1 Finsbury Food Group Annual Report & Accounts 2019


Strategic Report Highlights


The Group has grown sales year on year, outperforming the market in a challenging and uncertain environment, and in the face of cost inflation. This is thanks to our continuing investment in innovation and efficiency, and an extensive knowledge of our markets and the needs and wishes of our end consumers.


• Completed the acquisition of Ultrapharm, a manufacturer of gluten-free bread and morning goods both in the UK and in Europe.


• Second half like for like growth of 7.5% compares to first half of 0.5%, reflecting significant new business gains.


• Investment in automated individually wrapped cake bar capacity was followed by the successful launch of a new range of cake bars for ‘on the go’ consumption.


• Significant number of product launches including the new ‘vegan’ brioche style burger bun into foodservice, approved by The Vegan Society and a new line of Mary Berry cakes.


• Group-wide review of bakery processes is leading to the standardisation of best practice with tangible improvement in quality and consistency and reduction of production waste.


• Award wins include Bakery Manufacturing Company of the Year and several Quality Food Awards .


• Successful roll out of a new IT platform, across all companies in UK bakery.


• Introduced Workplace by Facebook across the Group to drive collaboration.


*1


Like for like revenue is the revenue from operations excluding the revenue from the closed bakeries and acquired businesses.


*2 Profit is before significant non-recurring and other items. *3


Adjusted EPS has been calculated using earnings excluding the impact of amortisation of intangibles and significant non-recurring and other items as shown on the face of the Statement of Comprehensive Income. The adjusted diluted EPS and adjusted EPS have been given, as in the opinion of the Board this will allow shareholders to gain a clearer understanding of the trading performance of the Group.


Highlights


The figures are for the 52 weeks ended 29 June 2019 and 52 weeks ended 30 June 2018:


Adjusted Operating Profit


2019 £000


Operating profit


Significant non-recurring items – SNR (refer to Note 5 for detail)


Difference between Defined Benefit Pension Scheme charges and cash cost


Movement in the fair value of foreign exchange contracts


Adjustments, SNR and other items Adjusted operating profit


Adjusted Profit before Tax


2019 £000


Profit before tax


Significant non-recurring items – SNR (refer to Note 5 for detail)


Difference between Defined Benefit Pension Scheme charges and cash cost


Movement in the fair value of foreign exchange contracts


Discounting of deferred consideration


Movement in the fair value of interest rate swaps


Adjustments, SNR and other items Adjusted profit before tax


13,576 1,200 444


178 139


382 2,343 15,919


2018 £000


4,475 13,067 (134)


(49) -


(143)


12,741 17,216


Adjusted operating profit and profit before tax exclude significant and non-recurring and other items as shown in the tables above and includes amortisation of intangibles. The adjusted operating profit has been given as, in the opinion of the Board, this will allow shareholders to gain a clearer understanding of the trading performance of the Group.


Adjusted EPS has been calculated using profit before amortisation of intangibles, significant non-recurring and other items as shown in the tables above net of associated taxation. Other than significant non-recurring items, the adjustments to EPS reflect non-cash items (including amortisation of intangibles). In the opinion of the Board, the adjustments made will allow shareholders to gain a clearer understanding of the underlying trading performance of the Group.


15,293 1,200 162 178 1,540 16,833


2018 £000


5,237 13,067 (411) (49)


12,607 17,844

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