An Appetite for Growth 
Annual Report & Accounts 2016 Contents
01  Highlights
02  Chairman’s Statement
04  Chief Executive’s Report
06  The Directors
08  Strategic Report
24  Report on Corporate Governance
26  Audit Committee Report
28  Directors’ Remuneration Report (unaudited)
29   Directors’ Remuneration Policy Report (unaudited)
35   Consolidated Statement of Profit and Loss  
and Other Comprehensive Income
36   Consolidated Statement of Financial Position
37   Consolidated Statement of Changes in Equity
38  Consolidated Cash Flow Statement
39   Notes to the Consolidated Financial Statements
69  Company Balance Sheet
70   Company Statement of Changes in Equity
71   Notes to the Company’s Financial Statements
79  Directors’ Report
81   Statement of Directors’ Responsibilities  
in Respect of the Annual Report and the  
Financial Statements
82   Independent Auditor’s Report to the 
Members of Finsbury Food Group Plc
83  Advisers
Summary
•  Group revenue of £319.7m up 24.8%, 52 week revenue  
 £313.5m up 22.4% (2015: £256.2m) and up £12.8m, 5.0%  
 on a like for like basis
*1
.
•  Gross profit of £102.6m up 30% (2015: £78.9m).
•  Adjusted
*
 operating profit of £17.1m up 37.7% on the prior  
 year, for the 52 week period, operating profit of £16.7m is up  
 34.7%, (2015: £12.4m) and up 15.7% on a like for like basis.
•  Group adjusted
*
 operating profit margin of 5.3% (2015: 4.8%).
•  Adjusted
*
 profit before tax of £16.0m up 40.8% (2015: £11.4m).
•  Record capital investment of £12.1m to ensure long-term  
 competitiveness (171% of depreciation).
•  Strong growth in adjusted diluted EPS
*2
, up 19% to 9.5p  
 per share (2015: 8.0p per share).
•  Final dividend per share of 1.87p taking total dividend for  
 the year to 2.80p up 12% (2015: 2.50p per share). 
•  Net debt of £19.7m equates to 0.8 times EBITDA of the Group.  
 Net debt well within the long-term banking facility of £51m  
 available to support current and future growth plans. 
Strategic Highlights
•   Foodservice channel 21.2% (2015: 14.0%) of total UK bakery  
sales, with 6 out of 8 sites now supplying into this channel 
including the launch of a new range of cakes. Revenue is up 
5.3% on a like for like basis, well ahead of market growth.
•   Successful integration of Fletchers Group and Johnstone's 
Foodservices (JFS) into the Group.
•   Implementation of new Group-wide IT business system  
is underway.
Operational Highlights
•  Investment in exciting new innovation for muffins  
 and doughnuts.
•   Investment in hot cross bun capacity and innovation led  
to a record number of hot cross buns produced for Easter.
•  Innovation Centre now fully operational and delighting  
 both customers and staff.
•   Successful roll out of vision and values across all levels 
throughout the Group.
•   JFS winner of Costa supplier of the year.
•   Winner of Celebration Cake Business of the Year for 2016  
at the Bakery Industry Awards.
Highlights 1 Finsbury Food Group  
Annual Report & Accounts 2016
Group Revenue 
£319.7m
 24.8%
Gross Profit 
£102.6m
 
 30%
Profit before Tax  
£16.0m
 40.8%
Final Dividend  
£2.80p
 12%
Net Debt  
£19.7m
 7.0%
Capital Investment 
£12.1m
 65%
EPS  
9.5p
 19%
Highlights 
These figures are for the 53 weeks ended 2 July 2016 and 52 weeks ended 27 June 2015 unless 
stated otherwise.
Adjusted Operating Profit
2016 
(53 weeks) 
£000
2015
(52 weeks)
£000
Results from operating activities 12,791 9,526
Significant non-recurring items – SNR (refer to Note 5 for detail) 
Share options charge 
Difference between defined benefit pension scheme charges  
and cash cost 
Movement in the fair value of foreign exchange contracts
4,290 
-  
 
(117) 
134
3,181
(10) 
 
(100)
(181)
Adjustments SNR and other items 4,307 2,890
Adjusted results from operating activities 17,098 12,416
Impact of 53rd week (371) -
Adjusted results from operating activities for 52 weeks 16,727 12,416
 
Adjusted Profit Before Tax
 
 
2016
(53 weeks)
£000
2015
(52 weeks)
£000
Profit before tax 11,804 8,482
Significant non-recurring items – SNR (refer to Note 5 for detail) 
Share options charge 
Difference between defined benefit pension scheme charges  
and cash cost 
Movement in the fair value of interest rate swaps 
Movement in the fair value of foreign exchange contracts 
Unwinding of the discount on deferred consideration receivable
4,290
-  
31
(219)
134
-
3,181
(10)  
54
(28)
(181)
(105)
Adjustments SNR and other items 4,236 2,911
Adjusted profit before tax 16,040 11,393
Impact of 53rd week (358) -
Adjusted profit before tax for 52 weeks 15,682 11,393
 
* Refer to trading results section within the Strategic Report for further details on the adjusted profits.
* Adjusted operating profit and profit before tax exclude significant non-recurring and other items  
 as shown in the table above and includes amortisation of intangibles.
*1 Like for like growth is calculated using financial data for a 52 week period and only where there are  
 comparative trading figures for the prior year for the acquired businesses. The 52 week period is  
 calculated by eliminating the result for the 53rd week in the financial year ended 2 July 2016. 
*2  Adjusted diluted EPS has been calculated using earnings excluding the 53rd week, amortisation of intangibles,  
 significant non-recurring and other items as shown on the face of the Statement of Profit and Loss and  
 Other Comprehensive Income. The adjusted diluted EPS has been given as in the opinion of the Board  
 this will allow shareholders to gain a clearer understanding of the trading performance of the Group.  2 Finsbury Food Group  
Annual Report & Accounts 2016
F rom stepping stones  
to strong foundations
Chairman’s Statement
“The emphasis and  
 investment put into  
 innovation, helped by  
 new facilities and driven  
 by talented NPD teams,  
 has really delivered for the  
 Group and is an excellent  
 platform for the future.”
Peter Baker
Non-Executive Chairman 3 Finsbury Food Group  
Annual Report & Accounts 2016
Moving the business forward  
to become the leading speciality 
bakery group in the UK, is driving 
our agenda. 
Our structures and processes are adjusting 
and altering to suit the needs of a significantly 
larger and more diversified Group. New roles 
and responsibilities have been taken on by 
many and we continue to invest in people 
in order to train and develop our dedicated 
teams. The Board is undergoing changes as 
well, ensuring the composition, skills and 
governance are appropriate for the future.  
From the outside, without the previous year’s 
acquisitions of Fletchers and Johnstone’s it may  
appear that this financial year has been less 
exciting and busy. However, delivering on our 
vision, integrating these acquisitions and 
embarking on some exciting projects, whilst 
achieving a successful financial performance,  
has actually meant that has been far from  
the case.
The Results
The headline annual financial results were 
assisted somewhat by the prior year’s 
acquisitions with turnover for the 53 weeks 
at just under £320m, up 24.8% (52 weeks, 
£313.5m up 22.4%), profit before tax at  
£16.0m for the 53 weeks, up 41% (£15.7m 52 
weeks, up 38%) and debt at 0.8 times EBITDA. 
Importantly, the underlying business 
performance was strong and exceeded 
expectations in a number of areas, including 
those not benefiting from the acquisitions.  
A full financial review is available later on in 
the Report. 
This favourable outcome has been achieved 
through the hard work of Finsbury’s committed 
team, sound business decision-making and the  
reliable manufacture and supply of great quality  
products. The headwinds we encountered were  
much as anticipated, principally a challenging 
market place and an uncertain macro-economic 
outlook, but strong leadership has meant we 
have overcome these challenges successfully.  
One of the hidden highlights this year has been  
the 5% like for like organic revenue growth that 
the business has achieved, particularly when 
set against a deflationary and competitive 
market, with a demanding customer base and 
a discerning consumer. The emphasis and 
investment put into innovation, helped by new 
facilities and driven by talented NPD teams, 
has really delivered for the Group and is an 
excellent platform for the future. 
Investing for the Future
The Group, along with other food businesses, 
will face inflationary pressures through both 
commodities cost increases, further driven 
by currency weakness post Brexit and the 
National Living Wage. 
The teams have done an excellent job in 
anticipating these changes and our plans 
and investments are aligned to dealing with 
these. The Board has both the financial 
capability and the will to invest for the future. 
We are investing in new plant, equipment and 
systems as well as taking on the important 
change of sustainability and environmental 
responsibility. 
The additional work required to deliver such 
projects successfully is often forgotten but it 
is a great testament to the teams to have not 
just maintained performance, but actually 
to have bolstered it, whilst undertaking an 
extensive programme of investment and 
integration.
Board Development
Alongside the work on business and strategy 
development, the Board is changing to reflect 
the different requirements of the business. 
The Board needs to have the appropriate skills 
and experience and a clear remit and purpose, 
across all areas that are being worked on and 
developed. 
In terms of corporate governance, we are 
focusing on our processes and procedures to 
ensure that they are in line with best practice 
and relevant for a business of our size and 
position. Typically the Board meets at one 
of our sites to combine the normal meeting 
agenda with a site update, to ensure, amongst 
others, that the Non-Executive Directors 
are well briefed. Our committees have also 
delivered excellently this year, particularly 
as both have taken on increased workloads 
driven by the acquisitions and changes that 
were undertaken. 
During the year we announced the addition 
of two new Non-Executive Directors, Marnie 
Millard and Zoe Morgan, and the forthcoming 
retirements from the Board of Paul Monk and 
Edward Beale, at the 2016 AGM. I look forward 
to working with Zoe and Marnie and thank 
Paul and Edward, who each have been on the 
Board for over 14 years, for their outstanding 
contribution and commitment to the Group. 
Strategy for Continued Growth
The Board has devoted a lot of time this year 
to reviewing the Group’s strategy. As we are  
a much larger business and in a much stronger  
position than previously, we can be ambitious 
in our plans to grow the business still further.  
Step changes in turnover will only be achieved  
through further acquisitions. We are clear on the  
areas and sectors that are attractive and our 
prudent approach will be maintained to ensure 
a clear strategic fit. We have the capability both  
financially and in terms of leadership to be 
confident in taking these steps but will do 
so only if the right opportunities present 
themselves.
The foundations are laid for the next steps  
and we are looking forward to another 
successful year.
Finally, on behalf of the Board I would like 
to thank everyone who works at Finsbury 
for delivering such a successful year, their 
contribution and passion continues to drive  
the business forward.
Dividend
Subject to shareholder approval at the 
Company’s AGM on 23 November 2016, the 
final dividend of 1.87 pence per share will be 
paid on 16 December 2016 to all shareholders 
on the register at 18 November 2016 and will 
be recognised in the financial year ending  
1 July 2017. 4 Finsbury Food Group  
Annual Report & Accounts 2016
F rom substantial investment  
to significant growth
2016 has been a tremendously busy 
but rewarding year for Finsbury.  
We delivered on our growth 
aspirations and made great strides 
towards our vision of building the 
leading speciality bakery group in 
the UK focused on quality products.
Finsbury has a clear vision and strategy, is 
demonstrating strong sales and profit growth 
whilst also stepping up capital investment 
to unlock future growth and efficiency 
opportunities. 
Integrating the Fletchers and Johnstone’s prior 
year acquisitions whilst cementing a stronger 
platform for future growth were our twin 
priorities for the last financial year. Meaningful 
change is delivered in increments, a gradual 
evolution of the key elements of a business. 
Integration of acquired businesses takes 
considerable time and effort. Management 
teams across all business have responded  
with energy and expertise to share knowledge, 
unlock synergies in a timely fashion and share 
best practice. 
Strategically the Group achieved further 
diversification of channel, customers and 
products following the prior year acquisitions. 
Over 21% of our UK bakery sales are now 
into the faster growing ‘out of home eating’ 
foodservice channel, from zero two years ago, 
with foodservice items supplied from six of 
our eight bakeries. We also sell a vast array 
of specialty cake, bread and morning good 
products to all major UK grocery retailers  
from premium to discounter.
After several years of unstinting effort across  
the Group, the fruits of change are emerging.  
It gives me great pleasure to report a significant 
rise in top and bottom line growth for the current 
financial year. As the first full trading year 
following the acquisitions, it was pleasing to 
exceed the 2014 equity raise sales and profit 
expectations for shareholders. 
Results in Perspective
Our business is performing strongly. Organic 
growth of 5% for the year was well spread, 
exceeding that of the markets we operate in 
and our initial expectations, especially in the 
first half.
The UK bakery division like for like growth of 3% 
was strong but outshone by stellar growth of 
over 25% in the Overseas division, the Group’s 
50% owned European business, as a result of 
improved distribution of licensed celebration 
cake and free from bakery ranges. UK bakery 
growth was well diversified across different 
products, customers and channels given the 
largely new mix brought by both Johnstone's 
and Fletchers.
Consumer appetite for the breadth and quality of  
our offering is clear, illustrated by the continued 
growth of our premium traditional bespoke 
products, such as artisan breads and licensed 
celebration cakes.
Our drive to advance has been constant. We are 
investing across all aspects of the business to 
deliver a stronger platform for future growth.
Investment comes in many forms and our scale 
requires the correct level of infrastructure. 
The record £12m annual capital expenditure 
being most tangible which has facilitated a new  
artisan bread bakery, increased hot cross bun  
capacity and further cake automation, ensuring 
we offer the right growth products at the right 
price for our customers.
Our people are essential to the continued 
success of the larger Group. As such we have 
set out to strengthen our culture and the 
Finsbury way of doing business. Working from 
the bottom up in small groups at each site 
we have agreed on a common set of Finsbury 
Group values, these will cement our approach 
and behaviours as a business. A more 
comprehensive long-term people strategy 
has also been created and is now being rolled 
out. Elements of this include improving 
employee engagement, implementing talent 
management and offering an enhanced 
leadership development programme. 
As a large, diversified bakery Group, investing 
in business process is essential. We constantly 
strive to reap scale benefits and become more  
efficient, whether automating low skilled bakery  
tasks or removing inefficiencies within non-value 
added elements of our business processes. 
One especially noteworthy project is the upgrade  
and ongoing roll out across the Group businesses 
of the Fletchers IT software platform following 
a comprehensive best practice review.
Looking ahead, the enlarged multi channel 
business is in good shape for the growth 
opportunities and challenges ahead, with 
strongly performing businesses and a strong 
balance sheet.
The devaluation of Sterling post Brexit will, if 
maintained, lead to a new era of cost inflation 
for many of our raw materials regardless of any 
potential change in consumer confidence or 
shopping behaviour. Planned future National 
Living Wage increases will similarly increase 
our costs and put pressure on our margins.  
We are working hard to offset this cost inflation  
through enhanced internal efficiency. Inevitably 
such pressures are inflationary.
We have demonstrated our ability to grow 
organically as well as by acquisition, which is 
important for the journey ahead. Investment 
has already been prioritised as an integral part 
of our strategy to better prepare us for the 
uncertain environment ahead, improving our 
competitiveness and ability to fulfil customer 
and consumer needs.
I would like to thank all the staff across  
the Finsbury Group for their dedication  
and unrelenting efforts over recent years.  
In particular I would like to recognise the major 
contribution by new people coming into the 
Group over the past few years.
I remain confident that the patient, unwavering 
strategy adopted and well laid foundations 
over recent years will reap benefits for the 
business in the years ahead.
Chief Executive’s Report 5 Finsbury Food Group  
Annual Report & Accounts 2016
Trading Performance
Results for the full 53-week period ended  
2 July 2016 are described in greater depth in 
the Strategic Report but there are a number  
of areas I would like to take this opportunity  
to highlight:
•   Group revenue of £319.7m up 24.8%,  
52 week revenue £313.5m up 22.4% 
(2015: £256.2m) and up £12.8m, 5.0%  
on a like for like basis*
1
.
•   Adjusted profit before tax of £16.0m  
up 40.8%, 52 week £15.7m up 37.6%, 
(2015: £11.4m) and up 17.1% on a like  
for like basis*
1
.
•   Increase in operating gross margin  
to 5.3% (2015: 4.8%) following record 
capital investment of £12.1m (2015: 
£7.4m) and operational initiatives.
•   Strong growth in diluted adjusted*
2
 EPS,  
up 19% to 9.5p per share (2015: 8.0p  
per share).
•   Final dividend per share of 1.87p taking 
the total dividend for the year to 2.8p per 
share up 12% (2015: 2.5p per share).
•   Net debt £19.7m (2015: £21.3m) equates 
to 0.8 times EBITDA of the Group.
•   Foodservice 21.2% of total UK bakery sales 
up from 14.0% and up 5.3% on a like for 
like basis.
•   Successful integration of Fletchers Group 
and Johnstone’s Foodservice Ltd (JFS).
•   Implementation of new Group-wide IT 
business system is underway.
•   Significant product innovation; including 
Kara branded cakes launched into 
Foodservice channel, investment in 
muffin, doughnut and hot cross bun 
capability and capacity.
•  Successful roll out of company vision  
 and values across all levels throughout  
 the business.
•  JFS winner of Costa supplier of the year.
• Winner of Celebration Cake Business  
 of the Year for 2016 at the Bakery  
 Industry Awards.
*1 Like for like growth is calculated using financial data  
 for a 52 week period and only where there are comparative  
 trading figures for the prior year for the acquired  
 businesses. The 52 week period is calculated by  
 eliminating the result for the 53rd week in the  
 financial year ended 2 July 2016.
 *2 Adjusted diluted EPS has been calculated using earnings  
 excluding the 53rd week, amortisation of intangibles  
 and significant non-recurring and other items as shown  
 on the face of the Statement of Profit and Loss and Other  
 Comprehensive Income. The adjusted diluted EPS has  
 been given as in the opinion of the Board this will  
 allow shareholders to gain a clearer understanding  
 of the trading performance of the Group.
“We have demonstrated  
 our ability to grow  
 organically as well as  
 by acquisition, which  
 is important for the  
 journey ahead.”
John Duffy
Chief Executive Officer 6 Finsbury Food Group  
Annual Report & Accounts 2016
Peter Baker 
Non-Executive Chairman
Peter joined the Board on 1 July 2014 and  
is Chairman of the Nomination Committee. 
Peter has over 30 years’ senior CEO and Board 
level experience within the global bakery and  
consumer packaged goods industry. He also  
chairs another Board and is a Non-Executive 
Director in one other business. Peter held the  
position of Managing Director of Maple Leaf  
Bakery from 2009 to 2013, moving into this  
position after the sale of La Fornaia Bakeries,  
where he was the CEO. Prior to these roles,  
Peter held COO and Divisional Managing 
Director positions at RHM in the Consumer 
Brands, British Bakeries and Cereals Divisions  
(including Rank Hovis Mills). Peter was 
previously a Non-Executive Director at Jordan’s 
Cereals, now a part of Associated British Foods. 
He has also served as Vice President of CIAA  
(a European trade association for food and  
drink) and was on the Executive Board of FDF  
the UK Food and Drink Federation.  
Edward Beale 
Non-Executive Director
Edward was appointed as a Director on  
29 August 2002. He is a chartered accountant 
and was a member of the Accounting Standards 
Board and subsequently the Accounting Council 
of the FRC for 6 years to August 2013. He is a 
member and former Chairman of the Quoted 
Companies Alliance’s Corporate Governance 
Committee. He is Chairman of Marshall 
Monteagle Plc, the Chief Executive of City Group  
Plc, and a Non-Executive Director of a number 
of other quoted companies. He sits on both the 
Audit and Remuneration Committees. He has 
announced his intention to step down from 
the Board at the conclusion of the November 
2016 AGM. 
Stephen Boyd 
Group Finance Director
Steve was appointed Group Finance Director 
in January 2010. Steve has spent 21 years in the 
food manufacturing sector and previously was 
Group Finance Director at Golden Wonder, 
subsequent to that he was Group Finance 
Director and Chief Operating Officer at WT 
Foods Group Plc. Steve worked with John Duffy 
at both Golden Wonder and WT Foods. 
John Duffy 
Chief Executive Officer
John was appointed CEO of Finsbury Food Group  
with effect from 30th September 2009, following  
a year as interim COO, and has led the turnaround  
of an indebted Group with a market capitalisation 
of only £6m in 2009 to the restructured and fast  
growing £150m+ market cap growth business 
of today. This transformation required significant  
operational improvements and new leadership 
throughout the Group as well as both a business  
disposal and several acquisitions. The acquisition  
of Fletchers Bakery Group for £56m in 2014 
delivered a step change in scale to £300m+ 
sales and diversification into the faster 
growing ‘out of home eating’ channel.
Following an engineering degree, John’s early 
career was in the oil industry in exploration and 
production with Shell International. John then 
completed a full-time MBA at the University  
of Strathclyde Business School before enjoying 
10 years at Director-level in manufacturing 
and logistics roles at Mars, the global FMCG 
business. This was followed by private equity 
experience within the portfolio investments of 
both L&G Ventures and Bridgepoint including 
as Operations Director at crisps and snacks 
manufacturer Golden Wonder and Managing 
Director of WT Foods’ largest chilled foods 
subsidiary, Noon Products, before and after  
its sale to Kerry Foods.
John has Non-Executive experience in both 
start-up and established businesses including 
Denby the household pottery manufacturer.
Raymond Duignan 
Non-Executive Director
Raymond was appointed to the Board in July 2013.  
He has extensive industry experience having 
set up a specialist investment bank, Stamford 
Partners, in the mid-1990s advising the 
European food and drink industries with 
clients including many blue chip companies.  
He is currently a Non-Executive Director of 
Science in Sport Plc, where he chairs the Audit 
Committee, and is a member of the Advisory 
Board of Active Private Equity Partners, the 
consumer focused investment group. He is 
Chairman of both the Audit and Remuneration 
Committees.
Marnie Millard 
Non-Executive Director
Marnie was appointed to the Board on  
1 February 2016. Marnie is currently Group 
Chief Executive of Nichols Plc, an AIM listed 
branded soft drinks group, serving both the 
UK retail and out of home channels, as well 
as achieving international sales across 70 
countries. Marnie joined the Nichols group 
in October 2012 as MD of Vimto Soft Drinks. 
She has worked in the soft drinks industry for 
the last 20 years in a number of senior roles 
with Macaw Soft Drinks, Refresco Gerber Ltd. 
She was appointed Nichols Plc Group Chief 
Executive in May 2013.
Paul Monk 
Non-Executive Deputy Chairman 
Paul was appointed to the Board on 9 December  
2002 and elected as joint Deputy Chairman 
in February 2007, he is a member of the 
Nomination Committee. He has extensive 
experience in the food manufacturing industry, 
was the Chief Executive of Golden Wonder Ltd 
and his other experience includes roles with 
Marks & Spencer and the Mars Corporation.  
He also holds other Non-Executive roles within 
the food industry. He has announced his 
intention to step down from the Board at the 
conclusion of the November 2016 AGM. 
Zoe Morgan 
Non-Executive Director 
Zoe was appointed to the Board on 4 July 2016. 
Zoe has 15 years Executive Director experience 
with significant retail, consumer and financial 
services businesses, including the role of Group  
Marketing Director of The Co-operative Group,  
HBoS Retail and Boots UK. Zoe has developed 
a broad commercial background in multi-site, 
retail, manufacturing and service businesses, 
with key strengths in strategy, brand 
management and customer relationship 
management. For the last 8 years she has held 
a portfolio of Non-Executive Directorships and 
is currently a Board member of Moss Bros and 
Kind Consumer.
F rom hands -on expertise  
to fresh thinking
The Directors 7 Finsbury Food Group  
Annual Report & Accounts 2016
From Left to Right
Back Row
Raymond Duignan 
Zoe Morgan 
Edward Beale 
Marnie Millard 
Paul Monk
Front Row
Stephen Boyd 
Peter Baker 
John Duffy 8 Finsbury Food Group  
Annual Report & Accounts 2016
Organic Growth
Strategic Report
Diversification
in channels
and customers.
Innovation,
developing new
differentiated
products.
Diversification
in product mix.
Efficient
supply chain,
well-invested
factories, quality
products.
Building scale
brings stability
and further
acquisition
opportunities.
Talented people
who enjoy
their work.
Finsbury
Food Group
Understanding
consumer trends
and customer
needs in bread
and cake.
Acquisitive Growth
From innovative products  
to growing sectors 9 Finsbury Food Group  
Annual Report & Accounts 2016
Our strategic objective is to 
create sustainable value for our 
shareholders, customers and other 
stakeholders by building a UK wide 
speciality bakery group. 
We will produce a broad range of high quality 
products, targeted at growing channels and 
market niches, which deliver growth and 
differentiation for our major customers  
whilst fulfilling the needs of end consumers.
Our growth strategy will continue to be delivered  
by a combination of organic growth and targeted 
acquisitions. Consolidating our market share 
in existing areas, such as celebration cakes and  
organic bread, as well as diversifying our existing  
product capability into new channels such as  
foodservice, cake will deliver the organic growth.  
Further acquisitions will introduce new product, 
customer or channel diversification or accelerate 
market consolidation in our core product areas.
Our Markets
The total UK ambient cake market (including 
pre-packed cake and in-store bakery (ISB)) is 
valued at £1.09bn (source: Kantar World panel 
52 w/e 19 June 2016). The past 12 months has  
seen market value and unit sales fall by 0.4% 
and 1.5% respectively. Ambient Cake is 
marginally outperforming ISB Cake over this 
period. We continue to perform well in our  
core markets of celebration cake, whole cake 
and cake bites.
Annual retail bread and morning goods sales are  
in excess of £4.0 billion (source: Kantar World 
panel 52 weeks to 19 June 2016) but the market  
is in decline, driven by the fall in sales of packaged  
sliced bread. We are a niche player in the 
packaged sliced bread market, instead we are  
focussed on the growing sectors of bread and 
morning goods such as artisan bread, hot cross  
buns and rolls through to doughnuts, muffins 
and morning pastries. The foodservice bread 
and morning goods market continues to grow 
and has sales in excess of £800 million and the  
UK foodservice cake and sweet treats market 
is worth approximately £600 million per annum 
(source: NPD group/management 52 weeks to  
30 June 2016). Growth is coming from a number  
of categories with the star being added value 
burger buns such as brioche burger buns.
Our Business
The Group consists of the UK bakery and the 
Overseas sectors businesses. 
UK Bakery
UK bakery has eight factories each with its 
own range of products and manufacturing 
capabilities and employing in excess of 3,000 
people across the following bakery companies.
• Lightbody of Hamilton Ltd is based in  
 Hamilton and is the UK’s largest supplier  
 of celebration cakes.
• Memory Lane Cakes Ltd is based in Cardiff  
 and is the leading manufacturer of the UK  
 retailers own label sharing cake.
• Fletchers Group of Bakeries has three  
 factories located in Sheffield, Manchester  
 and London. It produces a wide range of  
 fresh and frozen bread and morning good  
 products, which are distributed to leading  
 UK retailers and foodservice customers.
• Johnstone’s Foodservice Ltd is based in East  
 Kilbride and produces bite style cake products,  
 including its renowned caramel shortcake.  
 It supplies foodservice customers, particularly  
 national coffee shop chains.
• Nicholas & Harris Ltd is based in Salisbury  
 and produces a range of speciality bread  
 and morning goods which are distributed  
 to UK retailers and, following the Fletchers  
 acquisition, to foodservice customers.
• Campbells Cake Company Ltd is based in  
 Twechar near Glasgow and produces cold set  
 products such as caramel shortbread and  
 tiffin for retailers.
The Group’s bakery product range is 
comprehensive and includes:
• Large premium and celebration cakes.
• Small snacking cake formats such as cake  
 slices and bites.
• Artisan, healthy lifestyle and organic breads  
 through to rolls, muffins (sweet and savoury)  
 and morning pastries, all of which are  
 available both fresh and frozen dependent  
 on customer channel requirements.
Creating
shareholder
value.
Acquisitive Growth
From innovative products  
to growing sectors 10 Finsbury Food Group  
Annual Report & Accounts 2016
Strategic Report
F rom £1 million investment 
to five times the dough 11 Finsbury Food Group  
Annual Report & Accounts 2016 12 Finsbury Food Group  
Annual Report & Accounts 2016
Strategic Report
Brands and Licences
The Group is proud to have a well balanced 
portfolio of retailer own label business and  
a strong and evolving licensed branded portfolio,  
all supported by collaborative and strategic 
partnerships. We also have our own cake brand, 
Memory Lane, and the Kara foodservice brand.
Kara
Kara is the foodservice brand of the Finsbury 
Food Group, distributing to more than 300 
wholesalers, independents and end-users 
such as pubs, hotels and restaurant chains. 
The Kara brand has been operating in the 
foodservice sector for more than three decades 
and is synonymous with the famous floured 
bap. Today the Kara brand has a fantastic 
variety of frozen bakery products, providing 
foodservice customers with a one stop shop 
for their bakery requirements. We continue to 
extend the range and this year have launched 
artisan breads, continental pastries and cakes.
Thorntons
The Group continues to have a strong and long 
standing relationship with Thorntons, part  
of the Ferrero group. A combination of strong 
performance of core business and successful 
NPD has led to Thorntons being one of the 
fastest growing brands in the cake category 
over the last 12 months. Thorntons maintains 
a strong presence across both celebration  
and snacking cake. 
Character Licensed Portfolio 
Character licenses remain a key focus for the 
business and continue to play a vital role in our 
overall success within celebration cake and 
snacking cake. We are proud to have strong, 
and in many cases long standing, relationships 
with multiple partners such as Disney,  
Warner Bros. Nickelodeon, Carte Blanche and  
Entertainment One. These partnerships allow  
the business to develop products that meet key  
consumer occasions for all ages. Successful 
licenses for the Group this year have included 
Minions, Star Wars and Batman which have 
been linked to big movie releases and the more 
evergreen licenses of Me to You, Peppa Pig  
and Paw Patrol.
Weight Watchers 
Weight Watchers remains a large food brand 
with a presence across multiple UK grocery 
categories. This year the brand is changing 
to better reflect the evolving approach 
consumers are taking to manage their  
weight, health and lifestyle needs. 
Vogel’s
The consumers’ need for healthy nutritious 
food is the driver behind the Vogel’s brand.  
Founded on the principles of Alfred Vogel, the  
pioneering Swiss nutritionist, Vogel’s is a range 
of ‘clean label’ seeded breads crammed to 
bursting with seeds and grains. The loaves  
are baked without added sugar, emulsifiers,  
enzymes, or artificial preservatives or 
flavourings. And the best thing about Vogel’s 
– the way we bake it, means that it makes the 
most fantastic toast!
Village Bakery
The country’s leading Rye bread brand, 
targeted at consumers aiming to avoid wheat, 
comprising a range of wholemeal and seeded 
loaves. The bread is made with the simplest of 
all recipes: Organic Rye flour, water and a little 
sea salt, with no added yeast, emulsifiers or 
enzymes. 
Cranks
A range of what our customers call ‘Proper 
Bread’ made with organic stoneground flour 
from a specially selected group of English 
farmers. Cranks bread is fermented for longer 
– up to six hours – to give it great flavour and 
texture without using any additives such as 
emulsifiers and enzymes. Cranks is the UK’s 
leading organic bread brand.  
Overseas
The Group has a 50% owned Company, 
Lightbody Stretz Ltd, that supplies and 
distributes the Group’s UK manufactured and 
third party products primarily to Continental 
European markets, particularly in France and 
Benelux. 13 Finsbury Food Group  
Annual Report & Accounts 2016
Principal Risks and Uncertainties
The Group operates in an environment which is 
continually changing and as a result the risks it 
faces will also change over time. The assessment  
of risks and the development of strategies for 
dealing with these risks are achieved on an 
ongoing basis through the way in which the 
Group is controlled and managed internally.  
A formal review of these risks is carried out  
by the Group on an annual basis. The review 
process involves the identification of risks, 
assessment to determine the relative 
likelihood of them impacting the business 
and the potential severity of the impact, and 
determination of what needs to be done to 
manage them effectively.
The Directors have identified the following as 
the principal risks and uncertainties that face 
the Group:
Competitive Environment and Customer 
Requirements
The environment remains competitive within  
the bakery sector. The monitoring of key  
performance indicators at customer level such  
as service levels and customer complaints is part  
of the risk management process associated with 
this specific risk. Providing quality products, 
investing in innovation (with our innovation 
centre fully operational) and competing on 
value helps to strengthen customer relations 
and support growth initiatives. The Group 
invests heavily in category management, new 
product development and marketing skills. 
This investment has helped create an insight 
into customers and consumer demands. 
Product Quality
Product quality is a key strength of the Group 
and failure to maintain a high standard of food 
quality and safety would have a severe impact 
on service levels and customer relationships. 
The Group’s quality assurance procedures,  
managed at site level, are reviewed continuously 
with improvements made as appropriate.  
The operating subsidiaries are subject to regular 
internal and independent food safety and quality 
control audits including those carried out by,  
or on behalf of, our customers. The Group 
maintains product recall insurance cover  
to mitigate the potential impact of such  
an occurrence.
Labour Costs, Prices and Supply
The Group, along with other food businesses, 
will face the risk of inflationary pressures through  
both commodities cost increases, further driven 
by currency weakness post Brexit and the 
National Living Wage. 
The Group maintains a high level of expertise  
in its buying team and will consider long-term 
contracts where appropriate to reduce 
uncertainty in input prices. The team also 
cultivates strong relationships with major 
suppliers to ensure continuity of supply at 
competitive prices. Regular renovation and 
innovation in our product range can help 
to manage margin pressures in an effective 
manner as far as the competitive environment 
allows. The Group also purchases forward 
foreign currency in order to minimise the 
fluctuation of input costs linked to future 
currency conversion rates. Ongoing capital 
investment and improvements in operational 
efficiency help reduce the impacts of inflation.
Economic Environment
The market place remains challenging and 
there is an uncertain macro-economic outlook 
following the vote to leave the EU. Currency 
hedging and long-term contracts give the Group 
time to plan and formulate strategies to face 
future challenges. The Group will continue to 
focus on quality and value and will explore new 
channels, new products and new formats to 
gain competitive advantage. Forging strong 
customer relationships and aligning strategic 
business plans through innovation and category 
management helps create mutual growth 
opportunities.
Pension Fund Deficit
The valuation of the one defined benefit pension 
scheme on a technical provision basis can cause  
large fluctuations in valuations based on factors  
outside of the Group’s control. There is an agreed 
deficit recovery plan fixed until September 2023 
or until a new schedule is agreed based on the 
next valuation which will be at 31 December 
2018. The Company enjoys a close relationship 
and regular communication with the trustees.
Trading Results
The year to 2 July 2016 is a 53 week year, a week 
longer than the previous year. Continuing Group 
revenue for the 53 week period to 2 July 2016 
was £319.7 million (2015: £256.2 million).   
The continuing Group revenue for the 52 week 
period is £313.5m (2015: £256.2 million). 
Operating Profit margins were 5.3% (2015: 
4.8%). Capital investment, improvement in 
operational efficiency and product mix are the 
main drivers for the improvement in margin.  
Inflationary increases and employee pay rises  
have been offset by operational improvements 
and returns from capital investment. 
Administrative expenses have increased driven  
by the full year impact of acquired businesses, 
having the correct level of infrastructure in place  
for the enlarged Group, increased retailer 
marketing support, new product development,  
range support, remuneration for outperformance 
of targets and improvements in the fabric  
of the workplace. 
Group IT Business System
The Group is upgrading its systems with the 
objective of having a common ERP across UK 
bakery. The ERP system is the latest version of the  
existing system within the Fletchers business 
acquired in 2014. Recognising the inherent risks  
to a systems upgrade, an appropriate Corporate 
Governance structure has been put in place,  
the key aspect of which is the establishment  
of a Steering Committee comprising senior  
operational management from both businesses  
and chaired by an independent implementation 
specialist. Furthermore, KPMG have been 
engaged to sit on the Steering Committee and 
to act as independent auditors of the whole 
project. The fact that the new ERP system  
is the latest version of the existing system  
in operation within the Fletchers business  
is also a significant risk reduction factor. 
Dividend
Subject to shareholder approval at the 
Company’s AGM on 23 November 2016, the 
final dividend of 1.87 pence per share will be 
paid on 16 December 2016 to all shareholders 
on the register at 18 November 2016 and will 
be recognised in the financial year ending  
1 July 2017. 14 Finsbury Food Group  
Annual Report & Accounts 2016
From innovation centre 
to coffee and cake
Strategic Report 15 Finsbury Food Group  
Annual Report & Accounts 2016 16 Finsbury Food Group  
Annual Report & Accounts 2016
Strategic Report 17 Finsbury Food Group  
Annual Report & Accounts 2016
The following analysis is included to show what the Directors consider to be the underlying performance of the Group and eliminates the impact 
of significant non-recurring items and certain charges required by IFRS.
53 Week Period ended 2 July 2016
 
