News Column

Finsbury Food Group Expects Profit To Beat Market Expectations

July 17, 2014

Samuel Agini

LONDON (Alliance News) - Finsbury Food Group PLC Thursday said it expects to report full-year profit head of market expectations and ahead of last year's figures, due to its actions to stimulate sales and reduce costs.

Finsbury Food Group shares were Thursday quoted up 9.7% at 59.80 pence.

In an update for the financial year ended June 28, the group said that continuing sales revenue fell to GBP175.7 million, against GBP176.6 million in the prior year, following the sale of its 'Free From' business in February 2013.

It said that second-half growth in its core UK Bakery business reversed the first half decline, adding that sales for the year were broadly flat at GBP153.7 million. Sales in Lightbody Europe, the group's 50% owned European business, declined by 1.2% for the full year to GBP22.0 million, it said, but added that the decline was more than offset by a shift to higher-margin business, or a "favourable profit dynamic".

Finsbury Food Group also said that it will recommend an increased final dividend of 0.75 pence, giving a total dividend payment of 1.00p for the year, compared with 0.75p last year.

"Our continued capital investment programme is heralding positive signs, and we are encouraged by the contribution that this has made. Although cost inflation keeps margins under pressure, the strategies we have in place have mitigated against this and with more favourable profit dynamics. We are well placed to take advantage of the market as it improves," Chief Executive John Duffy said in a statement.

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Source: Alliance News

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