(Alliance News) - Real Good Food PLC on Friday said A "stellar" performance from its Food Ingredients division and further cost savings more than offset a more difficult trading period for the Cake Decoration unit in the first half of financial 2020.
The Liverpool-based food business also said that current trading remained in line with management expectations for financial 2020 in both divisions, with Food Ingredients business well-placed to capitalise on growing demand and Cake Decoration sales in line with expectations amid an ongoing improvement programme.
For six months to September 30, Real Good Food recorded a pretax loss of GBP2.5 million, sharply narrowed from a GBP9.1 million loss a year ago, mainly due to absence of a GBP6.3 million impairment charge arising from ongoing restructuring of Cake Decoration unit.
Revenue increased 7% year-on-year to GBP32.4 million, mainly as a result of increased trading in the Food Ingredients division.
First half underlying adjusted earnings before interest, taxes, depreciation and amortisation multiplied to GBP2.8 million from GBP929,000 as a result of revenue growth and cost savings.
Mike Holt, non-executive chair, said: "The group has made significant progress over the past six months, especially within Food Ingredients where capacity has doubled and is almost fully utilised with strong order intake and commitments from both new and existing customers. Whilst Cake Decoration has had a difficult period, its new chief executive has launched a major improvement programme focussed on developing strategic partnerships with customers and distributors and driving fundamental operational improvements, the benefits of which are beginning to come through."
"The group now has two core businesses with clear growth strategies, and the leadership and resources to deliver upon them. With a lower cost base in place and the group's improving performance increasingly evident, the board is confident of delivering further progress in the second half and beyond," Holt added.
Real Good Food shares in London were untraded at 6.25 pence each in London on Friday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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