50 per cent
edible food waste reduction target and
continue our ambition of zero food waste.
We support our staff by offering a range
of discounted products via on-site vending
machines and internal staff sales. Sites also
support local charities such as women’s shelters,
school breakfast clubs and homeless shelters
to direct surplus food to our closest communities.
Across the Group, we also work with national
charities FareShare, Company Shop and
Bread and Butter Thing; this allows us to
redistribute to the neediest across the UK.
Thanks to the partnership with FareShare,
we have now redistributed over 1.8 million
meals (based on 420g per serving), taking
our total redistribution since 2017/18
to 8.4 million meals.
ESG ratings
We welcome independent assessment of our
ESG performance and engage with leading
third-party agencies to benchmark our
progress. This year, key milestones include an
MSCI upgrade from ‘AA’ to ‘AAA’; ISS ESG from
‘Not Prime’ (C-) to ‘Prime’ (C+); and CDP Forest
from ‘C’ to ‘B’, while maintaining a ‘B’ rating
for Climate and Water. These improvements
reflect enhanced disclosures, strong KPIs
relative to peers, innovations such as internal
carbon pricing, and robust governance.
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 43 to 48 as well as in the ESG
Committee Report on pages 104 to 105.
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 49 to 51.
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.
HIGHLIGHTS
COMPANY SHOP FOOD
REDISTRIBUTION
Company Shop Group is one of the UK’s
leading redistributor and retailer of surplus
product. The business has a network of
‘surplus supermarkets’ selling redistributed
products from a range of retailers and
manufacturers to members. A percentage
of the profit is then re-invested into the
Community Shop; a social enterprise,
which helps people in the poorest communities
to access discounted food and essential
household items as well as access
to services such as CV writing and skills
development training.
Our cooked meats site in Barnsley partnered
with Company Shop to bring a range of
discounted ambient products into an on-site
pop-up shop. This allowed staff to purchase
redistributed products, at their place of work,
in addition to regular staff sales.
Colleagues who took advantage of the pop-up
enjoyed both supporting a charity through their
shopping and the convenience and range of
products on offer.
OUR SUSTAINABILITY STRATEGY
CONTINUED
LIVING BETTER
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.
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, opportunities and
transition planning. The Board is updated on climate-related issues at least three
times per year by the ESG Committee, while sustainability data is reported
quarterly. Board members are also present during other Committees,
such as the Second Nature Steering Committee. These prior Committees
serve to filter information from site-level management to the Board.
ESG COMMITTEE
The Committee meets at least three times
annually and is attended by all Board
members, as well as other relevant internal
stakeholders. It oversees the progress
of our Second Nature programme and
responds to climate-related risks and
opportunities, including identifying
available mitigating actions. Full details
of its activities can be found
on pages 104 to 105.
AUDIT COMMITTEE
Meets at least three times annually.
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 106 to 110.
GROUP RISK 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, environmental
compliance and sustainability.
ENVIRONMENTAL
MANAGERS MEETINGS
Meets quarterly with representation from
each site and other internal stakeholders
as required. These meetings discuss
specific site related actions and ensure
that site environmental teams are on track
to respond to climate-related risks and
opportunities. Attending members are
responsible for project development,
deployment, monitoring, and KPI reporting.
SECOND NATURE
STEERING COMMITTEE
Meets at least three times annually.
Attended by the COO, CFO, CCO, and
representatives from all aspects of the
business. The Committee reviews and
discusses progress against our transition
plan to drive opportunities, highlighted
through the sub-committees, to reduce risk
and realise our strategic ambition.
MANUFACTURING SECOND
NATURE COMMITTEE
Meets quarterly and is attended by
representatives from each manufacturing
site and other key stakeholders as required.
Provides direct updates to the Second
Nature Steering Committee regarding
climate-related risks and opportunities,
with a focus on site-specific progress
along our transition to Net Zero.
Attending members are responsible
for project development, deployment,
monitoring, and KPI reporting.
AGRICULTURAL SECOND
NATURE COMMITTEE
The Committee meets quarterly and is
attended by representatives from our
farming businesses, with key stakeholders
attending as required. It is responsible
for identifying climate-related risks and
opportunities, with a specific focus on our
farming sites’ transition towards low-carbon
pig and poultry production.
Attending members are responsible
for project development, deployment,
monitoring, and KPI reporting.
REMUNERATION
COMMITTEE
Meets at least twice annually. Aligns the
Group’s remuneration policy to our Second
Nature programme goals, and sets the
executive remuneration packages and
incentive schemes. The Committee is also
responsible for setting targets, which
challenge and support management in
achieving sustainability targets, while
maintaining shareholder value. Refer to
pages 115 to 120 for further detail.
Key
Board-level Committees
Management-level Committees
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COLLECTIVELY & INDIVIDUALLY
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,
as well as our business continuity planning and
risk management processes. To support this,
we conduct climate scenario analysis (‘CSA’)
and actively monitor existing and emerging
sustainability-related developments, including
regulatory changes, evolving disclosure
standards, and broader global trends.
Once risks are identified, we assess their
materiality by evaluating both the likelihood
of occurrence and the magnitude of the
potential impact, while also considering the
expected time horizon over which the effects
may emerge. In this assessment, we also take
into account the financial and non-financial
consequences to our business model, along
with available mitigating actions to minimise
the impact of the risk.
A risk is considered ‘insignificant’ if it results
in less than a 5 per cent impact on adjusted
operating profit, requires only minor capital
expenditure, or results in minimal reputational
impact. Conversely, a risk is considered ‘severe’
if it results in more than a 20 per cent impact on
adjusted operating profit or requires a
significant increase in capital expenditure.
It would also necessitate a major strategic
change and attract significant
stakeholder scrutiny.
These impact ratings allow us to categorise
and prioritise risks, as well as identify available
opportunities, enabling appropriate
management actions to be taken.
This year, following our updated CSA, we are
assessing climate-related risks in greater detail.
Furthermore, the scope of assessed risks across
our owned operations has expanded compared
to previous years. Notable changes include the
addition of new physical and transition risks,
and the replacement of ‘extreme weather
events’ with separate, more granular risks.
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, mitigation of,
and adaptation to, key risks facing the business.
The day-to-day management of climate-related
risks and opportunities, including the
development and deployment of associated
projects, is undertaken by several key
internal stakeholders at both site-level and
Group-level, including senior leadership,
agricultural, environmental and engineering
teams. Progress is collated by the Group
sustainability team and reported to the Board
on a quarterly basis via the Risk Committee.
The Second Nature steering committee
conduct quarterly reviews of risks and
opportunities, which may impact our
operations. The ESG Committee is ultimately
responsible for identifying, managing,
prioritising and mitigating climate-related risks.
There is a continuous focus to identify, and
respond to, new and emerging climate-
related risks.
The Board recognises the significant
impacts posed by climate change.
These are incorporated within the climate
change principal risk, within our effective
risk management, detailed on page 77.
2.3 Integration of climate-related risks
into the overall risk management
Climate-related risks are fully integrated into
our Group risk management processes and are
evaluated using the Group’s risk assessment
methodologies. These risks are recorded in the
climate risk register, with appropriate controls
in place. The risk assessment also incorporates
other factors such as time horizons and
warming scenarios provided by the CSA.
The Head of Sustainability owns the climate
risk register, which consolidates all climate-
related risks and feeds into the broader climate
change principal risk within the Group’s
risk register.
Business continuity planning ensures that
risks, control measures, and their impacts are
integrated into the wider Group’s processes
and procedures. Climate-related risks are
discussed quarterly at each Risk Committee
meeting, where the Board reviews and
challenges the identified risks, assessing
their potential impact on the business
model, strategy, stakeholders, and overall
performance. Where necessary, climate-
related mitigation strategies and controls
are agreed upon and regularly monitored.
3. Strategy
3.1 Identified climate-related
risks and opportunities
Climate change is an ongoing issue and poses
increased risk into the future. Therefore, our
CSA focuses on three separate time horizons
to 2100 to assess current risk levels as well as
model short, medium and long-term risks, while
identifying opportunities. Our focus on
near-term horizons aligns with our enterprise
risk management and business planning cycles,
to drive strategic decision making in
the business.
• Short-term (1–5 years) – covers operational
planning and goal setting phases, aligned
to our business planning cycles.
• Medium-term (6–15 years) – allows us to
assess the impact beyond our immediate
business planning and prepare for upcoming
risks and opportunities.
• Long-term (16+ years) – enables a long-term
view of potential impacts of climate-related
risks and opportunities, acting as a powerful
driver for strategic decision making.
Three warming scenarios were used, 1.5°C,
2.0°C and 4°C. This enhances understanding
and resilience, given the uncertainty of future
levels of warming.
• 1.5°C – ‘Low carbon world’ limiting warming
to 1.5°C, in line with the Paris Agreement and
our SBT (SSP1 – RCP1.9/2.6. IEA SDS).
Transition risks are higher as the world
intensively mitigates emissions, whereas
physical risks are less frequent, less severe
and more akin to current climate.
• 2.0°C – ‘Middle of the road’ scenario
(SSP2 – RCP4.5. IEA 2DS).
• 4.0°C – ‘Hothouse world’ where global
warming exceeds 4°C (SSP5 – RCP8.5.
IEA STEPS). Physical risks become
increasingly frequent and severe, whereas
transition risks are lower due to the world’s
failure to transition to a lower-
carbon economy.
Our transition risk assessment considers
risks and opportunities related to market,
technology, policy/legal, and reputation risks.
Additionally, all manufacturing sites and key
farms have been individually assessed for
physical risks, covering both acute and chronic
risks, as well as various environmental factors.
The CSA includes heat stress, fire weather,
subsidence, water stress, drought, cold stress,
sea level rise, river floods, heavy precipitation,
high winds, pollution (water, land, and air),
biodiversity intactness, landslides, coastal
erosion, and land, freshwater, and ocean-use
change. Our supply chain has been assessed
for deforestation risk and physical risks
reducing availability of commodities.
TASK FORCE ON CLIMATE-RELATED
FINANCIAL DISCLOSURES (‘TCFD’)
CONTINUED
For ease of disclosure, some related physical
risks have been grouped to refine what is
considered material and leverage shared
mitigations. Landslides, coastal erosion and
land, freshwater, and ocean-use change were
assessed but identified as immaterial to the
locations reviewed.
The following transition risks were identified
as material:
Change in consumer preference – Conscious
about the environmental impact, consumers
may change their eating habits, reducing
demand for red meat products. Cranswick
is well-positioned to navigate this transition
by focusing on sustainable pork and poultry
production. These proteins have inherently
lower carbon footprints than red meat and,
through our innovative farming practices,
we continue to strengthen their credentials to
remain among the most responsible meat
choices available.
Cost of commodities – Feed is a key raw
material for our livestock, but commodity
cultivation can involve high-emission activities
such as inorganic fertiliser production and
deforestation. As global efforts to reach net
zero accelerate, and these activities are
reduced or decarbonised, input costs may rise
due to the investment required to transition to
lower-emission alternatives. To mitigate this, we
continue to work closely with our suppliers to
develop sourcing plans that secure raw material
supply from multiple sourcing options and
explore alternatives for key crops used in
animal feed.
Targets and regulation – Failure to
decarbonise, meet disclosure requirements,
or comply with increasing regulation may cause
reputational damage, leading to reduced
demand, investor interest, and talent attraction.
We continue to monitor progress to meet
evolving expectations and provide
transparent disclosures.
Packaging and waste – Pressure to reduce
packaging, especially plastic, and food waste
may increase, incurring costs to adapt products
and production practises. Significant progress
has been made to eliminate excess packaging,
improve recyclability, increase recycled
content, explore alternative materials,
investigate circular economies, and improve
on-site packaging segregation and recycling.
Carbon pricing – Carbon pricing may lead
to increased costs for carbon intensive inputs
(e.g. fossil fuels) but progress has been made
to reduce our reliance on fossil fuels, somewhat
mitigating carbon pricing risk. Prices may
also be applied to products we procure and
produce; however, we continually work to
reduce our carbon footprint, reducing
potential costs.
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TASK FORCE ON CLIMATE-RELATED
FINANCIAL DISCLOSURES (‘TCFD’)
CONTINUED
Flooding (including sea level rise, river
floods and heavy precipitation) – All locations
currently experience between half a day to two
days of more than 30mm rainfall annually, with
no significant changes predicted.
In general, most locations exposed to river
flooding are also exposed to sea level rise or
storm surges. However, river flooding was
assessed as more likely. For river flooding,
two manufacturing sites and three farms face
moderate 1-in-500-year risk, with no projected
change beyond 1.5°C. Additionally, seven
manufacturing sites and two farms face high
1-in-100-year risk, rising to nine manufacturing
sites with temperatures beyond 1.5°C.
For sea level rise and storm surges, the same six
manufacturing sites face moderate 1-in-500-
year risk, with no projected change beyond
1.5°C. For farms at 1.5°C, four sites face
moderate 1-in-500-year risk, decreasing to
two with additional warming. In contrast, three
farms currently face high 1-in-100-year risk,
which increases to six under warmer scenarios.
Therefore, as temperatures rise, additional
locations become vulnerable, potentially
disrupting operations, damaging infrastructure,
and posing risks to personnel and livestock.
To address these risks, flood protection systems
are in place at high-risk locations, and newly
constructed production facilities in Hull have
been designed with a minimum 600mm flood
clearance in their foundations. Sites also
operate and regularly review their emergency
response plans. In addition, we continue to
monitor our supply base to ensure we maintain
multiple supplier options, enabling continuity
in the event of extended disruption due to
flooding at key supplier locations.
Biodiversity – Current biodiversity intactness
levels are either high or moderate, with farms
generally supporting greater biodiversity.
While beneficial, this increases risk of impacting
local ecosystems and pressure to preserve
biodiversity. Habitat and biodiversity loss
can impact ecosystem services, food security,
agricultural yields – key dependencies
for Cranswick. To mitigate this, our farms
promote, restore, and monitor biodiversity
via wildflower buffer strips, regenerative
agriculture practices, AgriSound monitoring,
and collaboration with NGOs. Ongoing
alignment with the TNFD deepens our
understanding of nature-related risks,
opportunities, impacts, and dependencies.
Supply chain deforestation – Several suppliers
were identified as high or medium risk for
sourcing from deforested areas. The European
Union Deforestation Regulation (‘EUDR’) has
since strengthened our vigilance, and we
remain committed to sourcing deforestation-
free soya, beef, palm oil (‘RSPO’), and
packaging (‘FSC’ and ‘PEFC’).
For more details on our progress in addressing
supply chain deforestation, refer to pages
36 and 67.
Availability of commodities – Key
commodities were assessed for their future
climate suitability in growing regions, with a
focus on the impact of heat stress and water
scarcity on their availability.
Mediterranean olives and South Asian wheat
are most at risk, followed by Southeast Asian
palm oil, Australian wheat, and rapeseed.
Reduced production could disrupt supply and
raise prices. To mitigate this, we work closely
with suppliers to adapt to climate impacts and
diversify our sourcing for resilience. We also
support the Courtauld 2030 Water Ambition
and fund water stewardship projects
in Mediterranean high-risk regions, aiming
to alleviate water stress and support local
communities and ecosystems.
3. Strategy (continued)
The following physical risks were identified
as material:
Heat-related risks (including heat stress
and fire weather) – Currently, all locations
experience manageable levels of heat stress,
with less than five days annually in heatwave
conditions (>30°C). In the short-term, under
1.5°C and 2.0°C scenarios, manufacturing
sites remain unchanged, but four farms shift
into five to ten days. At 4.0°C, two London-
based locations also move to five to ten days.
In the medium to long-term, under 1.5°C,
no additional sites or farms increase in
exposure. At 2.0°C, nine manufacturing sites
and 32 farms face five to ten days of heat stress;
under 4.0°C, this rises to 11 manufacturing
sites and 46 farms.
Therefore, 1.5°C results in lower risk but
higher warming scenarios increase heat stress,
particularly in Southern England. Our farms
are more exposed than our factories, and
more vulnerable due to livestock temperature
sensitivity, potentially leading to higher
livestock mortality, lower productivity,
and increased cooling costs.
To address this risk, pig huts are insulated with
ventilation systems and temperature control,
while poultry sheds often use evaporative
cooling and misting to reduce temperatures
by 4 to 5°C. We also monitor weather closely,
transport livestock during cooler hours, and
feed pigs earlier to support more
efficient digestion.
Wildfire season length at all locations is
currently either less than five days or between
five and ten days. Over time, and under warmer
scenarios, some locations are projected to
increase to five to ten days. While fire and
smoke could impact facilities, livestock, and
personnel, local monitoring and site-specific
emergency plans help mitigate
our vulnerability.
Water scarcity (including water stress
and drought) – Our two London-based low
water use sites currently operate under high
water stress, while other locations experience
moderate or low levels. The CSA highlighted
that our Southern and East Anglian sites face
the highest water stress exposure, which is
expected to persist but not significantly
worsen. However, regardless of water stress
levels, seasonal variability in water supply
could result in water-related impacts during
the summer months.
In the short-term, under all scenarios, all
locations may experience either less than
twoor less than three months of drought.
In the medium to long-term, exposure remains
stable at 1.5°C but increases under higher
temperature scenarios. At 2.0°C, two
manufacturing sites and nine farms may
experience less than four months of drought;
at 4.0°C, this rises to seven and nineteen
respectively. Warmer scenarios also shift more
locations from less than two to less than three
months. Therefore, while the current drought
risk is low, it is projected to increase under
higher warming scenarios, potentially reducing
local water supply, triggering restrictions,
raising costs, and impacting local communities.
Water is essential for hygiene and livestock.
To mitigate these risks, poultry farms have
emergency water storage systems and some
utilise rainwater harvesting. Pig farms employ
nipple drinker technology to reduce water
consumption. Additionally, we continue
to implement and maintain soil stewardship
initiatives such as muck integration across
our farms to enhance long-term soil water
retention. Manufacturing sites are also
adopting water-saving technologies, including
water recycling, automated hygiene equipment
and pressure reduction systems.
14
Transition risks
Physical risks
Risk impact
Time horizon*
Short-term (1–5 years)
Medium-term (6–15 years)
Long-term (16+ years)
1
4
3
5
2
12
7
6
9
13
11
10
8
Insignificant
Severe
1
Change in consumer preference
2
Cost of commodities
3
Packaging and waste
4
Carbon pricing
5
Targets and regulation
6
Heat-related risks (including heat stress,
fire weather)
7
Water scarcity (including water stress
and drought)
8
Flooding (including sea level rise,
river floods and heavy precipitation)
9
High winds
10
Cold stress
11
Water, land and air quality
12
Biodiversity
13
Supply chain deforestation
14
Availability of commodities
15
Subsidence
Material climate risks
15
*
All risks are mapped to a 2˚C scenario.
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TASK FORCE ON CLIMATE-RELATED
FINANCIAL DISCLOSURES (‘TCFD’)
CONTINUED
3. Strategy (continued)
Water, land and air quality – Several locations
operate in areas currently exposed to reduced
water and land quality; however, air quality
remains high. The local authority ensures that
mains water is of ‘drinking quality’ and, where
farms or sites abstract water directly for
consumption, samples are analysed by an
accredited laboratory. We also have wastewater
treatment facilities (e.g. at our Eye and Watton
sites), livestock manure management systems,
and runoff abatement measures on farms.
We also collaborate with local authorities,
landowners, and industry partners to improve
soil and water quality.
High winds – All locations are currently
exposed to moderate (75–99 mph) or high
(100–125 mph) peak wind speeds, with East
coast farms most exposed. Despite future
warming, risks remain unchanged.
Mitigations include robust construction,
weather monitoring, and site-specific
emergency plans.
Cold stress – All locations currently experience
three to six consecutive days <0°C.
Despite future warming, risks remain
unchanged. Insulated huts, heating systems,
ample bedding, and regular pipework checks
minimise risks and maintain animal welfare.
Subsidence – Subsidence is possible across
all locations but does not worsen significantly
with warming nor time, and is mitigated by
robust construction and regular monitoring.
The following opportunities have also
been identified:
Diversifying product ranges – Red meat
demand may decline allowing pork and poultry
to gain market share due to their lower carbon
footprint, driving demand for our products.
Additionally, preferences may shift towards
alternative proteins and our continental
offerings, position us to capitalise on this
potential expanding market.
Increased self-reliance and falling energy
prices – The need to decarbonise electricity
presents opportunity to invest in on-site
renewables (e.g. solar), which decreases
reliance on the grid, operating costs, and
exposure to fluctuating energy prices.
Energy efficiencies – We focus on
operational efficiency and continue to invest
in sustainability initiatives, including those
focusing on energy reductions and the
rollout of new technologies and equipment.
This delivers long-term savings through lower
energy use and wastage.
Nature and biodiversity – TNFD, and the
growing spotlight on nature, supports the
consolidation of our nature strategy,
enhancing resilience and enabling carbon
savings. Deeper insight into nature will reveal
new opportunities and, despite many initiatives
already completed or ongoing, we recognise
further action is needed.
3.2 Impact of climate-related risks
and opportunities on strategy and
financial planning
Business planning, strategy, development,
and financial analysis are well-established
processes, with climate considerations fully
integrated. These processes depend not only
on actions within our control but also on
external factors, including climate change.
Climate-related risks and opportunities are
subject to various assumptions and are
expected to evolve over time. We must remain
aware of how these risks may change and
which impacts are likely to become 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. This is
incorporated into short-term business planning
and long-term strategy, investment options,
and our transition planning process.
Examples of past, current, and future key
strategic decisions can be found throughout
the ‘Our sustainability strategy’ sections
between pages 34 and 42. This work helps
mitigate the risks, and realise the opportunities,
identified within this TCFD report.
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
principal risks, including climate-related risks,
to the Group’s business model and ability
to deliver on strategy.
3.3 Resilience of the organisation’s strategy
Environmental issues and climate change have
the potential for significant impact on the
business. To build resilience in anticipation
of these issues, we continuously reassess
and manage climate risks and opportunities
in line with the Task Force on Climate-Related
Financial Disclosures (‘TCFD’). Details of past
scenario analysis can be found in previous
Annual Reports at www.cranswick.plc.uk.
We are committed to conducting new analysis
periodically as part of our ongoing risk
management improvement process.
Building upon historic continuous improvements,
this year our CSA was enhanced, including more
detailed transition risks and site-level physical
risks as well as three potential warming scenarios
as opposed to two.
This constant improvement to scenario analysis,
combined with continuous monitoring of risks,
mitigation of potential impacts to the business,
robust governance structure, and Second
Nature programme, ensures our strategy is
resilient. Regardless of high-carbon scenarios,
where physical risks are more significant, or
low-carbon scenarios, where transition risks
are more significant, the Board is confident
in the resilience of our Second Nature strategy
against the impacts of climate change.
4. Metrics and targets
Our environmental metrics can be found on
page 41. 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:
• SBTi-validated 50 per cent absolute
reduction in Scope 1 and 2 emissions
by 2030 with a baseline of 2019/20.
• SBTi-validated 50 per cent relative reduction
in Scope 3 emissions by 2030 with a baseline
of 2019/20.
Our SBTi targets are subject to change due to
SBTi FLAG. Please see pages 37 and 38
for respective details.
We also have shorter-term ambitions to drive
progress in key areas, such as a 5 per cent
year-on-year reduction in energy intensity
(kWh/tonnes sold), a 5 per cent year-on-year
reduction in water intensity (m3/tonnes sold)
excluding farms, and targets relating to
deforestation risk commodities (available within
our Group Deforestation Policy on our website).
These targets and commitments build on
the actions taken in previous years to generate
positive impacts across both the Group and
our 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 ('TNFD')
and their implications for our business.
We also plan to publish our transition plan,
developed using the UK Transition Plan
Taskforce ('TPT') recommendations,
within the next financial year.
A full mapping of our TCFD and CFD alignment
can be found at www.cranswick.plc.uk.
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
2024/25 Scope 1 emissions: 94,185 tonnes CO2e including non-mechanical
agricultural emissions (2023/24: 85,758 tonnes CO2e). Further disclosures and
discussion on greenhouse gas emissions can be found on pages 40 to 41.
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 a SBTi-validated 50 per cent absolute reduction in Scope 1
and 2 emissions by 2030, against a 2019/20 baseline. We have also committed to a
SBTi-validated 50 per cent relative reduction in Scope 3 emissions by 2030, against
a 2019/20 baseline. Finally, we have a voluntary ambition of Net Zero in our owned
operations, no later than 2040. These targets 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 38 and 39.
Energy management
(1) Total energy consumed,
(2) percentage grid electricity,
(3) percentage renewable
FB-MP-130a.1
2024/25 Absolute energy use: 543 million kWh (2024: 517 million kWh).
30 per cent of this was supplied from grid electricity (2024: 31 per cent).
30 per cent of the absolute energy use was renewable energy
(2023/24: 31 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: 2.88 million m3 (2024: 2.86 million m3). 1.0 per cent of this
was from an area of high baseline water stress (2024: 1.4 per cent).
Total water consumed: 1.62 million m3 (2024: 1.64 million m3). 0.3 per cent of this
was from an area of high baseline water stress (2024: 0.5 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. Details on water-related risks can be found with our TCFD disclosure on
pages 43 to 48. 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 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, 174,713m3 of water was reused using the new
treatment plant (2023/24: 200,832m3).
Our production facilities have been set a target to reduce water intensity by 5 per
cent year-on-year. We annually update our Water Policy, which pursues several
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 2024/25, there were zero incidents of non-compliance with water quality
permits, standards and regulations (2023/24: 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
69 per cent of pork produced on Cranswick-owned farms is certified to RSPCA
standards and 100 per cent to Red Tractor standards.
100 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.
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SUSTAINABILITY ACCOUNTING
STANDARDS BOARD (‘SASB’) DISCLOSURE
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
(2023/24: 19). 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 4.79
(2023/24: 3.68). 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 2 non-production facilities are certified to BRC.
(1) Number of recalls issued and
(2) total weight of products recalled
FB-MP-250a.3
During 2024/25, there was one food safety-related recall issued (2023/24: three)
totalling to 1.4 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.
On 3 December 2024, we received the positive news that the China export licence
at our Norfolk primary processing facility had been reinstated after a four-year
hiatus. A full range of products started being shipped to China from early January.
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 pig farming business in 2024/25 was 50mg/
pcu and across our poultry farms was 13mg/pcu.
Responsible Use of Medicines in Agriculture Alliance’s (‘RUMA’) target for 2024
is 73 mg/kg for pigs 25 mg/kg for poultry.
Workforce Health
and Safety
(1) Total recordable incident rate
(‘TRIR’) and
(2) fatality rate
FB-MP-320a.1
2024/25 Total recordable incident rate: 1.57 (2023/24: 1.58).
2024/25 Fatality rate: 0.00 (2023/24: 0.00).
Rates have been calculated in line with SASB guidance. For more information on our
accident data, see health and safety on pages 57 and 58.
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 57 and 58.
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 is produced
without the use of gestation crates (2023/24: 100 per cent).
96 per cent of total pork produced was without the use of gestation crates
(2023/24: 96 per cent). This scope covers our EU third-party suppliers.
We work closely with all our suppliers in order to improve welfare standards.
Percentage of production
certified to a third-party animal
welfare standard
FB-MP-410a.3
Cranswick-owned farms
69 per cent of pork produced is certified to RSPCA standards and 100 per cent to
Red Tractor standards.
100 per cent of poultry is produced in line with Red Tractor standards.
Wider supply chain
37 per cent of pork produced is certified to RSPCA standards (2023/24: 35 per
cent), 90 per cent to Red Tractor standards (2023/24: 90 per cent) and 20 per cent
to other recognised EU welfare schemes (2023/24: 20 per cent).
4 per cent of poultry purchased is certified to RSPCA standards (2023/24: 4 per
cent), 75 per cent to Red Tractor standards (2023/24: 75 per cent) and 25 per cent
to other recognised EU welfare schemes (2023/24: 25 per cent).
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 currently working with industry bodies such as the UK Soy Manifesto and
the Roundtable for Responsible Soy to improve transparency in our supply chains,
including sourcing regions. While we do not yet report the percentage of animal
feed sourced specifically from areas with High or Extremely High Baseline Water
Stress, increased visibility and traceability through these initiatives will enable us to
assess and monitor sourcing risks more accurately going forward.
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 (2023/24: <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
There are many actions we have already taken 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
and we have begun installing misting systems in our poultry houses. 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 home grown replacements to become more
self-sufficient in this area. Further discussions of risk can be found on page 36.
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OUR STAKEHOLDERS
INCLUDING SECTION 172(1) STATEMENT
As a Board, we continue to operate
in a balanced and responsible
way and make decisions for the
long-term success of the business.
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.
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 94 to 98.
OUR PEOPLE
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 employee concerns and
integrate their perspectives into our
decision making processes at a Group level.
How the Company engages
• We conduct regular staff surveys to gather
feedback and insights from employees.
• The Group maintains a dynamic ‘Flavour’
intranet site and newsletter, keeping
employees informed with updates, news,
and relevant information.
• We have an effective appraisal process in
place, facilitating structured discussions
and feedback sessions between employees
and their managers.
• Works councils serve as platforms for open
dialogue and collaboration between
management and employees. Currently,
20 of our sites have works committees,
with only three being unionised,
recognising a union or having 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
• We reviewed our pay review process,
increasing the average pay award
for employees in line with
inflationary pressures.
• We introduced the Buy As You Earn Share
Incentive Plan, enabling employees to
acquire ordinary shares in Cranswick plc
in a tax-efficient manner.
• We established the Next Generation
Committee to continuously assess
the opinions and attitudes of younger
generations, supporting current and
future decision making.
• We progressed individuals who completed
Cranswick’s graduate programme into
management positions and welcomed a
new cohort of graduates into the business.
• We entered into a partnership with
Meat Business Women, providing
Cranswick employees with unlimited
membership access.
• We celebrated dedication and commitment
within our workforce through the GEM
Awards, recognising individuals who
consistently go ‘over and above’ in their roles,
contributing significantly to our success.
Content within tinted boxes aligns
to Section 172(1) statement.
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 encompasses fostering a diverse,
equitable, and inclusive workplace, providing ample opportunities for development,
and ensuring fair compensation for all employees.
ENGAGEMENT AND ACTIONS (S.172)
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We are committed to building a diverse,
skilled and motivated workforce. It is the
dedication and expertise of our employees
that drives our business, and we strive to
cultivate an inclusive culture in which they
can develop and grow.
Championing talent
We want to be recognised as an employer of
choice, ensuring we can compete effectively
in attracting and retaining top talent. We are
committed to championing and nurturing the
best people, while leading our sector in areas
such as pay, working conditions, professional
development, health and safety, inclusivity,
and the overall wellbeing of colleagues across
the Group.
Supporting careers at Cranswick
We know that people value professional
and career development when selecting
an employer, so we are always looking for
ways to improve the training and upskilling
initiatives we offer.
To help us recognise and nurture talent,
and to maintain a strong pipeline of skilled
professionals ready to take on leadership
roles, we established our Operations Talent
Programme (‘OTP’) in 2023. This 18-month
development journey is designed to recognise
and nurture talent within our operations
teams, preparing them to take on further
management roles and drive the future
success of our factories. Throughout the
programme, participants engaged in a variety
of workshops, mentoring, hands-on projects,
and leadership development training, all aimed
at enhancing their skills, knowledge, and
understanding of operational excellence here
at Cranswick. During the year, the first cohort of
11 participants graduated from the programme
in September 2024, and 22 new delegates have
joined in 2025.
We deliver our training through Cranswick
Core, our recently revamped online platform,
which now offers a more user-friendly interface
and features over 309 courses tailored to all
tiers and functions of the business. This year,
more than 84,400 courses were completed
through the platform, equating to an average
of 10 training hours per employee on the
Cranswick Core alone, without taking into
account procedural and health and safety
training delivered on the factory floor.
The improved Cranswick Core platform
empowers colleagues to take control of their
professional growth, and since its launch in
2020, over 334,600 courses have been
completed. Over the past 12 months,
we have also:
• launched a new Early Talent mentoring
platform, whereby a cohort of 21
experienced mentors were paired with
individuals on early talent programmes
within the business;
• enrolled 252 colleagues on our Management
Training Programmes;
• created a new Technical Academy portal
on the Cranswick Core, to allow all
colleagues access to a suite of bespoke
upskilling sessions;
• completed a full update of all courses,
incorporating AI-driven translations in both
text and voice formats, while refreshing and
streamlining content to ensure it remains
concise and relevant; and
• redesigned the Cranswick Induction
Programme featuring an enhanced ‘Second
Nature’ section to deliver consistent and
up-to-date messaging on sustainability.
CRANSWICK
GEM AWARDS
Celebrating the achievements of our
colleagues is an important part of contributing
to a positive workplace at Cranswick.
Our fourth annual ‘Going the Extra Mile’
(‘GEM’) Awards in July 2024 brought together
colleagues who had gone above and beyond
their job description during the year.
There were 55 nominations from across the
business – all colleagues who ‘go the extra mile’
every day to help those around them, showing
innovation and courage but also great kindness
to others.
This year’s winner was Karthikeyan, a Continuous
Improvement Graduate from the Gourmet
Sausage division, who was nominated due to his
excellent initiatives across sites that demonstrated
key analytical and communication skills that have
been extremely beneficial to both the business
and the colleagues that work with him.
Karthikeyan’s efforts exemplify Cranswick’s
values and the commitments we make to each
other. We are grateful to Karthikeyan and all
our employees for the invaluable contributions
they make.
We look forward to marking Cranswick’s
50th anniversary year at our GEM Awards in
2025, when we are planning an event that will
be bigger and better than ever before.
OUR STAKEHOLDERS
CONTINUED
OUR PEOPLE CONTINUED
BEST MEAT
PROCESSING
APPRENTICE
During the year, the Institute of Meat and
the Worshipful Company of Butchers came
together to celebrate the future of the industry,
recognising the achievements of apprentices
at their annual prize-giving ceremony.
Among the honourees was Luca McDougall,
a Butchery Apprentice from Cranswick
Country Foods, Preston, who was awarded
the title of Best Meat Processing Apprentice.
Luca, who is completing his qualification
through Bishop Burton College, received
his award in front of more than 140 guests.
The prestigious ceremony, held at Butchers’
Hall in London, saw each winner receive a
year’s free membership to the Institute of Meat,
alongside a certificate and cash prize,
celebrating their outstanding contributions
to the butchery profession.
Attracting talent
Cranswick offers a comprehensive range
of graduate recruitment and apprenticeship
programmes designed to attract and develop
talent across various departments.
In 2025, we demonstrated our commitment
to nurturing early careers talent through active
participation in 55 early careers recruitment
events. Showcasing the diverse opportunities
within our industry, these engagements
included the following:
• Apprenticeship, Graduate, and Placement
Fairs: directly engaging with students
to highlight the career paths available
in food manufacturing.
• Business-specific projects: collaborating
with schools, colleges, and universities to
create tailored projects that demonstrate
the practical application of the work we do.
• Early careers talks and presentations:
offering insights into our industry and career
opportunities with Cranswick through
tailored, interactive and informative sessions.
We have expanded our efforts to attract
and develop emerging talent through a
range of initiatives, including placement
programmes, work experience opportunities,
and participation in graduate fairs.
Our collaboration with universities has grown
beyond recruitment events to include active
involvement in curriculum development,
strengthening our connections with future
talent. To enhance engagement, we have
refreshed our graduate content and
leveraged social media, including TikTok,
to reach students more effectively.
This year, we recruited 14 more graduates,
taking the total to 102 since 2013, with 37
of these individuals now promoted into senior
and full-time roles across the business.
We continue to take a strategic approach
to addressing skill gaps across key business
areas, ensuring a strong pipeline of talent.
Our success in attracting new recruits into
operations – particularly through school
engagement initiatives – has not only
strengthened our workforce but also inspired
other departments to explore similar
approaches. Additionally, we have built strong
partnerships with providers such as Sheffield
Hallam University, enabling us to develop talent
through apprenticeships. Currently, we have
more than 190 apprentices gaining valuable
experience in areas such as engineering, IT
and supply chain, reinforcing our commitment
to nurturing future industry professionals.
We attended the Schools Food and Farming
Days at Driffield Showground, where school
children had the opportunity to discover more
about the breadth of career opportunities in
the food industry. We also engage with schools
through our ‘World of Work’ initiatives,
including our ‘Teacher Encounter Days’,
during which teachers receive tours of our
state-of-the-art facilities, showcasing not just
the various stages of food production but also
the wide range of early career opportunities
available to school, college, and
university leavers.
Shaping the future
We play a significant role in the Butchery
Employer Trailblazer Group (‘BETG’),
a coalition of businesses that advises on,
develops, and maintains apprenticeship
standards in the meat industry. The BETG
ensures that key apprenticeships, such as
Level 2 Butcher, Level 3 Advanced Butcher,
and Level 2 Abattoir Worker, provide
comprehensive training and skills development.
As an active member of the trailblazer group,
we work alongside a mix of employers to shape
apprenticeship programmes, ensuring they
align with industry needs. This year, we will
take on a leadership role by chairing the
group. In addition to our work with BETG,
we have been directly involved in developing
the new Level 4 Farm Manager apprenticeship
and contributing to the review of the Meat and
Poultry apprenticeship standard.
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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 launched the Next Generation
Committee, a platform dedicated to capturing
the opinions and perspectives of younger
generations, ensuring their voices play a
key role in shaping our business decisions.
With over 20 per cent of our workforce
aged 30 or under, and a growing number of
apprentices and graduates joining us each year,
it is more important than ever to foster equal
representation for young employees.
By engaging directly with our younger
workforce, we aim to create a more inclusive,
forward-thinking business that reflects the
needs and values of both our employees
and future consumers.
OUR STAKEHOLDERS
CONTINUED
OUR PEOPLE CONTINUED
Addressing the skills gap
In response to ongoing labour shortages
in our industry, we identified an opportunity
to recruit local workers from volatile industries,
where job security has been uncertain.
By recognising the transferable skills of these
workers, we have successfully welcomed
them into our workforce, offering secure
employment, competitive wages, and
structured training to develop them into skilled
butchers – an area that remains a significant
recruitment challenge across the industry.
Since September 2024, we have integrated
30 new trainee butchers into our butchery
department, all whom have had the opportunity
to advance through various training and
development schemes to become a skilled
butcher. This initiative has not only helped
address labour shortages but has also created
long-term career opportunities, improved
retention rates, and strengthened our talent
pipeline for the future.
The Group’s average employee turnover rate
has declined from 2.87 per cent in the prior
year to 2.62 per cent in FY25, due to initiatives
implemented at both site and Group levels.
Employee benefits
Celebrating the achievements of our
colleagues is an important part of contributing
to a positive workplace at Cranswick. Our
‘Going the Extra Mile’ (‘GEM’) Awards bring
together colleagues who have gone above and
beyond. For more information see page 54.
Colleague successes and achievements are also
recognised on a more regular basis through our
intranet site, Flavour, which is integrated into
our online Feed Your Wellbeing Hub.
Employee benefits
We are committed to making a real difference
in our colleagues’ lives by offering a
comprehensive and impactful benefits package
that supports their financial, mental, and
physical wellbeing.
Recognising the ongoing cost-of-living
challenges, we enhanced optional employee
pension contributions to 10 per cent last year,
and we were pleased to see a strong uptake.
Alongside our existing Save As You Earn
(‘SAYE’) Share Incentive Plan, we introduced
the Buy As You Earn (‘BAYE’) Share Incentive
Plan, enabling employees to acquire ordinary
shares in Cranswick plc in a tax-efficient way.
Grocery Aid continues to play a vital role in
financial wellbeing, with more colleagues than
ever accessing financial grants and essential
support, resulting from increased awareness
across our sites.
To provide even greater access to benefits,
we relaunched the Feed Your Wellbeing
Hub in late 2024 with a fresh, interactive,
and user-friendly design. The uptake has
been positive, with 72 per cent of employees
engaging with the platform – driven by exciting
roadshows and dynamic communications
that have brought the benefits to life.