 
 
 
Operating
performance
£000
 
 
Non-recurring
significant
items
£000
 
Defined
benefit
pension
scheme
£000
Fair value
of interest
rate swaps/
foreign
exchange
contracts
£000
As per
Consolidated
Statement of
Comprehensive
Income
£000
Revenue 
Cost of sales
319,680
(217,092)
-
-
-
-
-
-
319,680
(217,092)
Gross profit 
Other costs excluding  
depreciation & amortisation
102,588  
(77,861) 
-  
(4,290)
-  
117
-  
(134)
102,588  
(82,168)
EBITDA 
Depreciation & amortisation
24,727
(7,629)
(4,290)
-
117
-
(134)
-
20,420 
(7,629)
Results from operating activities 17,098 (4,290) 117 (134) 12,791
Finance income 
Finance costs
2
(1,060)
-
-
-
(148)
219
-
221
(1,208)
Profit before tax 16,040 (4,290) (31) 85 11,804
Share of losses of equity  
accounted investees after tax (14)
 
-
 
-
 
-
 
(14)
Taxation (3,272) - 6 (20) (3,286)
Profit for the year 12,754 (4,290) (25) 65 8,504
Details of non-recurring significant items are detailed in Note 5. Share option awards are now an ongoing part of the reward structure,  
the charges now form part of the ongoing cost of the business and are not considered an adjusting item in 2016. 
52 Week Period ended 27 June 2015
 
 
 
 
 
Operating
performance
£000
 
 
Non-recurring
significant
items
£000
 
 
Share
options
charge
£000
 
Defined
benefit
pension
scheme
£000
Fair value
of interest
rate swaps/
foreign
exchange
contracts
£000
 
Unwinding of
discount on
deferred
consideration
£000
As per
Consolidated
Statement of
Comprehensive
Income
£000
Revenue 
Cost of sales
256,166
(177,276)
-
-
-
-
-
-
-
-
-
-
256,166
(177,276)
Gross profit 
Other costs excluding  
depreciation & amortisation
78,890  
(60,638)
-  
(3,181)
-  
10
-  
100
-  
181
-  
-
78,890  
(63,528)
EBITDA 
Depreciation & amortisation
18,252
(5,836)
(3,181)
-
10
-
100
-
181
-
-
-
15,362
(5,836)
Results from operating activities 12,416 (3,181) 10 100 181 - 9,526
Finance income 
Finance costs
1
(1,024)
-
-
-
-
-
(154)
28
-
105
-
134
(1,178)
Profit before tax 11,393 (3,181) 10 (54) 209 105 8,482
Taxation (2,452) 644 (2) 11 (42) (21) (1,862)
Profit for the year 8,941 (2,537) 8 (43) 167 84 6,620
 
Details of non-recurring significant items are detailed in Note 5.  18 Finsbury Food Group  
Annual Report & Accounts 2016
Strategic Report
F rom everything we do,  
to everyone we meet 19 Finsbury Food Group  
Annual Report & Accounts 2016 20 Finsbury Food Group  
Annual Report & Accounts 2016
Strategic Report
Earnings Per Share (EPS)
EPS comparatives to the prior year can be distorted by significant non-recurring items and IFRS 
adjustments, as well as the impact of the 53rd week for the current financial year. The Board is 
focused on growing adjusted diluted EPS, which is calculated by eliminating the impact of the 
items highlighted above and amortisation of intangibles and incorporates the dilutive effect  
of share options. Adjusted diluted EPS is 9.5p for the 52 week period (2015: 8.0p). 
52 week 
2016
52 week 
2015
52 week 
2014
Basic EPS 
Adjusted* basic EPS 
Diluted** basic EPS 
Adjusted* diluted** EPS
5.9p 
9.6p 
5.8p 
9.5p
5.8p 
8.3p 
5.6p 
8.0p
6.7p 
6.9p 
6.3p 
6.5p
 
