2 Finsbury Food Group Annual Report & Accounts 2017


Group Revenue 0.2%


Adjusted Operating Profit


£314.3m £17.4m £16.6m £12.5m 3.0p


4.2% Adjusted Profit before Tax 5.6% Capital Investment 3.3% Total Dividend 7.1% Strategic Highlights


• Capital investment including a new state of the art cake line which will be fully operational in financial year 17/18, an exciting new cupcake capability to augment the Group’s licensed product range and a range of packing automation investments.


• New artisan bread facility opened, baking for retail and foodservice customers.


• Sales to continental Europe up 15% to £38.1m.


• Entered into consultation to close Grain D’Or, the loss making site in North London which manufactures premium baked goods in the UK pastry sector.


• Employee engagement programme commences following on from successful roll out of vision and values throughout the Group.


• A new multiyear licensing agreement with Thorntons and new brand licence engagements with Mary Berry and Mars, with a range of Mary Berry cakes launched in the second half of the year.


• Winner of Celebration Cake Business of the year for 2016 at the Bakery Industry Awards and multiple food quality awards: Quality food award, Café Quality food award, Grocer Own Label innovation award and International Licensing award.


Unless stated otherwise stated the figures quoted for the prior year are for a 53 week period. Adjusted EBITDA


£24.9m 9.8p


2.7% Adjusted EPS 2.1% Net Debt £17.5m 11.2%


Contents


01 Highlights 03 Chairman’s Statement 05 Chief Executive’s Report 09 Strategic Report 20 Report on Corporate Governance 21 The Directors 23 Directors’ Report 25 Audit Committee Report


27 Directors’ Remuneration Report (unaudited)


28 Directors’ Remuneration Policy Report (unaudited)


33 Statement of Directors’ Responsibilities in Respect of the Annual Report and the Financial Statements


34 Independent Auditor’s Report to the Members of Finsbury Food Group Plc


38 Consolidated Statement of Profit and Loss and Other Comprehensive Income


39 Consolidated Statement of Financial Position


40 Consolidated Statement of Changes in Equity


41 Consolidated Cash Flow Statement


42 Notes to the Consolidated Financial Statements


72 Company Balance Sheet


73 Company Statement of Changes in Equity


74 Notes to the Company’s Financial Statements


82 Advisers


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