Finsbury profits exceed expectations
yearly profits will be in excess of company predictions, cementing
its position in the speciality bakery sector.
In a trading update, the four year-old company who supply cakes and breads to major retailers such as UK supermarket giant Tesco, said that "excellent performance" in the year until June 30 would guarantee them profits before tax in excess of market predictions.
They attributed the good news to strong operational efficiencies and control of overhead costs as well as the growth of the company's portfolio towards the end of last year.
In November, the firm acquired three major Scottish bakers - California Cake Company, Campbell's Cakes and United Central Bakeries - who specialise in low fat and shortcake products among others, in a deal which cost them £7.4m (€10.7).
According to the company their sales of low fat cakes from California Cakes were stable, despite an overall slump in the market.
Separating the organic divison of United Central Bakeries from mainstream production cost the group £200,000 (€289,632) this year but paid off when the range was picked up by supermarket chains Tesco and ASDA.
The Memory Lane Cakes division of the Finsbury group accounts for over half of the group's turnover and its sales have contributed significantly to the expected profits.
It began producing a new range of small cakes in April, after Finsbury invested £1m.
New product development over the last year has bolstered sales and is set to continue throughout 2006 with the expansion of the gluten-free and organic ranges owned by subsidiary business, Nicholas & Harris.
In addition, Finsbury will produce a new children's range from Nestlé - marketed as free from artificial colours and flavourings.
And the company's relationship with retailers looks set to change with a greater number of supermarkets committed to stocking their own range premium brands - manufactured by Finsbury - and a re-launch of these products scheduled for the autumn.
Chief Executive Dave Brooks said: "As a Group, our focus over the next 12 months will be on maintaining operational excellence, keeping a tight control on our cost base and consolidating our position as the leader in thought and action in the target market."
Finsbury Foods are due to release their annual results on September 19 this year.
