Real Good Food PLC Pre-close Trading Update (6823O)

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RNS Number : 6823O

Real Good Food PLC

01 June 2015

Real Good Food plc (AIM: RGD)

Pre-close Trading Update

Real Good Food plc ("Real Good Food" or "the Company") is a diversified food business, serving a number of market sectors including retail, manufacturing, wholesale, foodservice and export. The Company focuses on three main markets: cake decoration (Renshaw, Rainbow Dust Colours), food ingredients (Garrett Ingredients and R&W Scott) and premium bakery (Haydens).

Following completion of the sale of its sugar subsidiary, Napier Brown, Real Good Food is commenting on its overall financial position and the performance of its continuing businesses, prior to the release of its final results in late July.

For the continuing businesses in the financial year ending 31 March 2015, Net Sales are expected to be approximately GBP104 million and EBITDA in the order of GBP5.3 million, with continued strong performances at Renshaw and Haydens. Net Debt at the year end, prior to the disposal of Napier Brown, was GBP30.1 million.

The disposal of Napier Brown generated a consideration of GBP34 million, plus estimated working capital at completion of GBP7 million, resulting in a positive cash position at completion of c.GBP13.7 million. The Group's remaining debt comprises a deferred payment of GBP2.6 milllion for the Rainbow Dust Colours acquisition and loan notes of GBP2.8 million, while the Company retains a debt facility of GBP3.75 million with Lloyds Bank.

Trading of the continuing businesses has continued in a positive fashion in the early weeks of the new financial year and the Board is optimistic about the prospects for the full year.

Chairman Pieter Totté comments;

"Now that the disposal of Napier Brown has been completed, we can focus on developing our other businesses, all of which present growth opportunities. The performance of our cake decorating businesses continues to be encouraging, while Haydens is also trading strongly as it broadens its customer base. Our strong cash position will enable us to pursue capital investment plans to support our growth strategies, and we will also consider complementary acquisitions where appropriate."

1 June 2015

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: 07774 444162 
 Gareth David

This information is provided by RNS

The company news service from the London Stock Exchange

END

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