Finsbury Foods cheap but essential, says Laura Foll
Finsbury Foods (FIF), which makes cakes for supermarkets, is providing essential products cost-effectively, says Janus Henderson’s Laura Foll.
In a recent update, Foll said the UK equity market houses ‘many market-leading, well-managed businesses’ and often, despite not being household names, ‘their products and services are widely used throughout the country’.
‘One such example is Finsbury Foods, which makes supermarket cakes and treats, and specialty breads,’ she said.
‘It is one of the UK’s market leaders in its area and its valuation is low versus both the market and peers.’
Foll, who manages the £176m Janus Henderson UK Equity Income and Growth fund and several investment trusts with James Henderson, called it a ‘well-invested, well-managed business that is providing essential products in a cost-effective manner’. Both managers are Citywire + rated.
‘The structural story also remains solid – we’ll all still be eating cake in 10 years’ time,’ said Foll.
Shares in Finsbury Foods were trading flat at 79p on Wednesday afternoon, down from just under £1 at the start of 2022, having drifted lower throughout the year.