23rd Mar 2015 08:50
LONDON (Alliance News) - Bakery products company Finsbury Food Group PLC on Monday said its pretax profit nearly doubled in the first half on the back of good organic performance and the contribution from the Fletchers Bakery Group business, prompting the company to more than triple its interim dividend.
Finsbury said its pretax profit for the six months to December 27 was GBP4.1 million, up from GBP2.1 million a year earlier. The group's operating profit also surged, up to GBP4.5 million from GBP2.6 million, as its operating margin improved to 4.2% from 3.0% a year earlier.
Revenue increased to GBP107.6 million, up 24% from the GBP86.6 million posted a year earlier and up 5.6% on a like-for-like basis. The rise in revenue was driven in part by a 5.6% organic sales growth in the period, pushed up by higher market share in the UK cake division, and by the contribution from Fletchers Bakery Group, which Finsbury acquired in a GBP56 million deal in October. The half-year results include two months of contribution from Fletchers.
The company said the revenue growth in the UK cake business was driven by a good Christmas trading period and the success of its Frozen licensed celebration cake, branded on the successful Disney animated film.
On the back of the performance the company said it would hike its interim dividend to 0.83 pence per share, compared to a 0.25 pence payout a year earlier.
"I am pleased to report the significant progress of the group. Over the period we have seen a strategic shift, becoming more diversified in terms of products and customers, as well as evolving into one of the largest speciality bakery groups in the UK," said Chief Executive John Duffy.
"We have seen notable growth, both organically and through the Fletchers acquisition, which is integrating well. We look forward to the remainder of the year with confidence and, despite a tough trading environment, we believe the Group is in a strong position to deliver on our growth strategy," Duffy added.
Finsbury shares were up 4.3% to 72.50 pence in early trade.
By Sam Unsted; [email protected]; @SamUAtAlliance
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