Finsbury Food shares slide despite an increase in sales

The UK bakery group is taking measures against the challenges

Article updated: 16 July 2018 10:00am Author: Ian Forrest

  • 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.


All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.

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Ian Forrest

Investment Research Analyst

Ian’s background in investments, financial journalism and research has seen him advising private investors on equities and helping to manage portfolios. His qualifications include the Certificate in Financial Planning and the Chartered Institute for Securities & Investment’s Investment Advice Diploma.