Ice Cream Maker Eyes Acquisitions

News:

ICE cream maker Allied Brands Ltd, which oversees the Baskin-Robbins franchise across Australia, remains focussed on acquisitions despite missing out on buying Wendy’s Ice Cream.

Allied Brands, which reported a $2.52 million net loss for 2005/06, partly driven by the write-off of costs from the attempted takeover of Wendy’s, said it is on track to report a profit this financial year.

Managing director Peter Graham told shareholders at today’s annual general meeting that the company is looking to acquire a moderate and complementary business.

“The target must have strong cash flow and not be capital intensive and must be either franchised or franchise-able and be able to be developed to in excess of 150 outlets,” Mr Graham said.

Allied Brands said that to the end of October the group is ahead of its $800,000 net profit forecast.

Mr Graham said four new stores are under construction with the aim to have 79 stores open by Christmas and 94 by the end of next year.