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Zetar
- BY: Andrew Hore |
- POSTED: 22/07/2009 |
Confectionery and snacks manufacturer Zetar reported lower underlying profits in the year to April 2009 but revenues are growing.
Zetar says that revenues in the first 11 weeks of the current financial year were 10% ahead at £14.6m.
Revenues improved from £109m to £119m in 2008-09, while adjusted profits fell from £7.11m to £4.54m. That excludes £1.51m of reorganisation costs and bad debts - mainly Woolworths - as well as a £5.84m loss on the baked snacks business which was sold earlier in 2009.
Net debt was £15.4m at the end of April 2009. There is also performance-based deferred consideration of up to £520,000 payable over more than one year. The business is cash generative.
Both the confectionery and snacks divisions reported falling profits while revenues improved. Confectionery operating profit dipped from £5.63m to £4.38m. There was a sharper fall in snacks operating profit from £3.09m to £1.67m.
Management believes that profits will recover this year. They are also aiming to increase sales of fruit-based snacks by at least 25%.
The shares continued their recovery and rose a further 6p to 170.5p each. That equates to a 79% increase over the past three months. Zetar is capitalised at £22.6m.
Altium was appointed nominated adviser and broker during May 2009.
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