* Adjusted EPS measures are calculated by eliminating the impact of significant non-recurring items, IFRS adjustments and  
 amortisation of intangibles. Further details can be found in Note 10. 
** Diluted EPS takes basic EPS and incorporates the dilution effect of share options. 
Non-financial Key Performance 
Indicators 
A range of non-financial key performance 
indicators are monitored at site level covering, 
amongst others, customer service, quality and 
health and safety. The Group Board receives 
an overview of these on a regular basis.
Prior Year Acquisitions
On 30 October 2014 the Group acquired the 
Fletchers Group of Bakeries (‘Fletchers’) for  
£56 million, funded in part by an oversubscribed 
equity raise of £35 million. The remainder was  
funded through debt. The acquisition brought  
opportunities in new foodservice channels, retail 
customer diversification and complementary 
product ranges. Fletchers fits well within our 
UK bakery business and the Group. 
On 26 May 2015 the Group acquired 25% of 
the ordinary share capital of Dr Zak’s Limited. 
Dr Zak’s develops and supplies high protein 
food including bread, pasta and bagels.
On 16 June 2015 the Group acquired the 
business, production assets, stock and customer  
list of Johnstone’s Just Desserts Ltd (‘Johnstone’s’)  
out of administration. This acquisition signalled 
the escalation of Finsbury’s entry into the 
foodservice cake channel and in particular  
the high growth national coffee shop segment. 
This is in line with the Group’s channel 
diversification strategy, indicated at the 
acquisition of Fletchers.
Cash Flow
There was an increase in our working capital 
requirement of £3.9 million compared to the 
last financial year. Corporation tax payments 
made in the financial year totalled £1.6 million  
(2015: £1.2 million), the payments in the current 
and prior year took account of the research and 
development tax relief due to the Group and tax  
losses being utilised. Capital expenditure in 
the year amounted to £12.1 million (2015:  
£7.4 million).  
Debt and Bank Facilities
The Group’s total net debt including deferred 
consideration payable is £19.7 million (2015: 
£21.3 million) down £1.6 million from the prior 
year. Within this total, £10.9 million is due within 
one year, including cash at bank and invoice 
finance (2015: £9.3 million).  
The Group’s debt facility is a bilateral facility 
with HSBC Bank Plc and Lloyds Bank Plc totalling 
£50.9m, the key features of the facility are  
as follows:
• Overdraft (£2.0m) 
• Term loan (£13.4m) 
• Confidential invoice discounting facility  
 (£22.0m) 
• Mortgage facility (£3.5m) 
• Rolling asset finance facility (£2.0m) 
• Revolving credit facility (£8.0m)
Note 20 gives details of the amounts drawn  
on these facilities and maturity dates.  21 Finsbury Food Group  
Annual Report & Accounts 2016
The Group is able to offer strong asset backing  
to secure its borrowings. The Group owns 
freehold sites at Memory Lane in Cardiff, 
Fletchers’ site at Sheffield and Lightbody and 
Campbells in Scotland. In addition, the Group 
has a strong trade debtor book to support the  
invoice discounting facility, made up primarily 
of the UK’s major multiple retailers. This debtor 
book stood at £44.9 million (2015: £42.8 million) 
at the period end date.
The Group recognises the inherent risk from 
interest rate rises. To mitigate these risks, the  
Group has two interest rate swaps in place with 
a total coverage of £9.0 million (2015: £14.0 
million) equivalent to 46% (2015: 66%) of year 
end net bank debt at a weighted average rate 
of 1.8% (2015: 2.5%). 
The effective interest rate for the Group at the  
year end, taking account of the interest rate 
swaps in place and deferred consideration 
with base rate at 0.5% and LIBOR at 0.584%, 
was 3.00% (2015: 4.04%). A £5.0 million 
swap fixed at 3.6% expired on 1 July 2016, on 
7 September 2016 the Group entered into a 
forward dated swap for £20.0 million for five 
years from 3 July 2017 (fixed) at 0.455%.
Financial Covenants
The Board reviews the Group’s cash flow 
forecasts and key covenants on a regular basis 
to ensure that it has adequate facilities to cover  
its trading and banking requirements with an 
appropriate level of headroom. The forecasts 
are based on management’s best estimates  
of future trading. There has been no breach  
of covenants during the year. 
Interest cover (based on adjusted earnings before  
interest, tax, depreciation and amortisation 
– EBITDA) for the 53 weeks to 2 July 2016 was 
23.4 (2015: 17.8). Net bank debt to EBITDA 
(based on adjusted EBITDA) for the year  
to 2 July 2016 was 0.8 (2015: 1.0). 
Taxation
The Group taxation charge for the year was  
£3.3million (2015: £1.9 million). This represents 
an effective rate of 20.4% on profits before 
non-recurring significant items (2015: 22.0%).  
Further details on the tax charge can be found 
in Note 9 to the Group’s Financial Statements.
Environmental Matters
The Group has re-launched its Sustainability 
Strategy across the business with a broad focus 
on Supply Chain, People and the Environment. 
Each site has an Environmental Champion and 
KPIs have been standardised across the Group. 
The Group is working together with specialist 
advisors to further develop environmentally 
sustainable business practices. Energy reduction 
and environmental sustainability projects have  
continued around the business. From a new 
effluent plant at Grain D’Or; new energy efficient  
refrigeration plant and high insulating ovens 
at Nicholas and Harris; to a solar panelled skip! 
LED lighting replacement continues across  
the Group and compressed air leak surveys  
are underway. Environmental considerations 
are at the heart of our decision making. 
Working partnerships with local universities 
have created a key project that will deliver 
quality improvement and waste reduction and 
for which funding is currently being sought. 
Employee Social and Community Issues
All manufacturing sites are active within their 
local communities and have developed strong  
links with local schools, universities and 
charities. As an example Fletcher’s in Sheffield 
have been working with Ecclesfield Primary 
School on an environmental awareness project 
and have funded an outdoor classroom in 
which to conduct work related to sustainability 
and the environment.
Technical Matters
All sites have achieved A, or the highest AA,  
rating under the new, much tougher British 
Retail Consortium version 7 standard with  
several of these audits now being unannounced.  
This is a strong performance across the business 
and a reflection of the work done. Due to the 
additional requirement to understand the 
vulnerabilities in supply chains the Group is 
implementing a supply chain mapping system 
which will eventually be rolled out to capture 
all suppliers.
Health continues to be a major focus for the  
business with tougher 2017 salt targets and  
the Government’s Childhood Obesity Strategy. 
As a result, we have formulated a health 
strategy which focuses on a broad range of 
health metrics. Dedicated resource has been  
released to work on formulation development 
in key areas of the business and the capture  
of health metrics is being supported by an IT  
project. As part of the Food and Drink Federation, 
Finsbury has a voice in recommending 
appropriate categories for sugar targets  
to Public Health England and we continue  
to play an active role in this area.
The Johnstone’s acquisition has integrated 
rapidly into the technical requirements of the 
Group and the site now has a new Technical 
Manager.
The Strategic Report was approved by the Board 
of Directors on 16 September 2016 and was 
signed on its behalf by:
Stephen Boyd  
Director 22 Finsbury Food Group  
Annual Report & Accounts 2016
Financial Statements 23 Finsbury Food Group  
Annual Report & Accounts 2016
Contents 
24  Report on Corporate Governance
26  Audit Committee Report
28  Directors’ Remuneration Report (unaudited)
29   Directors’ Remuneration Policy Report (unaudited)
35   Consolidated Statement of Profit and Loss  
and Other Comprehensive Income
36   Consolidated Statement of Financial Position
37   Consolidated Statement of Changes in Equity
38  Consolidated Cash Flow Statement
39   Notes to the Consolidated Financial Statements
69  Company Balance Sheet
70   Company Statement of Changes in Equity
71   Notes to the Company’s Financial Statements
79  Directors’ Report
81   Statement of Directors’ Responsibilities  
in Respect of the Annual Report and the  
Financial Statements
82   Independent Auditor’s Report to the 
Members of Finsbury Food Group Plc
83  Advisers 24 Finsbury Food Group  
Annual Report & Accounts 2016
The Board is committed to high standards of corporate governance and although the Company is not required to comply with the UK Corporate 
Governance Code (“the Code”), the Company’s corporate governance framework is based on the Code’s main principles to the extent appropriate 
for the Company. The Board reviews its corporate governance arrangements on a regular basis. 
The Board directs the activities of the Group and develops its strategy and oversees implementation of strategy. The Board meets at least five 
times during the year and reviews performance at each meeting. There is a schedule of matters which are reserved to the Board for decision. 
These matters include: 
• Strategy
• Acquisition policy 
• Corporate governance
• Risk management
• Health and safety
• Approval of major capital expenditure 
• Approval of annual budgets
• Approval of Annual Reports
• Dividend recommendations
The Board comprises the Non-Executive Chairman, Peter Baker, two Executive Directors (John Duffy, Chief Executive and Stephen Boyd, Finance 
Director), and five Non-Executive Directors, Paul Monk, Edward Beale, Raymond Duignan, Marnie Millard and Zoe Morgan. Paul Monk and Edward 
Beale have announced their intention to step down from the Board at the conclusion of the AGM in November 2016 and will serve as Non-Executive 
Directors up until that date. 
There is a clear division of responsibilities between the Chairman and the Chief Executive. The Chairman is responsible for leadership of the Board, 
setting its agenda and monitoring its effectiveness. He meets regularly and separately with the Chief Executive and the other Non-Executive 
Directors. The Board has a culture of constructive challenge and continuous improvement.
Board Committees
The Board has delegated certain responsibilities to the Audit, Nomination and Remuneration Committees.
The Audit Committee is chaired by Raymond Duignan with Edward Beale as the other member. Edward Beale will be standing down at the conclusion  
of the AGM, Zoe Morgan will be joining the Committee following the AGM. Further details of its activities are given in the Audit Committee Report 
on pages 26 to 27.
The Remuneration Committee is chaired by Raymond Duignan with Edward Beale as the other member. Edward Beale will be standing down at 
the conclusion of the AGM, Marnie Millard will be joining the Committee following the AGM. Further details of the Remuneration Committee’s 
activities are given in the Directors’ Remuneration Report on pages 28 to 34.
Peter Baker chairs the Nomination Committee with Paul Monk as the other member. Paul Monk will be standing down at the conclusion of the 
AGM and the Committee’s membership following his departure is currently being considered. The Committee’s main responsibilities include:
• Advising the Board on the appointment of Directors
• Reviewing the composition and size of the Board
• Evaluating the balance of skills, knowledge, experience and diversity of the Board
• Making recommendations on succession planning
Report on Corporate Governance 25 Finsbury Food Group  
Annual Report & Accounts 2016
Internal Controls and Risk Management
The Board has overall responsibility for the system of internal controls to safeguard shareholders’ investment and the Group’s assets, as well as 
reviewing the effectiveness of those controls. The system of internal controls is designed to manage rather than eliminate the risks of failure to 
achieve the Group’s objectives and can only provide reasonable, and not absolute, assurance against material loss and misstatement. The Group 
continues to progress with initiatives to improve managing its risks to create value.
Dialogue with Shareholders
The Board maintains a general policy of keeping all interested parties informed by regular announcements and update statements.
In implementing this policy, the Board keeps in mind the distribution of shareholders between direct, nominee and institutional shareholders. 
Communications are then distributed between these groups accordingly.
Specific methods of communication are:
• Annual general meetings
• Broker briefings
• Broker and analysts visits to operating sites
• Letters to shareholders when appropriate
• Corporate website (www.finsburyfoods.co.uk) 26 Finsbury Food Group  
Annual Report & Accounts 2016
Role and Responsibilities of the Audit Committee 
The principal responsibilities of the Committee are to:
•  Review and monitor the integrity of the Financial Statements of the Group and assist the Board in fulfilling its responsibilities relating to external 
financial reporting and similar announcements.
•  Review significant issues and the judgements of management and the methodology and assumptions used in relation to the Financial Statements.
• Review and monitor the Group’s financial control systems and risk management procedures.
• Recommend the appointment and/or reappointment of the external auditor and approve their terms of engagement.
• Review and monitor the independence of the external auditor and the effectiveness of the audit process.
• Implement and review policy on external auditor non‑audit services.
• Review and monitor the Group’s compliance with all regulatory legislation and current practice.
• Report to the Board on how it has discharged its responsibilities.
The full terms of reference, which can be found on the Company’s website at www.finsburyfoods.co.uk, are reviewed periodically by the Board. 
Membership
The Committee is chaired by me, and, the other member is Edward Beale, a Non‑ Executive Director. Edward Beale, a chartered accountant,  
is a former member of the UK’s Accounting Standards Board who has recent and relevant financial experience. Zoe Morgan will be joining the 
Audit Committee following the AGM.
The Audit Committee met three times during the year. The Finance Director is invited to attend Committee meetings together with other senior  
members of the finance team including those members of staff that conduct internal audits. The external auditor attends those meetings involving 
the Financial Statements, the annual audit and other significant matters. Time is set aside during at least one meeting each year for the Committee 
to hold discussions in private with the external auditor in the absence of management and Executive Directors.  
External Auditor
The Committee carried out an assessment of the effectiveness of the external audit process which focused on criteria that the Committee considered 
to be important factors in an effective audit process. These factors included the quality of audit staff, the planning and execution of the audit and  
the role of management in the audit process. Following this assessment, the Committee concluded that the external audit process remained 
effective and that it provides an appropriate independent challenge.
The engagement of the auditor to carry out non-audit services is approved in advance by me or, in the case of a significant instruction, by the 
Committee. This enables the Committee to satisfy itself of the Auditor’s independence and objectivity. 
Internal Controls and Risk Management
The Committee is responsible for reviewing the effectiveness of the Group’s system of internal controls. The system of internal control is designed 
to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance 
against material misstatement or loss.
Group management prepare an Annual Report for the Committee’s consideration that identifies the risks and uncertainties to which the Group 
is exposed, the procedures in place to mitigate those risks and uncertainties and the potential impact on the Group. The Committee reviews this 
report and any concerns that it has over the adequacy of the controls in place, or the level of risk accepted by the Group, are reported to the Board.  
The principal risks and uncertainties to which the Group is exposed are considered by the Board and are set out in the Strategic Report on pages 
8 to 21. Following this review, the Committee is satisfied that the Group has in place effective internal control systems and risk management. 
The Committee continues to keep under review the need for a separate dedicated internal audit function in the Group. The Committee remains 
satisfied that the Group’s system of internal control is appropriate for a Group of the size and nature and the Committee’s current view is that  
a separate formal independent internal audit function is not required at this time. The Committee will monitor the situation closely as the Group 
continues to expand.
A programme of rolling internal control and risk reviews is monitored by the Committee which considers reports on these reviews at each meeting 
and monitors any follow up action that is required.  
Audit Committee Report 27 Finsbury Food Group  
Annual Report & Accounts 2016
External Reporting
The Board delegates primary responsibility for the preparation of complete, balanced and accurate Financial Statements and disclosures, in accordance  
with Financial Reporting Standards and regulations, to the Finance Director. The responsibility of the Committee includes consideration of significant 
accounting policies, any changes in policies and significant estimates and judgements, taking into account the external auditor’s view, and to report 
back to the Board on any concerns that it might have. The Audit Committee reviews the clarity and completeness of disclosures within the Financial 
Statements. Ultimate responsibility for reviewing and approving the annual Financial Statements and half yearly reports remains with the Board.
The Committee also reviews related information presented with the Financial Statements, in particular the Strategic Report, the Directors’ Report 
and the Report on Corporate Governance. 
Key Agenda Items
In addition to matters referred to elsewhere in this Report, during the year, the Committee also considered:
• Revenue recognition
• Internal authorisation levels and procedures
• Interest rate and currency hedging
• Systems related issues arising from the Fletchers’ acquisition
• Impairment reviews
• Group insurance programme
• Pension disclosures
• New business system introduction and compliance
If any reader of these accounts has suggestions for improvement in the content or the presentation of the Financial Statements, please can they 
let me know by writing to info@finsburyfoods.co.uk.
Raymond Duignan 
Chairman of the Audit Committee 28 Finsbury Food Group  
Annual Report & Accounts 2016
Directors’ Remuneration Report  
(Unaudited)
Statement from the Chairman of the Remuneration Committee 
Dear Shareholder
I am pleased to present the Directors’ Remuneration Report for the year ended 2 July 2016.
The Remuneration Committee believes that the Directors’ Remuneration Policy remains appropriate and will continue to apply it in 2016‑ 17. 
Accordingly, we have not included the Directors’ Remuneration Policy in this Report, however, a copy is available in our 2016‑ 17 Directors’ 
Remuneration Report at www.finsburyfoods.co.uk/investor-relations/annual-reports. 
The Annual Report on Remuneration provides details of the amounts earned in respect of the year ended 2 July 2016 and how the Directors’ 
Remuneration Policy will be operated for the year commencing 3 July 2016.
Similar to last year and as a matter of best practice, the Annual Report on Remuneration has been prepared taking into account the remuneration 
reporting regulations applicable to fully listed companies in the UK. 
Review of the 2015- 16 Financial Year
As described earlier in the Annual Report the Company has delivered exceptional performance, with continued organic growth in 2015‑ 16 which 
has been supplemented by the acquisition of Fletchers and Johnstone’s in 2014-15. Alongside this growth, our capital investment strategy, 
together with our continued efficiency programme has resulted in improved operating margins.  
The 2015‑ 16 annual bonus was subject to an EBITDA performance metric. The Company achieved £24.7million EBITDA for 2015‑ 16 which was 
in excess of our stretch targets for the year and considerably greater than budget. Consequently, this resulted in the maximum annual bonus 
being earned, equating to 100% of salary. In line with the Committee’s commitment to align Executives’ interests with those of shareholders, 
50% of total bonuses earned in the year will be paid as cash and 50% in the form of shares, in order to develop further the shareholdings of the 
Executive Directors. Further details are set out on page 30. The current personal shareholdings of J G Duffy and S A Boyd equate to circa 7.5 and 
4.5 times salary respectively.
No long‑ term incentive awards vested with respect to a performance period ending in the year ended 2 July 2016.
Options granted in July 2011 and linked to the delivery of the turnaround of the business and the creation of shareholder value were due to expire  
in October 2016. To minimise the impact of share dilution arising from legacy share options, the Executive Directors agreed to cancel unexercised 
share options that had vested in 2013. In return they received a settlement which was equal to what would have been received if they had exercised 
their options in full on 26 April 2016 and sold such number of shares necessary to meet the exercise price of the share options and the income 
tax and National Insurance costs payable as a result of the exercise. Further details are set out on page 30. These market value options were 
granted at a time when the Company’s share price was 20.5 pence and cashflow was extremely tight. The strategy created by the Board and 
executed by our Executive Directors has resulted in a share price which averaged 107.4 pence per share across the 2015-16 financial year.
The Committee remains committed to a responsible approach to executive pay and believes that salary increases above wider workforce increases 
will only be awarded in limited circumstances. S A Boyd has made significant contributions to the business over the last five years as the scope 
of his role has grown substantially with the growth in the business and the Committee considered that this needed to be recognised by setting 
his base salary at the appropriate level. In October 2015 the Committee therefore determined to award S A Boyd a 17.5% salary increase in order  
to set his salary at a level which was comparable with the market and, more importantly, reflected his role and responsibilities within the business.    
J G Duffy was awarded a 2.5% salary increase which was in line with increases for the wider workforce.
As disclosed in last year’s Directors’ Remuneration Report, a new long‑ term incentive plan was introduced in 2015 designed to motivate the 
senior executives over the longer term to deliver the Group’s strategy and to reward appropriately, reflecting their contribution to shareholder 
value creation. Awards were made on 4 December 2015. Further details are provided on page 31.
Outlook for the 2016- 17 Financial Year
Details in relation to the application of the Directors’ Remuneration Policy in 2016‑ 17 are set out on page 29, however, the key elements will  
be as follows:
•  Salary increases for 2016-17 were reviewed in September and increases of 1.8% have been made in line with inflationary increases to the 
wider workforce. 
•  Annual bonus opportunity for 2016‑ 17 will remain at 100% of salary. The annual bonus will continue to be based on EBITDA performance  
as the Committee considers this to be the key short-term financial measure.
•  Awards under the LTIP will be made following the announcement of our results and the Committee will discuss the performance conditions 
which will apply, although anticipate that this will continue to be absolute EPS targets and relative TSR against the FTSE Small Cap. The targets 
will be disclosed in the Remuneration Report next year.
•  The Non-Executive Directors’ basic fee was increased from £40,000 to £50,000 with effect from 1 July 2016 in order to reflect the time demands 
of the role in response to what has been, and will continue to be, an active growth strategy.
Raymond Duignan
Chairman of the Remuneration Committee
16 September 2016  29 Finsbury Food Group  
Annual Report & Accounts 2016
Directors’ Remuneration Policy Report 
(unaudited)
The full Policy can be viewed in the Directors’ Remuneration Report of our Annual Report 2015 at www.finsburyfoods.co.uk/investor-relations/
annual‑ reports.
The main aim of the Company’s Policy is to align the interests of Executive Directors with the Company’s strategic vision and the long‑ term 
creation of shareholder value. The Company aims to provide returns to shareholders through both organic and acquisitive growth. The Policy 
is intended to remunerate our Executive Directors competitively and appropriately for effective delivery of this and allows them to share in this 
success and the value delivered to shareholders. The Policy is based on a broad set of remuneration principles:
•  Promote shareholder value creation
•  Support the business strategy 
•  Promote sound risk management
•  Ensure that the interests of the Directors are aligned with the long‑ term interests of shareholders
•  Deliver a competitive level of pay for the Directors without paying more than is necessary to recruit and retain individuals
•  Ensure that the Executive Directors are rewarded for their contribution to the success of the Group and share in the success delivered  
to shareholders and
•  Motivate the Directors to deliver enhanced sustainable performance 30 Finsbury Food Group  
Annual Report & Accounts 2016
Unaudited Annual Report on Remuneration 
Single T otal Figure of Remuneration
The tables below detail the total remuneration earned by each Director in respect of the financial years ended 2 July 2016 and 27 June 2015:
2016
Salaries/fees 
£000
T axable 
benefits 
£000
Annual 
bonus
£000
Other 
£000
T otal 
remuneration  
£000
 
Executive Directors
J G Duffy 342 12 342 ‑ 696
S A Boyd 241 12 241 ‑ 494
583 24 583 ‑ 1,190
Non-Executive Directors
P Baker 75 ‑ ‑ ‑ 75
E J Beale 45 ‑ ‑ ‑ 45
R P E Duignan 50 ‑ ‑ ‑ 50
M J Millard 17 ‑ ‑ ‑ 17
P J Monk 40 ‑ ‑ 30 70
227 ‑ ‑ 30 257
840 24 583 30 1,477
2015
Salaries/fees
£000
T axable
benefits
£000
Annual
bonus
£000
Other
£000
T otal
remuneration
£000
 
Executive Directors
J G Duffy 334 12 334 240 920
S A Boyd 211 12 211 240 674
545 24 545 480 1,594
Non-Executive Directors
P Baker 75 ‑ ‑ 25 100
E J Beale 45 ‑ ‑ ‑ 45
R P E Duignan 50 ‑ ‑ 50 100
P J Monk 40 ‑ ‑ 30 70
210 ‑ ‑ 105 315
755 24 545 585 1,909
1. Mrs M Millard was appointed as Non-Executive Director on 1 February 2016.
2.  “Other” relates to payments awarded to the Executive Directors for the successful execution of the Genius and Fletcher acquisitions and fees 
for the additional time commitment provided by Mr P Baker and Mr R Duignan in respect of their support on these transactions.
3.  Legacy options which vested to J G Duffy and S A Boyd in 2013 and which were settled during this financial year are detailed on page 32 and  
in Note 7 to the Accounts.
4. No long-term incentive awards vested with respect to a performance period ending in the financial year ended 2 July 2016.
Directors’ Remuneration Policy Report (unaudited) 31 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Table
Base Salaries
The base salaries for the Executive Directors are set with effect from 1 October, the salaries in the financial years ended 2 July 2016 and 27 June 
2015 were as follows.
Executive Director From 1 October 2014 From 1 October 2015 Percentage increase
J G Duffy £335,680 £344,072 2.5%
S A Boyd £212,759 £250,000 17.5%
The increase for Mr S A Boyd is explained in the Statement from the Chairman of the Remuneration Committee.
Taxable Benefits
The taxable benefits for the Executive Directors in the year included a car allowance and private medical insurance.
Annual Bonus
The annual bonus is the total value of the bonus earned in respect of the financial year (including the amount delivered in shares). For the financial 
year ended 2 July 2016 Executive Directors were able to earn a bonus of up to 100% of annual base salary subject to the achievement of stretching 
EBITDA performance targets. 
The following table sets out the bonus pay-out to the Executive Directors for 2015-16 and how this reflects EBITDA performance for the year.
Performance measure Actual performance
Resulting level of award for each  
Executive as a percentage of salary
Earnings before interest, tax,  
depreciation and amortisation (EBITDA)
 
EBITDA £24,727,000
 
100%
Long-term Incentives
Details of the LTIP awards granted on 4 December 2015 are given in the table below:
Number of shares Basis of award* Performance period Performance conditions
J G Duffy 695,095 200% of salary 3 financial years from 28 June 2015 50% subject to EPS growth and 50%  
subject to relative TSR (further details below).
S A Boyd 505,051 200% of salary 3 financial years from 28 June 2015
*The basis of award was calculated using the average price of the shares over the three business days following the announcement on  
21 September 2015 of the Company’s preliminary results for the year ended 27 June 2015. 
Awards will be subject to a further two year holding period following the end of the performance period.
Vesting of 50% of the award will be based upon the amount of the adjusted diluted Earnings Per Share (EPS) delivered in the final Financial Year of 
the performance period. Below the threshold vesting target of 7.65p, none of this component of the award will vest. 25% of this component will 
vest if adjusted diluted EPS is 7.65p, with 100% vesting at 10.20p, and vesting determined on a straight-line basis between these figures.
Vesting of 50% of the award will be based upon Relative Total Shareholder Return against the FTSE Small Cap (excluding investment trusts) 
(“TSR”) over the performance period. At below median relative TSR ranking, none of this component of the award will vest. 25% of this 
component will vest at median ranking, with 100% vesting at upper quartile or above ranking, and vesting determined on a straight‑ line basis 
between these points.
The awards are also subject to a general performance underpin assessing factors, including ROCE and other financial indicators of performance 
over the performance period, at the discretion of the Remuneration Committee. 32 Finsbury Food Group  
Annual Report & Accounts 2016
Directors’ Remuneration Policy Report (unaudited)
Legacy Unapproved Share Options
In July 2011 J G Duffy and S A Boyd were granted unapproved options over 2,500,000 shares and 2,753,659 shares respectively, with an exercise 
price of 20.5p per share. Performance conditions designed to reward the turnaround of the Group were achieved in full and the options therefore 
vested in 2013.  
The vested options were due to expire in October 2016. Therefore, in order to minimise share dilution, on 26 April 2016 J G Duffy and S A Boyd 
agreed to cancel their vested share options in return for a settlement. The settlement was equal to what each of them would have received if they 
had exercised their share options in full on 26 April 2016 and sold such number of shares necessary to meet the exercise price of 20.5p per share 
and the income tax and National Insurance costs payable as a result of the exercise. The associated charge is disclosed in Note 7 to the accounts.
The value created for shareholders over the period from grant to settlement of the options is shown in the chart below:
Non-Executive Director Fees
Details of Non‑ Executive Directors’ fees for 2015‑ 16 are as set out below. The Non‑ Executive Directors’ base fee increased to an annual rate of 
£50,000 on 1 July 2016:
Chairman fee
Non-Executive  
Director fee
Chairman of the  
Remuneration  
Committee
Member of the  
Remuneration  
Committee
Chairman 
of the Audit  
Committee
Member 
of the Audit  
Committee
£75,000 £40,000 £5,000 £2,500 £5,000 £2,500
Payments Made to Former Directors during the Year
No payments were made in the year to any former Director of the Company.
Payments for Loss of Office Made During the Year
No payments for loss of office were made in the year to any Director of the Company.
180.0
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
YE 2011
44.0
45.5
YE 2012
46.8
YE 2013
45.4
YE 2014
128.1
YE 2015
164.4
YE 2016
Equity market cap £m Equity raised £m Net debt £m
Enterprise Value
8.8
21.2
19.7
38.7
106.0
12.9 11.2
7.2
3.7
3.7
32.9
38.7
68.2
35.9
32.6
32.8 33 Finsbury Food Group  
Annual Report & Accounts 2016
Statement of Directors’ Shareholding and Share Interests
The interests of the Directors and their immediate families in the Company’s ordinary shares as at 27 June 2015 and 2 July 2016 were as follows.
2 July 2016 
Number
27 June 2015  
(or date of appointment) 
Number 
Executive Directors
J G Duffy 2,197,599 2,111,762
S A Boyd 961,034 906,629
Non-Executive Directors
P Baker 86,000 46,000
E J Beale 40,000 40,000
R P E Duignan ‑ ‑ M J Millard ‑ ‑ P J Monk 291,547 291,547
The interests of the Directors and their immediate families in the Company’s ordinary shares did not change between 2 July 2016 and the date 
these accounts were signed on 16 September 2016. Zoe Morgan was appointed as Non-Executive Director on 4 July 2016, her shareholding on 
appointment and at 16 September 2016 was 20,981.
The interests of each Executive Director of the Company as at 2 July 2016 in the Company’s share schemes were as follows:
Executive Director
Number of options at  
27 June 2015 Granted Exercised
Lapsed/
cancelled
Number of options  
at 2 July 2016
J G Duffy 2,500,000 ‑ ‑ (2,500,000) ‑ J G Duffy 1,137,898 ‑ ‑ ‑ 1,137,898
J G Duffy ‑ 695,095 ‑ ‑ 695,095
S A Boyd 2,753,659 ‑ ‑ (2,753,659) ‑ S A Boyd 721,217 ‑ ‑ ‑ 721,217
S A Boyd ‑ 505,051 ‑ ‑ 505,051
7,112,774 1,200,146 ‑ (5,253,659) 3,059,261
Consideration by the Directors of Matters Relating to Directors’ Remuneration
The Remuneration Committee comprises R Duignan (Chairman) and E Beale. The Company Secretary attends the meeting as secretary to the 
Committee. The Committee’s responsibilities are:
• Maintaining the remuneration policy;
• Reviewing the remuneration packages of the Executive Directors;
• Monitoring the level and structure of the remuneration of Senior Management; and
• Production of the Annual Report on Directors’ remuneration.
The Chief Executive Officer and Group Finance Director occasionally attend meetings and provide information and support as requested. 
Advisors
During the financial year the Committee received advice from Deloitte LLP. The Committee is satisfied that the advice received is independent and 
objective. Deloitte is a founding member of the Remuneration Consultants Group and voluntarily operates under the Code of Conduct in relation 
to executive remuneration consulting in the UK.
Implementation of Directors’ Remuneration Policy for the Financial Year Commencing 3 July 2016
Information on how the Company intends to implement the Directors’ Remuneration Policy for the financial year commencing on 3 July 2016  
is set out overleaf. 34 Finsbury Food Group  
Annual Report & Accounts 2016
Directors’ Remuneration Policy Report (unaudited)
Salaries/Fees
Salary increases for 2016-17 were reviewed in September and increases of 1.8% have been made in line with inflationary increases to the wider 
workforce. The provision of benefits will remain unchanged.
The Non-Executive Director basic fees increased from £40,000 to £50,000 with effect from 1 July 2016 in order to reflect the time demands  
of the role in response to what has been, and will continue to be, an active growth strategy.
Annual Bonus
Annual bonus opportunity for the Executive Directors will continue to be 100% of salary subject to the achievement of stretching EBITDA performance 
targets with payment made 50% in cash and 50% in shares. The Committee considers EBITDA to be the key short-term financial measure.
Long-term Incentives
Awards under the LTIP will be made following the announcement of our results and the Committee will discuss the performance conditions which 
will apply, although anticipate that this will continue to be absolute EPS targets and relative TSR against the FTSE Small Cap. The targets will be 
disclosed in the Remuneration Report next year.
Approval
This Report was approved by the Board on 16 September 2016 and signed on its behalf by:
Raymond Duignan 
Chairman of the Remuneration Committee   35 Finsbury Food Group  
Annual Report & Accounts 2016
 Note
2016 
£000
2015 
£000
Revenue 3 319,680 256,166
Cost of sales (217,092) (177,276)
Gross profit 102,588 78,890
Administrative expenses 4 (89,797) (69,364)
Results from operating activities 12,791 9,526
Finance income 8 221 134
Finance cost 8 (1,208) (1,178)
Net finance cost (987) (1,044)
Profit before tax and share of losses of equity accounted investees 11,804 8,482
Share of losses of equity accounted investees 2 (14) ‑ Profit before tax 11,790 8,482
T axation 9 (3,286) (1,862)
Profit for the financial year 8,504 6,620
Other comprehensive (expense)/income
Items that will not be reclassified to profit and loss
Remeasurement on defined benefit pension scheme 16 (2,595) (153)
Movement in deferred taxation on pension scheme liability 24 390 31
Other comprehensive expense for the financial year, net of tax (2,205) (122)
T otal comprehensive income for the financial year 6,299 6,498
Profit attributable to:
Equity holders of the parent 7,791 6,179
Non‑controlling interest 713 441
Profit for the financial year 8,504 6,620
T otal comprehensive income attributable to:
Equity holders of the parent 5,586 6,057
Non‑controlling interest 713 441
T otal comprehensive income for the financial year 6,299 6,498
Earnings per ordinary shares
Basic 10 6.1 5.8
Diluted 10 6.0 5.6
The Notes on pages 39 to 68 form an integral part of these Financial Statements.
Consolidated Statement of Profit and Loss and Other Comprehensive Income 
for the 53 weeks ended 2 July 2016 and 52 weeks ended 27 June 2015 36 Finsbury Food Group  
Annual Report & Accounts 2016
Consolidated Statement of Financial Position  
at 2 July 2016 and 27 June 2015
 Note
2016 
£000
2015 
£000
Non-current assets
Intangibles 12 77,596 80,071
Property, plant and equipment 13 50,501 46,038
Investments in equity accounted investees 14 211 225
Other financial assets 14 28 28
Deferred tax assets 24 3,492 4,446
  131,828 130,808
Current assets
Inventories 17 12,577 11,268
T rade and other receivables 18 50,332 48,381
Cash and cash equivalents 19 3,024 61
Current tax asset - 40
Other financial assets – fair value of foreign exchange contracts 14 - 117
  65,933 59,867
T otal assets 197,761 190,675
Current liabilities
Other interest‑bearing loans and borrowings 20 (13,829) (9,288)
T rade and other payables 22 (64,357) (62,283)
Provisions 23 (247) (252)
Deferred purchase consideration - (50)
Other financial liabilities – fair value of interest rate swaps/foreign exchange 14 (157) (359)
Current tax liabilities (1,210) ‑  (79,800) (72,232)
Non-current liabilities
Other interest‑bearing loans and borrowings 20 (8,740) (11,746)
Provisions and other liabilities 23 (141) (161)
Deferred tax liabilities 24 (1,547) (103)
Pension fund liability 16 (6,463) (3,837)
  (16,891) (15,847)
T otal liabilities (96,691) (88,079)
    
