London / UK. (zt) Confectionery and snack foods group Zetar PLC posts its preliminary results for the year ended 30th April 2012. The delivered results are in line with current market expectations and the Group announced a positive start to the current year. Proposed dividend increased by 33 percent.
Financial Highlights
- Group revenue 5,0 percent lower at 128 million GBP (2011: 135 million GBP) due to strategic exit from low margin commodity snack products and reduction in Easter confectionery sales
- Group adjusted PBT down 17,5 percent to 5,5 million GBP (2011: 6,7 million GBP)
- Group adjusted diluted EPS down twelve percent to 33,8 GBPence (2011: 38,5 GBPence
- Net assets of 47,0 million GBP represent 3,55 GBP per share (2011: 3,50 GBP)
- Proposed dividend per ordinary share increased by 33 percent to 3,0 GBPence (2011: 2,25 GBPence)
Operational Highlights
- Group sales mix improving:
- brands 34 percent
- everyday products 54 percent
- 25 percent growth in Natural Snacks´ licensed brand portfolio
- Derwent Lynton business transfer and integration completed
- Zetar France subsidiary established and first licences signed
- Overhead reduction plan implemented, saving 600’000 GBP pa in FY-2013
- David Williams stepping-down having been Chairman since Zetar formed seven years ago
Post year-end Highlights
- Positive start to the current year with sales in first eleven weeks up 16 percent to 19,9 million GBP (2011: 17,2 million GBP):
- Underlying sales growth due to further gains on everyday confectionery seven percent
- One-off Olympic food gifting sales in May/June of 1,5 million GBP
- Zetar France listings confirmed with French retailers for Christmas 2012
- Guinness and Tango brands added to portfolio; further strong brands in negotiation.
Chief Executive Ian Blackburn: «Last year´s financial performance was disappointing primarily due to the late reduction in Easter 2012 sales, as our customers became increasingly cautious as the economic crisis in Europe unfolded. However, we continued to make good progress towards our main strategic objectives to increase the proportion of everyday and branded sales. Our portfolio of brands has been extended by the addition of the iconic brands Guinness and Tango, and we anticipate signing further well-known brands in FY-2013. Towards the end of the year we also reduced overheads and have put initiatives in place to improve operating efficiencies and product quality. The Group´s positive cash flow enabled it to continue to reduce borrowings whilst also making a significant investment in the Group´s future growth.
We are optimistic about the new financial year following recent significant new everyday product wins and although consumer markets remain challenging, we are pleased that the year has begun in line with our expectations with underlying sales growth of seven percent, to which may be added one-off sales in respect of Olympic gifting products of approximately 1,5 million GBP million in the first eleven weeks of the year. Last year´s cost initiatives are reflected in improved margins in the period. Accordingly the Board is confident that the Group´s results for the current financial year will be back on plan and its confidence in the Group´s future prospects is reflected in the proposal to increase the dividend by 33 percent to 3,0 GBP per ordinary share».
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