Investment summary

Zetar’s year-end trading update confirms the picture outlined in March, with retailers having under-ordered Easter confectionery product. We maintained our FY13 figures then as we do now, thanks to the positive momentum in new business wins in both own-brand everyday lines and branded sales, and the first signs of meaningful progress in France. Exceptional reorganisation/investment costs mean net debt is slightly higher than our earlier forecast, but gearing is down to 23% at end April and should fall further in the current year. The valuation remains overly harsh.

Last updated on 15/05/2012

Industry outlook

The quantum of sales of FY13 seasonal product will crucially depend on this year's sell-through, which appears to have been good. Opportunities may be presented by further consolidation among the supplier base, being driven from two directions; the grocers wanting to rationalise their roster to gain efficiencies and smaller competitors struggling to make the necessary investments to ensure the levels of consistency and quality increasingly required by their customers.

Last updated on 23/04/2012