RNS Number:7588T
Real Good Food Company Plc (The)
27 March 2007

Date:              27 March 2007
On behalf of:      The Real Good Food Company plc ("RGFC" or "the Company")
Embargoed until:   0700 hours


The Real Good Food Company plc

Preliminary Results 2006



The Real Good Food Company plc ('RGFC'), the food manufacturing group, operating
in the ambient, chilled and frozen sectors of the market, today announces its
preliminary results for the 12 months to 31 December 2006.



The highlights are:



  * Total revenues of #250.8m (2005: #117.7m)
  * Profit before tax, exceptionals and goodwill amortisation up 35% to #9.5m
    (2005: #7.1m)
  * Basic earnings per share of 2.6 pence (2005: 7.2p loss)
  * Integration of Napier Brown Foods ('NBF') into devolved accountability
    model completed successfully
  * Year end net debt reduced by 5% to #56.6m



Commenting on the results, Pieter Totte, Non-Executive Chairman of The Real Good
Food Company plc, said:



"Following the reverse takeover of Napier Brown Foods in September 2005, we have
sought to consolidate and strengthen the Company across all divisions to build a
solid platform for future growth in Sugar, Fish, Baking Ingredients and Bakery.
I am delighted to report that overall trading in our three largest divisions has
met our expectations.



"The successful integration of Napier Brown Foods has resulted in an excellent
full year contribution from the business against a volatile sugar market.
Overall, the Company has enjoyed significant organic growth in all divisions.



"Our focus for 2007 will be to concentrate on developing our assets to take
advantage of the significant commercial opportunities that will arise in the
medium term. RGFC is well on its way to becoming a significant player in the UK
food sector and we look forward to updating shareholders again at the AGM in May
2007."





Enquiries to:


The Real Good Food Company plc                                Tel: 020 7234 0570
Pieter Totte                        Non Executive Chairman    www.realgoodfoodplc.com
John Gibson                         Group Managing Director
Lee Camfield                        Group Finance Director

Redleaf Communications                                        Tel: 020 7822 0200
Emma Kane
Duncan McCormick
Samantha Robbins

Shore Capital
Clive Black                                                   Tel: 0151 600 3701
Guy Peters                                                    Tel: 020 7468 7912









CHAIRMAN'S STATEMENT





Introduction



I am pleased to report the Group's Preliminary Results for the twelve months to
31 December 2006. This has been a year of consolidation, following the reverse
acquisition of Napier Brown Foods ("NBF") in September 2005. Each of the
management teams in Sugar, Fish, Baking Ingredients and Bakery have been
concentrating on building a platform for future growth. Overall trading in our
three largest divisions has met our expectations.



The Group achieved a normalised profit (profit before tax, exceptionals and
goodwill amortisation) of #9.5m compared to a normalised trading profit of #7.1m
for the comparable period in 2005. This excellent result came from the full year
contribution from NBF combined with organic growth in all divisions, improving
margins, particularly in Bakery Ingredients, and good cost control across the
Group.



The divisional highlights are:




Sugar                    Sales increasing steadily throughout the year with 
                         improved volumes in retail and special sugars.


Fish                     Increased volumes and good margins at a time of 
                         significant raw material inflation.


Bakery Ingredients       Improved margins and operating efficiency improvements.


Bakery                   Revenues increased by 6% although benefits were more 
                         than offset by cost overruns.







Strategy



Our devolved business unit model has been successfully introduced into Baking
Ingredients and Sugar. The autonomous management teams here have worked well in
2006 and are focussed on meeting the challenges ahead. All of the finance, IT
and commercial functions of Napier Brown Foods have been successfully
transferred to Normanton, the Head Office of the Sugar Division, or to Liverpool
for the Bakery Ingredients Division. Only a small Group Head Office team remains
in St Katharine's Dock, London.



Our focus for 2007 will be to concentrate on developing our assets to take
advantage of the significant commercial opportunities that will arise in the
medium term.





