19th Sep 2016 07:13
LONDON (Alliance News) - Finsbury Food Group PLC Monday reported growth in profit in its recently-ended financial year, and said it remains confident on the future despite facing inflationary pressures from weak sterling and the National Living Wage.
The bakery products manufacturer said its pretax profit in the year ended July 2 grew to GBP11.8 million from GBP8.5 million the year before, as revenue rose to GBP319.7 million from GBP256.2 million. On a like-for-like basis, sales grew 5%.
Finsbury said its results were boosted by its acquisitions of fellow bakery products maker Fletchers and bite-size cake maker Johnstone's, both of which it bought in the prior financial year, while like-for-likes were also driven by growth in consumer appetite for artisan breads and licensed celebration cakes.
Finsbury added that it will face inflationary pressures through commodities cost increases, further driven by currency weakness after the EU referendum, and the National Living Wage, but that it has made plans and investments aligned to deal with those issues.
Finsbury Food Group will pay a total dividend of 2.8 pence, up from 2.5p the year before.
"Looking ahead our strongly performing businesses and a robust balance sheet positions us well to both take advantage of growth opportunities and mitigate challenges ahead. The group remains as dedicated and focused as ever, and I remain confident that the patient, unwavering strategy adopted will reap benefits for the business in the years ahead," Chief Executive John Duffy said in a statement.
Shares in Finsbury were up 1.6% at 137.70p Monday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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