Finsbury Food Share Discussion Threads

[aleman] 25/1/2013 16:56

Yep. Frisky. And a 4½ year intraday high.

[woodcutter] 25/1/2013 16:52

some very big sales this pm and the share price rises. Lightbody selling to satisfy institutional demand?

Bigfrocks i can understand you excitement but some of us have been here an eternity waiting for this to get recognised, it's been undervalued a long time so take a few valium and calm down ;-)

Woody

[spaceparallax] 25/1/2013 16:44

That's okay but don't be too publicly vocal about it.

[bigfrocks] 25/1/2013 16:43

I love myself!!

[spaceparallax] 25/1/2013 16:26

sp looking really positive towards close

[spaceparallax] 25/1/2013 15:55

and most importantly for a quoted company, they continue to deliver consistency of positive performance despite the recent tough times

[this_is_me] 25/1/2013 15:54

FIF is in a low margin business; the margins look good for the sector.

[spaceparallax] 25/1/2013 15:02

Yep, I'd say 50p is comfortably possible.

The issue of margins is valid, but given the continued growth in T/O and reduction in debt provides me with plenty of confidence in the FIF operations.

[aleman] 25/1/2013 14:58

Chart starting to look frisky again. It seems to be an invitation to have a go at 50p. 60p seems a bit ambitious without further news.

[spaceparallax] 25/1/2013 11:38

amazed that the share price hasn't responded more positively ....so far.

[aleman] 23/1/2013 16:48

The key is the increase in margins. Margins are so slim that a modest increase in margins can produce a nice profit increase. Operating profit margin was about 6% (from memory - I'm very busy hence the late post). An increase to 6.5% would produce an uplift of about £1m at the operating and pretax level. The forecast is for a rise from £6.5m to £6.9m in pretax profit. So what do they mean by a slight increase in margin and will forecasts be tweaked up or is that margin increase already in the price?

[woodcutter] 23/1/2013 13:59

i think we're going to need the divi restored to break through the 45p barrier.

WC

[markt] 23/1/2013 13:59

Oh, BTW
one item reference the 'recent' new share issue of 10M new shares...

is large reduction in turnover etc per share.

turnover was approx. 200M and 53M shares
now approx. 200M and 63M shares


so
was 3.77 pnds turnover per share
now 3.17 pnds turnover per share

imo some of the other ratios/numbers are also reduced in similar way....
...'if' it produces the hoped for lower production costs then it should benefit some of the numbers....but if the competitors do the same and/or supermarkets take note and reduce prices to give little nett benefit to FIF....or if inflation in raw materials, staff etc just cancel the gain, then nett benefit may be cancelled out

----

BTW in latest RNS
Cake division has produced -ve turnover numbers...
and use of the word 'challenging'

----

Anyone have any suggestions for a solution to the never ending reducing margin and the over powerful pricing pressure of the supermarket chains ?

(with the significant % reduction in sales in France, 17% I think...it looks like the possibility of on-going expansion abroad has ended...)

[hastings] 23/1/2013 13:19

Appears to going rather well here,likewise for those who bought in at a low level.

[spaceparallax] 23/1/2013 11:10

Well done FIF, they're doing a great job to progress in these tough times - the continuing debt reduction is particularly heartening

[topvest] 23/1/2013 09:01

Yes, they are very canny in their statements - always talking...it's a very difficult market - low margins etc! Clever positioning given their customers will no doubt be reading. All looks well set for a start to dividends again with the final results.

[this_is_me] 23/1/2013 07:59

Still lookong like a P/E for the current year of 5. That is still far too low.

[boffster] 23/1/2013 07:43

Good statement. Remember that the free from area of the business is the highest margin, while LBE is the lowest.

[bonio10000] 23/1/2013 07:36

meh statement

[s34icknote] 23/1/2013 07:20

Hi guys
Looks like growth is slowing and materials increasing .
Still cheap on but can't see the the share price moving forward on this statement. To me raising money to update machinery when they should use existing cash flow.
Good luck all

[skinny] 23/1/2013 07:12

Total Group sales revenues increased to £103.3m, versus £102m in the prior year period, in line with management expectations for the period.

The UK Cake business grew 2%, £1.1m, broadly in line with the market whilst as forecast Lightbody Europe, the Group's 50% owned joint venture business, declined by £1.6m or 17% due to adverse exchange rate movements.

The Group's Bread and Free From division continued to deliver strong growth, an increase of £1.8m or 7% versus the prior year, to give total sales of £27.4m for the period. This is an encouraging continuation of the divisions long term performance trend.

Our outlook on the trading environment has stood us in good stead during the first half and remains unchanged for the second half. Consumers remain under considerable financial pressure and continue to be value conscious and deal focused. Key ingredients such as sugar, egg and flour are also inflationary as are more general costs such as energy. Finsbury's focus on internal efficiency improvements as well as sales growth and recovery of commodity inflation via pricing has been successful in slightly improving first half operating margins although they remain low.

The Group remains confident of continuing to achieve growth and efficiency opportunities across its businesses and is trading comfortably in line with profit and debt reduction expectations.

[spaceparallax] 22/1/2013 10:53

Good to see the fundies topping up

[woodcutter] 21/1/2013 16:44

well with the diverse income trust topping up maybe we're going to see a divi after all. Don't hold your breath;-)

WC

[s34icknote] 12/1/2013 10:30

What's the forecast eps now ?
I sold out after rights . Looks like moving up with th market ?