Current Trading



In Sugar, the European Union (EU) market remains competitive with structural
surpluses overhanging the market. The EU Commission has indicated that quota
cuts will be made unless restructuring uptake increases significantly. NBF sales
are ahead of last year and slightly ahead of expectations, whilst margins are
slightly below last year but in line with plan.



Five Star Fish sales are significantly ahead of last year. Raw material
inflation continues in the sector and it is likely that the first half of the
year will again be characterised by work on price increases.



Volumes in Bakery Ingredients are in line with last year, albeit in what is
seasonally a very quiet period for the business.



After a disappointing result in 2006, the Bakery Division has made a
satisfactory start to this year. Volumes are ahead of last year and the cost
reduction programme has given some benefits.



Overall, the Board is satisfied with the start to the current financial year,
although recent interest rate rises will have an impact on financing costs in
the current year. We look forward to further updating shareholders at the Annual
General Meeting in May 2007.





FINANCE DIRECTOR'S REPORT



Revenue



Group sales were up 113% to #250.8m reflecting the full year contribution from
the acquired NBF business and organic growth in both the Fish and Bakery
Divisions.



Strong sales growth was experienced within the Fish and Bakery Divisions up
13.7% and 6.2% respectively; the revenue growth within Fish was aided by the
recovery (via price increases) of raw material cost increases. Within the Sugar
Division proforma sales fell 6% reflecting both the lower price realisations in
the UK market and the reduced sales in Quarter 1 2006. Sales within Bakery
Ingredients, excluding discontinued nut sales, were up 1.6%.



Margins



The Group's gross profit margin reduced by six percentage points to 14.1%
reflecting the full year effect of the acquired NBF business. Operating margins
(before interest, exceptional costs and goodwill amortisation) were also
diluted, from 7.7% to 5.3%, reflecting the lower average margins within the
Sugar Division. However, operating margins in the second half improved over the
first half reflecting the stronger seasonal contribution from the Bakery
Ingredients Division.



Profit Before Tax



Profit before tax, exceptional items and goodwill amortisation has increased by
35% to #9.5m, reflecting the increased contribution from the acquired NBF
business along with the benefits of the Group restructuring programme into
devolved accountability at operating division level. The programme has seen the
closure of the Sugar Division offices in London with activities transferred to
our Normanton factory site.



Basic earnings per share in the year were 2.6p (2005: 7.2p loss).



Exceptional Costs



During the year, the Group incurred #1.1m of exceptional costs (2005: #4.3m) due
to the transfer of finance, administration and IT activities for the Sugar
Division from London to Normanton and the completion of the closure of the nut
plant in Runcorn. This sees the conclusion of the restructuring of the Group
following the acquisition in late 2005 of NBF.



Cash Flow and Debt



Net debt at the year end was #56.6m, compared to #59.4m at the end of 2005.
During the year scheduled loan repayments of #3.5m were made, in addition a
further #0.4m was repaid, being the disposal proceeds for the sale of the
remaining Sefcol property.



A 53% increase in EBITDA to #15.2m aided the delivery of a strong cash flow
during the year. Funds from operating activities, after exceptional costs,
generated #12.4m. Interest payments were significantly up at #4.5m, reflecting
the increased debt position in September 2005, whilst tax payments were #0.7m.
Capital expenditure was #2.1m and the sale of the second Sefcol property, as
mentioned above, generated some #0.4m, after disposal costs.



Cash acquisition costs of #2.5m were incurred during the year, reflecting the
final payment of #1.0m to the vendors of Five Star Fish, #0.5m relating to the
final payment for the acquisition of James Budgett Sugars and the final fee
payments in relation to the acquisition of NBF last year, leaving total cash
generation before loan repayments of #3.6m.



Pensions



A subsidiary of the Group, NBF, operates a defined benefit pension scheme. The
scheme is closed with benefits no longer accruing. The IFRS 17 valuation of the
scheme identified a #1,223k deficit as at 31 December 2006, up #72k on the
previous year. During the year the Group contributed #175k to the scheme.








