StockMarketWire.com - Finsbury Food Group's revenues have grown in the first four months of its new financial year and trading is in line with expectations, shareholders at the annual general meeting today will be told.

In addition to the AGM statement, Finsbury also announces the unaudited interim results for the 26 week period ended 27 September for Fennel Acquisition Limited ('Fletchers'), which was acquired on 30 October.

Finsbury's chairman will tell the AGM: ""In the first four months of the new financial year, total Company sales revenues grew to £57.3m. This represents organic growth of just over £2.1m, an increase of 3.9% versus prior year as the Fletchers acquisition was completed at the end of this period. The UK Bakery division grew by 5%, with a particularly strong performance from the Cake business. The overseas division, the Company's 50% owned joint export business, declined by 3.1% as it reduced the level of promotional sales versus prior year to optimise returns.

"As forecast, our operating environment remains challenging as shoppers continue to focus on value, with input cost inflation moderating slightly but still remaining a factor. The actions taken last year to reduce overhead costs and reinvest in additional sales growth have been successful. The efficiency benefits of the ongoing capital investment programme are also now being successfully delivered, which will lead to an improvement in our operating margins during the course of this year and beyond.

"Shareholders will be aware that the acquisition of Fletchers by the Company completed on 30 October 2014. 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. "Overall the Directors are pleased to report positive trading performance for the Company as a whole and in line with the Board's expectations."

Finsbury says Fennel Acquisition Limited made a pre-tax profit of £1.8m for the 26 weeks to 27 September against a loss of £907,000 a year ago.

Gross profits rose to £10.9m - up from £9.4m last time.



At 8:15am: [LON:FIF] Finsbury Food Group PLC share price was +0.5p at 61p



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