Pre-Close Trading Statement and Notice of Results

RNS Number : 6180L

Finsbury Food Group PLC

14 January 2021

 

Date:	14 January 2021
On behalf of:	Finsbury Food Group plc ('Finsbury', 'the Company' or 'the Group')
For immediate release

Finsbury Food Group plc

Pre-Close Trading Statement and Notice of Results

Finsbury Food Group plc (AIM: FIF), a leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and foodservice channels, announces an update on trading for the six months ended 26 December 2020 ("H1").

The Group delivered a resilient trading performance against a continued challenging backdrop with total sales of £152.9m in H1, representing only a 4.1% decrease against a strong comparative period in 2019. This continues the strong progressive improvement since the initial lockdown in March 2020, where post lockdown actual sales from March to June, the final quarter of the 2020 financial year, were 18.9% lower than the equivalent period the year before.

This performance was driven by a positive retail channel performance (+1.7%) in the Group's core UK Bakery division and Overseas (+0.6%), offset by the expected weaker trading in UK foodservice (-27.4%), which continues to be impacted by Government restrictions tightening over the last few months.

Continued strong cash generation and the previously referenced actions to control cash and costs across the Group have resulted in further debt reduction with period end net bank debt of £21.5m, down £5.0m from the year end.

Notwithstanding the challenges that remain as a result of the pandemic, given the Group's resilient performance in the first half, the ongoing operational improvement initiatives, and especially the avoidance of a no deal Brexit outcome, the Board remains confident in delivering a full year performance in line with expectations.

Notice of results

The Group will announce its Interim Results, for the six months ended 26 December 2020, on Monday 22 February 2021.

Analysts wishing to attend the webinar should contact Alma PR via [e-mail].

Contact:

Finsbury Food Group    John Duffy (Chief Executive) Steve Boyd (Finance Director)	www.finsburyfoods.co.uk	029 20 357 500
Panmure Gordon Oliver Cardigan (Corporate Finance) Atholl Tweedie Joanna Langley Erik Anderson (Corporate Broking)		020 7886 2500
Alma PR    Rebecca Sanders-Hewett Sam Modlin David Ison	[e-mail]	020 3405 0205

Notes to editors:

· Finsbury Food Group Plc (AIM: FIF) is a leading UK manufacturer of cake and bread bakery goods, supplying a broad range of blue chip customers within both the grocery retail and 'out of home eating' foodservice sectors including major multiples and leading foodservice providers.

· The Company is one of the largest speciality bakery groups in the UK and, with its Overseas division, has sales in the financial year ending 27 June 2020 exceeding £306m.

· The Company's bakery product range is comprehensive and includes:

· Large premium and celebration cakes.

· Small snacking cake formats such as cake slices and bites.

· Artisan, healthy lifestyle and organic breads through to rolls, muffins (sweet and savoury) and morning pastries, all of which are available both fresh and frozen dependent on customer channel requirements.

· Gluten Free bread, morning goods and cake ranges.

· The Company is one of the largest ambient cake manufacturers in the UK, a market valued at over £964 million (source: IRI 52 w/e 5th December 2020). The retail bread and morning goods market has a value of £5 billion (source: Kantar Worldpanel 52 w/e 27th December 2020). The retail Free From cake market is valued at £52 million (source: Kantar Worldpanel 52 w/e 27th December 2020). The retail Free From bread & morning goods market is valued at £146 million (source: Kantar Worldpanel 52 w/e 27th December 2020). The UK Out of Home Foodservice Bakery sector is worth approximately £740bn per annum (source: UK foodservice data derived from MCA data for 52 weeks to 31st March 2020).The Company comprises a core UK Bakery division and an Overseas division:

· The UK Bakery division has manufacturing sites in Cardiff, East Kilbride, Hamilton, Salisbury, Sheffield, Manchester, and Pontypool.

· The Overseas division comprises the Company's 50% owned company, Lightbody Stretz Ltd, which supplies and distributes the Group's UK-manufactured products and third party products, primarily to Europe, and the Company's manufacturing facilities in Rybarzowice and Zywiec in Poland.

 

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