Net assets 101,070 102,596
Equity attributable to equity holders of the parent 
Share capital 27 1,304 1,280
Share premium account 26 64,956 64,952
Capital redemption reserve 26 578 578
Employee share reserve 26 (3,920) ‑ Retained earnings 26 36,569 34,580
  99,487 101,390
Non-controlling interest  1,583 1,206
T otal equity 26 101,070 102,596
These Financial Statements were approved by the Board of Directors on 16 September 2016 and were signed on its behalf by:
Stephen Boyd 
Director 
Registered Number 00204368
The Notes on pages 39 to 68 form an integral part of these Financial Statements. 37 Finsbury Food Group  
Annual Report & Accounts 2016
Consolidated Statement of Changes in Equity 
for the 53 weeks ended 2 July 2016 and 52 weeks ended 27 June 2015
 Note
Share
capital 
£000
Share
premium 
£000
Capital  
redemption 
reserve  
£000
Employee
share 
reserve
£000
Retained
earnings
£000
Non-
controlling
interest
£000
T otal
equity
£000
Balance at 29 June 2014 669 31,480 578 ‑ 29,849 1,127 63,703
Profit for the financial year ‑ ‑ ‑ ‑ 6,179 441 6,620
Other comprehensive income/(expense):
Remeasurement of defined benefit pension 16 ‑ ‑ ‑ ‑ (153) ‑ (153)
Deferred tax movement on pension scheme 
remeasurement 24 ‑ ‑ ‑ ‑ 31 ‑ 31
T otal other comprehensive expense - - - - (122) - (122)
T otal comprehensive income for the period - - - - 6,057 441 6,498
T ransactions with owners, recorded  
directly in equity: 
Shares issued during the year 27 611 33,472 ‑ ‑ ‑ ‑ 34,083
Impact of share based payments 27 ‑ ‑ ‑ ‑ (10) ‑ (10)
Deferred tax on share options ‑ ‑ ‑ ‑ 243 ‑ 243
Dividend paid 28 ‑ ‑ ‑ ‑ (1,559) (362) (1,921)
Balance at 27 June 2015 1,280 64,952 578 - 34,580 1,206 102,596
Balance at 28 June 2015 1,280 64,952 578 ‑ 34,580 1,206 102,596
Profit for the financial year ‑ ‑ ‑ ‑ 7,791 713 8,504
Other comprehensive (expense)/income:
Remeasurement on defined benefit pension 16 ‑ ‑ ‑ ‑ (2,595) ‑ (2,595)
Deferred tax movement on pension scheme 
remeasurement 24 ‑ ‑ ‑ ‑ 390 ‑ 390
T otal other comprehensive expense - - - - (2,205) - (2,205)
T otal comprehensive income for the period - - - - 5,586 713 6,299
T ransactions with owners, recorded  
directly in equity:
Own shares acquired 27 ‑ ‑ ‑ (3,920) ‑ ‑ (3,920)
Shares issued during the year 27 24 4 ‑ ‑ (23) ‑ 5
Impact of share based payments 27 ‑ ‑ ‑ ‑ 306 ‑ 306
Deferred tax on share options ‑ ‑ ‑ ‑ (575) ‑ (575)
Dividend paid 39 ‑ ‑ ‑ ‑ (3,305) (336) (3,641)
Balance at 2 July 2016 1,304 64,956 578 (3,920) 36,569 1,583 101,070
The Notes on pages 39 to 68 form an integral part of these Financial Statements. 38 Finsbury Food Group  
Annual Report & Accounts 2016
Consolidated Cash Flow Statement  
for the 53 weeks ended 2 July 2016 and 52 weeks ended 27 June 2015     
 Note
2016 
£000
2015 
£000
Cash flows from operating activities
Profit for the financial year 8,504 6,620
Adjustments for:
T axation 9 3,286 1,862
Net finance costs 8 987 1,044
Depreciation 13 7,090 5,433
Amortisation of intangibles 12 539 403
Non‑cash impairment of goodwill 12 4,290 ‑ Share of losses of equity accounted investees after tax 14 14 ‑ Share options charge/(credit) 27 - (10)
Contributions by employer to pension scheme 16 (117) (100)
Fair value charge/(credit) for foreign exchange contracts 14 134 (181)
Operating profit before changes in working capital 24,727 15,071
Changes in working capital:
Increase in inventories (1,091) (1,004)
Increase in trade and other receivables (2,253) (7,259)
Increase in trade and other payables 1,711 10,510
Cash generated from operations 23,094 17,318
Interest paid (1,180) (923)
T ax paid (1,603) (1,164)
Net cash from operating activities 20,311 15,231
Cash flows from investing activities
Purchase of property, plant and equipment (12,141) (7,354)
Purchase of subsidiary companies 11 - (40,809)
Deferred consideration (paid)/received 11 (50) 3,000
Settlement of acquired debt - (19,740)
Cash received with acquisition - 4,990
Net cash used in investing activities (12,191) (59,913)
Cash flows from financing activities
Drawdown of new facility - 24,028
Drawdown/(repayment) of invoice discounting 21 7,427 (8,159)
(Repayment)/drawdown of revolving credit 21 (2,000) -
Repayment of mortgage and bank loans 21 (3,672) (3,622)
Repayment of asset finance liabilities 21 (284) (380)
Issue of ordinary share capital 5 34,083
Purchase of shares by employee benefit trust (2,835) ‑ Dividend paid to non‑controlling interest 28 (336) (362)
Dividend paid to shareholders 39 (3,305) (1,559)
Net cash from financing activities (5,000) 44,029
Net increase/(decrease) in cash and cash equivalents 3,120 (653)
Opening cash and cash equivalents 61 592
Effect of exchange rate fluctuations on cash held (157) 122
Cash and cash equivalents at end of period 19 3,024 61
The Notes on pages 39 to 68 form an integral part of these Financial Statements. 39 Finsbury Food Group  
Annual Report & Accounts 2016
Presentation of Financial Statements
Basis of Preparation
These accounts cover the 53 week period ended 2 July 2016 (prior financial year is the 52 week period ended 27 June 2015). The Group Financial 
Statements consolidate those of the Company and its subsidiaries (together referred to as the “Group”).
The Group Financial Statements have been prepared and approved by the Directors in accordance with International Financial Reporting 
Standards as adopted by the EU (“Adopted IFRSs”). The Financial Statements for the Company have been prepared in accordance with UK 
Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including Financial Reporting Standard 101 Reduced 
Disclosure Framework (“FRS 101”), these are presented on pages 69 to 78.
In the transition to FRS 101, the Company has applied IFRS 1 whilst ensuring that its assets and liabilities are measured in compliance with FRS 
101. An explanation of how the transition to FRS 101 has affected the reported financial position is provided in Note 53.
It should be noted that current liabilities exceed current assets. Having reviewed the Group’s short and medium term plans and available financial 
facilities, the Board has reasonable expectations that the Group has adequate resources to continue in operational existence for the next 12 
months and the foreseeable future. The Group has stayed within its banking facilities during the year, meeting covenant requirements and 
expects to continue to meet them over the next 12 months. The Group has continued support from its banks with facilities of £50.9m. In addition,  
the Group has a strong asset backing and strong trade debtor book. Accordingly, the Board continues to adopt the going concern basis in 
preparing the Financial Statements for both the Group and the parent company.
The Board reviews the Group’s cash flow forecasts and key covenants on a regular basis to ensure that it has adequate facilities to cover its 
trading and banking requirements with an appropriate level of headroom. The forecasts are based on management’s best estimates of future 
trading. There has been no breach of covenants during the year and none expected during the next 12 months. All covenant tests were passed  
at the year end.
Critical Accounting Estimates and Judgements
The Group is required to make estimates and assumptions concerning the future. These estimates and judgements are based on historical 
experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting 
accounting estimates will, by definition, seldom equal the related actual results. Accounting estimates and judgements have been required for 
the production of these Financial Statements. The following are those that are deemed to require the most complex judgements about matters 
that have the most significant effect on the amounts recognised in the Financial Statements.
•  Acquisition related intangible assets are considered to have finite lives ranging from 15 to 20 years. The determination of the fair value and 
useful lives are subject to estimates and judgement. Impairment reviews in respect of intangibles are performed where there is indication of 
impairment. Impairment of goodwill is carried out annually and can significantly impact the Group’s Consolidated Statement of Profit and 
Loss for the year. The Group estimates the recoverable amounts based on historical experience of margin, volumes and cost structure and 
expectations of future events. The discount rate takes account of the current market conditions and this has been applied as a pre‑ tax discount 
factor to obtain a current value. Refer to Note 12 for further details.
•  The Group has one defined benefit pension scheme. The net deficit or surplus is the difference between the plan assets and plan liabilities at 
the period end date. The valuation of the assets and liabilities is based on a number of judgements. The assets are based on market value at the 
period end date, the liabilities are based on actuarial assumptions such as discount, inflation and mortality rates. The assumptions applied are 
based on advice provided by the Scheme’s actuary in accordance with IAS 19 (revised), further detail can be found in Note 16.
 
•  The Group recognises provisions where an obligation exists at the period end date and a reliable estimate can be made. Provisions for employee 
claims and pension augmentation have been recognised in these Financial Statements. Estimates for employee claims are made based on the 
number of reported accidents and incidents and the number of expected claims yet to be reported based on historical evidence, all accrued up 
to the maximum self‑ insured amount of £10,000 per claim. The pension provision relates to a contractual liability for pension augmentation 
that has been valued by the pension scheme actuaries. See Note 23 for further detail.
•  A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary 
difference can be utilised. The deferred tax asset recognised for losses relate to acquired businesses. Based on current and forecast levels of 
profitability, the losses are expected to be utilised within 3 years.
Notes to the Consolidated Financial Statements 
(forming part of the Financial Statements) 40 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
1. Significant Accounting Policies
The accounting policies set out below have been applied consistently to all periods presented in these consolidated Financial Statements, except 
as explained in the basis of preparation, which addresses any changes in accounting policies resulting from new or revised standards.
Basis of Consolidation
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern the financial and 
operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that are currently exercisable 
or convertible are taken into account. The Financial Statements of subsidiaries are included in the consolidated Financial Statements from the date 
that control commences until the date that control ceases. The accounting policies of new subsidiaries are changed when necessary to align them 
with the policies adopted by the Group. Intra-group balances and transactions are eliminated in preparing the consolidated Financial Statements.
Lightbody Stretz Limited which is 50% owned by the Group has been consolidated into the Group accounts as a subsidiary with a corresponding 
non‑ controlling interest on the basis that the Group has the controlling interest. Control arises by virtue of the fact that Lightbody Group Limited, 
a wholly owned subsidiary of Finsbury Food Group, has a majority of voting rights arising from an agreement between Lightbody Group Limited 
and Philippe Stretz, the owner of the remaining 50%.
Business Combinations
The acquisition method of accounting is used in accounting for the acquisition of businesses. In accordance with IFRS 3 Business Combinations, 
the assets and liabilities of the acquired entity are measured at fair value. When the initial accounting for a business combination is determined 
provisionally, any adjustments to the provisional values allocated are made within twelve months of the acquisition date and are effected from 
the date of acquisition.
Foreign Currency
Transactions in foreign currencies are translated to Sterling at the foreign exchange rate ruling at the date of the transaction. Monetary assets 
and liabilities denominated in foreign currencies at the period end date are retranslated to Sterling at the foreign exchange rate ruling at that date. 
Any exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which 
they were initially recorded are recognised in the Consolidated Statement of Profit and Loss in the period in which they arise.
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated to Sterling, 
at foreign exchange rates ruling at the period end date. The revenues and expenses of foreign operations are translated at an average rate for the 
year where this rate approximates to the foreign exchange rates ruling at the dates of the transactions. 
Derivative Financial Instruments 
The Group has derivative financial instruments in respect of interest rate swaps and foreign exchange hedges. The Group does not hold derivative 
financial instruments for trading purposes. The existing interest rate swaps and foreign exchange hedges used by the Group while they function 
as hedges, do not meet the criteria for hedge accounting set out by IAS 39, and have thus been treated as financial assets and liabilities which are 
carried at their fair value in the Consolidated Statement of Financial Position. Fair value is deemed to be market value, which is provided by the 
counterparty at the year end date. 
Changes in the market value of interest rate swaps have been recognised through the Consolidated Statement of Profit and Loss as finance income 
or cost. Changes in the market value of foreign exchange hedges have been recognised through the Consolidated Statement of Profit and Loss 
within administrative costs.
Non-derivative Financial Instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, 
loans and borrowings, and trade and other payables.
Unless otherwise indicated, the carrying amounts of the Group’s financial assets and liabilities are a reasonable approximation of their fair values.
T rade and other Receivables 
The value of trade and other receivables is the amount that would be received if the receivable was paid on the period end date which is a close 
approximation to amortised cost.
T rade and other Payables
The value of trade and other payables is the value that would be payable to settle the liability at the period end date.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash balances. Bank overdrafts that are repayable on demand and which form an integral part of the Group’s 
cash management are included as a component of cash and cash equivalents.
Interest-bearing Borrowings
Interest-bearing borrowings are stated at amortised cost using the effective interest method. 41 Finsbury Food Group  
Annual Report & Accounts 2016
1. Significant Accounting Policies (continued) 
Property, Plant and Equipment
Recognition and Measurement
Items of property, plant and equipment are measured at cost or fair value at the date of acquisition, less accumulated depreciation and impairment 
provisions. Costs include expenditure that is directly attributable to the acquisition of the asset. The cost of self‑ constructed assets includes the  
cost of materials and direct labour and any other costs directly attributable to bringing the asset to a working condition for its intended use, and  
the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the 
functionality of the related equipment is capitalised as part of that equipment.
Depreciation
Depreciation is provided to write off the cost, less estimated residual value, of the property, plant and equipment by equal instalments over their 
estimated useful economic lives to the Consolidated Statement of Profit and Loss. When parts of an item of property, plant and equipment have 
different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
The depreciation rates used are as follows:
Freehold buildings 2%-20% Plant and equipment 10%-33%
Leasehold property Up to the remaining life of the lease Assets under construction Nil
Fixtures and fittings 10%-33% Motor vehicles 25%-33%
Impairment reviews of fixed assets are undertaken if there are indications that the carrying values may not be recoverable.
Leased Assets
Leases under the terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial 
recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. 
Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.
Assets acquired by finance lease and hire purchase are depreciated over the lease term or their useful lives.
Obligations under finance leases are included in liabilities net of the finance charge allocated to future periods. The finance element of the rental 
payment is charged to the Consolidated Statement of Profit and Loss as finance expense so as to produce a constant periodic rate of charge on 
the net obligations outstanding in each period.
Other leases are operating leases and the leased assets are not recognised on the Group’s Consolidated Statement of Financial Position.
Operating Lease Payments
Payments made under operating leases are recognised in the Consolidated Statement of Profit and Loss on a straight-line basis over the term  
of the lease.
Finance Lease Payments
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is 
allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Equity Accounted Investees 
Equity Accounted Investees (Associates) are those entities in which the Group has significant influence, but not control, over the financial and 
operating policies. Significant influence is presumed to exist when the Group holds between 20 and 50 percent of the voting power of another entity. 
Application of the Equity Method to Associates and Joint Ventures
Equity Accounted Investees are accounted for using the equity method (equity accounted investees) and are initially recognised at cost. The Group’s  
investment includes goodwill identified on acquisition, net of any accumulated impairment losses. The consolidated Financial Statements include 
the Group’s share of the total comprehensive income and equity movements of equity accounted investees, from the date that significant influence  
commences until the date that significant influence ceases. When the Group’s share of losses exceeds its interest in an equity accounted investee, 
the Group’s carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred 
legal or constructive obligations or made payments on behalf of an investee. 
Intangible Assets and Goodwill
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash‑ generating units and is not amortised but is 
tested annually for impairment. Intangible assets are capitalised separately from goodwill as part of a business combination, only if the fair 
value can be measured reliably on initial recognition and if the future economic benefits are expected to flow to the Group. All intangible assets 
recognised are considered to have finite lives and are amortised on a straight-line basis over their estimated useful economic lives that range 
from 15 to 20 years. Goodwill arises when the fair value of the consideration for the business exceeds the fair value of the net assets acquired. 
Where the excess is negative (negative goodwill), the amount is taken to retained earnings. Goodwill is capitalised and subject to impairment 
reviews both annually and where there are indications that the carrying value may not be recoverable.
Impairment
The carrying amounts of the Group’s intangible assets and goodwill are reviewed at each period end date to determine whether there is an 
indication of impairment. Intangible assets and goodwill are considered to be impaired if objective evidence indicates that one or more events 
have had a negative effect on the estimated future cash flows of that asset. If any such indication exists, the asset’s recoverable amount  
is estimated. 42 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
1. Significant Accounting Policies (continued) 
For goodwill and intangible assets that have an indefinite useful life, the recoverable amount is estimated at each period end date.
An impairment loss would be recognised whenever the carrying amount of an intangible asset, goodwill or its cash generating unit exceeds  
its recoverable amount. Impairment losses are recognised in the Consolidated Statement of Profit and Loss.
Calculation of Recoverable Amount 
The recoverable amount is the greater of the asset’s fair value less costs to sell and its value in use. In assessing an asset’s value in use, the estimated 
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value  
of money and the risks specific to the asset.
Inventories 
Inventories are measured at the lower of cost and net realisable value. Cost is determined on the first-in first-out basis, and includes all direct costs  
incurred and attributable production overheads. Net realisable value is based upon estimated selling price allowing for all further costs of completion  
and disposal. Specific provisions are made against old and obsolete stock taking the value to zero or an estimated reduced value based on the most 
likely route for disposal of each particular item of stock.
Employee Benefits 
Defined Benefit Plans
Memory Lane Cakes Ltd operates a defined benefit pension scheme and the pension costs are charged to the Consolidated Statement of Profit  
and Loss and Other Comprehensive Income in accordance with IAS 19 (revised), with current and past service cost being recognised as an 
administrative expense, interest on assets and liabilities is shown as finance income or a finance cost in the Consolidated Statement of Profit  
and Loss. The remeasurements are recognised in full in Other Comprehensive Income.
Defined Contribution Plans
The costs of contributing to defined contribution and personal pension schemes are charged to the Consolidated Statement of Profit and Loss  
as an administrative expense in the period to which they relate.
Share Based Payment Transactions
The value, as at the grant date, of options granted to employees is recognised as an employee expense, with a corresponding increase in equity, 
over the period in which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using  
an option valuation model, taking into account the terms and conditions upon which the options were granted.
Revenue
Revenue represents the amounts derived from the sale of bakery products. Revenue is the invoiced value of consideration received or receivable 
excluding value added tax, trade discounts, transactions with or between subsidiaries and less the cost of price promotions and sales related 
rebates known as over‑ riders. Revenue is recognised upon despatch of goods. The nature and timing of promotions and over‑ riders is typically 
known, accruals are established at the time of sale based on information available and management’s expectations of the amounts necessary  
to meet the claims of customers. 
Segmental Reporting
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including 
revenues and expenses that relate to transactions with any of the Group’s other components. All segments’ operating results are reviewed regularly 
by the Group’s Board of Directors. The Group’s Chief Operating Decision Maker is considered to be the Board.
Licence Fees
Payments made for licence fee charges are recognised under cost of sales in the Consolidated Statement of Profit and Loss in the period to which 
they relate. Any charges relating to future years are deferred and recognised in the Consolidated Statement of Profit and Loss under cost of sales 
over the life of the contract.
Finance Income and Cost
Finance costs comprise loan interest payable, interest payable and finance charges on finance leases recognised using the effective interest method, 
unwinding of the discount on provisions and deferred consideration, interest on the net defined benefit pension plan position and adverse changes 
in the fair value of interest rate swaps.
Finance income comprises interest receivable on funds invested and favourable changes in the fair value of interest rate swaps. Interest income  
is recognised in Consolidated Statement of Profit and Loss as it accrues, using the effective interest method.
Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Profit and Loss except 
to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the period end date, 
and any adjustment to tax payable in respect of previous years.
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and  
the amounts used for taxation purposes. The following temporary differences are not provided for: 
• The initial recognition of goodwill;
• The initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination; and
• The differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. 43 Finsbury Food Group  
Annual Report & Accounts 2016
1. Significant Accounting Policies (continued) 
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, 
using tax rates enacted or substantively enacted at the period end date. A deferred tax asset is recognised only to the extent that it is probable 
that future taxable profits will be available against which the temporary difference can be utilised.
Research and Development Expenditure
The expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding,  
is recognised in the Consolidated Statement of Profit and Loss as incurred. 
2. Prior Year Acquisitions
On 30 October 2014 the Group acquired the entire share capital of the Fletchers Group (Fletchers) for £56.4 million less £2.6 million working  
capital adjustment. Fletchers produces morning goods and specialist bread products for leading UK grocery retailers and foodservice customers. 
Strategic and financial benefits of the acquisition include, complementary product ranges and new foodservice channels, retail customer diversification, 
the benefits of significant capital investment within Fletchers’ manufacturing and a multi-channel platform for further acquisitions in due course. 
In the period between acquisition date and 27 June 2015, the acquired Group contributed a profit before tax of £3,144,000. 
The cash outflow under ‘investing activities’ on the face of the Consolidated Cash Flow Statement relates to the following acquisitions/investments 
in the prior year:
 £000
Initial consideration 39,084
Debt settled 19,740
Cash acquired (4,990)
Cash consideration (excluding acquisition costs) 53,834
Working capital adjustment 2,598
T otal consideration 56,432
The acquisition had the following effect on the Group’s assets and liabilities:
 
   Fair value carrying amount
£000
Acquiree’s net assets at acquisition date:
Property, plant and equipment 21,094
Stock 5,387
T rade and other receivables 16,852
Deferred tax asset 3,903
T rade and other payables (20,536)
Working capital adjustment 2,598
Net identifiable assets 29,298
Intangibles 8,770
Goodwill 18,364
 56,432
Further information on intangible assets is provided in Note 12 to the Financial Statements. 
On 16 June 2015 the Group acquired the business, production assets, stock and customer list of Johnstone’s Just Desserts from administrators for 
£1.6 million. A new legal entity Johnstone’s Foodservice Limited was formed and trading commenced under this legal entity from the acquisition 
date. In the period between acquisition date and 27 June 2015, the new subsidiary contributed a profit before tax of £23,000. 
 