Through Canada Life, colleagues and their
families benefit from 24/7 support, including
confidential counselling, online GP services,
and translation assistance, ensuring help is
always within reach. We are also championing
physical health by providing gym memberships
for employees, while supporting young people
through our partnership with the Tommy
Coyle Foundation.
We have renewed our partnership with
the Meat Business Women organisation to
provide support, development and mentoring
opportunities to all women in the Group.
Every colleague at Cranswick is eligible
to become a member of Meat Business
Women free of charge, giving them access
to a library of resources, including mentoring,
masterclasses, and networking opportunities.
Workplace wellbeing
We continue to prioritise colleague health and
wellbeing, with 181 mental health champions
across our sites, supported by 142 mental
health first aiders who are the trained point of
contact to offer initial support to colleagues
experiencing mental health issues, promoting
wellbeing, and signposting to professional help
when needed. Since FY21, 14,322 positive
mental health at work courses have been
completed including 3,734 this year.
We also offer bereavement training, providing
people with the skills to help them cope with
bereavement, alongside personal and practical
support through our ongoing partnerships
with GroceryAid and the Butchers’ & Drovers’
Chartered Institute.
Diversity and inclusion
We have a dedicated steering group that
drives our Diversity, Equity and Inclusion
(‘DEI’) strategy and is responsible for making
progress on our DEI goals and aspirations.
Our Employee Non-Executive Director,
Yetunde Hofmann, has a specific role to
develop a two-way conversation between
the Board and colleagues around the business.
Yetunde specialises in diversity, inclusion
and culture, and regularly attends town
hall events and holds one-to-one meetings
with employees.
We have dedicated training and education
that supports our DEI strategy, with 2,676
colleagues completing our DEI training
programme this year.
We are committed to fostering a diverse
and inclusive workplace through a range of
meaningful initiatives that drive positive change
across our business. As part of our Food
Business Partner Signatures, we are actively
working to promote gender equality through
strategic partnerships. Our commitment to
broader diversity efforts is reinforced by
Cranswick becoming a signatory of the Race
at Work Charter, an initiative by Business in
the Community (‘BITC’) committing us to
various initiatives that will promote diversity
and inclusion within the workplace.
The Charter represents a significant step
towards creating fairer and more inclusive
workplaces, ensuring that all employees have
equal opportunities to succeed.
Collaboration is key to driving progress, and
through our DE&I Network, we engage with
industry peers to share ideas, mentor talent,
and champion inclusion. These initiatives
reflect our ongoing commitment to building
a workplace where everyone feels valued,
respected, and empowered to thrive.
This year’s Group-wide employee survey
saw a 1 per cent increase in response
rate to 80 per cent. The survey also
highlighted continued progress in
diversity and inclusion, demonstrating
the positive impact of our ongoing
initiatives in these areas.
80%
2024: 79%
Health & safety
Our commitment to zero accidents and
eliminating work-related illnesses is at the heart
of our safety culture. We 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 comply with all relevant health
and safety (‘H&S’) standards and regulations
and constantly seek to improve our procedures.
Three-year H&S strategy
We have completed the first year of our
three-year health and safety (‘H&S’) strategy,
further aligning our sites with overarching
Group policies and procedures and making use
of annual site assessments to measure our
progress and the actions taken. This has made
keeping safe easier for our people and given
them a better understanding of how we do
things safely, though we recognise that our new
sites face additional onboarding challenges that
may require tailored solutions.
We remain committed to reviewing industry
and supply chain developments, and we
encourage colleagues to share their safety risk
reduction efforts. Our Gourmet Pastry team
won the Risk Reduction by Design Award for
their innovative manual handling safety
improvements at the MSD Design Awards
2024, and we continue to invest in the best
available technology and behavioural safety
to reduce the safety risk at our sites.
Automation
Technology is playing a key role in
transforming our safety culture and driving
exciting improvements to reduce risk across
the business. This year, we have introduced
cutting-edge camera systems, glove-sensing
technology, vacuum lifters, and manual
handling lifts, significantly boosting both
workplace safety and efficiency.
We are constantly innovating to minimise
risk through smart design and automation,
ensuring our workforce is always protected.
One standout initiative has been the
rollout of projector signage to more sites,
offering a revolutionary approach to safety.
This innovative system uses light projections
to create clear, visible safety markings on the
ground, improving awareness and visibility.
At our Valley Park site, we have also
introduced VibraTag devices, which alert both
pedestrians and forklift drivers when they
are in close proximity, actively preventing
accidents and creating a safer, more connected
working environment.
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CONTINUED
Accident rates
Our approach to continuous improvements
has led to strong safety performance this year.
Reporting of Injuries, Diseases and Dangerous
Occurrences Regulations (‘RIDDOR’) incidents
have decreased by 27 per cent, significantly
surpassing our policy target of 10 per cent,
with efficient investigations and timely
corrective actions contributing to this success.
However, total accidents remained in line with
prior year.
Proactive hazard spotting across the Group
increased by 14 per cent year on year, however,
near misses increased by 12 per cent.
Our newly introduced ‘Step Back and Take 5’
assessments are significantly reducing
accidents at participating sites. The initiative
encourages our H&S managers to assess
site layouts, working environments and
housekeeping to better evaluate risks
and determine if safety protocols can
be improved upon.
We hold a monthly Risk and Opportunities
Forum where representatives from our sites
share learnings and successful practices,
fostering a culture of collaboration and
continuous improvement. Networking with
organisations like the Chill Food Federation
also allows us to share best practices across
the food sector.
A recent deep dive audit assessed our H&S
systems and processes, identifying only minor
issues but offering positive feedback overall,
reaffirming our strong commitment to safety
and continuous improvement across all levels
of the business.
Compliance and audits
The use of Quor for all H&S reporting has
made our processes entirely paperless,
allowing us to gather accurate, real-time data,
including for risk assessments. This transition
has enabled timelier and more precise
reporting, with streamlined data analysis
driving continuous improvement.
Our commitment to green audits remains
strong, with 76 per cent of sites achieving a
score of over 90 per cent. At the year-end, 19
sites were accredited to the ISO45001 Health
and Safety management system. We have
implemented stricter site audits to ensure full
alignment with standards, and additionally,
we conduct gap analysis audits to support the
smooth onboarding of new sites, ensuring that
all locations meet our high H&S expectations.
Training and upskilling
This year, we have focused on making training
more interactive and engaging, ensuring that
all sites benefit from innovative training systems
designed to improve efficiency. As part of this,
we have developed bespoke training videos
tailored specifically to our manufacturing sites,
which include site-specific content.
These videos have been integrated into our
induction process to ensure that consistent
and relevant messaging is delivered to new
employees, helping them understand the
unique safety requirements of each site.
A key focus of Cranswick’s three-year H&S
strategy is behavioural safety, which is an
important part of transforming our Company
culture. At the heart of this initiative is the
creation of Cranswick’s own ‘B-Safe’
behavioural safety programme, designed to
promote safety awareness and responsibility
at all levels. As part of this initiative, our senior
leadership team is conducting maturity
assessments, using a bespoke staff survey
to evaluate safety practices across our sites.
These assessments help us identify risky
behaviours and shape focused actions to
standardise safety practices across the Group.
A benchmarking survey was launched at the
end of the year and will allow us to further refine
our approach and measure progress in creating
a uniform safety culture across Cranswick.
GOURMET PASTRY
WINS PRIZE
We were delighted to see our Gourmet Pastry
team win the risk reduction by Design Award
at the MSD Design Awards 2024, sponsored
by the UK’s Health and Safety Executive (‘HSE’)
and the Chartered Institute of Ergonomics and
Human Factors.
The new hopper topper implemented by the
team has significantly reduced manual handling,
eliminated strain on the lower back and wrists,
and improved overall safety for our operators.
Previously, operators manually decanted
18kg trays of pie filling, causing awkward
postures and repetitive strain injuries. The new
system involves the use of a pump to transfer
filling directly into the hopper, thus eliminating
the need for lifting buckets and climbing steps.
OUR PEOPLE CONTINUED
CUSTOMERS AND CONSUMERS
Key actions taken
• We invested in new product development
to maintain competitiveness and address
evolving consumer trends.
• We focused on integrity audits within
our supply chain to ensure assurance
to customers and consumers regarding
the authenticity of materials used in
our products.
Why we engage
Regular engagement allows us to build
trustworthy and long-lasting relationships and
to deliver innovative, high-quality products.
How the Company engages
• We foster cross-functional collaboration
through our product development, technical,
agricultural, and sales teams to maintain
consistent and responsive communication
with customers.
• We gather valuable insights by conducting
online surveys, enabling customers to share
feedback directly and conveniently.
• We strengthen relationships through in-store
interviews, which provide opportunities for
face-to-face engagement and meaningful
conversations with customers
and consumers.
• We maintain high standards through regular
customer audits, both scheduled and
unannounced, reinforcing transparency
and trust.
• We facilitate targeted discussions by hosting
focus groups, allowing us to collect detailed
feedback on specific products and services.
How the Board engages
• The Board receives monthly updates on
market insights to inform category plans
and new product pipelines, aligning with
consumer needs.
• Our Chief Commercial Officer (‘CCO’)
maintains regular communication with key
customers and provides Board updates
on progress to date and any issues.
• The Board reviews updates on supply chain
risk, identifying potential impacts on service
levels, and exploring opportunities for
collaboration with customers to mitigate
any adverse effects.
• We maintained high service levels by
ensuring timely order fulfilment and
consistently meeting quality expectations.
• We upheld a strong reputation as a
high-quality manufacturer by prioritising
food safety and health and safety standards.
• We invested in automation and implemented
factory performance improvements to enhance
efficiency and operational capabilities.
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.
ENGAGEMENT AND ACTIONS (S.172)
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OUR STAKEHOLDERS
CONTINUED
Who we serve
Retail customers contributed the majority
of our revenue (79 per cent in FY25) primarily
through their own-brand ranges. Retail has
been our strongest growth area this year,
reflecting improving market conditions, with
October recording the highest level of retail
sales since the pandemic’s panic-buying period.
Consumers benefitted from increased choice,
quality, and innovation, particularly through
premium offerings like Finest and Taste the
Difference brands. These, combined with
‘price match’ initiatives and compelling loyalty
card promotions, played a significant role
in driving market growth.
Manufacturing sales, which accounted for
12 per cent of our revenue, declined by
2 per cent, as more raw material was allocated
internally for pig meat and poultry production.
The out-of-home food service market continues
to contract, reflected in a 3 per cent decrease
in the food service business this year, despite
new business wins. We remain committed
to investing in capacity and expanding our
product portfolio to meet evolving customer
demands, while delivering genuine value
to consumers.
Exports represent 4 per cent of our
revenue and the outlook is promising following
reinstatement of the China export licence
at our Norfolk primary processing facility
after a four-year suspension.
Quality
We take pride in our reputation as a high-quality
manufacturer, with a steadfast commitment
to food safety and health standards.
Food quality and integrity remain top priorities
for our customers, and the supply chain
mapping undertaken by our procurement
team has provided greater visibility into our
supply chain. With supply chain resilience
becoming increasingly important to customers,
our transparent reporting on progress positions
us as a trusted and reliable partner.
The Cranswick Manufacturing Standard
(‘CMS’), implemented across all of our
production sites, ensures automatic compliance
with any new customer specifications
or standards. This allows us to consistently
reassure our customers of the safety,
traceability, quality and provenance of our
raw materials and manufacturing processes.
Our dedication to delivering exceptional
service was recognised this year with the
prestigious ‘Best Availability’ award from a
key customer, awarded for maintaining service
levels above 99.8 per cent. This award
highlights the commitment our teams show
to outstanding service and product quality,
ensuring we consistently meet the needs
of our customers.
Product innovation
We have placed a strong emphasis on
Cranswick’s unique differentiators by focusing
on innovation, authenticity and flavour,
particularly through our premium product
offerings. Throughout the year, Cranswick’s
chefs have developed an innovative array of
premium products, earning recognition with
numerous awards. Notably, our M&S Master
Grill Tomapork was named the Best BBQ hero
for entertaining (meat or fish) in the BBC Good
Food Summer Taste Awards.
This year also saw an exciting collaboration
with renowned chef Tom Kerridge as part
of his new Gastropub range, where our
products took centre stage. From heritage
Duroc pork to our heritage gold ten-bone rib
roast – offering tender, succulent pork with
perfect crackling every time – we continue
to deliver exceptional flavour and taste for
every occasion.
Our commitment to exceptional products was
particularly evident during the record-breaking
Christmas trading season. In addition to
supplying a record 78 million pigs in blankets
and winning the Good Housekeeping award
for the best pigs in blankets, the substantial
investment in our asset base coupled with
product innovation allowed us to drive growth
in dedicated Christmas lines, with new products
such as double-wrapped pigs in blankets and
robot-packed charcuterie triple packs.
CUSTOMERS AND CONSUMERS CONTINUED
Health and sustainability
Health-focused messaging has been a central
driver of our product development, with a
strong emphasis on protein as a vital part of
a balanced diet. Consumers are increasingly
prioritising healthier food options and seeking
to reduce their consumption of ultra-processed
foods (‘UPFs’).
Our pork and poultry product ranges provide
more natural, minimally processed options
that are rich in essential vitamins and minerals.
We are placing particular emphasis on
communicating the health benefits of our
products to consumers, and have already
made significant progress in simplifying
and improving the ingredient declarations
required for our products.
Innovative solutions
We are dedicated to driving progress
with innovative solutions that address the
challenges faced by both consumers and
retailers. A key priority is extending the shelf
life of fresh and chilled products. This year,
we have partnered with our retail clients
to explore natural preservation methods using
beneficial bacteria, with the goal of extending
shelf life by up to 50 per cent. These trials
demonstrate our commitment to delivering
advanced, sustainable solutions that meet
the evolving needs of the market.
Reducing food waste is a shared objective,
and we are leading the charge with
cutting‑edge technology. By integrating
AI and machine learning, we have deployed
thermal imaging cameras to inspect seal
integrity on production lines. This allows us
to identify defective packs before they reach
supermarket shelves, dramatically reducing
store waste.
Early trials have yielded positive results, and we
are now collaborating with retailers to expand
this technology across additional sites.
In addition, we are revolutionising food
quality control through the use of virtual
labs for real-time microbiological monitoring.
By combining digital tagging and traceability
technologies, we ensure that food remains
fresh throughout the entire supply chain,
all without compromising the packaging.
This breakthrough not only helps preserve
the quality of products but also contributes
to reducing waste at every stage of the process.
Our groundbreaking work has earned us the
prestigious Supply Chain Excellence Award
at the 2025 Food Manufacturing Excellence
Awards, recognising our unwavering
commitment to innovation and sustainability.
We are not simply adapting to the industry;
we are leading it, continuously setting new
standards in food technology and sustainability.
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PRODUCERS AND SUPPLIERS
Key actions taken
• We strengthened supply stability and food
security by expanding farming operations
that supported resilient, UK-based sourcing.
• We improved supply chain visibility
by mapping our direct and indirect meat
suppliers and began extending this approach
to ingredient suppliers.
• We supported shared progress by engaging
regularly with suppliers to understand their
sustainability journeys and align on
common goals.
• We promoted innovation by launching
nature-based supply chain solutions
that enhanced carbon sequestration
and biodiversity.
• We continued to undertake supplier audits
to ensure the safety, traceability, quality
and provenance of raw materials and
ingredients, while working with suppliers
to maintain animal welfare standards.
• We maintained operational resilience
by staying in close contact with critical
suppliers to identify emerging risks and
ensure appropriate mitigations were
in place.
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
common 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
• We engage suppliers through regular
surveys to gain insights into their
experiences and satisfaction, ensuring
open and constructive dialogue.
• We foster transparency and collaboration
by using Sedex, a shared platform for
ethical and responsible sourcing data.
• We strengthen partnerships by
participating in industry events and
forums that enable collaboration,
networking, and shared learning.
• We build trust and ensure standards by
conducting routine audits and site visits,
reinforcing expectations and promoting
continuous improvement.
• We promote ethical and sustainable
practices through clear supplier policies
that define standards and responsibilities
across the supply chain.
How the Board engages
• The Board maintains oversight of Group
performance and supply chain matters
through regular discussions and updates
at each meeting.
• It remains informed of supply chain-related
risks via updates from the Audit and Risk
Committee, ensuring alignment with the
Group’s risk profile.
• The Board reviews reports on raw material
sourcing, anticipated challenges, and
mitigation actions to support continuity
and resilience
• It oversees progress against our
Responsible Sourcing strategy and
commitments through regular reporting
from the ESG Committee.
OUR STAKEHOLDERS
CONTINUED
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.
ENGAGEMENT AND ACTIONS (S.172)
We collaborate with an extensive network
of producers and suppliers to guarantee
the reliability of food supply and create
greater reliance throughout the supply chain.
These partnerships underpin our shared
commitment to trust, nutrition, quality, and
excellence, while also embracing innovative
low-carbon manufacturing practices.
Supply chain resilience
Amid global climate threats and geopolitical
tensions, ensuring the resilience and security
of our supply chain remains a top priority.
Our Supply Chain Resilience Team meets
quarterly to discuss emerging issues, address
potential vulnerabilities and implement
proactive contingency measures. This team
brings together members from our technical,
purchasing, and IT teams, ensuring we take
a comprehensive approach to analysing our
supply chain. Regular team meetings ensure
timely issue resolutions, reinforcing our strong
position with customers who increasingly
prioritise supply chain resilience.
During the year, we have successfully mapped
direct and indirect meat suppliers using the
Quor supply chain mapping system, and we are
now concentrating on ingredient suppliers.
This new mapping system, which replaces
the previous spreadsheet-based method,
has received excellent feedback from retailers
for enhancing supply chain visibility, and has
positioned us to enable more rapid responses
to industry alerts.
We also actively participate in Sainsbury’s
Emerging Risk Forum, a collaborative platform
where industry leaders come together to address
and manage emerging risks. Through our
involvement in the forum, we have been able to
share insights and best practices with others,
while gathering valuable insights and information
on emerging trends and potential risks.
Responsible procurement
Ensuring food integrity and safety goes beyond
our operations and reaches deep into our
supply chains, encompassing social, ethical,
and environmental factors. We understand that
acting responsibly as a business is only possible
if our suppliers uphold the same standards.
Cranswick’s commitment to ethical
procurement not only strengthens our supply
chain but also ensures that we meet the
evolving expectations of our stakeholders.
We hold our suppliers to high standards, which
are detailed in our comprehensive supplier
policy. This includes adherence to the Ethical
Trading Initiative (‘ETI’) Base Code on labour
practices, participation in Sedex Member
Ethical Trade Audits (‘SMETA’) if operating
in high-risk countries, sourcing certified palm
oil and soya through reputable certification
schemes, and measuring greenhouse gas
emissions. For more information, please refer
to our Group Sustainable Procurement Policy
at www.cranswick.plc.uk.
We also expect our suppliers to strengthen
their climate action commitments by measuring
Scope 1, 2, and 3 greenhouse gas emissions.
To support this, we have distributed ethical
questionnaires throughout the year, working
closely with suppliers to assess their Scope 1
and 2 data, which helps improve the accuracy
of our Scope 3 reporting.
Supply chain assurance
Having increased the frequency of supplier
audits last year, we have now placed even
greater emphasis on food integrity in response
to a recent industry incident of mislabelled
Brazilian beef. We prioritise robust traceability
and the authenticity of our ingredients by
applying innovative technology. For example,
we are verifying the authenticity of herbs and
spices used in our production process using
a handheld device developed by BIA Analytical
in partnership with Queen’s University.
Maintaining our commitment to food safety is
paramount, which is why we have adopted the
Cranswick Manufacturing Standard (‘CMS’),
our comprehensive quality management
system that complies with British Retail
Consortium Global Standards and major
retailer requirements. Now updated to version
two, the CMS incorporates learnings from
audits completed in the previous years.
Currently 877 out of our 933 total suppliers
are registered on Sedex, including all direct
suppliers and 86 per cent of indirect suppliers
(FY24: 88 per cent).
During the year, 1,488 supply chain audits were
carried out to assure the safety, traceability,
quality, and provenance of the raw materials we
use. This compares to 687 audits in the previous
year and is primarily due to new farms and the
additional farm audits conducted during
the year.
Internal compliance
Our internal auditing processes conform
to our own Cranswick Manufacturing Standard
(‘CMS’), as well as ISO14001, ISO45001
and ISO50001 quality standards.
17 of our production sites and 2 non-
production facilities were audited against
the BRCGS Food Safety Standard, with one
achieving an A rating, one receiving an AA
rating, 14 earning an AA+ rating, and three
attaining an A+ rating.
Our goal is to remain transparent with our
customers, sharing the challenges faced and
the actions taken to mitigate the impact on their
business, while also providing regular updates
and proactive solutions to ensure continued
support and minimal disruptions.
Internal governance
We carry out proactive intelligence audits,
as well as targeted audits at specific sites,
primarily to bolster the site support required
and promote improvements across the Group
through shared learnings of best practice.
At Group level, we have a Food Safety and
Quality Committee, bringing together our
heads of department for bi-monthly meetings,
while our individual sites host their own local
committees dedicated to enhancing food safety
practices at their respective locations.
During the year, we introduced structural
changes to our governance framework,
leading to procurement, sustainability
and technical teams working together more
closely than ever. This has enabled earlier
issue detection, timely decision making,
and more efficient action taking on major
non-conformances.
Upskilling our teams
Our Technical, Sustainability, and Compliance
teams undertake regular training, including
monthly technical upskilling sessions.
Colleagues receive training in areas such as
auditing, inspection, food hygiene, safety and
traceability, as well as technical, ethical, health
and safety issues, and animal welfare.
To strengthen our internal capabilities further,
we have appointed a Supplier Audit Manager,
who is responsible for managing audits, closing
non-conformances, and tracking certifications.
We have also implemented new auditor-friendly
processes, allowing teams to focus more on
issue resolution than on documentation.
Animal welfare
At Cranswick, we are unwavering in our
commitment to continuously improving
animal health and welfare. Our industry-leading
assurance standards are backed by a vertically
integrated supply chain, and we regularly
review and update our practices, incorporating
new technologies and feedback from audits
to enhance welfare outcomes that benefit
both animals and the broader supply chain.
Animal welfare is fundamental to our
Second Nature Strategy, as highlighted by
our consistent ranking within the higher tiers
of the Business Benchmark on Farm Animal
Welfare (‘BBFAW’) for six consecutive years.
By combining rigorous standards, data-driven
assessments, technological innovations,
and strong partnerships, we are resolute
in our determination to uphold this benchmark
in the years to come.
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During the year, Cranswick has participated
in the Farming Assurance Review, which was
jointly commissioned by the National Farmers’
Union (‘NFU’) and the Agriculture and
Horticulture Development Board (‘AHDB’).
Read more about the Farming Assurance Review
on page 67.
Caring for our pigs
Our integrated pig farms are strategically
located near our processing sites to reduce
transportation times and minimise stress on
the animals. Investing in our integrated supply
chain allows us greater control over key welfare
factors. We currently have pigs reared across
a combination of premium outdoor and
high-quality indoor units.
Our pig lairages are designed to cater to
the pigs’ natural curiosity and behaviours,
creating peaceful, quiet spaces that are
overseen by a full-time vet.
During the year, we have also increased
investment in flexible farrowing systems to
provide more space and better conditions for
sows and piglets during the farrowing process.
As we expand the flexible farrowing system
across other breeding sites, we will continue
to advise and support the industry in the
development of an indoor plus assurance
standard for flexible farrowing.
We place a strong emphasis on outdoor
rearing for our pig herds, recognising that
this approach also supports the scaling of our
regenerative farming initiatives. One of our
outdoor pig units serves as a biodiversity
indicator farm for a major retail customer,
showcasing the positive impact of sustainable
farming practices on local biodiversity.
Each year, we update the Cranswick Pig
Producer Standard, which emphasises the
assurance standards we expect, guided by the
‘five freedoms’ concept from the Farm Animal
Welfare Council.
Our risk rating system for producers, based
on health and welfare outcomes, facilitates
prompt and focused audits. These thorough
assessments, carried out with minimal notice by
experienced pig specialists skilled at identifying
potential health and welfare issues, prioritise
observing the pigs and their housing conditions
over paperwork compliance. Immediate and
comprehensive feedback means we can build
collaborative improvement plans. Sharing and
trending health and welfare information with
a producer creates a performance incentive
as they like to maintain levels below the
Cranswick average, and invariably their vet
becomes a key part of the improvement plan.
The Cranswick Pig Passport programme also
offers comprehensive training and career
development, upskilling current employees
and supporting the recruitment, and training
of, apprentices.
SOUND TALKS
IMPROVING WELFARE
We are using the innovative Sound Talks
system to enhance the health and welfare of
our pigs by analysing the sounds they produce.
The technology interprets these sounds,
providing real-time insights and enabling
proactive management of their environment.
The system operates continuously, with
microphones installed in pig housing capturing
sounds around the clock without the need for
human presence, saving time and resources.
The captured sounds are analysed using
advanced algorithms that identify patterns and
anomalies, distinguishing between different
types of sounds such as coughing, which may
indicate respiratory issues. When Sound Talks
detects any noises that deviate from the norm,
it sends real-time alerts to farm managers,
allowing for earlier treatment that can lead
to less medication, including fewer doses of
antibiotics, and better outcomes. The system
also generates detailed reports on the sounds
captured and analysed, providing valuable data
to inform management decisions.
We have successfully implemented the Sound
Talks system in several facilities, with initial trials
showing promising results. We plan to roll
out this technology to more sites, as part
of our efforts to set a new standard in animal
welfare management.
OUR STAKEHOLDERS
CONTINUED
PRODUCERS AND SUPPLIERS CONTINUED
AI4 ANIMALS
INITIATIVE
We have partnered with Deloitte to implement
a UK pilot installation of their AI4 Animals
system, an innovative technology designed
to enhance transparency and welfare
monitoring within our supply chain in real time.
This initiative uses artificial intelligence to
analyse CCTV footage at our unloading ramps
and lairage facilities, ensuring the efficient
handling of pigs and identifying areas for
improvement in welfare practices.
The technology addresses the challenge
of manually reviewing large amounts of
CCTV footage, which became a requirement
in the UK in 2018 to ensure compliance with
welfare regulations. The AI4 Animals system
reviews the footage to detect deviations from
expected handling practices. By extracting
specific clips that show deviations, the system
enables managers to focus on critical moments,
improving both welfare and operational
efficiency. Additionally, the system helps
to identify bottlenecks and accurately
counts pigs as they are moved off lorries.
This proactive use of technology underscores
Cranswick’s commitment to setting new
standards in animal welfare and
operational transparency.
FarmSense gets an upgrade
The FarmSense Project, funded by Innovate
UK, is an ambitious artificial intelligence
research and development initiative aimed at
revolutionising pig husbandry. Employing 3D
cameras installed at three of our sites, the
system learns to automatically detect
behavioural changes that could indicate
problems, such as the angle of a pig’s tail
suggesting a risk of tail biting, abnormal eating
patterns, or the presence of disease before
clinical signs are evident. This proactive
approach allows for timely interventions,
enhancing animal welfare and farm efficiency.
Caring for our chickens
Our fully integrated poultry model allows us
to offer higher-welfare chicken to customers.
We use the revolutionary NestBorn on-farm
hatching system for all our eggs. This means
that our chicks are born in a warm barn under
stress-free conditions, with immediate access
to shelter, feed, and water as soon as they hatch.
This results in healthier and more robust birds,
and calmer flocks, with improved immunity.
Our poultry sheds provide ample space for
chickens to roam freely and are enriched
with fresh bales, perches with toys, and
windows that allow natural light to flood in.
Our sheds are equipped with climate control
systems, enabling us to optimise the indoor
temperature to suit the needs of our chickens
year-round. Additionally, water misting systems
ensure that the birds remain comfortable
during periods of extreme heat in the
summer months.
We rear all our chickens indoors to a standard
that not only meets, but exceeds, Red Tractor
core welfare standards. This year, we continued
to transition all our poultry stocking densities
to 30kg/m2, in contrast to the 38kg/m2
recommended by the Red Tractor guidelines.
This change has led to favourable welfare
outcomes and performance improvements,
with less competition at the feeders and
water drinkers.
Antibiotic use
Our antibiotic use across our pig and poultry
farms remains well below typical industry levels,
with average antibiotic use across our six
pig farming businesses at 49.8mg/pcu,
and across our poultry farms at 13.2mg/pcu.
Antibiotic usage has not improved during the
year, as the UK-wide removal of zinc from feed
in July increased disease pressure. However,
the overall trend remains aligned with industry
direction. We are board members of the Food
Industry Initiative on Antimicrobials (‘FIIA’) and
continue to collaborate with them on industry
best practices in this field.
For more information on antibiotic use, please
refer to our SASB disclosure on pages 49 to 51.
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NGOS AND PARTNERSHIPS
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.
• We transitioned to full mass balance
RTRS-certified soya across our pig and
poultry farming businesses, achieving this
one year ahead of our policy commitment.
Why we engage
Close collaboration with NGOs allow us to help
set policies and improve industry standards.
How the Company engages
• We foster collaboration by actively
participating in steering committees, industry
groups, and boards alongside NGOs to
address shared priorities.
• We strengthen partnerships by trialling new
sustainability standards with NGO input,
supporting the development and
implementation of best practices.
• We promote dialogue by engaging with
NGOs at industry events, enabling
meaningful conversations on key
environmental and social issues.
• We enhance transparency by using digital
platforms and social media to share updates
and relevant information with
NGO stakeholders.
• We demonstrate responsiveness
by integrating NGO feedback and
recommendations into corporate policies,
aligning our approach with ethical and
sustainable principles.
OUR STAKEHOLDERS
CONTINUED
We work with various non-governmental organisations (‘NGOs’) including the
Agricultural and Horticultural Development Board (‘AHDB’), the British Poultry Council (‘BPC)’,
Waste and Resource Action Programme (‘WRAP’) and the Red Tractor.
ENGAGEMENT AND ACTIONS (S.172)
Our strong connections within the food
industry enable us to spark innovative ideas
and drive meaningful actions that are
essential to achieving the sweeping changes
required to create a truly sustainable food
system. Our collaborative initiatives not only
set high industry standards but are also
designed to deliver outcomes that facilitate
a proactive, forward-thinking approach.
Collective actions, global challenges
We actively engage with many
non-governmental organisations (‘NGOs’) and
strategic partners. These collaborations allow
us to share our experience, exchange invaluable
insights, test innovative solutions, and work
together to promote new industry standards.
These joint efforts are focused on addressing
pressing global challenges that require
collective action rather than isolated efforts.
Tackling deforestation
As active members of the UK Soya Manifesto
(‘UKSM’), we are committed to ensuring the
importation of soya that does not contribute
to deforestation or land conversion. By the end
of 2024, we transitioned to full mass balance
RTRS-certified soya across our pig and poultry
farming businesses, achieving this one year
ahead of our policy commitment. We are also
supporting the Agricultural Industries
Confederation (‘AIC’) in developing a new
module for conversion-free soya, in line with
the EU Deforestation Regulation.
Our involvement extends to being members
of the UK Roundtable on Sustainable Soya
and the Soya Transparency Coalition, where
we collaborate with global initiatives focused
on zero deforestation. Through partnerships
such as the UKSM, we are working with various
agricultural sectors to ensure that all soya
shipments to the UK will be deforestation
and conversion-free in the future. Additionally,
we have pledged support for the Cerrado
Manifesto, led by the FAIRR Initiative, which
advocates for an end to deforestation in Brazil’s
Cerrado region.
Driving decarbonisation
We are exploring the use of hydrogen
technology to manage slurry emissions and
reduce our environmental impact. We were
involved with the PigProGrAm trial run by
AHDB and Leeds University. This programme
used slurry from Cranswick pigs, separating
the manure and capturing the ammonia to then
be turned into hydrogen. By mapping all our
farms using the industry-leading water filter,
working with The Rivers Trust and working with
Red Tractor to improve industry standards,
we aim to mitigate the impact of agriculture
on river catchments.
Carbon Inset Pilot Scheme
Our two-year Carbon Inset Pilot Scheme,
working in collaboration with Hutchinson
Technology and AgriSound, is a trailblazing
initiative in the industry. The initiative focuses
on integrating nature-based solutions within
Cranswick’s supply chain to reduce carbon
emissions. Our aim is to enhance regenerative
agriculture by improving carbon sequestration
in soils and to increase biodiversity across
our farms.
Having been awarded Innovate UK funding
for the project, our goals include building trust
and transparency, using the positive carbon
and biodiversity aspects of our farming
operations to contribute towards our Net Zero
livestock objective. Using Hutchinson’s Omnia
Terramap technology and AgriSound’s
bioacoustics listening technology, we are able
to build a clearer picture of the biodiversity
levels and activity on Cranswick farms.
The scheme leverages our vertically integrated
agricultural supply chain instead of relying on
external carbon offsetting schemes. It is being
trialled across multiple independently owned
sites, offering additional income to farmers by
financially incentivising carbon sequestration
and biodiversity enhancement on their land.
The project underscores Cranswick’s
dedication to developing sustainable and
regenerative agricultural practices to mitigate
carbon emissions. By sharing the scheme’s
blueprint with the wider agri-food industry,
we hope to set a new standard for sustainability.
Farming Assurance Review
The Farming Assurance Review is a
collaborative initiative between the National
Farmers’ Union (‘NFU’) and the Agriculture
and Horticulture Development Board (‘AHDB’).
Its goal is to ensure that farm assurance
schemes effectively meet the needs of farmers
and the wider industry, gathering input from
various stakeholders, including farmers,
growers, merchants, and processors.
The review identified eight key areas for
improvement, such as reducing the audit
burden on farms, leveraging technology to
enhance farm assurance, and adopting a more
risk-based approach to auditing.
At Cranswick, we fully support these
recommendations and have incorporated them
into our own practices. We agree that audits
should be fewer and more risk-focused,
making better use of available technology.
Our Cranswick Pig Standard, which includes
the Cranswick Welfare Assessment and
Integrity Audit, enables us to assess all
producers entering our supply chain using
production data on health and welfare
outcomes. For example, we can identify pigs
with significant fight marks or signs of tail biting,
which may indicate underlying management
challenges on the farm. Traditional assurance
schemes do not have access to this valuable
data, placing us in a stronger position to assess
producers more accurately. However, despite
our support for a more focused audit approach,
we have carried out a higher number of audits
this year due to the addition of new farms and
an increase in supplier-driven audit requests.
While we continue to recognise the importance
of independent audits, such as those provided by
Red Tractor, we believe there is an opportunity
to streamline other schemes. Our focus will
remain on building trust through our risk-based
auditing process and reducing the need for
additional audits wherever possible.
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 also proud members of the On-Pack
Recycling Label (‘OPRL’) scheme, a UK-based
initiative dedicated to improving recycling rates
and reducing plastic waste. Their experts offer
invaluable assistance and resources to help us
tackle the intricacies of packaging recyclability.
As a strategic partner of WRAP, Cranswick
was involved in this year’s Food Waste Action
Week in March 2024, organised by their Love
Food Hate Waste initiative. Our involvement
in the Action Week included promoting the
campaign’s theme, ‘Choose What You’ll Use’,
which encouraged consumers to buy loose
fruit and vegetables to avoid over-purchasing
and subsequent food waste. We are also active
signatories of high-level coalitions such
as Champions 12.3 and Courtauld 2030,
which focus on reducing food waste across
the supply chain.
Alongside our work with suppliers and retailers
to tackle packaging waste within our value
chain, our people have continued to reduce
plastic pollution off-site this year by teaming
up with local charities to attend litter picking
events at beaches on the East Yorkshire coast.
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OUR STAKEHOLDERS
CONTINUED
Sustainable farming
In collaboration with food producers, charities,
and community organisations, we safeguard
vital agricultural resources. Soil health plays
a crucial role in mitigating climate change
locally and globally. Livestock plays 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 integrating manure from our pig
operations into surrounding soils, we enhance
nutrient levels and organic matter. Over time,
this improves water retention, making soil more
drought-resistant and maintaining crop yields.
Two-thirds of our poultry manure goes direct
to power generation, adding value and
mitigating risk.
Read more about our approach to regenerative
agriculture on page 36.
Improving welfare outcomes
across the industry
We engage with numerous industry bodies
and assurance schemes and are committed
to shaping robust company policies and future
animal welfare standards that uphold the
integrity of the meat industry. We have forged
a close alliance with Red Tractor and actively
contribute to DEFRA’s Animal Health and
Welfare Pathway, an initiative that seeks to
develop welfare standards and offer financial
support in response to shifting UK Government
agricultural policies.
Our dedication to animal welfare is evidenced
by our deep involvement in various industry
assurance schemes and groups. Our Technical
Director actively participates in the British
Meat Processors Association’s Animal Welfare
Committee, and our Director of Agricultural
Strategy sits on the Red Tractor Pig Board and
serves as a director on the board of the National
Pig Association. Cranswick is also an active
member of the Agriculture and Horticulture
Development Board, where our presence
at both board and committee levels allows
us to influence the direction of the industry.
For more details, see our Animal Welfare policy
at www.cranswick.plc.uk.
NGOS AND PARTNERSHIPS CONTINUED
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.
• 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 continue our partnerships with
a number of organisations, such as
FareShare, through which we assist
people in need, tackle food poverty,
and support communities.
• We engaged with local authorities
and communities, considering different
stakeholder views when assessing
significant capital projects.
• We are also involved in various local
projects to provide sponsorship,
education, mentoring, and employment
opportunities to those in need within
our communities.
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.
OUR COMMUNITIES
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.
ENGAGEMENT AND ACTIONS (S.172)
Inspiring the Next Generation - proud to support the launch of Holderness Academy’s new Careers Hub
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We have a proven history of making a positive
impact on, and strengthening resilience in,
the communities where we operate.
We collaborate with various organisations
and charities to support worthwhile causes
through fundraising, product donations, and
volunteering efforts, while also providing
people with education and meaningful
employment opportunities.
Supporting our communities
With so many people facing ongoing
financial and social challenges, Cranswick
has continued to support our communities
this year through the redistribution of food,
and support for education and outreach
initiatives. Working together, and alongside
local and national partners, we have the
ability to make a real difference to those
who really need us.
In 2024, Cranswick continued its
long‑established partnership with FareShare,
a leading UK food redistribution charity,
to help reduce food waste and support those
in need. Through their ‘Surplus with Purpose’
scheme, we donated 1.8 meals in the
year to vulnerable people. This initiative
not only alleviates hunger but also promotes
sustainability by ensuring surplus food reaches
vulnerable communities rather than going
to waste.
Throughout this year, we have redirected
some of our redistribution efforts, with
Company Shop’s network of membership-
based stores across the UK now receiving a
larger portion of the surplus food we supply.
We believe that food redistribution is crucial
for fostering economic stability and improving
health outcomes within communities.
Cranswick’s involvement in both of these
schemes demonstrates our commitment to
building a more equitable and resilient society.
On a local, smaller scale, we make many
individual donations from all of our sites
throughout the year to worthy causes.
We donated £1,000 to the Hessle & Anlaby
Food Bank in East Yorkshire, which supports
over 100 families and individuals. The donation
came after a power cut caused the loss of all
their frozen food, which they rely on to
supplement tinned goods and fresh produce.
This incident underscored the importance of
community solidarity and the willingness of
individuals and businesses to come together
in times of need.
We also continue to support the ‘Chop and
Change’ lunches at Ganton School, Hull –
a successful initiative that helps students
develop their culinary skills. As part of the
Industry Chefs into Schools programme,
the event provides hands-on experience
in cooking and hospitality. Students are
mentored by chefs and industry professionals
from Cranswick and also gain valuable
front-of-house experience by serving
meals in a restaurant-style setting.
In Milton Keynes, we remain actively
engaged with local communities by offering
apprenticeships and training opportunities,
supporting homeless charities, encouraging
employee volunteering, and working with
local organisations to create pathways into
employment. In recognition of our Charitable
Giving Initiative, which allows employees to
donate directly from their salaries, our Milton
Keynes colleagues received silver and gold
awards from Payroll Giving.
