RGD.L Share News (RGD)

(ShareCast News) - Real Good Food revealed that it is planning on paying a first dividend next year and that trading at its bakery and cake decorating businesses has been satisfactory.On the day of the AIM-listed food manufacturing company's annual shareholder meeting, executive chairman Pieter Totté said as the business was cash generative and has "significant cash resources" on the balance sheet after repaying most of its debt thanks to the £44.4m sale of its Napier Brown sugar business, the primary objective is to strengthen its positions in its 'three pillars' through organic growth, targeted investment and bolt-on acquisitions.Alongside this, the company has applied to complete a capital reduction by the end of the calendar year after which it expects to declare an interim dividend "shortly thereafter" and intends to pay a final dividend following the announcement of its 2017 full year results, next August.Totte said he was satisfied with overall group trading during the first four months of the new financial year and confident about meeting full year market expectations."Order intake is strong, particularly in our Premium Bakery business which is showing double digit percentage, like for like, revenue growth when compared with the corresponding period last year," he said."Our Cake Decorating business also has good order visibility meaning we look forward to the key autumn and Christmas season with confidence."Research firm Hardman & Co said there is turnaround potential at the two 'pillars' which are trading just above breakeven as they increasingly focus on value-added clients/routes to market - "but progress has been slow" and the last year "has seen frustrations which have weighed disproportionately". Hardman forecasts a 0.2p total dividend in the current year on earnings per share of 2.99p up from 2.01p last time.