Cranswick

Website: Cranswick
Index: FTSE 250
EPIC: CWK
Supersector: Food, Beverage and Tobacco
Sector: Food Producers
Subsector: Food Products
Market Cap: £2.66B
Payout Frequency: Semi-Annual

Cranswick Dividend Analysis and Summary

Key Dividend Details

Dividend declared: Interim dividend of 27.0p per share (up 8.0% vs 25.0p)
Ex-dividend date: 11/12/2025 (derived from record date)
Record date: 12/12/2025
Payment date: 23/01/2026
Prior year total dividends: 101.0p (25.0p interim + 76.0p final)

Coverage and Financial Support

Earnings cover (H1 FY26): Adjusted EPS of 144.4p covers the 27.0p interim by ~5.3x (very strong).
Trailing cover (FY25): Adjusted EPS 273.4p vs total DPS 101.0p ˜ 2.7x.
Cash generation: Free cash conversion 89.9%; adjusted operating margin up to 7.7% (+21bps); ROCE 18.2%.
Balance sheet/liquidity: Net debt (ex-IFRS 16) £127.3m (up from £0.9m YoY) reflecting record capex, acquisition and working capital; new £360m RCF to July 2029 adds headroom.

Dividend Sustainability and Growth Outlook

Sustainability: Strong interim cover, high free cash conversion and margin progress support the uplift. Despite higher net debt and finance costs, ample facility headroom and disciplined cost control underpin dividend capacity.
Growth trajectory: The 8% interim increase aligns with ongoing earnings growth (H1 adjusted PBT +9.7%, revenue +10.4%). With capacity expansions and recent acquisitions contributing, a progressive dividend remains credible.
Capital allocation balance: Management is prioritising growth capex (£89m in H1) and targeted M&A while maintaining dividend growth. Near-term dividend acceleration may be moderated by sustained investment needs and higher interest costs, but coverage remains comfortable.

Structural or Policy Factors to Note

M&A: Acquisition of Blakemans (16/05/2025) performing ahead of expectations; integration progressing.
Asset expansion: Ongoing large projects (e.g., £100m Hull pork primary processing expansion; Eye capacity uplift; poultry added-value expansion; Worsley dips facility) support future volume and efficiency gains.
Supply chain self-sufficiency: Purchase of Fridaythorpe feed mill and continued investment in farming and genetics (JSR) improve control over inputs and resilience.
Refinancing: New £360m unsecured RCF to July 2029 (extendable) enhances liquidity and dividend visibility.
No share consolidation or policy change disclosed.

Key Risks and Flags for Dividend Stability

Higher leverage and finance costs: Net debt increased materially; bank interest costs rose to £3.6m (from £1.5m). While headroom is strong, prolonged elevated rates could temper dividend growth if investment stays high.
Biosecurity/animal welfare: Elevated risks from Avian Influenza and potential African Swine Fever; new principal risk on animal welfare and costs to implement veterinarian recommendations could pressure margins if issues arise.
Customer concentration: Three customers account for ~50% of revenue (24%, 15%, 11%); any contract changes could affect cash flows.
Operational execution: Rapid onboarding in poultry caused some disruption; continued smooth ramp-up of major capex projects is important for sustaining cash generation.
Working capital swings/seasonality: Significant Christmas stock build and new strategic partnerships increased working capital in H1; timing effects can influence short-term cash available for distributions.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
12/12/2024	24/01/2025	Interim	25.00p	GBX
17/07/2025	29/08/2025	Final	76.00p	GBX

Total (Annual Dividends Per Share): 101.00p

Dividend Yield = Annual Dividends Per Share (101.00p) ÷ Share Price (4980p) = 2.03%

Ex Dividend Date	Payment Date	Type	Amount	Currency
11/12/2025	23/01/2026	Interim	27.0000p	GBX
17/07/2025	29/08/2025	Final	76.00p	GBX
12/12/2024	24/01/2025	Interim	25.00p	GBX
18/07/2024	30/08/2024	Final	67.30p	GBX
14/12/2023	26/01/2024	Interim	22.70p	GBX
20/07/2023	01/09/2023	Final	58.80p	GBX
15/12/2022	27/01/2023	Interim	20.60p	GBX
21/07/2022	02/09/2022	Final	55.60p	GBX
16/12/2021	28/01/2022	Interim	20.0p	GBX
22/07/2021	03/09/2021	Final	51.30p	GBX
17/12/2020	29/01/2021	Interim	18.70p	GBX
23/07/2020	04/09/2020	Final	43.70p	GBX
12/12/2019	24/01/2020	Interim	16.70p	GBX
18/07/2019	06/09/2019	Final	40.0p	GBX
06/12/2018	25/01/2019	Interim	15.90p	GBX
19/07/2018	07/09/2018	Final	38.60p	GBX
07/12/2017	26/01/2018	Interim	15.10p	GBX
29/06/2017	01/09/2017	Final	31.00p	GBX
08/12/2016	27/01/2017	Interim	13.10p	GBX
30/06/2016	02/09/2016	Final	25.90p	GBX
10/12/2015	29/01/2016	Interim	11.60p	GBX
02/07/2015	04/09/2015	Final	23.40p	GBX
04/12/2014	23/01/2015	Interim	10.60p	GBX
02/07/2014	05/09/2014	Final	22.00p	GBX
04/12/2013	24/01/2014	Interim	10.00p	GBX
03/07/2013	06/09/2013	Final	20.60p	GBX
05/12/2012	25/01/2013	Interim	9.40p	GBX

Year	Interim	Final	Currency	Total	Change
2024	25.000	67.300	GBX	92.300	13.250
2023	22.700	58.800	GBX	81.500	6.950
2022	20.600	55.600	GBX	76.200	6.870
2021	20.000	51.300	GBX	71.300	14.260
2020	18.700	43.700	GBX	62.400	10.050
2019	16.700	40.000	GBX	56.700	4.030
2018	15.900	38.600	GBX	54.500	18.220
2017	15.100	31.000	GBX	46.100	18.200
2016	13.100	25.900	GBX	39.000	11.420
2015	11.600	23.400	GBX	35.000	7.360
2014	10.600	22.000	GBX	32.600	6.530
2013	10.000	20.600	GBX	30.600	225.530
2012	9.400		GBX	9.400

Number of Shares:

Payment	Paid	Amount
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