Fair value carrying amount
£000
Acquiree’s net assets at acquisition date:
Property, plant and equipment 1,489
Stock 496
T rade and other receivables 22
T rade and other payables (829)
Working capital adjustment 40
Net identifiable assets 1,218
Goodwill 372
 1,590
Consideration paid net of working capital adjustment 1,550 44 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
2. Prior Year Acquisitions (continued) 
Investment in Equity Accounted Investees
On 26 May 2015 the Group acquired 25% of the ordinary share capital of Dr Zak’s Ltd for a consideration of £225,000 of which £50,000 was deferred, 
being payable within one year of the acquisition date. 
2016
£000
2015
£000
Carrying amount of immaterial equity accounted investees 211 225
3. Revenue and Segment Information 
Operating segments are identified on the basis of internal reporting and decision making. The Group’s Chief Operating Decision Maker is considered 
to be the Board as it is primarily responsible for the allocation of resources to segments and the assessment of performance by segment. 
The Board uses adjusted operating profit, reviewed on a regular basis, as the key measure of the segments’ performance. Operating profit in this 
instance is defined as profit before the following:
• Net financing expense
• Share option charges
• Significant non-recurring items
• Fair value adjustments relating to acquisitions 
• Pension charges or credits in relation to the net pension position
• Revaluation of interest rate swaps and forward foreign currency contracts
The UK bakery segment manufactures and sells bakery products to the UK’s multiple grocers and foodservice sectors. This segment primarily 
comprises the operations of Memory Lane Cakes Ltd, Lightbody Group Ltd, Campbells Cake Company Ltd, Johnstone’s Foodservice Ltd, Fletchers 
Bakeries Ltd and Nicholas & Harris Ltd. These subsidiaries are aggregated into a single segment after considering the following criteria:
• The nature of the products – products are similar in nature and are classed as manufactured bakery products
• The production process – the production processes have the same or similar characteristics
• The economic characteristics – the average gross margins are expected to be similar
The core operation of the Overseas segment is the distribution of the Group’s UK manufactured products along with the sale of third party 
products primarily to Europe. 
Costs of Group operations plus a 10% premium have been allocated across the segments on the basis of their operating profit. The premium  
has been charged to reflect the synergies achieved from obtaining resources centrally giving benefits across the operating segments. Operating 
profit levels have been chosen as the basis, as this reflects the underlying performance of the segment and is also the return the Group expects 
from those segments.
A purchasing premium of 2% is charged from Group operations, and is calculated on materials and packaging spend at segmental level. This charge 
is based on the rationale that Group operations, through its Group buyers, optimises the Group’s procurement spend through leveraging its 
purchasing power. 
This has resulted in a loss from continuing operations of £0.3m (2015: profit £0.3m) being presented within the Group Operations segment.
The Group’s finance income and expenses cannot be meaningfully allocated to the individual operating segments. 45 Finsbury Food Group  
Annual Report & Accounts 2016
3. Revenue and Segment Information (continued) 
53 week period ended 2 July 2016
UK bakery
£000
Overseas
£000
Group operations
£000
T otal group
£000
Continuing
Revenue
External 291,196 28,484 - 319,680
T otal underlying profit 15,887 1,511 (300) 17,098
Fair value foreign exchange contracts (134)
Share options charge ‑ Defined benefit pension scheme 117
Significant non-recurring items   (4,290)
Results from operating activities   12,791
Finance income 221
Finance cost   (1,208)
Net finance cost   (987)
Share of losses of equity accounted investees after tax    (14)
Profit before taxation   11,790
T axation   (3,286)
Profit for the financial year   8,504
At 2 July 2016
Segment assets 187,827 6,337 292 194,456
Unallocated assets    3,305
Consolidated total assets   197,761
Segment liabilities (61,557) (5,355) (7,052) (73,964)
Unallocated liabilities   (22,727)
Consolidated total liabilities   (96,691)
Other segment information
Capital expenditure (12,115) (26) ‑ (12,141)
Depreciation included in segment profit 7,063 27 ‑ 7,090
Amortisation 539 ‑ ‑ 539
Impairment of goodwill 4,290 ‑ ‑ 4,290
Inter‑segmental sale/(purchases) 8,488 (8,488) ‑ ‑ 
Analysis of unallocated assets and liabilities:
 
Assets
£000  
Liabilities
£000
Investments 253 Loans and borrowings (22,570)
Financial instruments ‑ Financial instruments (157)
Cash and cash equivalents 3,024 Cash and cash equivalents ‑ T axation balances 28  T axation balances ‑ Unallocated assets 3,305 Unallocated liabilities (22,727)
With regard to revenue, five customers with sales of £66m, £62m, £39m, £29m and £24m account for 69% of revenue, which is attributable to the 
UK bakery and Overseas segments above. 
Impairment loss relates to the Anthony Alan Foods Ltd acquisition in 2007 which falls under the UK bakery segment.  46 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
3. Revenue and Segment Information (continued) 
 
52 week period ended 27 June 2015
UK bakery
£000
Overseas
£000
Group operations
£000
T otal group
£000
Continuing
Revenue
External pre acquisition 164,255 22,186 - 186,441
External acquired 69,725 - - 69,725
T otal revenue 233,980 22,186 - 256,166
Profit pre acquisition 7,748 1,154 347 9,249
Profit from acquired businesses 3,167 - - 3,167
T otal underlying profit 10,915 1,154 347 12,416
Fair value foreign exchange contracts 181
Share options charge 10
Defined benefit pension scheme 100
Significant non-recurring items   (3,181)
Results from operating activities   9,526
Finance income 134
Finance cost   (1,178)
Profit before taxation   8,482
T axation   (1,862)
Profit for the financial year   6,620
At 27 June 2015
Segment assets 183,623 5,042 1,508 190,173
Unallocated assets   502
Consolidated total assets   190,675
Segment liabilities (53,660) (4,056) (8,786) (66,502)
Unallocated liabilities   (21,577)
Consolidated total liabilities   (88,079)
Other segment information
Capital expenditure 7,320 34 ‑ 7,354
Depreciation included in segment profit 5,414 19 ‑ 5,433
Amortisation 403 ‑ ‑ 403
Inter‑segmental sales/(purchases) 6,072 (6,072) ‑ ‑ Analysis of unallocated assets and liabilities:
 
Assets
£000  
Liabilities
£000
Investments 253 Loans and borrowings (21,034)
Financial instruments 117 Financial instruments (359)
Cash and cash equivalents 61 Cash and cash equivalents ‑ T axation balances 71 T axation balances (184)
Unallocated assets 502 Unallocated liabilities (21,577)
With regard to revenue, five customers with sales of £53m, £36m, £27m, £24m and £20m account for 62% of revenue, which is attributable to the 
UK bakery and Overseas segments above.  47 Finsbury Food Group  
Annual Report & Accounts 2016
3. Revenue and Segment Information (continued) 
An analysis by geographical segment is shown below: 
Geographical split of revenue by destination 
2016
£000
2015
£000
Continuing:
United Kingdom 286,562 230,299
Europe 33,118 25,856
Rest of World ‑ 11
T otal continuing 319,680 256,166
Capital expenditure on segment assets is detailed in Note 3. 
Geographical split by country of origin
United Kingdom
£000
Europe
£000
T otal
£000
2016
Revenue 291,196 28,484 319,680
Operating profit 15,587 1,511 17,098
T otal assets 191,424 6,337 197,761
T otal liabilities (91,336) (5,355) (96,691)
Net assets 100,088 982 101,070
   
United Kingdom
£000
Europe
£000
T otal
£000
2015
Revenue 233,980 22,186 256,166
Operating profit 11,262 1,154 12,416
T otal assets 185,633 5,042 190,675
T otal liabilities (84,023) (4,056) (88,079)
Net assets 101,610 986 102,596
The net assets shown under Europe comprises Lightbody Stretz Ltd, being the 50% owned parent company of Lightbody Europe SAS, the French 
based selling and distribution business. 48 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
4. Expenses and Auditor’s Remuneration 
Included in profit are the following:
 
2016  
£000
2015  
£000
Amortisation of intangibles 539 403
Depreciation of owned tangible assets 6,770 5,096
Depreciation on assets under finance leases and hire purchase contracts 320 337
Loss on foreign exchange (326) (140)
Hire of plant and machinery – operating leases 810 679
Hire of other assets – operating leases 1,877 1,452
Movement on fair value of foreign exchange contracts 134 (181)
Research and development 2,287 1,737
Share option charges/(credits) 739 (10)
Amortisation of intangibles for the year was £539,000 (2015: £403,000) relating to the Fletchers acquisition in October 2014.
Auditor’s remuneration:
 
2016
£000
2015
£000
Audit of these Financial Statements 47 26
Amounts receivable by the auditor and its associates in respect of:
Audit of the Financial Statements of subsidiaries of the Company 122 116
T axation compliance services 22 16
Services related to corporate finance transactions - 278
Other services 104 176
The auditor’s remuneration is in respect of KPMG LLP. Fees for other services relates to pension advisory services, services relating to information 
technology and services relating to remuneration.
5. Non-recurring Significant Items
The Group presents certain items as non-recurring and significant. These relate to items which, in management’s judgement, need to be disclosed 
by virtue of their size or incidence in order to obtain a more meaningful understanding of the financial information. 
A charge of £4,290,000 relates to impairment of goodwill acquired in 2007, (2015: £3,181,000 relates to acquisition transaction costs). These are 
included in administrative expenses in the Consolidated Statement of Profit and Loss and Other Comprehensive Income.
6. Staff Numbers and Costs
The average number of persons employed by the Group including Directors and excluding agency staff during the year, analysed by category,  
was as follows:
        Number of Employees
 2016 2015
Production 2,621 2,297
Selling and distribution 229 186
Administration, technical, new product development 200 164
 3,050 2,647
The aggregate payroll costs of these persons were as follows:
 
2016
£000
2015
£000
Wages and salaries 71,131 57,848
Share option charges 739 (10)
Social security costs 6,478 4,875
Charge in respect of defined contribution pension plans 1,187 1,191
 79,535 63,904 49 Finsbury Food Group  
Annual Report & Accounts 2016
7. Remuneration of Directors 
2016
£000
2015
£000
Fees 257 315
Executive salaries and benefits 607 569
Bonuses 544 1,016
 1,408 1,900
The aggregate of emoluments and amounts receivable under long‑ term incentive schemes of the highest paid Director was £687 ,000 (2015: £914,000), 
there were no Company pension contributions made to a defined contribution scheme during the current or prior year. Bonuses include cash bonus  
of £245,000 (2015: £407,000) and shares issued with a total cost of £88,000 (2015: £161,000). There were no share options exercised in the period 
by the highest paid Director, 2,500,000 options were cancelled in return for 1,102,957 shares. A cash amount of £1,196,503 was paid to meet the 
pay as you earn (PAYE) and national insurance (NI) liability arising on the settlement of the options. There was no cash benefit to the highest paid 
Director as a result of settling the options in this way.
A further 2,753,659 of Director’s options were cancelled in return for 1,214,867 ordinary shares and payment of £1,317,904 in settlement of PAYE  
and NI liability arising on the settlement of the options. The associated costs of £2.8 million are shown in administrative expenses in the Consolidated 
Statement of Profit and Loss and Other Comprehensive Income. In the prior year 146,341 share options were exercised at an exercise price of  
20.5 pence per share, the market value at exercise date was 59.4 pence per share. 
There were no retirement benefits accruing to Directors during the current or previous year.
The emoluments paid to Directors were as follows:
Fees
£000
Salary
£000
Benefits
£000
Annual Bonus
£000
Year ended
2 July 2016 
£000
Y ear ended
27 June 2015 
£000
P Baker 75 ‑ ‑ ‑ 75 100
E J Beale 45 ‑ ‑ ‑ 45 45
S A Boyd – paid ‑ 241 12 155 408 542
S A Boyd – shares ‑ ‑ ‑ 56 56 129
J G Duffy – paid ‑ 342 12 245 599 753
J G Duffy – shares ‑ ‑ ‑ 88 88 161
R P E Duignan 50 ‑ ‑ ‑ 50 100
M J Millard 17 ‑ ‑ ‑ 17 ‑ P J Monk 70 ‑ ‑ ‑ 70 70
257 583 24 544 1,408 1,900
Shares comprise 85,838 shares issued to J G Duffy and 54,405 shares issued to S A Boyd. During the year awards over 1,200,146 shares under the  
long‑ term incentive plan (LTIP) were granted to Directors in the form of nil cost options (2015: 1,859,115). The vesting of the awards are conditional 
upon performance conditions over a three year period commencing 28 June 2015 and are subject to a further two year holding period. 
Directors’ rights to subscribe for shares in the Company are listed below:
Number of 
options at 
2 July 2016
Number of 
options at 
27 June 2015
Exercise  
price
Earliest  
exercise date
Exercise
expiry date
S A Boyd - 2,753,659 20.5p 08/07/2014 30/10/2016
S A Boyd 721,217 721,217 Nil 01/07/2019 26/06/2025
S A Boyd 505,051 ‑ Nil 01/07/2020 04/12/2025
J G Duffy - 2,500,000 20.5p 08/07/2014 30/10/2016
J G Duffy 1,137,898 1,137,898 Nil 01/07/2019 26/06/2025
J G Duffy 695,095 - Nil 01/07/2020 04/12/2025
3,059,261 7,112,774
The mid‑ market price of the ordinary shares on 2 July 2016 was 111.0p (2015: 83.5p) and the range during the 53 week period to 2 July 2016 was 
80p to 124p (2015: 53p to 92p). 50 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
8. Finance Income and Cost
Recognised in the Consolidated Statement of Profit and Loss 
 
2016
£000
2015
£000
Finance income
Change in fair value of interest rate swaps 219 28
Bank interest receivable 2 1
Unwinding of discount of deferred consideration receivable - 105
T otal finance income 221 134
Finance cost
Interest on net pension position (148) (154)
Bank interest payable (787) (748)
Interest on interest rate swap agreements (273) (276)
T otal finance cost (1,208) (1,178)
 
9. Taxation
Recognised in the Consolidated Statement of Profit and Loss
 
2016  
£000
2015  
£000
Current tax 
Current year 2,745 1,221
Adjustments for prior years 82 (121)
T otal current tax 2,827 1,100
Deferred tax
Origination and reversal of temporary differences 928 753
Retirement benefit deferred tax charge (6) (11)
Adjustments for prior years (463) 20
T otal deferred tax 459 762
T otal tax expense 3,286 1,862
Reconciliation of Effective Tax Rate
The weighted average hybrid rate of UK and French tax is 21.8% (2015: 22.8%). The tax assessed for the period is lower (2015: lower) than the hybrid 
rate of UK and French tax. The UK corporation tax rate for the period is 20.00% (2015: 20.75 %). The differences are explained below:
 
2016  
£000
2015  
£000
Profit before taxation before losses from equity accounted investees 11,804 8,482
T ax using the UK corporation tax rate of 20.00% (2015: 20.75%) 2,361 1,760
Overseas profits charged at different taxation rate 207 173
Non‑deductible expenses 99 239
Amortisation of intangible asset - 60
T emporary differences* 7 (143)
Restatement of opening net deferred tax due to rate change and differences in rates 275 (28)
R&D uplift current year (140) (98)
Adjustments to tax charge in respect of prior periods (381) (101)
T ax expense (excluding significant non-recurring item) 2,428 1,862
T ax rate for the period (excluding disallowable impairment) 20.6% 22.0%
Disallowable intangible impairment 858 ‑ T otal tax expense 3,286 1,862
*Temporary differences relate to share based payments.  51 Finsbury Food Group  
Annual Report & Accounts 2016
9. Taxation (continued) 
Reductions in the corporation tax rate from 21% to 20% (effective from 1 April 2014) were substantively enacted on 2 July 2013. Legislation has been 
introduced in the Summer Finance Bill 2015 to reduce the main rate of corporation tax from 20% to 19% from 1 April 2017 and 18% from 1 April 2020. 
The deferred tax asset at 2 July 2016 has been calculated based on the rate of 18% substantively enacted at the balance sheet date. The impact 
through the profit and loss of reduction from 20% to 18% on recognised net deferred tax asset is £275,000 charge. 
A further reduction in the UK corporation tax rate to 17% from 1 April 2020 was announced in the Budget on 16 March 2016. This rate will not 
affect the measurement of deferred tax until it has been substantively enacted.
The adjustment of £381,000 for prior year includes deferred tax on amortisation of intangibles (see Notes 12 and 24 for further details), ineligible 
capital spend and additional tax relief on qualifying R&D expenditure for prior periods.
The Company has an unrecognised deferred tax asset of £172,170 (2015: £191,300). This asset has not been recognised in these Financial Statements 
as suitable profits to utilise the underlying capital losses are not expected to arise in the future. 
10. Earnings Per Ordinary Share
Basic earnings per share for the period is calculated on the basis of profit for the year after tax, divided by the weighted average number of shares 
in issue being 126,938,000 (2015: 106,759,000).  
Basic diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume conversion of all 
potential dilutive ordinary shares. At 2 July 2016, the diluted weighted average number of shares in issue was 129,206,000 (2015: 110,507,000). 
An adjusted earnings per share and an adjusted diluted earnings per share have also been calculated for a 52 week period as in the opinion of the 
Board this will allow shareholders to gain a clearer understanding of the trading performance of the Group and year on year comparisons. These 
adjusted earnings per share exclude:
• Reorganisation and other significant non-recurring items 
•  IAS 39 ‘Financial Instruments: Recognition and Measurement’ fair value adjustment relating to the Group’s interest rate swaps and foreign 
exchange contracts
• IAS 19 (revised) ‘Accounting for retirement benefits’ relating to net income
• IFRS 3 ‘Business Combinations’ discount charge relating to deferred consideration payable and receivable
• The taxation effect at the appropriate rate on adjustments
•  Amortisation of intangible assets
Significant non-recurring items are tabled in the Strategic Report on page 17.
53 weeks to
2 Jul 2016
£000
52 weeks to
2 Jul 2016
£000
52 weeks to
27 Jun 2015
£000
Profit
Profit attributable to equity holders of Company 
(basic)
7,791 7,528 6,179
Significant non-recurring, amortisation of 
intangibles and other items
4,692 4,692 2,643
Numerator for adjusted earnings per share 
calculation (adjusted basic)
12,483 12,220 8,822
Basic 
‘000
Diluted 
‘000
Basic 
‘000
Diluted 
‘000
Basic 
‘000
Diluted 
‘000
Shares
Weighted average number of ordinary shares in issue 
during the period
126,938 126,938 126,938 126,938 106,759 106,759
Dilutive effect of share options ‑ 2,268 ‑ 2,268 - 3,748
126,938 129,206 126,938 129,206 106,759 110,507
Basic 
Pence
Diluted 
Pence
Basic 
Pence
Diluted 
Pence
Basic 
Pence
Diluted 
Pence
Earnings per share
Basic and diluted 6.1 6.0 5.9 5.8 5.8 5.6
Adjusted basic and adjusted diluted 9.8 9.7 9.6 9.5 8.3 8.0 52 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
11. Purchase of Subsidiary Companies and Deferred Consideration Cashflow
The net cash outflow during the prior year shown as ‘purchase of subsidiary companies’ on the face of the Consolidated Cash Flow Statement 
relates to:
 
2016
£000
2015
£000
Cash consideration paid in respect of Fletchers Group of Bakeries acquisition - 39,084
Cash consideration paid in respect of Johnstone’s Just Desserts Ltd acquisition - 1,550
Cash consideration paid in respect of 25% share of Dr Zak’s Ltd - 175
Cash outflow - 40,809
Deferred consideration paid in respect of 25% share of Dr Zak’s Ltd 50 ‑ Deferred consideration received in respect of the sale of Free From - (3,000)
12. Intangibles
Intangible assets comprise customer relationships, brands and goodwill. 
 
Goodwill
£000
Software
£000
Brands and 
licences
£000
Customer 
relationships
£000
T otal
£000
Cost at 28 June 2014 52,968 ‑ 822 ‑ 53,790
Cost at 27 June 2015 71,704 ‑ 3,683 5,909 81,296
Adjustment in respect of prior year acquisition  
(see Note below) 1,754 ‑ ‑ ‑ 1,754
Additions ‑ 600 ‑ ‑ 600
Cost at 2 July 2016 73,458 600 3,683 5,909 83,650
Amortisation at 28 June 2014 ‑ ‑ (822) ‑ (822)
Charge for the year 27 June 2015 ‑ ‑ (107) (296) (403)
Amortisation at 27 June 2015 ‑ ‑ (929) (296) (1,225)
Charge for the year 2 July 2016 (4,290) ‑ (144) (395) (4,829)
Amortisation/impairment at 2 July 2016 (4,290) - (1,073) (691) (6,054)
Net book value at 28 June 2014 52,968 ‑ ‑ ‑ 52,968
Net book value at 27 June 2015 71,704 ‑ 2,754 5,613 80,071
Net book value at 2 July 2016 69,168 600 2,610 5,218 77,596
A deferred tax liability in respect of the intangible assets recognised as part of the prior year acquisition has been updated and reflected in the current 
year Financial Statements, resulting in an increase in the deferred tax liability of £1,754,000 and a corresponding increase in goodwill. The deferred 
tax liability will unwind in line with the amortisation of the intangible assets (see Notes 9 and 24 for the details of the tax impact).
The brand and customer relationships recognised were purchased as part of the acquisition of Fletchers Group of Bakeries in October 2014. They are  
considered to have finite useful lives and are amortised on a straight-line basis over their estimated useful lives of twenty years for brands and fifteen  
years for customers. The intangibles were valued using an income approach, using Multi-Period excess earnings Method for customer relationships 
and Relief from Royalty Method for brand valuation. The amortisation of intangibles has been charged to administrative expenses in the  
Income Statement.
Goodwill has arisen on acquisitions and reflects the future economic benefits arising from assets that are not capable of being identified individually 
and recognised as separate assets. The goodwill reflects the anticipated profitability and synergistic benefits arising from the enlarged Group 
structure. The goodwill is the balance of the total consideration less fair value of assets acquired and identified. The carrying value of the goodwill 
is reviewed annually for impairment. The carrying value of all goodwill has been assessed during the year and a non‑ cash impairment of goodwill 
arising from an acquisition in 2007 has been made during the year.
The Group tests goodwill for impairment on an annual basis, or more frequently if there are indications that the goodwill may be impaired. 
The recoverable amounts of the cash generating units are determined from value in use calculations. The key assumptions for the value in use 
calculations are the discount rate used for future cash flows and the anticipated future changes in revenue, direct costs and indirect costs.  
The assumptions used reflect the past experience of management and future expectations.
The Group prepares cash flow forecasts covering a five year period based on the detailed financial forecasts approved by management for the  
next three years with estimated growth and inflation of 3% (2015: 3%) and 3% (2015: 3%) respectively thereafter (with the exception of Anthony  
Alan Foods Limited, see opposite). The cashflows beyond this forecast are extrapolated to perpetuity using a nil growth rate on a prudent basis, 
to reflect the uncertainties of forecasting further than five years. Changes in revenue and direct costs are based on past experience and 
expectations of future changes in the market.   53 Finsbury Food Group  
Annual Report & Accounts 2016
12. Intangibles (continued) 
The revenue growth rate combines volume, mix and price of products. An inflation factor has been applied to costs of sales, variable costs and indirect 
costs and takes into consideration the general rate of inflation, movements in commodities, improvement in efficiencies from capital investment 
and operations and purchasing initiatives.
A pre‑ tax discount rate of 10% (2015: 10%) has been used in these calculations. The Group has considered the economic environment and higher 
level of return expected by equity holders due to the perceived risk in equity markets when selecting the discount rate. The discount rate used for 
each cash generating unit has been kept constant as the market risk is deemed not to be materially different between the different segments  
of the bakery sector, nor over time.
A non-cash impairment of the goodwill arising from the acquisition of Anthony Alan Foods Ltd in 2007 has been made during the year. The impairment 
reflects the challenging market and changing dynamics of the ‘healthier’ grocery market. The related goodwill has been fully impaired and reflected 
in both the Lightbody of Hamilton and Memory Lane Cakes cash generating units accordingly. The impairment is shown as a significant non-recurring 
item within administrative expenses.
Sensitivity analyses have been carried out by the Directors on the carrying value of all remaining goodwill using discount rates ranging between 
8.6% and 15.0% which would not result in an impairment of any cash generating units. Management believe any increase in discount rates above 
15% to be remote. 
The carrying amount of goodwill has been allocated to cash generating units or groups of cash generating units as follows:
2016
£000
2015
£000
Nicholas & Harris 2,980 2,980
Lightbody of Hamilton 45,698 48,474
Memory Lane Cakes - 1,514
Fletchers Bakery 20,118 18,364
Johnstone’s Foodservice 372 372
69,168 71,704 54 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
13. Property, Plant and Equipment
 
Land and
 buildings
£000
Plant and
 equipment
£000
Fixtures &
 fittings
£000
Assets under
construction
£000
T otal
£000
Cost
Balance at 29 June 2014 10,940 26,125 2,301 723 40,089
Exchange adjustments ‑ ‑ (16) ‑ (16)
Assets acquired with subsidiary 4,592 40,742 ‑ ‑ 45,334
Additions 11 6,592 446 305 7,354
T ransfers (261) ‑ 261 ‑ ‑ Disposals (22) (316) (139) ‑ (477)
Balance at 27 June 2015 15,260 73,143 2,853 1,028 92,284
Balance at 28 June 2015 15,260 73,143 2,853 1,028 92,284
Exchange adjustments ‑ ‑ 39 ‑ 39
Additions 76 7,162 756 3,601 11,595
T ransfers ‑ 1,028 ‑ (1,028) ‑ Disposals ‑ (265) (49) ‑ (314)
Balance at 2 July 2016 15,336 81,068 3,599 3,601 103,604
Depreciation and impairment 
Balance at 29 June 2014 (3,339) (13,413) (1,796) ‑ (18,548)
Exchange adjustments ‑ ‑ 9 ‑ 9
Assets acquired with subsidiary (1,092) (21,659) ‑ ‑ (22,751)
Depreciation charge for the financial period (333) (4,801) (299) ‑ (5,433)
Disposals 22 316 139 ‑ 477
Balance at 27 June 2015 (4,742) (39,557) (1,947) - (46,246)
Balance at 28 June 2015 (4,742) (39,557) (1,947) ‑ (46,246)
Exchange adjustments ‑ ‑ (27) ‑ (27)
Depreciation charge for the financial period (422) (6,289) (379) ‑ (7,090)
Disposals ‑ 211 49 ‑ 260
Balance at 2 July 2016 (5,164) (45,635) (2,304) - (53,103)
Net book value     
At 28 June 2014 7,601 12,712 505 723 21,541
At 27 June 2015 10,518 33,586 906 1,028 46,038
At 2 July 2016 10,172 35,433 1,295 3,601 50,501
Leased Plant and Equipment
The net book value of assets held under finance lease or hire purchase contracts included above is as follows: 
2016
£000
2015
£000
Plant and equipment 1,232 1,502
Security
HSBC Bank Plc, HSBC Asset Finance (UK) Ltd, HSBC Equipment Finance (UK) Ltd and HSBC Corporate Trustee Company (UK) Limited have debentures 
incorporating fixed and floating charges over the undertaking and all property and assets including goodwill, book debts, uncalled capital, buildings, 
fixtures, fixed plant and machinery. Hire purchase obligations are secured on the underlying assets.
The lease obligations are secured on leased equipment (see Note 20). 55 Finsbury Food Group  
Annual Report & Accounts 2016
14. Other Financial Assets and Liabilities
 
