FINSBURY FOOD GROUP PLC 
By
Date: | 24 January 2014 |
On behalf of: | Finsbury Food Group plc ('Finsbury', 'the Company' or 'the Group') |
Embargoed until 0700hrs | |
Finsbury Food Group plc
Pre-Close Trading Statement
Finsbury Food Group plc (Aim: FIF), a leading manufacturer of cake and bread bakery goods is today providing an update on trading for the first half of the current financial year, ended 28th December 2013, prior to entering its close period.
The Board expects to report first half profit in line with market expectations. Following the sale of the Free From business in February 2013, continuing first half Group sales revenues are £86.6m, versus £88.2m in the prior year period. The UK Bakery business declined by 2.1%, £1.6m, whilst Lightbody Europe, the Group's 50% owned joint venture business, was flat year on year. Cost inflation in key ingredients such as butter and chocolate combined with general cost inflation continues to keep pressure on margins. The Company has however mitigated this pressure with internal efficiency investment and a cost reduction focus.
The planned cake capital investment programme is progressing well with the new cake slice 'snap pack' packaging format launched and further snacking cake automation investment on track for year end completion. Similarly the Nicolas and Harris bread facility expansion is being commissioned in January 2014. These and future capital investments will underpin further internal efficiency and capacity improvements to support sales growth in the coming years.
The Board remains confident of reporting a year on year improvement in PBT but believes general cost inflation will impact the Group's performance during the second half of the financial year. In reaction to the current trading environment, the Group plans to invest in up-weighted market activities to protect volumes and undertake an overhead reduction programme which will be completed in the second half. The full year benefit of the overhead reduction will be seen in the next financial year.
John Duffy, Chief Executive of Finsbury Food Group plc, commented;
"Whilst the trading environment remains tough in the short term, in line with our stated strategy, our low level of debt and interest cost allows us to make significant investment in our factories and businesses for the future.
"In a transitional year following the sale of the fast growing Free From division and consequent group restructuring and capital investment, I am pleased with the progress made and believe we will enter next fiscal in a stronger position for the eventual improvement in consumer market behaviour ahead."
For further information: | |
Finsbury Food Group plc | www.finsburyfoods.co.uk |
John Duffy (Chief Executive) | 029 20 357 500 |
Stephen Boyd (Finance Director) | |
Cenkos Securities plc | |
Bobbie Hilliam (Corporate Finance) | 020 7397 8900 |
Alex Aylen (Sales) | |
Redleaf Polhill | finsbury@redleafpr.com |
Rebecca Sanders-Hewett/ | 020 7382 4730 |
Jenny Bahr/ Rachael Brown |
Publication quality photographs are available via Redleaf Polhill on the numbers shown above
Notes to Editors:
§ Finsbury Food Group plc (AIM: FIF), is a leading manufacturer of cake, bread and bakery goods. Within its Cake business, the Group's focus is premium and celebration cakes plus low fat cake slices. Its Bread business manufactures artisan and organic bread and also morning goods.
§Finsbury Food Group is the second largest manufacturer of Ambient Packaged Cake (excluding In Store Bakery) in the UK, a market valued at £939m (Source: Kantar Worldpanel Total UK Coverage, January 2014).
§The Group's strategy is to generate returns for shareholders by building a crafted bakery group focused on premium, celebration and well being that delivers for customers and consumers. Finsbury continues to develop its licensed brand portfolio to complement its core retailer brand relationships and improve its understanding of and response to changing consumer needs.
§Whilst the Company sees exciting organic growth opportunities in all its businesses and its short-term focus is on integrating and growing its existing businesses, the aim is to take advantage of the appropriate bolt on acquisitions to drive longer term value as opportunities and circumstance allow.
This information is provided by RNS
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