Baker Finsbury Foods (LON:FIF) said the UK’s love of cakes, and early benefits from the acquisition of rival Fletchers, mean it will beat expectations this year.
Profits and underlying earnings (EBITDA) will be ahead of forecasts after strong first half trading carried on throughout the year the company said.
For the year to 27 June, revenue grew 45.8% to £256.2mln, including an increase of 6.1% in organic growth to £10.7mln primarily within its cake division.
The UK bakery division grew 52.2% helped by the acquisition of Fletchers in October, which contributed £69.3mln in revenue.
Capital expenditure, depreciation, debt and associated financing costs were all also lower than forecast.
The takeover of Johnstones Just Desserts last month, however, was too late to contribute.
John Duffy, chief executive, said he was pleased with the profit and EBITDA outperformance in the face of challenging market conditions.
Broker Cenkos Securities called the end of year results “impressive” adding: “having doubled the size of the business the stock has been on a strong run since completing the Fletchers acquisition, up 45% for the year to date.”
Shares were on the way higher again this morning, gaining 6% to 92p.