Elsewhere, we were proud to see Cranswick
Country Foods Ballymena win the Involvement
in the Community Award at the Ballymena
Business Excellence Awards, while Valley Park
was recognised at the Barnsley and Rotherham
Business Awards 2024, winning in the
‘Business Community Impact’ category.
Other charitable support
and fundraising
We support a wide range of charities across
the Group, with a strong emphasis on employee
volunteering to help raise money for good
causes. For example, our Sutton Fields team
participated in several charitable activities
this year, including a volunteering session
at the PATT (‘Plant a Tree Today’) Foundation
in Preston and assisting at the FareShare
Hull & Humber redistribution warehouse.
They also organised a litter pick and carried
out their fourth annual beach clean in
partnership with the Yorkshire Wildlife Trust.
This year, our colleagues collectively raised
more than £40,000 through various
fundraising activities, including Mental Health
Awareness Week fundraisers, charity bike
rides, a handmade doll raffle, a Christmas
jumper day, bake sales, and other raffles.
The Porky Peddlers cycling team rode
from London to Brussels, raising £3,141
for GroceryAid. Cranswick’s Hull MKM
Corporate Challenge, a team-based event
where participants compete in the Hull 10K
race, raised £1,905 for the Alzheimer’s
Society and £1,725 for the Daniel Wilkinson
Foundation. Additionally, a charity football
match at Watton and Eye raised £8,250 for
the East Anglian Children’s Hospice (‘EACH’)
and the East Anglian Air Ambulance.
For the sixth consecutive year, we have
retained our GroceryAid Gold Award
Supporter status. Achieving this recognition
requires participation in a variety of activities
across the three key pillars: Awareness,
Fundraising, and Volunteering. Two of
our management team also serve on the
GroceryAid committee, helping to further
raise awareness of its work.
Cranswick Charitable Trust
The Cranswick Charitable Trust (‘CCT’)
is a grant-making charity governed by a
dedicated Board of Trustees, independent
of our Company. It serves as a focal point for
our charitable giving and addresses numerous
requests for support. Throughout the year,
CCT has remained focused on supporting
a range of charitable causes, particularly
those related to food poverty, education,
and children’s welfare.
Among the most significant donations,
Barnardo’s received £100,000 to support its
ongoing efforts to help vulnerable children
and young people, providing services such as
fostering and adoption, mental health support,
and assistance for children with disabilities.
A further £100,000 was donated to Yorkshire
Children’s Charity, which helps disadvantaged
children across Yorkshire, particularly those
facing challenges due to disability, ill health,
or financial hardship.
In addition to these major contributions,
the CCT made numerous smaller donations
ranging from £2,000 to £6,000 to various
organisations addressing food poverty.
Recipients included Cherry Tree Community
in Beverley, East Yorkshire; Be Enriched,
a South London food charity; Feast with Us,
which transforms surplus food into nutritious
meals for vulnerable people in London; and
Jubilee Church Hall in Hull, a vital community
hub. Further support was provided to Hull
Women’s Aid, offering refuge accommodation
for women and children fleeing domestic
abuse; Oakfield School, a special education
school in Kingston upon Hull, East Yorkshire;
the Citizens Advice Bureau, which provides
essential guidance and support; and Bury
Hospice, delivering palliative and end-of-life
care for patients and their families.
Beyond these contributions, the CCT has
continued to support Ukrainian-focused
charities, delivering much-needed aid in
response to the ongoing crisis. It has also
contributed to the World Central Kitchen,
an international charity providing food relief
in crisis zones, including Ukraine. Their efforts
in the country have been particularly impactful,
ensuring that families caught in frontline
conflict areas receive essential food supplies
during these challenging times.
OUR STAKEHOLDERS
CONTINUED
OUR COMMUNITIES CONTINUED
Educational outreach
We participated in regional agricultural
shows, such as the Driffield Show and the
Yorkshire Show, engaging with local suppliers
and farmers as part of our support for the
agricultural community in East Yorkshire.
There were also opportunities to meet with
adults and children from primary and secondary
schools. Cranswick chefs prepared delicious
food for guests to enjoy, such as our gourmet
bacon sandwiches, taster plates of gourmet
sausages, chicken, sausage rolls and BBQ pork
ribs. They also put on cookery demonstrations
throughout the days.
Cranswick continues to promote careers
in agriculture through partnerships with
schools, colleges, and universities, providing
sponsorships, education, mentoring,
internships and apprenticeships. Our people
also visit local schools and offer students
career advice.
During the year, we were pleased to award
one student with the ‘Cranswick Agricultural
Scholarship’ and two students with the
‘Cranswick Agricultural Technical Scholarship’
at Harper Adams University, supporting the
next generation of agricultural professionals.
We also support IntoUniversity, a national
programme that creates opportunities
for young people from disadvantaged
backgrounds. Since opening in October 2022,
the IntoUniversity Hull East has supported
over 750 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.
>750
local children and young people
supported through the IntoUniversity
Hull East after-school study sessions,
mentoring meetings, holiday clubs
and their FOCUS programme.
Farming Community Network (‘FCN’)
We have joined the FCN as a corporate
sponsor, extending our support to both
employees and suppliers. The FCN provides
vital assistance to farmers facing mental health
challenges, aligning with Cranswick’s
commitment to the agricultural community.
As a voluntary organisation, the FCN relies
on donations and grants to support farmers,
farming families, and rural communities during
challenging times. With over 400 volunteers
across England and Wales, many of whom have
strong agricultural ties, the network provides
free, confidential support for a range of issues,
including financial hardship, animal disease,
mental health struggles, and family disputes.
We are proud to support the FCN, recognising
the vital role that mental health and wellbeing
play in the agricultural sector. Our sponsorship
reinforces Cranswick’s commitment to
sustainability and community engagement,
ensuring that the agricultural community,
which is an essential part of our supply chain,
receives the help and resources it needs.
STRENGTHENING
COMMUNITY
ENGAGEMENT
IN SUFFOLK
At Cranswick, we engage with local authorities
and communities on planning applications
and development projects. During the year,
we have been involved in pre-planning
application meetings for our proposed
developments in Eye, Suffolk. We are planning
a significant expansion of our poultry
processing facility, which includes the
construction of a new mill building and a
reservoir, creating approximately 1,200 jobs.
We have been holding public consultations
and discussions with local councils and
statutory consultees to ensure transparent
communication and to gather feedback.
We believe the development will bring
significant benefits to our business, local
employment, and the environment, but we
will always listen to, and seek to address,
any concerns from the community.
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OUR SHAREHOLDERS
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 the Board.
• 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.
• Capital Markets Day was held in March,
providing investors and analysts with
an update on the Group’s long-term
strategy, current performance, capital
allocation, and expansionary capital
investment projects.
• 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 2024 AGM.
• Additionally, we maintained regular
engagement with analysts to review
business performance, provide guidance,
and assess financial models.
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.
OUR STAKEHOLDERS
CONTINUED
We focus on sustaining fair, balanced and honest relationships with our Shareholders
as we strive to deliver the long-term success of Cranswick.
ENGAGEMENT AND ACTIONS (S.172)
Our metrics
AGM
The AGM will take place on Monday 28 July 2025 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 enquiries through our website, which the Company responds to promptly.
Shareholder engagement themes
UK Budget impact
The Group has engaged with Shareholders in relation to the impact of the UK Budget in Autumn 2024 and, in particular,
changes to National Insurance and the increase in the National Living Wage. Investors have been concerned about the impact
of the budget on the financial performance of the Group and its ability to mitigate or pass on such increases. Investors are also
concerned about the wider effect of such changes on the food sector and retailers, and the impact this may have on the Group’s
markets. Further detail is discussed on pages 15 to 17 of the Chief Executive’s Review.
Climate change
During the year, we have consulted with Shareholders and a range of stakeholders in relation to a wide range of
sustainability-related issues. These have included the Group’s approach to FLAG (Forest, Land, and Agriculture) and non-FLAG
targets in conjunction with existing Science Based Targets initiative (‘SBTi’). These new targets would revise and supersede our
current Scope 1, 2 and 3 short-term SBTi targets. Investors and other stakeholders have also been focused on the impact of
proposed business developments and related planning applications proposed by the Group in East Anglia, in relation to which
there has been significant public focus and comment. Further details are covered in the Strategic Report on pages 36 to 42 and
the ESG Committee Report on pages 104 to 105.
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 included the Group’s further consolidation of its supply chain and, in particular,
its acquisition of JSR Genetics and expansion into pig genetics, along with its plans for further investment into the poultry
sector, which are covered in further detail in the Strategic Report on pages 30 to 33.
Remuneration
During the year, the Company consulted with institutional Shareholders on proposed changes to Directors’ remuneration,
which focused on a review of the CEO’s remuneration to ensure that he was appropriately incentivised in line with the
Group’s strategy. The Group also consulted with Shareholders in relation to the exercise of discretion by the Remuneration
Committee in relation to ESG targets in the Group’s Long-Term Incentive Plan. Further details of consultation undertaken
by the Remuneration Committee are set out in the Remuneration Committee Report on pages 115 to 139.
Shareholder engagement on a regular basis
is important to us to capture and embrace
feedback and ensure the Group responds
to developing themes.
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, MUFG
Corporate Markets, 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 held an investor day in March where
investors had the opportunity to hear about
developments in the Group and to engage
with our wider management team. During 2024,
the Chief Executive and Chief Financial Officer
also undertook an investment roadshow to US
investors and participated in UK and European
investor conferences to promote the Group.
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.
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EFFECTIVE RISK MANAGEMENT
Effective risk management is key
to delivering the Group’s strategic
objectives. Our established
Risk Management Framework
identifies, assesses, and prioritises
risks, enabling us to mitigate
potential impacts and identify
emerging opportunities.
The Group adopts a structured and mature
approach to risk management, ensuring
that a systematic and planned process
for identifying, assessing, prioritising,
mitigating and monitoring risks is taken
throughout the business.
The Group’s Risk Management Framework
involves a top-down approach to identify
principal risks and a bottom-up approach
to identify operational risks. Our culture
of effective risk management focuses on
balancing risk and reward, which is determined
by assessing the likelihood and impact of risks
in line with the Group’s risk appetite statements.
The Group has an embedded risk management
IT system and a dedicated Risk and Internal
Audit team who facilitate the risk management
process by offering support to management
teams to ensure a consistent application
of the Risk Management Framework and its
supporting processes across the business.
The Board conducts an annual review
of the Group’s principal risks and receives
regular updates on key emerging risks,
risk trends and the actions taken to mitigate
risks. The Group Risk Committee reviews risks
during the intervening periods and met four
times over the course of the year.
To achieve our strategic objectives and
support the sustainable growth of the
business, effective risk management
is essential.
The Board oversees the Risk Management
Framework to ensure the Group has suitable
mitigation strategies in place for its key risks.
This responsibility is delegated to the Group
Risk Committee, chaired by the Chief Financial
Officer, and includes key internal stakeholders
such as Directors, Executive Directors, Heads
of Departments and the Head of Risk and
Internal Audit.
The Audit Committee receives additional
assurance on the Group’s Risk Management
Framework and internal control system through
the work of the established Risk and Internal
Audit team. Throughout the year, the Risk and
Internal Audit team conducted a series of
reviews across the Group, including in-depth
risk reviews on several of the Group’s principal
risks, and found no significant issues or
weaknesses in the Risk Management
Framework or internal control system.
Lines of defence
1ST LINE
OPERATIONAL
MANAGEMENT
Risks are managed daily by site
management and operational
teams, who establish policies and
procedures to implement a robust
control framework
2ND LINE
GROUP FUNCTIONAL TEAMS
INCLUDING COMMITTEES
AND THE BOARD
Group functional teams monitor key
risks to assess the effectiveness
of the first line of defence, manage both
current and emerging risks, and adapt
to changes in the risk landscape
3RD LINE
RISK AND INTERNAL
AUDIT TEAM
Risk and Internal Audit offers objective
and independent assurance on
the internal control framework
by identifying weaknesses and
recommending corrective actions
Top-Down
Bottom-Up
BOARD
Accountable for approving the principal risks, establishing
the tone, and shaping the risk management culture
as outlined in the Group’s risk appetite statement
AUDIT COMMITTEE
Provides assurance to the Board that an effective system
of integrated governance, internal control and risk
management is upheld within the Group
GROUP RISK COMMITTEE
Provides oversight and guidance to the Audit Committee
and Board on current and potential emerging risks,
along with mitigation strategies
OPERATIONAL MANAGEMENT
Implements site-level risk management processes to ensure
risks are properly identified, mitigation actions are carried
out and risks are effectively controlled
RISK AND INTERNAL AUDIT TEAM
Coordinates risk management activities and reports on
the effectiveness of the Risk Management Framework.
Provides assurance to the Audit Committee and Board
that internal controls are robust and effective
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MANAGEMENT
FRAMEWORK
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EFFECTIVE RISK MANAGEMENT
CONTINUED
Principal risks and uncertainties
The Group recognises that it is exposed to
a variety of risks however, in common with
other businesses, it focuses reporting on those
with a high likelihood and significant near-term
impact on strategic objectives, operational
plans or reputational damage. The Board has
undertaken a comprehensive assessment
of risks that could compromise the Group’s
business model, future performance, solvency
or liquidity.
The risk assessment table on page 78
provides a summary of the Group’s principal
risks. A summary of mitigation strategies,
actions, opportunities and alignment with our
strategic enablers are available on pages 79 to
82. In light of the upcoming changes to the UK
Corporate Governance Code, during the year,
the Group undertook a detailed review of its
principal risks to ensure that, given the
increased scale and complexity of the business,
they all remain appropriate. While no new
principal risks were identified, this review
resulted in removal of the ‘Competitor activity’,
‘Growth and change’ and ‘Adverse media
attention’ principal risks, and refinement of
the ‘Reliance on key customers’ principal risk.
Further detail on this can be found in the
‘Principal risk trends’ section on page 77.
Risk appetite
The Group determines its risk appetite in
accordance with the UK Corporate
Governance Code, which defines risk appetite
as the nature and extent of risk that a business
is prepared to accept in order to achieve
its operational and strategic objectives.
The delivery of the Group’s strategic objectives
requires an appropriate balance between risk
and reward, particularly 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 risk appetite 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.
In common with previous years, risk appetite
statements have again proven to be an effective
tool in facilitating risk discussions across
the Group, ensuring that mitigating actions
are appropriate and aligned with our
strategic objectives.
Over the course of the year, a detailed
refresh exercise took place to ensure our
risk appetite statements remain appropriate.
The ‘Health and safety’, ‘Food scares and
product contamination’, and ‘IT systems
and cyber security’ principal risks continue
to 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 ‘Reliance on key customers’ principal risk
as the Group is willing to accept a reasonable
level of risk in order to benefit from commercial
opportunities. Furthermore, to strike a
balance between retained risk and risk transfer,
risks that can be partially mitigated through
insurance, such as operational disruptions,
have been identified and evaluated.
Emerging risks
Emerging risks are areas of uncertainty that,
while not having a significant impact currently
on the business, have the potential to impact
in the future from both a risk and opportunity
perspective. The Group monitors emerging
risks throughout the year as part of its
integrated Risk Management Framework,
utilising a diverse range of sources including
horizon scanning, in-house knowledge or
expertise and support from external sources.
Key emerging risks identified during the year
included: threats and opportunities presented
by the fast paced development of artificial
intelligence, emergence of Bluetongue Virus
in UK cattle, poultry shortages as a result of
changes to stocking density rules, interest
rate uncertainty due to the increase in UK
Government borrowing costs, the change to
a Labour Government leading to new policies
(e.g. the Employment Rights Bill), and
geopolitical uncertainty caused by changes
to US Government. Emerging risks continue
to be discussed and reviewed by the Group
Risk Committee and Board, with appropriate
action taken when required to mitigate any
potential impact.
Key areas of focus this year
Risk Management Framework
Risk identification is an ongoing process, with risk
registers maintained at both Group (top-down)
and operational (bottom-up) levels. As part of
the risk assessment process, risk registers are
regularly reviewed with both the gross risk
and net risk being assessed and documented.
To ensure consistent risk evaluation across the
Group, a five-by-five risk scoring matrix is used
to assess the likelihood and impact on key areas
such as cash flow, share price, profit, operational
disruption and reputational damage. During the
year, the five-by-five risk matrix was reviewed
and updated to ensure that thresholds
remain appropriate.
The Risk Management Framework is supported
by a risk management IT system that enhances
the quality and integrity of risk reporting,
as well as the Group’s ability to respond
quickly to both existing and emerging risks.
Throughout the year, several in-depth risk
reviews were carried out by the Risk and
Internal Audit team to provide third-line
assurance and ensure that risk assessments,
controls and actions are appropriate and
consistently documented within our risk
management IT system.
During the year, an external maturity review
of the Group’s Risk Management Framework
was carried out by an external consultant
resulting in an overall ‘mature’ rating being
assigned. This indicates the presence of a
formal Risk Management Framework with
documented processes and consistent
application across the Group. In the coming
year, the Group will focus on implementing
recommendations from this review to further
enhance our Risk Management Framework
together with progressing the upgrade
of our risk management IT system and
supporting processes.
UK Corporate Governance Code
In January 2024, the Financial Reporting
Council released a revised UK Corporate
Governance Code that requires businesses
to make an assertation within their annual
reports as to the effectiveness of material
controls (both financial and non-financial)
as at the balance sheet date. Our existing Risk
Management Framework means that the Group
has strong foundations in place to implement
the changes and a comprehensive Corporate
Governance Reform project has been
underway during the year to ensure that we
meet the requirements. In the coming year,
the Group will carry out a test run as part
of the project to ensure that the assessment
of the effectiveness of the Group’s control
framework is robust.
Managing major disruptions
and uncertainties
In common with other businesses, the Group
is vulnerable to IT system failures and cyber
attacks. Although there have been no
significant cybersecurity breaches during
the year, there have been several incidents
in the food industry and the Board remains
mindful of the ongoing risks in this area due
to the growing sophistication and evolving
nature of these threats.
Other significant events such as the
ongoing Russia—Ukraine conflict, change
to UK Government, the outcome of the US
Presidential election and the imposition of
subsequent tariffs, animal activist disruptions,
severe weather events and the resurgence
of Foot and Mouth Disease (‘FMD’) continue
to create challenges and uncertainties for
the Group, particularly within our supply chain,
operations and workforce. Additionally,
economic uncertainty, inflation, and interest
rate fluctuations are placing continued
pressure on household budgets.
The Group remains vigilant in monitoring
these situations to maintain strong operational
resilience and has implemented robust
measures to identify and manage any
potentially disruptive events that may occur.
Business continuity remains a key mitigation
for the Group as it ensures operational
resilience during unexpected disruptions
and events. The Group continues to enhance
existing business continuity arrangements in
conjunction with updating the crisis manual,
and plans to stress-test these in the year ahead.
Disease and Infection within Livestock
African Swine Fever (‘ASF’) and Foot and Mouth
Disease (‘FMD’) are notifiable diseases that can
affect pigs and, if found in the UK, they would
significantly impact the Group’s operations and
ability to export overseas for a sustained period
of time. Cases continue to rise overseas, and
despite UK border controls, the risk of ASF
and FMD entering the country remains possible
due to non-commercial and illegal imports.
During the year, the Group maintained strong
farm bio-security protocols and contingency
plans, and continues to lobby industry bodies
and the Government to introduce prompt
legislation and operational guidance, the
absence of which creates a significant risk
to the Group and livestock industry.
Avian Influenza (‘AI’) is a notifiable disease
in poultry and cases have continued to spread
throughout the UK during the year. The Group
has closely monitored the situation with
frequent industry updates and communications
being shared on a regular basis. Our poultry
farms have maintained strong bio-security
measures to help prevent the spread including
restricting non-essential visitors and movement
between sites and disinfecting vehicles
before entry.
Climate-related risks
The Group’s ‘Climate change’ principal risk
addresses both the physical risks arising
from climate change and the transitional risks
linked to the shift towards becoming a Net Zero
business. The Group regularly reviews and
monitors climate-related mitigation strategies
and assurances.
The Risk and Internal Audit team maintain
close collaboration with the Sustainability
team as a cross-functional unit to ensure
that all climate-related risks are continuously
monitored at the Group Risk Committee.
During the course of the year, the Group has
integrated climate risks into the Group Risk
Committee agenda and further aligned the
TCFD risk matrix with the Group’s five-by-five
risk matrix.
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 43 to 48.
Principal risk trends
During the year, there has been limited
material changes to the principal risk
assessments however, the Group continued
to monitor and assess risks in detail, while
identifying areas where further mitigations
could be implemented.
In addition, a detailed review of principal risks,
completed over the course of the year, resulted
in the removal or refinement of the following:
• ‘Competitor activity’ has been amalgamated
into the ‘Reliance on key customers and
exports’ principal risk due to being
comparable in nature with similar controls
and mitigations.
• Subsequently, ‘Reliance on key customers
and exports’ has been updated to ‘Reliance
on key customers’ to remove exports.
Instead, exports are now considered in
‘Disease and infection within livestock’ as an
outbreak would impact our ability to export.
In addition, the ‘Reliance on key customers’
risk has trended downwards during the year
following the agreement of several long-term
commercial deals.
• ‘Adverse media attention’ is now considered
within each of the principal risks as a specific
impact threshold.
• ‘Growth and change’ has been assessed
to have a low impact on the Group and low
likelihood of occurrence along with
well-established mitigations being in place.
Whilst the risks removed are no longer
considered to be principal risks to the Group,
they continue to be managed as part of the
wider Group Risk Management Framework
within the Group and operational risk registers.
Key priorities for next year
The Group regularly assesses and enhances
our risk management approach to identify
new opportunities that support effective and
informed decision making. Specifically, next
year we plan to:
• Utilise a new co-source arrangement with
a specialist third party and complementary
artificial intelligence risk tool to conduct our
rolling programme of in-depth risk reviews
on key principal risks to ensure that risk
assessments, controls and actions are
appropriate and consistently documented
in our risk management IT system;
• Implement recommendations from the
external maturity review of the Group’s
Risk Management Framework to help
develop existing processes. This includes an
upgrade to the existing risk management IT
system to further embed risk culture and
reporting across the Group; and
• Adapt our approach to monitoring
the effectiveness of the Group’s
material controls, to ensure that
processes and audit procedures align
with the requirements of the updated
UK Corporate Governance Code.
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PRINCIPAL RISKS AND UNCERTAINTIES
Risk assessment
Principal risks
Risk owner
Comments
Trend
1
Disease and infection
within livestock
Director of
Agricultural Strategy
Disease remains our most significant risk with both ASF and FMD cases spreading
in Europe, along with AI continuing to be prevalent within the UK and overseas
2
Labour availability
and cost
Group HR Director
Labour pressures have eased slightly predominately due to the successful implementation
of a Filipino butchers visa scheme within the Group. Potential implications of the upcoming
Employment Rights Bill have been assessed and action plans set
3
Climate change
Head of Sustainability,
Strategy and ESG
Climate Scenario Analysis has been refreshed during the year to ensure that
climate-related risks remain appropriate, understood and managed
4
Reliance on key
customers
Group Marketing
Director
The recent agreement of several long-term contracts has increased business security
and therefore, reduced the risk
5
Consumer demand
Group Marketing
Director
Our product portfolio continues to perform well during the cost-of-living crisis with
consumers switching to low-cost proteins
6
Recruitment and
retention of key
personnel
Group HR Director
Succession plans continue to be in place for all senior roles and are regularly reviewed
7
Health and safety
Head of Health
and Safety
Robust processes are in place to manage health and safety risk, the Group is
investing in projects across the business that will further enhance health and safety
culture and behaviours
8
Interest rate, currency,
liquidity and credit risk
Director of Group
Reporting and
Control
Borrowing facilities are managed centrally and remain appropriate
9
IT systems and
cyber security
Group IT Director
Although there have been no significant cybersecurity breaches during the year,
the Group remains vigilant to the threat of a cyber attack, particularly in light of recent
incidents in the food industry. The business continues to invest in initiatives that enhance
the ability to detect, protect, respond and recover from a cyber security incident
10
Food scares and
product contamination
Group Technical
Director
The Group continues to invest into technological advancements to maintain an industry
leading position for food safety and quality
11
Pig meat availability
and price
Pork Procurement
Director
Our integrated supply chain model provides supply chain security in this area
12
Disruption to
Group operations
Group Technical
Director
Enhancements have been made to the Group crisis manual to ensure resilience during
an incident and a simulation exercise is planned for the coming year
Our principal risks have been arranged in order of highest to lowest risk score, based on an assessment of their potential impact and likelihood after
mitigating controls, as shown below:
Risk trend key
Risk increased
Risk unchanged
Risk decreased
Strategic enabler key
Supply chain
Iconic and relevant products
Lean processing
Customer relationships
1 Disease and infection within livestock
Risk description and impact
The Group faces unique risks related
to outbreaks such as African Swine
Fever, Avian Influenza or Foot and
Mouth Disease. These outbreaks
could disrupt the supply of pig or
poultry meat, hinder the movement
of livestock or limit our ability to
export, potentially affecting
the Group’s operations and
financial performance.
Strategic
enabler
Oversight
Group Risk
Committee
Mitigation strategy
The Group’s pig farming operations,
along with other farms supplying
third-party pig meat, are spread across
multiple regions to avoid dependence
on a single production area.
The Group’s poultry flock is kept
indoors, reducing the risk of disease.
Strong vaccination and biosecurity
measures are in place to minimise
the risk of disease and infections within
the Group’s pig and poultry farms.
Actions in 2024/25
• Vertical integration has reduced our
biosecurity risk due to better control
measures e.g. standardisation of
strategic veterinary health plans.
• Continued to attend industry and
Government meetings to raise
awareness of disease risks.
Future actions
• Continue building customer
contingency plans in line with
known legislation.
• Provide ongoing focus on rapid
disease diagnostics by investigating
latest technologies and their viability
on commercial farms.
2 Labour availability and cost
Risk description and impact
The Group is subject to external
political and economic pressures
that can impact the availability and
cost of labour or specialised skills.
Failing to manage these factors
could negatively affect the
Group’s operations and
financial performance.
Strategic
enabler
Oversight
Remuneration
Committee
Group Risk
Committee
Mitigation strategy
The Group is constantly evaluating
and enhancing its recruitment
processes and partnerships with
third-party agency providers to
align with shifting market conditions
and wage levels.
The Group is also exploring
opportunities to transfer a number
of existing agency staff to permanent
roles and considering alternative
production methods to incorporate
emerging technological
advancements.
Actions in 2024/25
• Continued to manage skills
shortages through the Filipino visa
scheme and investment
in automation.
• Joined the Food Network for
Ethical Trading to broaden
knowledge of ethical trends
and legislation.
Future actions
• In light of the changes to the
National Minimum Wage and
Employer National Insurance
thresholds, the Group will review
our existing labour model to ensure
it remains appropriate.
3 Climate change
Risk description and impact
The Group faces physical risks
linked to climate change and
transitional risks related
to the move towards Net Zero.
Failing to address these risks
could affect our regulatory
compliance, financial stability
and operational performance.
Strategic
enabler
Oversight
Environmental,
Social and
Governance
Committee
Group Risk
Committee
Mitigation strategy
The Group continues to progress
its Second Nature programme
predominantly through the
Environmental, Social and
Governance Committee,
with a focus on improving
production efficiency and
reducing carbon emissions.
Actions in 2024/25
• Updated our Climate Scenario
Analysis (‘CSA’) to ensure
physical and transition risks
remain appropriate.
• Utilised the results from the
CSA to guide the Group’s
transition planning.
Future actions
• Build site-level mitigation plans
using the results of the CSA.
• Publish a climate transition plan
which will document how transition
risks are to be managed.
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4 Reliance on key customers
Risk description and impact
A large portion of the Group’s
revenue comes from a small number
of key customers. Losing all or part
of the business with one or more of
these customers for an extended
period, could adversely affect the
Group’s financial performance.
Strategic
enabler
Oversight
Group Risk
Committee
Mitigation strategy
The Group consistently seeks
opportunities to grow its customer
base across all product categories
and collaborates closely with
customers to maintain the highest
standards in service, quality, food
safety and new product development.
Actions in 2024/25
• Strengthened relationships with key
existing customers, including the
agreement of a 10-year contract
with Sainsbury’s.
• Invested further into our vertically
integrated supply chain to build
resilience and differentiation.
Future actions
• Continue to enhance customer
service by investing into our existing
asset base.
• Pursue longer term strategic
partnerships with customers to
ensure reliability, resilience, and
continuous growth of the business.
5 Consumer demand
Risk description and impact
The Group faces external economic
and social challenges, including
inflation in the UK economy,
the cost-of-living crisis and shifts
in food consumption patterns,
all of which could result in reduced
demand for the Group’s products.
Strategic
enabler
Oversight
Group Risk
Committee
Mitigation strategy
Despite economic volatility, our
products continue to be highly
competitive in price and demand.
The Group regularly monitors
emerging consumer trends,
collaborates closely with key
customers to adapt to evolving
preferences, and offers a variety
of products across premium,
standard and value tiers, allowing
for flexible adjustments as needed.
Actions in 2024/25
• Continued to adapt our portfolio in
line with market trends, such as the
reduction of ultra-processed foods.
Future actions
• Develop new innovative products
to support our core offerings.
• Investment into our farming and
agricultural operations to secure
customer volume requirements.
6 Recruitment and retention of key personnel
Risk description and impact
The strategic growth and success
of the business relies on attracting
and retaining skilled, experienced
key personnel. Failing to do
so could adversely affect the
Group’s operations and
financial performance.
Strategic
enabler
Oversight
Remuneration
Committee
Group Risk
Committee
Mitigation strategy
The Group has strong recruitment
processes, competitive compensation
packages, and ongoing training and
development programmes in place.
Additionally, formal succession plans
are established for senior roles.
Actions in 2024/25
• Introduced the use of internal
recruitment teams to advertise
vacancies on social media and
networking platforms.
• Continued focus on employee
engagement and benefits to include
provision of a 24/7 GP service
and financial planning assistance.
Future actions
• Manage diversity initiatives across
the business and understand the
benefits of intersectionality.
• Continue to support education
initiatives in order to raise awareness
of careers available.
PRINCIPAL RISKS AND UNCERTAINTIES
CONTINUED
7 Health and safety
Risk description and impact
The Group faces the risk of harm
or injury to employees and third
parties that may breach health and
safety regulations. A breach could
result in reputational damage,
regulatory penalties, operational
restrictions, fines, or personal
litigation claims.
Although no significant health and
safety incidents have occurred this
year, the Group is aware that several
incidents within the food industry
have been reported in the media.
Strategic
enabler
Oversight
Group Risk
Committee
Mitigation strategy
The Group maintains a strong
Health and Safety Framework that
is regularly reviewed by independent
parties, complies with all relevant
regulations and standards, and aligns
with industry best practice.
All sites undergo frequent audits
by internal teams, customers, and
regulatory authorities to ensure
adherence to these standards.
Actions in 2024/25
• Significant investment into
automation and best available
technologies has reduced manual
handling and working at
height incidents.
• Enhancements to our paperless
reporting system has led to an
increase in proactive health and
safety inspections and shared
learnings across the Group.
Future actions
• Launch a ‘B-Safe’ behavioural
programme across the business
to improve health and safety culture.
• Explore the use of artificial
intelligence to create health and
safety training videos.
8 Interest rate, currency, liquidity and credit risk
Risk description and impact
The Group requires ongoing access
to funding to support its current
operations, future growth, and
acquisitions. Additionally, the Group
faces financial risks related to
borrowings and foreign currency
fluctuations in certain areas.
Strategic
enabler
Oversight
Group Risk
Committee
Mitigation strategy
Each site has access to the Group’s
overdraft facility, with bank balances
being monitored daily by the Group
Finance Team.
All bank debt is managed centrally,
ensuring adequate headroom is
consistently maintained. The Group
also utilises currency hedging
strategies to mitigate risks from
foreign currency fluctuations.
Actions in 2024/25
• Continued to monitor our
currency, liquidity, interest, and
customer credit risks during the year
and ensured that the Group’s
borrowing facility
remains appropriate.
Future actions
• Continue to review and ensure the
Group’s funding requirements
are appropriate.
9 IT systems and cyber security
Risk description and impact
The Group is vulnerable to IT
system failures and cyber attacks.
These incidents could affect
operations, financial performance,
and pose a threat to the
confidentiality and availability
of system data.
Although there have been no
significant cyber security breaches
during the year, there have been
several incidents in the food industry
and the Board remains mindful of the
ongoing risks in this area due to the
growing sophistication and evolving
nature of these threats.
Strategic
enabler
Oversight
Cyber Security
Steering
Committee
Group Risk
Committee
Mitigation strategy
The Group has a strong IT control
framework that follows the National
Institute of Standards and Technology
2.0 (NIST 2.0) requirements, which
are regularly reviewed and tested by
internal teams and external specialists.
Cyber insurance is also in place
across the Group, offering financial
protection as well as expert technical
and legal support in the event
of a significant cyber incident.
Actions in 2024/25
• Significant improvements made
to vulnerability management
and infrastructure resilience
(e.g. network segmentation),
which have been independently
assessed against NIST 2.0 and
EU Directive NIS2.
• IT disaster recovery and continuity
plans have been developed for
each site. Incident response plans
have also been tested with
senior management.
Future actions
• Investment in extended detection
and response services to enable
24/7 threat monitoring, cyber
security awareness training and
third-party monitoring.
• Continue to mature our system
failover and recovery capabilities.
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10 Food scares and product contamination
Risk description and impact
The Group faces the risk of both
accidental and intentional
contamination of products or raw
materials, as well as potential
industry-wide health concerns
related to food safety. Such incidents
could result in costs for product
recalls, harm to the Group’s
reputation and regulatory fines.
Strategic
enabler
Oversight
Group Risk
Committee
Mitigation strategy
The Group ensures that all raw
materials can be traced back to their
original source. Manufacturing sites,
suppliers, storage, and distribution
systems are consistently monitored.
Additionally, the Group has
implemented crisis management
procedures to minimise potential
impacts and enhance communication
with key internal stakeholders.
Actions in 2024/25
• Utilised artificial intelligence
technology to introduce a
‘Cranswick Training Academy’ to
upskill employees in food safety.
• Provided further focus on food
safety related research and
development projects.
Future actions
• Introduce improved solutions
technology to detect foreign bodies.
• Further our industry leading
position by enhancing the approach
to technical audits.
11 Pig meat availability and price
Risk description and impact
The Group is particularly vulnerable
to issues related to the availability and
price of pig meat. A shortage of pig
meat or rising prices could adversely
affect the Group’s operations and
our ability to supply key customers.
Strategic
enabler
Oversight
Group Risk
Committee
Mitigation strategy
The Group benefits from a reliable,
long-established farming supply
network, complemented by supply
from the Group’s own farms, which
has been notably expanded through
acquisitions and investment over
the past year.
Actions in 2024/25
• The acquisition of JSR Genetics
and Piggy Green Farms, as well as
investment in our own farms, has
helped to build self-sufficiency
of supply.
• Continued focus on initiatives to
build supply chain resilience.
Future actions
• Seek opportunities to further
enhance the Group’s integrated
supply chain model.
12 Disruption to Group operations
Risk description and impact
Major incidents, such as fires, floods,
or the loss of essential utilities, along
with the failure of critical machinery,
could lead to extended disruptions in
site operations and impact the ability
to meet customer demands.
Strategic
enabler
Oversight
Group Risk
Committee
Mitigation strategy
Crisis plans are established,
and insurance coverage is in place
across the Group to reduce financial
losses. Business disruptions are
minimised by potentially leveraging
multiple sites to maintain operations
for many of the Group’s core
product lines.
Actions in 2024/25
• In consultation with a third-party
specialist, the Group has updated
and enhanced its existing
crisis manual.
• Completed an annual review of
insurance arrangements to ensure
they remain appropriate.
Future actions
• Conduct a Group-wide simulation
exercise using the updated
crisis manual.
PRINCIPAL RISKS AND UNCERTAINTIES
CONTINUED
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 2028 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 on pages 79 to 82
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;
labour availability and cost; disease and
infection within livestock, in particular focusing
on an outbreak of Avian Influenza, African
Swine Fever and Foot and Mouth Disease
in the UK and Europe; 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 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 and the Foot and Mouth
Disease in the UK and Europe.
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. The assumption was
made that the tangible effects will commence
promptly following the signing of the Group’s
Financial Statements in June 2025 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/Foot and
Mouth Disease, 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 (‘AI’) 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 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 25 March 2028.
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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 and Sustainability 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 34
to 42 and on pages 49 to 51.
The Group’s work on procurement and animal welfare
are discussed on pages 62 to 65.
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 53 to 58.
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
Group Healthy Eating 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 53 to 73.
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 79 to 82.
Description of the
business model
See pages 8 to 11.
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 assists us in making 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 of 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 practices 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 52
weeks ended 29 March 2025, 26
whistleblowing reports were received and
investigated, which related predominantly
to human resource related matters. In the year,
five whistleblowing grievances were raised in
relation to bullying and harassment, three
for health and safety matters, seven on
discrimination and work relations, six concerns
over pay rates and conditions, and five in
relation to inappropriate behaviour.
Our Strategic Report for the 52 weeks ended
29 March 2025, from the inside front cover
to page 84, has been reviewed and approved by
the Board and is signed by order of the Board.
Steven Glover
Company Secretary
20 May 2025
CORPORATE
GOVERNANCE
86 Chairman’s Overview
88 Board of Directors
90 How we are Governed
92 Stakeholder Engagement
94 Board Activities
99 Governance Framework
101 Board Effectiveness
102 Board Leadership and Purpose
103 Compliance Statement
104 The ESG Committee
106 The Audit Committee
111 The Nomination Committee
115 The Remuneration Committee
121 Remuneration at a Glance
123 Annual Report on Directors’ Remuneration
134 Remuneration Policy
141 Directors’ Report
146 Statement of Directors’ Responsibilities
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Corporate governance
Implementing Governance Reform
The new Corporate Governance Code,
which will apply to the Company next year,
includes substantive changes relating to audit,
risk and internal controls which enhance the
Board’s obligation to monitor and report on
these. As indicated last year, in anticipation of
the proposed changes, the Audit Committee
initiated a project, 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,
to ensure full compliance by the Group within
the Financial Reporting Council’s deadlines
for implementation. I am pleased to confirm
that we have now largely completed this work
ahead of the required schedule. We will be
in a position to fully comply with these
requirements during the course of the
current year.
In connection with the forthcoming
requirements of the UK Corporate Governance
and recent introduction of new Global Internal
Audit Standards, we have reorganised our
internal resources and established a long-term
co-sourcing arrangement with third-party
consultants, enabling a more flexible,
technology-driven approach with enhanced
expertise to support Board oversight and
governance. The Board has also approved
significant additional investment in the Group’s
IT capacity and cyber security to help mitigate
risks that are becoming increasingly prevalent
in our sector. Further details of our approach
to risk and our governance controls
environment are set out in pages 75 to 77
of the Strategic Report and the report of the
Audit Committee on page 106.
Sustainability
Our ESG Committee has continued to
develop over the year, overseeing the review
of our Science Based targets to reflect Forest
Land and Agriculture Guidance (‘FLAG’),
which we are aiming to finalise later this year
to take a consistent approach to our key retail
customers. The evolution of our work on
ESG related matters builds on the very strong
foundations of our well established Second
Nature programme.
We are also proposing changes to our
Executive Director remuneration to reflect
our deeper understanding of the achievability
of the environmental and sustainability
targets set over three years ago and how
these interact with the Group’s strategic plans
and developments in the business over recent
years. Following consultation with our major
shareholders, we have decided that ESG
metrics will be removed from LTIP awards
granted in 2022, 2023 and 2024 (in relation
to which the weighting of financial and
shareholder return metrics will be increased)
and will instead feature as part of the
assessment of Directors annual bonuses going
forward. This will provide greater flexibility to
set and measure achievement against targets,
so they are relevant and consistent with our
strategy. We agreed to this because, as
structured, existing metrics failed to recognise
the significant achievements of the Group in
relation to sustainability, which is explained in
more detail in the Remuneration Committee
Report on pages 115 to 120.
