23rd Sep 2013 07:26
LONDON (Alliance News) - Finsbury Food Group PLC said that it reduced its debt and interest costs substantially in the financial year ended June 29, as it completed a "transitionary period" for the company.
The cake, bread and bakery goods manufacturer reinstated its dividend after five years without paying one. It proposed a total dividend of 0.75 pence per share, its first since 2008.
Finsbury reported full -year revenues from continuing operations of GBP176.6 million, compared with GBP178.9 million a year earlier.
It said that it sold its "free from" business for GBP21 million on a debt-free, cash-free basis during the year, and reduced its net debt by 78% to GBP7.4 million, compared with a net debt of GBP33.9 million last year. As a result, it said that its strengthened balance sheet will allow its to increase investment and merger and acquisition opportunities.
The cake maker noted that its successfully raised GBP3.8 million in an equity placing in November 2012, to fund capital investment projects in its core cake business.
It also said that it continued to develop its licensed and retailer brand portfolios, and has introduced a number of cost and product initiatives.
Pretax profit of GBP5.5 million in the recent year compared with GBP6.7 million a year earlier. Finsbury said that it was affected by the price increases of raw materials, as well as unsustainable levels of promotional activity in most categories of food.
The group said it expanded its bread-manufacturing facilities at Nicholas & Harris, and saw 17% sales growth in bread, driven by growth of its licensed brands including Vogel's, Cranks and Village Bakery.
"These results signal the Group's shift from a transitionary period, to a new period of financial stability. Whilst a strategic disposal has driven this change, the company is trading maturely, paying down debt and generating cash. Driving organic growth is one of our key focus areas whilst evaluating bolt-on acquisition opportunities," Chief Executive Officer John Duffy said in a statement.
Finsbury Food shares were down 4.7% or 3.55 pence after the open Monday, trading at 72.45 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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