8th Jan 2007 07:00
Finsbury Food Group PLC08 January 2007 Date: 8th January 2007On behalf of: Finsbury Food Group plc ("Finsbury" or "the Group")Embargoed until: 0700hrs Finsbury Food Group plc Trading Update Finsbury Food Group plc (AIM: FIF), one of the UK's leading manufacturers anddistributors of premium cakes and breads, is today providing an update oncurrent trading prior to entering its closed period. The Board is pleased to announce that the sales growth mentioned at the AGM on29th November 2006, has continued. At the half year, Memory Lane Cakes Ltd ("Memory Lane") is showing a 5% increase on the comparable period of 2005, withNicholas & Harris Ltd up 18% year-on-year. In addition, for the six weeks from mid November (i.e the date of acquisition in2005) to the end of December, the combined sales of California Cake Company Ltd("California") and Campbells Cake Company Ltd ("Campbells") were up 25% for thatperiod. The Board is pleased to report that the California bakery passed itsaudit in November 2006 to receive organic accreditation and is awaiting formalcertification. It is expected to launch its first organic cake slice in lateJanuary 2007. As a consequence of the fire at United Central Bakeries Ltd ("UCB") on 31stOctober 2006, comparable sales numbers are not available for this business.However, the Board is pleased to report that UCB continues to make good progressin its recovery program. The gluten-free bakery was back in operation from midDecember 2006 and all other production has now been outsourced, with yum yumsreturning to supply this week. Replacement equipment has been ordered and it isexpected that the site will be back in full operation by May 2007. All costsincurred by this interruption and the replacement of lost assets are covered byinsurance. The outlook for the second half of the year remains positive. The Group is wellplaced to continue to drive growth in the premium cake sector. In particular,range relaunches have been successfully undertaken with three multiple grocersand a further three will expand their premium ranges in March / April, withMemory Lane and Campbells providing the majority of the products concerned. Inaddition, the first quarter of 2007 will see a concerted push on the currentNestle range with additional listings for the current products in more retailersand new celebration cakes being introduced to the market. As a result, the Board is confident about the Group's prospects for theremainder of the year and expects that the Group's profit before tax andexceptional items for the year to June 2007 will exceed current marketforecasts. - ENDS - For further information: Finsbury Food Group plc www.finsburyfoods.co.ukDave Brooks (Chief Executive) 07831 787 382Lisa Morgan (Finance Director) 07771 712 720 Redleaf CommunicationsEmma Kane/Sanna Lehtinen 020 7822 0200 • 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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