Transformational Year For Finsbury Food Group
Finsbury Food Group, a leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and food service channels, has reported a 61% increase in adjusted operating profit to £12.4 million, up 20% on a like-for-like basis, on group revenue ahead by 45.8% to £256.2 million for year ended 27 June 2015. Group operating profit margin improved from 4.4% to 4.8% and profit before tax rose 76% to £11.4 million.
The increase in operating profit margin reflected the benefits of record capital investment of £7.4 million to ensure long-term competitiveness, continuous improvement, business improvement initiatives and overhead management. Organic sales growth of 6.1% versus prior year was driven by market share growth in the UK cake business. Food service sales growth was also ahead of market growth with 20 new products launched during the year across five ranges.
Finsbury acquired Fletchers Group during the year for £56 million from private equity firm Vision Capital, to achieve a broader spread of customers across the food retail and food service channels in cake, bread and morning goods businesses. It also acquired the trade and assets of Johnstone’s, augmenting its food service offering. The enlarged business is now one of the largest speciality bakery groups in the UK with annualised revenues of approximately £300 million.
John Duffy, chief executive of Finsbury Food Group, comments: “The past year has truly been transformational. Building on our organic growth, the acquisitions in the period have diversified the group into new channels and widened our customer base. In concurrence, we have invested significantly in the business to ensure long term competitiveness.
He adds: “With annualised turnover of close to £300 million, Finsbury is a diverse bakery group with an ambition to increase shareholder value, identify acquisition opportunities and deliver further growth. Even in the value conscious consumer markets we are operating in, our solid strategy and unwavering vision allows us to look forward to the year ahead with confidence.”
