UK snack and bakery company Lees Foods today (29 September) revealed that it anticipates full-year profits to be below last year’s level after pre-tax profits almost halved in the six months to 30 June.
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Profit before tax fell to GBP222,057 (US$400,166) from GBP413,252 in the first half as higher manufacturing, raw materials and distribution costs weighed on results.
“We are endeavouring to pass these costs on to our customers wherever possible, however, this has inevitably impacted on our bottom line,” Raymond Miquel, chairman and managing director, said. “The company continues to trade successfully, although profits will be down on last year’s figures,” he added.
Basic earnings per share for the six-month period dropped from 12.6 pence to 5.7 pence, the company said.
First-half revenue rose to GBP8.89m, up from GBP7.85m last year. The acquisition of Patisserie UK, which Lees purchased in December last year, boosted sales by GBP1.1m.
“We hope to announce an acquisition in the near future which will move us into a different area of operation,” Miquel added without elaborating.
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