Finsbury Food: preliminary results for FY 2010

London / UK. (ffg) Finsbury Food Group PLC, a leading manufacturer of cake, bread and morning goods, announced its preliminary results for the year ended 03rd July 2010. A fall in demand for premium cakes among recession-hit consumers and heavy discounting from rivals caused sales figures to fall for the first time in its history, the bakery group said in a statement. Highlights:

• Adjusted PBT up seven percent to 5,4 million GBP (2009: 5,0 million GBP)
• Strong Bread and Free From absolute sales growth of 14 percent to 43,7 million GBP (2009: 38,2 million GBP) including national roll out of Genius brand fresh ‘free from’ bread
• Improved integration and internal efficiencies with administrative expenses reduced six percent to 36,1 million GBP (2009: 38,3 million GBP)
• Adjusted diluted earnings per share of 0,07 GBP (2009: 0,069 GBP)
• Capital investment of 3,5 million GBP to support growth including 2,0 million GBP in new Free From production facility
• Strengthened Executive Board team with new Group FD Stephen Boyd
• Total net bank debt reduced eleven percent from 41,0 million GBP to 36,5 million GBP at year end within established banking facilities of 50,2 million GBP
• Successful rescheduling of 4,8 million GBP deferred consideration previously due in the first quarter of new financial year

CEO John Duffy: «These results underline our progress to date. We have responded to a difficult trading climate by adapting our range of products, developing strategies to meet the modified purchasing habits of our customers while stepping up the pace of internal change. Our vision is clear. Success for this business depends on trading through the present period, paying off a proportion of our debt, remaining within financial covenants, building a financial position that is less leveraged and returning to growth in an expanding marketplace. I feel extremely encouraged by the way our staff have responded to the challenges of the last 12 months. As we head into a new financial year, the pace of progress is being maintained and I feel confident that our continued investment in people, products and facilities will continue to serve us well for many years to come».