3 Finsbury Food Group Annual Report & Accounts 2016
Our structures and processes are adjusting and responsibilities have been taken on by many and we continue to invest in people in order to train and develop our dedicated teams. The Board is undergoing changes as well, ensuring the composition, skills and governance are appropriate for the future.
From the outside, without the previous year’s acquisitions of Fletchers and Johnstone’s it may exciting and busy. However, delivering on our vision, integrating these acquisitions and embarking on some exciting projects, whilst has actually meant that has been far from the case.
The Results
assisted somewhat by the prior year’s acquisitions with turnover for the 53 weeks at just under £320m, up 24.8% (52 weeks, £16.0m for the 53 weeks, up 41% (£15.7m 52 weeks, up 38%) and debt at 0.8 times EBITDA.
Importantly, the underlying business performance was strong and exceeded expectations in a number of areas, including the Report.
This favourable outcome has been achieved through the hard work of Finsbury’s committed team, sound business decision-making and the reliable manufacture and supply of great quality products. The headwinds we encountered were much as anticipated, principally a challenging market place and an uncertain macro-economic outlook, but strong leadership has meant we have overcome these challenges successfully.
One of the hidden highlights this year has been the 5% like for like organic revenue growth that the business has achieved, particularly when
market, with a demanding customer base and a discerning consumer. The emphasis and investment put into innovation, helped by new facilities and driven by talented NPD teams, has really delivered for the Group and is an excellent platform for the future.
Investing for the Future
The Group, along with other food businesses, commodities cost increases, further driven by currency weakness post Brexit and the
The teams have done an excellent job in anticipating these changes and our plans and investments are aligned to dealing with capability and the will to invest for the future. We are investing in new plant, equipment and systems as well as taking on the important change of sustainability and environmental responsibility.
The additional work required to deliver such projects successfully is often forgotten but it is a great testament to the teams to have not just maintained performance, but actually to have bolstered it, whilst undertaking an extensive programme of investment and integration.
Board Development
Alongside the work on business and strategy The Board needs to have the appropriate skills and experience and a clear remit and purpose, across all areas that are being worked on and developed.
In terms of corporate governance, we are focusing on our processes and procedures to ensure that they are in line with best practice and relevant for a business of our size and position. Typically the Board meets at one of our sites to combine the normal meeting agenda with a site update, to ensure, amongst others, that the Non-Executive Directors are well briefed. Our committees have also delivered excellently this year, particularly as both have taken on increased workloads driven by the acquisitions and changes that were undertaken.
During the year we announced the addition of two new Non-Executive Directors, Marnie Millard and Zoe Morgan, and the forthcoming retirements from the Board of Paul Monk and Edward Beale, at the 2016 AGM. I look forward to working with Zoe and Marnie and thank Paul and Edward, who each have been on the Board for over 14 years, for their outstanding contribution and commitment to the Group.
Strategy for Continued Growth
The Board has devoted a lot of time this year to reviewing the Group’s strategy. As we are a much larger business and in a much stronger position than previously, we can be ambitious in our plans to grow the business still further. Step changes in turnover will only be achieved through further acquisitions. We are clear on the areas and sectors that are attractive and our prudent approach will be maintained to ensure so only if the right opportunities present themselves.
The foundations are laid for the next steps and we are looking forward to another successful year.
Finally, on behalf of the Board I would like to thank everyone who works at Finsbury for delivering such a successful year, their contribution and passion continues to drive the business forward.
Dividend
Subject to shareholder approval at the Company’s AGM on 23 November 2016, the paid on 16 December 2016 to all shareholders on the register at 18 November 2016 and will 1 July 2017.
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