How Harry Potter has helped boost the fortunes of Scottish cake maker Lightbody

Lightbody owner ­Finsbury Food Group has served up some appetising numbers with a little help from Harry Potter and some new gluten-free cakes.
Lightbody owner Finsbury Food Group has launched a new line of Harry Potter licensed cakes. Picture: Warner BrosLightbody owner Finsbury Food Group has launched a new line of Harry Potter licensed cakes. Picture: Warner Bros
Lightbody owner Finsbury Food Group has launched a new line of Harry Potter licensed cakes. Picture: Warner Bros

The firm, which is a major employer in Scotland with hundreds of staff across its bakery businesses in Hamilton and East Kilbride, said group revenue had risen 4.7 per cent to £159.4 million in the first half of its financial year, compared with £152.3m a year earlier, with UK bakery sales up 5.8 per cent.

Profit before tax was up 17.9 per cent to £8.8m, from £7.5m last time, while the interim dividend was increased 6 per cent to 1.23p per share.

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The stock market-listed group highlighted a number of innovations “in line with consumer trends”, including the launch of a new line of Harry Potter licensed cakes, gluten-free cakes and “artisan” sourdough breads.

Bosses also pointed to the implementation of a group-wide review and “standardisation of bakery processes” which has led to improved quality and a reduction in waste.

An expansion in capacity has seen the opening of a new gluten-free bakery in Poland to meet demand for the continental market.

Priorities

Finsbury chief executive John Duffy said: “The first half was both a period of growth and of successful delivery against our strategic priorities.

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“Revenue and profit were up, largely driven by organic performance in UK bakery as well as new business wins and the first full six-month contribution from our Free From business. We made encouraging progress in the optimisation of our cash flow in the period and reduced our debt levels, and are pleased to announce a further increase in the dividend.

“Moving into the second half, while the macroeconomic pressures affecting the industry look set to continue, our long-term, consistent and disciplined approach to investment and unwavering focus on driving increased productivity and efficiency across the group means Finsbury is now a much more resilient business and better equipped to weather difficult trading conditions.”

He added: “Notwithstanding the ongoing market-wide headwinds, there is positive sales momentum in the business and a growing number of exciting opportunities that gives us confidence in Finsbury’s prospects for the full year, which remains in line with expectations.”

Group underlying earnings on an adjusted basis were up 4.1 per cent to £13.5m in the 26 weeks ended 28 December.