I appreciate there will be a range of views in
relation to the approach being taken, however,
this should not in any way be interpreted as the
Group rowing back on its sustainability
commitments. Our Sustainability Report on
pages 34 to 42 underlines our continuing
commitment to operating our business in
an environmentally sustainable way and has
informed our understanding of how this can be
influenced by management decisions, given
available technology and our business growth.
Executive Director remuneration will still be
dependent on ESG performance going forward
through annual bonus metrics and the
Remuneration Committee will retain discretion
to reduce awards under the 2022, 2023 and
2024 LTIP awards where progress on our
sustainability priorities is poor or not aligned
with our external sustainability commitments.
Further details of the ESG Committee and its
activities are set out in the ESG Committee Report
on pages 104 to 105.
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. The Board
also aided management in a review of the
Group’s long-term strategy and related plans.
Topics considered by the Board during the
year are set out on pages 94 to 96 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
53 to 73 of the Strategic Report.
Matters considered by the Board covered
strategic concerns outlined above and included
keeping a number of regulatory developments
relevant to the Group’s business under review
such as the proposed Employment Rights Bill
and new Fair Dealing Obligations introduced
relating to pig producers. The Board engaged
with relevant Government Departments,
ministers and industry groups on a number of
issues relevant to the delivery of the Group’s
strategic plans, notably the impact of planning
regulations and requirement for reform and
limited availability of key utilities such as water.
The Board also reviewed a range of strategic
investments in the Group’s existing facilities
and through business acquisitions (such as JSR)
which give the Group further control over its
supply chain to enable continuity of supply to
its retail customers. The Board believes food
security and the ability to deliver to retailers
and consumers will be a key differentiator for
the Group and will vindicate its long-term
investment approach.
Board effectiveness was reviewed through an
internal process this year which is reported on
page 101 of the Governance Report. This year,
in accordance with good practice we will be
commissioning an independent external
review of our governance arrangements and
developments we have undertaken over
recent years.
Board succession and diversity
During the year, we appointed Rachel Howarth
as a Non-Executive Director. 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. Rachel also succeeded Liz Barber
as the Chair of our Remuneration Committee
from July 2024. Details of the process
undertaken in relation to the appointment of
Rachel were set out in last year’s Nomination
Committee Report.
The Nomination Committee also reviewed
diversity policies and initiatives, to which we
remain committed. We also considered various
voluntary disclosure requirements being
promoted relating to ethnic diversity, which we
have undertaken to adopt and are on track to
report against next year, having now completed
the introduction of new systems which were
needed to enable us to capture relevant data
accurately. 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 113 of the Nomination
Committee Report and on page 157 of the
Strategic Report.
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
20 May 2025
“As we celebrate Cranswick’s
50th anniversary, we are
mindful in challenging times
of our responsibility to continue
to deliver the solid performance
and continued growth for
which the Group has become
known over many years.”
Tim J Smith CBE
Chairman
We are a significant part of a food
system that grows the economy,
feeds the nation, and protects the
planet. We are conscious that our
stakeholders from shareholders
and employees to the consumers
that eat our products, depend
on the Group to deliver reliable
consistent performance, whether
this be in the form of returns
on investment or the delivery of
high quality, safe and affordable
food, whilst taking care to limit
our impact on the environment.
As the Group continues to promote growth
and innovation through its vertically integrated
business model, the Board considered the
impact on our stakeholders as we continue
to promote delivery of the Group’s strategy,
some of the key features of which are explained
further below.
Navigating challenges
Since our last Annual Report & Accounts
were published, we have seen a new Labour
Government elected in the UK, which has
introduced a range of policies and new
measures to address its manifesto commitments
and the economic position of the UK.
This included the budget in the Autumn that
introduced significant increases in our costs
through increases in employer’s National
Insurance contributions and the National Living
Wage. There were new unexpected changes to
the inheritance tax regime for farmers which
further threatened to destabilise supply chains.
It was disappointing that food was excluded
from the new government’s industrial strategy
although the government has recently
established a new body to deliver a standalone
national food strategy. The strategy will link
food policy with health, address barriers to
investment, promote fairness and reduce the
impact that the food system has on the planet.
The Group regards each of those priorities as
being central to its own strategic purpose but
in the face of continued planning related
frustrations we wonder if the ambition and pace
of change needed will lower the barriers to
investment we are currently facing. The impact
of government not addressing these priorities
will increasingly impact on UK food security
and resilience.
The new presidency in the US has had a
profound impact on international trade through
the introduction of a tariff policy which has
resulted in wide scale economic uncertainty.
Added to this, the continuing war in Ukraine
(and the terms of any post conflict settlement)
continue to add uncertainty to European
markets and supply chains.
The Board has to consider the challenges
faced when considering how to implement
its strategy. We remain agile and adaptable,
whilst continuing to focus on achieving our
long-term strategic plans. This also requires
us to continually keep under review the
varying interests of our various stakeholders
as conditions change. We have a good track
record of delivering our strategy over recent
years when we have faced the major challenges
of Brexit, the Covid-19 pandemic and,
subsequently, a period of elevated inflation.
The fundamentals underpinning Cranswick’s
strategy remain unchanged. Increasing concern
about UK food security and reliance on extended
supply chains in an environment of political
instability and change globally, vindicate the
Group’s approach of vertically integrating its
supply chains to mitigate risk. This also gives us
an added competitive advantage to many of
our competitors who have a greater reliance on
vulnerable extended supply chains. We do this
whilst continually developing our Second Nature
sustainability strategy to make meat
more sustainable.
The challenges faced require our corporate
governance processes to consider and balance
a wide range of resulting stakeholder
considerations. At times our growth is hindered
by others. This has been most graphically
illustrated this year by the opposition to various
plans to develop new facilities. Regulatory and
local concerns were perceived to be at odds
with the plans to grow our business, integrate
supply chains and increase UK food security in
relation to proteins, fundamental to our food
needs. The Board is mindful of this and the
requirement to make difficult decisions.
We have explained in our Strategic Report
and on pages 92 to 93 of the Governance
Report how we have discharged our
responsibilities and 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 103 which explains those areas where
we have deviated from the Code and, where
appropriate, actions taken to address these.
CHAIRMAN’S OVERVIEW
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
BOARD OF DIRECTORS
TIM
SMITH CBE
ADAM
COUCH
MARK
BOTTOMLEY
JIM
BRISBY
CHRIS
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
E* N* R
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’).
Before joining the FSA,
Tim led a number of food
businesses including Arla
and Sarah Lee as CEO.
For Government, Tim has
also chaired the Trade and
Agriculture Commission
and now the Food and Drink
Sector Council. 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.
None.
Non-Executive Director
of Vp plc.
Pork Sector Council
Member at Agriculture and
Horticulture Development
Board (‘AHDB’).
None.
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
Audit Committee
Environment, Social
and Corporate
Governance Committee
Committee
Membership
A
E
Chair
*
R
Remuneration
Committee
Nomination Committee
N
LIZ
BARBER
ALAN
WILLIAMS
YETUNDE
HOFMANN
RACHEL
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.
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, and is Chair of the
Remuneration Committee.
A E N R
A* E N
A E N R
E N R*
Yes
Yes
Yes
Yes
Liz has a broad experience
of a range of sectors and
companies. She was with
Ernst & Young for 23 years
where she was a partner
from 2001 and had a wide
range of clients, including
Cranswick, where she was
audit partner between
2003 and 2007. In 2010,
she joined Kelda Group as
group CFO, becoming
CEO in 2019 and retiring
in 2022. She is a Fellow of
the Institute of Chartered
Accountants in England
and Wales (‘ICAEW’),
where she is a member of
the Board and previously
chaired its Sustainability
Committee. Liz was Chair
of the Yorkshire and
Humber Climate
Commission from 2021
to 2025, and of the Prince
of Wales’s Accounting
for Sustainability
CFO Network.
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
Chartered Institute of
Management Accountants.
Yetunde has experience
gained in mergers and
acquisitions, business
operating model
transformation,
organisational capability
development and growth
and international expansion.
She is the Managing
Director of Synchrony
Development Consulting,
an international leadership
and change consultancy,
and the founder of Solaris
Global Executive Leadership
Development Academy.
Recognised by the African
Business Chamber in 2024
as one of the top 100
outstanding UK African
Business Leaders. 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 38,000
people in over 850 Premier
Inn hotels and restaurants
across the UK. Rachel was
previously the Group HR
Director with SSP Group
plc, before which she spent
16 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.
Non-Executive Director
of Nichols plc.
Executive Director of Travis
Perkins plc between 2017
and 2024.
Managing Director of
Synchrony Development
Consulting and The
Enjoyable Life Series CIC.
Founder of Solaris Global
Executive Leadership
Development Academy.
Non-Executive Director
of Treatt plc between 2019
and 2023.
None.
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
HOW WE ARE GOVERNED
Attendance
There were eight 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 in the
table below.
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 106 to 110 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.
Board
Audit
Committee
Nomination
Committee
Remuneration
Committee
ESG
Committee
Meetings held during the year
8
4
1
5
3
Meetings
attended
Meetings
attended
Meetings
attended
Meetings
attended
Meetings
attended
Executive Directors
Chris Aldersley
8/8
N/A
N/A
N/A
3/3
Mark Bottomley
8/8
N/A
N/A
N/A
3/3
Jim Brisby
8/8
N/A
N/A
N/A
3/3
Adam Couch
8/8
N/A
N/A
N/A
3/3
Non-Executive Directors
Liz Barber
8/8
4/4
1/1
5/5
3/3
Yetunde Hofmann
8/8
4/4
1/1
5/5
3/3
Tim Smith
7/81
3/41
1/1
5/5
3/3
Alan Williams
8/8
4/4
1/1
N/A
3/3
Rachel Howarth
6/82
N/A
1/1
4/52
2/32
1. Tim Smith was unable to attend one Board meeting and Audit Committee meeting due to extenuating circumstances. He attends the Audit Committee meetings as an observer.
2. Rachel Howarth was appointed as a Director on 30 April 2024 and attended the April meetings of the Board, Remuneration Committee and ESG Committee as an observer. She did not attend the July
Board meeting due to a long-standing conflicting commitment prior to her appointment as a Director, which was approved by the Board.
N/A: not applicable (where Director is not a member of the Committee). Executive Directors attend the various Committee meetings by invitation as required.
Board membership and attendance
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.
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 92 and in our Section 172(1)
Statement on pages 53 to 73.
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 93.
Details of the Company’s major Shareholders
are set out on page 142.
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
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 UK Government advisory
bodies such as the UK Government’s Food and
Drink Sector Council 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 reported at
regular monthly management meetings
attended by the Executive Directors, who,
where appropriate, engage directly and share
their insights at scheduled Board meetings.
Details of Board engagement with our
workforce and investors is described as follows.
Workforce engagement
We have 11,947 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 485 permanent part-time employees,
and 3,024 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.
The Group has appointed Yetunde Hofmann
as designated Non-Executive Director
responsible for workforce engagement
(‘ENED’). Yetunde engages with a wide and
diverse cross-section of the workforce that
goes beyond, without excluding, established
Works Councils that our engagement has
previously focused on.
The purpose of employee engagement is to
understand what it is really like to work at
Cranswick and to assess the extent to which our
culture is conducive to the successful execution
of our strategy and contributing to the purpose,
vision and long-term success of the Group.
The key aims of our engagement process are to:
• develop the understanding of the culture
of the Group in the context of the employee;
• enable greater insight into issues and
differences experienced by our workforce
at all levels; and
• enhance the ability of the Board to make
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 the following:
• Managing the process on behalf of the
Board, including setting standards in
relation to the format of meetings and
key engagement topics to be raised.
• Liaising with colleagues in HR and
management (in particular the Chief
Operating Officer) to facilitate meetings.
• Coordinating and attending site visits and
engaging with local employees.
• Coordinating online cross-company
engagement forums and meetings with
the Group’s Diversity, Equality and
Inclusion Committee.
• Issuing regular reports to the Board raising
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 the
Group’s activities and geographic regions that
we operate in. The businesses visited included
both manufacturing facilities as well as farming
and agricultural businesses, and included
revisiting one site visited last year to review
progress made. Other Non-Executive Directors
are encouraged to also participate in employee
engagement and joined in a number of the
ENED visits.
Key themes that were evident from the ENED
visits included the following.
• Accessibility of site leadership: It was clear
that site leadership is generally accessible
and open to constructive challenge and
reflective in relation to the concerns of
workers. However, there is scope for further
improvement in relation to communication
(see following page).
• Terms and conditions: There was a general
appreciation that the Group’s terms and
conditions were competitive and included
attractive wider benefits with a particular
focus on the opportunity for all employees
to participate in the success of the Group
through its SAYE scheme, in which a
significant proportion of the
workforce participate.
• Health and safety: Across the Group there
was a clear understanding of the importance
of health and safety and ensuring that
colleagues have a safe working environment,
and the steps being taken to address any
risks identified.
• Community engagement: While community
engagement is undertaken across the
facilities, the ways in which this is
implemented varies with the opportunity
to develop examples of best practice across
the Group. There was a general appreciation
of the need for the Group to be a good
corporate citizen where it operates.
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: This continues to be a
theme where further development is
required to ensure that the Group’s strategy
and purpose is explained and developed into
a site-based strategy that is relevant to
individual businesses and their different
cultures and ethnicities. In particular, it was
noted that where the Group undertakes
M&A that is directly relevant to a site and
requires integration, there is an opportunity
to provide greater explanation and context
to those involved. It was also clear that, while
the Group provides significant opportunities
for further training and advancement for
colleagues, the scope of what is available
could be more widely communicated.
The Group has developed a plan to help
improve communication and organises a
number of strategy days where the Group
strategy is articulated to wider management
teams and online presentations by senior
management, which are open to all
employees, where there is the opportunity to
participate in Q&As . There has also been a
greater use of site-based ‘town hall’
meetings, which will be further expanded.
• Exposure to senior management: There was
a general desire to have more interaction with
Group Senior Executives and Group central
functions at individual sites, which reflected
the pride and ownership that employees had
for their sites and wanting to be able to
demonstrate this to senior management
directly. While senior management undertake
a significant number of site visits, as the Group
has continued to expand its businesses and
number of facilities, this has inevitably had an
impact on the amount of time that senior
executives can devote to individual sites.
However, the Group has now restructured its
management calendar to create greater scope
for individual site visits by management and
will continue to develop communication
through interactive online participation.
• Health and wellbeing: While there was a
general appreciation of the importance of
health and safety, colleagues emphasised the
requirement for the Group to help address
stress in the workplace given the challenging
and often time pressured nature of the
Group’s operations, and also mental health
challenges faced more generally by our
colleagues given the increasing cost-of-living
pressures. The Group is addressing this by
training a number of ‘mental health
champions’ at each of its sites and is running
face-to-face workshops specifically designed
for colleagues to raise awareness about
mental health in the workplace and to create
a more open environment for discussing
mental health and wellbeing. In particular,
this is being promoted to colleagues in line
management positions to enhance their
understanding in this area and build
confidence when engaging with their teams,
and to learn how to effectively signpost
colleagues for additional support. The Group
has also made an online GP facility available
to all employees, which includes mental
health-related counselling. Further details of
steps being taken to support our colleagues
are set out on pages 56 to 58 of the
Strategic Report.
• Staff facilities: As the Group has expanded
its operations at existing sites, some of its
facilities have experienced greater wear and
tear, and while these continue to be properly
maintained, an ongoing refurbishment and
expansion programme is required,
particularly at some of our longer established
sites. Having well invested staff facilities is
important to attracting and retaining our
workforce and demonstrates the value the
Group attributes to its employees.
The Group is undertaking significant capital
investments across its operations and in
addition to ongoing maintenance, its major
investments include upgrading and
improving staff facilities, although we are
conscious this sometimes has to fit within site
development plans over the medium-term,
rather than being addressed immediately.
Investors
Engaging with shareholders 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, such as the Capital Markets Day
presentation. 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 91 to 92.
CORPORATE GOVERNANCE
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Corporate governance
The Board met regularly
throughout the year to discharge
its duties. There were eight
scheduled meetings that were
held at the Group’s head office
and operational sites, which were
combined with site tours and
meetings with operational
management. Details of
attendance at meetings can be
found on page 90.
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 and
Second Nature Committees.
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 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 96, 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
53 to 72 of the Strategic Report. In addition to
these factors, the Board also considers the
interests and views of other stakeholders,
including regulators and government bodies.
Further details of some of the more significant
matters considered by the Board and how these
have influenced decisions during the year are
set out as follows.
Governmental action
The change in UK Government following the
election in 2024 has resulted in a range of tax
and policy changes introduced, or subject to
consideration, which are likely to have an impact
on the Group’s activities. These changes
include matters that both directly affect the
Group and those that will have a significant
indirect impact on its supply chains. Over the
last six months, the Board has reviewed these
changes and, where appropriate, made
representations to the Government in relation
to policy changes being considered both
directly and through its support for
industry bodies.
In particular, the Board has focused on the
impact of the Autumn Budget and changes to
employer’s National Insurance and the National
Minimum Wage, which were implemented in
April 2025. While these changes have not had
a significant impact in the current year,
they represent material additional costs for
2025/26, both for the Group and much of
its supply chain. These changes highlight
the importance of the Group’s investment in,
and focus on, Lean Processing to support
its strategy.
As labour costs continue to rise, the Board has
overseen significant new investments in the
Group’s existing facilities at Worsley, Eye,
Kenninghall, and its Cooked and Prepared
Poultry facilities in Hull to increase production
capacity and efficiency, helping to mitigate the
impact of these cost increases (further details
can be found on pages 24 to 25 of the Strategic
Report). Shareholders remain the Group’s key
stakeholders, and continued investment in
efficiency improvements is intended to ensure
the Group can generate attractive returns on
capital, despite these challenges. Additionally,
these investments create a competitive
advantage over other companies who fail to
invest at a comparable pace.
The Board has also overseen the Group’s
engagement with key stakeholders across its
supply chain and retail customers, with whom
it is increasingly entering into longer-term
commercial arrangements. These agreements
help to address and mitigate the inflationary
pressures resulting from such changes.
We regard our employees as important
stakeholders in the Group’s business, and the
Board considers it essential that their working
environment and terms and conditions remain
attractive. However, the Board also considers
it important that the Group can operate its
business in a flexible and efficient manner
to deliver its strategy, which it believes is in the
long-term interests of all stakeholders,
including its employees. The Board continues
to monitor the Government’s proposed
changes to employment legislation, particularly
their impact on the cost and flexibility of both
the Group’s business and its supply chain.
The Board has also reviewed and overseen the
Group’s involvement in developing the new Fair
Dealing Obligations, which will apply to pig
supply chains with independent producers and
are due to take effect over the summer.
The Board has always recognised the
importance of independent farmers as
stakeholders in the Group’s supply chain and
the need to engage with them fairly, which the
new regulations seek to reinforce.
While the Board remains concerned about the
increasing regulatory burden on business, the
associated costs, and the potential for
unintended consequences, we acknowledge
the importance of our supply chains and the
additional assurance these regulations aim
to provide. The Board believes that a healthy
independent producer market is essential
to the Group’s pig supply chain and UK
food security.
While the Government’s new Fair Dealing
Obligations are intended to support the
independent pig producer market, there has
nevertheless been an overall decline in pig
herds, which is covered in more detail on page
19 of the Strategic Report. The Board is
concerned that the long-term impact of the
proposed changes to inheritance tax
introduced in the Autumn Budget and current
uncertainty over the farm subsidy regime will
further undermine the independent pig
producer market, that has driven further
investment in the Group’s supply chain, which
is discussed below.
Supply chain security
The UK farming sector faces a number of
challenges at a time when UK food security and
the ability to produce our own food is becoming
increasingly important in the face of global
challenges and uncertainty. As indicated, the
UK pig herd has contracted leading to pig
supply tightening, and the UK poultry sector is
also experiencing 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 UK is also faced with reduced
production of other proteins, such as beef and
lamb. This is resulting in increased reliance on
imports. Recent changes to the UK inheritance
tax regime and uncertainties relating to UK
farm subsidies, as previously mentioned, have
compounded the issue, with UK farmers
increasingly considering exiting the sector
and/or reducing their level of investment.
The Group has addressed these concerns
through the expansion of its UK supply chain
with the acquisition of the JSR indoor pig
farming businesses in East Yorkshire to increase
the size of its indoor pig herd and to add pig
genetics capacity to increase supply chain
efficiency and security. Further acquisitions of
pig businesses have also been completed in
East Anglia to boost our self-sufficiency in
outdoor pigs. The Group is also developing its
existing businesses through further investment
in its herds and farming infrastructure, including
upgrading and establishing new pig and
poultry facilities.
While a key part of the Board’s assessment
when considering the Group’s investment
strategy is the efficient allocation of the Group’s
capital and the expected return on investment,
the Board has accepted that lower rates of
return will typically be achieved on land and
farming infrastructure. However, this has been
balanced with the strategic requirement to
enhance supply chain security and the ability to
generate returns over the longer term.
Increasing the level of integration and
investment in our supply chain reflects the
importance placed by our retail customers and
consumers on security of supply. The Board has
taken this into account when considering
supply chain investments. While price remains
important, 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 who lack integrated supply
chains. Greater visibility in our supply chains
also makes pricing 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 are associated with
both pig and poultry farming. It is mindful that
its environmental performance also influences
how it is perceived by investors and by
colleagues who want to work for a company
committed to reducing its environmental
impact. Sustainability has been a key factor in
the Group’s investment decisions, particularly
in areas such as regenerative agricultural
systems, which are highlighted on page 36 of
the Strategic Report, where the Board balances
increased costs with its Second Nature
sustainability commitments and targets.
Further details of sustainability considerations
are set out on pages 34 to 42 of the
Strategic Report.
The Board is conscious that the expansion
of the Group’s supply chain activities can have
a significant impact on local communities,
particularly in rural areas. These concerns are
taken into account when designing and
implementing our investment projects, which
seek to limit the impact on the areas we operate
in. While the investment and job opportunities
created are often welcomed by employees and
local communities, reactions in some areas are
more mixed. Notwithstanding its efforts, the
Group faces challenges in balancing the
concerns of all of those who object to its
investment projects. In particular, despite
addressing regulatory concerns, the Group has
faced significant opposition to its expansion
plans in East Anglia, limiting investment in the
region and efforts to address food security
through the development of modern and
efficient agricultural businesses.
BOARD ACTIVITIES
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
Promoting our culture
One of the key responsibilities of the Board
is to promote 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, as well as their history within the
Group. Local responsibility and drive promote
our success, but are nevertheless supported
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
foster a strong safety culture in the workplace,
taking prompt action to address any concerns
and ensure colleague wellbeing. Details of
health and safety performance are set out
on page 58 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 29 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 of 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.
BOARD ACTIVITIES
CONTINUED
Link to Principal Risks
See pages 78 to 82 for more information.
Strategy
Undertaking a review of the updated Group’s Strategic Plan.
• Climate change
• Reliance on key customers and exports
• Consumer demand
Ongoing review of strategy implementation at Board meetings
throughout the year.
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 and infection within livestock
• Interest rate, currency,
liquidity and credit risk
• Pig meat availability and price
Receiving reports from Board Committee Chairs.
Approving the Group’s budget.
Reviewing and approving the Group’s Annual Report and Accounts, interim
results and trading updates.
Approving capital expenditure proposals and leases in excess of £2 million
and certain key commercial contracts.
Approving the Company’s dividend strategy and recommending the 2023/24
final dividend and 2024/25 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 83).
• Disruption to Group operations
• Food scares and
product contamination
• Health and safety
• IT Systems and 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 and safety, risk, cyber, ESG and technical updates.
Overseeing of the Group’s whistleblowing arrangements and reports.
Sustainability
Considering the Group’s sustainability strategy, Second Nature.
• Climate change
Reviewing the performance against 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 Senior Executives.
• Labour availability and cost
• Recruitment and retention
of key personnel
Reviewing the Group’s 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.
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
How the Board monitored culture in 2024/25
Action taken
Link to culture
Directors undertook site visits.
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 92 and 93 of the Governance Report.
Sponsored Group-wide colleague surveys and considered
responses provided.
These facilitate the Board in obtaining feedback from colleagues on how the business is
operated and led, and enable a critical review of the Group’s culture. The Board reviews
and monitors response rates, which supports its understanding of colleague engagement
and their awareness 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 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 the 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
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 independent. The Executive
Directors have responsibility for particular
functions, which are set out on page 102, 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 and Corporate
Governance (‘ESG’) Committee, Audit Committee, Nomination
Committee and Remuneration Committees are set out on pages 111
and 115 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
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Corporate governance
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. While 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.
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 29 March
2025 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 advisers and other professional bodies.
In the past year, the Board received updates
and training on a number of topics including
various technical presentations 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 29 March 2025 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
Yetunde Hofmann
Alan Williams
Rachel Howarth
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:
• continuing 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; and
• 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. While the Directors
were considered to have the necessary skills
required for the effective governance of the
Company, a requirement was identified for
further training for more recently appointed
Non-Executive Directors to enhance their
understanding of some of the sectors and
markets which the Group operates in, that is
being addressed with more specific training
and exposure to our operations being
scheduled. It was also agreed that further
resource should be added to the secretariat
support to assist in the administration and
operation of the Board and its Committees.
The report also considered continuing progress
in relation to the recommendations made
against areas identified for further
improvement by the independent external
assessment of Board effectiveness undertaken
by Clare Chalmers in 2022/23, which included
the following:
• A more central role for the Board in
articulating and overseeing strategic aims
of the business. The review concluded that
there had been a greater focus by the Board
on strategic matters at scheduled meetings
over 2024/25 with presentations and
deeper consideration being given by the
Board to a number of the Company’s key
sectors during the year. The Board also
undertook a separate strategy review, which
involved a detailed review of the Group’s
five-year strategy and related budgets.
• Consideration of the frequency and
duration of Board and Committee
meetings with less emphasis on
operational matters. The Board schedule
has been reduced to eight scheduled
meetings, with a greater focus on strategic
topics, which was considered to have worked
well over the year.
• The need for a more formal, structured
approach to long-term executive
succession planning. A formal succession
plan review was undertaken by the
Nomination Committee during 2024/25
when a wider range of key roles was
considered, and a timetable for the
implementation of succession plans was
agreed. This also involved reviewing the
succession pipeline within the Group and
where necessary agreeing further
development plans.
• A deeper understanding of certain risks
faced by the Group and to test the Board’s
appetite for risk. The Group’s approach to
risk assessment and embedding this within
its decision making has been reviewed with
the help of external consultants and a formal
in-depth review of the Board’s risk appetite
has been undertaken, which is reflected in
the principal risks and uncertainties
summarised in the Strategic Report on pages
78 to 82. While significant progress has been
made during the year, further work is being
undertaken to ensure the Board’s risk
appetite is embedded in its decision making.
• Further development of the ESG
Committee in relation to the social aspects
of its remit. Further consideration will be
given generally to the remit of the ESG
Committee through an externally facilitated
review to be undertaken later in 2025.
In accordance with good governance practice,
the Board will be commissioning a further
independent review of its effectiveness later in
2025/26, which will be reported in next year’s
Annual Report and Accounts.
GOVERNANCE FRAMEWORK
CONTINUED
BOARD EFFECTIVENESS
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
BOARD LEADERSHIP AND PURPOSE
COMPLIANCE STATEMENT
This report, together with
the ESG Report on pages 104
to 105, the Audit Committee
Report on pages 106 to 110,
the Nomination Committee
Report on pages 111 to 114,
and the Remuneration Committee
Report on pages 115 to 133,
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 52 weeks ended 29 March 2025,
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.
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 116
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
20 May 2025
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.
• 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).
• Chairs the Remuneration Committee (Rachel Howarth).
• 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 Chair, 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
CORPORATE GOVERNANCE
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Corporate governance
THE ESG COMMITTEE
The ESG Committee oversees
the governance of the Group’s
sustainability plans, focusing
on environmental and social
sustainability, as well as stakeholder
engagement with our customers,
colleagues, suppliers, shareholders,
and communities. As Chair of the
ESG Committee, I am pleased to
introduce this report for the 52
weeks ending 29 March 2025.
Tim J Smith CBE
Chair of the ESG Committee
Composition of the ESG Committee
The ESG Committee comprises the
following Directors:
Committee members
Meetings attended
Tim Smith – Chair
3/3
Liz Barber
3/3
Yetunde Hofmann
3/3
Alan Williams
3/3
Rachel Howarth
2/31
Adam Couch
3/3
Mark Bottomley
3/3
Jim Brisby
3/3
Chris Aldersley
3/3
1. Rachel Howarth was appointed as a Director on 30 April 2024
and attended the April meeting of the ESG Committee as an
observer. She did not attend the July Board meeting due to a
long-standing conflicting commitment prior to her
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.
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.
Principal role and responsibilities
The Committee is responsible for:
• Overseeing our sustainability strategy,
Second Nature, and ensuring it is aligned
to the overall purpose and values of
the Group.
• Monitoring the Company’s progress and
performance against the Second Nature
strategy, including the performance against
key targets, transition planning and
assessment of risks and opportunities.
• Providing support and guidance on
sustainability-related issues and matters
as appropriate.
• Reviewing Cranswick’s engagement with
key stakeholders, including customers,
colleagues, suppliers, our communities
and shareholders on sustainability matters.
• Continued monitoring of external
developments in ESG environment.
• Approving any sustainability-related content
in the Annual Report and Accounts, as well as
standalone sustainability reports.
• For further details, please see the ESG
Committee Terms of Reference on our
website: www.cranswick.plc.uk.
Key activities in 2024/25
• Oversight of progress against the Group’s
updated Second Nature strategy.
• Received updates on the Group’s enhanced
communication plans relating to the Second
Nature strategy.
• Received updates on key activities and
discussion points taking place in the Second
Nature Steering Committee.
• Reviewed the updated TCFD disclosure
and challenged the extent to which
changes implemented enhanced alignment
with the Group’s broader internal risk
management framework.
• Evaluated updates to the Group’s Science
Based Targets in light of revised Forestry,
Land and Agriculture Guidance (‘FLAG’)
and assessed the implications for the Group’s
emissions reduction pathway.
• Reviewed progress of the creation of the
Group’s transition plan, aligned to the UK
Transition Plan Taskforce (‘TPT’), and how
this would influence the Group’s approach
to strategy and any future updates to
Science-Based Targets.
• Received updates on the Group’s rating
agency scores, and where appropriate,
challenged management on areas
requiring improvement.
• Reviewed stakeholder engagement
activities across key stakeholder groups,
including investors, colleagues, customers,
key suppliers and wider communities.
• Maintained oversight of the Group’s
environmental policies, including those
relating to Environment and Energy, Waste,
Water and Deforestation.
• Received and reviewed updates on the
strategic decision to cease the purchase of
carbon credits, with funds being redirected
to an internal carbon fund supporting
sustainability-focused initiatives (see
page 40).
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.
Since its introduction in 2018/19, the Group’s
Second Nature sustainability platform has
continued to evolve and strengthen, becoming
an integral part of the overall business strategy.
While the landscape of sustainability remains
complex and presents ongoing challenges,
the Group continues to adopt a pragmatic and
well-informed approach to decision making in
this dynamic and continually developing area.
As Chair of the ESG Committee, I am
supported by Committee members who
collectively bring a diverse and extensive
range of business expertise aligned to various
components of the Group’s ESG strategy.
Notably, Liz Barber contributes significant
experience in sustainability and water resource
management, gained during her tenure as
Chief Executive of Kelda Group. This expertise
is particularly valuable in advancing initiatives
under the Group’s environmental pillar (‘From
the land, for the land’). Yetunde Hofmann
brings a strong background in organisational
development and strategic transformation,
with a particular focus on leadership, change
management, and diversity, thereby offering
valuable insights in relation to the Group’s
social pillar (‘Thriving together with purpose’).
In my previous role as Group Quality Director
at Tesco plc, I held responsibility for Tesco’s
responsible sourcing agenda. This experience
has provided me with a deep understanding
of supply chain governance, ESG compliance,
and broader ethical considerations — all of
which are essential elements of the Group’s
wider ESG programme.
Sustainability strategy — environment
The Group’s Second Nature sustainability
platform, originally established in 2018/19,
was updated in 2024 to reflect the continuously
evolving sustainability landscape. The revised
framework offers a clearer structure, designed
to be easily understood by all stakeholder
groups, and provides enhanced guidance
on how environmental sustainability should
be embedded throughout all levels of the
organisation. Over the course of the year,
the ESG Committee was regularly briefed
on progress and the implementation of the
updated strategy across the Group.
Throughout the year, the ESG Committee
undertook deep dives into a number
of environmental sustainability issues.
These included a comprehensive assessment
of forthcoming changes to the Group’s
Science-Based Targets in light of updated
Forest, Land and Agriculture Guidance
(‘FLAG’). The Committee was provided with
detailed oversight of these developments
and the strategic considerations under review.
A final decision on the Group’s revised
approach is expected to be confirmed later
in the year once more guidance is available.
To support the Group’s response to the SBTi
FLAG updates, the Committee also received
updates on the UK Transition Plan Taskforce
(‘TPT’) and how this may shape future strategic
decisions regarding the Group’s transition to a
Net Zero operating model. Further information
on this can be found on page 38. These updates
offered valuable insight into the evolving
regulatory landscape and the implications
for both internal processes and external
disclosures. Additional briefings were also
provided on anticipated changes in reporting
requirements, including developments from the
International Sustainability Standards Board
(‘ISSB’) and the Taskforce for Nature-related
Financial Disclosures (‘TNFD’).
Sustainability strategy — social
This year, the Committee agreed and formally
approved a clear and structured plan to
enhance the Group’s approach to the social
pillar of its ESG strategy. This marked a
significant step forward in aligning social
initiatives with the broader ESG objectives.
The agreed framework sets out defined
priorities supported by measurable KPIs and
focuses on key areas including community
engagement, employee wellbeing, diversity,
equity and inclusion (‘DE&I’), and the protection
of human rights across the supply chain.
To ensure progress is evidence-based, the
Group has continued to monitor a range of
indicators such as employee survey results,
gender and ethnicity pay gap data, and detailed
engagement case studies. The Committee
also endorsed a long-term strategic focus on
improving social mobility through educational
outreach and initiatives aimed at alleviating
food poverty. This includes sustained
partnerships with local schools and colleges
which aim to deliver early years engagement,
careers advice, and meaningful work
experience opportunities, particularly for
students with Special Educational Needs
and Disabilities (‘SEND’).
The Committee also reaffirmed its support
for addressing food insecurity through
continued surplus food donations to charitable
organisations such as FareShare and local
food kitchens. These contributions are closely
monitored and reported in terms of both food
volumes and the number of beneficiaries
reached, further underscoring the Group’s
commitment to creating a measurable and
lasting positive social impact.
Risk
A core responsibility of the Committee is
to oversee the identification, management
and mitigation of climate-related risks, while
also ensuring that emerging opportunities
are appropriately assessed. The Group’s
climate-related risk analysis, presented in
the TCFD disclosure on pages 43 to 48 of the
Strategic Report, outlines the material risks
and opportunities identified, the rationale for
their materiality, and the actions being taken
to address them. The Committee’s work also
encompasses consideration of the Group’s
resource and capital allocation, to ensure
maximisation of risk mitigation and opportunity
realisation, while also delivering value
to Shareholders.
In the near term, the Committee’s focus remains
on the most pressing short to medium-term
risks, including those associated with supply
chain deforestation and the quality of land,
water and air. Longer-term risks, such as
increased flooding, heat-related disruptions,
water scarcity and fluctuations in commodity
availability, require a more strategic and
forward-looking response. As such, the
Committee continues to provide oversight
on investment, mitigation and adaptation
strategies that support long-term business
resilience and environmental sustainability.
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
20 May 2025
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
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 within the
Corporate Governance section on the Group’s
website at www.cranswick.plc.uk.
Composition of the Audit Committee
The Audit Committee comprises the following
Non-Executive Directors:
Committee members
Meetings attended
Alan Williams – Chair
4/4
Yetunde Hofmann
4/4
Liz Barber
4/4
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 Chairman, Chief Financial Officer, Head of
Risk and Internal Audit, Rachel Howarth
(Non-Executive Director), 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.
Independence
All members of the Committee
are independent.
Frequency of meetings
The Committee is required to meet at least
three times a year and its agenda is linked to
the Group’s 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.
Key activities in 2024/25
Integrity of Financial Statements
• Reviewed and challenged the key financial
reporting judgements and estimates and
concluded that accounting treatments
were 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 challenged the Group’s
viability assessment and concluded that
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 impact of new and forthcoming
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.
External audit
• Approved the terms of engagement and
remuneration of the external auditors.
• Reviewed and approved the external
audit plan.
• Reviewed, and was satisfied with, the
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 the results of the Enterprise Risk
Management Maturity Assessment and was
satisfied with the effectiveness of the
Group’s Risk Management Framework.
• Reviewed the enterprise risk management
maturity assessment results, focusing
on management’s proposed actions.
• Reviewed the Group’s IT control
environment, and received regular
updates on cyber risks.
• Reviewed and challenged the work and
associated reporting of the Group
Risk Committee.
• Reviewed and updated the Board’s risk
appetite statement.
• Regularly received updates and reviewed
the new UK Corporate Governance Code
implementation plan, internal control and
risk framework, and assurance plan.
• Reviewed and updated, where necessary,
the Committee’s Terms of Reference.
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 52 weeks ended 29 March
2025, which provides an overview of the key
activities and the areas of focus of the
Committee during the year.
The Committee met formally four times this
year, with meetings in advance of half-year and
year-end financial reporting in November and
May respectively, and additional meetings
in September and March in preparation for the
half-year and year-end processes.
Across these four 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 mitigations and controls in place to manage
risk to an acceptable level.
Throughout the year, the Committee received
regular updates on progress related to the UK
Corporate Governance Code, and maintained
its focus on strengthening the internal controls
framework for risk management. The review
of the implementation of the updated Code
requirements will continue in 2026, with the
Audit Committee fulfilling its responsibilities
through ongoing monitoring and reviews of
risk management and internal control activities
completed across the Group.
The Group faces growing cyber security
challenges, and in response to this, over the
course of the year, the Committee reviewed
the findings from the National Institute of
Standards and Technology (‘NIST’) assessment,
which affirmed much of the work undertaken
by the Group’s IT function. The Committee
challenged management on cyber security
matters and expressed their support for
enhancing areas requiring further attention.
It was noted that the assessment, in particular,
gave the Committee a deeper insight into the
risks facing the Group, and the appointment
of a Head of IT Security had been instrumental
in driving the development and execution of
the Group’s IT security strategy.
During the year, the Committee reviewed and
challenged Internal Audit’s preparedness for
the Global Internal Audit Standards, which will
take effect in the upcoming year. Following a
third-party review of its preparedness for the
required changes, the Audit Committee was
satisfied that many of the new standards’
requirements had already been implemented
and that the implementation of the remaining
requirements was progressing as planned.
Towards the end of the year, the Audit
Committee approved a recommendation from
the Head of Risk and Internal Audit to adopt
a co-sourced partnership with a third-party
specialist provider. This approach provides
a number of benefits, including a technology
and data-enabled audit approach, a flexible
resourcing model with importantly access to
Subject Matter Experts (e.g. Cyber/IT), and the
ability to access proprietary tools and software,
alongside realising additional value from the
Group’s Enterprise Risk Platform and
IT investments.
To support this co-sourcing arrangement,
the internal audit team was restructured in
May 2025, and historical ways of working
and processes were reviewed. The Audit
Committee welcomes this transition, which,
alongside the established in-house internal
audit team, will result in a more efficient and
effective assurance function capable of
meeting the Group’s evolving needs and
future requirements.
In the next 12 months, the Committee will
maintain its focus on key areas of financial
judgement and reporting, while also working
to further strengthen the Group’s internal
control environment. A primary priority will
be ensuring management is prepared for
compliance with the Code changes, as well as
addressing evolving financial and non-financial
reporting requirements, alongside other
regulatory developments.
