Speciality bakery manufacturer Finsbury Food Group is outperforming profit expectations as its total sales revenue grew to £256.2m in the year to 27 June 2015.
Its full-year financial trading update revealed the jump in sales revenue – an increase of 45.8% on last year. The figure includes organic growth of £10.7m, which is an increase of 6.1% on the prior year and was primarily provided by the cake division.
The Fletchers acquisition, completed in October 2014, contributed £69.3m of additional sales revenue. The acquisition of cake supplier Johnstones Just Desserts on 15 June 2015 occurred too late in the year to impact figures.
The second half of the year saw strong growth in sales, as well as the boost from the Fletchers acquisition, while capital expenditure, depreciation, debt and associated financing costs were all lower than forecast. Capital expenditure is expected to increase as investment continues. The board believes the larger, more diversified speciality bakery group is a strong multi-channel business.
John Duffy, chief executive of Finsbury Food Group, said: “I am pleased to report the group’s continued strong trading, with growth being driven both organically and also through acquisition. Our EBITDA and profit outperformance illustrates that we have the right strategy in place, particularly in the continued challenging market conditions.
“As one of the largest speciality bakery groups in the UK, we believe we are well-positioned to continue to deliver against our strategy and are confident that the business, with our latest acquisitions, will drive group growth and shareholder value.”
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