OPERATING COMPANY REVIEWS



Sugar Division


#'000s                                          2006                      2005
                                           12 months                  4 months
Turnover(1)                                  180,053                    61,942
Operating Profit(2)                            7,373                     4,494
Operating Profit %                               4.1                       7.2



(1) Including inter-company trading

(2) Normalised operating profit before exceptional items, goodwill amortisation
and central costs



Napier Brown Foods supplies a range of sugar and dry ingredients to food
manufacturers and packs sugar for retail grocery and foodservice customers from
its facilities at Normanton, near Leeds.



Sales were in line with expectations and ahead of the previous year for the last
four months of last year. During the course of the year, sales grew consistently
quarter by quarter after the difficult beginning to 2006. Volumes gained in
retail and in special sugars, during the second half, contributed to a much
improved performance in that period, with operating margins up 1.1% basis points
in the second half. Increased efficiencies in production have come from the
commissioning of a new Fawema high speed packing line, linked to a
robot-controlled palletiser and shrink wrapper.



Administration costs have been reduced and communication lines radically
shortened by the transfer of all finance, IT and administrative staff to the
site at Normanton.



In July 2006, the new European Union Sugar Regime commenced and this will see a
significant reduction in price and production in the EU from 2009. The slow pace
of reform and subsequent market volatility has affected prices and margins
throughout Europe. Napier Brown has been impacted but the strategic initiatives
undertaken in a number of areas of the business will stand us in good stead for
the future.



As a flexible non-refiner, we believe we will be well placed to take advantage
of the new supply arrangements and provide our customers with high quality
products from a range of sources.





Fish Division


#'000s                                         2006                      2005
                                          12 months                 12 months
Turnover(1)                                  29,075                    25,561
Operating Profit(2)                           4,011                     3,788
Operating Profit %                             13.8                      14.8



(1) Including inter-company trading

(2) Normalised operating profit before exceptional items, goodwill amortisation
and central costs



Five Star Fish is a leading supplier of added-value, prepared frozen fish to the
foodservice sector. It operates from a modern facility on the outskirts of
Grimsby.



Another record year for sales at Five Star Fish saw a 14% increase year on year,
half coming from volume growth and half from price increases. The last year has
seen significant raw material inflation and a tightening of supply, so
considerable effort has been put into recovering these costs in the marketplace.
The reduction in operating profit margin should be seen against this background.
The factory has had to work hard to cope with a more complex range of raw
material supplies.



Sales of added-value products continue to increase within the overall mix as the
margins on commodity lines erode in the face of increases in raw material costs.
Export sales have been particularly strong.



Much effort is being put into creating healthy, quality products for the schools
sector, which is changing radically in the light of the "Jamie Oliver effect".
Five Star Fish is leading the way with reduced frying time products, Omega 3
products and batters that bake rather than fry.



Investments in additional frying and battering facilities, along with new
coating technology, were made during the period. These will allow the business
to move even further into added-value coatings, batters and flavourings.



During the course of the year, John Fenty, part-time Executive Consultant and
former Chairman of the company, indicated his desire to concentrate on other
business commitments in the area and has subsequently resigned his formal
position.





Bakery Ingredients Division


#'000s                                        2006                      2005
                                         12 months                  4 months
Turnover(1)                                 33,183                    15,703
Operating Profit(2)                          3,182                     1,639
Operating Profit %                             9.6                      10.4



(1) Including inter-company trading

(2) Normalised operating profit before exceptional items, goodwill amortisation
and central costs



Renshaw supplies a range of high quality food ingredients primarily to the
bakery sector, comprising craft bakers and major cake manufacturers and also to
grocery retailers. It operates two facilities, one in Liverpool and the other in
Carluke, south-east of Glasgow.



Sales for the year were in line with expectations and were similar to the prior
period last year (4 months September to December), after adjusting for the
discontinued nut activity. On a like for like basis, margins improved during the
year as a result of better raw material purchasing and improvements in
operational efficiencies. The introduction of modern manufacturing technologies
and procedures is taking more time to implement than originally envisaged but
substantial progress has been made during the latter part of 2006 with more to
come in 2007.



