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Highlights

  • Finsbury Food Group PLC (LSE: FIF) is a UK-based specialty bakery that manufactures cake, bread, and morning goods for the retail and food service channels.
  • The group reported 14.7% increase in its revenue in H1 FY23.
  • FIF’s profit before tax also saw an uptick to GBP 6.1 million in the reported period when measured against GBP 5.7 million in pcp.
  • The group’s annual dividend yield stands at ~2.72% based on the closing market of 31 May 2023.

An FTSE AIM All-share listed entity, Finsbury Food Group PLC (LSE: FIF) is one of the leading specialty bakery in U.K. It manufactures  cake, bread, and morning goods for the retail and food service channels. The company operates its segments across the United Kingdom and overseas.

The group has been working towards meeting its long-term growth objective by consistently following three strategic pillars which encompass: Excellence, Growth, and Responsibility. It is striving against the challenging macroeconomic environment and increasing its global foothold by growing organically as well as through various M&A opportunities, coming its way.

FIF is currently working towards enhancing its product capacity by offering new buns and roll lines in its Sheffield factory along with incorporating various innovative gluten-free recipes which might act as a catalyst to increase its organic growth across UK and Europe.

A quick look at FIF’s financial performance

The group secured an increase of 14.7% in its revenue for the first half of the fiscal year 2023. It was registered at GBP 190.9 million in H1 FY23 as compared to GBP 166.5 million in H1 FY22. The surge was on account of the improved product pricing and new product launches which lead to revenue growth in the UK of approx. 13.2% and international revenue growth were recorded at 23.4% in H1 FY23. Further, the profit before tax also saw an uptick to GBP 6.1 million in the reported period (H1 FY23) when measured against GBP 5.7 million in pcp.

The management proposed an interim dividend of GBX 0.87 per share which was paid to the shareholders on 20 April 2023. This brings the annual dividend yield of FIF to approximately 2.72% based on the closing market of 31 May 2023.

Acquisition of Lees Food Ltd.

In January 2023, the group successfully completed the acquisition of Lees Food Limited for GBP 5.7 million. As per the company, the acquisition will bring about GBP 0.9 million of underlying EBITDA and adjusted underlying net sales of GBP 21.6 million. The earnings will be accretive immediately in FY23.

Stock price performance

The stock has witnessed a fall of ~6.12% in the last three months and over the last six months, it has increased by ~5.14%. The stock has a 52-week high and 52-week low of GBX 107.00 & GBX 67.00, respectively.

Top 10 Shareholders:

The top four shareholders collectively hold approximately 13.82% of the total shares in the company. Fidelity Special Values PLC holds the maximum number of shares with ~5.81% shareholding, followed by Fidelity Investment Funds UK Smaller Companies Fund A-Acc with around 3.91% shareholding, as depicted in the chart below. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 31 May 2023. The reference data in this report has been partly sourced from EODHD/Others.