Crawshaw surges after sales 'significantly improve'

Shares of meat retailer Crawshaw soared after it said like-for-like sales have significantly improved since last autumn, following actions to stimulate growth, and are currently trading ahead of management's expectations.

Sales in May were particularly encouraging with like-for-likes at its legacy stores up 6% from the same period last year. Like-for-like sales at its newer stores are running 12% higher than the same period last year.

Overall like-for-like sales in June are running in line with trend at 4% higher than last year, despite the recent lack of BBQ sales opportunities, as compared to the previous year.

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Year to date margins are now slightly above last year, with the recent margin performance being particularly encouraging, the company said.

Crawshaw previously reported concerns regarding the Governments proposals to add VAT to certain currently exempt cooked products.

"The recently announced concessions have helped in so far as we would be permitted to sell such items "on the cool" VAT free. This does however create in itself some anomalies, particularly affecting our small format stores. We have therefore made further representations to the Treasury, both in writing and in person, and are hopeful that workable solutions can be found," it said.

CJ