22 Nov 2017 07:00
Date: 22 November 2017
On behalf of: Finsbury Food Group plc ('Finsbury', 'the Company' or 'the Group')
For immediate release
Finsbury Food Group plc
Trading Update
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 pleased to announce that trading for the first four months of the new financial year is in line with expectations.
Total Group sales revenues grew by 4% to £105.5 million during the first four months of the 2017/2018 financial year. This is a pleasing performance which shows resilience and recognises that the UK retail food market has recently transitioned from a deflationary to an inflationary environment.
Additionally, Finsbury continues to benefit from the geographically diverse nature of its operations. The UK Bakery division's sales increased by 5% in comparison to the corresponding 2016/2017 period, while the Overseas division, the Group's 50% owned European business, declined by 3.8% when compared to the corresponding 2016/2017 period.
The multi-channel Group has a strong track record of successfully navigating the previously reported head-winds which continue to face the entire industry. This resilience has been achieved by investing in initiatives which drive efficiency and productivity and therefore offset increases in the Group's cost base to ensure that Finsbury is well positioned to maintain value for consumers and to remain a competitive, low cost producer for customers.
Having delivered strong cashflow during the period, the Group is ideally positioned to maintain this focus, and the Board is therefore confident that Finsbury is well-equipped to deliver growth and shareholder value going forward.
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.