MIDAS SHARE TIPS UPDATE: Our banger tip Cranswick is smashing it

Pork is the most popular meat in the world and also a favorite of UK consumers.

But our pig herds have shrunk by 12 per cent in the last 18 months, and more than half of the pork we consume comes from abroad.

Yorkshire based food group Cranwick prefers to supply from home and has taken concrete measures to make that happen. Ten years ago, the company had no cattle.

Now CEO Adam Couch has 30,000 pigs and intends to expand his herd even further. Cranswick also has a flock of ten million chickens and is strengthening its feed business to ensure standards are maintained across all poultry and pig herds.

Quality is paramount for Cranswick, which supplies supermarkets with premium products, from joints and air-dried bacon to marinated thighs, kebabs and curries. The company expects to deliver 60 million pigs in blankets this Christmas alone, and there is also a thriving deli business selling hummus, olives, dips and other delicacies under brands such as Cypressa and Ramona.

Staying on top of trends, focusing on quality and investing in the business are key factors to Cranswick’s success. The company has invested £600m over the last seven years in building new factories and automating processes. Pigs in blankets are next, so staff will no longer have to spend hours preparing them by hand.

Couch believes strongly in taking care of its 14,000 employees. Couch, the son of a Huddersfield farmer, joined Cranswick straight from university in 1991 and took up the top job in 2012.

Years of experience – on the farm and across the Cranswick group – mean Couch is ideally placed to drive the business forward. He has also built long-term relationships with clients, from major supermarkets to catering companies and pub chains.

The group’s figures speak for themselves. Half-year results to September 30, 2023, released last week, showed double-digit growth in sales, profits and dividends.

Brokers expect more of the same for the full year, with profits forecast to rise 15 per cent to £161 million and an 8.5 per cent rise in the dividend to 82.4p, putting Cranswick on track of 34 years of dividend growth.

Midas Verdict: Midas first recommended Cranswick in 2007, when shares cost £8.45. They have more than quadrupled to £39.00 and should continue to gain ground.

Cost of living pressures persist, but Couch and his team feel the environment is improving as economic conditions slowly improve. Existing shareholders should stick with this solid British business, while new investors might also find the stock rewarding.

Traded in: Main market Heart: CWK Contact: cranswick.plc.uk or 01482 275000