4 Finsbury Food Group Annual Report & Accounts 2016
Chief Executive’s Report
From substantial investment to significant growth
Finsbury has a clear vision and strategy, is whilst also stepping up capital investment opportunities.
Integrating the Fletchers and Johnstone’s prior year acquisitions whilst cementing a stronger platform for future growth were our twin change is delivered in increments, a gradual evolution of the key elements of a business. Integration of acquired businesses takes teams across all business have responded with energy and expertise to share knowledge, unlock synergies in a timely fashion and share best practice.
Strategically the Group achieved further products following the prior year acquisitions. Over 21% of our UK bakery sales are now into the faster growing ‘out of home eating’ foodservice channel, from zero two years ago, with foodservice items supplied from six of our eight bakeries. We also sell a vast array of specialty cake, bread and morning good products to all major UK grocery retailers from premium to discounter.
the Group, the fruits of change are emerging. rise in top and bottom line growth for the current following the acquisitions, it was pleasing to expectations for shareholders.
Results in Perspective
Our business is performing strongly. Organic growth of 5% for the year was well spread, exceeding that of the markets we operate in and our initial expectations, especially in the
The UK bakery division like for like growth of 3% was strong but outshone by stellar growth of over 25% in the Overseas division, the Group’s 50% owned European business, as a result of improved distribution of licensed celebration cake and free from bakery ranges. UK bakery products, customers and channels given the largely new mix brought by both Johnstone's and Fletchers.
Consumer appetite for the breadth and quality of growth of our premium traditional bespoke products, such as artisan breads and licensed celebration cakes.
Our drive to advance has been constant. We are investing across all aspects of the business to deliver a stronger platform for future growth.
Investment comes in many forms and our scale requires the correct level of infrastructure. The record £12m annual capital expenditure being most tangible which has facilitated a new artisan bread bakery, increased hot cross bun capacity and further cake automation, ensuring price for our customers.
Our people are essential to the continued success of the larger Group. As such we have set out to strengthen our culture and the Finsbury way of doing business. Working from the bottom up in small groups at each site we have agreed on a common set of Finsbury Group values, these will cement our approach and behaviours as a business. A more comprehensive long-term people strategy has also been created and is now being rolled out. Elements of this include improving employee engagement, implementing talent leadership development programme.
in business process is essential. We constantly added elements of our business processes. One especially noteworthy project is the upgrade and ongoing roll out across the Group businesses of the Fletchers IT software platform following a comprehensive best practice review.
business is in good shape for the growth opportunities and challenges ahead, with strongly performing businesses and a strong balance sheet.
The devaluation of Sterling post Brexit will, if for many of our raw materials regardless of any shopping behaviour. Planned future National our costs and put pressure on our margins.
We have demonstrated our ability to grow organically as well as by acquisition, which is important for the journey ahead. Investment has already been prioritised as an integral part of our strategy to better prepare us for the uncertain environment ahead, improving our and consumer needs.
the Finsbury Group for their dedication In particular I would like to recognise the major contribution by new people coming into the Group over the past few years.
strategy adopted and well laid foundations business in the years ahead.
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