Customer service improvements and new product / customer development have been
major focuses during the year and improvements here will stand the business in
good stead for 2007. Developments into other sectors of the food market, beyond
bakery, will be targeted during 2007.



During the period, the closure of the Runcorn nut plant was completed and the
freehold site has subsequently been sold for #0.5m.



The new senior management team has begun well and has been supplemented by
further middle management appointments. The team at Renshaw is now capable of
achieving step function change in performance in this business in the years to
come.





Bakery Division


#'000s                                           2006                      2005
                                            12 months                 12 months
Turnover(1)                                    17,173                    16,196
Operating Profit(2)                                67                       388
Operating Profit %                                0.4                       2.4



(1) Including inter-company trading

(2) Normalised operating profit before exceptional items, goodwill amortisation
and central costs



Haydens Bakeries produces chilled and ambient premium patisserie and dessert
products to retail grocery customers. It operates from a site in Devizes,
Wiltshire.



During the period under review, Haydens' profitability deteriorated in spite of
increased sales, some 6% up on the previous year. This was primarily due to cost
overruns in product launches for both new and existing customers, increased
overheads and a very poor trading performance in the summer. The exceptionally
warm weather gave rise to operational issues at the plant, reduced consumer
demand for bakery products and consequently high wastage levels.



Waitrose remains by some way, the largest customer, selling to both the Bakery
and Chilled Prepared Food departments and providing distribution services. Sales
to Marks and Spencer have consolidated, while progress has been made servicing
their In-store Bakeries with fried products.



During the year a new frying line was commissioned successfully and a second is
on order for delivery in the summer of 2007 to meet increased demand for fried
laminated products.



Phil Wicks, who joined the business in September 2005, has resigned to explore
other career opportunities and Stephen Heslop, Managing Director of Bakery
Ingredients, has been appointed to the newly created position of Managing
Director, Bakery/Ingredients Division and will become responsible for Devizes'
activities as well as Renshaw's activities.



A programme of overhead cost reductions commenced at the beginning of January
2007 with targeted head count reductions in operations and a review of the
senior management team, particularly in the commercial area. Increased emphasis
on yield improvements will be sought but with a more disciplined approach than
has been present in the past.





SUMMARY



A significant year in the development of The Real Good Food Company plc (RGFC)
including:



  * The successful integration of NBF, a substantial acquisition on the
    previous year;
  * Positive outcomes in a volatile sugar market;
  * Good progress in our three major divisions.



RGFC is well on its way to becoming a significant player in the UK food sector.









Pieter Totte

CHAIRMAN

The Real Good Food Company plc






THE REAL GOOD FOOD COMPANY PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
YEAR ENDED 31 DECEMBER 2006


                                               Year ended 31 December 2006               Year ended 31 December 2005
                                                         #'000s                                    #'000s
                                                                                                (As Restated)
                                           Before                                   Before
                                         Goodwill       Goodwill                  Goodwill      Goodwill
                                     Amortisation   Amortisation              Amortisation  Amortisation
                                              and            and                       and           and
                                      Exceptional    Exceptional               Exceptional   Exceptional
                                            Items          Items       Total         Items         Items         Total
                                Notes

TURNOVER
   Continuing operations        2         250,810              -     250,810       116,390             -       116,390
   Discontinued operations                      -              -           -         1,260             -         1,260
                                          250,810              -     250,810       117,650             -       117,650

Cost of sales                            (215,352)             -    (215,352)      (93,378)            -       (93,378)
                                                                  
GROSS PROFIT                               35,458              -      35,458        24,272             -        24,272
   Distribution costs                      (9,143)             -      (9,143)       (6,854)            -        (6,854)
   Administration expenses      3         (12,909)        (4,682)    (17,591)       (8,386)       (3,148)      (11,534)