Alan Williams
Chair of the Audit Committee
20 May 2025
THE AUDIT COMMITTEE
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
CORPORATE GOVERNANCE
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Corporate governance
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 52
weeks ended 29 March 2025 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 assumptions,
which include the fair value of livestock at the
various stages of development. The Audit
Committee reviewed the assumptions used
within the models and management’s
proposed accounting treatment, and was
satisfied that the standard had been fairly
and consistently applied and the required
disclosures made in the Financial Statements
(See Note 15 and Note 22).
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 was satisfied that the
assumptions used and the recoverable
amounts determined were appropriate.
(See Note 10).
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 78 to 82 and the Viability
Statement presented on page 83.
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 and
opportunities identified 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 83).
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.
Risk management and internal control
The Audit Committee is responsible for
overseeing the Group’s risk management and
internal control framework, ensuring that risks
are effectively mitigated. Throughout the year,
the Committee conducted a review of the
framework’s effectiveness through the work
of Internal Audit, the external auditor’s 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, including whistleblowing
and bribery prevention policies and regular
whistleblowing update reports on behalf
of the Board. These efforts enabled the Audit
Committee to confirm that the existing risk
management and internal control systems
remain robust.
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.
During the year, an independent third-party
conducted an Enterprise Risk Management
Maturity Assessment to provide additional
assurance on the strength and effectiveness
of the Group’s Risk Management Framework.
The findings confirmed that the Group has a
well-developed Risk Management Framework,
highlighting best practices such as the effective
use of the IT risk management system, in-depth
risk analyses, and regular Governance, Risk and
Compliance (‘GRC’) meetings.
This positions the Group above the industry
average, demonstrating a strong commitment
to continuous improvement in risk management.
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 78 to 82) and that the Risk
Management Framework, including processes
for assessing and reporting emerging risks,
was operating effectively.
The Committee continued to support the
Board in implementing risk appetite
statements, defining the level of risk the Group
is willing to accept to achieve its operational
and strategic objectives. This, in turn, helps
determine the extent of actions and resources
required to mitigate risks to an agreed level.
The deep dive risk reviews by the Committee
has enabled the Group to refine its principal
risks, eliminating duplication and ensuring
mitigating controls remain adequate against
an evolving risk landscape.
Enhancing the Group’s internal control
framework remained a key focus in response
to the upcoming changes to the Corporate
Governance Code. Throughout the year, the
Committee received regular updates from the
project team on the progress of change
implementation, including key initiatives such
as automating risk and control monitoring
through the newly implemented GRC tool.
This automation has strengthened the Group’s
ability to document risks and controls more
efficiently, improving both the timely visibility
and validation of control compliance.
To further support this, a periodic
self-attestation process will be introduced
in the next financial year. This will provide
control owners with an opportunity to report
any control exceptions that occurred during
the period and outline any changes in the
control environment. These attestations will
serve as a first line of defence, promoting
accountability, transparency, and ensuring
compliance across the Group’s sites with
internal policies.
In response to updates in the Corporate
Governance Code, the Committee also noted
that internal audits will continue to provide
assurance over financial controls, while
expanding their scope to include non-financial
areas. Where relevant, the use of external
assurance providers will be explored to further
enhance the overall assurance process.
This approach will ensure that Internal Audit
continues to act as an independent third-line
assurance provider, supporting the Board
in evaluating the adequacy of the internal
control framework and the effectiveness
of key controls.
Looking ahead, the Committee’s primary focus
for the coming year will be on evaluating the
results of the trial run for all material controls,
identifying any weaknesses that could impact
their effectiveness, assessing the adequacy
of the review and monitoring mechanisms
implemented, and driving further framework
enhancements through automation and
standardisation across the Group.
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.
At each Committee meeting, the Head of
Internal Audit presents a report to the Audit
Committee outlining the audits conducted
across the Group, including operational and
risk-based reviews. The report also includes
key metrics tracking progress against the
audit plan, updates on the overall Group Risk
Management Framework, and risks specific
to individual operations. Additionally, the risk
profile of the Group is regularly reassessed
to reflect any changes to the risk profile of the
Group. The Audit Committee also reviewed
progress by management in addressing the
issues identified on a timely basis.
During the period, the Committee received
regular updates on the implementation of
recommendations from the Internal Audit
External Quality Assessment (‘EQA’)
conducted in the previous year. It was noted
that significant progress had been made, with
a substantial number of recommendations
already successfully completed.
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 health
and safety.
Internal Audit reviews conducted throughout
the year have identified no control failures
or weaknesses that would have a material impact
on the Group. However, recommendations were
made where necessary at specific sites to
enhance existing processes and controls.
Follow-up audits were subsequently carried
out to ensure that management was effectively
implementing the agreed corrective actions.
Considering the work undertaken by Internal
Audit, external audit, Group Finance, and Site
Management teams, it was deemed unlikely
that a weakness at any 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.
The output from the process for the 2024
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 2025 AGM.
THE AUDIT COMMITTEE
CONTINUED
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
For the 52 weeks ending 29 March 2025,
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 auditor’s 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 £50,000, 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 41 of
this report. Although the Committee does 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
51
Other services
48
Total non-audit fees
99
Audit fee for year ended
29 March 2025
1,106
Total audit fees
1,106
Ratio of non-audit fees to
audit fees
0.09:1
The ratio of non-audit fees to audit fees on
average over the last three years was 8
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 2025, 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 2025 Annual
General Meeting.
Alan Williams
Chair of the Audit Committee
20 May 2025
THE AUDIT COMMITTEE
CONTINUED
THE NOMINATION COMMITTEE
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
52 weeks ended 29 March 2025.
Tim J Smith
Chair of the Nomination Committee
Composition of the
Nomination Committee
Committee members
Meetings attended
Tim Smith – Chair
1/1
Liz Barber
1/1
Yetunde Hofmann
1/1
Alan Williams
1/1
Rachel Howarth
1/1
Other regular attendees
• The Chief Executive and Chief Financial
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
once a year.
Independence
All members of the Committee are independent.
Key activities in 2024/25
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 compliance with the 2024 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
Rachel Howarth 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 16
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,
Rachel succeeded Liz Barber as Chair of the
Remuneration Committee in August 2024,
following conclusion of the scheduled review of
the Company’s Directors’ Remuneration Policy.
Details of the recruitment process relating to
Rachel’s appointment were set out in last year’s
Nomination Committee Report.
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 88 and 89 demonstrate the
range of experience and skills, that each brings
to the benefit of the Company.
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
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 and reviewing the
progression of potential candidates within the
Group 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 Chair, 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.
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,
Alan Williams was appointed a Non-Executive
Director and Chair of the Audit Committee
of Nichols plc. The Committee reviewed Alan’s
other commitments (which do not include any
other listed company directorships) and was
satisfied that he will continue to have sufficient
time to fully discharge his 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. None of the
other Executive Directors are directors of other
listed companies.
Board structure
Consideration was given to Board and
Committee structure and operation and we
concluded that the current operating Board
structure explained on page 99 of the
Corporate Governance review remains
effective and appropriate.
During 2024, we reduced the number
of scheduled Board meetings each year from
ten to eight meetings, with a greater focus
on strategic matters, which was one of the
recommendations from our last independent
Board effectiveness review.
THE NOMINATION COMMITTEE
CONTINUED
Male
Female
67%
33%
Board
Male
Female
63.5%
36.5%
Gender breakdown
Total employees
Male
Female
72%
28%
Grads/Apprentices
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.
Diversity
Cranswick recognises the 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 ethnic diversity
in relation to senior management positions and
recognises that our current 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.
The Group is taking steps to address this
and to encourage an inclusive culture via our
ED&I Committee, 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 the year,
Cranswick became a signatory of the Race at
Work Charter, an initiative by Business in the
Community (‘BITC’) committing us to various
initiatives that will promote diversity and
inclusion within the workplace. The Charter
represents a significant step towards creating
fairer and more inclusive workplaces, ensuring
that all employees have equal opportunities
to succeed.
In March 2025, the UK Government launched
a consultation on introducing mandatory
ethnicity and disability pay reporting for
companies such as Cranswick. The consultation
follows a commitment made by the UK
Government last year to extending mandatory
pay gap reporting beyond gender. As indicated
last year, while the Group has historically
collected data relating to its workforce by
reference to nationality, over the course
of 2024/25 we have introduced a new HR
system across the Group’s sites that enables the
capture of ethnicity data across the workforce,
which it is anticipated will enable ethnicity pay
gap reporting to be undertaken on a voluntary
basis from 2025/26 and any subsequent
government reporting requirements. This will
also enable us to identify any structural and
cultural barriers that may be contributing to
workplace inequalities. We have also had
a greater focus on diversity in our staff surveys
to gain a greater understanding of colleagues’
opinions and have introduced compulsory
diversity, equality and inclusion training
to underpin our commitment to increasing
our diversity. Recent results have shown a 2 per
cent increase in our ED&I score on the 2024
Staff Survey.
The gender breakdown of the Group’s
workforce is set out on page 112.
The proportion of females overall remained
broadly unchanged over the last 12 months.
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 and working closely
with external organisations providing support,
development and mentoring opportunities to
female colleagues, further details of which are
set out on pages 53 to 57 of the
Strategic Report.
Our sector has historically had low levels of
ethnic and female participation in management
in the geographic regions in which we operate.
While 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 57 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 (33 per cent of the Board
are women). While 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. While 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.
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 101
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.
During 2025/26, we will be appointing
independent consultants to undertake an
external review of the Board’s effectiveness,
which will be reported in next year’s
Annual Report.
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
20 May 2025
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
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
67
3
7
78
Female
3
33
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)
8
88.9
4
9
100
Mixed/Multiple ethnic groups
–
–
–
–
–
Asian/Asian British
–
–
–
–
–
Black/African/Caribbean/Black British
1
11.1
–
–
–
Other ethnic group, including Arab
–
–
–
–
–
Not specified/prefer not to say
–
–
–
–
–
Notes:
1. The tables above reflect relevant data at a reference date of 29 March 2025.
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.
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.
Rachel Howarth
Chair of the Remuneration Committee
This report contains the following
separate sections.
• Part 1 – The Remuneration Committee
Chair’s annual statement on pages 116
to 120.
• Part 2 – Remuneration at a glance
on pages 121 to 122.
• Part 3 – The Annual Report on Directors’
Remuneration on pages 123 to 133, which
discloses how the Remuneration Policy has
been applied during the year.
Those elements of Part 3 subject to external
audit are clearly identified.
• Part 4 – A summary of our Remuneration
Policy.
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
Rachel Howarth* – Chair
4/5
Liz Barber
5/5
Yetunde Hofmann
5/5
Tim Smith
5/5
*
Rachel Howarth was appointed Chair of the Remuneration
Committee with effect from 29 July 2024 when Liz Barber
retired as Interim Chair of the Remuneration Committee.
She was appointed as a Director on 30 April 2024 and
attended the April meeting of the Committee as an observer.
Other regular attendees
• The Chair, Alan Williams, Chief Executive
Officer, 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.
Independence
All members of the Committee
are independent.
Key activities in 2024/25
Executive Director and
Senior Executive remuneration
• Reviewed and rebased the Chief Executive
Officer’s base salary, following consultation
with major Shareholders.
• Reviewed other Executive Directors’ and
other Senior Executives’ base salaries.
• Reviewed the Senior Executives’ annual
bonus structure.
Approval of bonuses
• Reviewed the introduction of Environment,
Social and Corporate Governance (‘ESG’)
metrics into future annual bonus
arrangements for Executive Directors,
following consultation with
major Shareholders.
• Set objectives for the annual bonus
arrangements for 2025 for Executive
Directors and Senior Executives.
• Reviewed the achievement of the Executive
Directors’ bonus arrangements against the
2024 targets.
LTIP awards
• Approved LTIP awards granted in 2024.
• Reviewed the outcome of performance
conditions for the LTIP awards, which were
granted in 2022.
• Exercised discretion to reweight
performance metrics for LTIP awards
granted in 2022, 2023 and 2024 so that
they will be assessed solely by reference
to Earnings Per Share (‘EPS’) and relative
Total Shareholder Return (‘TSR’) (in the case
of the 2022 and 2023 LTIP awards) and by
reference to EPS and Return On Capital
Employed (‘ROCE’) (in the case of the 2024
LTIP award), following consultation with
major Shareholders. Taking into account
feedback from Shareholders, the Committee
will retain discretion to reduce the LTIP
outturn where progress on our material ESG
priorities is considered to be poor or is not
aligned with our external commitments or
does not reflect the underlying performance
of the business and the experience of
our stakeholders.
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
Shareholder engagement
• Engaged with major Shareholders on
rebasing the CEO’s base salary, the exercise
of discretion in relation to LTIP awards
granted in 2022, 2023 and 2024 in relation
to reweighting performance measures to
targets linked solely to financial performance
measures and the introduction of ESG
targets in relation to future bonus awards,
as discussed on pages 118 to 119.
Other activities
• Triennial Review of Chairman’s fee.
• Reviewed the Annual Remuneration Report
for 2024/25.
• Reviewed employee benefit structures and
approved the issue of the SAYE share
scheme for 2024/25.
• 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 52
weeks ended 29 March 2025, which is my first
report since appointment as Chair of the
Remuneration Committee on 29 July 2024.
I would like to thank my predecessor, Liz Barber,
on behalf of the Committee,
for her contribution as Interim Chair.
The Committee was delighted to see strong
support at the 2024 AGM for our executive
remuneration and share plan arrangements,
with the new Directors’ Remuneration Policy
and the 2024 Directors’ Remuneration Report,
approved with over 86 per cent and over 96 per
cent of votes in favour of them respectively.
As in prior years, Shareholders will also be asked
to pass an advisory vote on the Annual Report
on Directors’ Remuneration (excluding the
Remuneration Policy) at the forthcoming AGM.
Company performance
Over the course of 2024/25, the Group has
again delivered a very strong performance
across its core product categories and has
continued with the integration of its supply
chains through the expansion of its pig herds and
acquisitions of JSR Genetics, Piggy Green and
Fornham Pigs. It has also continued to invest in
its capacity and capability to improve efficiency
and deliver premium products to its key retailer
customers, with adjusted profit before tax
increasing by 12.1 per cent and adjusted
earnings per share increasing by 12.6 per cent.
Furthermore, as discussed in the Chairman’s
Statement on page 13, 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 REMUNERATION COMMITTEE
CONTINUED
Wider workforce context
We recognise that our people are critical to
making Cranswick successful. Every individual
within Cranswick plays a crucial role, and we
are committed to creating a rewarding work
environment where everyone can thrive.
We demonstrate this commitment through
a range of initiatives designed to reward
and recognise our employees’ contributions.
In 2024/25, the average salary increase
awarded to employees was 6.1 per cent.
The rate of employer pension contributions
available to the wider workforce was increased
from 5 per cent to 10 per cent of salary through
the introduction of a new matching scheme
in 2023/24. In 2024/25 we also introduced a
new Buy As You Earn (‘BAYE’) share incentive
plan, available to all our workforce. Added to
our Save As You Earn (‘SAYE’) scheme this
supports and broadens engagement of our
colleagues in the future success of the business.
We also operate a Group bonus plan, which is
deployed for site management teams and
central teams to recognise their valuable
contributions to the business.
Celebrating our colleagues’ achievements is
vital for a positive workplace. Our ‘Going the
Extra Mile’ (‘GEM’) awards recognise those
who have gone beyond their normal role and
responsibilities. Since its inception, the GEM
programme has recognised over 150
employees, boosting morale and encouraging
a culture of excellence.
The Company also recognises the continuing
difficulties faced by many of our employees in
current uncertain times. 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 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.
2025 bonuses
The Company delivered a strong financial
performance in the year and grew like-for-like
revenue by 4.4 per cent and increased adjusted
profit before tax by 12.1 per cent. Each of the
Executive Directors contributed to overall Group
performance by also performing strongly against
their personal objectives, which were fully
achieved and are summarised on pages 124
to 125.
Bonus awards for 2025 reflect the strong
performance delivered in the year, as outlined
below. A bonus of 100 per cent of maximum
(i.e. 200 per cent of base salary for the CEO
and 180 per cent of base salary for the other
Executive Directors) has been awarded to each
of the Executive Directors. Further details are
shown on page 124. Stretching targets were set,
which required performance significantly above
market expectations at the start of the year.
The Committee considers the level of pay-out
is reflective of the overall strong performance
of the Group and performance by each of the
Executive Directors against their personal
objectives in the year and is appropriate.
LTIP awards vesting in respect of
the period ended 29 March 2025
The LTIP Awards granted in 2022 were based
on the three-year performance period from
April 2022 to March 2025 and were subject
to adjusted earnings per share (‘EPS’) and
total Shareholder return (‘TSR’) 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 5 per cent of the
award). However, as explained in further detail
below, the Committee has exercised its
discretion to reweight performance metrics
solely to adjusted EPS and relative TSR (on an
equal basis), following consultation with major
Shareholders. Taking into account the feedback
from Shareholders, this is subject to the
Committee’s careful consideration of the
progress on our environmental and sustainability
priorities and the key ESG achievements
delivered to date and over the performance
period as part of our assessment of the
appropriateness of the LTIP outturn.
Performance over the three-year period as
measured against adjusted EPS has been
strong with adjusted EPS of 273.4p per share
having been achieved against a target for
maximum vesting of 237.5p per share
representing average annual EPS growth of
12.6 per cent and vesting at 100 per cent
of the maximum. 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
70th percentile of its comparator Group and,
consequently, 62.5 per cent of the TSR element
of the award has vested this year. Overall, 81.3
per cent of the maximum award will vest in June
2025 (i.e. 162.5 per cent of salary) for each
Executive Director, versus 73.2 per cent of the
maximum award which vested in August 2024
(i.e. 146.4 per cent of salary). This is reflected in
the table on page 126.
In reviewing the LTIP outturn, the Committee
assessed the progress made on environmental
and sustainability priorities and the key ESG
achievements delivered to date and over the
three-year performance period. The key
highlights are set out on page 125.
Further details are also included in our
Sustainability Report. Overall, the Committee
concluded that substantial progress has been
made against our key ESG priorities and we have
delivered meaningful improvements across
our environmental, Second Nature, and broader
social and governance metrics over the period.
The Committee, therefore, determined that the
LTIP outturn is aligned with the responsible
generation of Shareholder value, the underlying
performance of the business and the experience
of our stakeholders. No downward adjustments
were made to the 2022 LTIP outturn.
LTIP awards granted during the
period ended 29 March 2025
The Committee awarded nil-cost share
options under the Core 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 August 2024).
As described in more detail below, the Core
LTIP award granted in 2024 will no longer be
subject to performance measures based on
the reduction of emissions, water intensity and
energy intensity. Therefore, vesting will be after
a three-year performance period, over which
EPS and ROCE performance measures, which
each account for 50 per cent of the award, will
be assessed. As discussed below, the Committee
will retain discretion to reduce the LTIP outturn
where progress on our ESG priorities is
considered to be poor, is not aligned with
our external commitments or does not reflect
the underlying performance of the business
and the experience of our stakeholders.
The Committee also awarded nil-cost share
options under the Exceptional Performance
LTIP scheme to the Executive Directors, during
the year. The number of shares awarded to each
Executive Director was equivalent to 100 per
cent of base salary for the CEO and 50 per
cent of salary for the other Executive Directors
based on the market value of the Company’s
shares at the date of award (1 August 2024).
Vesting will be after a three-year performance
period, over which performance will be
measured on relative TSR against companies
in the FTSE 250 (excluding investment trusts).
The awards to Executive Directors under the
Core LTIP and Exceptional Performance LTIP
schemes will be subject to a two-year
holding period.
These awards and details of the performance
conditions are set out on pages 127 and 128.
Shareholder engagement
Ongoing engagement by the Chairman,
Chief Executive Officer, Chief Financial Officer
and myself has ensured that key Shareholders
have been regularly updated on progress and
performance throughout the year. During the
year, the Committee consulted the Company’s
top 28 Shareholders representing circa. 64 per
cent of the share register and the main proxy
voting advisory agencies to obtain their views on
an above wider workforce rate increase to base
salary for our very experienced, exceptional
CEO, Adam Couch, and changes to the ESG
metrics included in LTIP awards. The feedback
provided was valuable in finalising our approach.
I engaged with 19 Shareholders who wished to
discuss our proposals in more detail. We also
responded in writing to those requesting more
information. We are pleased that the feedback
we received from investors and the proxy voting
agencies was generally very supportive of the
proposals and the rationale for them given the
importance of retaining and recognising the
outstanding performance and contribution
of a very experienced, long-standing executive
team, especially our CEO, Adam Couch.
CEO base salary review
We have made a 15 per cent increase in the
CEO’s base salary to £974,600, effective
1 April 2025. It was clear from the feedback
that Shareholders recognise Adam is a
long-standing, experienced CEO with an
impressive performance track record.
As highlighted at our Capital Markets Day in
March, under the leadership of Adam Couch
and our unrivalled management team, our
successful business model and strategy have
delivered strong, compound returns for our
Shareholders and we have compelling future
growth opportunities. The Group has delivered
35 years of unbroken dividend growth and
approximately 10 per cent CAGR across key
financial performance metrics over the last
ten years. We have upgraded our medium-term
financial targets, reflecting the significant
strategic progress we have made and
strengthening returns from disciplined capital
allocation. To realise the transformative growth
potential of the business it is imperative that
we retain Adam.
Track record of impressive financial performance over the last ten years FY16 to FY25
under the leadership of Adam Couch as CEO and the executive team
102.8
120.9
145.0
144.3
156.4
199.3
205.4
210.0
273.4
242.8
Adjusted earnings per share
16
17
18
19 20 21 22 23
25
24
64.4
75.5
92.4
92.0
102.3
129.7
136.9
140.1
197.9
176.6
Adjusted profit before tax
16
17
18
19 20 21 22 23
25
24
37.5
44.1
53.7
55.9
60.4
70.0
75.6
79.4
101.0
90.0
Dividend per share
16
17
18
19 20 21 22 23
25
24
FTSE 250 CEO tenure vs 10-year TSR
700%
500%
300%
100%
-100%
Adam Couch tenure as CEO of Cranswick
Key
Adam Couch tenure on Cranswick Board
Tenure of other FTSE 250 CEOs
0yrs
10yrs
15yrs
20yrs
25yrs
5yrs
CEO tenure (years)
10-year TSR
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
The chart on page 128 shows Adam Couch’s
total pay earned over the last ten years,
including share price growth alongside
Cranswick’s Total Shareholder Return
compared to the FTSE 350 Index and FTSE
350 Food Producers Index. That chart shows
that over the last ten years, our Total
Shareholder Return has outperformed both the
FTSE 350 Index and FTSE 350 Food Producers
Index. This also demonstrates a strong
alignment of pay with performance.
Furthermore, notwithstanding the significant
growth of the Group, the base salary increases
for Adam and the Executive Directors have
been in line with, or slightly below, increases
awarded to the wider workforce.
During the Shareholder consultation, there was
very strong support for this increase and for
positioning Adam’s base salary and total package
around upper decile for delivery of upper decile
performance. It was recognised that our market
capitalisation has increased from approximately
£2.2 billion to approximately £2.7 billion and as a
result of this growth, Adam’s base salary and
total package is now positioned below upper
quartile, which does not appropriately and fairly
reflect Adam’s extensive experience and his
exceptional contribution to the impressive
performance of the business. As set out in the
table below, this is consistent with the base salary
and total package pay positioning for Adam
discussed with, and supported by, the majority
of investors and detailed in our Remuneration
Report last year.
THE REMUNERATION COMMITTEE
CONTINUED
Pay component
2024/25
High level market positioning
Proposed with effect from 1 April 2025
Salary
£847,400
2024 Policy review: Upper end of market reflecting it is
critical to retain and recognise a very experienced, high
performing CEO.
Current: Below upper quartile.
Increase to £974,600.
This ensures that Adam’s base salary continues to be
positioned at the upper end of the market in line with
the pay positioning supported by the majority of our
Shareholders last year.
Bonus
200 per cent
of salary
2024 Policy review: Upper quartile — increase in
opportunity was accompanied by an increase in the
stretch of targets to incentivise and reward in year
out-performance.
Current: Upper quartile.
No change – positioned at upper quartile.
Total LTIP
Core LTIP: 200
per cent of salary
Exceptional
Performance LTIP:
100 per cent
of salary
2024 Policy review: Upper decile but only for delivering
upper decile performance.
Current: Upper decile for upper decile performance.
No change – the combined Core LTIP and Exceptional
Performance LTIP is already positioned at upper decile
(for upper decile performance). None of the
Exceptional Performance LTIP awards vest unless our
performance is above upper quartile and full vesting
of the Exceptional Performance LTIP requires upper
decile performance.
Maximum total
compensation
£5.2 million
2024 Policy review: Around upper decile but only for
delivering upper decile performance.
Current: Between median and upper quartile (for upper
decile performance).
Proposed increase in base salary ensures Adam’s
maximum total package continues to be positioned
around upper decile for upper decile performance
in line with the principles supported by the majority
of our Shareholders last year.
The primary comparator group considered was
UK listed companies with a 12-month average
market capitalisation of between £2 billion and
£4 billion. This recognises the Group’s growth
trajectory and that we operate in a competitive
market for talent – competing 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.
While we acknowledge that a phased approach
to base salary increases is preferred by some
proxy firms and investors, in a competitive
market for talent, we believe it is critical to take
decisive action now to ensure Adam is
appropriately incentivised and retained to
deliver Cranswick’s long-term growth
ambitions. The majority of Shareholders were
supportive of this approach. We do not intend
to make further increases in Adam’s base salary
in excess of the range of salary increases for the
wider workforce (in percentage terms) unless
there was a step change in the size and
complexity of the business and/or his role.
For example, admission of the Group to the
FTSE 100 or an acquisition, which significantly
changes the scale of the business, and scope
of the CEO and executive team roles.
In response to the feedback received, we also
reconfirmed this upper decile pay positioning
for Adam will not be an automatic benchmark
for a future successor.
The Committee has awarded the other
Executive Directors an increase of 4 per cent,
which is in line with the average salary increase
(in percentage of salary terms) awarded to
other employees of the Group of 4.05 per cent.
Following the increase in pay, which will be
applicable from 1 April 2025, the Executive
Directors’ base salaries will be:
Director
New salary
Chris Aldersley
£582,700
Mark Bottomley
£582,700
Jim Brisby
£582,700
Adam Couch
£974,600
Sustainability metrics included
in LTIP awards
ESG measures were introduced into the
LTIP in 2022 based on the reduction of Scope 1
and 2 emissions, energy intensity, and water
intensity. Each of these metrics account for 5
per cent of LTIP awards granted since 2022.
While these measures and targets were aligned
with the Group’s sustainability-linked revolving
credit facility agreed in 2022, they are not
aligned with the Group’s future financing.
Details of the targets and measures are set out
in the Remuneration Report for the year
of grant.
The ESG targets in the LTIP awards granted
in 2022, 2023 and 2024 no longer reflect how
ESG links into our five-year Group strategic
plans and the integration of sustainability into
the core of Cranswick’s business model as a
driver of future value creation. Furthermore,
over the last three years, we have reset our
Second Nature sustainability strategy.
Shareholders were supportive of our rationale
for taking action to address this disconnect.
The key areas where there were divergent
views from Shareholders were as follows:
• Incorporating ESG into future incentives.
Some Shareholders expressed a preference
for explicit and transparent ESG metrics
to be included in the incentive framework
going forward – albeit most Shareholders
were not prescriptive on whether ESG
should be in the bonus or LTIP or applied
as an underpin.
• Approach to the ESG targets in the LTIP
awards granted in 2022, 2023 and 2024.
For these LTIP awards, some Shareholders
expressed a preference for the Committee
to consider exercising upward discretion
when assessing the outturn on the ESG
element, or for the ESG measures to be
reset and performance assessed against
revised targets. However, the majority of
Shareholders consulted indicated that they
would be open to supporting our proposed
approach to revert to using financial
and Shareholder return metrics for these
LTIP awards. This was subject to the
Committee’s careful consideration of,
and the disclosure of, clear evidence
of the progress on our environmental
and sustainability priorities and the key
ESG achievements delivered as part
of our assessment of the appropriateness
of the LTIP outturns.
In response to the Shareholder feedback
on ESG metrics in incentives:
• For the 2025/26 incentives we will
incorporate ESG into the annual bonus for
Executive Directors (instead of the FY26 LTIP)
as this gives more flexibility to tailor the
targets to strategic delivery in line with
broader business objectives. It is expected
these ESG metrics will be aligned with our
carbon/progress to Net Zero ambitions and
broader sustainability and/or social metrics
which are relevant, material and measurable.
The proposed weightings on financial,
personal and ESG measures are detailed
on page 132.
• For LTIP awards granted in 2022, 2023
and 2024 the Committee has considered
the merits and potential challenges of
a range of approaches including:
No change to ESG
measures/targets
for in-flight LTIP
awards for Executive
Directors (remove
ESG measures for
in-flight LTIP awards
for participants below
Executive Director
level only).
Our strong view is that this does not appropriately or fairly recognise
the environmental and sustainability achievements of the Group for the
Executive Directors. As discussed and acknowledged by Shareholders
during the consultation, this does not recognise:
• that while substantial progress has been made, this is not linear;
• the impact of organic growth, including new factory builds, is not
reflected in the 2019/20 baseline from which the current ESG targets
are measured; and
• the original targets set may conflict with the creation or maintenance
of Shareholder value. For example, Cranswick adopted transition
to green electricity (ahead of sector peers) prior to the start of the
performance period for the 2022 LTIP. Against a 2016/17 baseline
(prior to the early adoption of green electricity), relative Scope 1
and 2 emissions have reduced by approximately 70 per cent. No new
accredited schemes have become available during the plan period.
Investing heavily in current alternatives available to date would have
been inefficient and ineffective.
Exercising upward
discretion when
assessing the outturn
on the ESG element.
While we appreciate that some Shareholders have expressed a
preference for this approach, there were divergent views. On balance,
we believe that this approach is more complex and less transparent
(for both Shareholders and participants) than our preferred approach.
We are also mindful that applying upward discretion is not favoured
by many Shareholders.
Agreed approach:
We continue to
believe that a simple,
transparent,
and fair approach
is to instead increase
the weighting of
the financial and
Shareholder return
metrics for these
2022, 2023 and
2024 LTIP awards.
As set out above, the majority of Shareholders consulted indicated
that they would be open to supporting this approach.
Taking on board the feedback during the consultation, the Committee
has carefully reflected on the information and data that will be
considered to evidence the ESG achievements and progress made to
date and over the three-year performance period. The reference points
that will be considered to demonstrate that the LTIP outturn is aligned
with the responsible generation of Shareholder value will include:
• key achievements/progress against overall carbon/
Net Zero ambitions;
• key achievements against reset Second Nature sustainability strategy;
• broader elements of progress made on ESG;
• performance relative to sector peers;
• broader market context (including impact of near-term innovation,
particularly in energy efficiency); and
• stakeholder experience, including Shareholders, employees
and customers.
The Committee will retain discretion to reduce the LTIP outturn
where progress on our material ESG priorities is considered to be
poor or is not aligned with our external commitments or does not
reflect the underlying performance of the business and the experience
of our stakeholders.
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
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 in the 2023/24 Directors’ Remuneration Report,
which can be found at www.cranswick.plc.uk.
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 workforce 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 the 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
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.
Non-Executive Director fees
In August 2024, the triennial review of the
Chairman’s fee and Non-Executive Directors
fees was undertaken, and it was agreed that the
Chairman’s fee be increased from £250,000 to
£300,000 having regard to appropriate market
data, the time requirements for the role, and the
basic fee for Non-Executive Directors
be increased from £56,000 to £64,000.
Additional fees paid for chairing committees and
for the role of Senior Independent Director were
increased from £11,000 to £14,000. The fee
for the Non-Executive Director designated to
undertake workforce engagement remained
unchanged at £11,000. In addition, the Company
changed its policy so that where a Non-Executive
Director undertakes more than one additional
role, an additional fee is paid in respect of each
such role (previously a single fee was paid in
relation to all additional roles undertaken).
Remuneration for the year ended
28 March 2026
Details of the implementation of the Policy for
the year ended 28 March 2026 are disclosed
on pages 134 to 138.
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 129.
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 rachel.howarth@cranswick.co.uk.
Rachel Howarth
Chair of the Remuneration Committee
20 May 2025
REMUNERATION AT A GLANCE
*
The Committee decided that LTIP performance should be assessed solely by reference to Relative TSR and EPS, as more fully explained on page 119 of the Committee Chair’s Statement.
Remuneration in 2025
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; 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
847
560
560
560
Benefits
36
32
34
35
Pension
85
56
56
56
Bonus
1,695
1,008
1,008
1,008
LTIP
1,927
1,274
1,274
1,274
SAYE
14
–
–
–
Total
4,604
2,930
2,932
2,933
Remuneration at a glance
Our performance during the year
Adjusted profit before tax
+4.4%
Like-for-like revenue increase to £2,713.2m
£197.9m
+20.8%
Share price increase to 4,950p at 29 March 2025
Adjusted earnings per share
273.4p
Targets for 2024/25
Bonus (CEO/Other Executive Directors)
LTIP*
90%/91.7%
Adjusted profit before tax
50%
Relative TSR
50%
EPS
10%/8.3%
Personal targets
>86%
of total votes cast in favour of the Directors’ Remuneration Policy
and the Remuneration Committee’s Report at last year’s AGM
Read more on page 141 for more details.
>99%
of total votes cast in favour of our new LTIP and
all-employee BAYE plan at last year’s AGM
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
Outcomes
2022 LTIP
2022 LTIP vesting by reference to performance to the end of 2024/25:
Measure*
Threshold
Maximum
Actual
Vesting
EPS (pence per share)
211.1p
237.5p
273.4p
100%
TSR
50th percentile 90th percentile 70th percentile
62.5%
*
The Committee decided that LTIP performance should be assessed solely by reference to Relative TSR and EPS and would not include ESG measures, as more fully explained on page 116 of the Committee
Chair’s Statement. In reviewing the LTIP outturn, the Committee assessed the progress made on environmental and sustainability priorities and the key ESG achievements delivered to date and over the
three-year performance period. The key highlights are set out on page 121. Overall, the Committee concluded that substantial progress has been made against our key ESG priorities and we have delivered
meaningful improvements across our environmental, Second Nature and broader social and governance metrics over the period. The Committee, therefore, determined that the LTIP outturn is aligned with
the responsible generation of Shareholder value, the underlying performance of the business and the experience of our stakeholders. No downward adjustments were made to the 2022 LTIP outturn.
2025 bonuses*
2025 bonuses were based on a financial measure (with a 90 per cent weighting for the CEO and 91.7 per cent weighting for other Executive Directors)
and personal/strategic targets (with a 10 per cent weighting for the CEO and 8.3 per cent weighting for other Executive Directors).
Financial measure**
Threshold
Maximum
Actual
Adjusted Group profit before tax***
£165.0m
£187.0m
£202.8m
Bonus payable (per cent of maximum subject to financial measure)
20%
100%
100%
*
Maximum bonus represents 200 per cent of CEO’s base salary and 180 per cent of salary for other Executive Directors.
** Financial measure represents 180 per cent of the CEO’s base salary and 165 per cent of the base salary for the other Executive Directors.
*** Adjusted Group profit before tax targets are stated before deduction of bonuses paid to Executive Directors, associated employers NI and non-trading items.
Personal strategic targets
Further details of personal targets are set out on page 124 to 125 of the Remuneration Report. The Remuneration Committee assessed the targets as
being met as to the maximum by each Executive Director.
Remuneration for 2026
Salary
15 per cent increase to the CEO’s salary following a rebasing of salary, as described in more detail on page 117 of the Committee
Chair’s Statement.
4 per cent increase to other Executive Directors’ salaries, which is in line with the average salary increase (in percentage of salary
terms) awarded to other employees of the Group of 4.05 per cent.
Bonus
Opportunity of 200 per cent of salary for CEO and 180 per cent of salary for other Executive Directors, with performance
measures weighted as follows:
CEO
Other Executive Directors
Group profit before tax
85% of maximum
85% of maximum
Personal/strategic objectives
10% of maximum
10% of maximum
ESG
5% of maximum
5% of maximum
All Executive Directors have met their shareholding guideline, therefore, mandatory bonus deferral does not apply.
Core LTIP awards
Opportunity at 200 per cent of salary for 2025/26.
Stretching Targets, 50 per cent EPS and 50 per cent ROCE.
Exceptional
Performance
LTIP award
Opportunity at 100 per cent of salary for 2025/26 for Chief Executive Officer and 50 per cent of salary for other Executive
Directors.
Stretching relative TSR target against the companies in the FTSE 250 Index (excluding investment trusts), over a three-
year period.
REMUNERATION AT A GLANCE
CONTINUED
ANNUAL REPORT ON
DIRECTORS’ REMUNERATION
Directors’ remuneration (audited)
The Remuneration Policy operated as intended in 2024/25. The table below sets out the single figure remuneration details of the Directors for the
reporting year:
Salary and fees
Benefits
Bonus
LTIP1
Pension2
SAYE
Total
Total fixed
Total variable
£’000
2025
2024
2025 2024
2025
2024
2025
2024
2025 2024
2025
2024
2025
2024
2025
2024
2025
2024
Executive
Directors
Chris Aldersley
560
530
35
37 1,008
875 1,274
784
56
56
–
4
2,933
2,286
651
623
2,282 1,663
Mark Bottomley 560
530
32
35 1,008
875 1,274
784
56 56
–
4
2,930
2,284
648
621
2,282 1,663
Jim Brisby
560
530
34
34 1,008
875 1,274
784
56
56
–
11
2,932
2,290
650
620
2,282 1,670
Adam Couch
847
802
36
41 1,695 1,323 1,927 1,186
85 85
14
2
4,604
3,439
968
928
3,636 2,511
2,527 2,392
137 147 4,719 3,948 5,749 3,538 253 253
14
21 13,399 10,299 2,917 2,792 10,482 7,507
Salary and fees
Benefits
Bonus
LTIP1
Pension
SAYE
Total
Total fixed
Total variable
£’000
2025
2024
2025 2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
Non-Executive
Directors
Tim Smith
279 250
–
–
–
–
–
–
–
–
–
–
279
250
279 250
–
–
Liz Barber
83
67
–
–
–
–
–
–
–
–
–
–
83
67
83
67
–
–
Yetunde
Hofmann
72
65
–
–
–
–
–
–
–
–
–
–
72
65
72
65
–
–
Alan Williams3
73
46
–
–
–
–
–
–
–
–
–
–
73
46
73
46
–
–
Rachel
Howarth4
68
–
–
–
–
–
–
–
–
–
–
–
68
–
68
–
–
–
Mark Reckitt5
–
21
–
–
–
–
–
–
–
–
–
–
–
21
–
21
–
–
Pam Powell6
–
28
–
–
–
–
–
–
–
–
–
–
–
28
–
28
–
–
575
477
–
–
–
–
–
–
–
–
–
–
575
477
575
477
–
–
Total
3,102 2,869 137 147 4,719 3,948 5,749 3,538 253
253
14
21 13,974 10,776 3,492 3,269 10,482 7,507
1. The values of the LTIP awards, which vested in August 2024, have been updated for the actual share price on the date of vesting. In line with the regulations, the values for 2025 are based on the average
share price over the three-month period to 29 March 2025 as these awards will not vest until June 2025 (see tables on page 127).
2. Includes a contribution of £10,000 for both Jim Brisby and Chris Aldersley into a personal pension scheme, all other amounts relate to cash payments in lieu of pension contributions.
3. Appointed to the Board on 24 July 2023.
4. Appointed to the Board on 30 April 2024.
5. Retired from the Board on 24 July 2023.
6. Retired from the Board on 1 September 2023.
As reported last year, the Executive Directors had pay awards in the year effective from 1 April 2024, which were consistent with the average increase
awarded to Senior Executives and below average increases applied to the wider workforce of 6.1 per cent as set out below:
From 1 April 2024
% increase
Chris Aldersley
£560,200
5.1%
Mark Bottomley
£560,200
5.1%
Jim Brisby
£560,200
5.1%
Adam Couch
£847,400
5.1%
Benefits principally comprise health and life insurance, personal tax 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 (2024: two).
