17 Jul 2017 07:00
Date: | 17 July 2017 |
On behalf of: | Finsbury Food Group plc ('Finsbury', 'the Company' or 'the Group') |
Embargoed until: 0700hrs | |
Finsbury Food Group plc
Pre-Close Trading Statement
This announcement contains inside information
Finsbury Food Group plc (AIM: FIF), a leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and 'out of home eating' foodservice channels, is today providing an update on trading for the full financial year, ended 1 July 2017, prior to entering its close period.
Total Company sales revenues grew to £314.3m, a like for like* increase of 0.3% on the prior year, and the Group is confident of delivering profits in line with market expectations. On a constant currency basis, revenues decreased 1.1% like for like on the prior year.
Against a backdrop of UK retail food market deflation in the period, the UK Bakery division declined by 1.4% on a like for like basis. The decline reduced from 2.9% during H1 2017 to an increase of 0.1% in H2 2017, with the second half benefitting from a growth in sales revenues. Additionally, trading in the UK Bakery division was stronger in the second half of the year against the full financial year ended 1 July 2016 as the Group entered a period of price inflation.
The Overseas division, the Group's 50% owned European business, grew by 17.3% (made up of 2.2% organic growth and 15.1% exchange rate benefit). This positive performance and exchange rate impact mitigates the effect of the Euro on the UK Bakery business, validating the strategic geographic diversification that the Group has implemented.
Ongoing product innovation and improvements in efficiency and productivity, together with the benefits of the Group's capital investment programme, has played an important role in addressing the previously noted industry-wide challenges. As detailed in the Group's interim results, the scale of these challenges has necessitated price recovery and as such the Group has had productive discussions with its customers during the period. The Group continues to monitor and review the need for further action in light of unusual cost spikes, as is currently well documented to be the case with butter.
The Board has built a strong multi-channel business and a large diversified speciality bakery group and 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.
\* The financial year ended 2 July 2016 is a 53-week period, like for like performance excludes week 53.
John Duffy, Chief Executive of Finsbury Food Group plc, commented:
"The hard work undertaken in prior periods has ensured that we have maintained our course, with the benefits of having a diversified business across channels and geography coming to the fore. Considering the pressures the industry faces, we are very pleased to have grown revenue and are confident that the Group is well positioned to maintain its strong market position and continue to deliver shareholder returns."
For further information: | |
Finsbury Food Group plc | www.finsburyfoods.co.uk |
John Duffy (Chief Executive) Stephen Boyd (Finance Director) | 029 20 357 500 |
Cenkos Securities plc | |
Bobbie Hilliam (Corporate Finance) Alex Aylen (Sales) | |
Redleaf Communications | finsbury@redleafpr.com |
Rebecca Sanders-Hewett Elisabeth Cowell David Ison Sam Modlin | 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 Oversees 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 comprise, 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.