15th Nov 2006 07:02
Finsbury Food Group PLC15 November 2006 Date: 15 November 2006 On behalf of: Finsbury Food Group Plc ("the Company") For immediate release Finsbury Food Group plc Update on fire at United Central Bakeries Ltd Finsbury Food Group plc (AIM: FIF.L), the manufacturer and distributor ofspeciality cakes and breads, is today providing an update on the current statusat its United Central Bakeries Ltd ("UCB") bakery following the fire on thenight of 31st October, 2006. On 14th November, formal confirmation was received from UCB's insurers that fullliability has been accepted for the cost of replacing the lost assets, andproviding compensation for the costs associated with the business interruption. Strong progress has been made in implementing the recovery plan. Whilst theBakery remains out of operation currently, at least 70% of the range is expectedto be back in full supply by the end of November, as a result of the actionstaken by management over the last two weeks. • Gluten free - there was no fire damage to this area (thoughpower supplies were cut) and this area is expected to be back in production bythe end of November. • Christmas cakes - this range has been successfullytransferred to the California Cake Company Ltd ("California"), Finsbury's lowand full fat cake slices business based in Coatbridge near Glasgow. • Bread rolls - are due to return to supply from Nicholas andHarris Ltd, Finsbury's speciality breads business based in Salisbury, on Monday20th November. • Potato scones - UCB's complete requirement has beenout-sourced using three local bakeries in Scotland and all customers will beback in supply by the weekend. • Yum Yum's - finding an alternate supplier has proved moredifficult, though our customers remain supportive and it is expected that asolution will be found by the end of November and implemented during December. • Staff - All staff have been re-deployed at California, on thecleaning operation at UCB, or within the local bakeries supporting themanufacture of potato scones. The Board is pleased by the progress made by the management team to ensurevirtual continuity of supply since the fire. In addition to the ongoingmanagement of the outsourcing of UCB products, the focus is now on ordering therequired equipment to bring production back on site. Initial indications lead usto believe that the site should be back in full operation from April 2007.Clearly there remains a lot of work to be done to confirm this, though thisfeels a realistic target based upon the information available today. Commenting, Dave Brooks, Group Chief Executive of Finsbury Food Group plc, said: "The efforts of the management teams within the Group, and particularly at UCB,have been huge over the past two weeks. I am delighted by the progress made todate and congratulate the team on their work so far. The support of the wholebakery workforce at UCB has been fantastic, and the support of our majorcustomers has been much appreciated. The journey back to full production on theBathgate site begins here." Enquiries: For further information: Finsbury Food Group Plcwww.finsburyfoods.co.uk Dave Brooks (Chief Executive) 07831 787 382 Redleaf CommunicationsEmma Kane/Sanna Lehtinen/Ian Haworth 020 7822 0200 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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