Non-Executive Directors are paid a basic fee with additional fees paid for chairing Committees and for the roles of Senior Independent Director and
Non-Executive Director designated to undertake workforce engagement. In August 2024, the triennial review of the Chairman’s fee and Non-Executive
Directors fees was undertaken, and it was agreed that, effective from September 2024, the Chairman’s fee be increased from £250,000 to £300,000
and the basic fee for Non-Executive Directors be increased from £56,000 to £64,000. Additional fees paid for chairing Committees and for the role
of Senior Independent Director were increased from £11,000 to £14,000. The fee for the Non-Executive Director designated to undertake workforce
engagement remained unchanged at £11,000. In addition, the Company changed its policy so that where a Non-Executive Director undertakes
more than one additional role, an additional fee is paid in respect of each such role (previously a single fee was paid in relation to all additional roles
undertaken). An additional fee was paid to Liz Barber (pro-rata) in relation to additional responsibilities undertaken as Interim Chair of the Remuneration
Committee between 1 September 2023 and 29 July 2024.
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
ANNUAL REPORT ON
DIRECTORS’ REMUNERATION
CONTINUED
Annual bonus arrangement (audited)
The bonus scheme in operation for 2024/25 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 and the achievement of individual strategic targets for each of the
Executive Directors, which are set by reference to the Company’s strategic plan.
The outturn in relation to the financial and individual strategic measures is set out below, in summary, the performance delivered resulted in bonuses
being earned as follows:
Group profit before tax measure
Individual strategic measures
Outturn – per cent of
maximum for profit
before tax measure
Outturn – per cent of
salary for profit
before tax measure
Outturn – per cent
of maximum
for individual
strategic measure
Outturn – per cent of
salary for individual
strategic measure
CEO
100%
180%
100%
20%
Other Executive Directors
100%
165%
100%
15%
Profit before tax target
The achievement of Group profit before tax targets enabled the Chief Executive Officer to earn up to 180 per cent of base salary and the other
Executive Directors to earn up to 165 per cent of base salary. Bonuses were calculated on a straight-line pro-rata basis for profits falling between
specified target levels of performance.
Threshold
Stretch
Maximum
Actual*
Group profit targets
£165.0m
£178.0m
£187.0m
£202.8m
Bonus payable (per cent of maximum for profit before tax element)
20%
50%
100%
100%
Bonus payable (per cent of salary for profit before tax element) – CEO
36%
90%
180%
180%
Bonus payable (per cent of salary for profit before tax element) – other
Executive Directors
33%
82.5%
165%
165%
*
Adjusted Group profit before tax targets are stated before deduction of bonuses paid to Executive Directors, associated employers NI and non-trading items.
Individual strategic targets
The CEO’s individual strategic targets represent 10 per cent in aggregate of his overall bonus opportunity and are based on the development of key
aspects of the Company’s long-term growth strategy (representing 4 per cent of the overall bonus opportunity), which are described below, and the
targets applicable to each of the other Executive Directors reflecting his overall leadership of the executive team (each representing 2 per cent of the
overall bonus opportunity).
Each of the other Executive Directors’ individual strategic targets represent approximately 8 per cent of their overall bonus opportunity, with the
individual targets described in more detail below.
Personal targets for each of the Executive Directors were assessed against the following metrics:
Target Met?
Objective
No
Partially
Fully
Commentary
Long-term growth strategy
(CEO 8%)
Building farming enterprise, including poultry
Cohesive plan in place with Poultry revenue now at 19.6% of
Group revenue. Growth is very strong, with year-on-year
performance greater than 20% on a 52 week comparative basis.
Stocking densities are in line with the Better Chicken
Commitment representing a significant milestone in improving
animal welfare standards.
Acquisitions are a core element of our growth strategy, allowing
consolidation in our core business and expansion into growth
categories with diversification into new sectors. This year we
have acquired a 4,000 outdoor pig herd as well as the JSR
genetics business.
Operational Excellence
(CEO 4% CFO 15%)
Free cash flow conversion
Free cash flow conversion at 101.6%, delivered above mid
term targets.
Target Met?
Objective
No
Partially
Fully
Commentary
Strategic capital investment
(CEO 4% COO 15%)
Delivery of targeted
capital expenditure
Record spend of £138m, representing 5.1% of revenue, to add
capacity, expand capability and drive further efficiencies through
automation and scale.
We spent £63m across the four major strategic capital projects
in the year. The £29m expansion of the two added-value poultry
sites is now complete. The £25m fit out of houmous and dips
facility in Worsley is progressing well with the initial stage
successfully commissioned. The £22m project to increase
incubatory and processing is underway. The £62m multi-phased
expansion at our Hull pork primary processing facility is
progressing as planned.
Growth in UK Food
(CEO 4% CCO 15%)
Volume growth in UK Food
Revenue increased by 6.8% on a comparable 52 week basis,
with volumes 7.7% ahead. This reflects a strong underlying
performance in UK food with revenues 6.2% ahead.
This award is reflected in the single figure remuneration table above.
Overall, this resulted in a bonus award representing 200 per cent of salary for the Chief Executive Officer and 180 per cent of salary for the other
Executive Directors. The Committee considers the level of pay-out is reflective of the overall performance of the Group and experience of wider
stakeholders in the year and is appropriate and, therefore, no discretion was applied.
LTIP award vesting in respect of the 52 weeks ended 29 March 2025 (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. As explained
on pages 116 and 117 of the Committee Chair’s Statement, the Committee decided to assess vesting solely by reference to the achievement of EPS and
TSR targets, each with a 50 per cent weighting.
Accordingly, the performance criteria for the 2022 LTIP awards that will vest in June 2025 are as follows:
• 50 per cent of each award is subject to an EPS target requiring EPS of 211.1p per share for threshold vesting (25 per cent) and EPS of 237.5p per
share for full vesting, with growth between 211.1p per share and 237.5p per share per cent rewarded pro-rata; and
• 50 per cent is subject 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 50th percentile and 100 per cent at the 90th percentile with performance between the 50th
and 90th percentiles rewarded pro-rata.
The comparison companies used are: Associated British Foods plc, A.G. Barr plc, Carr’s Group plc, Greencore Group plc, Hilton Food Group plc,
Kerry Group plc, McBride plc, Premier Foods plc and Tate and Lyle plc.
When deciding to assess vesting solely by reference to EPS and TSR, the Remuneration Committee made this subject to there being careful
consideration of, and the disclosure of clear evidence of, the progress made on our environmental and sustainability priorities and the key ESG
achievements delivered. Therefore, in reviewing the LTIP outturn, the Remuneration Committee assessed this progress, including the following key
highlights (with further details included in our Sustainability Report).
Progress
against
carbon/
Net Zero
ambitions
(unaudited)
• Scope 1 and 2 relative market-based emissions down approximately 38 per cent versus a 2019/20 baseline. Scope 3 relative
emissions are down 41 per cent against the 2019/20 baseline.
• 30 per cent of our sites now have solar panels installed.
• 95 per cent reduction in diesel emissions in our Northern HGV fleet. 81 per cent reduction in harmful F-gas emissions.
• Significant progress in feed emissions, which account for over 30 per cent of our total Scope 3 inventory. Since 2022, we have
switched to 100 per cent full mass balance certified soya within our chicken feed resulting in a 28 per cent reduction in the carbon
footprint of our chickens.
• Our first zero emissions factory will come online towards the end of 2025.
• ‘Climate out-performer’ rating from ISS for the last three years reflecting lower Scope 1 and Scope 2 carbon intensity measures
than peers.
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
ANNUAL REPORT ON
DIRECTORS’ REMUNERATION
CONTINUED
Progress
against reset
Second
Nature
sustainability
strategy
(unaudited)
• Food waste as a percentage of total volume remains low at 0.12 per cent and has dropped by 23 per cent over the past three years.
Strengthened food redistribution partnerships to support our food waste reduction targets. Through these partnerships we have
redistributed over two million meals, increasing our rate of redistribution significantly over the past three years.
• Early adopters in understanding our impact on nature. In 2022/23, we deployed solar-powered equipment developed by pollinator
biodiversity innovators, AgriSound, to monitor insect activity on our outdoor breeding units and understand how we can enhance
our impact on nature.
• Investments in semi-automated hygiene cleaning systems have provided savings in water and energy consumption, as well as financial
benefits to the business.
• Increased investment and engagement with UK cereal farmers to support procurement of low-carbon cereals and reduce our overall
emissions in this area.
• Collaboration with our key customers in the transition to low-carbon food production, which has included significant investment
in the delivery of low carbon pig farming by 2030.
• Cranswick Carbon Inset scheme established with support from Innovate UK to map the uplift in organic carbon for land under
our management or with selected contract farmers.
• Two-thirds of our chicken litter/manure being sent for power generation in the Norfolk region supporting the UK’s transition
to Net Zero.
Broader
elements
of progress
made on ESG
(unaudited)
• Our ratings agency and disclosure scores have continued to improve over the last three years, with material improvements across
the board.
• Employee engagement has increased from 64 per cent to 80 per cent over the last three years.
• Over 15,000 positive mental health at work courses have been completed since 2020/21.
• Cranswick Charitable Trust formed in 2022.
• For the fifth year in a row, our Group has retained its GroceryAid Gold Award supporter status.
Overall, the Remuneration Committee concluded that substantial progress has been made against our key ESG priorities and we have delivered
meaningful improvements across our environmental, Second Nature and broader social and governance metrics over the period. The Remuneration
Committee, therefore, determined that the LTIP outturn based on the EPS and TSR performance delivered is aligned with the responsible generation
of Shareholder value, the underlying performance of the business and the experience of our stakeholders. No downward adjustments were made
to the 2022 LTIP outturn.
The value of the LTIP for the year ended 29 March 2025 relates to awards made in July 2022 with a performance criteria based on the three years ended
29 March 2025 that will vest in June 2025 calculated at the average price for the three months ended on 29 March 2025 of 4,915 pence. Over the
three-year performance period the EPS element of the award (March 2025: 273.4p), based on the criteria set above, gave an outperformance of 15.1 per
cent over the maximum (referenced above) and, therefore, vesting at 100 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 70th percentile of its comparator Group and, consequently, 62.5 per
cent of the TSR element of the award has vested this year. The total award of 81.3 per cent of maximum (162.5 per cent of salary) is reflected in the table on
page 123, and below.
The 2022 LTIP awards with a performance period ended 29 March 2025, were granted on 1 July 2022 when the share price was 3,034 pence.
The three-month average share price ended on 29 March 2025 was 4,915 pence. This equated to an increase in value for each Executive Director
of 1,881 pence per share due to vest in June 2025. The proportion of the value attributable to share price growth is, therefore, 62.0 per cent.
The Committee did not exercise discretion in respect of the share price appreciation.
Date of
grant
Options
granted
Vesting
performance
Shares
awarded
Average
share price, p
Value of
shares
Value of the award
attributable to the
share price
appreciation
Chris Aldersley*
1 July 2022
31,900
81.3%
25,918
4,915
£1,273,870
£487,518
Mark Bottomley
1 July 2022
31,900
81.3%
25,918
4,915
£1,273,870
£487,518
Jim Brisby
1 July 2022
31,900
81.3%
25,918
4,915
£1,273,870
£487,518
Adam Couch
1 July 2022
48,250
81.3%
39,203
4,915
£1,926,827
£737,408
* Chris Aldersley’s LTIP award was made while employed by the Group in a Senior Executive position as Chief Operating Officer prior to being appointed a Director on 1 August 2022.
True-up of awards vested in respect of the 53 weeks ended 30 March 2024 for share price on vesting date (audited)
The value of the LTIP for the 53 weeks ended 30 March 2024 relates to awards, made in 2021, with a performance criteria based on the three years
ended 30 March 2024 that vested in August 2024, updated for the actual vesting share price of 4,519 pence. The EPS element of the award achieved
46.4 per cent of its performance target and 100 per cent was achieved under the TSR measure giving an overall award of 73.2 per cent of maximum
and this is reflected in the 2024 column of the table on page 123 and in the table below.
The 2021 LTIP awards with performance period ended 30 March 2024, were granted on 1 August 2021 when the share price was 4,050 pence.
Based on the vesting share price, this equated to an increase in value of 469 pence per share.
Date of grant
Options vested
Value of award as
at 30 March 2024
based on an average
price of 3,986p
Value of award
when vested
in August at the
market price of
4,519p
Chris Aldersley*
1 August 2021
17,353
£691,691
£784,194
Mark Bottomley
1 August 2021
17,353
£691,691
£784,194
Jim Brisby
1 August 2021
17,353
£691,691
£784,194
Adam Couch
1 August 2021
26,249
£1,046,285
£1,186,211
* Chris Aldersley’s LTIP award was made while employed by the Group in a Senior Executive position as Chief Operating Officer prior to being appointed a Director on 1 August 2022.
LTIP awards granted during the year ended 29 March 2025 (audited)
Details of the nil-cost LTIP options granted in the year under the LTIP are set out below. In line with the Policy approved at the 2024 AGM, each
Executive Director was granted a Core LTIP and an Exceptional Performance LTIP and in line with the LTIP rules approved by Shareholders at the 2024
AGM each award will accrue dividend equivalents over the performance period:
Award
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
Core LTIP 1 August 2024 200% of salary
23,940
4,680
£1,120,392
25% 27 March 2027
Exceptional
Performance LTIP 1 August 2024
50% of salary
5,985
4,680
£280,098
0% 27 March 2027
Mark
Bottomley
Core LTIP 1 August 2024 200% of salary
23,940
4,680
£1,120,392
25% 27 March 2027
Exceptional
Performance LTIP 1 August 2024
50% of salary
5,985
4,680
£280,098
0% 27 March 2027
Jim Brisby
Core LTIP 1 August 2024 200% of salary
23,940
4,680
£1,120,392
25% 27 March 2027
Exceptional
Performance LTIP 1 August 2024
50% of salary
5,985
4,680
£280,098
0% 27 March 2027
Adam
Couch
Core LTIP 1 August 2024 200% of salary
36,220
4,680
£1,695,096
25% 27 March 2027
Exceptional
Performance LTIP 1 August 2024 100% of salary
18,110
4,680
£847,548
0% 27 March 2027
*
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.
Each person has also been granted a tax qualifying option over 425 shares at an exercise price of 4,680p per share as part of their Core LTIP 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 Core LTIP award nil-cost option will be forfeited to the value of that gain.
As detailed in the Committee Chair’s Statement on page 115, the Committee has decided that Core LTIP performance should be assessed solely by
reference to ROCE and EPS, weighted equally. The Committee will retain discretion to reduce the LTIP outturn where progress on our material ESG
priorities is considered to be poor, or is not aligned with our external commitments, or does not reflect the underlying performance of the business and the
experience of our stakeholders. Details of the performance targets for the LTIP awards granted during the year ended 29 March 2025 are as follows:
Core LTIP (representing 200 per cent of salary for each of the Executive Directors)
EPS as at 27 March 2027 (50 per cent of award)
Vesting percentage
259.9 pence per ordinary share
25 per cent
Growth between 259.9 pence and 301.2 pence per ordinary share
Straight-line vesting
301.2 pence per ordinary share
100 per cent
ROCE as at 27 March 2027 (50 per cent of award)
Vesting percentage
16.0 per cent
25 per cent
Between 16.0 per cent and 18.0 per cent
Straight-line vesting
18.0 per cent
100 per cent
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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127
Corporate governance
Exceptional Performance LTIP Award (representing 100 per cent of salary for the CEO and 50 per cent of salary for the other
Executive Directors)
TSR*
Vesting percentage
75th percentile
0 per cent
Between 75th percentile and 90th percentile
Straight-line vesting
90th percentile
100 per cent
*
TSR performance against the companies in the FTSE 250 Index (excluding investment trusts) over the three-year period to 27 March 2027.
Awards are subject to a two-year holding period.
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.
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 2024/25 by Adam Couch had an exercise price of 2,534 pence and a market value of 4,910
pence. The notional gains are shown in the 2025 column of the table on page 131.
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 2015) in the TSR (with dividends reinvested) for each of the last ten 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 350 Index (FTSE 350). The FTSE FPP and the FTSE 350 were chosen as representative benchmarks
of the sector and companies of a comparable size, along with details of the CEO’s remuneration in each of those years.
Alignment of CEO pay with performance delivered and value delivered for Shareholders
Cranswick TSR
Salary
FTSE 350
FTSE 350 Food Producers
2022
2020
2021
2019
2018
2017
2016
2015
2023
2025
2024
Benefits
Pension
Bonus
LTIP
SAYE
£3,000K
CEO total remuneration (actual)
0
1,300
2,600
3,900
4,200
6,500
TSR (rebased)
£5,000K
£4,000K
£2,000K
£1,000K
£0K
Key
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
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Base salary
588
599
616
635
651
669
720
751
802
847
Benefits
29
31
32
33
34
32
33
36
41
36
Pension
118
120
123
127
130
134
134
134
85
85
Bonus
882
898
925
240
979
1,004
604
580
1,323
1,695
LTIP
1,148
1,341
1,793
840
1,118
1,200
1,482
741
1,186
1,927
SAYE
38
–
–
–
49
–
17
–
2
14
CEO total remuneration
2,803
2,989
3,489
1,875
2,961
3,039
2,990
2,242
3,439
4,604
Bonus award against
maximum opportunity
100%
100%
100%
25%
100%
100%
51%
47%
100%
100%
LTIP vesting against
maximum opportunity
100%
100%
100%
81%
99%
77%
100%
61%
73%
81%
Adam Couch was the CEO throughout the ten-year period referenced above.
ANNUAL REPORT ON
DIRECTORS’ REMUNERATION
CONTINUED
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, the year ended 30 March 2024 and the year ended 29 March 2025, 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 29 March 2025, Rachel Howarth
was appointed to the Board, and accordingly has been excluded from the analysis.
Average
employee1
Chris
Aldersley
Mark
Bottomley
Jim
Brisby
Adam
Couch
Tim
Smith
Liz
Barber
Yetunde
Hofmann
Alan
Williams2
Salary/fees
2024/25
+3.1%
+5.7%
+5.7%
+5.7%
+5.6%
+11.6%
+23.9%
+10.8%
+58.7%
2023/24
+4.4%
+6.9%
+6.9%
+6.9%
+6.8%
–
+6.3%
+75.7%
N/A
2022/23
+19.1%
N/A
+4.2%
+4.2%
+4.3%
+31.6%
+28.6%
N/A
N/A
2021/22
+0.3%
N/A
+7.7%
+7.7%
+7.6%
+222.0%
–
N/A
N/A
2020/21
+6.6%
N/A
+2.8%
+2.8%
+2.8%
–
N/A
N/A
N/A
Benefits
2024/25
-11.3%
-5.4%
-8.6%
–
-12.2%
N/A
N/A
N/A
N/A
2023/24
+4.8%
+6.1%
+6.1%
+6.3%
+13.9%
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
2021/22
-11.6%
N/A
+6.5%
+3.2%
+3.1%
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
Bonus
2024/25
+34.5%
+15.2%
+15.2%
+15.2%
+28.1%
N/A
N/A
N/A
N/A
2023/24
+23.4%
+128.5%
+128.5%
+128.5%
+128.1%
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
2021/22
-18.1%
N/A
-39.9%
-39.9%
-39.9%
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
1. Includes the impact of pay awards, growth in employee numbers and restructuring of plc support functions.
2. The change in salary/fees for Alan Williams in 2024/25 reflects that he was appointed to the Board on 24 July 2023 such that his 2024 remuneration is for a part year only.
Chief Executive pay ratio (unaudited)
The table below shows the pay ratio based on total remuneration and salary of the Chief Executive to the 25th, 50th and 75th percentile of all permanent
UK employees of the business.
Year
Method*
25th percentile pay ratio
Median pay ratio
75th 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
113:1
100:1
82:1
2025
Option A
146:1
128:1
107:1
2025
Chief Executive
25th percentile
Median
75th percentile
Salary
847
27
30
37
Total Remuneration
4,604
32
36
43
*
The Company used Option A as defined in The Companies (Miscellaneous Reporting) Regulations 2018, as the calculation methodology for the ratios were considered to be the most accurate method.
The 25th, median and 75th 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 30 March 2024 is the total single figure remuneration figure as disclosed on page 123, which has
been adjusted to reflect the actual LTIP vesting (further information on page 126). This adjustment has increased the CEO pay ratios for the year ended
30 March 2024 as follows: 25th percentile 109:1 to 113:1; median 95:1 to 100:1; and 75th percentile 79:1 to 82:1.
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 29 March 2025. The workforce comparison has not excluded any component of total pay and benefits.
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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 (50th percentile), total remuneration
has increased to £36,000. The Company 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.
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 2025 and
the preceding financial year. There have been no share buybacks during 2025 and 2024.
Pay against distributions £’m
2025
2024
Change per cent
Remuneration paid to all employees*
433.2
388.4
+11.5 per cent
Total dividends paid
49.5
43.9
+12.8 per cent
*
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 LTIP, SAYE and BAYE schemes were as follows:
Long-term Incentive Plan (audited)
Year of award
At 30 March
2024
Number
Granted
in the year
Number
Exercised
in the year
Number
Lapsed
in the year
Number
At 29 March
2025
Number
Exercise
price
p
Market price
at grant
p
Chris Aldersley****
2021
23,700
–
(17,353)
(6,347)
–
nil
4,050
*2022
31,900
–
–
–
31,900
nil
3,034
**2023
32,800
–
–
–
32,800
nil
3,246
***2024
–
29,925
–
–
29,925
nil
4,750
Mark Bottomley
2021
23,700
–
(17,353)
(6,347)
–
nil
4,050
*2022
31,900
–
–
–
31,900
nil
3,034
**2023
32,800
–
–
–
32,800
nil
3,246
***2024
–
29,925
–
–
29,925
nil
4,750
Jim Brisby
2021
23,700
–
(17,353)
(6,347)
–
nil
4,050
*2022
31,900
–
–
–
31,900
nil
3,034
**2023
32,800
–
–
–
32,800
nil
3,246
***2024
–
29,925
–
–
29,925
nil
4,750
Adam Couch
2021
35,850
–
(26,249)
(9,601)
–
nil
4,050
*2022
48,250
–
–
–
48,250
nil
3,034
**2023
49,620
–
–
–
49,620
nil
3,246
***2024
–
54,330
–
–
54,330
nil
4,750
*
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.
*** The 2024 awards include both the Core LTIP award and the Exceptional Performance LTIP award granted to each Executive Director. Each of the Executive Directors, was also granted a tax qualifying
option over 425 ordinary shares at an exercise price of £46.80 per ordinary share, which is linked to the Core LTIP award such that, at the time of exercise, to the extent that there is a gain in the tax
qualifying option, the Core LTIP award will be scaled back by the value of that gain.
**** Chris Aldersley’s LTIP awards prior to 1 August 2022 were made while 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 125 and 126 in respect of 2024 and as detailed in the
Directors’ Remuneration Report for the preceding years on the following pages of the relevant report: 2023 page 125, 2022 page 114 and 2021 page
105. As disclosed in the Committee Chair’s Statement on page 115, the ESG targets corresponding to each relevant LTIP award has been removed.
The LTIP, issued in 2022, which vests in June 2025, will achieve 100 per cent of the EPS target and 62.5 per cent of the TSR target giving a share vesting
of 81.3 per cent of the maximum award. The Committee decided to assess vesting solely by reference to the achievement of EPS targets and TSR
targets as explained on page 115, but in reviewing the outturn assessed the progress made on environmental and sustainability priorities and the key
ESG achievements delivered to date and over the three-year performance period, with the key highlights being set out on page 125 to 126.
ANNUAL REPORT ON
DIRECTORS’ REMUNERATION
CONTINUED
The following Directors exercised LTIP share options during the year:
Number
Date
exercised
Exercise price
p
Market price
p
Gain on exercise
£
Chris Aldersley*
17,353
6 August 2024
nil
4,519
784,194
Mark Bottomley
17,353
6 August 2024
nil
4,519
784,194
Jim Brisby
17,353
6 August 2024
nil
4,519
784,194
Adam Couch
26,249
6 August 2024
nil
4,519
1,186,211
*
Chris Aldersley’s LTIP award was made while employed by the Group in a Senior Executive position as Chief Operating Officer prior to being appointed a Director on 1 August 2022.
Savings-related share option scheme (audited)
Year of award
At 30 March
2024
Number
Granted
in the year
Number
Exercised
in the year
Number
Lapsed
in the year
Number
At 29 March
2025
Number
Exercise price
p
Range of exercise dates
Chris Aldersley
2020
535
–
–
–
535
2,800
1 Mar 2026 – 1 Sept 2026
2022
600
–
–
–
600
2,498
1 Mar 2028 – 1 Sept 2028
Mark Bottomley
2022
360
–
–
–
360
2,498
1 Mar 2026 – 1 Sept 2026
Jim Brisby
2020
535
–
–
–
535
2,800
1 Mar 2026 – 1 Sept 2026
2023
505
–
–
–
505
3,127
1 Mar 2029 – 1 Sept 2029
Adam Couch
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
£
Adam Couch
591
24 March 2025
2,534
4,910
14,042
Buy As You Earn share incentive plan (audited)
The Executive Directors are eligible, as are other employees of the Group, to participate in the BAYE scheme, which by its nature does not have
performance conditions. Chris Aldersley participates in the BAYE and the ‘Partnership Shares’ he acquired and held at 29 March 2025 are included in
the ‘shares held’ in the table below.
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
29 March 2025
Value of shares
held as a per cent of
base salary
Target per cent
Chris Aldersley***
62,725
25,918
1,135
41,716
369%
200
Mark Bottomley
62,725
25,918
360
117,389
1,037%
200
Jim Brisby
62,725
25,918
1,040
124,304
1,098%
200
Adam Couch
103,950
39,203
524
222,879
1,302%
200
Tim Smith
–
–
–
5,000
–
–
Liz Barber
–
–
–
1,000
–
–
Alan Williams
–
–
–
2,000
–
–
Rachel Howarth
–
–
–
814
–
–
Yetunde Hoffman
–
–
–
–
–
–
*
Not including tax qualifying options granted to each of the Executive Directors.
** LTIP awards are due to vest in June 2025 with the performance criteria now completed.
*** Chris Aldersley’s LTIP awards include awards made while employed by the Group in a Senior Executive position as Chief Operating Officer prior to being appointed a Director on 1 August 2022.
The share price at 29 March 2025 of 4,950 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 29 March 2025 to 20 May 2025, other than
acquisitions of two ‘Partnership Shares’ and one ‘Matching Shares’ by Chris Aldersley under the BAYE Plan.
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Remuneration for the year ending 28 March 2026 (unaudited)
Salaries and pension
Our approach to Executive Directors’ salaries and pension for 2025/26 is described in the Committee Chair’s Statement on pages 115 to 120.
Bonus
In accordance with our 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, with performance measures weighted as follows:
CEO
Other Executive
Directors
Group profit before tax based on targets, which are set having regard to the Company’s budget,
historical performance and market outlook for the year
85% of maximum
85% of maximum
Personal/strategic objectives
10% of maximum
10% of maximum
ESG measures aligned with our carbon/progress to Net Zero ambitions and broader sustainability and/
or social metrics, which are relevant, material and measurable
5% of maximum
5% of maximum
The actual 2026 targets are not disclosed as they are considered to be commercially sensitive. The targets and vesting schedule will be declared
retrospectively in the 2026 Annual Report and Accounts, provided they are not considered commercially sensitive at that time. 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 June 2025 and vesting will be after a three-year performance period.
50 per cent of the award will be based on a ROCE performance measure and 50 per cent on an EPS performance measure.
Details of the performance targets for the Core LTIP awards to be granted are as follows:
EPS as at 25 March 2028
Vesting percentage
312.9 pence per ordinary share
25 per cent
Growth between 312.9 pence and 362.5 pence per ordinary share
Straight-line vesting
362.5 pence per ordinary share
100 per cent
ROCE as at 25 March 2028
Vesting percentage
17 per cent
25 per cent
Between 17 per cent and 19 per cent
Straight-line vesting
19 per cent
100 per cent
Awards are subject to a two-year holding period.
Exceptional Performance Long-term Incentive Plan award
An Exceptional Performance LTIP, 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 June 2025 and vesting will be after a three-year performance period based on a TSR measure.
Details of the performance target for the Exceptional Performance LTIP to be granted are as follows:
TSR*
Vesting percentage
75th percentile
0 per cent
Between 75th percentile and 90th percentile
Straight-line vesting
90th percentile
100 per cent
*
TSR performance against the companies in the FTSE 250 Index (excluding investment trusts) over the three-year period to 25 March 2028.
Awards are subject to a two-year holding period.
ANNUAL REPORT ON
DIRECTORS’ REMUNERATION
CONTINUED
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 2024/25 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 £72,264 for the year ended 29 March 2025. 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 2024 Remuneration Committee Report was passed on a poll at the Company’s last AGM held on 29 July 2024. The votes
cast in respect of the resolution were:
Remuneration Committee Report
Number
per cent
For
42,003,062
96.90
Against
1,344,187
3.10
Withheld
14,143
–
The resolution to approve the Remuneration Policy was passed on a poll at the Company’s 2024 AGM held on 29 July 2024. The votes cast in respect of
the resolution were:
Remuneration Policy
Number
per cent
For
37,613,085
86.77
Against
5,737,092
13.23
Withheld
11,215
–
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.
Rachel Howarth
Chair of the Remuneration Committee
20 May 2025
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REMUNERATION POLICY
This part of the Directors’ Remuneration Report sets out a summary of the Directors’ Remuneration Policy (the ‘Policy’). The full Policy is available in the
2023/24 Annual Report and Accounts on the Group’s website at www.cranswick.plc.uk.
Link between Policy, strategy and structure
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.
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
• performance, Group profitability
and prevailing market conditions.
Any changes will usually take effect
from 1 April.
While no formal performance
conditions apply, an individual’s
performance in role is taken into
account in determining any
salary increase.
While 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).
Purpose and link
to strategy
Operation
Performance metrics
Maximum entitlement
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
While 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.
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 of the 2024 Annual Report.
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 that 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 on page 138.
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.
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Corporate governance
Purpose and link
to strategy
Operation
Performance metrics
Maximum entitlement
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
that 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.
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 of the 2024 Annual Report.
Recovery provisions apply as referred
to on page 138.
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 be, but
are not limited to, EPS growth and
return measures) and may include
individual strategic 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.
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. 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
CORPORATE GOVERNANCE
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Corporate governance
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.
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.
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.
REMUNERATION POLICY
CONTINUED
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).
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 the 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 (‘SAYE’) share schemes and a 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.
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.
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
DIRECTORS’ REPORT
The Directors’ Report required under the Companies Act 2006 comprises this Directors’ Report
(pages 141 to 145), the Corporate Governance Report (pages 86 to 139), the Sustainability Report
set out in the Strategic Report (pages 34 to 51) and the Statement of Directors’ Responsibilities (page 146).
The management report required under Disclosure Guidance and Transparency Rule 4.1.8R comprises the
Strategic Report (pages 2 to 84) 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 28 July 2025.
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 £134.3 million (2024: £113.1 million). The Directors have declared
dividends as follows:
2025
2024
Interim dividend per share paid on 24 January 2025
25.0p
22.7p
Final dividend per share proposed
76.0p
67.3p
Total dividend
£54.6m
£48.5m
Subject to approval at the AGM, the final dividend will be paid in cash on 29 August 2025 to members on the register at the close of business on
18 July 2025. The shares will go ex-dividend on 17 July 2025. The proposed final dividend for 2025, together with the interim paid in January 2025,
amount to 101.0 pence per share, which is 12.2 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 88 and 89.
Directors’ interests in the Company’s shares
The interests of the Directors of the Company and their related parties at 29 March 2025 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 131.
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.
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.
CORPORATE GOVERNANCE
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Corporate governance
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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 23 on page 189. During the year, the share capital increased by 185,762
shares. The increase comprised 185,762 of shares issued relating to share options exercised during the year.
Details of share option schemes are summarised in Note 25 to the audited Consolidated Financial Statements. The information in Note 25 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 regards 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 29 March 2025:
At 29 March 2025
Number of shares
% of issued share
capital
Nature of holding
BlackRock Inc
4,915,208
9.07
Direct & Indirect
The Vanguard Group, Inc
2,876,401
5.31
Direct & Indirect
JPMorgan Chase & Co
2,594,945
4.79
Direct & Indirect
Schroders
2,560,760
4.73
Direct & Indirect
aberdeen plc
2,118,236
3.91
Direct & Indirect
Invesco Ltd
1,827,958
3.37
Direct & Indirect
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 29 March 2025. There have been no notifications of any significant changes, or percentage movements, to these
shareholdings as at 20 May 2025.
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 29 March 2025 or 53 weeks ended 30 March 2024. The Group’s capital structure is as follows:
2025
£’m
2024
£’m
Net debt/(funds) (Note 27)
172.4
99.4
Cranswick plc Shareholders’ equity
987.9
911.5
Capital employed
1,160.3
1,010.9
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 2024 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 £1,802,000 (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 £1,802,000 (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 2025 AGM. At the 2025 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 15 of the Notice of Annual General Meeting.
DIRECTORS’ REPORT
CONTINUED
Disapplication of pre-emption rights
The Directors were empowered at the 2024 AGM to make non-pre-emptive issues for cash up to a maximum aggregate nominal amount of £540,600
(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 2025 AGM and Shareholders will be asked to grant
a similar power (Resolution 16 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
2024 AGM to allot shares for cash or sell shares out of treasury up to a further nominal amount of £540,600, representing approximately 10 per cent
of the issued ordinary share capital as at June 2024 (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 and Accounts. This power is also due to lapse at the 2025
AGM and Shareholders will be asked to grant a similar power (Resolution 17 of the Notice of Annual General Meeting).
Own share purchases
The Directors were also authorised at the 2024 AGM under a Special Resolution to make market purchases of the Company’s own ordinary shares up to
a maximum aggregate number of 5,406,000 shares (being approximately 10 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 2025 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 29 January 2026 or the conclusion of the
2025 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, purchased 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;
• 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, Buy 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 £152.3 million and is analysed as follows:
Direct tax
Corporation tax
£41.5m
Employer’s National Insurance
£34.4m
Business rates
£4.3m
Apprenticeship levy
£1.6m
Indirect tax
Income tax
£55.6m
Employee’s National Insurance
£20.9m
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
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. While 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, while 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 increased its borrowings over the past 12 months with the net debt increasing to £172.4 million (2024: £99.4 million). At 29 March 2025,
gearing was 17.5 per cent (2024: 10.9 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 £5 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 29 March 2025 was £204.0 million
(2024: £222.0 million).
Note 22 (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 £24 million (2024: £29 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 29 March 2025 (2024: £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 53 to 58 of the Strategic
Report and pages 92 to 93 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 84. Disclosures relating to the Group’s human rights and anti-bribery policies are contained on page 84. The Group’s
non-financial and sustainability information statement is set out on page 84. Details of employee involvement in Company performance through share
scheme participation can be found on page 190. 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 pages 53 to 73. These are deemed to form part of this Directors’ Report.
A summary of how the Company has engaged with suppliers, customers and other third parties can be found on pages 53 to 72. 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 53 to 72.
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 69 to 71. 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 92 to 93. 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 34 to 51. 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 84.
The report sets out the business model (pages 8 to 11), strategy and likely future developments (pages 22 to 27). 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 75 to 83). 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 115 to 135.
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 and/or Foot and Mouth Disease in the UK and Europe, as well the Group’s considerable financial resources
and strong trading relationships with its key customers and suppliers. Directors have considered the impacts of changes in US tariffs and recent retail
cyber threats and have concluded that they would have minimal impact on the conclusion below. 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 83. As part of this review, the Directors have assessed the
Group’s ability to continue as a going concern over a 16-month period to July 2026. 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 12 months from the date of signing the Group Financial Statements. For this reason, they continue to adopt
the going concern basis for preparing these Financial Statements.
Post balance sheet events
On 16 May 2025, the Group acquired 100 per cent of the issued share capital of James T Blakeman & Co (Holdings) Limited (‘Blakemans’), a leading
manufacturer and supplier of sausage products to the food service sector, for initial consideration of £32 million on a debt-and-cash-free basis.
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 110.
The Directors’ Report was approved by a duly authorised Committee of the Board on 20 May 2025 and is signed by order of the Board by:
Steven Glover
Company Secretary
20 May 2025
Company number: 1074383
DIRECTORS’ REPORT
CONTINUED
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
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Corporate governance
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
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 88 and 89 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 84 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
20 May 2025
CORPORATE GOVERNANCE
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FINANCIAL STATEMENTS
Financial statements
FINANCIAL
STATEMENTS
148 Independent Auditors’ Report
155 Group Income Statement
156 Group Statement of Comprehensive Income
157 Group Balance Sheet
158 Group Statement of Cash Flows
159 Group Statement of Changes in Equity
160 Notes to the Accounts
196 Company Balance Sheet
197 Company Statement of Changes in Equity
198 Notes to the Company 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 29 March 2025 and of the Group’s profit and the Group’s cash flows for the 52 week period then ended;
• the Group financial statements have been properly prepared in accordance with UK-adopted international accounting standards as applied in
accordance with the provisions of the Companies Act 2006;
• the Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
(United Kingdom Accounting Standards, including FRS 101 ‘Reduced Disclosure Framework’, and applicable law); and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
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 29 March 2025; 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 or its controlled undertakings 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. Of these components, we have identified 1 component which we
considered to be significant based on size. We also audited material consolidation journals.
• This covered 87.8 per cent of the Group’s revenue and 74.5 per cent of the Group’s Adjusted profit before tax.
These coverages are based on absolute values.
• On the remaining 18 reporting units which were not subject to an audit of their complete financial information, we
performed analytical procedures over 13 of these reporting units to respond to any potential risks of material
misstatement to the Group financial statements. The remaining 5 reporting units are considered to be
inconsequential components.
• Included within the 13 reporting units were 4 where we performed specific audit procedures over biological assets due
to their contribution towards the overall biological assets financial statement line item.
Key audit matters
• IAS 41 – Biological assets (Group)
• Risk of impairment of Investments in subsidiary undertakings and Amounts owed by subsidiary undertakings
(Company)
Materiality
• Overall Group materiality: £9.9 million (2024: £8.8 million) based on 5% of adjusted profit before tax.
• Overall Company materiality: £2.8 million (2024: £2.6 million) based on 1% of total assets capped due to Group
materiality allocation.
• Performance materiality: £7.4 million (2024: £6.6 million) (Group) and £2.1 million (2024: £2.0 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.
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 Note 2 (Judgements and key sources of estimation
uncertainty and Accounting Policies) and Note 15 (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 debit of £11.1 million (2024: credit of
£2.2 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:
• Gained an understanding of, and evaluated the key processes used to calculate
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 and performed a cross check to third
party data;
• 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.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
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INDEPENDENT AUDITORS’ REPORT TO
THE MEMBERS OF CRANSWICK PLC
CONTINUED
Key audit matter
How our audit addressed the key audit matter
Risk of impairment of Investments in subsidiary undertakings
and Amounts owed by subsidiary 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 £83.8 million (2024:
£155.5 million) and amounts owed by subsidiary undertakings of
£320.9 million (2024: £169.0 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 our review of the financial performance of the subsidiaries;
and
• 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 subsidiary undertakings:
• We performed a reconciliation of the amounts owed by subsidiary
undertakings and ensured this agrees with the counterparty;
• We evaluated management’s assessment of the recoverability of amounts
owed by subsidiary undertakings including assessing the ability of other
subsidiary 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 subsidiary
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. Of these components, we have identified 1 component which we considered to be significant based on
size. We also audited material consolidation journals.
The 12 reporting units where we performed an audit of their complete financial information, and work performed centrally by the group team,
accounted for 87.8 per cent of the Group’s revenue and 74.5 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 6 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 over
13 of these reporting units to respond to any potential risks of material misstatement to the group financial statements. The remaining 5 reporting units
are considered to be inconsequential components.
Included within the 13 reporting units were 4 where we performed specific audit procedures over biological assets due to their contribution towards the
overall biological assets financial statement line item.
