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Zetar

  • BY: Andrew Hore |
  • POSTED: 24/01/2012 |

Confectionery and snacks manufacturer Zetar improved its interim profit by selling more higher margin confectionery but Easter orders are disappointing.

So far Easter orders are lower than last year but revenues for the first eight months of the financial year are flat at £84m after a reasonable Christmas. However, if the figures are adjusted for the withdrawal from low margin business and the Derwent Lynton acquisition the underlying growth is 7%. 

Revenues edged up from £60.3m to £61.8m in the six months to October 2011. Underlying profit improved from £2.44m to £2.75m. Even though snack sales were lower the divisionís operating profit contribution was slightly higher. Zetar plans to grow its business in France and Belgium.

Net debt was £24.4m at the end of October 2011, although a maiden dividend of 2.25p a share was paid four days later. That net debt is more than the market value of the shares. At 173.5p a share, down 16.5p, Zetar is valued at £23m. The shares are trading on less than five times 2011-12 prospective earnings.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJanuary2012_28.pdf

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