Finsbury Food to ‘outperform profit expectations’

By Michael Stones

- Last updated on GMT

Finsbury's profit will 'outperform expectations', said the manufacturer
Finsbury's profit will 'outperform expectations', said the manufacturer

Related tags Generally accepted accounting principles Uk

Finsbury Food Group predicts its profit performance will “outperform expectations”, according to its latest financial update on trading for the full-year to June 27.

The upbeat assessment followed positive half-year trading performance, said the specialty bakery manufacturer of cake, bread and morning goods for both the retail and foodservice channels. 

“Strong trading has continued in the second half and the group will outperform its current EBITDA​ [earnings before interest, tax, depreciation and amortisation] and profit expectations,”​ said the business.

Total sales revenues climbed

Total sales revenues climbed to £256.2M, an increase of 45.8% on the previous year. The result included organic growth – aside from acquisition-related rises – of £10.7M, a rise of 6.1% compared with the previous year. The gains were made mainly in the manufacturer’s Cake division.

The Fletchers acquisition contributed £69.3M of additional sales revenue. The deal, completed the deal at the end of October 2014, was said to have delivered synergy benefits earlier than expected.

Performance was further complemented by capital expenditure, depreciation, debt and associated financing costs being lower than forecast.

Overall the UK Bakery division sales grew by 52.2%.

Johnstones Just Dessert

The acquisition of Johnstones Just Desserts Limited​ – a cake supplier to the national coffee shop chains – was too late to contribute to the latest figures, having been completed on June 16.

Finsbury – at a glance

  • Total sales revenues reached £256.2M, up 45.8%
  • Organic growth of £10.7M, up 6.1%
  • Fletchers contributed £69.3M of extra sales revenue

Finsbury’s Overseas division, a 50% jointly-owned European  business, grew sales by 1% versus the prior year in sterling terms.

Finsbury Food Group chief executive John Duffy said the firm’s growth was being driven both organically and through acquisition. “Our EBITDA and profit outperformance illustrates that we have the right strategy in place, particularly in the continued challenging market conditions,” said Duffy.

“As one of the largest speciality bakery groups in the UK, we believe we are well positioned to continue to deliver against our strategy and are confident that the business, with our latest acquisitions, will drive group growth and shareholder value.”

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