(Alliance News) - Finsbury Food Group PLC on Tuesday said revenue and profit both increased in its latest fiscal year, as preparations for its GBP143 million acquisition by DBAY Advisors Ltd continued.
The Cardiff-based baked goods manufacturer, which supplies grocery retail and foodservice providers, said pretax profit for the year ended July 1 was GBP16.2 million, up 13% from GBP14.3 million the prior year. Adjusted pretax profit meanwhile increased 4.2% to GBP17.7 million from GBP17.0 million.
Revenue meanwhile increased 16% to GBP413.7 million from GBP356.8 million. Finsbury Foods said this was due to a 1.7% volume uplift, including from its acquisition of Scottish meringue makes Lees Foods Ltd, and a price uplift of 14.3%.
"To have delivered revenue performance, which is in line with market expectations, in light of the significant macro-economic challenges that we have had to overcome, is testament to our resilient business model, ability to align ourselves with consumer trends and the dedication of our teams," commented Chief Executive John Duffy.
He added that Lees "consolidated our position in the sweet treats sector and has been performing in line with our expectations."
Finsbury Foods expects to pay a final dividend of 1.73 pence per share for financial 2023, up from 1.67p the year before. This will take the full-year total to 2.60p per share, up from 2.50p.
Finsbury noted the impact of inflation, but said it was able to mitigate this through "pricing, purchasing and cost out strategies".
In the meantime, Finsbury said preparations continue for its impending acquisition by DBAY Advisors Ltd through investment funds. Finsbury Foods remains in an 'offer period' and said it expects a document containing full details of the scheme of arrangement to be sent to shareholders soon.
Finsbury Foods announced last week that it had accepted the Isle of Man-based asset manager's GBP143.4 million takeover offer.
Looking ahead, Duffy said the firm expects "to have to navigate further macroeconomic challenges over the course of the current financial year," despite inflationary pressures easing somewhat.
Finsbury Food shares were up 0.1% at 109.58 pence in London on Tuesday afternoon.
By Emma Curzon, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
