Glisten looks for sweet festive sales

SNACKS and sweets group Glisten has seen sales in its current financial year rise by 15% but is remaining cautious about “volatile” market conditions and plans to launch a new range of cut-price natural snack bars.

Jeremy Hamer, chairman of the Leeds-based company, delivered a relatively upbeat message at its annual general meeting saying that even though the economic downturn is “slowing the progress of all our business units to differing degrees”, sales during the first 18 weeks of its financial year have reached £24.3m, up 15%, while like-for-like sales are 5% ahead.

Mr Hamer will tell shareholders: “We are confident that Glisten is in the right place to weather the storm but market conditions across the consumer sector are self evidently difficult and demand levels are more volatile than usual. We will therefore continue with our plan and review our position in the New Year when we have a clearer outlook.”

The group, run by chief executive Paul Simmonds, is hoping for a double festive boost from sales of its Domen Nuts, Snacks Unlimited and Glisten Confectionery products at Christmas and then its Halo Foods healthy snack products in the New Year as people start dieting and getting fit.

Mr Hamer said the group paid a further £3.25m at the end of October as part of its deal to acquire Domen Foods which has left it with “borrowing headroom” of £3m at the bank, but it has begun to reduce its borrowings as it continues to generate cash.

Its loan facilites, which will not be renewed until 2012, have a “cap and collar” mechanism which will mean it will not see the full benefits of the recent interest rate reductions and will see its average cost of borrowing at around 6%.

Mr Hamer will also tell shareholders: “As a result of current market conditions we have amended our second half trading programme to place increased emphasis on winning new business by delivering better consumer value. As an example we are launching selected new natural snacking products which will retail at around 99p.

“These price-fighting products, under our own brand names, have already ready been listed by some retailers and will launch early in 2009. This ‘value programme’ will run alongside our core activity and will underpin our performance during the year ahead.”