UK bakery reports pforits fall

British bakery chain Greggs today said it endured its toughest trading conditions for more than a decade last year after full year profits fell 13% to £43.7m (€64.5m).

The Newcastle-based company blamed the profits slide on tough trading conditions and higher energy costs during the year to December 30.

Greggs reported “disappointing” like-for-like sales growth of just 0.5% during 2006, although it said the final weeks of the year showed a marked improvement which had continued into the new year.

Michael Darrington, Greggs managing director, said: “Trading conditions during 2006 were the most demanding that we have encountered for well over a decade and these were reflected in our disappointing like-for-like sales performance.”