RGD.L Share News (RGD)

UK bakery, ingredient and sugar group Real Good Food reported a year-on-year rise in both revenue and pre-tax profit in the second half of 2011. Profit for the six month period rose from £3.2m to £4.2m on revenues of £139.3m compared to £109.4m the same period the previous year. Gross profit rose from £14.8m to £20.1m. Profit from continuing operations rose from £2.5m to £3.3m year-on-year. Basic profit per share rose from 3.8p to 5.1p. Overall, the Net Debt / EBITDA (earnings before interest, tax, depreciation and amortisation) ratio improved significantly, down from 4.0 at 31 December 2010 to 2.8 at December 31st. In a statement the company said: "Increased commodity costs during the year have pushed up working capital levels but, as previously forecast, these have now eased with the year closing at £36.7m, down from £39.7m at June 2011. This is reflected, along with the benefit of higher cash generation in the second half, in a lower net debt level of £25.8m, down from £31.9m at June 2011."We have a clear growth plan. Our strategic focus is on creating solid sustainable profitability based on self-help initiatives including brand development, sales growth and risk management. We are now seeing significant benefits coming through from this. We are also benefitting from our adjustment to the structural development in market supply affecting our biggest business, Sugar, in which we moved from a surplus market to a deficit market, with associated higher prices and the need to secure surety of supply." EBITDA was up 62% to £9.1m (2010: £5.6m). Cash levels fell from £3.2m to £1.5m.The company is in the process of changing its financial year end from the end of December to the end of March. NR