Glisten’s chief executive has revealed that issues at the group’s Halo Foods business coupled with depressed demand due to the economic downturn dented profitability at the UK snack group, which today (2 November) posted a 49% drop in pre-tax profits.
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Glisten said that pre-tax profits for the year ended 30 June fell to GBP3.38m, down from GBP6.68m, while EBITDA was down 28% to GBP7.1m.
“It all relates to the problems at Halo Foods, our cereal snack bar business,” CEO Paul Simmonds told just-food. “Halo under-delivered and dropped about GBP2m during the period.”
At the end of August, Glisten announced that it would have to delay its results release for the fiscal year due to “accounting issues” at the Halo Foods unit.
However, Simmonds admitted that even excluding Halo’s results Glisten’s results would have been “a bit” down on the previous year.
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By GlobalData“We were definitely affected by the recession. But profits would only have been down about 10%,” he said.
Looking to the coming year, Simmonds sounded an upbeat note. With strengthening demand and the issues at Halo, which he insisted “remains a very good business”, behind the company Simmonds insisted Glisten had cause for optimism.
“We are seeing much more stable demand for all our products in all our business units,” he revealed.
