Profits down but confidence still high at Glisten
SNACKS and sweets group Glisten announced a 49% dip in pre-tax profits but remains confident of its ambition to be the “best young food company” in the sector.
The Leeds-based group reported pre-tax profits slipped to £3.38m for the year ended June 30 compared to £6.68m the year before.
Revenue rose 1% to £74.4m from £73.8m in 2008.
Glisten said the Savoury Snacks, Lyme Regis and Nimbus were showing “excellent performance” and that like-for-like sales in the first 17 weeks of the current year were 13% ahead.
Glisten had been forced to delay the announcement of its results until an independent review of its accounting and reporting processes had been completed following the suspension of two senior directors in June.
They were suspended due to “apparent failures in accounting practice and management process” at its Halo Food division.
However, it said that the understating of costs by material amounts was an isolated incident but that it had reviewed its internal procedures to reduce the likelihood of it ever happening again.
Commenting on the results Paul Simmonds chief executive of Glisten said:
“Although our results for the year are below our original forecasts, our confidence, optimism and determination to continue to make Glisten one of the very best young food businesses in its sector remain undimmed.
“We have made good progress again this year and, although this was overshadowed by shortcomings in the fourth quarter in Halo Foods, this has been quickly corrected.”
Glisten also confirmed that its chairman Jeremy Hamer is stepping down in December.
The company’s brands include Fruitus produced by Lyme Regis Foods, Dormen and SunMaid.
In September 2007, the group acquired 50% of Skinny Candy, a young branded confectionery business focused on low sugar-low fat confectionery, and Dormen Foods, which became the foundation stone of the Savoury Snacking Division.
This was followed in November 2007 by the acquisition of Big Thoughts, comprising two subsidiaries active in the low fat/baked savoury snacking marketplace – Snacks Unlimited and The Lindum Snack Company.
