RGD Real Good Food Plc

TIDMRGD

RNS Number : 5378N

Real Good Food PLC

01 February 2016

Strictly Embargoed for 07.00: 1(st) February 2016

Real Good Food plc

("the Group" or "Real Good Food")

Trading Update

Real Good Food plc (AIM:RGD) today gives the following update on trading.

The current financial year has been one of significant transition for the Group as it implements its operational strategy and investment programme across the business and reorganises its reporting structures into three pillar markets of cake decoration, food ingredients and premium bakery.

The business has invested heavily in people, product and brand across all its businesses as it executes its strategy of achieving the optimal operating platform from which to drive significant future growth.

The Board now expects that within the continuing business EBITDA will remain flat year on year, as this investment, when combined with other one-off events within the various business divisions, has led to a short term impact on margins. As a result the Board does not expect the final profit outcome for the financial year ended 31 March 2016 to meet current market expectations.

The Board is confident however that the negative impact on margins is short-term and that the Group is well positioned for future growth following its investment programme.

During the year to date the Group has made financial progress, completing the sale of Napier Brown for a total consideration of GBP44.4m (the "Disposal"), which delivered an exceptional profit in the period of GBP9.4 million. As a result the Board expects total Group reported PBT and EPS at the year-end to be significantly improved when compared to the previous year. In addition net borrowings for the Group will be substantially reduced following the inflow of the GBP44 million from the Disposal, which has enabled the Group to repay all of its PNC borrowings.

This leaves the Group in a strong position to execute its dual investment and acquisition strategy, which is already well underway, leading to future growth and increased financial strength.

A further update will be given as the Company enters its pre-close period ahead of the announcement of preliminary results for the year ended 31 March 2016.

*-ends-*

About Real Good Food plc

Real Good Food plc 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).

ENQUIRIES:

 
 Real Good Food plc 
 Pieter Totté, Executive   Tel: 020 3056 1516 
  Chairman 
 David Newman, Finance          Tel: 020 3506 1516 
  Director 
 Andrew Brown, Marketing        Tel: 020 3056 1517 
  Director 
 
 Shore Capital & Corporate 
  (Nomad and Broker) 
 Stephane Auton                 Tel: 020 7408 4090 
 Patrick Castle 
 
 Belvedere Communications 
  (PR) 
 John West                      Tel: 020 3567 0510 
 Kim van Beeck 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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February 01, 2016 02:00 ET (07:00 GMT)

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