new-recommended-broker-banner new-recommended-broker-banner

Cranswick Share Price Slips as Local COVID Outbreak Shuts its NI Plant

Start trading
Updated: 21 August 2020

Shares of Cranswick PLC (LON: CWK) slipped around 1.5% on Friday after the meat producer said it will shut its plant in Ballymena, Northern Ireland because of the local COVID-19 outbreak.

Cranswick found itself under severe criticism after nine workers at its Wombwell plant in Barnsley, South Yorkshire fell ill in March. Out of these nine, three died from the virus.

“Whilst an inconvenience outside the group’s direct control, we believe that Cranswick’s two major pig processing units in England can comfortably meet customer requirements whilst Ballymena is down and, given the anticipated short-term nature of the plant’s closure, we would not anticipate any discernible earnings impact whatsoever,” Shore Cap analysts said, before adding that the plant is likely to stay closed for 2 to 3 weeks.

The company said that it will “temporarily cease production” at its NI facility to help contain the local virus outbreak.

 Cranswick stock price plunges as local COVID outbreak shut its plant in Northern Ireland August 2020

Earlier this week, Cranswick share price soared after the firm posted higher revenue in the 13 weeks ending June 27. However, the buyers were unable to sustain these gains as the price action rotated lower to now trade nearly 3% in the red on a weekly basis.