London / UK. (ffg) British Finsbury Food Group PLC, a leading manufacturer of cake and speciality bread, announced an update on trading for the full financial year, ended the 28th June 2014.

The Board expects to report full year profit ahead of market expectations. The profit levels, which are ahead of the prior year, are as a result of the successful implementation of the activities outlined at the half year update. These include actions taken to stimulate sales, via additional market activity, and in addition, a reduction in costs via the benefits from capital investment and an overhead reduction programme implemented early in the second half. These actions have also mitigated against ongoing cost inflation.

Following the sale of the Free From business in February 2013, continuing full year Group sales revenues are 175,7 million GBP, versus 176,6 million GBP in the prior year. Second half growth in the UK Bakery business reversed the first half decline and sales for the year were broadly flat at 153,7 million GBP. Sales in Lightbody Europe, the Group´s 50 percent owned European business have declined by 1,2 percent for the full year to 22,0 million GBP, however this sales decline is accompanied by a favourable profit dynamic with a shift to higher margin business.

In line with our stated strategy, we have taken advantage of our strong balance sheet to double capital investment spend to over six million GBP in the year to underpin future growth via new capacity and innovation whilst also improving productivity and competitiveness. Within the UK Bakery division, cake capital investment projects successfully completed in the year include the new single serve cake slice «snap pack» line as well as the largest cake bites robotic picking installation in the world. The Nicolas and Harris speciality bread facility expansion, delivering 60 percent additional space, has also been successfully commissioned and is now fully operational.

The Board will be recommending an increased final dividend of 0,75 GBPence giving a total dividend payment of one Pence for the year as compared to 0,75 GBPence last year.

Chief Executive John Duffy: «Our continued capital investment programme is heralding positive signs and we are encouraged by the contribution that this has made. Although cost inflation keeps margins under pressure, the strategies we have in place have mitigated against this and with more favourable profit dynamics; we are well placed to take advantage of the market as it improves».

London / UK. (ffg) British Finsbury Food Group PLC, a leading manufacturer of cake, bread and bakery goods, is providing an update on trading for the first half of the current financial year, ended 28th December 2013, prior to entering its close period.

The Board expects to report first half profit in line with market expectations. Following the sale of the Free From business in February 2013, continuing first half Group sales revenues are 86,6 million GBP versus 88,2 million GBP in the prior year period. The UK Bakery business declined by 2,1 percent, 1,6 million GBP, whilst Lightbody Europe, the Group´s 50 percent owned joint venture business, was flat year on year. Cost inflation in key ingredients such as butter and chocolate combined with general cost inflation continues to keep pressure on margins. The Company has however mitigated this pressure with internal efficiency investment and a cost reduction focus.

The planned cake capital investment programme is progressing well with the new cake slice «snap pack» packaging format launched and further snacking cake automation investment on track for year end completion. Similarly the Nicolas and Harris bread facility expansion is being commissioned in January 2014. These and future capital investments will underpin further internal efficiency and capacity improvements to support sales growth in the coming years.

The Board remains confident of reporting a year on year improvement in PBT but believes general cost inflation will impact the Group´s performance during the second half of the financial year. In reaction to the current trading environment, the Group plans to invest in up-weighted market activities to protect volumes and undertake an overhead reduction programme which will be completed in the second half. The full year benefit of the overhead reduction will be seen in the next financial year.

Chief Executive John Duffy: «Whilst the trading environment remains tough in the short term, in line with our stated strategy, our low level of debt and interest cost allows us to make significant investment in our factories and businesses for the future. In a transitional year following the sale of the fast growing Free From division and consequent group restructuring and capital investment, I am pleased with the progress made and believe we will enter next fiscal in a stronger position for the eventual improvement in consumer market behaviour ahead».

London / UK. (ffg) British Finsbury Food Group PLC, a leading manufacturer of cake, bread and gluten free bakery goods, is providing an update on trading for the full financial year, ended 29 June 2013, prior to entering its closed period on 23rd July.

Excluding Free From sales, the continuing Group like for like sales were in line with expectations. Whilst our consumer markets remain challenging, our continued focus on growth, in the right areas, combined with relentless cost and efficiency initiatives has enabled the Group to achieve improved operating margins year on year.

The successful 3,8 million GBP equity placing in the first half combined with the sale of the Free From division for £21m early in the second half has transformed the Company´s balance sheet. Total debt is lower than expected at below £10m versus 34 million GBP a year ago. Consequently capital investment in our core UK Bakery division is now being stepped up significantly, providing both product capabilities led growth as well as improved cost competitiveness.

The Board is pleased to announce that profit expectations for the financial year ended June 2013 are significantly ahead of expectations, in part due to two additional months Free From sales included between deal date and completion date at end February 2013 but also due to the initiatives set out above. Due to the Company´s financial performance for the year, the Board will be recommending an increased final dividend of 0,5 GBPence giving a total dividend payment of 0,75 GBPence for the year.

Chief Executive´s Commentary

CEO John Duffy: «I am pleased to be announcing that the hard work and improvements made in the business have allowed us to recommend an increased dividend for our shareholders. The Board believes that this, combined with the driving down of debt, increased profit expectations and continued growth, is further ensuring shareholder value».

«The sale of Free From has proven hugely beneficial for the Group, allowing further investment and laying the foundation for continued growth. The Board is committed to continuing the successes of the past year and I am confident that our improvements will assure shareholders and consumers alike of the Company´s fortitude and resilience in what continue to be adverse trading conditions».