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Finsbury Food Group

  • BY: Andrew Hore |
  • POSTED: 30/09/2009 |

Cakes and speciality breads maker Finsbury Food Group reported lower underlying profits and a small decline in net debt.

No dividend is being paid because Finsbury has to manage down its borrowings. Net debt was £41m at the end of June 2009 - £1.9m lower than six months before. Finsbury paid an initial £500,000 for bread maker Goswell Enterprises during June 2009 - £1.7m more is payable over four years. There is £3.3m of deferred consideration payable over the next 13 months according to Charles Pick of FinnCap.

The shares fell 3.5p to 28.5p each, which values Finsbury at £14.7m.

Revenues increased 8% to £179m in the year to June 2009. Revenues no longer include customer rebates and promotional discounts. Like-for-like sales rose by 2%. Reported profits slumped from £5.07m to £1.78m. Underlying profits still declined from £7.73m to £5.05m. Gross margins improved from 26.8% to 27.2%.

The profit decline slowed in the second half. Ingredient costs remain relatively high and utilities costs increased by 40%.

John Duffy has been appointed chief executive. He has been chief operating officer for more than one year.

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