Glisten shines as takeover nears

by pa.press.net - 22/03/2010

"Snack firm Glisten has posted a 12% rise in half-year profits in its last update before being taken over by Benecol maker Raisio."

The company, which makes cereal and fruit snack bars and holds the UK rights to make SunMaid raisins and Weightwatchers products, said pre-tax profits rose to £2.22 million in the six months to December 31, from £1.98 million the previous year.

Leeds-based Glisten said like-for-like sales grew 10% in the period, helped by a good start to the financial year last summer. Chief executive Paul Simmonds said: "Most parts of our business are performing steadily and we are satisfied with progress to date this year, but remain cautious about continued sales growth during the second half of the year."

But the group warned of challenges ahead in the short-term as consumers continue to focus on price.

The firm said the results would be its last as an AIM-listed company after shareholders last week approved an offer by the UK subsidiary of Finnish food group Raisio valuing the company at around £19.8 million.

Raisio - known in the UK for its Benecol range that claims to help reduce cholesterol - will complete the takeover subject to court approval.

Mr Simmonds added: "We believe that consumer focus on both premium and better-for-you/healthier snacks will return strongly, but in the short term there is no doubt that the absolute priorities for many consumers continue to be price and value."

The firm said underlying sales in the first 11 weeks of the second half were in line with the same period last year.

Turnover in the first six months increased to £39 million, from £35.4 million.

More Details: http://money.uk.msn.com/news/articles.aspx?cp-documentid=152699798