Shares in UK cake maker Finsbury Food Group tumbled this morning (30 September) after the company reported a slide in annual profits.
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Finsbury, the UK’s number two cake maker and a business which makes products for the likes of Nestle, Weight Watchers and Thorntons, posted a 34.7% fall in pre-tax profits to GBP5m (US$8m) for the year to 4 July.
Some GBP1.9m in one-off costs, predominantly linked to integrating recently-acquired businesses, hit Finsbury’s earnings. EBITDA stood at GBP10.4m compared to GBP13.3m a year earlier, while net profit reached GBP1.4m – a fall of almost two thirds on the year.
Despite an 8% rise in revenue to GBP178.9m, shares in Finsbury were down 14% at 27.5p at 09:33 BST.
“We have spent the last year integrating our business to drive improvements in efficiency, quality and service,” said chief executive Martin Lightbody. “Having invested in our understanding of our markets and customers we have adjusted our product ranges and sales strategies to fit in line with changing customer and consumer demands.”
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By GlobalDataThe group also announced this morning that Lightbody is set to become Finsbury’s chairman in November. John Duffy, the company’s COO, is set to take the top executive job at the company with immediate effect.
Finsbury’s current chairman, David Marshall, will stay on the company’s board as deputy chairman.
Click here for the full preliminary results from Finsbury. Check back later for an interview with Finsbury’s senior management.
