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Glisten

  • BY: Andrew Hore |
  • POSTED: 24/06/2009 |

Worse than expected margins in the fruit & cereal snacks division mean that Glisten will report lower than expected profits.

The problem was in the Halo Foods business and its managing director and finance director have been suspended. They failed to take account of higher materials costs. The division is still growing, though.

This is behind the fall in operating profits from £8m to £5.8m in the year to June 2009. Pre-tax profits will be around £4m against previous expectations of £6m.

Second half revenues will be at least £39m against £35.4m in the first half. Annual sales will be 2% higher at not less than £75m.

Net debt will be near to £26.5m at the end of June 2009 - down from £27.4m at the end of 2008. Debt will rise in 2010 with £1.25m of deferred consideration for Dormen Foods due at the end of October 2009. Total bank facilities are £31.75m.

Management says that all the parts of the business are profitable and cash generative and it expects profits to grow this year.

During June 2009, Tilney increased its stake to 5.02% and Artemis VCT reduced its stake to 4.64%.

The full year results will be issued on 14 September. Shares in Glisten fell 4.5p to 97.5p each, which values the confectionery and snacks business at £13.6m.

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