Thought I would start a discussion about Finsbury Foods as its share price performance has me a bit confounded. As background, it's part of my BLASTIG (Blame Stockpedia/I'm a Genius) Portfolio which I stared back in mid-Feb to help justify my investment in the Stocko subscription. Good news on that front is that as we speak it is 30% up on the all-share performance – the “I’m a Genius” part of the equation is winning so far!

Finsbury Food (LON:FIF) is part of the Portfolio and is definitely the dunce of a bright class, but I can’t quite understand why.

Its as Green as they get on the Stock Rank and even greener on my preferred QV Rank (92 & 99) currently.

It dropped like a stone in March like many other shares – but has stayed there

It’s in the Food Business 75% to Retailers 25% Food Service and its performance in its latest update had revenue down just under 3% for the year. So hardly a disaster and pretty safe sector as they go.

Trading update July 15th (Paul didn’t comment as it was released on a very busy announcement day - do companies do this to avoid his eagle eye?).

Resilient overall performance with revenues of £306.3m

• Steady monthly improvement during Q4 following significant reduction immediately after lockdown

• The second half sales (in food service) were a combination of good momentum and strong trading in January and February in line with market expectations, followed by significantly weaker trading at the outbreak of the pandemic at the end of March and depressed but progressively improving sales through April, May and June (down 24%, 19% and 15% on last year respectively).

• Continued strong cash generation resulting in significant debt reduction with period end net debt of c.£27m

The balance sheet seems ok to me – sure it has a £11m pension deficit but this is hardly huge and was there when the share was much higher.

The interim dividend was suspended but, based on the above, I can see that coming back.

My suspicion is that eat out to help out is going to provide a serious shot in the arm in the next quarter.

Am I missing something or is the verdict that I need to be patient?

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