Finsbury Food Group shares tipped as a ‘buy’ as firm’s pre-tax profits jump

21st September 2015


As Finsbury Food Group reports its latest numbers, Ian Forrest, investment research analyst at The Share Centre, explains what it means for investors…

Building on organic growth, investment and acquisitions have been transformational for bakery products group Finsbury Foods, which reported a strong set of full year results on Monday.

Pre-tax profits rose 76% to £11.4m, supporting an increase in the final dividend to 1.67p, taking the total to 2.5p for the year.

Furthermore, revenues were up 6.1% on a like-for-like basis to £256.2m profits.

Despite analysts expecting higher earnings than reported this morning, investors should acknowledge that revenue was ahead of expectations.

We maintain our ‘buy’ recommendation on Finsbury Food Group for higher risk investors due to the growth potential of recent acquisitions, the diverse customer base, good relative value and the helpful underlying economic picture of rising wages and low inflation.

Higher consumer confidence and spending will benefit companies such as Finsbury Foods and its customers. Interested investors will note that the share price has risen strongly since it posted interim results earlier in the year but the stock still trades on a valuation that looks tempting.

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