Shares at bread and cake baker Finsbury Food (FIF) rallied 6 per cent to 65p on news that full-year profit is expected to be "significantly ahead of expectations", partly helped by the timing of the sale of its Free From division. The pre-close trading statement also revealed that like-for-like sales were "in line with expectations" and the operating margin had improved.
Debt and interest costs have been slashed and, with its balance sheet in order, management has recommended a hike in the final dividend payment to 0.5p, giving a total dividend of 0.75p.
A £3.8m equity placing in the first half combined with the £21m Free From sale in the second half has also allowed Finsbury to step up investment - earlier this month, it announced a 25,000 square foot expansion to its speciality bread bakery.
