Six mths results to 30.11.03
27 Février 2004 - 3:55PM
UK Regulatory
RNS Number:9275V
Real Good Food Company Plc (The)
27 February 2004
For immediate release
27th February 2004
The Real Good Food Company Plc
("Real Good Food" or "the Company")
Results for the six months ended 30th November 2003
Chairman's Statement
These results are required to be announced by the AIMRules as they cover the
six-month period following the reporting date (31st May, 2003) of the financial
information included in the Company's Admission document. The Company's year-end
remains 31st August, consequently these results include only three months of
trading of the new financial year.
The results reflect a period of transition for your Company, following the
acquisition of Haydens Bakeries, Eurofoods/CoolFresh and Cakes.co.uk (trading as
Seriously Scrumptious) in July 2003 and thefigures now being reported reflect
their results since that date. Following their acquisition, the trading
operations of the acquired businesses were hived up into the Company in August
2003.
The Company was admitted to trading on the AlternativeInvestment Market of the
London Stock Exchange on 29th September 2003 ("Admission").
In the two months following Admission the board carried out a strategic review
of the group's customer base, product ranges and operating costs. As a result,
certain cost savings have already been achieved, with more expected in the long
term, as the efficiency of the operating facilities is further improved. The
Board expects that these improvements will have a positive impact on future
margins. Furthermore, the capital expenditure programme has now been finalised
and will commence in the spring of 2004.
The results for the period under review show a loss after taxation of #541,000
(after #38,000 of expenses relating to Admission) on a turnover of #10.23
million, giving a basic loss per share of 12.11p. In the corresponding period in
2002 the businesses on a pro-forma basis recorded an unaudited loss after
taxation of #832,000 on a turnover of #9.09 million.
In December 2003, the Company announced the terms of a proposed placing to raise
up to #10 million before expenses, which was completed in January of this year.
At that time, I reported on the performance of the three operating divisions and
I can now update you as to progress since that date.
Haydens Bakeries
Sales to our major customers, Waitrose and Marks & Spencers, were ahead of the
board's expectations in the weeks leading up to Christmas, with a record level
being achieved in the last full week before the holiday period. Since the start
of the year the board has taken steps to bring labour costs in line with
expected sales volumes and significant progress has been made in raw material
control.
The outlook for volumes in the medium term is very positive as specific
developments with our largest customers are expected to come on stream in the
spring and summer of this year. In addition, capital expenditure budgeted for
the first quarter of 2004 is expected to improve operating margins further.
Eurofoods/Cool Fresh
While sales to our largest customer Caffe Nero are in line with management's
expectations, Eurofoods has agreed to terminate a supply contract 3 months ahead
of its planned termination date in order to replace those sales with sustainable
higher margin business, which has now started to flow through. In addition,
earlier this month, new supply arrangements were agreed which are expected to
generate annualised sales of #1 million.
I am also pleased to announce the appointment of an experienced managing
director to this division who, while progressing with the cost control programme
initiated by the board since the acquisition in July 2003, has generated a
number of new business opportunities already.
Seriously Scrumptious
Following the closure of the old sites in Glastonbury and the commissioning of
the new factory nearby, the board has focused on rationalising the customer base
and the product range of this division. This has now been completed and
management changes have been implemented. The new team is now refocusing the
business and workforce towards those product ranges that generate the highest
margins.
The directors anticipate receiving technical approval from the British Retail
Consortium in April2004, which is expected to lead to, increased sales from the
group's customer base and provide cross-selling opportunities throughout the
group.
Group Developments
The Directors have also identified certain acquisition opportunities, which are
under active consideration and I look forward to updating you as to the
Company's progress in the coming months.
Pieter Totte
Chairman
27th February 2004
Profit and loss account
For the six months ended 30th November, 2003
6 months to
November 2003
(unaudited)
#'000
Turnover 10,228
Cost of sales (8,112)
---------
Gross profit 2,116
Selling & Distribution Expenses (931)
Administrative Expenses (1,693)
---------
Operating loss (508)
Interest receivable 3
Interest payable (36)
---------
Loss before taxation (541)
Taxation -
---------
Loss for the period (541)
=========
Basic loss per share (pence) 12.11
=========
Consolidated Balance Sheet
As at 30th November 2003
30th November,
2003
(Unaudited)
#'000
Fixed assets
Intangible assets 617
Tangible assets 3,193
---------
3,810
Current assets
Stock 648
Debtors 3,350
Cash at bank and in hand 783
---------
4,781
Creditors: amounts falling due within one year (6,063)
---------
Net current liabilities (1,282)
---------
Total assets less current liabilities 2,528
Creditors - amounts falling due after more than one
year (1,461)
---------
Net assets 2,067
=========
Capital and reserves
Called up share capital 105
Share premium account 2,505
Profit and loss account (543)
---------
Shareholders funds 2,067
=========
Consolidated cash flow statement
For the six months ended 30th November, 2003
Note 6 months to
30th November,
2003
(Unaudited)
#'000
Net cash outflow from operating
activities A (419)
Returns on investments and servicing of finance
Interest paid (36)
Interest received 3
---------
Cash outflow from returns on
investments and servicing of finance (33)
Capital expenditure and financial investment
Purchase of intangible fixed assets (12)
Purchase of tangible fixed assets (685)
---------
Net cash outflow from capital
expenditure and financial investments (697)
---------
Acquisitions and disposals
Purchase of subsidiary undertaking (928)
Cash received with acquisition (539)
---------
Net cash inflow from acquisitions and
disposals (1,467)
---------
Cash outflow before financing (2,616)
---------
Financing
Issue of ordinary share capital 2,613
---------
Cash inflow from financing 2,613
---------
Decrease in cash B (3)
=========
a. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING
ACTIVITIES
30th November
2003
(Unaudited)
#'000
Operating loss (510)
Goodwill amortisation 32
Increase in stock (166)
Increase in debtors (505)
Increase in creditors 730
----------
Net cash outflow from operating activities (419)
==========
B ANALYSIS OF NET DEBT
At 31st May Increase in Cash Flow At 30th
debt November
2003 2003
#'000 #'000 #'000 #'000
Cash at bank 13 - 770 783
Overdraft - - (773) (773)
----------- --------------- ----------- -----------
--- --- ---
13 - (3) 10
Hire purchase - (16) - (16)
----------- --------------- ----------- -----------
13 (16) (3) (6)
=========== =============== =========== ===========
Notes to the Results
1. RESULTS
These results do not constitute statutory accounts within the meaning of Section
240 of the Companies Act 1985.
2. DIVIDENDS
The directors are not declaring a dividend for the six months ended 30th
November 2003.
3. LOSS PER SHARE
The basic loss per share is based on the retained loss for the six months
divided by the weighted average number of shares in issue throughout the six
months ended 30th November 2003 of 4,465,938
4.COPIES OF RESULTS
Copies of the Results will be available to members of the public from the
Company's registered office, Hopton Industrial Estate, London Road, Devizes,
Wiltshire SN10 2EU.
Enquiries
The Real Good Food Company
Pieter Totte Tel: 01428 644099
John East & Partners Limited
John East Tel: 020 7628 2200
This information is provided by RNS
The company news service from the London Stock Exchange
END
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