Lees Foods: Patisserie UK’s performance «disappointing»

Coatbridge / UK. (lf) The future of Patisserie UK´s place within Lees Foods´ group of companies has been put into question by directors, the group said in a trading update. Lees Foods PLC is the parent company of Lees of Scotland, the Waverley Bakery and Patisserie UK. Lees is headquartered in Coatbridge (Scotland). Patisserie UK Limited produces «handmade cakes, tarts and cheesecakes» in Livingston. In its press release the group says:

«We are pleased to report that both Lees of Scotland and Waverley Bakery achieved record levels of sales turnover for the year ended 31 December 2008; a strong performance given the current difficult economic environment. This has resulted in Group sales being in line with expectations. We are also pleased to report that the underlying profit for the Group is in line with market expectations for the year, despite the Group having to absorb substantial raw material and power cost increases during the year. In addition the Group continues to have strong cash generation which has resulted in a reduction in net bank debt from the previous year. Due to the administration of Woolworths, we have had to make a full provision for a bad debt, the net effect of which is 69’000 GBP. This is a one off amount but will consequently reduce the reported net profit for the year ended 31 December 2008. The performance of our Patisserie UK subsidiary has been disappointing in 2008, primarily due to the loss of a major customer. The Directors are considering its future position within the Lees Group and will make a further announcement in due course».