STOCKS NEWS EUROPE-Zetar gains after "robust" update

Shares in Zetar (ZTR.L) gain 2.4 percent after the confectionery and snack foods group issues a trading update, which Altium Securities describes as robust, with the broker repeating its "buy" rating on the stock.

Zetar says group sales from continuing operations for the six months ended Oct. 31, 2009 increased by 6 percent to 56.8 million pounds. [ID:nRnsK3074C]

"We think this represents a very robust outcome in a challenging environment, where consumers are demanding both economy lines and promotionally driven purchases," Altium says in a note.

The broker says that due to better working capital controls, in spite of the increase in revenues, net debt declined 2.2 million pounds to 28.3 million pounds year-on-year.

It says this underpins its expectation of year-end borrowings of 13.5 million pounds, which represents gearing of 32 percent.

The broker says the update underpins its FY 2010 adj. pretax profit expectation, and as a result is keeping its 275 pence target price.

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