Finsbury Foods bake up some goods with a rise in revenues

“Free From” items are the future focus.

Article updated: 17 September 2018 1:00pm Author: Ian Forrest

  • Finsbury Foods report 2.4% increase in full-year like-for-like sales and a 4% increase in pre-tax profits
  • Net debt fell 10.5% and the dividend increased by 10%, however the shares fell flat in response to the morning report
  • We continue to recommend Finsbury Foods as a ‘buy’ for higher risk investors seeking growth

As Finsbury Food Group updates the market, Ian Forrest investment research analyst at The Share Centre, explains what this means for investors:

Bakery group Finsbury Food reported a 2.4% increase in full year like-for-like revenue today to £290.2m. Adjusted pre-tax profits, which strip out one-off items, rose 4% to £17.2m and net debt fell 10.5%. The company has had to close a number of bakeries during the year and is coping with sharp rises in commodity and labour inflation, but it said today that it expects steady organic growth in future and is increasingly focused on “free from” bakery items. It launched a new “free from” brand in Europe and announced the purchase today of a gluten-free bakery, Ultrapharm, for £17m.

The shares have outperformed the market so far this year but remained flat in response to today’s news. These are good figures and show that while the company has had to make some changes and is facing a challenging market in some respects it is adapting to new trends such as free from. The dividend was raised 10% and we continue to recommend the shares as a ‘buy’ for higher risk investors seeking growth due to the potential for the UK and European businesses, diverse customer base and good relative value.


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.

Ian Forrest portrait photo
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.