18 Jul 2016 07:00
Date: | 18 July 2016 |
On behalf of: | Finsbury Food Group plc ('Finsbury', 'the Company' or 'the Group') |
Embargoed until: 0700hrs | |
Finsbury Food Group plc
Pre-Close Trading Statement
This announcement contains inside information
Finsbury Food Group plc (AIM: FIF), a leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and 'out of home eating' foodservice channels, is today providing an update on trading for the full financial year, ended 2 July 2016*, prior to entering its close period.
The Board is pleased to report that, following the positive half year trading performance, strong trading has continued in the second half and the Group is confident of delivering profits in line with market expectations which were upgraded following the strong first half year.
Total Company sales revenues grew to £319.7m, an increase of 24.8% on prior year (for the 52 week period, sales revenues were £313.5m, an increase of 22.4%), following the successful integration of the prior year acquisitions of Fletchers and Johnstone's. This includes like for like growth of £12.8m, an increase of 5.0% versus prior year. The UK Bakery division grew by 3.0% on a like for like basis and the Overseas division, the Group's 50% owned European business, grew by 25.7%. Our sales to the foodservice channel accounted for 21% of total UK Bakery sales revenues and grew by 5.3% on a like for like basis.
The second half performance of the Company benefited from a growth in sales revenues typically ahead of our UK markets, the rate of growth against prior year was lower than the first half performance as we annualize against strong sales in the second half of the prior year.
The significant year on year increase in capital investment, together with ongoing innovation and development of products and a focused people development strategy, positions the Group for further growth organically or via acquisition.
Whilst it is too early to fully understand the impact of the exit of Britain from the EU, the Board believes that as a strong multi-channel business and a large diversified speciality bakery group, it is well equipped to manage the potential effects of this outcome and continue to deliver growth and improved shareholder value over the coming years.
\* The financial year ended 2 July 2016 is a 53 week period, like for like performance excludes week 53 and is calculated using financial data only where there are comparative trading figures for the prior year.
John Duffy, Chief Executive of Finsbury Food Group plc, commented:
"Delivering significant growth across all divisions on a like for like basis is a true achievement and we are very pleased to see our sales revenues ahead of the markets we operate in.
"This growth is underpinned by capital investment and our continued focus on innovation, maintaining our position as one of the UK's largest speciality bakery groups. More than ever we are well placed to continue our solid performance and drive growth."
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) | |
Alex Aylen (Sales) | |
Redleaf Communications | finsbury@redleafpr.com |
Rebecca Sanders-Hewett | 020 7382 4730 |
Sarah Fabietti-Dallison |
Notes to Editors:
· Finsbury Food Group Plc (AIM: FIF) is a leading UK manufacturer of cake and bread bakery goods, supplying a broad range of blue chip customers within both the grocery retail and 'out of home eating' foodservice sectors including major multiples and leading foodservice providers.
· Following the acquisition of the Fletchers Group of bakeries, the Company is one of the largest speciality bakery groups in the UK with annualised sales in 2016 exceeding £300 million.
· The Company's bakery product range is comprehensive and includes:
- Large premium and celebration cakes.
- Small snacking cake formats such as cake slices and bites.
- Artisan, healthy lifestyle and organic breads through to rolls, muffins (sweet and savoury) and morning pastries, all of which are available both fresh and frozen dependent on customer channel requirements.
· The Company is a leading manufacturer and supplier of ambient packaged cake (excluding In Store Bakery) and bread and morning goods in the UK within the grocery retail and the UK foodservice bakery sectors. The ambient cake market (excluding In Store Bakery) is valued at £946 million (Source Symphony IRI 52 w/e 18 June 2016). The annual bread and morning goods market has a value in excess of £4.1 billion (source Kantar Worldpanel). The UK foodservice bread and morning goods sector is worth approximately £800 million per annum and the UK foodservice cake and sweet treats market is worth approximately £500 million per annum.
· The Company comprises a UK Bakery division and an Overseas division:
- UK Bakery has manufacturing sites in Cardiff, Hamilton, East Kilbride, Salisbury, Sheffield, London and Manchester.
- Overseas division comprises the Company's 50% owned subsidiary, Lightbody-Stretz Ltd, which supplies and distributes the Group's UK manufactured products and third party products, primarily to Europe.