Finsbury Food Group PLC Pre-Close Trading Statement (1839L)
17 July 2017 - 4:00PM
UK Regulatory
TIDMFIF
RNS Number : 1839L
Finsbury Food Group PLC
17 July 2017
Date: 17 July 2017
On behalf Finsbury Food Group plc ('Finsbury',
of: '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 GBP314.3m, 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 GBP300 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 GBP936m (Source Symphony IRI, 52
w/e 24th June 2017). The annual retail bread and morning goods
market has a value of GBP3.6 billion (source Kantar Worldpanel 52
weeks to 29 January 2017). The UK foodservice bread and morning
goods bakery sector is worth approximately GBP800 million per
annum. The UK foodservice cake and sweet treat bakery sector is
worth approximately GBP465m per annum (UK foodservice data derived
from NPD Crest 52 w/e 31(st) 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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