Greggs sees annual profit jump

British bakery retailer Greggs posted a 41 per cent jump in annual profit, helped by improved products, service and shops as well as a favourable trading environment.

The company also reported that its new financial year had got off to a good start.

The Newcastle-based firm, known for its pasties, sausage rolls, doughnuts and Belgian buns, said it was confident of delivering another year of good growth in 2015.

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It said the outlook for the first half suggested that low inflation should continue to support disposable incomes. Sales at stores open over a year were up 6.3 per cent in the first eight weeks of that period.

Greggs made a record profit before tax and one-off items of £58.3m in the 53 weeks to January 3, up from £41.3m in the previous year.

The performance was consistent with guidance issued in January when Greggs upgraded its profit outlook for the third time in five months.

Total sales grew 5.5 per cent, while like-for-like sales were up 4.5 per cent.

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Chief executive, Roger Whiteside, said: “We have improved both our food offer and the shop experience for customers. Market conditions have been more favourable,” said Chief Executive Roger Whiteside.

Greggs hiked its dividend 12.8 per cent to 22 pence a share and said it would resume its share buyback programme, with the capacity to return up to £10m pounds to shareholders.

Shares in Greggs have increased 77 per cent over the last year, hitting a record high earlier this month. The stock closed at 870.5 pence on Tuesday, valuing the business at about £881m.

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