24th Feb 2020 10:30
(Alliance News) - Finsbury Food Group PLC on Monday expressed confidence going forward after reporting double-digit profit growth in the first half of its current financial year.
The baker and food service firm, whose brands include Memory Lane Cakes and Johnstone's Food Service, reported pretax profit of GBP8.8 million for the 26 weeks to December 28, up 18% compared to GBP7.5 million a year earlier. Revenue grew by 4.7% to GBP159.5 million from GBP152.3 million.
"Revenue and profit were up, largely driven by organic performance in UK Bakery as well as new business wins and the first full six-month contribution from our Free From business," said Chief Executive John Duffy.
Finsbury Food declared an interim payout of 1.23p per share, up 6.0% from 1.16p paid the year before.
Looking ahead, Finsbury's said the macroeconomic environment looks set to remain uncertain for the year ahead, alongside continued cost inflation. Despite that, the company said it entered second half of its current financial year "in a position of relative strength", amid reduced capital spend, maximised productivity and improved operational efficiency.
"Notwithstanding the ongoing market-wide headwinds, there is positive sales momentum in the business and a growing number of exciting opportunities that gives us confidence in Finsbury's prospects for the full year, which remains in line with expectations," added John Duffy.
Finsbury Food shares were trading 2.1% higher in London on Monday at 102.60p each.
By Evelina Grecenko; [email protected]
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