28 November 2007 - Finsbury Food Group plc, a leading manufacturer of premium and celebration cakes, low fat cake slices and speciality, organic and gluten free breads, is today holding its Annual General Meeting. At the meeting the Chairman will issue the following trading update.
“In line with our expectations, sales growth has continued strongly in all of our businesses, with sales for the first 20 weeks up year on year by 18% in Memory Lane Cakes Ltd, 27% across the combined businesses of California Cakes Ltd and Campbells Cakes Ltd, and 15% in our Nicholas and Harris Ltd bread business. The Lightbody Group Ltd, acquired in February 2007, has experienced growth of 8%.
In addition, United Central Bakeries Ltd (“UCB”) has completed its recovery from the fire at the end of October 2006, with the replacement equipment now fully operational at target efficiency. UCB’s turnover for the month of October 2007 was up 19% on the corresponding period last year (which was the last full period prior to the fire).
The integration of the Anthony Alan Foods Ltd business, which was acquired in October 2007, is progressing to plan. The administration function has now transferred to Memory Lane Cakes Ltd in Cardiff and strong business development plans for the Weight Watchers brand are in place for the first half of 2008.
In line with other food producers, the Group has been experiencing input cost pressures with the main increases relating to butter and associated dairy products, flour and egg. In a full year this would increase material costs by nearly 10%. These increases have come in two phases, with the first phase already fully recovered. Our commercial team is having a constructive dialogue with our key customers to adjust terms to recover the remainder by early 2008 at the latest and we are confident this will be achieved.
The premium and health sectors are still demonstrating the highest sales growth rates in the bakery sector and the Group is well positioned to take advantage of this growth and to continue building share in the celebration cake market. With market leading positions in each of our core sectors, we will continue to focus on providing excellent products to excite our current consumers and entice new consumers.
This strategy has stood us in good stead over the last few years, and we believe we will meet market expectations for the current year.”