Rise in revenues and profit for Finsbury Foods
FINSBURY Food Group has announced a rise in revenue and profit. The company, a speciality bakery manufacturer of cake, bread and morning goods for the retail and foodservice channels, announced a 4.7% rise in group revenue in its unaudited interim results compared to the first half of 2018.
The group said profit before tax was up 17.9% to £8.8m, from £7.5m in 2018. It added net debt of £32.6m had decreased by £3.5m.
Among the firms strategic highlights Finsbury Foods listed a new line of Harry Potter cakes, glutenfree cakes and artisan breads. It also said the opening of a new gluten free bakery in Poland helped expand capacity for the continental market.
The UK Bakery division’s headquarters in Cardiff with manufacturing sites in Pontypool, East Kilbride, Hamilton, Salisbury, Sheffield, and Manchester.
Finsbury took over the Pontypool-based Ultrapharm in late 2018. The acquisition was seen as important step to diversify the bakery’s products, particularly in the market of gluten free,
John Duffy, Chief Executive of Finsbury Food Group Plc, said: “The first half was both a period of growth and of successful delivery against our strategic priorities.
“Revenue and profit were up, largely driven by organic performance in UK Bakery as well as new business wins and the first full six-month contribution from our Free From business. We made encouraging progress in the optimisation of our cash flow in the period and reduced our debt levels, and are pleased to announce a further increase in the dividend.
“Moving into the second half, while the macroeconomic pressures affecting the industry look set to continue, our long-term, consistent and disciplined approach to investment and unwavering focus on driving increased productivity and efficiency across the Group means Finsbury is now a much more resilient business and better equipped to weather difficult trading conditions.
“The broad channel, customer and product diversification we now have in the business gives us a solid platform on which to build and we continue to benefit from access to higher growth opportunities such as Free From and consumer niches such as artisan bread.
“Notwithstanding the ongoing market-wide headwinds, there is positive sales momentum in the business and a growing number of exciting opportunities that gives us confidence in Finsbury’s prospects for the full year, which remains in line with expectations.”