Real Good Food Company Plc (The) Trading Update (3806A)

TIDMRGD

RNS Number : 3806A

Real Good Food Company Plc (The)

20 March 2013

The Real Good Food Company plc (AIM: RGD)

Trading Update

The Real Good Food Company plc ("the Group" or "RGFC"), the diversified food group, 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).

As promised in its 31 January update, the Group is commenting further on its trading position for the 12 months ending 31 March 2013.

Following the difficult October to December quarter (Q3), the months of January to March 2013 (Q4) have been encouraging. In Q4, year-on-year, the group has seen a large positive swing in EBITDA, due to a stronger sugar trading quarter, combined with the turnarounds achieved at Haydens and R&W Scott, as well as improved trading in Renshaw.

EBITDA

The Group is forecasting an EBITDA in the region of GBP10.5 million for the 12 months to 31 March 2013, which would represent a significant increase of approximately 24% over the corresponding 12 months to 31 March 2012 of GBP8.5 million.

Net Debt

The Net Debt position at the end of March is expected to be in the region of GBP27 million(GBP17.8 million of which is current), which would represent a significant reduction on the last reported figure for 30 September 2012 of GBP32.1 million and a material improvement, i.e. reduction, in the EBITDA to Net Debt ratio from 3.3 for the 12 months to 31 March 2012 to 2.6 for the 12 months to 31 March 2013, based on the above figures. GBP17.8 million of the Net Debt is current, primarily Invoice discounting and Stock financing, with the balance of GBP9.2 million being repayable over the following five years.

Quarter 4

The Group's current trading levels are healthy, driven by improvements across the five business units and turnover in the quarter is expected to be around GBP65 million, compared to GBP56 million in Q4 2012. EBITDA in Q4 is expected to be GBP3.9 million, compared to EBITDA for Q4 2012 of GBP0.1 million, with all businesses making a contribution to this improvement.

Funding

As previously reported we are now operating with our new five year term financing arrangement with PNC Financial Services UK Ltd, extending the successful partnership we have enjoyed since 2008. The terms are improved, with overall facilities increased by 25% to GBP50 million, increasing headroom accordingly and providing the capacity we need to support our growth plans. We are also pleased to confirm that Lloyds TSB is providing all our day to day clearing and ancillary facilities. In a difficult market the board is extremely pleased the confidence this demonstrates in our business.

Pieter Totté, Executive Chairman, states:

"As I commented in January, the changes we have made in the Group have produced positive results and these are now beginning to show through, as demonstrated by our Q4 results. In line with the rest of the food sector, I believe that 2013 will be a challenging year, but I am confident that we are in a strong position to achieve our goals for this year and remain on course to achieve my longer term vision for the Group."

20 March 2013

The Group intends to release its preliminary results for the 12 months ending 31 March 2013 in late June 2013, with full accounts being published in mid-July.

ENQUIRIES:

 
 The Real Good Food Company 
 Pieter Totté, Chairman                  Tel: 020 3056 1516 
 Andrew Brown, Marketing Director             Tel: 020 3056 1516 
  David Newman, Group Financial Controller    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

TSTUKUNROSAOAAR

Real Good Food (LSE:RGD)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024