London / UK. (zt) Confectionery and snack foods group Zetar PLC announces its preliminary results for the year ended 30th April 2011. «We are pleased with the progress made during a year of many challenges. In particular, our Confectionery division achieved a record result reflecting a continued increase in everyday sales and improved mix of higher margin products allied to further cost efficiencies. The margins in our Natural Snacks division improved significantly in the second half as price increases were implemented following the dramatic rise in commodity prices, and more branded products were sold» – said Chief Executive Ian Blackburn in a statement.
Financial Highlights
- Revenue up two percent to 135,0 million GBP (2010: 131,9 million GBP)
- Adjusted profit before tax up six percent at 6,7 million GBP (2010: 6,4 million GBP)
- Ebitda increased to 9,8 million GBP (2010: 9,6 million GBP)
- Adjusted diluted EPS up nine percent to 38,5 GBPence (2010: 35,4 GBPence)
- Net debt at year end of 14,9 million GBP (2010: 11,1 million GBP) due to late Easter but over two million GBP lower year-on-year by end of May 2011
- Net assets up 4,5 million GBP to 46,3 million GBP, representing 3,50 GBP per share
- New committed bank facilities until September 2014
- Proposed inaugural dividend of 2,25 GBPence per ordinary share
Adjusted profit before tax (PBT) and earnings per share (EPS) are both stated before one-off items, amortisation of intangible assets, sharebased payments, the fair value movement on financial instruments and the net result from discontinued activities.
Operational Highlights
- Improved quality of business – over 33 percent of sales generated by brands
- Record Confectionery performance from increased everyday and better sales mix allied to cost efficiencies
- Natural Snacks´ second-half operating margin increased to 4,5 percent from 2,6 percent
- Strong pipeline of licensed brands
- Integration of Derwent Lynton (acquired April 2011) progressing on plan Post year-end Highlights
- Encouraging start to the current year with sales in the first eleven weeks up year-on-year by six percent to 17,2 million GBP (2010: 16,2 million GBP)
- Strategic partnerships formed with two major European companies, the first steps towards creating a «onestop shop» for licensors covering all confectionery categories across the UK and Europe
- Recent award of 2012 London Olympics «food gifting» licence
Blackburn: «We have set ambitious plans for the Group to enhance revenue and margin over the next three years. Our key focus is to drive sales of premium private label and branded products across both divisions. We have made good progress in the past year on extending our portfolio of innovative snack products sold under renowned brands, including Branston and Ambrosia. This trend has continued into the current year with Sharwoods and the recent signing of the Tango licence for orange-flavoured chocolate products. Private label sales also remain a core opportunity as retailers devote more shelf-space to premium, added-value products. The Group´s strong financial base provides the resource to realise this strategy. We have the platform to further innovate and grow, including small acquisitions such Derwent Lynton which was completed in April. The Group´s future prospects and increased financial strength are reflected in the Board´s decision to pay an inaugural dividend».