2016 
£000
2015 
£000
Non-current 
Investments in equity accounted investees
At the beginning of the financial year 225 225
Share of losses (14) ‑ At the end of the financial year 211 225
Other financial assets 28 28
Current assets – derivatives
Fair value of foreign exchange contracts - 117
T otal of derivatives with positive fair values - 117
Current liabilities – derivatives
Fair value of interest rate swaps (140) (359)
Fair value of foreign exchange contracts (17) ‑ T otal of derivatives with negative fair values (157) (359)
Investment in Associates
During the previous year the Group purchased 25% of the ordinary share capital of Dr Zak’s Ltd for a consideration of £225,000. The cost of investment  
is deemed to be the fair value. The Group’s share of profit or loss of equity accounted Associates after tax is presented in a single line in the Consolidated 
Statement of Profit and Loss. This is a loss of £14,000 for the current year (2015: £nil).
Interest Rate Swaps at Fair Value
The Group has two interest rate swap arrangements to hedge its risks associated with interest rate fluctuations:
£3.0 million for four years from 22 May 2013 (fixed) at 1.7%
£6.0 million for three years from 2 June 2015 (fixed) at 1.9%
The total coverage at the year end of £9.0 million (2015: £14.0 million) is equivalent to 46% (2015: 66%) of total net bank debt at a weighted 
average rate of 1.8% (2015: 2.5%).
A credit of £219,000 (2015: credit £28,000) is shown in finance income for the periods reflecting changes in the fair values of interest rate swaps. 
The fair values are liabilities as a result of the current low levels of base and LIBOR interest rates.
A £5.0 million swap fixed at 3.6% expired on 1 July 2016, on 7 September 2016 the Group entered into a forward dated swap for £20.0 million  
for five years from 3 July 2017 (fixed) at 0.455%.
Forward Foreign Exchange Contracts at Fair Value
The Group has entered into a number of forward foreign exchange contracts to minimise the impact of fluctuations in exchange rates. A charge  
of £134,000 (2015: credit £181,000) is shown in administrative expenses for the periods reflecting changes in their fair value.  56 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
15. Deferred Consideration Receivable
On 27 February 2013 the Group sold its Free From business to Genius Foods for a total value of £21,257,000, including £3,000,000 of deferred 
consideration which was received on 27 February 2015. 
 £000
Balance at 29 June 2014 2,895
Unwinding of discount 105
Amount received during the year ended 27 June 2015 (3,000)
Balance at 27 June 2015 -
16. Pension Schemes
A number of companies within the Group operate defined contribution pension schemes with one company also operating a defined benefit scheme. 
Defined Contribution Scheme
The Group made contributions in respect of its defined contribution pension arrangements of £1,187,000 (2015: £1,191,000). 
Defined Benefit Scheme
The Group’s defined benefit scheme is the Memory Lane Cakes Pension Scheme, which is a separately administered plan. At the financial year end,  
the scheme had no active members accruing benefits (2015: nil), 206 deferred pensioner members (2015: 217) and 215 pensioner members (2015: 209).
The scheme was closed to future accrual on 31 May 2010. The assets of the scheme are held separately from those of the Company. The amounts 
in the Financial Statements for the 53 weeks ended 2 July 2016 relating to defined benefit pension are based on a full actuarial valuation dated  
31 December 2015, which was updated at the end of the Scheme’s financial year 2016.
A £117,000 contribution was paid during the financial year 2016 by Memory Lane Cakes (2015: £100,000).  The Group’s contribution has been agreed 
based on the outcome of the full actuarial valuation dated 31 December 2012 and 31 December 2015. The valuation of the Scheme on an equity/bond  
basis and projected unit method, showed that there was a deficit at 31 December 2015 of £2,505,000 equivalent to an 11% deficit of liabilities over  
assets. The valuation was conducted by a qualified independent actuary. This deficit is payable at a rate of £200,000 per annum until September  
2020, and £100,000 thereafter until September 2023. The next full valuation is due by 31 December 2018, which will challenge the appropriateness  
of this recovery plan taking into consideration the deficit recovery contributions and actual returns realised on the pension scheme assets. 
Approximately 90% of the assets are held in two diversified growth funds which target 6 month LIBOR +5% and CPI +5% respectively. The scheme’s 
assets are expected to provide real returns over the long‑ term. The expected return on cash balances held is based on the current Bank of England 
base rate rather than long‑ term deposit rates as cash is held to cover short‑ term requirements. 
The full actuarial valuation differs from the financial year end valuation deficit of £6,463,000 (2015: £3,837,000). No allowance is made in the financial 
year end valuation for any outperformance expected from the Scheme’s actual asset holding over and above high quality corporate bonds.
 
2016 
£000
2015 
£000
Fair value of plan assets 19,287 20,587
Present value of defined benefit obligations (25,750) (24,424)
Deficit recognised (6,463) (3,837)
The fair value of plan assets and the return on those assets were as follows:
 
2016  
£000
2015  
£000
Equities/target return fund 17,291 18,580
Property 1,868 1,939
Cash 128 68
Fair value of plan assets 19,827 20,587
Actual return on plan assets (661) 1,491
None of the fair values of the assets shown above includes any of the Company’s own financial instruments or any property occupied by,  
or any other assets used by, the Company. 57 Finsbury Food Group  
Annual Report & Accounts 2016
16. Pension Schemes (continued) 
 
2016 
£000
2015 
£000
Movements in present value of defined benefit obligation
At beginning of financial year (24,424) (23,371)
Interest on plan obligations (938) (989)
Benefits paid 756 745
Remeasurement – experience gain on liabilities 236 ‑ Remeasurement – loss from changes to financial assumptions (1,786) (790)
Remeasurement – gain from changes to demographic assumptions 406 (19)
At end of financial year (25,750) (24,424)
Movements in fair value of plan assets
At beginning of financial year 20,587 19,741
Interest on plan assets 790 835
Return on plan assets less interest (1,451) 656
Benefits paid (756) (745)
Contributions by employer 117 100
At end of financial year 19,287 20,587
 
Remeasurement gains and losses arise due to changes in the key assumptions such as inflation, mortality rates, demographic rates and discount 
rates as well as experience gains and losses. 
(Expense)/Income Recognised in the Consolidated Statement of Profit and Loss
Interest on plan assets/finance income 790 835
Interest on plan obligations/finance expense (938) (989)
T otal (expense)/income             (148) (154)
Remeasurement Gains and Losses recognised directly in equity in the Statement of Comprehensive Income and Expense since 1 July 2006, the transition 
date to Adopted IFRS
Cumulative amount at beginning of financial year (6,005) (5,852)
Recognised in the financial year – return on plan assets less interest (1,451) 656
Recognised in the financial year – experience losses/(gains) on liabilities 236 ‑ Recognised in the financial year – loss from changes to financial assumptions (1,786) (790)
Recognised in the financial year – gains/(losses) from changes to demographic assumptions 406 (19)
Cumulative amount at end of financial year  (8,600) (6,005)
Principal Long-term Actuarial Assumptions at the Year End
 
2016  
%
2015  
%
CPI price inflation assumption 2.0 2.3
Increases to pensions in payment 2.0 2.3
Discount rate for liabilities 3.2 3.9
Rate of return for plan assets 3.2 3.9
The differential between the assumed rate of inflation and the discount rate for liabilities is 1.2% (2015: 1.6%).
Salary inflation assumptions are as determined by the Board with regard to price inflation. The salary inflation from 31 May 2010 when the scheme 
closed to future accrual was assumed to be in line with inflation. 58 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
16. Pension Schemes (continued) 
The financial assumptions are based on market conditions as at the review date of 2 July 2016 with discount rates based on the yields on long-dated 
high quality corporate bonds. The discount rate is lower than the discount rate used last year reflecting the change in bond yields over this period. 
The rate of return for plan assets is the long-term rate that reflects the yield on high quality corporate bonds as required under changes to IAS 19.   
The rate of return is effectively based on the discount rate with no allowance made for any outperformance expected from the scheme’s actual asset 
holding. The actual return on the scheme’s assets, net of expenses, over the year to the review date was around ‑ 3.3% (2015: 7.7%), the negative 
return occurred in the second half of the year and was impacted by the uncertainty and volatility around the time of the EU referendum vote.
2016 2015
Pre‑retirement mortality assumption 
 
S2NA year of birth tables with CMI 2015 
projections and 1.25% pa long-term rate of 
improvement
S1NA year of birth tables with CMI 2012 
projections and 1.25% pa long‑term rate of 
improvement
Post‑retirement mortality assumption 
 
S2NA year of birth tables with CMI 2015 
projections and 1.25% pa long-term rate of 
improvement
S1NA year of birth tables with CMI 2012 
projections and 1.25% pa long‑term rate of 
improvement
Under the mortality tables adopted, the assumed future life expectancy at age 65 is as follows:
2016 2015
Male currently at age 45 24.1 24.3
Female currently at age 45 26.4 27.0
Male currently at age 65 22.4 22.5
Female currently at age 65 24.5 25.0
Changing the year end 2016 assumptions to those of 2015 year end listed above, the deficit would have been £5,083,000 compared to the 
reported deficit of £6,463,000.
Sensitivity Analysis
The calculation of the defined benefit obligation is sensitive to the assumptions set out above. The following table summarises changes in these 
assumptions and their approximate (decrease)/increase in liabilities.
 2016
Discount rate plus 0.5% (£2.2 million)
Discount rate minus 0.5% £2.5 million
Inflation plus 0.5% £2.5 million
Inflation minus 0.5% (£2.2 million)
Life expectancy plus 1.0 years £0.5 million
Life expectancy minus 1.0 years (£0.5 million)
The above sensitivities are approximate and only show the likely effect of an assumption being adjusted whilst all other assumptions remain the same.
The weighted average duration of the defined benefit obligation is around 18 years.
Risk Mitigation Strategies
Whilst the scheme does not explicitly hold risk mitigation strategies such as swaps, annuities or liability driven investments, the investment 
strategy is dominated by diversified growth funds which are intended to reduce the investment risk through diversification.
Effect of the Scheme on the Company’s Future Cashflows
The Company is required to agree a Schedule of contributions with the Trustees of the Scheme following a valuation which must be carried out at least  
once every three years. The next valuation of the scheme is due as at 31 December 2018. In the event that the valuation reveals a larger deficit than 
expected the Company may be required to increase contributions above those set out in the existing Schedule of Contributions. Conversely, if the  
position is better than expected contributions may be reduced. The total cash cost to the Company for the current financial year is £481,000, this  
includes deficit recovery contributions, pension protection fund levy fees and cost of advisors. The Company expects to pay deficit recovery contributions 
of £200,000 in the year to 30 June 2017. The projected net interest charge to the Consolidated Statement of Profit and Loss for the year to 30 June 
2017 is £204,000. This projection assumes cashflows to and from the scheme are broadly unchanged from the current year figures and that there 
will be no events that would give rise to a settlement/curtailment/past service cost.   59 Finsbury Food Group  
Annual Report & Accounts 2016
16. Pension Schemes (continued) 
Consolidated Statement of Financial Position
 
2016  
£000
2015  
£000
2014  
£000
2013  
£000
2012
£000
Fair value of plan assets 19,287 20,587 19,741 18,728 18,349
Present value of the defined benefit obligation (25,750) (24,424) (23,371) (21,571) (21,424)
Deficit (6,463) (3,837) (3,630) (2,843) (3,075)
Experience adjustments on plan assets (1,451) 656 927 332 (1,772)
as a percentage of plan assets 7.5% 3.2% 4.7% 1.8% 9.7%
Experience adjustments on plan liabilities 236 ‑ ‑ 339 ‑ as a percentage of plan liabilities 0.9% 0.0% 0.0% 1.6% 0.0%
T otal remeasurement (losses)/gains (2,595) (153) (726) (543) (2,357)
as a percentage of plan liabilities 10.0% 0.6% 3.1% 2.5% 11.0%
17. Inventories
 
2016  
£000
2015  
£000
Raw materials and consumables 7,018 5,872
Finished goods 5,559 5,396
 12,577 11,268
Inventories Recognised as an Expense
 
2016  
£000
2015  
£000
Opening inventories 11,268 4,530
Purchases 135,441 90,839
(Decrease)/increase in stock provisions (199) 443
Closing inventories (12,577) (11,268)
Expensed during the period 133,933 84,544
18. Trade and Other Receivables
 
2016  
£000
2015  
£000
T rade receivables due from third parties 44,900 42,845
Other debtors 3,532 2,888
Prepayments and accrued income 1,900 2,648
 50,332 48,381
Specific provisions are made against doubtful debts taking the value of trade receivables to an estimated value based on the most likely outcome.
Cash received under the invoice discounting facility, amounting to £10,824,000 (2015: £3,397,000) is shown within current liabilities and is 
secured on the trade receivables above. All the risks and rewards of the trade debtors lie with the Group. 
19. Cash and Cash Equivalents Including Bank Overdrafts
 
2016  
£000
2015  
£000
Cash at bank and on hand 10,511 6,147
Bank overdraft (7,487) (6,086)
 3,024 61 60 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
20. Other Interest‑ bearing Loans and Borrowings
This Note provides information about the contractual terms and repayment terms of the Group’s interest‑ bearing loans and borrowings, which 
are measured at amortised cost, using the effective interest rate method.  
2016 Margin
Frequency of
repayments
Year of 
maturity
Facility
£000
Drawn
£000
Current
£000
Non-current
£000
Invoice discounting 1.50%/base On demand Revolving* 22,000 10,824 10,824 ‑ T erm loan 2.00%/LIBOR Quarterly 2019 13,400 8,905 2,568 6,337
Revolving credit 2.00%/LIBOR Varies 2019 8,000 ‑ ‑ ‑ Mortgage 1.75%/LIBOR Quarterly 2022 3,470 2,826 369 2,457
Finance lease liabilities 1.76%/base Monthly Various 2,000 190 133 57
Overdraft 2.00%/base On demand ‑ 2,000 ‑ ‑ ‑    50,870 22,745 13,894 8,851
Unamortised transaction costs     (176) (65) (111)
     22,569 13,829 8,740
Secured bank loans and mortgages over one year 8,851
Unamortised transaction costs      (111)
       8,740
Repayments are as follows:
Between one and two years 2,940
Between two and five years 4,817
Between five and ten years      983
       8,740
2015 Margin
Frequency of
repayments
Year of 
maturity
Facility
£000
Drawn
£000
Current
£000
Non-current
£000
Invoice discounting 1.50%/base On demand Revolving* 22,000 3,397 3,397 ‑ T erm loan 2.00%/LIBOR Quarterly 2019 13,400 12,116 3,211 8,905
Revolving credit 2.00%/LIBOR Varies 2019 8,000 2,000 2,000 ‑ Mortgage 1.75%/LIBOR Quarterly 2022 3,470 3,287 461 2,826
Finance lease liabilities 1.76%/base Monthly Various 2,000 474 284 190
Overdraft 2.00%/base On demand ‑ 2,000 ‑ ‑ ‑    50,870 21,274 9,353 11,921
Unamortised transaction costs     (240) (65) (175)
     21,034 9,288 11,746
Secured bank loans and mortgages over one year (included above) 11,921
Unamortised transaction costs      (175)
       11,746
Repayments are as follows:
Between one and two years 3,006
Between two and five years 7,389
Between five and ten years      1,351
       11,746
* Revolving maturity above relates to the payment terms on the invoice discounting which is up to 90 days from the date of invoice. The invoice 
discounting facility renewal date is October 2019.
Finance lease liabilities are payable as follows:
             2016 2015
 
Minimum lease 
payments
£000
Interest
£000
Principal
£000
Minimum lease 
payments
£000
Interest
£000
Principal
£000
Less than one year 136 3 133 294 10 284
Between one and five years 58 1 57 194 4 190
 194 4 190 488 14 474
All of the above loans are denoted in pounds sterling, with various interest rates and maturity dates. The main purpose of the above facilities  
is to finance the Group’s operations. For more information about the Group’s exposure to interest rate risk, see Note 25. 61 Finsbury Food Group  
Annual Report & Accounts 2016
20. Other Interest‑ bearing Loans and Borrowings (continued) 
As part of the bank borrowing facility the Group needs to meet certain covenants every six months. There were no breaches of covenants during 
the year. The covenant tests required are as follows:
Net bank debt : EBITDA 
Interest cover 
Debt service cover
Capital expenditure
The bank facilities (excluding overdraft) available for drawdown are £48.9 million (2015: £48.9 million). At the period end date the facility utilised 
was £22.7 million (2015: £21.3 million), giving £26.2 million (2015: £27.6 million) headroom.
21. Analysis of Net Debt
 Note
At year ended
27 June 2015
£000
Cash flow 
£000
At year ended
2 July 2016
£000
Cash at bank 61 2,963 3,024
Debt due within one year (5,672) 2,735 (2,937)
Debt due after one year (11,731) 2,937 (8,794)
Invoice discounting due within one year (3,397) (7,427) (10,824)
Hire purchase obligations due within one year (284) 151 (133)
Hire purchase obligations due after one year (190) 133 (57)
T otal net bank debt (21,213) 1,492 (19,721)
Debt 20 (21,034) ‑ (22,569)
Cash at bank 19 61 ‑ 3,024
Unamortised transaction costs (240) ‑ (176)
T otal net bank debt (21,213) ‑ (19,721)
Deferred consideration payable  (50) ‑ -
T otal net debt including deferred consideration payable (21,263) ‑ (19,721)
Cash at bank 61 ‑ 3,024
T otal debt including deferred consideration payable excluding cash (21,324) ‑ (22,745)
22. Trade and Other Payables
 
2016  
£000
2015  
£000
Current
T rade creditors 38,049 37,457
Other creditors including taxes and social security 1,947 1,718
Accruals and deferred income 24,361 23,108
 64,357 62,283
23. Provisions
 
Employee claims
£000
Pension
£000
T otal
£000
Balance at beginning of financial year  234 179 413
Utilised during the financial year (5) (20) (25)
Balance at end of financial year 229 159 388
Current provisions 229 18 247
Non‑current provisions ‑ 141 141
The employee claims provision is based on the number of reported accidents and incidents and the number of expected claims yet to be reported 
based on historical evidence, all accrued at amounts up to the maximum self‑ insured amount of £10,000 per claim. 
The pension provision relates to a contractual liability for pension augmentation, the amount utilised during the year represents payments  
in relation to the augmentations which are being paid over 14 years.  62 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
24. Deferred Tax Assets and Liabilities 
Recognised deferred tax assets and liabilities. 
Deferred tax assets and liabilities are attributable to the following:
Assets Liabilities
 
2016  
£000
2015  
£000
2016  
£000
2015  
£000
Intangibles - ‑ (1,409) ‑ Property, plant and equipment - ‑ (138) (41)
Foreign exchange contracts 3 ‑ - (23)
Short-term temporary differences 37 ‑ - (39)
Interest rate swaps 25 72 - ‑ Pension scheme charges 1,163 767 - ‑ Employee share scheme charges 202 758 - ‑ Losses acquired 2,062 2,849 - ‑ T ax assets/(liabilities) 3,492 4,446 (1,547) (103)
Net tax assets/(liabilities) 1,945 4,343 - ‑ Short-term temporary differences relate to general provisions which will be allowed when utilised. The deferred tax asset recognised for losses 
relate to acquired businesses, based on current and forecast levels of profitability, the losses are expected to be utilised within 3 years.
Movement in Deferred T ax during the Year
 
27 June 
2015  
£000
Recognised
in income  
£000
Recognised
in equity  
£000
Recognition of 
deferred tax on 
intangible assets*  
£000
2 July 
2016
£000
Intangibles ‑ 345 ‑ (1,754) (1,409)
Property, plant and equipment (41) (97) ‑ ‑ (138)
Foreign exchange contracts (23) 26 ‑ ‑ 3
Short-term temporary differences (39) 76 ‑ ‑ 37
Interest rate swaps 72 (47) ‑ ‑ 25
Pension scheme 767 6 390 ‑ 1,163
Employee share scheme 758 19 (575) ‑ 202
Losses acquired 2,849 (787) ‑ ‑ 2,062
 4,343 (459) (185) (1,754) 1,945
*A deferred tax liability in respect of the intangible assets recognised as part of the prior year acquisition has been updated and reflected in the 
current year Financial Statements, resulting in an increase in the deferred tax liability of £1,754,000 and a corresponding increase in goodwill. 
The deferred tax liability will unwind in line with the amortisation of the intangible assets (see Notes 9 and 24 for the details of the tax impact).
Movement in Deferred T ax during the Prior Year
 
