14th Jul 2005 07:00
Finsbury Food Group PLC14 July 2005 Date: 14 July 2005On behalf of: Finsbury Food Group plcEmbargoed until: 0700hrs Finsbury Food Group plcPre-close statement Finsbury Food Group plc, one of the UK's leading manufacturers of premiumadded-value cakes and speciality breads, will be announcing its preliminaryresults for the year ended 30th June 2005 on Tuesday, 20th September, 2005.Prior to entering its close period, the Company is providing an update oncurrent trading. The Board reports that both of the Group's trading companies, Cardiff basedMemory Lane Cakes Ltd ("Memory Lane") and Nicholas & Harris Ltd ("Nicholas &Harris") in Salisbury, have delivered strong performances for the year; bothachieving a good level of efficiency, and capacity utilisation. In addition,cross-selling opportunities between the Group's two subsidiaries are beingincreasingly developed. Memory Lane The Board reported at the half-year that Memory Lane had achieved a successfulChristmas trading period. Memory Lane continued to perform well in the secondhalf of the year and to push forward the plans from the strategic review thatwas carried out in the Spring of 2004, specifically: • Improving margins primarily by exiting low margin, non core activities • Strengthening of the operational management team • Targeted capital expenditure to reduce costs Nestle Memory Lane is continuing to drive its Nestle branded business. A range of newproducts was launched in the Spring of this year as part of the strategy tocreate a dynamic innovative range of high quality attractive products. Utilisingthe Group's experience in brand management and extensive innovation capability,the business continues to achieve new listings and sales are proceeding in linewith targets. Nicholas & Harris Ltd Nicholas & Harris has also delivered a strong performance in the year to 30thJune 2005. Works to extend the premises are now complete and are helping thebusiness support the growing demand for its products from its key customer,Waitrose. Helped by Memory Lane's existing relationship with Asda, Nicholas & Harris hasbeen successful in securing them as a customer with a range of products nowavailable through their stores, and further product development under-way,.Additionally, Nicholas & Harris continues to develop relationships with othermajor retailers. New product development and innovation are the life blood of the business andthe license agreement for use of the Village Bakery organic brand has created anexcellent platform for the development of a number of exciting new products inthe high growth organic bread sector. Acquisitions Finsbury Food Group continues to pursue its buy and build strategy and believesthat exciting opportunities exist within the sectors in which it operates. TheGroup has identified a number of specific opportunities which it intends topursue over the coming months. The Group is benefiting from a positive net cashposition following strong trading and the land sale in January, and expects tobe able to fund future growth plans without recourse to the equity markets inthe initial phase of it's strategy implementation. Commenting, Dave Brooks, Chief Executive of Finsbury Food Group plc, said: "I am delighted that the hard work put in by our dedicated teams in bothbusinesses is paying off. We continue to strive to be the best at what we do andprovide top quality products and service to our wide range of customers.Innovative new products in our Nestle range are gaining listings and creating asolid presence for the brand. Our positive cash position combined with a strongtangible asset based balance sheet leaves the business well positioned to takefull advantage of the opportunities that the dynamic markets in which we operateoffer. We are optimistic about the year ahead." For further information: Finsbury Food Group Plc www.finsburyfoods.co.uk Dave Brooks (Chief Executive) 07831 787 382John Lomer (Finance Director) 0777 888 9977 Redleaf CommunicationsEmma Kane/Miranda Good 020 7955 1410 Notes to Editors: • Further information can be found on the Group's website at: www.finsburyfoods.co.uk • Publication quality photographs are available via Redleaf Communications on the numbers shown above This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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