OPERATING PROFIT                           13,406        (4,682)       8,724         9,032       (3,148)         5,884
   Continuing operations                   13,406        (4,682)       8,724         9,372       (3,148)         6,224
   Discontinued operations                      -              -           -         (340)             -         (340)

EXCEPTIONAL ITEMS
   Reorganisation costs         3               -        (1,117)     (1,117)             -       (3,277)       (3,277)
 Loss on termination of an      3               -              -           -             -       (1,025)       (1,025)
 operation

PROFIT/(LOSS) ON ORDINARY                  13,406        (5,799)       7,607         9,032       (7,450)         1,582
ACTIVITIES BEFORE INTEREST &
TAXATION


   Interest receivable                        300              -         300           209             -           209
   Interest payable                        (4,544)              -     (4,544)       (2,174)             -       (2,152)
Other finance income                          372                        372             -

PROFIT/(LOSS) ON ORDINARY                   9,534        (5,799)       3,735         7,067       (7,450)         (383)
ACTIVITIES BEFORE TAXATION

Taxation                        4          (2,026)              -     (2,026)       (1,871)             -       (1,871)

PROFIT/(LOSS) FOR THE FINANCIAL
YEAR                                        7,508        (5,799)       1,709         5,196       (7,450)       (2,254)

Basic earnings per share (pence)             11.6              -         2.6          16.9             -         (7.2)
Diluted earnings per share (pence)           11.6              -         2.6          16.0             -           n/a






THE REAL GOOD FOOD COMPANY PLC
CONSOLIDATED BALANCE SHEET
31 DECEMBER 2006
 


                                                                        2006               2005
                                                                      #'000s             #'000s
FIXED ASSETS                                                                      (As Restated)
Intangible assets:-
Negative goodwill                                                      (387)              (410)
Positive goodwill                                                     86,218             89,134
Net goodwill                                                          85,831             88,274

Tangible fixed assets                                                 18,754             18,451

                                                                     104,585            107,175

CURRENT ASSETS
Stock                                                                 14,685             14,390
Deferred tax asset                                                         -                253
Debtors                                                               29,224             29,828
Cash at bank and in hand                                              12,412             11,999

                                                                      56,321             56,470

CREDITORS:
Amounts falling due within one year                                 (31,449)           (34,748)

NET CURRENT ASSETS                                                    24,872             21,722

TOTAL ASSETS LESS CURRENT LIABILITIES                                129,457            128,897

CREDITORS:
Amounts falling due after more than one year                        (58,952)           (60,413)

PROVISIONS FOR LIABILITIES
Deferred tax                                                           (826)                  -
Other provisions                                                       (596)              (746)

NET ASSETS EXCLUDING PENSION DEFICIT                                  69,083             67,738

PENSION SCHEME DEFICIT                                                 (856)              (806)

NET ASSETS INCLUDING PENSION DEFICIT                                  68,227             66,932

CAPITAL AND RESERVES
Called up share capital                                                1,297              1,297
Share premium account                                                 68,773             68,773
Other reserves                                                            53                 34
Profit and loss account                                              (1,896)            (3,172)

SHAREHOLDERS FUNDS - ALL EQUITY                                       68,227             66,932








THE REAL GOOD FOOD COMPANY PLC
CONSOLIDATED CASH FLOW STATEMENT
YEAR ENDED 31 DECEMBER 2006


                                                                Notes              2006               2005
                                                                                 #'000s             #'000s

Net cash inflow from
operating activities                                                5            12,438              4,468

Returns on investment and servicing of finance
Interest received                                                                   300                209
Interest element of finance lease repayments                                       (48)               (29)
Interest paid on bank loans, overdrafts and loan stock                          (4,496)            (2,145)
Net cash outflow from returns on investments
and servicing of finance                                                        (4,243)            (1,965)

Taxation paid                                                                     (660)              (482)

Capital expenditure
Purchase of tangible fixed assets                                               (1,928)            (1,172)
Sale of tangible fixed assets                                                       630              2,059
                                                                                (1,298)                887

Acquisitions and disposals                                                      (2,489)           (54,849)

Net cash inflow/(outflow) before use of
liquid resources and financing                                                    3,597           (51,941)

Financing                                                                       (4,169)             62,229

(Decrease)/Increase in cash                                         5             (422)             10,288






THE REAL GOOD FOOD COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2006





1.             BASIS OF PREPARATION





The financial statements have been prepared in accordance with applicable
accounting standards under the historical cost convention.