28 June 
2014
£000
Recognised
in income
£000
Recognised
in equity
£000
Acquired
£000
27 June 
2015
£000
Property, plant and equipment (318) (215) ‑ 492 (41)
Foreign exchange contracts 13 (36) ‑ ‑ (23)
Short-term temporary differences (104) (171) ‑ 236 (39)
Interest rate swaps 77 (5) ‑ ‑ 72
Pension scheme 726 10 31 ‑ 767
Employee share scheme 513 2 243 ‑ 758
Losses acquired ‑ (326) ‑ 3,175 2,849
IFRS fair value adjustments deferred consideration 21 (21) ‑ ‑ ‑ 928 (762) 274 3,903 4,343 63 Finsbury Food Group  
Annual Report & Accounts 2016
25. Financial Risk Management 
The main purpose of the Group’s financial instruments is to finance the Group’s operations. The financial instruments comprise of bank term loans,  
invoice discounting facility, hire purchase, finance leases, interest rate swaps, foreign currency forwards, cash and liquid resources and various  
items arising directly from its operations, such as trade receivables and trade payables. The main risks arising from the Group’s financial instruments 
are interest rate risk and liquidity risk. The Group’s policies on the management of liquidity, credit, interest rate and foreign currency risks are set 
out below and also referred to in the Strategic Report on pages 8 to 21.
a) Fair Values of Financial Instruments
All financial assets and liabilities are held at amortised cost apart from forward exchange contracts, interest rate swaps and deferred consideration 
receivable, which are held at fair value, with changes going through the Consolidated Statement of Profit and Loss. The Group has not disclosed 
the fair values for financial instruments such as short-term trade receivables and payables, because their carrying amounts are a reasonable 
approximation of fair values.  
The fair values of forward exchange contracts and interest rate swaps are determined using a market comparison valuation technique. The fair 
values are based on broker quotes. Similar contracts are traded in an active market and the quotes reflect the actual transactions in similar 
instruments. The fair values relating to these instruments represent level 2 in the fair value hierarchy which relates to the extent the fair value 
can be determined by reference to comparable market values. The classifications range from level 1 where instruments are quoted on an active 
market through to level 3 where the assumptions used to arrive at fair value do not have comparable market data. 
b) Liquidity
The Group’s policy is to ensure that it has sufficient facilities to cover its future funding requirements. Short-term flexibility is available through the  
existing bank facilities and the netting off of surplus funds. The carrying amounts are the amounts due if settled at the period end date. The contractual 
undiscounted cash flows include estimated interest payments over the life of these facilities. The estimated interest payments are based on 
interest rates prevailing at the 2 July 2016. 
Contractual cashflows including estimated interest
At year ended 2 July 2016
Carrying amount 
£000
T otal
£000
1 year 
or less
£000
1 to 2 
years
£000
2 to 5 
years
£000
5 years 
and over
£000
Non-derivative financial liabilities
Secured bank loans (11,555) (12,401) (3,202) (3,128) (5,063) (1,008)
Finance lease liabilities (190) (194) (136) (58) ‑ ‑ Invoice discounting (10,824) (10,824) (10,824) ‑ ‑ ‑ T rade creditors (38,049) (38,049) (38,049) ‑ ‑ ‑ Derivative financial liabilities
Interest rate swaps liabilities (140) (108) (108) ‑ ‑ ‑ (60,758) (61,576) (52,319) (3,186) (5,063) (1,008)
Contractual cashflows including estimated interest
At year ended 27 June 2015
Carrying amount 
£000
T otal
£000
1 year 
or less
£000
1 to 2 
years
£000
2 to 5
years
£000
5 years 
and over
£000
Non-derivative financial liabilities
Secured bank loans (17,163) (18,412) (6,026) (3,198) (7,785) (1,403)
Finance lease liabilities (474) (488) (293) (137) (58) ‑ Invoice discounting (3,397) (3,397) (3,397) ‑ ‑ ‑ Deferred consideration (50) (50) (50) ‑ ‑ ‑ T rade creditors (37,457) (37,457) (37,457) ‑ ‑ ‑ Derivative financial liabilities
Interest rate swaps liabilities (359) (377) (270) (107) ‑ ‑ (58,900) (60,181) (47,493) (3,442) (7,843) (1,403)
The carrying amount relating to interest rate swaps is the fair value.
The information relating to the interest rate swaps shown in the tables above indicate the cash flows associated with these instruments. This also 
reflects the expected effect on the future profit. These amounts will change as interest rates change.
Short-term flexibility is available through existing bank facilities and the netting off of surplus funds. 64 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
25. Financial Risk Management (continued)
c) Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, 
and arises principally from the Group’s receivables from customers. These trading exposures are monitored and managed at operating level and 
are also monitored at Group level. Whilst there is a concentration of credit risk arising from the profile of five customers accounting for 69% of total 
revenue, the Group deems this to be low risk due to the nature of these customers. The carrying amount of the financial assets represents the 
maximum credit exposure. Therefore, the maximum exposure to credit risk for the trade receivables at the period end date was £44.9 million 
(2015: £42.8 million) and the ageing of trade receivables at the period end date was: 
2016
£000
2015
£000
Not past due 42,709 39,445
Past due 0‑30 days 1,779 2,263
Past due 31‑120 days 391 1,097
Past due more than 120 days 21 40
44,900 42,845
The above numbers are net of impairment provisions. Group policy is to provide in full against all receivable balances whose full recovery is significantly 
in doubt. The provision is netted off the gross receivable.
The Group’s strategy is to focus on supplying UK multiple grocers and foodservice distributors, the nature of these customers is such that there is 
a relatively low risk of them failing to meet their contractual obligations. There is no impairment necessary to the value of trade receivables at the 
period end date over and above the specific credit note provision and bad debt provision held at the year end. The balance of £0.4 million past due 
by more than 30 days is equivalent to less than 1 day sales (2015: £1.1 million, equivalent to 2 days).
Deferred consideration amounting to £3 million was received from Genius Foods Ltd on 27 February 2015. 
d) Market Risk 
i) Interest Rate Risk
The Group’s interest rate risk exposure is primarily to changes in variable interest rates. The Group has entered into three interest rate swap 
arrangements in order to hedge its risks associated with any fluctuations. Details of swaps are given in Note 14.
The profile of the Group’s loans including deferred consideration and overdraft at the period end date were split as follows:
2016
£000
2015
£000
Variable rate liabilities 22,745 21,274
Swaps amounting to £9,000,000 (2015: £14,000,000) limit the risk associated with the variable rate liabilities, the weighted average interest rate 
at 2 July 2016 is 1.8% (2015: 2.5%).
Sensitivity
A 1% increase in the base rate or LIBOR would have the following impact on interest charges and associated net assets for the Group, this 
sensitivity relates to interest-bearing bank borrowings and interest rate swaps only and excludes possible changes in pension financing costs. 
2016
£000
2015
£000
Profit decrease 345 318
Decrease in net assets 345 318
A 1% decrease in the base rate or LIBOR would have an equal and opposite impact to those listed above. 
The above movement is not equal to 1% of interest‑ bearing loans because of interest rate swap cover that is in place. 
ii) Commodity Prices
Any rises in commodity prices can adversely impact the core profitability of the business. The Group will aim to pass on its increased costs to its  
customers as far as is reasonable in the circumstances whilst maintaining its tight control over overhead costs to mitigate the impact on consumers.  
The Group maintains a high expertise in its buying team and will consider long‑ term contracts where appropriate to reduce uncertainty in commodity  
prices. Further information on input prices and risks is contained in the Strategic Report.
iii) Foreign Exchange Risk
The Group currently supplies UK manufactured products to Lightbody Stretz Ltd, its 50% owned selling and distribution business trading primarily  
in Europe. The Group also purchases some raw materials in foreign currency. The consequence of this is that the Group is exposed to movement  
in foreign currency rates. Forward foreign exchanges contracts are used to manage the net foreign exchange exposure. 65 Finsbury Food Group  
Annual Report & Accounts 2016
25. Financial Risk Management (continued) 
e) Debt and Capital Management
The Group’s objective is to maximise the return on net invested capital while maintaining its ongoing ability to operate and guaranteeing 
adequate returns for shareholders and benefits for other stakeholders, within a sustainable financial structure. An interim dividend for the six  
months to 26 December 2015 of 0.93p per share was paid on 22 April 2016 to shareholders on the register at the close of business on 1 April 2016. 
Subject to shareholder approval at the Company’s AGM on 23 November 2016, the final dividend of 1.87 pence per share will be paid on 16 December 
2016 to all shareholders on the register at 18 November 2016. It is the Company’s intention to pay dividends at an affordable rate so that the 
Company can continue to invest in the business in order to grow profits.
The Group manages its capital by monitoring its gearing ratio on a regular basis, there are also covenant tests which are monitored regularly  
and presented to the Group’s banks every 6 months. There have been no breaches of covenant tests during the year and the gearing ratio stands 
at 0.2 (2015: 0.2). The gearing ratio is calculated taking total net debt including deferred consideration over net assets.
The Group considers its capital to include share capital, share premium and capital redemption reserve.
The Group does not have any externally imposed capital requirements.
26. Capital and Reserves
The reconciliation of movement in capital and reserves is shown as a primary statement: Consolidated Statement of Changes in Equity on page 70. 
Equity comprises the following:
•  Share capital representing the nominal value of equity shares
•  Share premium representing the excess of the fair value of consideration received for the equity shares; (net of expenses of the share issue)  
over nominal value of the equity shares
• Capital redemption reserve representing the buyback and cancellation of shares at nominal value
• Employee share reserve representing ordinary shares held in an employee benefit trust (EBT) to satisfy awards made to employees
• Retained earnings representing retained profits
27. Share Capital
2016
000’s
2015
000’s
In issue at beginning of the financial year 128,037 66,894
Shares issued 2,346 61,143
In issue at end of the financial year – fully paid 130,383 128,037
£000 £000
Allotted, called up and fully paid
Ordinary shares of 1p each 1,304 1,280
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of 
the Company. During the year 28,300 shares were issued at 14 pence per share and 2,317,824 shares were issued at 1 pence per share. Shares are 
held in an Employee Benefit Trust, 3,593,641 shares were held at the year end, they are intended to be used to satisfy awards made to employees.
Share Based Payments 
The Group operates both approved and unapproved share option schemes. 
The fair value is calculated at the grant date and ultimately expensed in the Consolidated Statement of Profit and Loss over the vesting period, 
based on the best available estimate of the number of share options expected to vest, with a corresponding credit to reserves.
Upon exercise of the share options the proceeds received net of attributable transaction costs are credited to share capital and where appropriate 
share premium.
There have been a number of options granted during the course of the financial year to 2 July 2016 with further details given below. 
Date of grant
Number of  
options 
granted
Number of  
options 
expected  
to vest
Exercise  
price
Fair value
£000
Amount expensed  
in year to  
2 July 2016
£000
Period of  
expense
4 December 2015 1,200,146 972,118 Nil 947 195 3 years
4 December 2015 423,980 343,424 Nil 383 79 3 years
Charge relating to options granted in the current year 274
Charge relating to options granted in prior years 465
Charge included in Administrative expenses 739 66 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
27. Share Capital (continued) 
There were a number of options granted during the course of the financial year to 27 June 2015 with further details given below.
Date of grant
Number of 
options 
granted
Number of 
options 
expected 
to vest
Exercise 
price
Fair value
£000
Amount expensed 
in year to 
27 June 2015
£000
Period of 
expense
3 July 2014 155,172 155,172 54.8p 13 4 3 years
26 June 2015 1,859,115 680,436 Nil 135 ‑ 4 years
Charge relating to options granted in the current year 4
Credit relating to options granted in prior years  (14) 
Credit included in Administrative expenses    (10) 
Details of share options outstanding at 2 July 2016 and movements during the year by exercise price is shown below:
Exercise
price
First
exercise
date
Last
exercise
date At 27 June 2015 Granted Forfeited Cancelled Exercised At 2 July 2016
58.0p May 2017 May 2024 302,758 ‑ ‑ ‑ ‑ 302,758
54.8p Jul 2017 Jul 2024 155,172 ‑ ‑ ‑ ‑ 155,172
20.5p Jul 2014 Oct 2016 2,753,659 ‑ ‑ (2,753,659) ‑ -
20.5p Jul 2014 Oct 2016 2,500,000 ‑ ‑ (2,500,000) ‑ -
20.0p Feb 2015 Aug 2015 39,240 ‑ (39,240) ‑ ‑ -
14.0p Mar 2012 Mar 2019 28,300 ‑ ‑ ‑ (28,300) -
Nil Sep 2018 Dec 2025 ‑ 423,980 ‑ ‑ ‑ 423,980
Nil Jul 2019 Jun 2025 1,859,115 ‑ ‑ ‑ ‑ 1,859,115
Nil Jul 2020 Dec 2025 ‑ 1,200,146 ‑ ‑ ‑ 1,200,146
   7,638,244 1,624,126 (39,240) (5,253,659) (28,300) 3,941,171
 
A summary of share options outstanding and movements for the year to 27 June 2015 is shown below:
 At 28 June 2014 Granted Forfeited Cancelled Exercised At 27 June 2015
Number of options 7,054,926 2,014,287 (61,460) (20,340) (1,349,169) 7,638,244
There were no options exercisable at the period end date (2015: 5,321,199). There were 28,300 options exercised during the year (2015: 1,349,169). 
The share price at date of exercise was 111.0 pence per share.
The options outstanding at the year end have weighted average exercise price of 6.6p (2015: 27.1p) and a weighted average contractual life  
of 5.9 years (2015: 5.5 years).
The Company uses a Monte Carlo model for the valuation of the award subject to relative performance to the TSR of AIM listed companies.  
An external consultant assists with the valuation of the awards.
The key inputs into the Monte Carlo model are as follows:
 2016 2015
Expected life of option 3.0 years 3.0 years
Volatility of share price 29% 30%
Dividend yield 1.9% 2.3%
Risk‑free discount rate 0.80% 0.90%
Share price at grant date 110.6p 83.5p
Exercise price Nil Nil
Performance period 3 years 3 years
Post‑vesting holding period 0-2 years 2 years
Employee turnover Zero Zero 67 Finsbury Food Group  
Annual Report & Accounts 2016
27. Share Capital (continued) 
The inputs into the Black-Scholes-Merton based option pricing model to calculate the charge for share options granted in the financial year were 
as follows:
2016 2015
Expected life of option 3.0 years 3.0‑4.0 years
Volatility of share price 30% 33.1%‑28.9%
Dividend yield 2.3% 1.3%‑3.0%
Risk‑free interest rate 0.90% 1.18%‑1.29%
Share price at date of grant 110.6p 54.8p‑83.5p
Exercise price Nil 54.8p‑59.0p
Bid price discount 10% 10%
Estimated conversion rate 100% 100%
Fair value per option 73.4p-89.7p 8.4p‑19.9p
Volatility is calculated on a consistent basis for each grant of options and is based on the historic annualised standard deviation of continuously 
compounded rates of return. 
28. Dividends
An interim dividend for the six months to 26 December 2015 of 0.93p per share was paid on 22 April 2016 to shareholders on the register at the close  
of business on 1 April 2016. The amount paid was £1,179,144. A final dividend of 1.87p per share has been proposed taking the total dividend  
for the year to 2.80p per share. Subject to shareholder approval at the Company’s AGM on 23 November 2016, the final dividend will be paid  
on 16 December 2016 to shareholders on the register at 18 November 2016.
During the year a dividend of £336,000 (2015: £362,000) was paid to the holders of the non‑ controlling interest in Lightbody Stretz Ltd.
29. Operating Leases
The Group has annual commitments under non-cancellable operating leases relating primarily to land and buildings, fork lift trucks and office  
equipment. Land and buildings have been considered separately for lease classification. Land and buildings amounts relate to leasehold properties  
at the Nicholas & Harris site, part of the Lightbody of Hamilton site, Fletchers’ sites in London and Manchester and Johnstone’s site in East Kilbride.
During the year £2,687,000 was recognised as an expense in the Consolidated Statement of Profit and Loss in respect of operating leases  
(2015: £2,131,000).
Future minimum lease repayments under non-cancellable operating leases at the end of the financial periods are as follows: 
Land and Buildings Other
2016
£000
2015
£000
2016 
£000
2015  
£000
On leases which expire in:
Less than one year 60 51 724 234
Between one and five years 677 770 895 1,168
More than five years 11,905 11,427 29 47
12,642 12,248 1,648 1,449
30. Capital Commitments
At the financial year ended 2 July 2016, the Group had capital expenditure commitments of £1,232,000 (2015: £1,266,000). 68 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Consolidated Financial Statements
31. Related Parties
Related Party T ransactions and Directors’ Material Interests in T ransactions
Mr E Beale is the Chief Executive of City Group Plc. During the year City Group provided Company Secretarial and ancillary services to the Group 
up until 31 December 2015. Fees for these services amounted to £19,380 including VAT (2015: £38,544). In addition Directors’ fees of £45,000  
for Mr E Beale (2015: £45,000) have been paid to City Group. Directors’ fees for Mr E Beale are ceded to his primary employer. 
A 50% owned subsidiary, Lightbody Stretz Ltd, paid Mr P Stretz, the Managing Director of Lightbody Stretz Ltd, £58,000 (2015: £58,000) in respect 
of rent for offices. No balances were outstanding at either year end. 
The Group paid £81,000 (2015: £97,000) for the supply of finished products from and received £83,000 (2015: £100,000) for the sale of finished 
products to Party Fizz, a company 50% owned by Mr P Stretz. The amount payable and receivable at the year end was £24,000 (2015: £23,000) 
and £18,000 (2015: £9,000) respectively.
The Group sold finished product to Dr Zak’s for a value of £269,000 during the year (2015: £27,000), the amount receivable at the year end was 
£78,000 (2015: £27,000). 
Transactions with the Memory Lane Pension Scheme are detailed in Note 16.
T ransactions with Key Management Personnel 
Directors of the Company and their immediate relatives control 3% (2015: 3%) of the voting shares of the Company. 
The aggregate compensation of key management personnel (Main Board Executive Directors, Divisional MDs, and Executive Committee) is as follows:
2016
£000
2015
£000
Company contributions to money purchase pension schemes 61 42
Executive salaries and benefits 1,498 1,291
Executive bonuses 1,049 1,118
2,608 2,451
Share options held by Group Directors are set out in Note 7. Details of share options outstanding at 2 July 2016 for other key management 
personnel by exercise price is shown in the table below.
Exercise  
price
Number of
options at
2 July 2016
Number of 
options at 
27 June 2015
Earliest  
exercise  
date
Exercise  
expiry  
date
Nil 250,505 ‑ 30/09/2018 04/12/2025
54.75p 51,724 51,724 03/07/2017 03/07/2024
58.00p 155,172 155,172 16/05/2017 16/05/2024
457,401 206,896
32. Post Consolidated Statement of Financial Position Events
Since the period end date there have been no significant events.
33. Ultimate Parent Company
Finsbury Food Group Plc is the ultimate parent company. 69 Finsbury Food Group  
Annual Report & Accounts 2016
Company Balance Sheet  
at 2 July 2016 and 27 June 2015
 Note
2016
£000
2015
£000
Non-current assets
Investments 41 100,676 100,629
Deferred taxation 42 227 841
  100,903 101,470
Current assets
Debtors 43 27,790 22,815
Other financial assets – fair value foreign exchange contracts 44 495 ‑ Cash and cash equivalents 3,621 2,498
  31,906 25,313
Creditors: amounts falling due within one year 45 (10,098) (14,851)
Net current assets 21,808 10,462
    
T otal assets less current liabilities 122,711 111,932
Creditors: amounts falling due after more than one year 42&46 (8,772) (11,556)
Net assets 113,939 100,376
Capital and reserves
Called up share capital 48 1,304 1,280
Share premium account 48 64,956 64,952
Capital redemption reserve 48 578 578
Employee share reserve (3,920) ‑ Profit and loss account 49 51,021 33,566
Shareholders’ funds  113,939 100,376
These Financial Statements were approved by the Board of Directors on 16 September 2016 and were signed on its behalf by:
Stephen Boyd  
Director
Registration number: 00204368
The Notes on pages 71 to 78 form an integral part of these Financial Statements. 70 Finsbury Food Group  
Annual Report & Accounts 2016
Company Statement of Changes in Equity  
for the 53 weeks ended 2 July 2016 and 52 weeks ended 27 June 2015
 Note
Share
capital
£000
Share
premium
£000
Capital 
redemption 
reserve
£000
Employee 
share reserve
£000
Retained
earnings
£000
T otal
equity
£000
Balance at 29 June 2014 669 31,480 578 ‑ 31,608 64,335
Loss for the financial year ‑ ‑ ‑ ‑ (748) (748)
T otal comprehensive loss for the period - - - - (748) (748)
T ransactions with owners, recorded directly in equity:
Shares issued during the year 27 611 33,472 ‑ ‑ ‑ 34,083
Impact of share based payments 27 ‑ ‑ ‑ ‑ (10) (10)
Impact of share based payments credit to subsidiaries ‑ ‑ ‑ ‑ (29) (29)
Deferred tax on share options ‑ ‑ ‑ ‑ 242 242
Dividend received ‑ ‑ ‑ ‑ 4,062 4,062
Dividend paid 28 ‑ ‑ ‑ ‑ (1,559) (1,559)
Balance at 27 June 2015 1,280 64,952 578 - 33,566 100,376
Balance at 28 June 2015 1,280 64,952 578 ‑ 33,566 100,376
Loss for the financial year ‑ ‑ ‑ ‑ (658) (658)
T otal comprehensive loss for the period - - - - (658) (658)
T ransactions with owners, recorded directly in equity:
Own shares acquired ‑ ‑ ‑ (3,920) ‑ (3,920)
Shares issued during the year 27 24 4 ‑ ‑ (23) 5
Impact of share based payments credit to subsidiaries ‑ ‑ ‑ ‑ (11) (11)
Impact of share based payments 27 ‑ ‑ ‑ ‑ 306 306
Deferred tax on share options ‑ ‑ ‑ ‑ (575) (575)
Dividend received ‑ ‑ ‑ ‑ 21,721 21,721
Dividend paid 28 ‑ ‑ ‑ ‑ (3,305) (3,305)
Balance at 2 July 2016 1,304 64,956 578 (3,920) 51,021 113,939
The Notes on pages 71 to 78 form an integral part of these Financial Statements. 71 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Company’s Financial Statements 
(forming part of the Financial Statements)
34. Accounting Policies
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the  
Financial Statements.
Basis of Preparation
The financial year was the 53 weeks ended 2 July 2016 (prior financial year 52 weeks ended 27 June 2015). 
These Financial Statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (“FRS 101”).  
In preparing these Financial Statements, the Company applies the recognition, measurement and disclosure requirements of International 
Financial Reporting Standards as adopted by the EU (“Adopted IFRSs”), but makes amendments where necessary in order to comply with 
Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken.
The Company proposes to continue to adopt the reduced disclosure framework of FRS 101 in its next Financial Statements.
In the transition to FRS 101, the Company has applied IFRS 1 whilst ensuring that its assets and liabilities are measured in compliance with  
FRS 101. An explanation of how the transition to FRS 101 has affected the reported financial position is provided in Note 53.
Under section 408 of the Companies Act 2006 the Company is exempt from the requirement to present its own Profit and Loss Account.  
The profit or loss for the year is set out in the Statement of Changes in Equity.
As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under the standard in relation to the  
following disclosures; 
• Presentation of a Cash Flow Statement and related notes
• Capital management
• Comparative period reconciliations for share capital and tangible fixed assets
• Impairment of assets
• Transactions with wholly owned subsidiaries 
• The effects of new but not yet effective IFRSs
As the consolidated Financial Statements of Finsbury Food Group Plc include the equivalent disclosures, the Company has also taken the 
exemptions under FRS 101 available in respect of the following disclosures:
• IFRS 2 Share Based Payments in respect of group settled share based payments
• Certain disclosures required by IFRS 13 Fair Value Measurement and the disclosures required by IFRS 7 Financial Instrument Disclosures
Where required equivalent disclosures are given in the Group accounts of Finsbury Food Group Plc, which are available within this Report.
The Financial Statements are prepared on the historical cost basis except where stated at their fair value. The principal accounting policies  
of the Company are as follows:
Investments
Investments are stated at cost less provision for any permanent impairment. Any impairment is charged to the profit and loss as it arises. 
Foreign Currency
Transactions in foreign currencies are translated to Sterling at the foreign exchange rate ruling at the date of the transaction. Monetary assets 
and liabilities denominated in foreign currencies at the period end date are retranslated to Sterling at the foreign exchange rate ruling at that date. 
Any exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which 
they were initially recorded are recognised in the Consolidated Statement of Profit and Loss in the period in which they arise.
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated to Sterling, 
at foreign exchange rates ruling at the period end date. The revenues and expenses of foreign operations are translated at an average rate for the 
year where this rate approximates to the foreign exchange rates ruling at the dates of the transactions. This revaluation is recognised through 
Other Comprehensive Income.
Derivative Financial Instruments 
The Company has derivative financial instruments in respect of interest rate swaps and foreign exchange hedges. The Company does not hold 
derivative financial instruments for trading purposes. The existing interest rate swaps and foreign exchange hedges used by the Company while 
they function as hedges, do not meet the criteria for hedge accounting set out by IAS 39, and have thus been treated as financial assets and 
liabilities which are carried at their fair value in the Company Balance Sheet. Fair value is deemed to be market value, which is provided by the 
counterparty at the year end date. 
Changes in the market value of interest rate swaps have been recognised through the Consolidated Statement of Profit and Loss as finance income 
or cost. Changes in the market value of foreign exchange hedges have been recognised through the Consolidated Statement of Profit and Loss 
within administrative costs.
Non-derivative Financial Instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, 
loans and borrowings, and trade and other payables. 72 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Company’s Financial Statements
34. Accounting Policies (continued) 
Unless otherwise indicated, the carrying amounts of the Group’s financial assets and liabilities are a reasonable approximation of their fair values.
T rade and Other Payables
The value of trade and other payables is the value that would be payable to settle the liability at the period end date.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash balances. Bank overdrafts that are repayable on demand and which form an integral part of the Group’s 
cash management are included as a component of cash and cash equivalents.
Interest-bearing Borrowings
Interest-bearing borrowings are stated at amortised cost using the effective interest method.
Share Based Payment T ransactions
The value, as at the grant date, of options granted to employees is recognised as an employee expense, with a corresponding increase in equity, 
over the period in which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using  
an option valuation model, taking into account the terms and conditions upon which the options were granted.
Taxation
The credit for taxation is based on the loss for the year and takes into account taxation deferred because of temporary differences between the 
treatment of certain items for taxation and accounting purposes.
Deferred tax is recognised, without discounting, in respect of all temporary differences between the treatment of certain items for taxation and 
accounting purposes which have arisen but not reversed by the balance sheet date.
Going Concern
After making enquiries and on the basis of current financial projections and available funds and facilities, the Directors are satisfied that the 
Company has adequate resources to continue in operation for the next 12 months and, therefore, consider it appropriate to prepare the Financial 
Statements on the going concern basis.
Shares held by Employee Share T rusts
Shares held to satisfy options are accounted for in accordance with IAS 32 ‘Financial Instruments’. All differences between the purchase price  
of the shares held to satisfy options granted and the proceeds received for the shares, whether on exercise or lapse, are charged to reserves.
35. Remuneration of Directors
Details of Directors’ remuneration are set out in Note 7 of the Group’s Financial Statements.
36. Staff Numbers and Costs
The average number of persons employed by the Company (including Directors) during the year, analysed by category, was as follows:
Number of Employees
2016 2015
Directors and administrative staff 37 35
The aggregate payroll costs of these persons were as follows:
2016
£000
2015
£000
Wages and salaries 3,330 2,790
Social security costs 463 399
Other pension costs 142 105
3,935 3,294
37. Share Based Payments
Details of Directors share options are set out in Note 7 of the Group’s Financial Statements. As set out in Note 27 to the Group Financial Statements, 
194,404 (2015: 51,724) of the total 423,980 (2015: 155,172) share options granted during the year were issued to employees of the Company resulting  
in a charge to the Company profit and loss account of £248,000 (2015: £1,000). The remaining options were granted to employees of the subsidiary 
companies with corresponding charges to the relevant profit and loss accounts. Credits relating to options exercised, cancelled or lapsed after 
vesting have also been passed to the subsidiaries during the year. The charge totalled £47,000 (2015: credit £42,000) and has resulted in an increase 
(2015: reduction) in the total cost of investments in the Company balance sheet.  73 Finsbury Food Group  
Annual Report & Accounts 2016
38. Finance Income and Cost
Recognised in the Company Statement of Profit and Loss
 
