Finsbury: held its Annual General Meeting

London / UK. (ffg) British Finsbury Food Group PLC, a leading manufacturer of cake and bread bakery goods for both the retail and foodservice channels, held its Annual General Meeting (AGM). At the AGM the Chairman issued a trading statement for the Company which is set out below. In addition to the AGM statement, Finsbury announced the unaudited interim results for the 26 week period ended 27 September 2014 for Fennel Acquisition Limited – Fletchers Group of Bakeries (see b:eu on 2014-10-11).

AGM Trading Statement

At the AGM the Chairman issued the following trading statement for the Company: «In the first four months of the new financial year, total Company sales revenues grew to 57.3 million GBP. This represents organic growth of just over 2.1 million GBP, an increase of 3.9 percent versus prior year as the Fletchers acquisition was completed at the end of this period. The UK Bakery division grew by five percent, with a particularly strong performance from the Cake business. The overseas division, the Company´s 50 percent owned joint export business, declined by 3.1 percent as it reduced the level of promotional sales versus prior year to optimise returns».

«As forecast, our operating environment remains challenging as shoppers continue to focus on value, with input cost inflation moderating slightly but still remaining a factor. The actions taken last year to reduce overhead costs and reinvest in additional sales growth have been successful. The efficiency benefits of the ongoing capital investment programme are also now being successfully delivered, which will lead to an improvement in our operating margins during the course of this year and beyond».

«Shareholders will be aware that the acquisition of Fletchers by the Company completed on 30 October 2014. The Directors are confident that the anticipated sales growth and scale efficiency benefits anticipated at the time of the acquisition will be realised in the coming months and years».

«Overall the Directors are pleased to report positive trading performance for the Company as a whole and in line with the Board´s expectations».

Financial information relating to Fletcher Acquisition

In accordance with AIM Rule 18, Finsbury is required to release financial information relating to Fennel Acquisition Limited for the six months to 27 September 2014. These financial results reflect a period prior to the acquisition of Fennel Acquisition Limited by the Company.

The six month results to 27th September 2014 show sales of 49 million GBP and Ebitda of 3.9 million GBP in line with previous guidance. A reduction in sales promotions and the closure of the Barnsley factory by Fletchers in August 2013, and transfer of business to another Fletchers site, led to lower sales during the period but higher Ebitda post restructuring and one off costs compared to the prior year period.

The group financial information for the periods ended 27 September 2014, 28 September 2013 and 29 March 2014 has been prepared and approved by the directors in accordance with International Financial Reporting Standards as adopted by the EU. Details are available on Finsbury´s web server.

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