Finsbury Food sales rise 9.4pc

Cake, bread and gluten free bakery goods maker Finsbury Food said total sales rose 9.4% for the full financial year ended 30 June 2012 despite tough market conditions.

The aim listed firm said sales rose to £207m for the full year compared to £17.8m the previous year.

"As predicted, growth levels moderated in the second half as we reached the anniversary of last years product launches and contract gains," the group explained.

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Sales in the larger Cake division rose 9.2% from the previous year to £152m. Both UK market and export sales through its Lightbody Europe 50% JV business showed growth with the latter providing half of the Cake growth.

At its Bread and Free From division sales continued to deliver high levels of growth, up 10% on the prior year to £55m, driven by strong growth in the fresh gluten free market and Vogel's brand growth in the speciality bread market.

Commenting on the trading environment Finsbury said: "Our consumer markets and operating environment have continued to be challenging throughout 2011/12. Key core ingredient inflation on items such as sugar and egg in particular has necessitated price rises, continued investment and efficiency initiatives across the Group to minimise the impact on margins."

We continue to trade in line with expectations and banking covenants, it said.

Chief executive John Duffy said the group has come a long way to achieve annual sales of over £200m for the first time despite very challenging market conditions.

He added: "With no let up in market conditions anticipated we continue to invest in growth areas and improved efficiency to maintain this success."

CJ