As the trading statement of UK sandwich and bakery chain Greggs was released yesterday (8 January), analysts spoke of the distinct lack of surprises they were expecting. Indeed, in line with targets, like for like sales during H2 grew more than 6%.
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Based in Yorkshire, the chain has gradually grown to number 1,100 outlets since its 1984 listing. In 1994 a buyout of Bakers Oven bought a series of upmarket, seated additions to the Greggs portfolio and gradual refurbishments and streamlining has done little to rock the financial boat.
Now a gradual, incremental move into the South of England is planned, with managing director Mike Darrington commenting: “The further south we go the more potential there is because our presence is fairly mature in the north.”
Cash rich and lacking in any debt, analysts argue that the investors will find Greggs risk-free and reliable, but really rather boring. No damaging losses, but no big returns to be had either.
Gregg’s was the only baker to be granted a concession in the Millennium Dome – the group did not issue figures for the business it expects to lose following the Dome’s closure.
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