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17 Sep 2018 | 08:06

Finsbury Food Group profits slip on rising butter costs

Finsbury Food Group said Monday profits slumped as an uptick in inputs costs, especially butter, weighed on performance.

For the 12 months ended 30 June, profit before tax fell 65.7% to £4.5m and like-for-like revenue fell 2.4% to £290.2m, while group revenue fell 3.4% to £303.6m.

The poor performance was exacerbated by the closure of the company's loss-making Grain D'Or factory, Finsbury said.

The company acquired Ultrapharm Limited, a gluten free bakery manufacturer, for £17m in cash and an additional £3m of deferred consideration.

The acquisition is expected to provide the group with a significant opportunity to access the 'high growth' marketplace, Free From, and broaden the group's manufacturing capabilities into Europe.

The company declared a final dividend a share of 2.2p, taking the total dividend for the year to 3.3p a share, up 10% from last year's dividend of 3.0p a share. 'Our performance over the period has further illustrated the Group's resilience and our ability to deliver against our strategic priorities, ultimately allowing us to grow like for like sales and profit year on year, reduce our debt further after significant investment, and continue to grow the dividend,' said John Duffy, Chief Executive of Finsbury Food Group. 'The ongoing capital investment programme and relentless efficiency focus of recent years has enabled us to not only cope with this challenging market environment but also maintain our margin.' 'We are confident that we are well positioned to deliver on our strategic objectives and capitalise on growth opportunities both organically and through future M&A.' At 8:06am: (LON:FIF) Finsbury Food Group PLC share price was 0p at 124p

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