Bright outlook for Finsbury Food, reinstates dividend

Finsbury Food, the cake and bread maker reported a sharp rise in half year profit and said the outlook for the group is stronger than ever.

Finsbury Food, the cake and bread maker reported a sharp rise in half year profit and said the outlook for the group is stronger than ever.

Pre-tax profit jumped 32.8% to £3.0m for the six months ended December 31 from £2.2m the year before. Group revenue for the period rose 1% to £103.3m.

Sales in the UK Cake division rose 2% to £67.8m and sales in the Bread division gained 7% to £27.4m. The group sold its free from business for £21m in February.

Chief Executive John Duffy said: "The group has proved its resilience and continued to drive growth, productivity and efficiencies in what remains a difficult trading environment."

"The outlook for Finsbury is now stronger than ever. The sale of the Free From business has transformed the group's balance sheet, giving us the opportunity to catalyse our stated strategy and accelerate further growth through investment and market consolidation whilst reinstating the dividend."

Net debt was reduced by 27% to £27.4m and a dividend payment of 0.25p per share has been reinstated.

"We will continue to build upon the foundations we have created, and look forward to the next stages of the company's development with the ultimate goal of driving value for our shareholders," Finsbury added.

CJ

Recommended

Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022
Invest in VCTs: tax-free investments set to break records
Investment strategy

Invest in VCTs: tax-free investments set to break records

Generous tax breaks make VCTs – venture capital funds – an attractive supplement to pensions.
21 Jan 2022
HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022

Most Popular

Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022
Interest rates might rise faster than expected – what does that mean for your money?
Global Economy

Interest rates might rise faster than expected – what does that mean for your money?

The idea that the US Federal Reserve could raise interest rates much earlier than anticipated has upset the markets. John Stepek explains why, and wha…
6 Jan 2022