FY20/21 was due to be a transitional year for the Cake Decoration division, with a significant restructure taking place in FY20 and the benefits expected to be seen in FY21. However, with three lockdown periods in the financial year, significantly impacting sales and EBITDA versus FY20. The FY21 result for Cake Decoration showed revenue progress in new product launches and a new blue-chip customer, however this was overshadowed by the shortfall in the wholesale and manufacturing sectors, both of which saw their customers having to close during the lockdown period. The second half of the year saw total revenues increase by 3% versus FY20. This is significant because even though the UK sugarpaste market declined by 8.4%2, the UK sugarpaste revenues only declined by 6% and sales of sugarpaste in the second half of the year were up on the previous year by 12%. Renshaw’s performance outperformed the underlying market decline. Retail despite covid-19 saw revenues increase by 7% year on year. The investment in the soft icing plant has resulted in year-on-year improved revenues of 17%, and this is expected to continue to grow in FY22 as frostings and other soft icing products are becoming increasingly popular due to their ease of use for the novice baker and decorator.

The business continues to pursue a growth strategy focused on increased supply of everyday convenience products under its own and customers’ brands. The investment in the soft icings plant saw frostings grow year on year in FY21, and all indications including customer feedback suggest this is expected to continue in FY22. Export growth continues to be focused on North America where the company has identified the greatest potential to grow sales. Following the successful closure of the US based warehouse in FY21, with sales now being shipped directly from the factory in Liverpool to the US, this has streamlined the process and improved customer service.