http://www.zetarplc.com/

Zetar is an AIM listed confectionery and snack food group formed in 2005
We manufacture branded products under licence, our own brands and private-label products.
We have well established UK operations with ambitions to expand into EuropeOur Confectionery division is a leading independent UK chocolate manufacturer, supplying a wide range of “everyday” and seasonal products to all the main multiple retailers and we also contract-manufacture for a number of the major confectionery brands. We are the UK market leader in children’s character products, allergen chocolate and advent calendars, and a major Easter egg supplier. In addition, we produce high quality boxed chocolates, including under our own Lir brand, and we manufacture a range of brands under licence such as Baileys and Famous Grouse. We are recognised for our creativity in developing new products and provide a constant stream of innovative product ideas to our customers.

Our Natural Snacks division is a leading UK supplier of dried fruit and nuts to a wide range of customers including most of the main multiple retailers along with a number of specialist retailers. We have a growing number of added-value lines for both nuts and fruit snacks under our own brands, such as Humdinger and Fruit Factory, and also under-licence, such as Marmite, Reggae Reggae and Vimto.

Zetar continues to pursue opportunities to create substantial shareholder value by the acquisition and integration of other companies within these markets in the UK and Europe and to grow its business organically.

Due a November first-half trading update. News of continuing positive operational trends as well as potential brand licensing deals could foster forecast upgrades and rerating. The £28.9 million cap is gradually restoring confidence following disappointing
annual results 18th July to April, when weak Easter confectionary orders were responsible for a profits reverse. Under the stewardship of experienced chief executive
Ian Blackburn, Zetar is coping commendably with poor consumer sentiment and elavated input costs ranging from nuts and chocolate to packaging. Customers include
Tesco,Marks & Spencer and Sainsbury's.
Earnings quality is on the up as a result of a deliberate shift in sales mix from seasonal goods towards everyday products. The drive has been coupled with the successful pursuit of a licenced brand strategy, which include Tango, Guinness and unilever. Further strong brands are thought to be imminent.

Mechant securities has initiated coverage with a 'buy' recommendation and 324p price target, implying a 47% potential upside.
For the year to April, the analyst has shaded in 19% growth in profits of £6.6m and 16% earnings advance to 39.1p. With sales 16% ahead to £19.9m over the opening 11 weeks of the fiscal year, those numbers look eminently achievable. Debt levels are coming down strongly. Trading on a prospective price/earnings ratio of 5.6 and an unwarranted discount to net assets of £47m or 355p a share.
Earnings quality is improving and the discount to book value looks overdone.

UP 22%

Zetar jumps on takeover offer -UPDATE
By Michael Millar

Mon 08 Oct 2012

Adds broker comment

ZTR - Zetar

Latest Prices
Name Price %
Zetar 289.50p +22.41%

FTSE AIM All-Share 703 -0.47%
Food Producers & Processors 6,117 +0.25%

LONDON (SHARECAST) - Shares in snack foods group Zetar leapt 23 per cent on Monday morning after its management recommended a takeover offer for the firm.

Under the terms of the offer Zetar shareholders will receive 297 pence in cash for each share.

The offer by German food firm Zertus values Zetar at around £42.7m, a premium of 25.6% to its closing share price of 236.5p.

Zetar shareholders who owned shares at the close of play last Friday will also receive the dividend of three pence per share.

Non-Executive Chairman David Williams, said discussions with the Zertus team had been undertaken "in a friendly and courteous manner and this bodes well for our loyal and hard-working executive directors and employees, without whom the business would not be as successful as it is today".

"I firmly believe this is a good offer for both shareholders and employees," he added.

Jörn Riemer, a director of Zertus, called the target firm "a particularly well managed confectionery and snacks business".

"We are impressed by Zetar's proven track record for innovation and brand building and are excited about the prospect of jointly expanding our enlarged portfolio of products to new markets," he said.

This is what analysts at Merchant Securities have to say of the whole matter: "The bid price of 297p per share equates to a historic 2012 Enterprise value/Earnings before taxes, interest, depreciation and amortization (EV/EBITDA) of 6.0x and a forward 2013 EV/EBITDA of 5.1x, broadly in line with its historical average and UK small-mid cap peer group.

We believe the offer is fairly sensible for Zetar shareholders given the fragility surrounding UK consumer sentiment. We do not anticipate a counter bid. The offer confirms our view that the business was undervalued. Zetar's product lines, production and distribution capabilities will complement Zertus."

Zetar's shares were up 23% to 291p at 0930 on Monday.

Another good call DC ,,,,, i remember buying these way back ,only held them for a while .

Thanks jimmy b

Shareholders have voted in favour of the scheme of arrangement, which is expected to become effective on 30 November .



£2.97p cash per share