Replacement-Trading Statement Correction (6469W)
01 Février 2012 - 7:00PM
UK Regulatory
TIDMRGD
RNS Number : 6469W
Real Good Food Company Plc (The)
01 February 2012
The following amendment has been made to the announcement
released on 1 February 2012 at 07:00 under RNS No 5460W. The
increase in CPBT in 2011 over 2010 was 148%, not 240% as previously
announced. The reported figures for CPBT were correct and all other
details remain unchanged. The full amended text is shown below.
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 dairy ingredients (Garretts), supplies
bakery ingredients (Renshaw), jam and bakery ingredients (R&W
Scott) and manufactures patisserie and desserts (Haydens
Bakery)
Having completed the second interim period (1 July to 31
December 2011), the Group can report CPBT at GBP5.7M for the year
as a whole in line with market expectations and up significantly,
148%, on last year (2010: GBP2.3M). EBITDA at GBP9.1M for the year
as a whole, was also up significantly by 62% on the prior year
(2010: GBP5.6M). This included a strong second half performance
with EBITDA of GBP6.4M, an increase of 28% over the comparable
period (2010: GBP5M) and continuing the positive trend reported for
the first half of 2011. Sales growth and a focus on value added
activities were the key drivers behind this improvement.
The key trading divisions of Napier Brown, Garretts and Renshaw
all increased their EBITDA performance year on year. Haydens and
the newly formed R&W Scott were affected by increased commodity
costs that weren't recovered in pricing until late in the year.
Overall, the Net Debt / EBITDA ratio has improved significantly,
down from 4.0 at 31 December 2010 to 2.8 at 31 December 2011.
Increased commodity costs during the year have pushed up working
capital levels but, as previously forecast, these have now eased
with the year closing at GBP37.0M, down from GBP39.7M at June 2011.
This is reflected, along with the benefit of higher cash generation
in the second half, in a lower Net Debt level of GBP25.8M, down
from GBP31.9M at June 2011.
Divisional Updates
Renshaw enjoyed another strong growth period with Renshaw
branded products now in most major retailers. Rollout will continue
during 2012, both in the UK and internationally. Retailers, with
supporting media coverage, are maintaining a focus on cake
decorating and home baking which is bringing new consumers into the
category and leading to greater prominence in store and new
listings for Renshaw products. A focus on delivering operational
improvements will be key in the coming months to enable the
business to cope with increasing demand and to improve
efficiencies.
We have re-established R&W Scott (based at Carluke and
previously a part of Renshaw) as a separate trading division in
order to bring more focus to the Chocolate Coatings, Jams and
Blends range. Brand development and improved product offerings are
key in delivering growth and reducing exposure to commodity
movements.
Napier Brown has been successful in extending its Sugar supply
base, underpinning its growth plans. The experience gained in
supplying these sugars is invaluable as a point of difference with
customers looking for options outside of the traditional beet
refiners. Investment in sugar handling systems is planned to allow
sugar from a variety of sources to be imported, handled and
delivered cost effectively. We are hopeful that the revitalisation
of the Whitworths retail brand will start to bear fruit as a number
of new listings have been gained for new products and packs in
2012.
Garretts has made significant progress in 2011 remaining strong
in the ice cream sector and growing in the food manufacturing
sectors with new cheese and cultured products complementing the
existing range. Garretts has become the sole distributor for
Friesland Campina sweet condensed milk in the UK and Ireland; the
latest example of building strategic relationships by supplying
outstanding customer service and technical assurance and offering
added value to customers. Garretts is increasing its supplier base
in the UK, Ireland and in particular Eastern Europe to ensure
supply lines and help manage risk within the volatile Dairy
markets.
Haydens, after a period of difficult trading, ended the year
strongly with a record sales month and a Christmas period
considerably up year-on-year, demonstrating the continued appetite
in the market for its hand crafted bakery and chilled value added
products.
Phase I of the site modernisation was completed with the opening
of the new distribution facility in May 2011, improving service
performance and creating space in the factory for its redevelopment
which is, however, now starting six months later than planned.
Remedial action to reduce direct costs has been taken with major
changes implemented to shift patterns and further production
efficiencies are planned at the start of Q2 2012 with the
introduction of blast freezing and chilling equipment in the
manufacturing process.
This should have a major impact both on material and labour
efficiencies on short manufacturing runs as well as providing
additional capacity to support growth.
The Group will be reporting its second unaudited interim results
for the six months to 31 December 2011 on 20 March 2012.
Pieter Totte, Executive Chairman, comments:
"We are now seeing major benefits coming through from our
dual-track programme of adjusting to the structural change
affecting our biggest business, Sugar, and implementing strategic
initiatives across all our other businesses. We are focused on
creating solid sustainable profitability based on brand
development, growth and risk management.
I am extremely pleased that the progress we have made is
reflected in a significant improvement in our financial performance
during 2011. With trading starting positively in January, and
divisional management achieving further progress in their
improvement programmes, I am confident in meeting our expectations
for 2012."
31 January 2012
ENQUIRIES:
The Real Good Food Company plc Tel: 0151 706 8200
Pieter Totte, Chairman
Mike McDonough, Group Finance Director
Shore Capital Tel: 020 7408 4090
Stephane Auton
College Hill Tel: 020 7457 2020
Mark Garraway
Helen Tarbet
This information is provided by RNS
The company news service from the London Stock Exchange
END
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