Tough year for Zetar

Announcing its annual results for the year ended 30 April 2008 today (23 July), chief executive Ian Blackburn said that given tough market conditions, he was pleased with the good performance of Zetar's core operations. He went on: "For the foreseeable future the financial markets will make it difficult to grow the group by acquisition. However, last year's investment in manufacturing capacity and the group's entry into the emerging healthier baked snacks and growing luxury indulgent box chocolate sectors, as well as the addition of the Baileys licence for chocolate, will enable the group to continue to grow organically.” The Group had made a solid start to the year, despite the challenging trading environment, Blackburn added. In the year, total revenue was up 17% to £111.2m (2007: £94.9m) and earnings rose 8% to £10.0m (2007: £9.3m). Operationally, entry into emerging healthier baked snacks market through The Baked Snacks Company had incurred start-up losses of £0.9m, the confectionery division had expanded its product portfolio into the growing luxury indulgent box chocolate market and Bailey's brand chocolates through acquisition of Lir in Ireland. Chairman David Williams said there was no doubt that the year proved to be the group's most challenging to date. The collapse in the credit markets and the related negative stock market reaction were increasingly being felt by all companies that depended on consumer confidence, including those in the food sector. These and more company specific issues impacted the company's value resulting in a disappointing fall in the company's share price from £5.69 per share last year to £2.81 today.