Greggs makes steady progress

11th Aug 2009 07:11

Bakery chain Greggs lifted its interim dividend to a record level as it shrugged off the impact of the recession to lift underlying half-year profits by 7.3%.Pre-tax profits came in at £16.5m for the 26 weeks to 27 June, against £23.4m last time, though stripping out one-offs the comparable figure was £15.4m. The operating margin was 5.2% (2008: 5%, excluding property and exceptional gains).Group sales increased by 4.4% to £312m (2008: £299m), including like-for-like sales growth of 1.5%. Tougher comparatives in the final seven weeks of the half slowed the overall rate of like-for-like growth from the 2% reported for the first 19 weeks, Greggs said.'The high street trading environment remains difficult, not helped by the recent wet weather. However, costs continue to be well-managed and the group's financial position remains strong. This gives the board confidence that Greggs is well placed to cope with the continuing challenges in the market place,' chairman Derek Netherton added.The interim dividend increases by 6.1% to a record 5.2p.