Finsbury Food Group will be launching a new cake range with Mary Berry in the second half, but its share price fell at the open after it gave a cautious outlook on the year ahead.
For the 26 weeks ending 31 December, group revenue was flat at £156.6m. Profit before tax rose 5.3 per cent year-on-year, up from £7.5m to £7.9m. Operating profit was up four per cent, from £8m to £8.3m.
At time of writing, Finsbury's share price was down 1.7 per cent.
Finsbury has its finger on the pulse when it comes to food, jumping on the growing demand for artisanal breads by opening up a new facility to bake higher-quality loaves. The group is also harnessing the UK's love of Great British Bake Off, and has secured another license with Mary Berry. New cakes from the Mary Berry ranges will be launched in the second half.
However, Finsbury was cautious with its outlook this morning. It warned that "market challenges persist". UK manufacturers and suppliers are contending with cost price increases due to the fall in the value of the pound, forcing companies such as Premier Foods, which makes Mr Kipling cakes, to push up prices for supermarkets.
John Duffy, chief executive of Finsbury Food Group, said: "Well-documented market challenges persist, however the group has prepared well and is continuing to work hard to mitigate against these.
"Furthermore, the group's track record of exceptional growth and diversification over the prior years illustrates that it has the right strategy in place to continue to deliver growth and improved shareholder value over the coming years."