Finsbury Food Group has reported a 19% jump in full-year adjusted profit before tax to £5.5m.
The baker also reported a 1.3% drop in sales from continuing operations to £176.6m for the year ending 29 June. It said adverse currency fluctuations affecting its overseas operations was the main reason for the fall.
Earlier in the year, Finsbury sold its free-from business for £21m to focus on its core bread and cake businesses. The divestment has helped reduce the group’s net debt 78% to £7.4m.
“These results signal the Group’s shift from a transitionary period, to a new period of financial stability. Whilst a strategic disposal has driven this change, the Company is trading maturely, paying down debt and generating cash,” said Finsbury CEO John Duffy.
He said organic sales growth was now the priority – although the company is also on the lookout for bolt-on M&A opportunities.
Finsbury has recently secured a long-term lease on the property next to its Nicholas & Harris bakery in order to boost the capacity of its specialty bread business.