Finsbury Food Group share price rises after bumper £56m takeover of rival baker Fletchers

 
Oliver Smith
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Finsbury Food Group acquired Fennel Acquisition Limited in October (Source: Finsbury Foods)
Cake and bread-maker Finsbury Food Group said revenues grew to £57.3m during the four months to 27 September, showing organic growth of 3.9 per cent in the period.

The trading statement came ahead of Finsbury’s annual shareholder meeting yesterday, where all the group’s resolutions were passed, and follows its £56m takeover of rival bakeries group Fletchers last month.

“The UK bakery division grew by five per cent, with a particularly strong performance from the cake business. The overseas division, the company’s 50 per cent-owned joint export business, declined by 3.1 per cent as it reduced the level of promotional sales versus prior year to optimise returns,” said chairman Peter Baker at the meeting.

In October, the group acquired Fennel Acquisition Limited, parent company of privately held bakeries group Fletchers, in a £56m deal that roughly doubled the size of Finsbury.

“The directors are confident that the anticipated sales growth and scale efficiency benefits anticipated at the time of the acquisition will be realised in the coming months and years,” said Baker.

Shares in Finsbury rose 4.13 per cent yesterday to 63p.

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