Cake and speciality bread maker Finsbury Food Group has told the financial markets that both its trading companies, Cardiff based Memory Lane Cakes Ltd and Nicholas & Harris Ltd in Salisbury, have delivered strong performances for the year; both achieving a good level of efficiency, and capacity utilisation.
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In addition, cross-selling opportunities between the Group’s two subsidiaries are being increasingly developed, the company said in a statement to the financial markets ahead of its preliminary results for the year ended 30 June 2005 which are to be announced on 20 September 2005.
The board reported at the half-year that Memory Lane had achieved a successful Christmas trading period. Memory Lane continued to perform well in the second half of the year and to push forward the plans from the strategic review that was carried out in the Spring of 2004, specifically: Improving margins primarily by exiting low margin, non core activities, strengthening of the operational management team and targeted capital expenditure to reduce costs
Memory Lane is continuing to drive its Nestlé branded business. A range of new products was launched in the spring of this year as part of the strategy to create a dynamic innovative range of high quality attractive products. Utilising the group’s experience in brand management and extensive innovation capability, the business continues to achieve new listings and sales are proceeding in line with targets, it said.
Nicholas & Harris has also delivered a strong performance in the year to 30 June 2005. Works to extend the premises are now complete and are helping the business support the growing demand for its products from its key customer, Waitrose.
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By GlobalDataHelped by Memory Lane’s existing relationship with Asda, Nicholas & Harris has been successful in securing them as a customer with a range of products now available through their stores, and further product development under-way,. Additionally, Nicholas & Harris continues to develop relationships with other major retailers.
New product development and innovation are the life blood of the business and the license agreement for use of the Village Bakery organic brand has created an excellent platform for the development of a number of exciting new products in the high growth organic bread sector, the company said.
Finsbury Food Group continues to pursue its buy and build strategy and believes that exciting opportunities exist within the sectors in which it operates. The group has identified a number of specific opportunities which it intends to pursue over the coming months. The Group is benefiting from a positive net cash position following strong trading and the land sale in January, and expects to be able to fund future growth plans without recourse to the equity markets in the initial phase of its strategy implementation.
“I am delighted that the hard work put in by our dedicated teams in both businesses is paying off,” said Dave Brooks, chief executive of Finsbury Food Group plc. “We continue to strive to be the best at what we do and provide top quality products and service to our wide range of customers. Innovative new products in our Nestlé range are gaining listings and creating a solid presence for the brand. Our positive cash position combined with a strong tangible asset based balance sheet leaves the business well positioned to take full advantage of the opportunities that the dynamic markets in which we operate offer. We are optimistic about the year ahead.”
