Amendment and extension of bank facilities

RNS Number : 7122F

Finsbury Food Group PLC

23 February 2018

 

Date:	23 February 2018
On behalf of:	Finsbury Food Group Plc ('Finsbury', 'the Company' or 'the Group')
Embargoed until:	0700hrs

Finsbury Food Group Plc

Amendment and extension of bank facilities

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, is pleased to announce that it has refinanced its current debt facilities. The new facility is a £45m revolving credit facility provided by a club of three banks - HSBC, Rabo Bank and RBS. The facility is on improved terms, is available for five years and also includes scope for the facility to be increased by up to a further £45m.

The new facility and the potential for it to be increased further provides increased capacity for the Group to explore future growth opportunities and support its long-term investment strategy.

Steve Boyd, Group Finance Director of Finsbury Food Group Plc, said:

"We are delighted with this successful outcome and this revised facility, with significant headroom, gives us greater flexibility and means we are better equipped to deliver growth and shareholder value going forward."

For further information:

Finsbury Food Group                       John Duffy (Chief Executive) Steve Boyd (Finance Director)	www.finsburyfoods.co.uk	029 20 357 500
Cenkos Securities Bobbie Hilliam (Corporate Finance)
Alma PR                                          Rebecca Sanders-Hewett Sam Modlin	[e-mail]	0203 865 4219

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 1 July 2017 exceeding £300m.

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

o  Large premium and celebration cakes.

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

o  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.

·      The Company is one of the largest ambient cake manufacturers in the UK, a market valued at over £944 million (source: Symphony IRI, 52 w/e 6th January 2018). The annual retail bread and morning goods market has a value of £3.8 billion (source: Kantar Worldpanel 52 weeks to 31st December 2017). The UK foodservice bread and morning goods bakery sector is worth approximately £836 million per annum. The UK foodservice cake and sweet treat bakery sector is worth approximately £494 million per annum (UK foodservice data derived from NPD Crest 52 w/e 30th June 2017). 

·      The Company comprises a UK Bakery division and an Overseas division:

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

o  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.

 

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