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Finsbury Food Group (FIF)

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Finsbury Food profit hit by Grain D'Or closure

17 Sep 18

LONDON (ShareCast) - (Sharecast News) - Finsbury Food Group posted a drop in full-year pre-tax profit on Monday on the back of costs related to the closure of its loss-making London bakery.
In the year to 30 June, statutory pre-tax profit fell 65.7% to 4.5m, while revenue was down 3.4% to 303.6m, reflecting one-off costs of the closure of the Grain D'Or factory.

The company pointed to costs of just over 13m, most of which relate to the closure of the bakery. Excluding those costs, pre-tax profit was up 4% to 17.2m.

Finsbury said the escalating price of butter, which is now triple what it was just a few years ago, led to uncompetitive pricing, lost contracts and widening financial losses at Grain D'Or.

"With the losses caused by the butter increase, we had to change our commercial plans. This precipitated the difficult decision to close the business in the first half, following extensive employee consultation," it said.

On a like-for-like basis, group revenue rose 2.4% in the year to 290.2m, while the dividend was lifted 10% to 3.3p a share.

Chief executive John Duffy said: "Our performance over the period has further illustrated the group's resilience and our ability to deliver against our strategic priorities, ultimately allowing us to grow like for like sales and profit year on year, reduce our debt further after significant investment, and continue to grow the dividend. The ongoing capital investment programme and relentless efficiency focus of recent years has enabled us to not only cope with this challenging market environment but also maintain our margin.

"We are confident that we are well positioned to deliver on our strategic objectives and capitalise on growth opportunities both organically and through future M&A."

At 0930 BST, the shares were down 0.8% to 123p.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.


Market Data

Currency UK Pounds
Price 100.50p
Change Today 0.000p
52 Week High 104.00p
52 Week Low 60.00p
Volume 100,636
Shares Issued 130.38m
Market Cap 131.04m


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