23 Aug 2017 07:00
Date: | 23 August 2017 |
On behalf of: | Finsbury Food Group Plc ('Finsbury', 'the Company' or 'the Group') |
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Finsbury Food Group Plc
Proposed closure of Grain D'Or business
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, is proposing to close its Grain D'Or business. Grain D'Or is a provider of premium baked goods for the UK pastry sector, based in London. The Company will be entering into a formal consultation period with circa 250 employees concerning the proposal.
The Company has proposed the closure of Grain D'Or as the business has been historically loss making. In recent years, the Company has implemented a range of initiatives to improve the business including strict cost controls and introducing new working practices. Despite this, during the 12 months to 1 July 2017, Grain D'Or generated £28.5 million in revenue but produced an overall operating loss.
Finsbury is a strong multi-channel business and a large diversified speciality bakery group. As outlined in its recent trading update, on 17 July 2017, the Group is performing well. The Board believes that despite the current pressures on the industry, it is well equipped to maintain its market leading position and continue to deliver growth and improved shareholder value over the period ahead.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
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For further information: |
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Finsbury Food Group Plc | www.finsburyfoods.co.uk | ||
John Duffy (Chief Executive) | 029 20 357 500 | ||
Stephen Boyd (Finance Director) |
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Cenkos Securities plc |
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Bobbie Hilliam (Corporate Finance) |
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Redleaf Communications | finsbury@redleafpr.com | ||
Elisabeth Cowell | 020 7382 4730 | ||
Sam Modlin |
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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 annualised sales in 2017 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 one of the largest ambient cake manufacturers in the UK, a market valued at over £936m (Source Symphony IRI, 52 w/e 24th June 2017). The annual retail bread and morning goods market has a value of £3.6 billion (source Kantar Worldpanel 52 weeks to 29 January 2017). The UK foodservice bread and morning goods bakery sector is worth approximately £800 million per annum. The UK foodservice cake and sweet treat bakery sector is worth approximately £465m per annum (UK foodservice data derived from NPD Crest 52 w/e 31st December 2016).
▪ The Company comprises a UK Bakery division and an Overseas division:
- UK Bakery has manufacturing sites in Cardiff, East Kilbride, Hamilton, Twechar, Salisbury, Sheffield, London and Manchester.
- The overseas sector 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.