2.             TURNOVER


A geographical analysis of turnover is given below:                             Year ended         Year ended
                                                                               31 December        31 December
                                                                                      2006               2005
                                                                                    #'000s             #'000s

United Kingdom                                                                     244,434            114,861
Europe                                                                               4,750              2,304
Rest of the World                                                                    1,626                485

                                                                                   250,810            117,650







3.             GOODWILL AMORTISATION AND EXCEPTIONAL ITEMS


                                                                                Year ended         Year ended
                                                                               31 December        31 December
                                                                                      2006               2005
                                                                                    #'000s             #'000s
Exceptional costs*: -
Reorganisation costs                                                                 1,117              3,277
Loss on termination of an operation                                                      -              1,025

                                                                                     1,117              4,302
Other exceptional costs and amortisation:-
Amortisation                                                                         4,682              2,874
Abortive acquisitions**                                                                  -                274

                                                                                     4,682              3,148



* During the year the Company incurred costs in respect of reorganisation costs.
In accordance with FRS 3 'Reporting Financial Performance' these have been
classified as exceptional items after the operating loss and before interest.
These costs were allowed for taxation purposes which resulted in a reduction of
the overall tax charge of #0.3m.



** These costs related to an aborted acquisition and due to their size and
nature are considered by the Directors to be exceptional. However, they do not
fall into the category of exceptional items, as defined by FRS 3 'Reporting
Financial Performance', which must be shown separately in the face of the profit
and loss account. These costs were therefore included within administration
costs.






THE REAL GOOD FOOD COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 DECEMBER 2006
 



4.             TAXATION

                                                                              Year ended          Year ended
                                                                             31 December         31 December
                                                                                    2006                2005
                                                                                  #'000s              #'000s
Analysis of tax charge for the year
Current tax (see note below)
UK Corporation tax at 30%                                                          1,588                  16
Adjustments in respect of prior periods                                            (409)                  94
                                                                                   1,179                 110

Deferred Tax
Deferred Tax on Pension Scheme Liability                                             164                   -
Origination and reversal of timing differences                                       683               1,761

UK corporation tax charge on profits of the year                                   2,026               1,871





Factors affecting tax charge for the year:



The tax assessed for the year is higher than the standard rate of corporation
tax in the UK (30%).  The differences are explained below:-


                                                                              Year ended          Year ended
                                                                             31 December         31 December
                                                                                    2006                2005
                                                                                  #'000s              #'000s
                                                                                               (As Restated)

Profit/(Loss) on ordinary activities before tax                                    3,735               (383)

Profit/(Loss) on ordinary activities multiplied by standard
rate of corporation tax in the UK of 30% (2005 - 30%)                              1,121               (110)

Effects of:
Expenses not deductible for tax purposes                                           1,151                 329
Ineligible depreciation                                                                -                   3
Profit/(Loss) on disposal of ineligible assets                                      (12)                  57
Differences in fixed assets transfer value                                             -               (168)
Capital allowances for the year (in excess)/less than depreciation                 (288)                 367
Income not taxable                                                                  (10)                   -
FRS 17 income adjustments not taxable                                              (164)                   -
Additional deduction for R&D expenditure                                            (14)                (17)
Other short term timing differences                                                (181)                 (6)
Marginal relief                                                                     (11)                (55)
Adjustments to tax in respect of prior periods                                     (409)                  93
Utilisation of tax losses and other deductions                                       (4)               (383)


Current tax charge for the year                                                    1,179                 110








