Baked goods manufacturer Finsbury Food Group posted a 76% rise in annual operating profit despite a challenging environment.

For the year ended 30 June, adjusted results from operating activities rose to GBP10.5m (US$19.4m) from GBP6m for the same period last year.

Adjusted profit before tax was up 68% to GBP7.7m from GBP4.6m in 2007.

The Cardiff-headquartered business reported a rise in group sales of 54% to GBP169m from GBP109.8m, despite rising input costs forcing the company to introduce price increases in autumn 2007 and early 2008.

On a like-for-like basis, Finsbury said sales rose 13.2%.

The company's EPS for the fiscal year was GBP5.46m or 10.5 pence per share, compared to adjusted profit of GBP3.44m or 9.5 pence per share in the prior year.

"We have excellent innovation skills within our group, broad production capability and diversity in our product portfolio - all of which equip us well to deal with the challenges we face," said Finsbury chairman David Marshall.

Martin Lightbody, the company's chief executive designate, added: "Challenges, such as the economic environment in which we are operating, bring opportunities. Finsbury is in great shape to seize them."