REG - Finsbury Food Group - Pre-Close Trading Statement <Origin Href="QuoteRef">FIF.L</Origin>

Finsbury FoodAnnouncement

06/09/2014 16:46

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RNS Number : 5386M
Finsbury Food Group PLC
17 July 2014 
 
 Date:                    17 July 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 full financial
year, ended the 28th June 2014. 
 
The Board expects to report full year profit ahead of market expectations. The
profit levels, which are ahead of the prior year, are as a result of the
successful implementation of the activities outlined at the half year update.
These include actions taken to stimulate sales, via additional market
activity, and in addition, a reduction in costs via the benefits from capital
investment and an overhead reduction programme implemented early in the second
half. These actions have also mitigated against ongoing cost inflation. 
 
Following the sale of the Free From business in February 2013, continuing full
year Group sales revenues are £175.7m, versus £176.6m in the prior year.
Second half growth in the UK Bakery business reversed the first half decline
and sales for the year were broadly flat at £153.7m. Sales in Lightbody
Europe, the Group's 50% owned European business have declined by 1.2% for the
full year to £22.0 million, however this sales decline is accompanied by a
favourable profit dynamic with a shift to higher margin business. 
 
In line with our stated strategy, we have taken advantage of our strong
balance sheet to double capital investment spend to over £6m in the year to
underpin future growth via new capacity and innovation whilst also improving
productivity and competitiveness. Within the UK Bakery division, cake capital
investment projects successfully completed in the year include the new single
serve cake slice 'snap pack' line as well as the largest cake bites robotic
picking installation in the world. The Nicolas and Harris speciality bread
facility expansion, delivering 60% additional space, has also been
successfully commissioned and is now fully operational. 
 
The Board will be recommending an increased final dividend of 0.75p giving a
total dividend payment of 1p for the year as compared to 0.75p last year. 
 
John Duffy, Chief Executive of Finsbury Food Group plc, commented; 
 
"Our continued capital investment programme is heralding positive signs and we
are encouraged by the contribution that this has made. Although cost inflation
keeps margins under pressure, the strategies we have in place have mitigated
against this and with more favourable profit dynamics; we are well placed to
take advantage of the market as it improves." 
 
 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 £924m (Source:
Symphony IRI w/e 21 June 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
The company news service from the London Stock Exchange