22 January 2008 - Zetar Plc, the AIM listed confectionery and snack foods group, announces its unaudited results for the six months ended 31 October 2007.
Highlights
· Turnover up 26% to £48.0m (2006: £38.2m)
· EBITDA* up 17% to £3.5m (2006: £3.0m)
· Operating profit £2.0m (2006: £1.9m)
· Adjusted operating profit** £2.4m (2006: £2.2m)
· Basic earnings per share 7.3p (2006: 9.2p)
· Adjusted diluted earnings per share 9.9p (2006: 10.9p) – excluding Baked Snacks operating losses and related financing costs, adjusted diluted earnings per share 13.0p
· Zetar enters the emerging healthier baked snacks sector via the acquisition of the business and assets of Britannia in May 2007
· Since 31 October 2007:
- Acquisition of Lir on 17 December 2007 for up to 8.0m (£5.7m)
- Placing of 714,285 new shares at £5.60 per share to raise £4.0m (gross)
- Turnover for eight months to 31 December 2007 of £68m (2006: £56m)
· The Group’s operating performance remains in line with the Board’s expectations for the current year
* Earnings before interest taxation depreciation and amortisation of intangible assets, stated before share-based payment costs
** Adjusted operating profit is stated before amortisation of intangible assets and share-based payment costs
Ian Blackburn, Chief Executive said:
“During the period under review our focus has been on consolidation, integration and investment for future sustained earnings growth. We are pleased that despite the challenging market conditions, and excluding Baked Snacks’ initial losses, the Group has maintained its record of successful year-on-year progress.
Whilst, as expected, Baked Snacks incurred losses in its start up period, we have achieved considerable progress during the period bringing it to a position whereby it has launched products to several new customers in early 2008.
In December 2007 the support of existing shareholders and the introduction of Lincoln Vale, a new long term strategic shareholder, enabled the Group to raise £4.0 million and complete the Lir acquisition. Lir is a manufacturer of luxury indulgent boxed chocolates, including in particular a range of liqueur chocolates under the Baileys brand.
We are confident that strong foundations have been established across the Group on which the Board can continue to pursue its organic and acquisitive growth strategy, with a current focus on establishing a European operational platform.”