Offset rising ingredient costs through packaging reduction
Confectioner Lees Foods has reported a six per cent rise in profit to £1.09 million for the 2011 year.
The profit rise came despite “significantly higher input charges” related to higher material and running costs.
Revenue for the 2011 year rose by 8.9 per cent to £20.3 million.
Chief executive Clive Miquel said management at the Coatbridge company had worked hard last year to mitigate the margin reduction.
Lees Foods comprises Lees of Scotland, which makes teacakes, meringues and biscuits, and Glasgow-based Waverley Bakery, which makes wafers sold under the Carousel brand.
Last month the directors of Lees announced a £5.5 million buyout offer for the firm.
However, shareholders have now referred the company to the Takeover Panel over concerns they have at the fees being offered to broker Shore Capital recommending the takeover.
Investor group ShareSoc says Shore Capital stands to earn a higher fee if the 230 pence a share deal is accepted.
Shore Capital said it made its recommendation based on the fact all of Lees Foods non-executive directors are involved in the offer.
ShareSoc argues the recommendation is not independent, and some individual shareholders have argued the value price is too low and are demanding an offer of more than 300 pence a share.
The investor group said it believes it has enough of Lees shareholders now on board to vote down the takeover proposal later this month.