The parent Company is comprised of one reporting unit which was subject to a full scope audit by the group engagement team for the purposes of the
parent Company financial statements.
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.
The key areas of the financial statements where management evaluated that climate risk has a potential impact are the assumptions in relation to 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, 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 be impacted by climate risk and consequently we focused our audit work in
these areas: cash flows relating to the impairment assessment of goodwill and the net book values of 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.
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 29 March 2025.
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
£9.9 million (2024: £8.8 million).
£2.8 million (2024: £2.6 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 £2.0 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% (2024: 75%) of overall materiality, amounting to £7.4 million (2024: £6.6 million) for the group financial statements and £2.1 million
(2024: £2.0 million) for the Company 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 £0.5 million (Group audit)
(2024: £0.4 million) and £0.2 million (Company audit) (2024: £0.2 million) as well as misstatements below those amounts that, in our view, warranted
reporting for qualitative reasons.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
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INDEPENDENT AUDITORS’ REPORT TO
THE MEMBERS OF CRANSWICK PLC
CONTINUED
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, and outbreak of African
Swine Fever (‘ASF’) and/or Foot and Mouth Disease (‘FMD’) 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 29 March 2025 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.
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
• The directors’ statement as to whether they have a reasonable expectation that the Company will be able to continue in operation and meet its
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, 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.
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
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
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Cranswick plc Annual Report & Accounts 2025
153
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:
• Discussions with management, in house legal team and those charged with governance including consideration of known or suspected instances 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;
• Challenging assumptions and judgements made by management in their significant accounting estimates; and
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
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 8 years, covering the years ended
31 March 2018 to 29 March 2025.
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
20 May 2025
INDEPENDENT AUDITORS’ REPORT TO
THE MEMBERS OF CRANSWICK PLC
CONTINUED
GROUP INCOME STATEMENT
FOR THE 52 WEEKS ENDED 29 MARCH 2025
Notes
2025
£’m
2024
£’m
Revenue
3
2,723.3
2,599.3
Adjusted Group operating profit
206.9
185.1
Net IAS 41 valuation movement in biological assets
15
(11.1)
2.2
Amortisation of intangible assets
10
(3.6)
(5.0)
Impairment of intangible assets
10
(1.6)
(15.4)
Group operating profit
4
190.6
166.9
Finance costs
6
(9.2)
(8.9)
Share of net profit of joint venture
14
0.2
0.4
Profit before tax
181.6
158.4
Taxation
7
(47.3)
(45.3)
Profit for the year
134.3
113.1
Earnings per share
On profit for the year:
Basic earnings per share
9
250.5p
210.4p
Diluted earnings per share
9
246.1p
209.7p
An analysis of costs within Group operating profit is presented in Note 4.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
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GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE 52 WEEKS ENDED 29 MARCH 2025
Notes
2025
£’m
2024
£’m
Profit for the year
134.3
113.1
Other comprehensive income/(expense)
Other comprehensive income/(expense) to be reclassified to profit or loss in subsequent periods:
Cash flow hedges
Gains/(losses) arising in the year
20
0.3
(0.1)
Reclassification adjustments for gains/(losses) included in the income statement
20
0.1
(0.1)
Income tax effect
7
(0.1)
0.1
Net other comprehensive income/(expense) to be reclassified to profit or loss in subsequent periods
0.3
(0.1)
Other comprehensive expense not to be reclassified to profit or loss in subsequent periods:
Actuarial losses on defined benefit pension scheme
26
(0.2)
–
Income tax effect
7
–
–
Net other comprehensive expense not to be reclassified to profit or loss in subsequent periods
(0.2)
–
Other comprehensive income/(expense)
0.1
(0.1)
Total comprehensive income
134.4
113.0
GROUP BALANCE SHEET
AS AT 29 MARCH 2025
Notes
2025
£’m
2024
£’m
Non-current assets
Financial asset investment
13
0.1
0.1
Investment in joint venture
14
–
0.8
Intangible assets
10
210.9
213.5
Defined benefit pension scheme surplus
26
–
0.2
Property, plant and equipment
11
605.4
518.9
Right-of-use assets
12
123.7
92.4
Biological assets
15
4.3
6.4
Total non-current assets
944.4
832.3
Current assets
Biological assets
15
91.8
83.7
Inventories
16
126.9
113.7
Trade and other receivables
17
355.0
325.3
Other financial assets
18
0.3
–
Income tax receivable
6.9
2.0
Cash and short-term deposits
27
5.9
27.0
Total current assets
586.8
551.7
Total assets
1,531.2
1,384.0
Current liabilities
Trade and other payables
19
(328.1)
(310.0)
Other financial liabilities
20
(0.3)
(2.3)
Lease liabilities
12
(16.4)
(17.3)
Provisions
21
(2.4)
(1.8)
Total current liabilities
(347.2)
(331.4)
Non-current liabilities
Other payables
19
(0.5)
(0.9)
Other financial liabilities
20
(45.6)
(27.1)
Lease liabilities
12
(116.3)
(82.1)
Deferred tax liabilities
7
(32.0)
(28.4)
Provisions
21
(1.7)
(2.6)
Total non-current liabilities
(196.1)
(141.1)
Total liabilities
(543.3)
(472.5)
Net assets
987.9
911.5
Equity
Called-up share capital
23
5.4
5.4
Share premium account
133.0
128.3
Share-based payments
25
14.2
11.8
Shares held in trust
24
(35.4)
(15.6)
Hedging reserve
0.3
(0.1)
Retained earnings
870.4
781.7
Total equity attributable to owners of the Parent
987.9
911.5
The financial statements on pages 155 to 195 were approved by the Board of Directors on 20 May 2025 and signed on its behalf by
Tim J Smith CBE
Mark Bottomley
Chairman
Chief Financial Officer
20 May 2025
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
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157
Notes
2025
£’m
2024
£’m
Operating activities
Profit for the year
134.3
113.1
Adjustments to reconcile Group profit for the year to net cash inflows from operating activities:
Income tax expense
7
47.3
45.3
Net finance costs
6
9.2
8.9
Loss on sale of property, plant and equipment
0.9
1.0
Loss on disposal of right-of-use assets asset
–
0.2
Depreciation of property, plant and equipment
11
68.1
65.5
Depreciation of right-of-use assets
12
18.2
16.2
Amortisation of intangible assets
10
3.6
5.0
Impairment of intangible assets
10
1.6
15.4
Share-based payments
8.4
8.8
Share of joint venture
(0.2)
(0.4)
Release of Government grants
(0.4)
(0.4)
Net IAS41 valuation movement on biological assets
15
11.1
(2.2)
Increase in biological assets
(8.7)
(1.3)
(Increase)/decrease in inventories
(12.8)
0.3
Increase in trade and other receivables
(26.6)
(33.8)
Increase in trade and other payables
3.8
28.2
Cash generated from operations
257.8
269.8
Tax paid
(41.5)
(41.4)
Net cash inflow from operating activities
216.3
228.4
Cash flow from investing activities
Acquisition of subsidiaries, net of cash acquired
13
(25.0)
(23.5)
Distribution received from joint venture
14
0.2
–
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
(137.6)
(91.4)
Proceeds from the sale of property, plant and equipment
2.0
0.8
Net cash used in investing activities
(160.4)
(123.3)
Cash flow from financing activities
Interest paid
(2.7)
(5.0)
Proceeds from issue of share capital
4.7
4.4
Own shares purchased
24
(25.3)
(15.6)
Proceeds/(repayments) from borrowings
18.0
(14.0)
Repayment of borrowings acquired
13
–
(6.5)
Dividends paid
8
(49.5)
(43.9)
Payment of lease capital
(16.2)
(14.2)
Payment of lease interest
12
(6.0)
(3.6)
Net cash outflow from financing activities
(77.0)
(98.4)
Net (decrease)/increase in cash and cash equivalents
27
(21.1)
6.7
Cash and cash equivalents at beginning of year
27
27.0
20.3
Cash and cash equivalents at end of year
27
5.9
27.0
GROUP STATEMENT OF CASH FLOWS
FOR THE 52 WEEKS ENDED 29 MARCH 2025
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE 52 WEEKS ENDED 29 MARCH 2025
Share capital
Note (a)
£’m
Share
premium
Note (b)
£’m
Share-based
payments
Note (c)
£’m
Shares held
in trust
Note (d)
£’m
Hedging
reserve
Note (e)
£’m
Retained
earnings
£’m
Total
equity
£’m
At 25 March 2023
5.4
123.9
9.5
–
–
704.1
842.9
Profit for the year
–
–
–
–
–
113.1
113.1
Other comprehensive expense
–
–
–
–
(0.1)
–
(0.1)
Total comprehensive income/(expense)
–
–
–
–
(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
–
–
–
–
–
(43.9)
(43.9)
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
128.3
11.8
(15.6)
(0.1)
781.7
911.5
Profit for the year
–
–
–
–
–
134.3
134.3
Other comprehensive income/(expense)
–
–
–
–
0.4
(0.3)
0.1
Total comprehensive income
–
–
–
–
0.4
134.0
134.4
Share-based payments
–
–
8.4
–
–
–
8.4
Shares acquired by Employee Benefit Trust
–
–
–
(25.3)
–
–
(25.3)
Transfer to retained earnings on grant of shares to beneficiaries
of the Employee Benefit Trust
–
–
–
5.5
–
(5.5)
–
Exercise, lapse or forfeit of share-based payments
–
–
(6.0)
–
–
6.0
–
Share options exercised
–
4.7
–
–
–
–
4.7
Dividends
–
–
–
–
–
(49.5)
(49.5)
Deferred tax related to changes in equity
–
–
–
–
–
2.7
2.7
Current tax related to changes in equity
–
–
–
–
–
1.0
1.0
At 29 March 2025
5.4
133.0
14.2
(35.4)
0.3
870.4
987.9
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. 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 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.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
158
Cranswick plc Annual Report & Accounts 2025
159
NOTES TO THE ACCOUNTS
1. Authorisation of Financial Statements and Statement of Compliance with IFRSs
The Group Financial Statements of Cranswick plc for the 52 weeks ended 29 March 2025 were authorised for issue by the Board of Directors
on 20 May 2025 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 material 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 52 week
period ended 29 March 2025. Comparatives are for the 53 week period ended 30 March 2024. The Balance Sheets for 2025 and 2024 have been
prepared as at 29 March 2025 and 30 March 2024 respectively.
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 on page 166.
A summary of the material 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 and/or Foot and Mouth Disease in the UK and Europe, as well the Group’s considerable financial resources
and strong trading relationships with its key customers and suppliers. Directors have considered the impacts of changes in US tariffs and recent retail
cyber threats and have concluded that they would have minimal impact on the conclusion below. 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 83. As part of this review, the Directors have assessed the
Group’s ability to continue as a going concern over a 16-month period to July 2026. 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 12 months from the date of signing the 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, joint venture and investment for the 52 week
period ended 29 March 2025. 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.
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.
2. Accounting Policies (continued)
Significant estimates and assumptions:
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
assets
Note 15 – growth rate assumptions used in the fair value model.
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 22 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.
Poultry
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.
Share-based
payments
Note 25 – measurement of share-based 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 26 – pension scheme actuarial assumptions.
The valuation of the defined benefit pension scheme liability is determined using assumptions including mortality, discount rates and
inflation.
Significant judgements:
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 in the prior 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
current period or prior years.
Share-based
payments
Note 25 – measurement of share-based 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.
Pensions
Note 26 – 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
performance
measures
Note 31 – alternative performance measures.
Management apply judgement to identify the significant non-cash items to exclude when calculating adjusted performance measures.
The Board believe alternative measures are useful as they exclude volatile, one-off and non-cash items.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
160
Cranswick plc Annual Report & Accounts 2025
161
NOTES TO THE ACCOUNTS
CONTINUED
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.
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 31 March 2024, 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; and
• Amendments to IAS 12 ‘Income taxes’, ‘International Tax Reform – Pillar Two Model Rules’.
There was no material impact on the Consolidated Financial Statements from any amendments effective during the year.
Accounting standards or interpretations issued but not yet effective
IFRS 18 Presentation and Disclosure in Financial Statements: IFRS 18 was issued in April 2024 and will replace IAS 1 Presentation of Financial
Statements. IFRS 18 will be effective for reporting periods beginning on or after January 1, 2027. This standard sets out requirements for the
presentation and disclosure of information in Financial Statements, particularly the Consolidated Statement of Income. The standard introduces a
defined structure for the Consolidated Statement of Income, additional defined subtotals, new principles for aggregation and disaggregation of
information, and it mandates disclosures about management-defined performance measures.
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.
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. 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 31).
2. Accounting Policies (continued)
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.
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 Save As You Earn (‘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.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
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2. Accounting Policies (continued)
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 by assessing the recoverable amount of the cash-generating unit (‘CGU’) to which the goodwill relates. A CGU represents the
lowest level within the Group at which goodwill is monitored for internal management purposes and is not larger than an operating segment before
aggregation. Where the recoverable amount of a CGU is less than its carrying amount, an impairment loss is recognised in the income statement.
The recoverable amount is defined as the higher of:
• Fair value less costs to sell, which is determined based on the best available information, including discounted cash flow projections, less any direct
costs attributable to the disposal of the CGU; and
• Value in use, which is calculated by estimating the present value of future cash flows expected to be derived from the CGU, using assumptions
consistent with internal budgets and forecasts, discounted at an appropriate pre-tax rate.
If an impairment is identified, the carrying value of goodwill is written down immediately and is not subsequently reversed. When an entity is disposed of,
any associated goodwill is included in the carrying amount of the operation when determining the gain or loss on disposal, except for goodwill arising on
acquisitions prior to 31 March 2004, which was previously deducted from equity and 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, when readily identified, 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 reasonably 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.
NOTES TO THE ACCOUNTS
CONTINUED
2. Accounting Policies (continued)
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.
Government grants and contributions
Business Investment Scheme payments as well as government grants from the Rural Payments Agency and 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 includes 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 Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents net of outstanding
bank overdrafts.
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 Group Statement of Cash Flows.
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.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
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164
Cranswick plc Annual Report & Accounts 2025
165
2. Accounting Policies (continued)
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.
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 within 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’), a Buy As You Earn
(‘BAYE’) share incentive plan, through which Group employees are granted one Matching Share for every eight Partnership Shares they purchase,
and 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.
NOTES TO THE ACCOUNTS
CONTINUED
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 acquisitions of J.S.R. Genetics Limited as well as Piggy Green Limited and Fornham Pigs Limited are included within the Fresh Pork 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.
2025
2024
£’m
Food
Other
Total
Food
Other
Total
Revenue
2,686.6
36.7
2,723.3
2,573.9
25.4
2,599.3
Adjusted operating profit/(loss)
210.3
(3.4)
206.9
192.5
(7.4)
185.1
Finance costs
(8.0)
(1.2)
(9.2)
(8.9)
–
(8.9)
Share of net profit of joint venture
0.2
–
0.2
0.4
–
0.4
Adjusted profit/(loss) before tax
202.5
(4.6)
197.9
184.0
(7.4)
176.6
Assets
1,503.0
28.2
1,531.2
1,355.0
29.0
1,384.0
Liabilities
(510.7)
(32.6)
(543.3)
(446.2)
(26.3)
(472.5)
Net assets/(liabilities)
992.3
(4.4)
987.9
908.8
2.7
911.5
Depreciation
84.0
2.3
86.3
79.0
2.7
81.7
Property, plant and equipment and right-of-use asset additions
150.0
2.7
152.7
120.0
6.0
126.0
Geographical segments
The following table sets out revenues by destination, regardless of where the goods were produced:
2025
£’m
2024
£’m
UK
2,651.2
2,543.7
Continental Europe
26.2
24.9
Rest of World
45.9
30.7
2,723.3
2,599.3
In addition to the non-UK sales disclosed above, the Group also made sales to export markets through UK-based meat trading agents totalling
£52.3 million (2024: £59.5 million). Including these sales, total sales to export markets were £124.4 million for the year (2024: £115.1 million).
The Group’s non-current assets were all located within the UK during both 2025 and 2024.
Customer concentration
The Group has four customers (2024: three) which individually account for more than ten per cent of the Group’s total revenue. These customers
account for 23 per cent, 16 per cent, 11 per cent and 10 per cent respectively. In the prior year, these same four customers accounted for 21 per cent, 16
per cent, 10 per cent and 9 per cent respectively.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
166
Cranswick plc Annual Report & Accounts 2025
167
4. Group Operating Profit
Group operating costs comprise:
2025
£’m
2024
£’m
Cost of sales excluding net IAS 41 valuation movement on biological assets
2,303.4
2,224.6
Net IAS 41 valuation movement on biological assets*
11.1
(2.2)
Cost of sales
2,314.5
2,222.4
Gross profit
408.8
376.9
Selling and distribution costs
112.8
100.0
Administrative expenses excluding impairment and amortisation of intangible assets
100.2
95.3
Impairment of intangible assets
1.6
15.4
Amortisation of intangible assets
3.6
5.0
Administrative expenses
105.4
115.7
Other operating income
–
(5.7)
Total operating costs
2,532.7
2,432.4
*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 in the prior year were credits for insurance claims received. No further insurance receipts have been received in
the current year. The net impact of these claims was not material.
Group operating profit is stated after charging/(crediting):
2025
£’m
2024
£’m
Depreciation of property, plant and equipment
68.1
65.5
Depreciation of right-of-use assets
18.2
16.2
Amortisation of intangible assets
3.6
5.0
Impairment of intangible assets
1.6
15.4
Release of government grants
(0.4)
(0.4)
Short-term, low-value lease payments
1.7
1.9
Net foreign currency differences
1.0
(0.5)
Cost of inventories recognised as an expense
1,325.1
1,339.3
Increase in provision for inventories
3.5
1.2
Increase in provision for impairment of receivables
–
0.2
Auditor’s 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 110.
NOTES TO THE ACCOUNTS
CONTINUED
5. Employees
2025
£’m
2024
£’m
Staff costs:
Wages and salaries
433.2
388.4
Social security costs
44.7
35.8
Other pension costs
11.1
9.7
489.0
433.9
Included within wages and salaries is a total expense for share-based payments of £8.4 million (2024: £8.8 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:
2025
Number
2024
Number
Production
10,800
9,720
Selling and distribution
624
490
Administration
844
828
12,268
11,038
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 Annual Report on Director’s Remuneration on pages 123 to 133. The employee costs shown above include the following
remuneration in respect of Directors of the Company:
2025
£’m
2024
£’m
Directors’ remuneration
8.2
7.2
Aggregate gains made by Directors on exercise of share options
5.7
2.8
Number of Directors receiving pension contributions under money purchase schemes
2
1
Details of Directors’ remuneration can be found in the Annual Report on Director’s Remuneration on pages 123 to 133. The total Directors’
remuneration of £8.2 million (2024: £7.2 million) comprises salary and fees £3.1 million (2024: £2.9 million), benefits £0.1 million (2024: £0.1 million),
bonus £4.7 million (2024: £3.9 million) and pension £0.3 million (2024: £0.3 million). The difference between pension contributions noted above and
pension contributions on page 123 is cash paid in lieu of pension.
6. Finance Costs
2025
£’m
2024
£’m
Finance costs:
Bank interest paid and similar charges
3.2
5.3
Total interest expense for financial liabilities not at fair value through profit or loss
3.2
5.3
Lease interest
6.0
3.6
Total finance costs
9.2
8.9
The interest relates to financial assets and liabilities carried at amortised cost.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
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7. Taxation
a) Analysis of tax charge in the year
Tax charge based on the profit for the year:
2025
£’m
2024
£’m
Current income tax:
UK corporation tax on profit for the year
41.7
37.8
Adjustments in respect of prior years
0.6
0.7
Total current tax
42.3
38.5
Deferred tax:
Origination and reversal of temporary differences
6.2
7.5
Adjustments in respect of prior years
(1.2)
(0.7)
Total deferred tax
5.0
6.8
Tax on profit
47.3
45.3
Tax relating to items charged or credited to other comprehensive income or directly to equity:
2025
£’m
2024
£’m
Recognised in Group Statement of Comprehensive Income
Deferred tax on revaluation of cash flow hedges
0.1
(0.1)
Deferred tax on actuarial losses on defined benefit pension scheme
0.1
0.1
Corporation tax credit on defined benefit pension scheme
(0.1)
(0.1)
0.1
(0.1)
Recognised in Group Statement of Changes in Equity
Deferred tax credit on share-based payments
(2.7)
(1.4)
Corporation tax credit on share options exercised
(1.0)
(0.5)
(3.7)
(1.9)
Total tax credit recognised directly in equity
(3.6)
(2.0)
b) Factors affecting tax charge for the year
The tax assessed for the year is higher (2024: higher) than the standard rate of corporation tax in the UK. The differences are explained below:
2025
£’m
2024
£’m
Profit before tax
181.6
158.4
Profit multiplied by standard rate of corporation tax in the UK of 25 per cent (2024: 25 per cent)
45.4
39.6
Effect of:
Expenses which are not deductible for tax purposes
2.5
1.9
Goodwill impairment
–
3.8
Adjustments in respect of prior years
(0.6)
–
Total tax charge for the year
47.3
45.3
NOTES TO THE ACCOUNTS
CONTINUED
7. Taxation (continued)
c) Deferred tax
The deferred tax included in the Group Balance Sheet is as follows:
2025
£’m
2024
£’m
Deferred tax liability in the balance sheet
Accelerated capital allowances
41.1
29.2
Business combinations
3.5
3.6
Losses
(0.5)
(0.6)
Biological assets
(3.2)
(0.1)
Right-of-use asset
26.9
18.9
Right-of-use liability
(28.5)
(19.9)
Other temporary differences
–
0.2
Share-based payments
(8.4)
(5.2)
Deferred tax on defined benefit pension scheme
(0.1)
(0.2)
Intangible assets
1.2
2.5
Deferred tax liability
32.0
28.4
2025
£’m
2024
£’m
Deferred tax liability in the balance sheet
At 30 March 2024
28.4
20.7
Recognised in income statement
6.2
7.5
Prior year adjustments recognised in income statement
(1.2)
(0.7)
Acquired on acquisitions in the year
1.1
2.3
Recognised in statement of comprehensive income
0.2
–
Recognised in statement of changes in equity
(2.7)
(1.4)
At 29 March 2025
32.0
28.4
The deferred tax included in the income statement is as follows:
2025
£’m
2024
£’m
Deferred tax liability in the income statement
Accelerated capital allowances
10.5
8.2
Business combinations
(0.1)
(0.1)
Losses
0.1
0.9
Biological assets
(2.8)
0.6
Right-of-use asset
8.0
2.9
Right-of-use liability
(8.6)
(3.3)
Other temporary differences
(0.3)
0.1
Share-based payments
(0.5)
(1.2)
Intangible assets
(1.3)
(1.3)
Deferred tax liability
5.0
6.8
The deferred tax liability is not expected to be settled within the next 12 months.
d) The Global Anti-Base Erosion Rules (‘Pillar Two’)
The Group has performed a detailed assessment of its potential exposure to Pillar Two tax, taking into consideration the transitional safe harbours.
This assessment is based on a review of the most recent tax filings, country by country reporting and financial statements for the Group entities.
Based on this assessment, the Pillar Two effective rates in all jurisdictions in which the Group operates are above 15 per cent. The business is not
currently aware of circumstances under which this might change and therefore they do not expect the Group to have an exposure to Pillar Two
top-up taxes.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
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Cranswick plc Annual Report & Accounts 2025
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8. Equity Dividends
2025
£’m
2024
£’m
Declared and paid during the year:
Final dividend for 2024 – 67.3p per share (2023: 58.8p)
36.1
31.7
Interim dividend for 2025 – 25.0p per share (2024: 22.7p)
13.4
12.2
Dividends paid
49.5
43.9
Proposed for approval of Shareholders at the Annual General Meeting on 28 July 2025:
Final dividend for 2025 – 76.0p per share (2024: 67.3p)
41.2
36.3
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 £134.3 million
(2024: £113.1 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:
2025
Thousands
2024
Thousands
Basic weighted average number of shares
53,581
53,776
Dilutive potential ordinary shares — share options
954
187
54,535
53,963
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 31).
10. Intangible Assets
Goodwill
£’m
Trademark
£’m
Customer
relationships
£’m
Total
£’m
Cost
At 26 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
Acquired on acquisitions
2.6
–
–
2.6
At 29 March 2025
221.3
5.7
38.5
265.5
Amortisation and impairment
At 26 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
Amortisation
–
1.2
2.4
3.6
Impairment
–
0.8
0.8
1.6
At 29 March 2025
15.1
5.4
34.1
54.6
Net book value
At 25 March 2023
213.0
3.3
6.9
223.2
At 30 March 2024
203.6
2.3
7.6
213.5
At 29 March 2025
206.2
0.3
4.4
210.9
Intangible assets related to trademarks and customer relationships are amortised over a remaining term of one to five years.
NOTES TO THE ACCOUNTS
CONTINUED
10. Intangible Assets (continued)
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:
2025
£’m
2024
£’m
Fresh Pork
21.7
21.8
Livestock*
26.0
23.3
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
Other
6.3
6.3
206.2
203.6
* 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.
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 (2024: 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 12.8 per cent (2024: 12.0 per cent) has been applied in determining the recoverable amounts of all CGUs, 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 FY25 served as a potential indicator for intangible asset impairment, prompting the completion of an
impairment assessment in March 2025.
Two additional intangible assets were recognised on acquisition, customer relationships and trademark. Both assets were separately tested for
impairment and, given the change in both business model and a greater focus on new customer relationships, both assets were fully impaired at
£0.8 million each.
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.
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.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
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Cranswick plc Annual Report & Accounts 2025
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10. Intangible Assets (continued)
The recoverable amount of each CGU would equal its carrying amount if the key assumptions were to change as follows:
Cash generating units
Budgeted gross
margin (£’m)
Other operating
costs (£’m)
Pre-tax discount
rate (%)
Fresh Pork and Livestock
(15%)
21%
20%
Cooked Meats
(8%)
9%
11%
Continental Fine Foods
(9%)
12%
8%
Premium Cooked Poultry
(7%)
9%
10%
Fresh Chicken
(15%)
24%
19%
Other
(9%)
12%
15%
The Directors and management have considered and assessed reasonably 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
Freehold land
and buildings
£’m
Plant,
equipment and
vehicles
£’m
Assets in the
course of
construction
£’m
Total
£’m
Cost
At 26 March 2023
272.3
486.8
27.0
786.1
Additions
6.6
35.8
49.0
91.4
Acquired on acquisition
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
Additions
15.1
26.6
95.7
137.4
Acquired on acquisition
17.1
3.0
–
20.1
Transfers between categories
10.7
41.0
(51.7)
–
Disposals
(3.5)
(24.4)
–
(27.9)
At 29 March 2025
347.8
577.8
90.5
1,016.1
Depreciation
At 26 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
–
367.6
Charge for the year
11.6
56.5
–
68.1
Relating to disposals
(3.2)
(21.8)
–
(25.0)
At 29 March 2025
69.3
341.4
–
410.7
Net book amounts
At 25 March 2023
221.8
215.3
27.0
464.1
At 30 March 2024
247.5
224.9
46.5
518.9
At 29 March 2025
278.5
236.4
90.5
605.4
Included in freehold land and buildings is land with a cost of £50.1 million (2024: £35.4 million), which is not depreciated.
Cost includes £1.9 million (2024: £1.9 million) in respect of capitalised interest. Interest of £nil was capitalised during the year (2024: £0.3 million).
NOTES TO THE ACCOUNTS
CONTINUED
12. Right-of-use Assets
Amounts recognised in the balance sheet
The balance sheet shows the following amounts relating to leases:
Land and
buildings
£’m
Plant, equipment
and vehicles
£’m
Total
£’m
Cost
At 26 March 2023
107.5
8.8
116.3
Acquired on acquisition
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
Acquired on acquisition
4.4
–
4.4
Additions
10.2
5.1
15.3
Modifications
30.1
–
30.1
Disposals
(4.0)
(3.0)
(7.0)
At 29 March 2025
164.7
15.8
180.5
Depreciation
At 26 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
Charge for the year
14.5
3.7
18.2
Relating to disposals
(3.7)
(3.0)
(6.7)
At 29 March 2025
50.7
6.1
56.8
Net book amounts
At 25 March 2023
72.8
3.5
76.3
At 30 March 2024
84.1
8.3
92.4
At 29 March 2025
114.0
9.7
123.7
2025
£’m
2024
£’m
Lease liabilities:
Current
16.4
17.3
Non-current
116.3
82.1
132.7
99.4
Amounts recognised in the Income Statement
The Income Statement shows the following amounts relating to leases:
2025
£’m
2024
£’m
Depreciation charge on right-of-use assets:
Land and buildings
14.5
13.3
Plant, equipment and vehicles
3.7
2.9
18.2
16.2
Interest expense (included in finance costs)
6.0
3.6
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
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Cranswick plc Annual Report & Accounts 2025
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13. Acquisitions
i) J.S.R. Genetics Limited
On 20 January 2025, the Group acquired 100 per cent of the issued share capital of J.S.R. Genetics Limited and its subsidiary JSR Pyramid Limited,
which combined are a pig production and genetics business based in East Yorkshire, for cash consideration of £14.4 million.
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 assets 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 J.S.R. Genetics Limited
and its subsidiary.
Provisional fair
value
£’m
Net assets acquired:
Property, plant and equipment
18.6
Right-of-use assets
4.4
Biological assets
6.6
Inventories
0.3
Trade and other receivables
1.9
Bank and cash balances
(5.3)
Trade and other payables
(8.5)
Income tax payable
(0.3)
Lease liabilities
(4.4)
Deferred tax liability
(0.8)
12.5
Goodwill arising on acquisition
1.9
Total consideration
14.4
Satisfied by:
Initial cash consideration
14.2
Deferred consideration
0.2
14.4
Net cash outflow arising on acquisition:
Cash consideration paid
14.2
Cash and cash equivalents acquired
5.3
19.5
The fair values on acquisition are provisional pending finalisation of the completion accounts and will be finalised 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.
No customer relationship intangible asset has been recognised as the acquisition was undertaken in line with the Group’s focus on increasing self-
sufficiency in British pigs. There are no trademarks linked to J.S.R. Genetics Limited or its subsidiary.
Included in the £1.9 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 £0.5 million have been expensed within administrative expenses.
From the date of acquisition to 29 March 2025, the external revenue of J.S.R. Genetics Limited and its subsidiary combined was £3.8 million and the
combined net profit after tax was £0.3 million.
Had the acquisition taken place at the beginning of the financial year, Group revenue would have been £2,738.5 million, and Group profit after tax would
have been £135.4 million.
In addition to the cash consideration of £14.4 million, the Group immediately paid a further £7.0 million consisting of £5.3 million bank overdraft and
£1.7 million other payables settled on acquisition. There is also a further £2.2 million other payables due to the previous owner and related parties
payable post-acquisition upon finalisation of certain property related conditions.
NOTES TO THE ACCOUNTS
CONTINUED
13. Acquisitions (continued)
ii) Piggy Green Limited and Fornham Pigs Limited
On 28 June 2024, the Group acquired 100 per cent of the issued share capital of Piggy Green Limited and Fornham Pigs Limited, both of which are
outdoor pig breeders based in East Anglia, for cash consideration of £4.0 million.
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 assets 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 Piggy Green Limited
and Fornham Pigs Limited.
Provisional fair
value
£’m
Net assets acquired:
Property, plant and equipment
1.5
Biological assets
1.3
Inventories
0.1
Trade and other receivables
0.9
Bank and cash balances
0.2
Trade and other payables
(0.4)
Deferred tax liability
(0.3)
3.3
Goodwill arising on acquisition
0.7
Total consideration
4.0
Satisfied by:
Initial cash consideration
3.8
Deferred consideration
0.2
4.0
Net cash outflow arising on acquisition:
Cash consideration paid
3.8
Cash and cash equivalents acquired
(0.2)
3.6
The fair values on acquisition are provisional pending finalisation of the completion accounts and will be finalised 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.
No customer relationship intangible asset has been recognised as the acquisition was undertaken in line with the Group’s focus on increasing self-
sufficiency in British pigs. There are no trademarks linked to Piggy Green Limited or Fornham Pigs Limited.
Included in the £0.7 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 £0.2 million have been expensed within administrative expenses.
From the date of acquisition to 29 March 2025, the external revenue of Piggy Green Limited and Fornham Pigs Limited combined was £0.2 million and
the combined net profit after tax was less than £0.1 million.
Had the acquisition taken place at the beginning of the financial year, Group revenue would have been £2,723.5 million with no change to Group profit
after tax.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
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176
Cranswick plc Annual Report & Accounts 2025
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13. Acquisitions (continued)
iii) Froch Foods Limited
On 19 January 2024, the Group acquired 100 per cent of the share capital of a holding entity Froch Foods Holding Limited and its subsidiary Froch
Foods Limited, an added value processor of predominantly pork and poultry related products, together with associated leasehold buildings, for cash
consideration of £9.7 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 in relation to Froch Foods Limited.
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
(4.2)
Lease liabilities
(1.4)
Provisions
(0.6)
Deferred tax liability
(1.7)
7.1
Goodwill arising on acquisition
2.6
Total consideration
9.7
Satisfied by:
Initial cash consideration
9.4
Deferred consideration
0.3
9.7
Net cash outflow arising on acquisition:
Cash consideration paid
9.4
Cash and cash equivalents acquired
(1.6)
7.8
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 in the prior year.
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.
NOTES TO THE ACCOUNTS
CONTINUED
13. Acquisitions (continued)
iv) 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 cash consideration of £11.6 million.
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 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 prior year. No further amounts payable are recognised at the year end.
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 in the prior year.
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 prior 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.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
178
Cranswick plc Annual Report & Accounts 2025
179
13. Acquisitions (continued)
v) Financial asset investment – BIA Analytical Ltd
On 22 September 2023, the Group acquired 2.90 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.
vi) Deferred and Contingent Consideration
The Sale and Purchase agreements for Atlantica UK Limited and Ramona’s Kitchen Limited included deferred 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 by calculating the present value of the future expected
cashflows. During the period, the Atlantica deferred contingent consideration was finalised, resulting in a cash payment of £0.6 million with £0.1 million
being released to the Group Income Statement, and payment of £1.0 million of the Ramona’s Kitchen Limited deferred contingent consideration was
made in addition to the £1.0 million paid in the prior year.
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 the completion accounts. The estimated amount payable was £0.4 million. Following the finalisation of the completion accounts, the
deferred consideration was reduced by £0.1 million and a cash payment of £0.3 million was made in the period.
The Sale and Purchase agreements for Piggy Green Limited and Fornham Pigs Holdings Limited included deferred consideration payable in cash to the
previous owners based on the finalisation of certain contractual arrangements. The amount payable is estimated at £0.2 million and due for payment
within the next year.
14. Investment in joint venture
2025
£’m
2024
£’m
Share of net assets
–
0.8
Total interests in joint venture
–
0.8
The Group had one joint venture (50 per cent interest), Mere Pigs, whose principal activity was commercial pig farming. The joint venture was dissolved
in October 2024, leaving the Group with no joint ventures at the year end. Upon dissolution, the joint venture distributed its assets to its
controlling parties.
The following table summarises financial information for the joint venture. Unless specifically indicated, this information represents 100 per cent of the
joint venture before intercompany eliminations.
£’m
Investment as at 30 March 2024
0.8
Revenue
1.9
Interest expense
–
Income tax expense
–
Profit for the period
0.4
Group share of profit
0.2
Cash distributions received from joint venture
(0.2)
Distribution of assets other than cash upon dissolution
(0.8)
Investment as at 29 March 2025
–
NOTES TO THE ACCOUNTS
CONTINUED
15. 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
£’m
Chickens
£’m
Total
£’m
At 26 March 2023
68.6
10.5
79.1
Increase due to purchases
29.7
17.6
47.3
Increase due to acquisition
7.5
–
7.5
Decrease attributable to harvest
(298.5)
(196.8)
(495.3)
Decreases 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
Increase due to purchases
23.2
18.9
42.1
Increase due to acquisition
7.9
–
7.9
Increase due to dissolution of joint venture
0.5
–
0.5
Decrease attributable to harvest
(327.6)
(212.0)
(539.6)
Decreases attributable to sales
(6.8)
(0.7)
(7.5)
Changes in fair value less estimated costs to sell
308.2
194.4
502.6
At 29 March 2025
84.5
11.6
96.1
2025
£’m
2024
£’m
Non-current biological assets:
Pigs
3.8
5.7
Chickens
0.5
0.7
4.3
6.4
Current biological assets:
Pigs
80.7
73.4
Chickens
11.1
10.3
91.8
83.7
2025
£’m
2024
£’m
Net IAS 41 valuation movement on biological assets*
Changes in fair value of biological assets
502.6
459.8
Biological assets transferred to cost of sales
(513.7)
(457.6)
(11.1)
2.2
* 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 not 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, artificial insemination boars (‘AI 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.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
180
Cranswick plc Annual Report & Accounts 2025
181
15. Biological Assets (continued)
The main assumptions used in relation to the valuation are growth and mortality rates of chickens and a market price for sucklers and weaners.
Additional information:
2025
Number
2024
Number
Quantities at year end:
Breeding sows (Bearer biological assets)
80,785
71,237
AI Boars
281
–
Boars
1,486
1,315
Pigs (Consumable biological assets)
912,565
755,051
Breeder chickens (Bearer biological assets)
472,216
441,050
Broiler chickens (Consumable biological assets)
5,325,657
6,007,274
Number of pigs produced in the year
1,797,836
1,570,358
Number of chickens produced in the year
73,582,499
61,985,710
16. Inventories
2025
£’m
2024
£’m
Raw materials and work in progress
76.8
70.7
Finished goods and goods for resale
33.6
28.1
Packaging and consumables
16.5
14.9
126.9
113.7
Inventories are shown net of any provision for slow-moving or obsolete inventory. As at 29 March 2025, the provision against inventory was £9.9 million
(2024: £6.4 million).
The change in the presentation of inventory balances includes a transfer of £16.5 million (2024: £14.9 million) from the ‘Finished goods and goods for
resale’ category to ‘packaging and consumables’, in order to aid users’ understanding of the accounts.
17. Trade and Other Receivables
2025
£’m
2024
£’m
Financial assets:
Trade receivables
317.1
295.0
Other receivables
23.0
15.7
340.1
310.7
Non-financial assets:
Prepayments
14.9
14.6
355.0
325.3
The above assets are carried at amortised cost. As at 29 March 2025 and 30 March 2024, the analysis of trade receivables that were past due was
as follows:
Trade
receivables
Of which:
Not due
Past due in the following periods
£’m
£’m
Less than 30
days
£’m
Between 30 and
60 days
£’m
More than 60
days
£’m
2025
317.1
270.6
43.5
2.4
0.6
2024
295.0
255.4
37.2
1.3
1.1
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 0.03 per cent to 1.03 per cent and in the prior
year range from 0.0 per cent to 0.08 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.
NOTES TO THE ACCOUNTS
CONTINUED
17. Trade and Other Receivables (continued)
As at 29 March 2025, the provision for impairment of trade receivables was £2.6 million (2024: £2.7 million), of which £1.8 million (2024: £2.0 million)
resulted from ECL calculations referred to above.
Movements in the provision for impairment of receivables were as follows:
£’m
Bad debt provision:
At 26 March 2023
2.5
Provided in the year
0.7
Released
(0.4)
Utilised
(0.1)
At 30 March 2024
2.7
Provided in the year
0.6
Released
(0.6)
Utilised
(0.1)
At 29 March 2025
2.6
There are no bad debt provisions against other receivables.
18. Other Financial Assets
2025
£’m
2024
£’m
Current:
Forward currency contracts
0.3
–
0.3
–
19. Trade and Other Payables
2025
£’m
2024
£’m
Current:
Trade payables
191.4
180.0
Tax and social security
15.9
11.1
Other creditors
24.1
19.8
Commercial accruals*
21.0
18.5
Other accruals
75.3
80.2
Deferred income – Government grants
0.4
0.4
328.1
310.0
Non-current:
Deferred income — Government grants
0.5
0.9
* See breakdown below.
