Full-year Finsbury results show ‘substantial progress’
Graham Jones, Panmure’s executive director of equity research, said: “This growth, in difficult trading conditions, is, in our view, a creditable performance, as is the cash generation, which, for a second year, came in stronger than expected.”
The UK’s second largest supermarket cake supplier behind Premier Foods posted a rise in pre-tax profit of 8.3% to £5.8M, up from £5.4M the previous year.
Group revenue was also up 12.6% to £189.6M compared with £168.3M last year.
EBITA (earnings before interest and taxes and amortisation) climbed 6.4% to £8.5M. Margins fell from 4.8% to 4.5% reflecting the steep rise in commodity costs.
Cake division
Despite these concerns, the company saw sales in its cake division rise by 12.1% to £139.6M, up from £124.6M last year. Growth was split evenly between the UK and the Lightbody Europe subsidiary in France.
Bread and Free From sales also rose by 14.2% to £50M compared with £43.7M the previous year. “The relaunch of Vogels and Cranks in October 2010 was driving sales of both brands up by more than 30%,” said Jones.
The company cited a combination of own-branded retailer offerings and increases in promotional deals and support as a key reason behind the performance growth in the cake division.
John Duffy, the firm’s chief executive, said: “I am delighted that we have succeeded in steering the group through another demanding year. The reality is that testing times still lie in wait.”
Under threat
Martin Lightbody, non executive chairman, added: “Consumer confidence remains fragile, disposable incomes are under threat, public sector cuts have yet to be fully implemented – all factors potentially suppressing demand still further.
The reality is that the next 12 months are likely to prove testing but our track record in resisting recessionary influences has been exemplary thus far.”
Jones said: “Trading conditions clearly remain difficult, with continued cost inflation, weak consumer sentiment, and retailers remaining focused on providing best value to their customers. We are trimming our EPS [earnings per share] forecast for 2012 [estimated] from 8.3p to 7.7p, but this still represents a healthy 9% growth and with balance sheet gearing starting to look much better…”
