Finsbury Food Group - Trading and COVID-19 Update
On behalf of:
For immediate release
Trading and COVID-19 Update
Following the strong results announced in February, trading in the first two months of the second half of our financial year was tracking in line with market expectations.
Since then, as the effects of COVID-19 on the
While the performance of the largest part of the Group, retail, is proving resilient with overtrade in bread and pockets of weakness in cake, trading in our foodservice business is likely to continue to be significantly impacted in the immediate term as a consequence of the closures. We are in the very early stages of understanding the impact of the virus on our business and, with the situation being as fluid as it is, it is not currently possible to provide guidance on future earnings.
Response to COVID-19
As a manufacturer of a wide range of baked goods, we are committed to playing our part in ensuring the
Considering the actual and anticipated change in demand across the business, the Board is taking actions to manage short-term costs, while ensuring the business remains on a sound footing to deliver on its longer-term growth ambitions. These include:
- Temporarily suspending production at our Kara site in
- The freezing of all discretionary expenditure and capital investment; and
- Careful management of cash resources.
The Board has also taken the decision to withdraw its proposed interim dividend, as announced on
At the end of
We have strong relationships with our three banks and have been in regular dialogue with them since the onset of COVID-19. They remain highly supportive and the Board is comfortable that it will be able to manage the situation from its current financial position.
Until we have more visibility over the COVID-19 situation, we will continue to manage the business with a view to securing maximum stability in the short term for shareholders, employees, customers and suppliers and will provide the market with updated guidance on performance as and when appropriate.
While the virus will continue to have an impact on normal trading patterns in the near term, the fundamentals of the business remain sound, and the Board is confident in the Group's ability to withstand the current situation and deliver on its long-term growth ambitions.
"Despite the Group's short-term performance being difficult to predict with any certainty until we have a clearer picture of how COVID-19 will develop, we are encouraged by the healthy demand we continue to see in the larger retail side of our business.
"While the coming weeks and months are likely to be some of the more turbulent we've seen, the fundamentals of the business remain sound and we see no reason to believe the virus will damage the longer-term value proposition of the business.
"Our employees across the Group have thus far risen superbly to the challenge, and I would like to take this opportunity to thank them all for their continued hard work and dedication at what is an extremely difficult time, and to reassure them that their well-being continues to be our priority."
This announcement contains inside information.
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Notes to editors:
· The Company is one of the largest speciality bakery groups in the
· The Company's bakery product range is comprehensive and includes:
o Large premium and celebration cakes.
o Small snacking cake formats such as cake slices and bites.
o Artisan, healthy lifestyle and organic breads through to rolls, muffins (sweet and savoury) and morning pastries, all of which are available both fresh and frozen dependent on customer channel requirements.
o Gluten Free bread, morning goods and cake ranges.
· The Company is one of the largest ambient cake manufacturers in the
· The Company comprises a core
o The Overseas division comprises the Company's 50% owned company,
This information is provided by RNS, the news service of the
Quick facts: Finsbury Food Group
Market Cap: £76.93 m
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