2016
£000
2015
£000
Finance income
Change in fair value of interest rate swaps 219 28
Bank interest receivable 2 1
T otal finance income 221 29
Finance cost
Bank interest payable (408) (340)
Interest on interest rate swap agreements (273) (276)
T otal finance cost (681) (616)
Net finance cost (460) (587)
39. Dividends 
On 9 December 2015 a final dividend of 1.67p per share was paid to shareholders on the register at the close of business on 13 November 2015, 
the amount paid was £2,125,476. An interim dividend for the six months to 26 December 2015 of 0.93p per share was paid on 22 April 2016  
to shareholders on the register at the close of business on 1 April 2016. The amount paid was £1,179,144.
A final dividend of 1.87p per share has been proposed taking the total dividend to 2.80p per share. Subject to shareholder approval at the Company’s 
AGM on 23 November 2016, the final dividend will be paid on 16 December 2016 to all shareholders on the register at 18 November 2016.
40. Investment in Subsidiaries and Equity Accounted Investees
Set out below are all undertakings of the Company whose results are included in the Consolidated Financial Statements for the period ended  
2 July 2016.
Subsidiary Direct/Indirect ownership Country of incorporation
Class of  
shares held
Ownership 
2016
Ownership 
2015
Anthony Alan Foods Ltd Direct England and Wales Ordinary £1 100% 100%
California Cake Company Ltd Indirect Scotland Ordinary £1 100% 100%
California Cake Company (Holdings) Ltd Direct Scotland Ordinary £1 100% 100%
Campbells Cake Company Ltd Indirect Scotland Ordinary £1 100% 100%
Campbells Cake (Holdings) Ltd Direct Scotland Ordinary £1 100% 100%
Dr Zak’s Ltd Indirect England and Wales Ordinary £1 25% 25%
Fennel Acquisition Ltd Direct England and Wales Ordinary £1 100% 100%
Fletchers Bakeries Ltd Indirect England and Wales Ordinary £1 100% 100%
Fletchers Bakeries Investment Ltd Indirect England and Wales Ordinary £1 100% 100%
Goswell Enterprises Ltd Indirect England and Wales Ordinary £1 100% 100%
Goswell Marketing Ltd Indirect England and Wales Ordinary £1 100% 100%
Johnstone’s Foodservice Ltd Indirect Scotland Ordinary £1 100% 100%
Lightbody Celebration Cakes Ltd Indirect Scotland Ordinary £1 100% 100%
Lightbody Group Ltd Direct Scotland Ordinary £1 100% 100%
Lightbody Holdings Ltd Indirect Scotland Ordinary £1 100% 100%
Lightbody of Hamilton Ltd Indirect Scotland Ordinary £1 100% 100%
Lightbody‑Stretz Ltd Indirect Scotland Ordinary £1 50% 50%
Lightbody Europe SAS Indirect France Ordinary £1 50% 50%
Memory Lane Cakes Ltd Direct England and Wales Ordinary 1p 100% 100%
Murray T raders Ltd Indirect Scotland Preference £1 10.5% 10.5%
Nicholas & Harris Ltd Indirect England and Wales Ordinary £1 100% 100%
Storesurvey Ltd Direct England and Wales Ordinary £1 100% 100% 74 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Company’s Financial Statements
41. Fixed Asset Investments
£000
Cost 
At beginning of financial year 100,629
Additions 47
At end of financial year 100,676
Net book value
At 2 July 2016 100,676
At 27 June 2015 100,629
The additions relate to share option charge of £47,000 (2015: credit £42,000) passed down to individual subsidiaries.
42. Deferred Tax
Recognised deferred tax assets and liabilities:
Assets Liabilities
 
2016  
£000
2015  
£000
2016  
£000
2015  
£000
Employee share scheme charges 202 758 - ‑ Interest rate swaps 25 72 - ‑ Foreign exchange contracts - 11 (89) ‑ T ax assets/(liabilities) 227 841 (89) ‑ Net tax assets 138 841 - ‑ The deferred tax asset at 2 July 2016 has been calculated based on the rate of 18% substantively enacted at the balance sheet date. The impact 
through the profit and loss of reduction from 20% to 18% on the recognised net deferred tax asset is a £45,000 charge. 
A further reduction in the UK corporation tax rate to 17% from 1 April 2020 was announced in the Budget on 16 March 2016. This rate will not 
affect the measurement of deferred tax until it has been substantively enacted.
Movement in Deferred T ax during the Year
 
28 June 
2015
£000
Recognised
in income
£000
Recognised
in equity
£000
2 July 
2016
£000
Employee share scheme 758 19 (575) 202
Interest rate swaps 72 (47) ‑ 25
Foreign exchange contracts 11 (100) ‑ (89)
 841 (128) (575) 138
Movement in Deferred T ax during the Prior Year 
 
28 June 
2014
£000
Recognised
in income
£000
Recognised
in equity
£000
27 June 
2015
£000
Employee share scheme 513 2 243 758
Interest rate swaps 77 (5) ‑ 72
Foreign exchange contracts 41 (30) ‑ 11
 631 (33) 243 841
43. Debtors
2016  
£000
2015  
£000
Amounts owed by Group undertakings 27,700 22,065
Other taxation 15 15
Prepayments and accrued income 75 735
27,790 22,815 75 Finsbury Food Group  
Annual Report & Accounts 2016
44. Forward Foreign Exchange Contracts at Fair Value
The Group has entered into a number of forward foreign exchange contracts to minimise the impact of fluctuations in exchange rates. A credit of 
£554,000 (2015: credit £153,000) is included in administrative expenses for the periods reflecting changes in their fair value.
45. Creditors: Amounts Falling Due Within One Year
2016
£000
2015
£000
Bank loan 2,872 5,607
T rade creditors 143 105
Amounts due to Group undertakings 33 42
Other financial liabilities – fair value interest rate swaps 140 359
Other financial liabilities – fair value foreign exchange contracts - 59
Other taxes and social security 114 96
Accruals and deferred income 6,796 8,583
10,098 14,851
Other Financial Liabilities – Fair Value Interest Rate Swaps
The Group has two interest rate swap arrangements to hedge its risks associated with interest rate fluctuations:
£3.0m for four years from 22 May 2013 (fixed) at 1.7%
£6.0m for three years from 2 June 2015 (fixed) at 1.9%
The total coverage at the year end of £9.0 million (2015: £14.0 million) is equivalent to 78% (2015: 82%) of total net bank debt at a weighted 
average rate of 1.8% (2015: 2.5%).
A £5.0 million swap fixed at 3.6% expired on 1 July 2016. On 7 September 2016 the Group entered into a forward dated swap for £20.0 million for 
five years from 3 July 2017 (fixed) at 0.455%.
A credit of £219,000 (2015: credit £28,000) is shown in finance income for the periods reflecting changes in the fair values of interest rate swaps. 
The fair values are liabilities as a result of the current low levels of base and LIBOR interest rates.
46. Creditors: Amounts Falling Due After More Than One Year
2016  
£000
2015  
£000
T otal bank loans and mortgages 8,683 11,556
Deferred tax liability 89 ‑ 8,772 11,556
HSBC Bank Plc, HSBC Asset Finance (UK) Ltd, HSBC Equipment Finance (UK) Ltd and HSBC Corporate Trustee Company (UK) Limited have 
debentures incorporating fixed and floating charges over the undertaking and all property and assets including goodwill, book debts, uncalled 
capital, buildings, fixtures, fixed plant and machinery. 76 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Company’s Financial Statements
47. Interest‑ bearing Loans and Borrowings
This Note provides information about the contractual terms and repayment schedule of the Company’s interest‑ bearing loans and borrowings, 
which are measured at amortised cost. For more information about the Group’s exposure to interest rate risk, see Note 25.  
2016 Currency Margin Above
Frequency of
repayments
Year of 
maturity
T otal
£000
Current 
£000
Non-current
£000
T erm loan GBP 2.00% LIBOR Quarterly 2019 8,905 2,568 6,337
Revolving credit GBP 2.00% LIBOR Quarterly 2019 ‑ ‑ ‑ Mortgage GBP 1.75% LIBOR Monthly 2022 2,826 369 2,457
Unamortised transaction costs     (176) (65) (111)
      11,555 2,872 8,683
Repayments are as follows:
Between one and two years 2,883
Between two and five years 5,185
Between five and ten years 615
Between ten and fifteen years       ‑        8,683
2015 Currency Margin Above
Frequency of
repayments
Year of 
maturity
T otal
£000
Current 
£000
Non-current
£000
T erm loan GBP 2.00% LIBOR Quarterly 2019 12,116 3,211 8,905
Revolving credit GBP 2.00% LIBOR Quarterly 2019 2,000 2,000 ‑ Mortgage GBP 1.75% LIBOR Monthly 2022 3,287 461 2,826
Unamortised transaction costs      (240) (65) (175)
      17,163 5,607 11,556
Repayments are as follows:
Between one and two years 2,873
Between two and five years 7,332
Between five and ten years 1,351
Between ten and fifteen years       ‑        11,556
48. Called Up Share Capital
Note 27 in the Group Financial Statements gives details of called up share capital.
49. Capital and Reserves
The reconciliation of the movement in capital and reserves is shown as a primary statement in the Company’s Financial Statements: Company 
Statement of Changes in Equity on page 70 with definition details in Note 26 to the consolidated Financial Statements. 
50. Contingent Liabilities
The Company has guaranteed the overdrafts of its subsidiaries; there was a net cash position at the year end of £3,024,000 (2015: £61,000).
51. Related Party Disclosures
Note 31 in the Group’s Financial Statements gives details of related party transactions.
52. Financial Risk Management
The Company’s policies on the management of liquidity, credit and interest rate risks are managed at a Group level and are set out in Note 25  
in the Group’s Financial Statements and also referred to in the Strategic Report.
53. Explanation of Transition to FRS 101
This is the first year that the Company has presented its Financial Statements under FRS 101. The last Financial Statements were prepared under 
UK Generally Accepted Accounting Practice (UK GAAP) for the year ended 27 June 2015. The date of transition is 28 June 2014. On transition 
to FRS101, the Company has applied the requirements of paragraphs 6-33 of IFRS 1 ‘First time adoption of International Financial Reporting 
Standards’.  
In preparing its FRS 101 balance sheet, the Company has adjusted amounts reported previously in Financial Statements prepared in accordance 
with its old basis of accounting (UK GAAP). An explanation of how the transition from UK GAAP to FRS 101 has affected the Company’s financial 
position, is set out in the following table and notes that accompany the table. 77 Finsbury Food Group  
Annual Report & Accounts 2016
53. Explanation of Transition to FRS 101 (continued)
Reconciliation of Balance Sheet Movements
29 June 2014 27 June 2015
 Note
UK GAAP
£000
Effect of 
transition  
to FRS 101
£000
FRS 101
£000
UK GAAP
£000
Effect of 
transition
to FRS 101
£000
FRS 101
£000
Fixed assets
Investments 61,587 ‑ 61,587 100,629 ‑ 100,629
Deferred tax (i) 362 271 633 365 476 841
  61,949 271 62,220 100,994 476 101,470
Current assets
Deferred consideration 3,000 ‑ 3,000 ‑ ‑ ‑ Debtors 3,039 ‑ 3,039 22,815 ‑ 22,815
Cash and cash equivalents 3,582 ‑ 3,582 2,498 ‑ 2,498
  9,621 ‑ 9,621 25,313 ‑ 25,313
Creditors: amounts falling due within one year (ii) (3,766) (600) (4,366) (14,433) (418) (14,851)
Net current assets 5,855 (600) 5,255 10,880 (418) 10,462
        
T otal assets less current liabilities 67,804 (329) 67,475 111,874 58 111,932
Creditors: amounts falling due after more than one year (3,140) ‑ (3,140) (11,556) ‑ (11,556)
Net assets 64,664 (329) 64,335 100,318 58 100,376
Capital and reserves
Called up share capital 669 ‑ 669 1,280 ‑ 1,280
Share premium account 31,480 ‑ 31,480 64,952 ‑ 64,952
Capital redemption reserve 578 ‑ 578 578 ‑ 578
Retained earnings (iii) 31,937 (329) 31,608 33,508 58 33,566
Shareholders’ funds  64,664 (329) 64,335 100,318 58 100,376
Notes to transition table:
(i)  The adjustment to debtors on transition to FRS 101 is the recognition of deferred tax assets relating to the recognition of the fair value  
of the Company’s interest rate swaps, forward foreign currency contracts and share options.
(ii)   The adjustment to creditors is the recognition of the fair value of the interest rate swaps and forward foreign currency contracts.  
To mitigate the impact interest rate movements, the Company has two interest rate swaps in place with a total coverage of £9.0 million  
(2015: £14.0 million) equivalent to 78% (2015: 82%) of year end net bank debt at a weighted average rate of 1.8% (2015: 2.5%).  
The Group has entered into a number of forward foreign exchange contracts to minimise the impact of fluctuations in exchange rates,  
the movements in fair value are taken to administrative expenses within the profit and loss account.
(iii)  Under FRS 101, the retained earnings has been adjusted for the following (charges)/credits:
 29 June 2014 27 June 2015
Interest rate swaps, net of deferred tax (310) (287)
Forward contracts, net of deferred tax (170) (48)
Deferred tax on share options 151 393
T otal adjustment to profit and loss (329) 58 78 Finsbury Food Group  
Annual Report & Accounts 2016
Notes to the Company’s Financial Statements
Presentation of Financial Statements
Basis of Preparation of Consolidated Financial Statements
The Group has adopted the following IFRSs in these Financial Statements:
•  Amendment to IAS19 – Defined Benefit Plans: Employee Contributions
•   Annual Improvements to IFRSs – 2010-2012 Cycle. The definition of a ‘related party’ is extended to include a management entity that provides 
key management personnel services to the reporting entity, either directly or through a group entity
•  Annual Improvements to IFRSs – 2011-2013 Cycle
The application of the above standards and interpretations has not had a material effect on the net assets, results and disclosures of the Group.
The IASB and the IFRIC have also issued the following standards and interpretations with an effective date after the date of these Financial 
Statements. 
New Standards and Interpretations Endorsed but not yet Effective 
•  Clarification of Acceptable Methods of Depreciation and Amortisation – Amendments to IAS 16 and IAS 38 (effective date 1 January 2016)
•  Equity Method in Separate Financial Statements – Amendments to IAS 27 (effective date 1 January 2016)
•  Annual Improvements to IFRSs – 2012-2014 Cycle (effective date 1 January 2016)
Work will begin in the new financial year to assess the impact of the new standards and interpretations on the Group’s Financial Statements.
New Standards and Interpretations not yet Endorsed and not yet Effective
• IFRS 9 Financial Instruments – effective 1 January 2018
• IFRS 15 Revenue from Contracts with Customers – effective 1 January 2018
• IFRS 16 Leases – effective from 1 January 2019 
Work will begin in the new financial year to assess the impact of the new standards and interpretations on the Group’s Financial Statements.
  79 Finsbury Food Group  
Annual Report & Accounts 2016
Directors’ Report
Background
The Group operates in the cake and bread markets which are focused on premium, celebration and well‑ being products. These products are 
supplied both under the retailers’ own brands and through a number of licensed brands to which the Group has access.
A review of the activities and any likely future developments in the business of the Group is given in the Chairman’s Statement, Chief Executive’s 
Report and the Strategic Report on pages 8 to 21.
Dividend
On 15 March 2016, the Board approved an interim dividend for the six months to 26 December 2015 of 0.93p per share which was paid on  
22 April 2016. The Directors have recommended a final dividend of 1.87p per share. Subject to shareholder approval at the Company’s AGM  
on 23 November 2016, the final dividend will be paid on 16 December 2016 to all shareholders on the register at 18 November 2016.
Directors and their Interests in the Company
The Directors and brief biographies are detailed on page 6. Zoe Morgan was appointed to the Board of Directors on 4 July 2016. Edward Beale  
and Paul Monk have announced their intention to step down from the Board at the conclusion of the AGM on 23 November 2016. 
In accordance with the Articles of Association Marnie Millard and Zoe Morgan retire by rotation and being eligible offer themselves for re-election  
at the Company’s forthcoming AGM.
The beneficial interests of the Directors in the Ordinary Shares of the Company on 2 July 2016 and 27 June 2015 are set out below:  
Ordinary Shares
2 July 2016 27 June 2015
P Baker 86,000 46,000
E J Beale 40,000 40,000
S A Boyd 961,034 906,629
J G Duffy 2,197,599 2,111,762
P J Monk 291,547 291,547
Details of Directors’ share options are set out in Note 7 to the Financial Statements. There has been no change to the Directors’ share interests 
since 2 July 2016.
Details of the emoluments of the Directors are given in Note 7 to the Financial Statements.
Zoe Morgan was appointed as a Non-Executive Director on 4 July 2016. Her shareholding on appointment was 20,981 and was unchanged  
at 16 September 2016.
Share Capital
Details of the changes in the share capital of the Company during the year are set out in Note 27 to the Financial Statements.
Substantial Interests
The following substantial interests (3 percent or more) in the Company’s issued share capital have been notified to the Company as at  
1 September 2016:
Number 
of shares
% of issued
 share capital
Ruffer LLP 20,386,480 15.64%
Miton Asset Management Ltd 14,116,746 10.83%
Hargreave Hale 13,965,651 10.71%
London Finance & Investment Group P .L.C 8,000,000 6.14%
Henderson Global Investors 7,812,021 5.99%
Investec Asset Management 5,707,638 4.38%
Schroder Investment Mgt 5,104,702 3.92%
Investec Wealth and Investment 4,698,601 3.60%
Research and Development
Research and development (R&D) expenditure is written off in the year in which it is incurred.
Directors and Officers’ Liability Insurance
The Company maintains a Directors and Officers liability insurance policy. 80 Finsbury Food Group  
Annual Report & Accounts 2016
Directors’ Report
Financial Instruments
The Group’s financial instruments comprise mortgage, asset finance facilities, a confidential invoicing facility, revolving credit facility, cash and liquid  
resources, and various items arising directly from its operations, such as trade creditors. The main purpose of these financial instruments is to finance 
the Group’s acquisitions and operations. It is the Group’s policy that no trading in financial instruments shall be undertaken.
The main risks arising from the Group’s financial instruments are interest rate risk and liquidity risk. The Board reviews and agrees policies  
for managing these risks, which have remained substantially unchanged for the year under review. The policies are summarised below:
Interest Rate Risk 
The Group finances its operations by retained profits and bank borrowings.  A suite of borrowing facilities totalling £50.9 million is available of which  
£19.7 million was drawn at the balance sheet date leaving a headroom of £31.2 million. The interest rate risk is managed through two interest rate  
swap transactions. The total balance of these swaps was £9.0 million at the period end date. The Group entered into a forward dated swap for 
£20.0 million for five years from 3 July 2017 (fixed) at 0.455%. The counterparty to these transactions is HSBC Bank Plc.
Liquidity Risk
Short-term flexibility is available through existing bank facilities and the netting off of surplus funds. Full details of the Group’s financial assets 
and liabilities are given in Note 25.
Employee Involvement
The Group aims to improve the performance of the organisation through the development of its employees. Their involvement is encouraged  
by means of team working, team briefings, consultative committees and working parties. 
Disabled Employees
The Group is committed to equality of employment and its policies reflect a disregard of factors such as disability in the selection and 
development of employees.  
Political and Charitable Contributions
During the year charitable donations amounting to £13,000 (2015: £4,000) were made, primarily to local charities.
Going Concern
On the basis of current financial projections and available funds and facilities, the Directors are satisfied that the Group has adequate resources 
to continue in operation for the foreseeable future and, therefore, consider it appropriate to prepare the Financial Statements on the going 
concern basis. Further details are set out in the basis of preparation.
Auditor
In accordance with Section 489 of the Companies Act 2006, a resolution for the re-appointment of KPMG LLP as auditor is to be proposed  
at the forthcoming AGM.
• So far as each Directors is aware, there is no relevant audit information of which the Company’s auditor is unaware; and
•  Each Director has taken all the steps that they ought to have taken as a Directors in order to make himself or herself aware of any relevant  
audit information and to establish that the Company’s auditor is aware of that information.
The Directors’ Report was approved by the Board of Directors on 16 September 2016 and was signed on its behalf by:
Stephen Boyd 
Director 81 Finsbury Food Group  
Annual Report & Accounts 2016
Statement of Directors’ Responsibilities in Respect  
of the Annual Report and the Financial Statements  
The Directors are responsible for preparing the Annual Report and the Group and parent company Financial Statements in accordance with 
applicable law and regulations.  
Company law requires the Directors to prepare Group and parent company Financial Statements for each financial year. As required by the AIM 
Rules of the London Stock Exchange they are required to prepare the Group Financial Statements in accordance with IFRSs as adopted by the 
EU and applicable law and have elected to prepare the parent company Financial Statements in accordance with UK Accounting Standards and 
applicable law (UK Generally Accepted Accounting Practice), including FRS 101 Reduced Disclosure Framework.
Under company law the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the 
state of affairs of the Group and parent company and of their profit or loss for that period. In preparing each of the Group and parent company 
Financial Statements, the Directors are required to:  
• Select suitable accounting policies and then apply them consistently;  
• Make judgements and estimates that are reasonable and prudent;  
• For the Group Financial Statements, state whether they have been prepared in accordance with IFRSs as adopted by the EU;  
•  For the parent company Financial Statements, state whether applicable UK Accounting Standards have been followed, subject to any material 
departures disclosed and explained in the Financial Statements; and  
•  Prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Group and the parent company  
will continue in business.  
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent company’s transactions 
and disclose with reasonable accuracy at any time the financial position of the parent company and enable them to ensure that its Financial 
Statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to 
safeguard the assets of the Group and to prevent and detect fraud and other irregularities.  
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website.  
Legislation in the UK governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.
By Order of the Board  
Stephen Boyd 
Director 
16 September 2016 82 Finsbury Food Group  
Annual Report & Accounts 2016
Independent Auditor’s Report to the 
Members of Finsbury Food Group Plc 
We have audited the Financial Statements of Finsbury Food Group Plc for the 53 weeks ended 2 July 2016 set out on pages 35 to 78. The financial 
reporting framework that has been applied in the preparation of the Group Financial Statements is applicable law and International Financial 
Reporting Standards (IFRSs) as adopted by the EU. The financial reporting framework that has been applied in the preparation of the parent company 
Financial Statements is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice), including FRS 101 Reduced 
Disclosure Framework.
This Report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work 
has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and 
for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the 
company’s members, as a body, for our audit work, for this Report, or for the opinions we have formed.  
Respective Responsibilities of Directors and Auditor  
As explained more fully in the Directors’ Responsibilities Statement set out on page 81, the Directors are responsible for the preparation of the 
Financial Statements and for being satisfied that they give a true and fair view. Our responsibility is to audit, and express an opinion on, the 
Financial Statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require  
us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.  
Scope of the Audit of the Financial Statements  
A description of the scope of an audit of Financial Statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/
auditscopeukprivate. 
Opinion on Financial Statements  
In our opinion:  
•  The Financial Statements give a true and fair view of the state of the Group’s and of the parent company’s affairs as at 2 July 2016 and  
of the Group’s profit for the year then ended;  
• The Group Financial Statements have been properly prepared in accordance with IFRSs as adopted by the EU;  
• The parent company Financial Statements have been properly prepared in accordance with UK Generally Accepted Accounting Practice;  
• The Financial Statements have been prepared in accordance with the requirements of the Companies Act 2006.  
Opinion on other Matter Prescribed by the Companies Act 2006 
In our opinion the information given in the Strategic Report and the Directors’ Report for the financial year for which the Financial Statements  
are prepared is consistent with the Financial Statements.
Matters on which we are Required to Report by Exception 
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:  
•  Adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from 
branches not visited by us; or  
• The parent company Financial Statements are not in agreement with the accounting records and returns; or  
• Certain disclosures of Directors’ remuneration specified by law are not made; or  
• We have not received all the information and explanations we require for our audit.  
Ian Brokenshire (Senior Statutory Auditor)  
for and on behalf of KPMG LLP, Statutory Auditor  
Chartered Accountants  
3 Assembly Square
Britannia Quay
Cardiff
CF10 4AX
16 September 2016 83 Finsbury Food Group  
Annual Report & Accounts 2016
Advisers
Registered Office
Maes Y Coed Road
Cardiff
CF14 4XR
Tel: 029 20 357 500
Registrars
Capita Registrars
34 Beckenham Road
Beckenham
Kent
BR3 4TU
Company Secretary
Melanie Cox
Finsbury Food Group Plc
Maes Y Coed Road 
Cardiff 
CF14 4XR 
Tel: 029 20 357 500
Auditor
KPMG LLP
Chartered Accountants
3 Assembly Square
Britannia Quay
Cardiff Bay
CF10 4AX
Nominated Advisor & Broker
Cenkos Securities Plc
6.7.8 Tokenhouse Yard 
London
EC2R 7AS
Solicitors
CMS Cameron McKenna LLP 
Cannon Place 
78 Cannon Street 
London 
EC4N 6AF
Registered Number  
00204368 84 Finsbury Food Group  
Annual Report & Accounts 2016
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