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 foodservice channels, is pleased to announce its preliminary results for the 52 week ended 27 June 2020.
- Resilient Group revenue of GBP 306.3 million.
- Adjusted Ebitda down 4.4 percent to GBP 24.4 million (up 2.8 percent to GBP 26.2 million including impact of first-time adoption of IFRS16 of GBP 1.8 million).
- Adjusted profit before tax is GBP 13.9 million which is before significant and non-recurring items of GBP 10.3 million.
- Adjusted Basic EPS 2 7.9p.
- Net bank debt of GBP 26.5 million, decreased by GBP 9.1 million (2019: GBP 35.6 million) at 1.1 times annualised Ebitda of the Group (2019: 1.4 times).
Profit is before significant non-recurring and other items. Adjusted EPS has been calculated using earnings excluding the impact of amortisation of intangibles and significant non-recurring and other items.
The impact of the first-time adoption of IFRS 16 will be to increase operating profit by GBP 0.1 million, interest costs by GBP 0.2 million, Ebitda by GBP 1.8 million, debt by GBP 11.8 million (previously operating leases under IAS 17) and assets of GBP 9.4 million.
- The business has proven to be resilient, responding quickly to Covid-19 to deliver a robust trading performance.
- Covid-19 and resultant lockdown had an immediate and adverse impact on Group revenue and profit.
- Foodservice business adversely impacted.
- Retail business had winners and losers depending on subsector.
- Polish business struggled with fall in demand and logistics barriers.
- Responded rapidly to create a safe working environment for our employees.
- Continued focus on driving productivity and efficiency:
- Integrated IT system embedded in all manufacturing sites, excluding Ultrapharm.
- Implementation of Group-wide review and standardisation of bakery processes leading to improved quality and reduction of waste.
- System focus on quality with a 10 percent reduction in complaints year on year.
- Opening of new gluten free bakery in Poland to expand capacity for the continental market.
- Further innovation in line with consumer trends with:
- The launch of BOSH! branded plant based, vegan friendly whole cakes and celebration cakes.
- The Celebration Cake factory now nut free with reengineered character licensed celebration cakes.
- A new Line of Harry Potter licensed cakes.
- A growing gluten free cake range rolled out across new retail customers.
- Continued development of HomeSafe programme with 15 percent decrease in number of accidents during the year.
- Implementation of group wide environmental framework in line with ISO14001.
- Product excellence illustrated by the winning of several Quality Food and Drink ‘Q’ Awards.
Chief Executive’s Commentary
Commenting on the results, John Duffy, Chief Executive of Finsbury Food Group Plc, said: «The first three quarters of the financial year saw the Group perform in line with market expectations as the benefits of our long-term investment programme and operating initiatives continued to bear fruit. The outbreak of Covid-19 saw unprecedented demand swings and resulted in a challenging period for the Group, but I am proud of how we responded and were able to play a part in ensuring the UK’s supermarkets had the food stocks needed at the time.
«After the initial shock, we took decisive action to protect the business, our people and realign our operations to the changes in demand, which resulted in a robust performance in the circumstances. We have seen month-on-month improvement since the outbreak which, encouragingly, has continued into the new financial year. Our teams have worked hard in recent years to build Finsbury into a more resilient business, and there is no doubt those improvements were a key factor in enabling us to remain strongly cash generative throughout the period.
«We remain focused on becoming a leading speciality bakery group and, notwithstanding coronavirus-related disruption, we have continued to make good progress towards that goal. There will inevitably be further obstacles to overcome as the pandemic plays out and with Brexit approaching, but there is a sense of cautious optimism in the business, and we are confident that by continuing to manage the business in a disciplined and pragmatic way, we will emerge a stronger, more streamlined and efficient organisation capable of delivering sustainable growth and healthy returns for shareholders.»