Government grants received relate to Regional Growth Fund, Rural Development Programme for England, Rural Payments Agency and Business
Investment Scheme payments. The amounts received have been used for slurry acidification and to fund fixed asset investment with the objective
of creating and safeguarding jobs at the Group’s facilities.
Commercial accruals consist of:
Volume rebates
and similar
allowances
£’m
Advertising and
marketing
contributions
£’m
Total
£’m
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
Charged to Income Statement
22.8
10.7
33.5
Paid
(22.5)
(8.5)
(31.0)
At 29 March 2025
16.2
4.8
21.0
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
182
Cranswick plc Annual Report & Accounts 2025
183
20. Other Financial Liabilities
2025
£’m
2024
£’m
Current:
Forward currency contracts
–
0.2
Deferred and contingent consideration (Note 13)
0.3
2.1
0.3
2.3
Non-current:
Amounts outstanding under revolving credit facility
46.0
28.0
Unamortised issue costs
(0.4)
(0.9)
45.6
27.1
2025
£’m
2024
£’m
Movement on hedging instruments:
Gains/(losses) arising in the year
0.3
(0.1)
Reclassification adjustment for gains/(losses) included in the income statement
0.1
(0.1)
0.4
(0.2)
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 22.
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.
£nil (2024: £nil) of the overdraft facility was utilised at 29 March 2025. Interest on the overdraft is payable at a margin over base rate. £46.0 million
(2024: £28.0 million) of the revolving credit facility was utilised as at 29 March 2025. 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 (2024: £2.2 million) are being amortised over the period of the facility.
The maturity profile of bank loans is as follows:
2025
£’m
2024
£’m
In one year or less
–
–
Between one year and two years
46.0
–
Between two and five years
–
28.0
46.0
28.0
Unamortised issue costs
(0.4)
(0.9)
45.6
27.1
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 110.2x at 29 March 2025. Adjusted leverage (which
is required to be less than 3x covered) is calculated as net debt divided by Adjusted EBITDA and was 0.14x at 29 March 2025. 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 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.
NOTES TO THE ACCOUNTS
CONTINUED
21. Provisions
Lease provisions
£’m
Other
£’m
Total provisions
£’m
At 31 March 2024
3.6
0.8
4.4
Created
0.7
–
0.7
Utilised
(0.7)
(0.1)
(0.8)
Released
(0.2)
–
(0.2)
At 29 March 2025
3.4
0.7
4.1
Analysed as:
2025
£’m
2024
£’m
Current liabilities
2.4
1.8
Non-current liabilities
1.7
2.6
4.1
4.4
Lease provisions are held against dilapidation obligations on leased properties. These provisions are expected to be utilised over the next five years.
22. Financial Instruments
An explanation of the Group’s financial instruments risk management strategy is set out on page 144 in the Directors’ Report.
Biological asset
To provide an indication about the reliability 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
£’m
Level 2
£’m
Level 3
£’m
Total
£’m
At 29 March 2025
Breeding sows (Bearer biological assets)
–
6.5
–
6.5
Boars
–
0.2
–
0.2
AI Boars
–
1.3
–
1.3
Finished pigs (Consumable biological assets)
–
–
56.1
56.1
Sucklers and weaners (Consumable biological assets)
–
–
20.4
20.4
Breeder chickens (Bearer biological assets)
–
2.8
–
2.8
Eggs
–
0.7
–
0.7
Broiler chickens (Consumable biological assets)
–
8.1
–
8.1
Total biological assets
–
19.6
76.5
96.1
Level 1
£’m
Level 2
£’m
Level 3
£’m
‘Total
£’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
Eggs
–
0.5
–
0.5
Broiler chickens (Consumable biological assets)
–
8.2
–
8.2
Total biological assets
–
23.3
66.8
90.1
For pigs, in 2022, there was 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 was no change in underlying methodology applied, however as
these suckler and weaner prices were 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. There have been no further changes in the current year.
The prior year Level 2 value has been updated to include eggs (£0.5 million).
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
184
Cranswick plc Annual Report & Accounts 2025
185
22. Financial Instruments (continued)
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 30 March 2024
66.8
Increase due to purchases
16.6
Increase due to acquisition
5.9
Decrease attributable to harvest
(324.5)
Decreases attributable to sales
(5.1)
Changes in fair value less estimated costs to sell
316.8
At 29 March 2025
76.5
The (losses)/gains recognised in relation to the sucklers, weaners and finished pigs are as follows:
2025
£’m
2024
£’m
Net total (losses)/gains for the period recognised in profit or loss under ‘Change in fair value of biological assets’
(3.6)
6.4
Net change in unrealised gains for the period recognised in profit or loss attributable to sucklers, weaners and finishers
held at the end of the reporting period
2.0
6.7
The following table summarises the quantitative information about the significant unobservable inputs used in the fair value measurements of the
weaners, sucklers and finishers.
Fair value
Range of inputs
Relationship of unobservable
inputs to fair value
Description
2025
£’m
2024
£’m
Unobservable
inputs
2025
£
2024
£
Weaners and sucklers
20.4
16.9
Suckler price
49.98 – 51.98
51.98 – 55.40 The higher the market price,
the higher the fair value.
Weaner price
58.84 – 61.20
56.70 – 64.69
Finished pigs
56.1
49.9
Finisher price
169.85– 203.58
182.83 – 215.19
Increase/decrease in basis points
Effect on profit before tax
£’m
2025
2024
Weaners, sucklers and finishers
+1,000
3.2
2.8
-1,000
(3.2)
(2.8)
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 £3.2 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 29 March 2025 and their weighted
average interest rates is set out below.
As at 29 March 2025
Fixed interest
Weighted average effective
interest rate
%
Total
£’m
At floating
interest rates
£’m
1 year or less
£’m
1–2 years
£’m
2–3 years
£’m
Financial liabilities:
Revolving credit facility
5.9%
(46.0)
(46.0)
–
–
–
Financial assets:
Cash at bank
0.0%
5.9
5.9
–
–
–
(40.1)
(40.1)
–
–
–
NOTES TO THE ACCOUNTS
CONTINUED
22. Financial Instruments (continued)
As at 30 March 2024
Fixed interest
Weighted average effective
interest rate
%
Total
£’m
At floating
interest rates
£’m
1 year or less
£’m
1–2 years
£’m
2–3 years
£’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)
–
–
–
The maturity profile of bank loans is set out in Note 20.
Currency profile
The Group’s financial assets at 29 March 2025 include Sterling denominated cash balances of £4.4 million (2024: £20.5 million), Euro £1.2 million
(2024: £6.2 million), and US Dollar £0.3 million (2024: £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.
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. These debts are reviewed using lifetime expected credit losses considering both
historic and forward looking data which then generates an expected loss rate and provision. 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 at the end of the prior 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.
2025
2024
Book Value
£’m
Fair Value
£’m
Book Value
£’m
Fair Value
£’m
Forward currency contracts (asset)/liability (Note 18 and Note 20)
(0.3)
(0.3)
0.2
0.2
Contingent consideration (Note 13 and Note 20)
–
–
1.7
1.7
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.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
186
Cranswick plc Annual Report & Accounts 2025
187
22. Financial Instruments (continued)
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.
Currency
Amount
Maturities
Exchange rates
Fair Value
£’m
Euros
€54.6m
31 Mar 2025 – 01 Dec 2025
1.17 – 1.21
(0.1)
US Dollar
$8.0m
7 April 2025 – 25 Jun 2025
1.23 – 1.30
(0.2)
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.
Increase/
decrease in basis
points
Effect on profit
before tax
£’m
2025
Sterling
+100
(0.3)
-100
0.3
2024
Sterling
+100
(0.8)
-100
0.8
Liquidity risk
The tables below summarise the maturity profile of the Group’s financial liabilities at 29 March 2025 and 30 March 2024 based on contractual
undiscounted payments:
As at 29 March 2025
Less than 1 year
£m
1–2 years
£m
2–5 years
£m
‘Over 5 years
£m
Total
£m
Revolving credit facility
–
46.0
–
–
46.0
Deferred and contingent consideration
0.3
–
–
–
0.3
Trade and other payables
328.1
0.5
–
–
328.6
Lease liabilities
22.5
20.9
51.9
71.4
166.7
350.9
67.4
51.9
71.4
541.6
As at 30 March 2024
Less than 1 year
£m
1–2 years
£m
2–5 years
£m
‘Over 5 years
£m
Total
£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
The impact of liquidity risk on the Group is discussed in detail in the Directors’ Report on page 144.
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 142 of the Directors’ Report. An analysis of the changes in net debt can be found in Note 27.
NOTES TO THE ACCOUNTS
CONTINUED
23. Called-up Share Capital
Allotted, called-up and fully paid – Ordinary shares of 10 pence each:
2025
Number
2024
Number
2025
£’m
2024
£’m
At beginning of year
54,007,610
53,702,395
5.4
5.4
On exercise of share options
185,762
302,549
–
–
Deferred Bonus Plan
–
2,666
–
–
At end of year
54,193,372
54,007,610
5.4
5.4
During the course of the year, 185,762 ordinary shares were issued to employees exercising SAYE and LTIP options at prices between nil and
2,899.0 pence.
Ordinary share capital of £41,395 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
7,934
2,534p
March 2023 – October 2025
Savings related
25,083
2,800p
March 2024 – October 2026
Savings related
99,980
2,899p
March 2025 – October 2027
Savings related
273,100
2,498p
March 2026 – October 2028
LTIP
7,850
Nil
Until July 2033
24. Shares held in trust
The Shares held in trust reserve represents the cost of shares in Cranswick plc purchased in the market and held by the Cranswick Employee Benefit
Trust (the ‘Trust’) to satisfy share awards under the Group’s Long-Term Incentive Plan and SAYE scheme. Shares held in trust are recorded at cost and
deducted from equity.
The number of ordinary shares held by the Trust at 29 March 2025 was 775,565 (2024: 400,250) which represents 1.43 per cent (2024: 0.74 per cent)
of total called-up share capital. No shares held in trust in Cranswick plc were cancelled during the periods presented.
Number of shares
Nominal value of share
Total reserve
2025
Number
2024
Number
2025
£
2024
£
2025
£’m
2024
£’m
At beginning of year
400,250
–
40,025
–
15.6
–
Shares acquired by Employee Benefit Trust
524,250
400,250
52,425
40,025
25.3
15.6
Transferred to beneficiaries of the share award schemes
(148,935)
–
(14,894)
–
(5.5)
–
At end of year
775,565
400,250
77,556
40,025
35.4
15.6
25. Share-based Payments
The Group operates three share option schemes, a revenue approved scheme (‘SAYE’), a Long-Term Incentive Plan (‘LTIP’) and a Buy As You Earn
(‘BAYE’) share incentive plan, all of which are equity-settled. The total expense charged to the income statement during the year in relation to share-
based payments was £8.4 million (2024: £8.8 million).
Long-Term Incentive Plan (‘LTIP’)
During the course of the year, 248,272 options at nil cost were granted to Directors and Senior Executives, the share price at that time was £47.50.
Details of the performance criteria relating to the LTIP scheme can be found in the Remuneration Committee Report on page 116. The maximum term
of LTIP options is 10 years.
2025
Number
2025
WAEP (£)
2024
Number
2024
WAEP (£)
Outstanding at beginning of year
758,538
–
695,658
–
Granted during the year (i)
248,272
–
286,295
–
Lapsed during the year
(35,052)
–
(84,867)
–
Exercised during the year (ii)
(153,104)
–
(138,548)
–
Outstanding at end of year (iii)
818,654
–
758,538
–
Exercisable at end of year
18,494
–
11,749
–
i) The weighted average fair value of options granted during the year was £41.34 (2024: £21.00). The share options granted during the year were at £nil per share. The share price at the date of grant was
£47.50 (2024: £32.46).
ii) The weighted average share price at the date of exercise for the options exercised was £46.11 (2024: £32.96).
iii) For the share options outstanding as at 29 March 2025, the weighted average remaining contractual life is 8.20 years (2024: 8.36 years).
The exercise price for all options outstanding at the end of the year was £nil.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
188
Cranswick plc Annual Report & Accounts 2025
189
25. 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:
2025
Number
2025
WAEP (£)
2024
Number
2024
WAEP (£)
Outstanding at beginning of year
893,923
28.08
898,138
26.58
Granted during the year (i)
311,367
39.78
288,842
31.27
Lapsed during the year
(86,409)
29.93
(127,815)
26.79
Exercised during the year (ii)
(167,450)
27.82
(165,242)
26.50
Outstanding at end of year (iii)
951,431
31.78
893,923
28.08
Exercisable at end of year
92,957
28.67
75,991
27.27
i) The share options granted during the year were at £39.78 (2024: £31.27), representing a 20 per cent discount on the price at the relevant date. The share price at the date of grant was £48.60
(2024: £38.08).
ii) The weighted average share price at the date of exercise for the options exercised was £44.31 (2024: £37.21).
iii) For the share options outstanding as at 29 March 2025, the weighted average remaining contractual life is 1.86 years (2024: 2.51 years).
The weighted average fair value of options granted during the year was £13.47 (2024: £10.03). The range of exercise prices for options outstanding
at the end of the year was £24.98–£39.78 (2024: £24.98–£31.27).
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, ROCE, 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 29 March 2025 and
30 March 2024:
Measures
2025 LTIP
2025 SAYE
2024 LTIP
2024 SAYE
Dividend yield
0.00%
1.90%
2.35%
2.14%
Expected share price volatility
19.02%–20.90%
20.20%–23.78%
22.65%–22.93%
22.25%–25.35%
Risk-free interest rate
3.64%–3.97%
4.21%–4.35%
4.67%–5.05%
3.32%–3.53%
Expected life of option
3 years
3.44–5.44 years
3 years
3.42–5.42 years
Exercise prices
£nil
£39.78
£nil
£31.27
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.
Buy As You Earn (‘BAYE’) share incentive plan
For every eight ‘Partnership Shares’ purchased by an employee through the Buy As You Earn (‘BAYE’) share incentive plan, the Group undertakes to
award employees with one ‘Matching Share’; these Matching Shares are held in trust for a mandatory period of five years on the employee’s behalf,
during which period the employee is entitled to any dividends paid on such shares. If an employee leaves within this five-year period for other than ‘good
leaver’ circumstances, all of the Matching Shares are forfeited. Similarly, if the employees sell their Partnership Shares within five years, their Matching
Shares are forfeited. The number of shares awarded relating to Matching Shares in 2025 was 809 (2024: nil), with a weighted average fair value of
£48.91, based on market prices at the date of award.
26. 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
26. Pension Schemes (continued)
a) Change in benefit obligation
2025
£’m
2024
£’m
Benefit obligation at the beginning of the year
20.8
22.1
Interest cost
1.0
1.0
Remeasurement (gains)/losses:
Actuarial gains arising from changes in financial assumptions
(3.1)
(1.8)
Other experience items
–
0.2
Benefits paid from plan
(0.9)
(0.7)
Benefit obligation at the end of the year
17.8
20.8
b) Change in plan assets
2025
£’m
2024
£’m
Fair value of plan assets at the beginning of the year
21.0
22.3
Interest income
1.0
1.0
Return on plan assets
(3.3)
(1.6)
Employer contributions
–
–
Benefits paid from the plan
(0.9)
(0.7)
Fair value of plan assets at end of year
17.8
21.0
c )Amounts recognised in the balance sheet
2025
£’m
2024
£’m
Present value of funded obligations
(17.8)
(20.8)
Fair value of plan assets
17.8
21.0
Net asset recorded in the balance sheet
–
0.2
d) Components of pension cost
2025
£’m
2024
£’m
Amounts recognised in the income statement:
Interest cost
1.0
1.0
Expected return on plan assets
(1.0)
(1.0)
Total pension cost recognised in the income statement
–
–
Actual return on assets
Actual return on plan assets
(2.3)
(0.6)
Amounts recognised in the Group statement of comprehensive income
Actuarial (losses)/gains immediately recognised
(0.2)
–
The weighted average actuarial assumptions used in the valuation of the scheme were as follows:
e) Principal actuarial assumptions
2025
2024
Discount rate
5.75%
4.85%
Rate of price inflation
3.05%
3.15%
Revaluation of deferred pensions:
Benefits accrued prior to 1 January 1998
5.00%
5.00%
Benefits accrued after 1 January 1998
3.05%
3.15%
Rate of compensation increase:
Benefits accrued prior to 1 January 1997
3.00%
3.00%
Benefits accrued after 1 January 1997
3.05%
3.15%
Future expected lifetime of pensioner at age 65:
2025
2024
Current pensioners:
Male
20.9
20.9
Female
23.8
23.8
Future pensioners:
Male
22.2
22.2
Female
25.2
25.2
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
190
Cranswick plc Annual Report & Accounts 2025
191
26. Pension Schemes (continued)
The mortality rates used have been taken from Base tables S3PA (2024: 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. (2024: 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).
At 29 March 2025, the average duration of the scheme liabilities was 16 years (2024: 17 years). For deferred pensions the average duration was 18
years (2024: 20 years) and for pensions in payment the average duration was 9 years (2024: 10 years).
A 0.1 per cent increase/decrease in the discount rate would give rise to a £282,000 decrease/£287,000 increase (2024: £351,000 decrease/£357,000
increase) in the scheme liabilities at 29 March 2025.
A 0.1 per cent increase/decrease in the inflation assumption would give rise to a £124,000 increase/£123,000 decrease (2024: £154,000
increase/£153,000 decrease) in the scheme liabilities at 29 March 2025.
A one year increase/decrease in the life expectancy assumption would give rise to a £557,000 increase/£511,000 decrease (2024: £713,000
increase/£650,000 decrease) in the scheme liabilities at 29 March 2025.
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.
The split of the fund’s liability by category of membership is as follows:
2025
£’m
2024
£’m
Deferred pensioners
10.7
12.3
Pensions in payment
7.1
8.5
17.8
20.8
f) Plan assets
2025
Fair value of
plan assets
£’m
2024
Fair value of
plan assets
£’m
Annuities
1.4
1.8
Cash
0.3
0.5
Buy-in policy
16.1
18.7
Total
17.8
21.0
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 58 pensioner members (2024: 75) 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 through a refund. Information on management’s
judgement in relation to this is provided in Note 2.
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.
On 16 June 2023, the High Court handed down a judgment in the Virgin Media case. The case concerns the validity of historic rule amendments made
to pension schemes that were contracted-out of the state pension between 6 April 1997 and 5 April 2016 under the Inland Revenue’s ‘Reference
Scheme Test’. Consequently, the Company, the Trustee and its advisors are undertaking a review of all rule amendments made during the
relevant period.
At 29 March 2025, the Company has no reason to believe there will be any additional liabilities arising from this case based on the investigations
undertaken by the Trustee and its advisors thus far. The Company and Trustee also continue to monitor further ongoing legal and regulatory
developments relating to the judgement.
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 £2.0 million (2024: £1.8 million). Contributions during the year totalled £11.1 million
(2024: £9.0 million).
NOTES TO THE ACCOUNTS
CONTINUED
27. Additional Cash Flow Information
Analysis of changes in net debt:
At 30 March
2024
£’m
Acquired on
acquisition
£’m
Cashflow
£’m
Other non-cash
changes
£’m
At 29 March
2025
£’m
Cash and cash equivalents
27.0
(5.1)
(16.0)
–
5.9
Revolving credit facility
(27.1)
–
(18.0)
(0.5)
(45.6)
Lease liabilities
(99.3)
(4.4)
22.2
(51.2)
(132.7)
Net debt
(99.4)
(9.5)
(11.8)
(51.7)
(172.4)
Net debt is defined as cash and cash equivalents and loans receivable less interest-bearing liabilities net of unamortised issue costs.
At 25 March
2023
£’m
Acquired on
acquisition
£’m
Cashflow
£’m
Other non-cash
changes
£’m
At 30 March
2024
£’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)
28. Contingent Liabilities
The Company, together with certain 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 £46.0 million as at 29 March 2025 (2024: £28.0 million).
29. Commitments
(a) The Directors have contracted for future capital expenditure for property, plant and equipment totalling £59.1 million (2024: £37.6 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:
2025
£’m
2024
£’m
Not later than one year
0.1
0.2
After one year but not more than five years
–
–
After five years
–
–
0.1
0.2
30. 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:
2025
£’m
2024
£’m
Short-term employee benefits
9.7
8.2
Share-based payments
3.2
3.6
12.9
11.8
During the year, the Group made purchases of £1.9 million (2024: £2.2 million) from its joint venture and made sales of £0.9 million (2024: £1.1 million)
to its joint venture. No balances were owed as at the year end due to the joint venture being dissolved in the year (see Note 14). As at 30 March 2024,
the Group owed £0.2 million to, and was owed £0.1 million by, its joint venture.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
192
Cranswick plc Annual Report & Accounts 2025
193
31. 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 impact of current year
acquisitions and the contribution from prior year acquisitions prior to the anniversary of their purchase. 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
2025
£’m
2024
£’m
Change
Revenue
2,723.3
2,599.3
+4.8%
Elsham Linc Limited
(0.6)
–
Froch Foods Limited
(5.5)
–
J.S.R. Genetics Limited and JSR Pyramid Limited
(3.8)
–
Piggy Green Limited and Fornham Pigs Limited
(0.2)
–
Like-for-like revenue
2,713.2
2,599.3
+4.4%
On a 52 week basis, the prior year revenue was £2,549.6 million.
Adjusted gross profit
2025
£’m
2024
£’m
Change
Gross profit
408.8
376.9
+8.5%
Net IAS41 valuation movement
11.1
(2.2)
Adjusted gross profit
419.9
374.7
+12.1%
On a 52 week basis, the prior year adjusted gross profit was £367.5 million.
Adjusted Group operating profit and adjusted EBITDA
2025
£’m
2024
£’m
Change
Group operating profit
190.6
166.9
+14.2%
Net IAS41 valuation movement
11.1
(2.2)
Amortisation of intangible assets
3.6
5.0
Impairment of intangible assets
1.6
15.4
Adjusted Group operating profit
206.9
185.1
+11.8%
Depreciation of property, plant and equipment
68.1
65.5
Depreciation of right-of-use assets
18.2
16.2
Adjusted EBITDA
293.2
266.8
+9.9%
On a 52 week basis, the prior year adjusted group operating profit was £181.5 million.
Adjusted profit before tax
2025
£’m
2024
£’m
Change
Profit before tax
181.6
158.4
+14.6%
Net IAS41 valuation movement
11.1
(2.2)
Amortisation of intangible assets
3.6
5.0
Impairment of intangible assets
1.6
15.4
Adjusted profit before tax
197.9
176.6
+12.1%
On a 52 week basis, the prior year adjusted profit before tax was £173.2 million.
NOTES TO THE ACCOUNTS
CONTINUED
31. Alternative Performance Measures (continued)
Adjusted earnings per share
2025
£’m
2025
Basic
pence
2025
Diluted
pence
2024
£’m
2024
Basic
pence
2024
Diluted
pence
On profit for the year
134.3
250.5
246.1
113.1
210.4
209.7
Amortisation of intangible assets
3.6
6.8
6.7
5.0
9.4
9.3
Tax on amortisation of intangible assets
(0.9)
(1.7)
(1.7)
(1.3)
(2.3)
(2.3)
Net IAS 41 valuation movement
11.1
20.8
20.4
(2.2)
(4.2)
(4.1)
Tax on net IAS 41 valuation movement
(2.8)
(5.2)
(5.1)
0.6
1.0
1.0
Impairment of goodwill
–
–
–
15.1
28.0
27.9
Impairment of intangible assets
1.6
3.0
3.0
0.3
0.6
0.6
Tax on impairment of intangible assets
(0.4)
(0.8)
(0.8)
(0.1)
(0.1)
(0.1)
On adjusted profit for the year
146.5
273.4
268.6
130.5
242.8
242.0
On a 52 week basis, the prior year adjusted earnings per share was 236.5 pence.
Free cash flow
2025
£’m
2024
£’m
Change
Net cash from operating activities
216.3
228.4
−5.3%
Net interest paid
(2.7)
(5.0)
Free cash flow
213.6
223.4
-4.4%
Free cash conversion
2025
£’m
2024
£’m
Change
Free cash flow
213.6
223.4
-4.4%
Non-growth capital expenditure
(31.4)
(22.1)
Net IAS 41 valuation movement
(11.1)
2.2
Lease capital paid
(16.2)
(14.2)
Lease interest paid
(6.0)
(3.6)
148.9
185.7
Adjusted profit for the year
146.5
130.5
Free cash conversion
101.6%
142.3%
-4,066 bps
Return on capital employed
2025
£’m
2024
£’m
Change
Average opening and closing net assets
949.7
877.2
Average opening and closing net debt
135.9
100.4
Average opening and closing pension surplus
(0.1)
(0.2)
Average opening and closing deferred tax
30.2
24.6
1,115.7
1,002.0
Adjusted Group operating profit
206.9
185.1
Return on capital employed
18.5%
18.5%
+7 bps
32. Post balance sheet events
On 16 May 2025, the Group acquired 100 per cent of the issued share capital of James T Blakeman & Co (Holdings) Limited (‘Blakemans’), a leading
manufacturer and supplier of sausage products to the food service sector, for initial consideration of £32 million on a debt-and-cash-free basis.
Due to the timing of completion of this acquisition it is impractical to include further disclosure in line with IFRS 3, including in relation to initial net
consideration, deferred contingent consideration and the fair value of assets and liabilities acquired.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
194
Cranswick plc Annual Report & Accounts 2025
195
COMPANY BALANCE SHEET
AS AT 29 MARCH 2025
Notes
2025
£’m
2024
£’m
Non-current assets
Property, plant and equipment
7
0.3
0.3
Investment in subsidiary undertakings
9
83.8
155.5
Right-of-use assets
8
0.4
0.4
Trade and other receivables
10
315.5
162.7
Deferred tax assets
6
4.3
1.1
Total non-current assets
404.3
320.0
Current assets
Trade and other receivables
10
13.4
9.7
Cash and short-term deposits
1.0
1.2
Total current assets
14.4
10.9
Total assets
418.7
330.9
Current liabilities
Trade and other payables
11
(90.7)
(62.3)
Lease liabilities
8
(0.1)
(0.1)
Provisions
13
(0.8)
–
Income tax payable
–
(12.7)
Total current liabilities
(91.6)
(75.1)
Non-current liabilities
Financial liabilities
12
(45.6)
(27.1)
Lease liabilities
8
(0.4)
(0.3)
Provisions
13
–
(0.8)
Total non-current liabilities
(46.0)
(28.2)
Total liabilities
(137.6)
(103.3)
Net assets
281.1
227.6
Equity
Called-up share capital
15
5.4
5.4
Share premium account
133.0
128.3
Shares held in trust
16
(35.4)
(15.6)
General reserve
–
–
Merger reserve
1.8
1.8
Share-based payments
17
14.2
11.8
Retained earnings
162.1
95.9
Total equity
281.1
227.6
The Company’s profit for the 52 weeks ended 29 March 2025 was £112.9 million (2024: £49.7 million).
The financial statements on pages 196 to 205 were approved by the Board of Directors on 20 May 2025 and signed on its behalf by
Tim J Smith CBE
Mark Bottomley
Chairman
Chief Financial Officer
20 May 2025
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE 52 WEEKS ENDED 29 MARCH 2025
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 25 March 2023
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
Profit for the year, being total
comprehensive income
–
–
–
–
–
–
112.9
112.9
Share-based payments
–
–
–
–
8.4
–
–
8.4
Shares acquired by Employee Benefit Trust
–
–
–
–
–
(25.3)
–
(25.3)
Transfer to retained earnings on grant of
shares to beneficiaries of the Employee
Benefit Trust
–
–
–
–
–
5.5
(5.5)
–
Exercise, lapse or forfeit of share-based
payments
–
–
–
–
(6.0)
–
6.0
–
Share options exercised
–
4.7
–
–
–
–
–
4.7
Dividends
–
–
–
–
–
–
(49.5)
(49.5)
Deferred tax related to changes in equity
–
–
–
–
–
–
1.8
1.8
Current tax related to changes in equity
–
–
–
–
–
–
0.5
0.5
At 29 March 2025
5.4
133.0
–
1.8
14.2
(35.4)
162.1
281.1
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 prior 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 the capital contributions to cost of investments for share-based payments to employees of subsidiary
companies. 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 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.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
196
Cranswick plc Annual Report & Accounts 2025
197
NOTES TO THE COMPANY FINANCIAL STATEMENTS
1. Authorisation of Financial Statements
The Company financial statements of Cranswick plc (the ‘Company’) for the 52 weeks ended 29 March 2025 were authorised for issue by the Board
of Directors on 20 May 2025 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 were prepared under FRS 101 and in accordance with the Companies Act 2006 as applicable to companies
using FRS 101 under the historic cost convention modified by revaluation of financial assets and liabilities held at their fair value through profit and loss.
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 material 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
52 week period ended 29 March 2025. Comparatives are for the 53 week period ended 30 March 2024. The Balance Sheets for 2025 and 2024 have
been prepared as at 29 March 2025 and 30 March 2024 respectively.
A summary of the material 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.
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 expected credit losses provision. However, these are not considered to have a significant risk of material adjustment.
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.
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 when events or changes in circumstances indicate that the carrying
value may not be recoverable.
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
198
Cranswick plc Annual Report & Accounts 2025
199
2. Accounting Policies (continued)
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.
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;
• lease term extension options that the Company is reasonably certain to exercise; and
• payments of penalties for terminating the lease, if that lease term and payments includes options that are reasonably 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.
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 Save As You Earn (‘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.
NOTES TO THE COMPANY FINANCIAL STATEMENTS
CONTINUED
3. Employees
2025
£’m
2024
£’m
Staff costs:
Wages and salaries
21.1
16.6
Social security costs
3.1
2.3
Other pension costs
0.4
0.3
24.6
19.2
Included within wages and salaries is a total expense for share-based payments of £4.1 million (2024: £4.4 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:
2025
Number
2024
Number
Administration
91
83
Remuneration paid to the Directors is disclosed in the Annual Report on Directors’ Remuneration on pages 123 to 133 and in Note 5 of 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 £112.9 million (2024: £49.7m). 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
2025
£’m
2024
£’m
Declared and paid during the year:
Final dividend for 2024 – 67.3p per share (2023: 58.8p)
36.1
31.7
Interim dividend for 2025 – 25.0p per share (2024: 22.7p)
13.4
12.2
Dividends paid
49.5
43.9
Proposed for approval of Shareholders at the Annual General Meeting on 28 July 2025:
Final dividend for 2025 – 76.0p per share (2024: 67.3p)
41.2
36.3
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:
2025
£’m
2024
£’m
Recognised in company statement of changes in equity
Deferred tax credit on share based payments
(1.8)
(0.3)
Corporation tax credit on share options exercised
(0.5)
(0.1)
Total tax recognised directly in equity
(2.3)
(0.4)
b) Deferred tax
The deferred tax included in the Company balance sheet is as follows:
2025
£’m
2024
£’m
Deferred tax asset in the balance sheet
Other temporary differences
0.2
–
Share-based payments
4.1
1.1
Deferred tax asset
4.3
1.1
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
Cranswick plc Annual Report & Accounts 2025
200
Cranswick plc Annual Report & Accounts 2025
201
7. Property, Plant and Equipment
Freehold land
and buildings
£’m
Plant,
equipment and
vehicles
£’m
Total
£’m
Cost
At 30 March 2024 and at 29 March 2025
0.2
0.4
0.6
Depreciation
At 30 March 2024
–
0.3
0.3
Charge for the year
–
–
–
At 29 March 2025
–
0.3
0.3
Net book amounts
At 30 March 2024
0.2
0.1
0.3
At 29 March 2025
0.2
0.1
0.3
Included in freehold land and buildings is land with a cost of £0.2 million (2024: £0.2 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 30 March 2024
0.7
Additions
0.2
At 29 March 2025
0.9
Depreciation
At 30 March 2024
0.3
Charge for the year
0.2
At 29 March 2025
0.5
Net book amounts
At 30 March 2024
0.4
At 29 March 2025
0.4
2025
£’m
2024
£’m
Lease liabilities:
Current
0.1
0.1
Non-current
0.4
0.3
0.5
0.4
NOTES TO THE COMPANY FINANCIAL STATEMENTS
CONTINUED
9. Investments
Subsidiary
undertakings
£’m
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
Capital contribution relating to share options
4.3
Return of capital by subsidiaries
(76.0)
At 29 March 2025
83.8
The Company has undertaken a corporate simplification exercise in the current and prior years. This gave rise to the return of the capital by subsidiaries
to the Company and dividend income of £24.0 million (2024: £7.3 million).
The subsidiary undertakings as at 29 March 2025 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*, registered number 01908346
• Continental Fine Foods Limited*, registered number 02096132
• Cranswick Country Foods (Norfolk) Limited*, registered number 00835854 (100 per cent owned by Cranswick Country Foods plc, previously 92
per cent owned by Friars 587 Limited and 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*, 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 Limited*, registered number 13667244 (100 per cent owned by Cranswick Country Foods plc, previously 100 per cent owned by Froch
Foods Holdings Limited), acquired on 19 January 2024
• Froch Foods Holdings Limited*, registered number 14748703 (100 per cent owned by Cranswick Country Foods plc), acquired on 19 January 2024
• Piggy Green Limited*, registered number 05773607 (100 per cent owned by Cranswick Country Foods plc), acquired on 28 June 2024
• Fornham Pigs Limited*, registered number 07526203 (100 per cent owned by Cranswick Country Foods plc), acquired on 28 June 2024
• J.S.R. Genetics Limited*, registered number 03902341 (100 per cent owned by Cranswick Country Foods plc), acquired on 20 January 2025
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
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202
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203
9. Investments (continued)
• JSR Pyramid Limited*, registered number 11905245 (100 per cent owned by J.S.R. Genetics Limited), acquired on 20 January 2025
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 29 March 2025, Cranswick plc has provided a guarantee in respect of the outstanding liabilities of the subsidiary undertakings 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 during the year was:
• Mere Pigs (50 per cent held by Elsham Linc Limited), acquired 4 August 2023, dissolved 31 October 2024
The financial asset investment as at 29 March 2025 was:
• BIA Analytical Ltd, registered number NI857772 (2.90 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
2025
£’m
2024
£’m
Financial assets:
Trade receivables
–
–
Amounts owed by subsidiary undertakings
5.4
6.3
Other receivables
5.7
1.3
11.1
7.6
Non-financial assets:
Prepayments
2.3
2.1
13.4
9.7
Non-current assets
Amounts owed by subsidiary undertakings
315.5
162.7
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
2025
£’m
2024
£’m
Current
Trade payables
2.1
2.1
Amounts owed to subsidiary undertakings
61.3
39.4
Tax and social security
7.4
3.1
Other creditors
14.4
12.7
Other accruals
5.5
5.0
90.7
62.3
Amounts owed to subsidiary undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
12. Financial Liabilities
2025
£’m
2024
£’m
Non-current:
Amounts outstanding under revolving credit facility
46.0
28.0
Unamortised issue costs
(0.4)
(0.9)
45.6
27.1
All financial liabilities are carried at amortised cost.
Banking facility
Details in respect of Company banking facility is presented in Note 20 of the Group Financial Statements.
13. Provisions
Lease provisions
£’m
At 31 March 2024
0.8
Created
–
Utilised
–
Movement on discount
–
At 29 March 2025
0.8
Analysed as:
2025
£’m
2024
£’m
Current liabilities
0.8
–
Non-current liabilities
–
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 year.
14. Contingent Liabilities
The Company, together with certain 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 £46.0 million as at 29 March 2025 (2024: £28.0 million).
15. Called-up Share Capital
Details in respect of called-up share capital are presented in Note 23 of the Group Financial Statements.
16. Shares held in trust
Details in respect of shares held in trust are presented in Note 24 of the Group Financial Statements.
17. Share-based payments
The Group operates three share option schemes, a revenue approved scheme (‘SAYE’), a Long-Term Incentive Plan (‘LTIP’) and a Buy As You Earn
(‘BAYE’) share incentive plan, all of which are equity-settled. All disclosures relating to the plans are given in Note 25 of the Group Financial Statements.
NOTES TO THE COMPANY FINANCIAL STATEMENTS
CONTINUED
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
Financial statements
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204
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205
STAKEHOLDER INFORMATION
FIVE YEAR STATEMENT
FINANCIAL CALENDAR
2025
£’m
2024
£’m
2023
£’m
2022
£’m
2021
£’m
Revenue
2,723.3
2,599.3
2,323.0
2,008.5
1,898.4
Profit before tax
181.6
158.4
139.5
129.9
114.8
Adjusted profit before tax*
197.9
176.6
140.1
136.9
129.7
Earnings per share
250.5p
210.4p
208.3p
195.7p
176.4p
Adjusted earnings per share*
273.4p
242.8p
210.0p
205.4p
199.3p
Dividends per share
101.0p
90.0p
79.4p
75.6p
70.0p
Capital expenditure
137.6
91.4
85.1
93.7
71.9
Net (debt)/funds
(172.4)
(99.4)
(101.4)
(106.0)
(92.4)
Net assets
987.9
911.5
842.9
768.9
686.1
*
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 27 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 2025
207
SHAREHOLDER INFORMATION
SHAREHOLDER INFORMATION
Cranswick plc Annual Report & Accounts 2025
206
SHAREHOLDER INFORMATION
SHAREHOLDER
INFORMATION
207 Stakeholder Information Five Year Statement
207 Financial Calendar
208 Shareholder Analysis
208 Share Price Movement
209 Advisers
210 Notes
SHAREHOLDER ANALYSIS
AT 6 MAY 2025
SHARE PRICE MOVEMENT
Number of
holdings
Number of
shares
Classification
Private Shareholders
1,398
2,440,783
Corporate bodies and nominees
631
51,795,610
2,029
54,236,393
Size of holding (shares)
1–1,000
1,286
380,913
1,001–5,000
313
723,548
5,001–10,000
81
574,416
10,001–50,000
181
4,342,915
50,001–100,000
59
4,299,866
Above 100,000
109
43,914,735
2,029
54,236,393
Share price
Share price at 30 March 2024
4,096p
Share price at 29 March 2025
4,950p
Low in the year
4,035p
High in the year
5,260p
Cranswick’s share price movement over the six year period to May 2025 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 3 May 2019 (2,826p),
is shown below:
Share Price Performance (p)
2025
2023
2024
2022
2020
2021
2019
7 000
5000
6000
4000
3000
2000
1000
0
Share Price (p) (rebased to Cranswick)
Key
Cranswick
FTSE All Share
FTSE 350 Food Producers
ADVISERS
Secretary
Steven Glover LLB
Company number
1074383
Registered office
Crane Court
Hesslewood Country Office Park
Ferriby Road
Hessle
East Yorkshire
HU13 0PA
Stockbrokers
Investec Investment Banking – London
Shore Capital Stockbrokers – Liverpool
Registrars
MUFG Corporate Markets
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@cm.mpms.mufg.com
website: https://www.mpms.mufg.com
Independent auditors
PricewaterhouseCoopers LLP – Leeds
Tax advisers
KPMG – Leeds
EY – Leeds
Solicitors
Wilkin Chapman Rollits LLP – Hull
Eversheds Sutherland (International) LLP – Leeds
Bankers
Lloyds Banking Group plc
The Royal Bank of Scotland plc
HSBC UK plc
Coöperatieve Rabobank U.A.
Bank of China Limited
Merchant bankers
N M Rothschild & Sons – Leeds
Cranswick plc
Crane Court
Hesslewood Country Office Park
Ferriby Road
Hessle
East Yorkshire
HU13 0PA
01482 275 000
www.cranswick.plc.uk
Cranswick plc Annual Report & Accounts 2025
208
Cranswick plc Annual Report & Accounts 2025
209
SHAREHOLDER INFORMATION
SHAREHOLDER INFORMATION
SHAREHOLDER INFORMATION
NOTES
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Cranswick
Cranswick plc Annual Report & Accounts 2025
210
SHAREHOLDER INFORMATION
Cranswick plc
Crane Court, Hesslewood Country Office Park,
Ferriby Road, Hessle, East Yorkshire HU13 0PA
01482 275 000
www.cranswick.plc.uk