Cake maker Finsbury Food Group has said, in an update on current trading, that it expects pre-tax profit for the year so far to exceed current market forecasts.
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The board announced that strong operational efficiencies and overhead controls have continued throughout the current financial year.
The group said that the 2005 Scottish acquisitions California Cakes, Campbells Cakes, and United Central Bakeries are fully integrated and contributing well.
In the trading update, Finsbury identified its GBP1m (US$1.84m) investment in a new small cake line at Memory Lane Cakes, in a move towards achieving a strong position in this sector of the premium cakes market.
The company said that general market conditions are expected to remain challenging but the board is confident that its focus on added-value segments of a GBP5bn bakery market offers the greatest opportunity for earnings growth.
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By GlobalDataFinsbury Food Group chief executive Dave Brooks said: “Over the last two years, the group has become focused on our mission to be ‘The best at what we do’ and ensuring that we develop in growing market segments. Each subsidiary management team has totally embraced this concept and I am delighted for those people that their efforts and commitment are being rewarded with the excellent performance in the year to June 2006, and a busy launch program in the next six months.
“As a group, our focus over the next 12 months will be on maintaining operational excellence, keeping a tight control on our cost base and consolidating our position as the leader in thought and action in our target markets. With the wider product range we now have following our Scottish acquisitions, we have an excellent base from which to drive forward in what will remain a very competitive marketplace.”
