18 Jan 2018 07:00
Date: | 18 January 2018 |
On behalf of: | Finsbury Food Group plc ('Finsbury', 'the Company' or 'the Group') |
For immediate release | |
Finsbury Food Group plc
Pre-Close Trading Statement
Finsbury Food Group Plc (AIM: FIF), a leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and foodservice channels, announces that it has performed in line with management expectations in today's update on trading for the six months ended 30 December 2017 ("H1").
Total Group sales revenues, including the discontinued Grain D'Or business, were £157.8m during H1, representing a 0.7% increase in comparison to the equivalent prior year period.
Sales revenues attributed to the continuing businesses grew by 2.5% to £144.8m, with the UK Bakery division growing by 3.2% and the Overseas division, the Group's 50% owned European business, declining by 2.1%. This demonstrates the positive impact of the Group's strategic diversification. These businesses now represent the Group's core operations on entering the second half of the Group's financial year and notably, this growth was achieved even with a slightly reduced range of Christmas products. With this in mind, the Board believes that its activities during the period position the Group well for a solid performance for the rest of the financial year and beyond.
During the period, the Group maintained its long-term focus on upholding value for consumers and cost competitiveness for customers by investing a further £4.9m from its strong cashflow in initiatives which drive efficiency and productivity. Given the previously reported headwinds which are facing the industry, this proven strategy is focused on offsetting increases in the Group's cost base.
The Board has built the Group into a diverse multi-channel speciality bakery group. Following the exceptional growth and diversification over the prior years, the business is well placed to maintain its position, despite the market conditions. As such, the Board believes it is well equipped to continue to deliver growth and improved shareholder value over the coming years.
This announcement contains inside information.
ENDS
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)
Redleaf Communications finsbury@redleafpr.com
Elisabeth Cowell
Ian Silvera
Fiona Norman
020 7382 4730
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.
· The Company is one of the largest speciality bakery groups in the UK and, with its Overseas division, has sales in the financial year ending 1 July 2017 exceeding £300m.
· The Company's bakery product range is comprehensive and includes:
o Large premium and celebration cakes.
o Small snacking cake formats such as cake slices and bites.
o 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 one of the largest ambient cake manufacturers in the UK, a market valued at over £938 million (source: Symphony IRI, 52 w/e 19th August 2017). The annual retail bread and morning goods market has a value of £4.0 billion (source: Kantar Worldpanel 52 weeks to 16th July 2017). The UK foodservice bread and morning goods bakery sector is worth approximately £836 million per annum. The UK foodservice cake and sweet treat bakery sector is worth approximately £494 million per annum (UK foodservice data derived from NPD Crest 52 w/e 30th June 2017).
· The Company comprises a UK Bakery division and an Overseas division:
o The UK Bakery division has manufacturing sites in Cardiff, East Kilbride, Hamilton, Salisbury, Sheffield and Manchester.
o The Overseas division comprises the Company's 50% owned company, Lightbody Stretz Ltd, which supplies and distributes the Group's UK-manufactured products and third party products, primarily to Europe.