UK baker and confectioner Lees Foods today (24 May) reported a jump in underlying annual profits due to higher sales and improved efficiency.
The company booked net profit from continuing operations of GBP696,105 (US$1.1m) for 2010, up 61.3% on 2009.
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Including the loss that Patisserie UK, the Lees unit that fell into administration two years ago, made in 2009, the group’s net profit more than doubled in 2010.
Lees’ pre-tax profits were up 55.1% at GBP949,968 on the back of a 3% increase in turnover to GBP18.6m.
Chief executive Clive Miquel said 2010 was a year of “solid growth” for Lees. Miquel called the improved sales “especially satisfying” as the company saw sales rise across most product categories.
The Lees boss said “a large part” of the group’s business remained with UK multiples but said the group had increased its presence in the country’s foodservice channel and had made “positive inroads” with European retailers.
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By GlobalDataLooking ahead, Miquel said the outlook for commodity prices was “unsettled”. Lees, he said, had improved production efficiency, reviewed the packaging on its products and secured “targeted” price increases to combat cost increases.
He added: “The tough decisions that we have taken to mitigate cost increases have made us leaner and put us in a strong position to achieve our future growth ambitions.”
Shares in Lees were up 10.64% at 197.5p at 10:44 BST this morning.
