Lees Foods has achieved record sales in its core businesses in 2008 but it was hit by a Woolworths bad debt.
The macaroon bars and snowballs maker has made a provision for a £69,000 bad debt from Woolworths.
Excluding the bad debt, the sales and underlying profits will be in line with expectations. The market expectation is a 2008 profit of £450,000, against £721,000 in 2007. The first half profit was £222,000.
Shares in Lees have fallen 1.5p to 126p each, which values the company at £3.11m. The shares are trading on 10 times estimated 2008 earnings.
The main worry is the Patisserie UK subsidiary, which lost a major customer. Lees is considering the future of this business, which was acquired in December 2007.
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