In a note written following a visit to the firm's fresh pork plant in Yorkshire, Shore Capital’s head of research Clive Black said Cranswick was in an enviable financial position compared with many of its publicly listed peers, with well-invested facilities and only a modest pension deficit (£5.5m as of September 2010).
“Cranswick’s strategic prospects have, in our view, rarely been better. This assertion reflects the investment made in the business, the company’s product mix and the market attractive credentials of its activities.”
Its healthy balance sheet meant bosses could “comfortably explore further organic and possibly acquisition-orientated opportunities” to support long-term growth, added Black, while the recent move into pastry products represented “a new and potentially exciting opportunity”.
There was also huge scope for Cranswick to increase its market share in air-dried bacon products, he argued: "Capacity has been increased through investment and we see Cranswick gaining further share in higher category lines such as air dried products with scope to increasingly move further into the larger ‘premium’ as opposed to ‘superpremium’ elements of the market."