RGD Real Good Food Plc

 

TIDMRGD 
 
RNS Number : 0987Q 
Real Good Food Company Plc (The) 
29 July 2010 
 

The Real Good Food Company plc (AIM: RGD) 
 
Trading Update 
 
The Real Good Food Company plc ("the Group"), owns the largest independent 
non-refining distributor of sugar in Europe (Napier Brown) and is a supplier of 
bakery ingredients and a manufacturer of sweet bakery products for a range of 
major retail customers. 
 
During the six months to 30 June 2010, the Group has seen good trading progress 
within all three of its trading businesses, with a continuation of the strong 
sales growth at Renshaws, the baking ingredients business, and at Hayden's 
Bakeries. Lower prices have impacted overall turnover in the Napier Brown sugar 
business, but a tightening of the supply position is expected to lead to a 
recovery in pricing levels at the start of the new contract season in October. 
 
The Group has maintained its strong focus on cash during the half year, and has 
achieved a GBP1.5m reduction in working capital year on year, while total Group 
borrowings are GBP2.3m (8%) lower than June last year. 
 
As highlighted in the previous trading update on 3 June, the sugar business is 
in a transitional year, following the EU sugar regime changes, and has 
experienced significant pressure on retail prices, where margins have been tight 
during this year. However, the tightening supply position is expected to push 
prices up during the second half of this year. 
 
Renshaws has continued to see growth in volumes and profitability at levels well 
above management expectations, with sales overall up 14% year on year. Key 
features of this improvement have been strong export sales and the growing 
popularity of home baking and sugar craft in the UK. A range of new branded 
products are being launched during the second half of the year, traditionally 
the key sales period for this business. 
 
The newly-assembled management team at Hayden's Bakeries is achieving a 
turn-around of this business, with overall sales up 20% in the half year and 
plans for expansion into additional premises and modernisation of the plant well 
under way. Like Renshaws, the all-important sales period for this business is 
the pre-Christmas final quarter of the year. 
 
Pieter Totté, Executive Chairman, comments: 
 
"I am delighted by the ways in which we are starting to realise the full 
potential of our three businesses. At Renshaws we are successfully exploiting 
the growing market at home and overseas for home baking, as well as building a 
branded business; at Hayden's we are building ever stronger relationships with 
our key customers, and at Napier Brown we are poised to benefit from a 
long-awaited turn-around in the sugar market, following the EU-led cuts in 
supply levels. We look forward to the seasonally-stronger second half with 
considerable confidence." 
 
29 July 2010 
 
The Group expects to announce its interim results for the six months to 30 June 
2010 in mid-September. 
 
ENQUIRIES: 
 
+---------------------------------------+------------------------+ 
| The Real Good Food Company plc        | Tel: 0151 706 8200     | 
+---------------------------------------+------------------------+ 
| Pieter Totté, Chairman                |                        | 
+---------------------------------------+------------------------+ 
| Mike McDonough, Group Finance         |                        | 
| Director                              |                        | 
+---------------------------------------+------------------------+ 
|                                       |                        | 
+---------------------------------------+------------------------+ 
| Shore Capital                         | Tel: 020 7408 4090     | 
+---------------------------------------+------------------------+ 
| Stephane Auton                        |                        | 
+---------------------------------------+------------------------+ 
|                                       |                        | 
+---------------------------------------+------------------------+ 
| College Hill                          | Tel: 020 7457 2020     | 
+---------------------------------------+------------------------+ 
| Gareth David                          |                        | 
+---------------------------------------+------------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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