Mouthwatering performance from Lees Foods

SWEET maker Lees Foods gave investors a tasty treat yesterday by predicting full-year profits ahead of City forecasts, despite the rising cost of sugar and other raw materials.

The Coatbridge-based firm behind the iconic macaroon bar posted a 10.5 per cent fall in profits to £505,000 in the first six months of this year although there was a 6 per cent rise in turnover to £10.2 million.

Chief executive Clive Miquel said a number of cost-saving measures were beginning to mitigate rising prices and the company now expects profits for the whole of 2011 to come in “well ahead” of forecasts of around the £900,000 mark.

Much of the savings – which include waste reduction and more efficient manufacturing – were brought forward from their planned introduction.

The group’s Lees of Scotland subsidiary – which makes meringues, snowballs and teacakes – showed good growth across most categories during the first half. The company’s Waverley Bakery arm, which makes ice cream cones and wafers, got off to a strong start before succumbing to poor weather.