Finsbury Food Group on Tuesday reported a 16 per cent increase in sales, a week after the UK’s leading specialist baker agreed to a £143.4 million takeover by Frisbee Bidco, owned by funds managed by asset management firm DBAY.
Group revenue went up by 16 per cent to £413.7m in the year ending on July 1, 2023, driven by price and volume. The UK foodservice and overseas business divisions have seen sales increasing by a quarter, while UK retail division has registered a stable 11.8 per cent growth.
Gross margins reduced by 2.4 percentage points to 30 per cent as the group continues to be impacted by significant cost inflation, and the pre-tax profit stood at £17.7m, rising 4.2 per cent.
“To have delivered revenue performance, which is in line with market expectations, in light of the significant macro-economic challenges that we have had to overcome, is testament to our resilient business model, ability to align ourselves with consumer trends and the dedication of our teams,” John Duffy, chief executive of Finsbury Food Group, commented.
“Looking ahead, whilst we are starting to see some of the inflationary pressures ease, costs remain inflationary, and we expect to have to navigate further macroeconomic challenges over the course of the current financial year. We will continue to deliver for our customers through our diversified product range and channels.”
The group, a leading UK and European manufacturer of cake and bread bakery goods, has last Wednesday announced the recommended offer by Frisbee Bidco. Under the deal, shareholders of Finsbury will get 110 pence per share in cash, representing a premium of 23.6 per cent to the stock’s closing price of 89 pence on September 19.
The company’s directors intend to unanimously recommend shareholders vote in favour of the deal, according to a statement.