An increasing focus on value will stand Greggs in good stead for 2012, according to a City analyst.

Wayne Collins, of Collins Stewart, said the company’s preliminary results, which were revealed yesterday and saw the leading BB75 baker unveil a pre-tax profit of £53.1m, were broadly in line with expectations.

He warned the year ahead would be a difficult one for consumers – but added Greggs was “doing all it can against this tough backdrop”.

Collins said: “An increased focus on value offers (meal deals and promotional offers) should deliver further progress, and better leverage the investment in the supply chain and the c.5% estate expansion between 2011-2015E. FY2012E should see improving sentiment from the Diamond Jubilee, the London Olympics and the Euro 2012 football championship.”

Collins Stewart rates the stock as a hold and has a target price of 520p.

Despite its enthusiasm for the company, the City as a whole was less enamoured with the performance of Greggs. Its shares dipped slightly yesterday by 10p to 548p.