London / UK. (ffg) British Finsbury Food Group PLC, a leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and ‘out of home eating’ foodservice channels, is pleased to announce its preliminary results for the financial year ended 01 July 2017. The Company has delivered resilient UK sales in a deflationary market, with the impact of UK retail food market deflation in the period offset by the impact of innovation in cake and growth in speciality bakery ranges.
Financial Highlights
- Group revenue of 314.3 million GBP flat on a like for like basis, (2016: 319.7 million GBP 53 weeks, 313.5 million GBP 52 weeks).
- Adjusted operating profit of 17.4 million GBP up 4.2 percent on a like for like basis, (2016: 17.1 million GBP 53 weeks, 16.7 million GBP 52 weeks), with adjusted operating profit margin of 5.5 percent (2016: 5.3 percent).
- Adjusted profit before tax of 16.6 million GBP up 5.6 percent on a like for like basis (2016: 16.0 million GBP 53 weeks, 15.7 million GBP 52 weeks).
- Profit before tax of 13.0 million GBP (2016: 11.8 million GBP).
- Adjusted Ebitda of 24.9 million GBP up 2.7 percent (2016: 24.7 million GBP 53 weeks, 24.3 million GBP 52 weeks).
- Ebitda of 21.0 million GBP (2016: 20.4 million GBP).
- Record capital investment of 12.5 million GBP to drive efficiency and innovation (181 percent of depreciation).
- Adjusted EPS at 9.8 Pence per share up 2 percent on a like for like basis, (2016: 9.6 Pence per share 52 weeks), adjusted diluted EPS 9.5 Pence per share (2016: 9.5 Pence per share 52 weeks).
- Final dividend per share of 2.0 Pence taking total dividend for the year to 3.0 Pence up 7.1 percent (2016: 2.8 Pence per share), giving a yield of 2.6 percent based on the year end share price of 116 Pence per share.
- Net debt of 17.5 million GBP equates to 0.7 times Ebitda of the Group.
Strategic Highlights
- Capital investment including a new state of the art cake line which will be fully operational in financial year 17/18, an exciting new cupcake capability to augment the Group’s licensed product range and a range of packing automation investments.
- New artisan bread facility opened, baking for retail and foodservice customers.
- Sales to continental Europe up 15 percent to 38.1 million GBP.
- Entered into consultation to close Grain D’Or, the loss making site in North London which manufactures premium baked goods in the UK pastry sector.
- Employee engagement programme commences following on from successful roll out of vision and values throughout the Group.
- A new multi-year licensing agreement with Thorntons and new brand licence engagements with Mary Berry and Mars, with a range of Mary Berry cakes launched in the second half of the year.
- Winner of Celebration Cake Business of the year for 2016 at the Bakery Industry Awards and multiple food quality awards: Quality food award, Café Quality food award, Grocer Own Label innovation award and International Licensing award.
Unless stated otherwise stated the figures quoted for the prior year are for 53 week period.
John Duffy, Chief Executive of Finsbury Food Group PLC, commented: «The FY2017 results show strong resilience to the current challenges facing the industry and this strong performance, which has seen sales increase and profit margins improve, is testament to our long term focus on driving efficiency and scale across the Group.
«Investment to date has paid off and the initiatives implemented during the year will continue to ensure that we maintain our robust position as a low cost and leading speciality baker in the UK over the next 12 months and beyond.
«Our European growth has also been particularly pleasing. The positive impact that these sales have had on the overall Group performance demonstrates the advantages of having a geographically diverse portfolio.
«Our management team has proven its ability to remain competitive and nurture long term relationships with brands and customers. Although the challenging market conditions seem set to continue, we are confident that our focused and forward thinking strategy will drive us through».
