Finsbury Food Group plc, a manufacturer and distributor of premium cakes and breads, has announced that the sales growth reported at its AGM on 29th November 2006 has continued. At the half year, Memory Lane Cakes Ltd was showing a 5% increase on the comparable period of 2005, with Nicholas & Harris Ltd up 18% year-on-year.   

 

 In addition, for the six weeks from mid November (i.e the date of acquisition in 2005) to the end of December, the combined sales of California Cake Company Ltd and Campbells Cake Company Ltd were up 25% for that period. The California bakery received organic accreditation and is awaiting formal certification.    

 

As a consequence of the fire at United Central Bakeries Ltd (“UCB”) on 31st October 2006, comparable sales numbers are not available for this business. However, the Board reported that UCB continues to make good progress in its recovery program. The gluten-free bakery was back in operation from mid December 2006 and all other production has now been outsourced, with yum yums returning to supply in early January. Replacement equipment has been ordered and it is expected that the site will be back in full operation by May 2007.   

 

Range relaunches have been successfully undertaken with three multiple grocers and a further three will expand their premium ranges in March/April, with Memory Lane and Campbells providing the majority of the products concerned. In addition, the first quarter of 2007 will see a concerted push on the current Nestlé   

 

range with additional listings for the current products in more retailers and new celebration cakes being introduced to the market.   

 

As a result, the Board is confident about the Group’s prospects for the remainder of the year and expects that the Group’s profit before tax and exceptional items for the year to June 2007 will exceed current market forecasts.