RGD Real Good Food Plc

RNS Number:4642D
Real Good Food Company Plc (The)
24 May 2006



Date:                    24 May 2006

On behalf of:            Real Good Food Company plc ("the Group" or "RGFC")

Embargoed to:            0700hrs





Real Good Food Company plc

AGM Statement



At the Group's Annual General Meeting to be held later today, the Board of The
Real Good Food Company Plc will provide the following Trading Update.



Trading Update



At the time of the announcement of our Preliminary results on 23rd March 2006,
we indicated that results in Napier Brown Foods, our Sugar Division, were
running behind expectations due to the volatile nature of the sugar market.
Volumes have been below both last year and forecast levels for a number of
reasons, not least of which is competitive price pressure.  Since the end of
March we have seen an improvement in volumes, which are now approaching 2005
levels, but a deterioration in margin.  We have taken steps to respond to the
competitive nature of the market but this has come at a cost in margin terms.



In pursuing our strategic objectives, we have maintained share in premium
sectors and, following capital expenditure, would expect to see volume growth
from added value products.  Shortfalls in volume have been restricted to the
bulk industrial sector, where margins have become particularly thin.  The
reasons for the competitive marketplace have been widely reported and stem
predominantly from the decision to delay the implementation of the new Sugar
Regime.



Elsewhere in our business, trading remains in line with our expectations.  Sales
revenues in Five Star Fish are 15% ahead of last year and we remain confident
that the business will achieve another record year in what is still a flat
foodservice market.



The new management team in Renshaw, our Baking Ingredients division, are
confident of meeting the challenges of re-invigorating the business.  A wide
range of new customer wins have been achieved and there are more to come.
Progress is being made in restructuring the Liverpool factory and improving
operational efficiency generally.



In Bakery, comprising Hayden's Bakeries and Seriously Scrumptious, sales are 4%
up on last year with increased sales to Marks & Spencer and a new retail
customer coming on stream.  Further wins are expected in the summer from
existing and new customers in both the retail and foodservice sectors.



Whilst the impact of the competitive market in sugar on the anticipated
profitability of Napier Brown Foods is very disappointing and will lead to a
significant reduction in group profitability against our previous estimates, our
other businesses are on track to achieve results in line with expectations.



Enquiries to:


Pieter Totte / Lee Camfield
Real Good Food Company                               Tel: 020 7234 0570

Emma Kane / Samantha Robbins
Redleaf Communications                               Tel: 020 7955 1410

Guy Peters / Clive Black
Shore Capital                                        Tel:   020 7408 4090



Notes to Editors:



!               The Real Good Company plc is a food group servicing high end
niche markets.  It aims to grow both through acquisitions and organically.  It
acquires underperforming businesses lacking critical mass, product focus and
wide ranging retail relationships, and profitable businesses lacking business
focus or access to markets.  It is listed on AIM (Symbol:  RGD).








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