Lees Foods on verge of another acquisition

Sep 29 2008

Turnover up in first six months for snowball and macaroon maker but profits fall

The maker of Lees snowballs and macaroon bars says it hopes to announce an acquisition in the near future which will move it into a different area of operation.

Coatbridge based Lees Foods revealed its plans as it unveiled  a fall in first half profits after being hit by substantial cost increases.

It saw profits drop from s413,252 to s222,057 though turnover increased by s1.1m to s8.89m thanks to the purchase of Patisserie UK last year.

Chairman and managing director Raymond Miquel said the company continued to trade successfully.
He said: The increased turnover from the first six months of 2008 reflected six months sales of Patisserie UK which we purchased in December 2007.  This amounted to s1.1 m and indicates that sales in the rest of the Group were in line with last years figures.
 
Since June sales have been strong in Lees of Scotland as a result of the introduction of several new products, we anticipate that this Companys sales will be ahead of last years figures.  Waverley sales are steady and are in line with last years figures.
 
Whilst sales are satisfactory, profits have been affected by substantial increases in power, raw materials and distribution costs.  We are endeavouring to pass these costs on to our customers wherever possible however, this has inevitably impacted on our bottom line.
 
The Company continues to trade successfully, although profits will be down on last years figures as I reported previously.
 
We hope to announce an acquisition in the near future which will move us into a different area of operation.