FIF.L Regulatory News (FIF)

Finsbury Food Group plc

Trading Update

Finsbury Food Group plc (AIM: FIF), a leading manufacturer of cake, bread and morning goods, is today holding its Annual General Meeting. At the meeting the Chairman will issue the following update on trading.

In the first four months of the new financial year, total Group sales revenues continued to grow strongly to £68.3m. This represents organic growth of just over £10m, an increase of 17% versus prior year.

The UK Cake, Bread and Free From businesses all grew strongly delivering just over half the total Group growth whilst Lightbody Europe (LBE), the Group's 50% owned joint venture export business, provided the balance. Year on year growth rates are expected to moderate, once we reach the anniversary of last year's new product launches and increased promotional activity levels.

The operating environment remains particularly challenging. Shopper behaviour continues to be affected by the economic uncertainty, and we have experienced ingredient and input cost inflation year on year. Higher sales, resulting from volume growth and price increases, assisted by further internal efficiency initiatives, have partially offset this cost inflation, although operating margins are lower year on year.

John Duffy, Chief Executive commented:

"The Group has continued to grow and improve despite this most difficult of trading environments, which is encouraging. We continue to innovate and adapt our quality product ranges so that they remain affordable for shoppers and consequently, their popularity has proved enduring. Whilst a difficult balancing act, the management and staff continue to improve and optimise the Group's resilient performance despite these headwinds."

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Notes to Editors:

§ Finsbury Food Group plc (AIM: FIF), is a leading manufacturer of premium and celebration cakes, low fat cake slices and artisan, organic and gluten free bread and 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 £886m (Source: Kantar Worldpanel Total UK Coverage, 52 we 10th July 2011). 

§ The Group is also the market leader in the supply of gluten free baked goods to the UK's multiple grocers

§ 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