Pre Close Statement

Finsbury Food Group plc

Pre Close Statement

Finsbury Food Group plc (AIM: FIF), a leading manufacturer of cake, bread and gluten free bakery goods, is today providing an update on trading for the full financial year, ended 30th June 2012, prior to entering its closed period.

We are pleased to report that the Group has delivered another year of strong organic sales growth. This growth was seen across both of the Finsbury Group businesses. Total Group sales of £207m for the full year were up 9.4%, some £17.8m, compared to the previous year. As predicted, growth levels moderated in the second half as we reached the anniversary of last years product launches and contract gains.

Sales in the larger Cake division are up 9.2% versus last year to £152m. Both UK market and export sales through our Lightbody Europe 50% JV business have shown growth with the latter providing half of the Cake growth.

Sales in the Bread and Free From division continued to deliver high levels of growth, up 10% on the prior year to £55m, driven by strong growth in the fresh gluten free market and Vogel's brand growth in the speciality bread market.

Our consumer markets and operating environment have continued to be challenging throughout 2011/12. Key core ingredient inflation on items such as sugar and egg in particular has necessitated price rises, continued investment and efficiency initiatives across the Group to minimise the impact on margins.

We continue to trade in line with expectations and banking covenants.

John Duffy, Chief Executive commented:

"The Group has come a long way to achieve annual sales of over £200m for the first time despite very challenging market conditions. This is testament to the hard work and resilience of the management teams and the quality and breadth of products they produce. With no let up in market conditions anticipated we continue to invest in growth areas and improved efficiency to maintain this success."

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Notes to Editors:

§ Finsbury Food Group plc (AIM: FIF), is a leading manufacturer of premium and celebration cakes, low fat cake slices and artisan, organic and gluten free bread and morning goods.

§ Finsbury Food Group is the second largest manufacturer of Ambient Packaged Cake (excluding In Store Bakery) in the UK, a market valued at £914m (Source: Kantar Worldpanel Total UK Coverage, 52 we 9th June 2012).

§ The Group is also the market leader in the supply of gluten free baked goods to the UK's multiple grocers.

§ The Group's strategy is to generate returns for shareholders by building a crafted bakery group focused on premium, celebration and well being that delivers for customers and consumers. Finsbury continues to develop its licensed brand portfolio to complement its core retailer brand relationships and improve its understanding of and response to changing consumer needs.

§ Whilst the Company sees exciting organic growth opportunities in all its businesses and its short-term focus is on integrating and growing its existing businesses, the aim is to take advantage of the appropriate bolt on acquisitions to drive longer term value as opportunities and circumstance allow.