Finsbury Food Group puts money into cakes

Cake and bread maker Finsbury Food Group said it had raised almost four million pounds to fund the company's UK cake business.

The firm said a placing of around 10.4m new shares at 38p each had raised £3.9m before expenses.

It plans to use the proceeds to develop the product portfolio capability at its cake business using new technology and automation.

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It will also improve production efficiencies, thus reducing the cost of manufacturing.

"Projects will be implemented in a phased fashion over the course of the next two years to avoid any exceptional charges," the statement said.

"The directors of the company believe the planned investment will deliver a final annualised benefit of some £2m."

MM