THE REAL GOOD FOOD COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 DECEMBER 2006




5.             RECONCILIATION OF OPERATING PROFIT TO NET CASHFLOW FROM OPERATING
               ACTIVITIES


                                                                                     2006              2005
                                                                                   #'000s            #'000s

Operating profit                                                                    8,724             5,901
Amortisation of goodwill                                                            4,682             2,874
Depreciation                                                                        1,818             1,164
(Profit)/Loss on disposal of fixed assets                                           (175)               475
Exceptional items                                                                 (1,384)           (4,302)
Movement in working capital:
Increase in stocks                                                                  (296)             (157)
(Increase)/Decrease in debtors                                                      (284)             3,215
Decrease in creditors                                                               (647)           (4,702)

Net cash inflow from operating activities                                          12,438             4,468







6.             RECONCILIATION OF NET CASHFLOW TO NET DEBT




                                                                                     2006              2005
                                                                                   #'000s            #'000s

(Decrease)/Increase in cash during the year                                         (422)            10,288
Cash flow from movement in liquid funds                                             4,169          (57,522)

Change in net debt arising from cash flow                                           3,747          (47,234)
Other loan notes & finance leases acquired with subsidiary                              -           (2,774)
New finance leases                                                                  (943)             (375)

Movement in net debt in the year                                                    2,804          (50,383)

Net debt brought forward                                                         (59,390)           (9,007)

Net debt at end of year                                                          (56,586)          (59,390)







7.             ANALYSIS OF NET DEBT





                               At 1 January 2006       Cash Flow Non-cash movements    At 31 December
                                                                                                 2006
                                          #'000s          #'000s             #'000s            #'000s

Cash at bank and in hand                  11,999             413                  -            12,412
Overdraft                                (4,652)           (835)                  -           (5,487)
                                           7,347           (422)                  -             6,925

Bank loan                               (63,535)           3,890                  -          (59,645)
Loan notes                               (2,774)               -                  -           (2,774)
Hire purchase                              (428)             279              (943)           (1,092)
                                        (59,390)           3,747              (943)          (56,586)








THE REAL GOOD FOOD COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 DECEMBER 2006




8.                   DIVISIONAL INFORMATION


                                         Operating Divisions
                              Sugar        Fish        Bakery        Bakery         Head  Consolidation          Total
                                                  Ingredients                     Office    adjustments

               Turnover     180,053      29,075        33,183        17,173            -        (8,674)        250,810

          Cost of sales   (162,045)    (22,975)      (25,558)      (13,443)            -          8,669      (215,352)

           Gross Margin      18,008       6,100         7,625         3,730            -            (5)         35,458

     Distribution costs     (6,389)       (785)       (1,640)         (329)            -              -        (9,143)
   Administration costs     (4,246)     (1,304)       (2,803)       (3,334)      (1,296)             74       (12,909)

Normalised Profit/(loss)      7,373       4,011         3,182            67      (1,296)             69         13,406
  Goodwill amortisation                                                                                        (4,682)
      Exceptional costs                                                                                        (1,117)

Earnings before interest                                                                                        7,607
                   & tax
                Interest                                                                                        (3,872)
                     Tax                                                                                        (2,026)
        Profit after tax                                                                                          1,709






9.             DISTRIBUTION OF THE ANNUAL REPORT AND ACCOUNTS TO SHAREHOLDERS





The announcement set out above does not constitute a full financial statement of
the company's affairs for the year ended 31 December 2006. The Company's
auditors have reported on the full accounts of the said years and have
accompanied them with an unqualified report. The accounts have yet to be
delivered to the Registrar of Companies.



This annual report and accounts will be posted to all shareholders of the
Company, and will be available on our web site www.realgoodfoodplc.com and for
inspection by the public at the registered office of the Company during normal
business hours on any weekday. Further copies will be available on request from
The Real Good Food Company plc, International House, 1 St Katharine's Way,
London E1W 1XB.








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

FR JFMBTMMMTTAR

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