6 January 2011 – trading update

A trading update for 2010 has been released and this will be another record year, with profit in line with forecasts. Net cash balances have grown significantly. However, it was noted that cost pressures emerged towards the end of the year with regards to commodities and packaging. Coconut, which is an important ingredient in Lees’ products, has doubled in price in recent months. Nevertheless, the company looks in good shape and is by no means alone in facing cost pressures, which it will be able to pass on to some extent. Given the current share price we retain our STRONG BUY rating.