7 Finsbury Food Group Annual Report & Accounts 2019


Business Model


Our vision is to be a leading speciality bakery group, producing a broad range of high-quality products targeted at growing channels and market niches, and which deliver growth and differentiation for our customers while fulfilling the needs of end consumers.


The Resources we Employ Financial Capital


The Company is AIM-listed giving it the potential to access institutional funding. The Group also benefits from bank support for strategic investment and acquisitions.


• 3 banks supporting total facilities up to £90.0 million. • Scottish and Welsh businesses benefit from local government initiatives to promote investment and employment opportunities. • Low leverage with net debt to EBITDA of 1.4x.


Intellectual Capital • Extensive speciality bakery product know-how, category insight and understanding.


• Extensive customer relationships in both the retail and foodservice sectors in the UK and in France. The acquisition of Ultrapharm delivers new customer relationships throughout Europe.


• Known brand in foodservice in the UK. • Licence arrangements with brand owners in the UK and in Europe.


Manufacturing Capital


• Plant and machinery well invested and maintained, with flexibility to cover niche to mainstream products.


• The Group owns all major sites, with available space for new production or consolidation of facilities. • Common Group IT ERP platform.


Human Capital • Talent management programme to attract and develop graduates and other employees.


• Structured learning programmes and performance development review process.


Relationship Capital


• Long-term relationships with key partners, suppliers and customers.


Social and Natural Capital


• Signed up to Fairtrade, sustainable sourcing for ingredients. • Food safety and technical standards are maintained to the highest level.


• Health and Safety (H&S) is a top priority for the Group, with a largely uniform H&S system across the business units and the drive forward of the 'Home Safe Every Day' strategy.


Operating Principles in Action Operating Excellence


• Sustained strategy to invest in the capability and capacity of our manufacturing assets: – Automated single serve cake bar packing, improving capability and cost effectiveness.


– New gluten-free factory in Poland with modern travelling ovens improving capacity and efficiency. – New IT platform across all sites now complete.


• Group engineering forum standardising processes and practices improving plant performance and reliability.


• Group Process Blueprint leading to specific product design framework and improved efficiency and quality work continues.


• Group bakery efficiency programme being worked up. • Operational supply chain forum set up and objectives set.


Sustainable Approach


• Most Finsbury sites are sending zero waste to landfill already. All are on target to achieve this by 2020.


• All sites have a nominated energy champion responsible for identifying and reducing consumption. Heat recovery projects are underway at several sites, and all lighting will be converted to LED by 2020. The asset investment strategy includes a focus on energy consumption.


• All sites are involved in reducing and eliminating single-use plastics. With good progress already, we are targeting a 50% reduction by 2020.


• A programme of plastic packaging reduction has started across the Group. Where plastic cannot be removed or reduced the aim is to ensure it is all recyclable.


Quality and Innovations


• Extensive insight capabilities mean new product development is in line with market trends.


• Over 60 employees are engaged in developing new products. • Leading organic bakery in the UK. • Manufacturing Process Blueprint embraces the production of high-quality premium product.


• All sites hold BRC A-grade or above for food safety standards. • The Health agenda is embedded into the development process, with over 98% of products achieving 2017 FSA salt targets. Good progress made across all categories in reducing sugar in line with PHE targets, and further research underway to achieve their 2020 objectives. • Acquisition of Ultrapharm gives us scale in Free From.


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