1st September 2015
Ian Forrest, investment research analyst at The Share Centre, explains why he has picked Finsbury Food Group as share of the week…
AIM market-listed Finsbury Food Group is our choice for share of the week. As the producer of a wide range of baked goods for supermarkets, wholesalers and restaurants, the food producer’s interim results showed it is on the rise. The group’s strong performance has been mainly credited to its recent acquisition of bakery group Fletchers, which came through earlier than expected. Interested investors should also note that the prospective dividend yield of 2.9% is fairly good for the sector and is well covered.
Due to the group’s recent acquisitions, diverse customer base and good relative value, this is definitely one to watch amongst its peers. The café and convenience food service sectors have been growing steadily in recent years and Finsbury Food is a beneficiary of this growth. For investors, we are currently recommending now as a time to ‘buy’ into Finsbury Food. We see this stock as one for higher risk investors who are seeking growth.