Finsbury on look-out for innovative bakery firms

Finsbury Food Group has unveiled a £10m war chest to spend on acquisitions in premium cakes and speciality breads .

The chief executive Dave Brooks said: “We’re looking for UK businesses selling innovative, niche products in the bread and cakes sector to the major multiples. We are also looking for management teams that can be incentivised and developed. It’s not a slash and burn strategy to consolidate businesses into our existing plants.”

Finsbury, which comprises Memory Lane Cakes in Cardiff and craft baker Nicholas & Harris in Salisbury, makes cakes, morning goods, artisan breads and organic loaves. The two sites, which turned over £59.3m in the year to June 30 (1% down on the previous year), could handle about £80m of business, said Brooks. “Turnover is flat because we exited £8-10m of low-margin, own-label business,” he added. Pre-tax profit before exceptional costs rose from £0.2m to £1.5m.

Memory Lane is the exclusive producer of Nestlé branded cakes and Nicholas & Harris has a three-year licensing deal to bake and sell Village Bakery organic loaves.

Mike Woods joins Memory Lane as md on November 1, replacing Phil Batchelor, who becomes group commercial director.