The UK bakery group is taking measures against the challenges
Finsbury Food shares slide despite an increase in sales
- Leading bakery manufacturer reported a 2.4% increase in like-for-like in its second half trading update
- The company remains challenged by the UK economic environment and in response the shares fell back by 3%
- However, the shares are good value and so The Share Centre maintains its ‘buy’ recommendation for higher risk investors seeking growth
AIM-listed specialist bakery group Finsbury Food provided a second half trading update today. The company said like-for-like sales rose 2.4% to £290.2m and it remains confident of delivering profits in line with expectations. The UK bakery business saw a 2.8% rise in sales although overseas sales dropped slightly. Commodity and labour inflation remain significant challenges although the company is managing to offset those with better operational efficiency and some price recovery. Management said that the challenging UK economic environment shows little sign of abating but it remains well positioned.
The shares fell back 3% in response to today’s news which is a reflection of the challenges which the company mentioned. They are mostly issues beyond the control of the company but it is taking measures where it can to address them and retains a strong position in the UK bakery market. The shares are good value and we continue to recommend them as a buy for higher risk investors seeking growth.
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