Real Good Food PLC Trading Update (0501J)
01 Avril 2015 - 8:00AM
UK Regulatory
TIDMRGD
RNS Number : 0501J
Real Good Food PLC
01 April 2015
Real Good Food plc (AIM: RGD)
Trading Update
Real Good Food plc ("Real Good Food" or the "Company" or the
"Group") is a diversified food business, serving a number of market
sectors including retail, manufacturing, wholesale, foodservice and
export. The Company is a major distributor of sugar in the UK
through its Napier Brown subsidiary, and manufactures a wide range
of baking ingredients, jams and sweet bakery products. Its brands
include Whitworths Sugar, Renshaw and R&W Scott.
The well-publicised reductions in EU sugar market prices are
continuing to make trading difficult for both Napier Brown and
Garrett Ingredients. Following a very poor first half, Napier Brown
has returned to profit but, notwithstanding the improved trading in
the second half, has unfortunately remained behind expectations for
the year. The rest of the Group has performed strongly and ahead of
management expectations, with Renshaw and Haydens in particular
performing well. The Group has, in addition, incurred significant
one-off transaction costs as well as legal costs in relation to the
discussions with the UK and EU Competition Authorities.
The Company is in discussions with several parties in relation
to a potential transaction involving Napier Brown. Such a
transaction, if successfully concluded, would enable the Company to
significantly strengthen its balance sheet and focus on more stable
earnings growth going forward. A further update will provided in
due course.
Overall, as a result of the above, the Company expects reported
earnings, prior to any adjustments for one-off costs or
restructuring of the Group, to be significantly behind current
market expectations for the year ending 31 March 2015.
Pieter Totté, Executive Chairman, comments:
"The difficulties in the sugar market have been covered
extensively elsewhere but there are signs that prices have reached
their low point and will recover over the next two years. As stated
above, we are examining options for our sugar business. Elsewhere I
am delighted with performance in two areas in particular: in cake
decoration, Renshaw has performed very strongly and our recent
acquisition of Rainbow Dust Colours is already giving us sales
opportunities both in the UK and across Europe, while in premium
bakery, Haydens has continued to trade well, successfully expanding
its customer base. We plan to give additional focus to these
attractive sectors over the coming year."
ENQUIRIES:
Real Good Food plc
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
(Nomad and Joint Broker)
Stephane Auton
Patrick Castle
Daniel Stewart and Company Plc Tel: 020 7776 6550
(Joint Broker)
Martin Lampshire
Cubitt Consulting Tel: 020 7367 5100
Gareth David
This information is provided by RNS
The company news service from the London Stock Exchange
END
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