16th Jul 2015 07:34
LONDON (Alliance News) - Finsbury Food Group PLC Thursday said that it will outperform its current profit and earnings before interest, tax, depreciation and amortisation expectations, after the strong trading it experienced in the first half of its financial year continued into the second half.
The bakery manufacturer for the retail and food service industries said that total sales in the year to June 27 grew 45.8% to GBP256.2 million year-on-year, as the second half of the year benefited from continued strong growth in revenue and earlier than planned delivery of synergy benefits from its acquisition of bakery Fletchers Group in October 2014. The acquisition contributed GBP69.3 million of additional revenue, Finsbury said.
Finsbury added that capital expenditure, depreciation, debt and associated financing costs were also lower than previously forecast, although it expects capital expenditure in the year ahead to increase as it continues to make investments within the business.
Finsbury warned that consumer markets remain challenging, but said that its acquisition of Fletchers and also of cake supplier Johnstones Just Desserts Ltd In June will drive the group's growth in the new financial year.
"As one of the largest speciality bakery groups in the UK, we believe we are well positioned to continue to deliver against our strategy and are confident that the business, with our latest acquisitions, will drive group growth and shareholder value," Chief Executive John Duffy said in a statement.
Shares in Finsbury were trading up 6.7% at 92.80 pence early Thursday following the announcement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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