FDBusiness.com

British baker Finsbury Food Group plans to use the net proceeds from a £3.9 million share placement to fund capital investment projects within its UK cake business. These projects will further develop the company’s product portfolio capability utilising proven technologies and automation, whilst also improving production efficiencies thereby reducing the cost of manufacture. Projects will be implemented in a phased fashion over the course of the next two years to avoid any exceptional charges. Finsbury expects the planned investment will deliver a final annualised benefit of some £2.0 million.

Finsbury is the second largest manufacturer of ambient packaged cake (excluding in-store bakery) in the K. The group is also the market leader in the supply of gluten free baked goods to the K’s multiple grocers.

Finsbury has reported that the first three months of its new financial year have seen continued strong sales growth in its Bread and Free From Division offset by a small decline in the Cake division, mainly as a result of lower export sales. A stronger operational performance, including previous pricing and efficiency improvements, means that trading is in line with expectations for the year.