UK bakery manufacturer Finsbury Food Group has posted group revenue up 24.1% to £107.6m following it’s acquisition of Fletchers Group last year.
Its group revenue was up 5.6% on a like-for-like basis, with operating profit of £4.5m, up 74% and up 57% on a like-for-like basis in its unaudited interim results for the six months to 27 December 2014. The results include two months of trading since the acquisition of the Fletchers Group for £56m on 30 October 2014.
Despite the high-profile deal, Finsbury delivered organic sales growth of 5.6% versus prior year, which it credited to market share growth in the UK cake business. Foodservice sales growth was also ahead of market growth with 12 new products launched across three ranges.
Revenue in the UK business, excluding overseas, increased by 28% to £96.3m. On a like-for-like basis revenue growth is 6.4% and arises primarily in the cake business. Operating profit in the period increased by 94% to £3.8m. On a like-for-like basis operating profit growth is 72%.
The group is now one of the largest speciality bakery groups in the UK with annualised revenues of around £270m. October’s acquisition gives Finsbury a broader spread of customers across food retail and foodservice channels in cake, bread and morning goods.
John Duffy, chief executive of Finsbury Food Group, said: “I am pleased to report the significant progress of the group. Over the period we have seen a strategic shift, becoming more diversified in terms of products and customers, as well as evolving into one of the largest speciality bakery groups in the UK.
“We have seen notable growth, both organically and through the Fletchers acquisition, which is integrating well. We look forward to the remainder of the year with confidence and, despite a tough trading environment, we believe the group is in a strong position to deliver on our growth strategy.”