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Appears the directors have decided to pursue other interests. This must be a takeover target, apart from the debt millstone. Still, look at Thomas cook if you want despair.
Doesn’t seem to be much interest here given the minimal trading status.
I was being diplomatic in stating the consultancy fees!,!
Actually some of those old bod if I remember, weren’t exactly honest and fudged the books a bit.
In 2008, rgfc share price was 2p and finances were tight. A great time to buy. They were never going to go under as they had an exceptional product range and supplied all major retailers and a major retail cake manufacturer. A brilliant performance by an exceptional management team improved the business performance and the share price to 70p. Then Napier Brown was sold and the company was essentially debt free. Then the brilliant Finance Director left as did some of the other more enlightened senior managers. Sad really. Magnificent consultancy fees were paid to deserving Directors, now no longer on the board. A new innovation centre was built and people got fed up with BBC baking programmes. The rest is history. Massive debts, declining performance- look at August’s reports. Back to basics I would say. Renshaw will never disappear. It is well worth a takeover. It takes a concerted effort to take company from the position this one was in in 2014 to where we are today. I can’t profess to be happy with this sad decline.
That is what I was thinking especially with the low value of the sterling. Still, with an enterprise value at £42.4m, is Renshaw worth that amount?
The market capitalisation of this company makes it a good takeover target. Renshaw is a well established company supplying icing and colours into all the major multiples, plus bakery and foodservice outlets. Dr Oetker has deep pockets!
Someones building a stake. Too much debt though for my liking.
Must be an optimist or are you expecting the icing on the cake!
Quite a few 100k buys today. Can’t see the logic given this company’s debt, potential income etc. Someone posted that they expect to see a better second half. Sounds like footy. Just to elucidate, Renshaw always have a better second half as you seem to sell mountains of icing and marzipan in the run up to Xmas = cake. Not much call for marzipan in January.
Used to be debt free and cash rich after the sale of Napier Brown in 2014 and then........."
Everyone is avoiding I suppose.
Not good results.
Revenues down.
Overall loss of £31.6m.
Nebt debt of £35.7m (albeit reduce from £37.8m).
Pension liability of £6.1m
Cash of £2.9m.
Has everyone fallen asleep here or is there no news.
Can't see any tips anywhere. Possible something leaked?
mainly small buys .....been tipped up somewhere?
Still got the ones from the 5p placing last year.....sold the rest. Got some interesting assets albeit plenty of debt.
Not too sure yet. The market cap is just £5m but when you add in the debt it’s enterprise value is approx £35m.
The debt is too high for what the company makes. I’m unsure, but is the pension deficit included in the company debt?
As mentioned by savysage, there are the loan notes that can be converted too.
So RGD is now left with a much smaller group consisting of Brighter foods, Rainbow dust and Renishaws. These businesses are profit making and make approx £1.2m last interim if you take out the exceptional costs. They talk of them doing better in this coming 6 months but revenues were down the last interim and its not like the company is giving regular updates.
Infact, without any updates, can you trust this bod any more than the previous?
Let’s look at some facts:
A recent rns says they have made a settlement regarding a dispute with previous supplier. No figures given. Why? Broadly in line probably means more than the £355k they hid in the interims.
Then there is the fact that the broker has stopped coverage of this share due to previous misinformation by the bod and they have said they will not continue until the bod contact them and clear things up. That was a couple of years ago and yet no coverage has started up again.
Lack of updates
Lack of bod purchases.
All in all, it does not look good. Makes me wonder if there will be more exception costs to come.
On the plus side, there has been some rather large buys and a few sells going through.
If they did some regular updates and got the broker coverage going again I’d be tempted to dip in for 30-50% uplift. But it just seems way to risky atm.
I agree with the £15 mc but we need to remind ourselves that more than 50pc of the £8m raised was needed to pay the second tranche due for the purchase of Brighter Foods - that had an original cost of some £9m, and it is Brighter Foods which is the key driver of the larger investors interest in my view and from this new position will be the core for growing the business. Were there to be a conversion the major investors are unlikely to make a bid for the group but could waive this obligation and may choose to dilute their position by using valuable paper for acquisitions thus building a much larger group.
Trouble is the big investors are able to convert an £8m loan into shares at 5 pence at any time so if the share price rose they would do it sooner rather than later as they'd be daft not to. So the MC of the company is more like £15m rather than £6m. Conversely the Company can repay the loan at any time (if they get the money from somewhere else) to stop the dilution. I think the sale of Patisserie at the beginning of February was timed to coinside with the normal timing of the Trading Update, I am not sure why they would do this. They don't now in theory have to come out with any results until the end of September 2019.
