RGD Real Good Food Plc

RNS Number:3389X
Real Good Food Company Plc (The)
24 January 2006

Date:                     24 January 2006
On behalf of:             Real Good Food Company plc ("the Company" or " RGFC")
Embargoed to:             0700hrs


Real Good Food Company plc

Trading Update for the year to 31st December 2005


*    Integration RGFC/Napier Brown in line with plans
*    PBT approximately #7million for full year 2005
*    Business well positioned for 2006

Real Good Food Company plc, the food manufacturing group in ambient, chilled and
frozen products, is providing the following trading update prior to entering its
close period.

Against a very competitive background in all our sectors, trading performance
has been marginally below market expectations. Five Star Fish and Napier Brown
Foods continue to perform well, the latter against the background of a very
competitive sugar market.  The performances of both the Renshaw ingredients
business and Hayden's Bakeries have enjoyed record results under our ownership,
exceeding their performances in the previous year, though below their targets
for 2005.

Five Star Fish had another outstanding year with increased sales and an
improvement in gross margins thanks to excellent factory efficiencies and the
achievement of some price increases. The division has now achieved the earn-out
targets set at the time of acquisition.  This was achieved against the
background of a flat foodservice market and raw material inflation.

Hayden's and Seriously Scrumptious, now operating together as the Bakery
Division, have achieved much improved performance when compared to 2004.
However, delayed launches of new products to existing customers and delays of
new customers coming on stream has hindered progress.  The Board is confident
that the steps it has taken to strengthen the commercial team and improve labour
costs and controls will result in improved performance during the course of
2006.

Performance at the Renshaw ingredients business was broadly in line with
expectations despite considerable restructuring activity. Renshaw has now
successfully integrated the Sefcol business and the caramel production lines
transferred from the Group's former plant in Runcorn. As previously announced,
the Board took the decision to close the loss-making nut processing arm of
Sefcol, to be effective at the end of January 2006.  Additionally, the
management team in Renshaw has been strengthened by two senior managerial
appointments.

Napier Brown Foods, the sugar and dry ingredients division, achieved record
sales, with volumes to retail customers being particularly strong, following the
integration of the James Budgett Sugars business into the division in spring
2005.  During the course of the year, the division has also made good progress
towards improving margins, despite increased volatility in the sugar market.

The consolidation of the Head office and central functions of RGFC and Napier
Brown Foods plc has now been completed, although costs associated with this
restructuring were marginally higher than anticipated. I would like to welcome
Pat Ridgwell and Chris Thomas to the Board and thank Campbell Mitchell and
Richard Gradowski-Smith, who have now left the Board, for their contributions
over the past two years.

In light of the above factors, we now expect the profit before exceptional items
for the Group for 2005 to be approximately #7 million.

At the year end the Group had a positive cash balance of over #6 million, with
debt some #11 million within the Group's available facilities.

We believe all business units are now well structured to be able to compete
effectively in what is a competitive market and we are optimistic for a
successful 2006.

Enquiries to:

John Gibson/Lee Camfield
Real Good Food Company                                  Tel: 020 7234 0570

Emma Kane / Duncan McCormick
Redleaf Communications Ltd                              Tel: 020 7955 1410
(PR Adviser to the Company)



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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