Real Good Food Company Plc (The) Third Quarter Trading Update (7463W)
31 Janvier 2013 - 8:00AM
UK Regulatory
TIDMRGD
RNS Number : 7463W
Real Good Food Company Plc (The)
31 January 2013
The Real Good Food Company plc (AIM: RGD)
Third Quarter Trading Update
The Real Good Food Company plc ("the group" or "RGFC") is a
diversified food group, which owns Napier Brown (Europe's biggest
non-refining sugar distributor) as well as Renshaw and R&W
Scott (bakery ingredients), Garrett Ingredients (dairy ingredients)
and Haydens Bakery (patisserie and desserts).
Third Quarter trading activity - from 1 October to 31 December
2012 - proved to be lower than anticipated, with December proving
particularly challenging, but in line with market conditions in the
food sector generally. Despite this, the medium and long term
strategy for each of the group's divisions remains on track.
Trading during the Fourth Quarter, and in particular the crucial
Easter period, will be critical to the Group's outcome for the
year. The Group overall has performed well, with the key challenge
from current market weakness being the need to accelerate
implementation of strategic development plans.
The Group will provide a further update on trading in mid
March.
Bank Facility
The Group recently announced that it has completed a new five
year GBP50 million bank facility with its current financiers, PNC
Financial Services UK Ltd., ahead of the maturity of its existing
facilities in July 2013. This will enhance the group's ability to
achieve its growth plans in 2013.
Divisional Commentary
Napier Brown's sales following this year's main contract season
have been lower than anticipated. A contract has now been entered
into to acquire a site at Immingham, which will provide an
unparalleled facility for importing sugars cost effectively from
all parts of the world. It is expected that this facility will be
fully operational during the summer of 2013.
Meanwhile, sales to industrial customers have increased and
there has been a successful launch of the added value Whitworths
baking sugars in retail channels.
Garrett has been affected by some short term volatility in dairy
markets, which has reduced volumes, but the business continues to
broaden both its product offering and customer base.
At Renshaw there has been considerable investment in resource to
progress growth plans, particularly online and internationally. An
online web shop www.renshawbaking.com has been launched in the last
few weeks to take advantage of the increasing demand for online
trading. Its scope will be broadened considerably during 2013.
R&W Scott has returned to profit following its separation
into a distinct business unit and has plans in place to develop a
distinct branded offering in both jams and chocolate coatings. A
number of new product launches will take place in April.
Haydens has improved operational labour and material
efficiencies and, after a slow start, profits since October have
met expectations and the current run rate is in line with the
group's budget. Its customer base is extending, with strong growth
planned in foodservice.
Pieter Totté, Executive Chairman, comments:
"The strategic changes that have been made across the group
during the current financial year are now settling down and
producing positive results. There has been a return to
profitability at Haydens and R&W Scott, for example, and
overall profitability is expected to be well ahead of the previous
year.
"Our underlying performance is clearly on an upward curve and
our plans for further growth are underpinned by our partnership
with PNC which, through the recent extension of our banking
facilities, provides us with the financial support we need. I
remain confident that we are on course to achieve my vision for the
business."
31 January 2013
ENQUIRIES:
Real Good Food
Pieter Totté, Chairman Tel: 020 3056 1516
Andrew Brown, Marketing Director Tel: 020 3056 1516
Mike McDonough, Finance Director Tel: 0151 706 8200
Shore Capital & Corporate Tel: 020 7408 4090
Stephane Auton
Patrick Castle
Cubitt Consulting Tel: 020 7367 5100
Gareth David
Cebuan Bliss
This information is provided by RNS
The company news service from the London Stock Exchange
END
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