21st Sep 2015 06:53
LONDON (Alliance News) - Finsbury Food Group PLC on Monday said the acquisition of bakery Fletchers Group in October last year resulted in a big rise in revenue and an uptick in pretax profit in the its last financial year.
Finsbury, which makes cakes and bakery products, said its pretax profit for the 52 weeks to June 27 was GBP8.5 million, up from GBP6.6 million in the comparable period a year earlier, as its revenue rose to GBP256.2 million from GBP175.7 million, driven by the acquisition of Fletchers. On a like-for-like basis, the group's revenue rose 6.1%.
Finsbury said it saw an improvement in its operating margin in the year thanks to ongoing capital expenditure investments and cost improvements across the business. The 6.1% rise in organic sales in the year was helped by increased market share in its UK cake business, while its food service sales outperformed the market due to product launches.
The company said it will pay a final dividend of 1.67 pence per share, which takes its total dividend payout for the year to 2.50 pence, up from 1.00 pence a year earlier.
"The past year has truly been transformational. Building on our organic growth, the acquisitions in the period have diversified the group into new channels and widened our customer base. In concurrence, we have invested significantly in the business to ensure long term competitiveness," said Chief Executive John Duffy.
By Sam Unsted; [email protected]; @SamUAtAlliance
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