Sales rise for confectionery maker Lees

Lees Foods, the iconic Scots confectionery maker, has recorded a modest rise in sales and flagged annual profits in line with market hopes despite rising costs.

In a brief year-end update, the Coatbridge firm said sales closed at about 18.7 million for the year to December, some 2.5 per cent ahead of 2009. Pre-tax profits for 2010 "are expected to be in line with current market expectations," it told investors.

Chief executive Clive Miquel said the company had continued to tackle higher commodity and packaging costs, which had included the price of coconut more than doubling.

He added: "It is too soon to estimate the net impact for this year, as we are working very hard to mitigate these increases both through improved efficiencies and by passing a proportion of these costs on to our customers."