Glisten losing its shine as profits fall

SNACKS and sweets group Glisten today revealed a drop in first half pre-tax profits but chief executive Paul Simmonds said that it has made a “solid” start second half of the year.

In the six months to December 31 the group, which operates the Glisten Confectionery business in Blackburn, saw profits before tax and adjusted items fall to £2m from £3.3m the year before on turnover which rose to £35.4m from £33.5m.

It said changes within its cereal bars operation coupled with the effects of the downturn had hit the figures but Mr Simmonds said that it was having a “reasonable time” and the first 11 weeks of its second half had seen sales in line with last year.

“We don’t want to come across as that whingeing lot!” he said.

“We are battlers and enjoy adapting our business. We will be investing £2m in new products this year. Most parts of our business are not far from where we wanted them to be. It’s an incredibly mixed bag out there.”

He said that while consumers still like healthy snacks, price is becoming more of a focus during the downturn and the group is further developing its ranges including the Snax products which are priced at 99p.

The Yorkshire-based group said it would not pay an interim dividend – last year it was 1.1p – but Mr Simmonds said that it expects to pay a final dividend.

He said that there was frustration that the group’s share price has fallen by 90% over the last nine months while its profits are only 10% down on original expectations over the same period.

Mr Simmonds added:  “We believe that consumer focus on both premium and better-for-you/healthier snacks will return strongly but in the short term, there is no doubt, that the absolute priorities for many are price and value.

“Consumers are self-evidently changing their buying patterns weekly, prompted by an increasing range of deep-cut price-promotional offers particularly from some of the big multi-national brands.

“Glisten has responded swiftly to this challenge with the successful launch of price-fighting ranges offering excellent value for money and securing short term demand. We are benefiting significantly from our acquisitions in savoury snacking and have seen some excellent developments within our bar and confectionery businesses.

“While the business climate demands that we constantly adjust the formula within our operating divisions, we have a proven track record of doing so and there is
considerable confidence throughout the board and management team.”