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RNS Number : 4525F
Finsbury Food Group PLC
15 July 2019
Date: 15 July 2019
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, is today providing an update on
trading for the full financial year, ended 29 June 2019, prior to
entering its close period.
On a like for like* basis, Group sales revenue increased 3.1% to
GBP299.3m, with sales in the second half increasing 5.7% against
the equivalent period in the prior year. The stronger performance
in the second half was driven by organic growth, price recovery and
the previously communicated new business wins. Including closed and
acquired businesses, Group sales increased by 3.8% to GBP315.3m,
with sales in the second half increasing by 11.7%.
In the Group's core division, UK Bakery, like for like sales
grew by 4.7%, which is ahead of the wider market and was achieved
despite the ongoing malaise in consumer confidence and the broader
macro environment. The Group's Overseas division declined by 9.8%
on a like for like basis but grew by 13.2% when including the
acquired Ultrapharm business.
The Group is confident of delivering profits in line with market
expectations for the full financial year ended 29 June 2019.
The Group has invested in new capacity in its Free From bakery
manufacturer, Ultrapharm. A new bakery in Poland has been
commissioned and is nearly complete, alongside investment in
additional resources and skills to deliver a stronger platform for
anticipated future growth.
Whilst elements of cost inflation are moderating following
spikes in recent years, inflationary pressures remain. As a diverse
multi-channel speciality bakery group with an ongoing investment
programme, Finsbury is well placed to continue to drive efficiency,
deliver innovation and maintain its leading position in the market,
despite the wider market conditions.
*like for like revenue is the revenue from operations excluding
the revenue from the closed bakeries and acquired businesses.
John Duffy, Chief Executive of Finsbury Food Group plc,
commented:
"We have navigated through an intense period of cost inflation
and broader macro issues, and as such, we are very pleased to be
reporting a strong return to growth in the second half, delivering
a performance that is in line with market expectations.
We look forward to reaping the benefits of the investment in
Ultrapharm, an acquisition that has further diversified the Group
into higher growth markets. As a focused and diversified Group, we
remain optimistic about the growth prospects ahead."
ENDS
Contact:
Finsbury Food Group
John Duffy (Chief
Executive)
Steve Boyd (Finance
Director) www.finsburyfoods.co.uk 029 20 357 500
Cenkos Securities
Max Hartley
(Corporate Finance)
Alma PR
Rebecca Sanders-Hewett
Sam Modlin
Hilary Buchanan finsbury@almapr.co.uk 020 3405 0205
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 30 June 2018 exceeding GBP300m.
-- 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.
o Gluten Free bread, morning goods and cake ranges.
-- The Company is one of the largest ambient cake manufacturers
in the UK, a market valued at over GBP965 million (source: IRI, 52
w/e 22(nd) June 2019). The retail bread and morning goods market
has a value of GBP4.5 billion (source: Kantar Worldpanel 52 w/e
21(st) April 2019). The retail Free From Cake market is valued at
GBP49.5 million (source: Kantar Worldpanel 52 w/e 24(th) March
2019). The retail Free From bread & morning goods market is
valued at GBP125.3 million (source: Kantar Worldpanel 52 w/e 21(st)
April 2019). The UK Out of Home sector Foodservice Bakery sector is
worth approximately GBP746 million per annum (source: derived from
MCA data for 52 weeks to 31(st) March 2019). The UK foodservice
cake and sweet morning goods bakery sector is worth approximately
GBP917 million per annum (UK foodservice data derived from MCA data
for 52 weeks to 31(st) March 2019).
-- The Company comprises a core 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.
-- Since the year end date of 30th June 2018, the Company
completed the acquisition of Free From baker Ultrapharm, giving the
Group a significant opportunity to access an exciting and high
growth marketplace and manufacturing facilities in Pontypool in the
UK and in Zywiec, Poland.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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