Lees Foods: pre-tax profits up 43% in H1/2010

Coatbridge / UK. (lf) First half sales at sweets and cakes maker Lees Foods PLC, owners of «Lees of Scotland» and «The Waverley Bakery», rose by nine percent to 9,6 million GBP in the six months to the end of June with pre-tax profits up 43 percent at 562’000 GBP. Gross profit rose 14 percent to 3,2 million GBP and earnings per share increased 46 percent to 0,172 GBP. Summary of the interim results for the six months ended 30th June 2010:
Sales up nine percent to 9,6 million GBP (2009: 8,9 million GBP)
43 percent increase in pre-tax profits to 562’000 GBP (2009: 394’000 GBP)
Gross Profit up 14 percent to 3,2 million GBP (2009: 2,8 million GBP)
46 percent increase in Earnings per Share to 0,172 GBP (2009: 0,118 GBP)

CEO Clive Miquel: «We are very pleased with the results for the first half of the year and they demonstrate that the strategy we have implemented is being rewarded with increased sales and profits. Sales have benefited from the general uplift within the major multiples in the food sector across the Lees´ product range and we have increased our market penetration in the area of food service. Increased focus on production planning has also helped generate greater efficiencies and cost savings and we are continuing to assess how we can improve production capabilities at both sites. Items such as the new meringue depositor installed last year are now delivering benefits and represent a positive return on investment. Looking ahead to the full year performance, despite raw material costs remaining uncertain, we expect both sales and pre-tax profits to be in line with market forecasts».