Tuesday 1 July 2014

Greggs trading update

Greggs the Bakers


The leading bakery food-on-the-go retailer in the UK, with almost 1,700 retail shops throughout the country.  I have a holding in my income portfolio (epic code: GRG).



 
Greggs issued a positive trading update today stating that sales for the 26 weeks to 28 June 2014 grew by 3.1% with like-for-like sales in their own shops growing by 3.2%.
  
During this period they have been busy reshaping their estate to the food-on-the-go concept with 131 shop refurbishments and they intend to refit around 200 shops this year. They also opened 26 new shops and closed 36 shops, this resulted in 1,661 shops trading at 28 June.
 
Greggs disposed of a number of surplus freehold properties in the period realising property profits of £1.4m (2013: £0.2m).
 
Management say they expect to show interim operating profits of around £16-17m (2013: £11.5m) and to deliver an improved financial result for the year. 
 
This is a strong update from Greggs and likely to add to the recent momentum in the share price, as investors become convinced about the food-on-the go strategy.

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