Not too sure why the MC is only £6m. EBITDA at the half way was £900k with both of the continuing operations set to improve in the second half. Loss making businesses have been got rid of and the company looks to grow the two main operations. I accept that there has been a torrid time here but that's passed and there has been support from the larger investors. Is the market missing a trick here and can we see a massive re rate when or before the full year figures are announced. Also there could be a post Christmas update which was at the end of January last year.
nobody's even mentioned the recent directorate change. Some all-stars being appointed now to replace the trash
Real Good Food plc (AIM: RGD) the diversified food business, is pleased to announce the appointment of Steve Dawson as an Independent Non-Executive Director of the Company with immediate effect.
Steve is an experienced specialist in food and beverage brands in the UK and in North America. He is currently the managing director and founder of BrandGrowth LLC ("BrandGrowth") a consultancy focused on advising food and beverage brands on how to achieve their growth strategies. Clients have included First Milk, Burton's Biscuits and Bahlsen.
In August 2016 Steve was appointed as the Interim CEO of Bahlsen North America, Inc. to return the business to profitability. In 2017, the business was stabilized, with operating losses cut by two-thirds. When he left Bahlsen in May 2018, the business was projected to break even and generate double-digit net sales growth by year-end.
Prior to founding BrandGrowth in January 2016, Steve was the CEO of the US division of Walkers Shortbread Inc, the Scottish premium cookie manufacturer from April 2007 to December 2015, a period in which the Walkers brand saw consistent growth in sales and category share. Before that, he was Managing Director of Food From Britain North America for eight years.
Hugh Cawley, Chief Executive Officer, commented:
"On behalf of the Company, I am delighted to welcome Steve to the Board. His extensive experience in both the USA and in food brands will undoubtedly prove to be very useful and will add significant value to the Company. I look forward to working with him as we continue to improve the Group's performance.
"Steve's appointment follows that of Mike Holt in August and means that we now have a better balance of executive, non-executive, and independent non-executive directors, in line with our commitment to improved corporate governance."
Because it is garbage - I hoped for more but I am out for breakeven now.
With results coming not worth being in. I get the strategy but feel like any wins will go to majority shareholders given their 5p options - If I were one of them I would dilute the hell out of this on any good news - of which there is none!
Current: MCAP 7.15m
Debt repaid.
3m back into the Company with shareholder debt repaid too ...
Anyone there to explain why the SP hasn't risen higher ...
thank you,
-- BB --
Real Good Food plc announces that it has completed the sale of Haydens Bakery Limited ("Haydens") to Bakkavor Group plc ("Bakkavor"), for a consideration of £12m, payable by means of a cash payment of £9.6m and the assumption by the buyer of £2.4m of third-party debt.
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The cash funds received will be used to reduce the Group's indebtedness, first settling the lending secured against Haydens' assets (£2.3m), then repaying in full the outstanding term loan with the Group's bankers (£1.3m). The balance of £6.0m will be split between funding the Group's working capital requirements and the potential repayment of external shareholder debt.
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Haydens bakes premium tarts, pies and crumbles, Danish pastries, sweet buns, yum yums and doughnuts and sells principally to major retail customers, and operates a same day consolidation service for one of its major customers. Haydens has been part of Real Good Food plc since the Group's inception in 2003. Given the complementary nature of Haydens' to Bakkavor's core business, the Board believes that, in line with its turnaround plan and focus on its core assets, there is greater value for the Group's shareholders through this disposal to Bakkavor than through continued ownership. Â
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In the Group's financial year ended 31 March 2017, Haydens (excluding the Chantilly Patisserie business which is not a part of this transaction) contributed £31.3m of revenue, and broke even at profit before tax, closing that year with net liabilities of £0.8m. In the past 18 months, there has been significant investment in Haydens and the Group therefore expects to incur an accounting loss for the Group on disposal in the region of £0.5m, and a resulting write down of parent company reserves at 31 March 2018 in the region of £10.2m. The significant investment made in plant and equipment was, however, one of the clear attractions to Bakkavor in its acquisition of Haydens. This disposal of a non-core asset allows management and the Board to focus on the profitable assets elsewhere in the Group.
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That’s best way. Small punts and if one does not do well, not so much of a lose.
Cheers - I have nothing in here I can't afford to lose. Small punt.
I personally do not believe RGD will survive this time sadly to say. I don no think Brexit has helped the situation as well on several fronts. Best of luck to you and I do hope you make some money here or at least recoup what you have put in.