RGD.L Regulatory News (RGD)

11 Jun 2007 07:00

Real Good Food Company Plc (The)11 June 2007 Date: 11 June 2007 On behalf of: The Real Good Food Company plc ("the Company" or "RGFC) Embargoed until: 0700hrs The Real Good Food Company plc Disposal The Company announces today the disposal ("Disposal") of the assets and goodwillof its Fish Division, Five Star Fish, its added value frozen fish business basedin Grimsby in Lincolnshire, to the privately owned British Seafood Ltd for aninitial consideration of £35 million payable in cash at completion, of which£0.75 million will be held in Escrow for a period of nine months. Completion ofthe Disposal is expected to take place on 12 June 2007. Five Star Fish is a leading supplier of added-value, prepared frozen fish to thefoodservice sector. Real Good Food acquired Five Star Fish in May 2004 fromprivate ownership. Since then the business has grown sales from £19m to inexcess of £30m today. Profits have also increased significantly during thisperiod. The Division has gross assets of £17.6 million, whilst its turnover forthe year to 31 December 2006 was £29.1 million, which equated to approximately11.6% of group turnover. Operating profits of approximately £4 million, equatingto 29.9% of group operating profit. The Company intends to use the net proceeds from the Disposal, which after taxwill be approximately £27 million, to lower the level of group debt. Commenting on the transaction Pieter Totte, Chairman of Real Good Food, said: "I would like to thank Danny Burton and the team at Five Star Fish for theircontribution to the development of The Real Good Food Company over the pastthree years. They will be able, by joining forces with British Seafood, to movemore rapidly towards their visions for the business. Their period under RGFCownership has been mutually beneficial and I believe they will provide BritishSeafood with an ideal platform for its development into the added value seafoodmarketplace in the UK and Ireland." Commenting on partnering British Seafood, Danny Burton, Managing Director ofFive Star Fish, said: "British Seafood is the ideal partner for Five Star Fish to be working with inthe future. We know the team at British Seafood well and have worked with themfor a number of years. Opportunities for the further development of Five StarFish will be increased by this deal". Mark Holyoake, Chief Executive of British Seafood, said: "I would like to welcome Danny and the team at Five Star Fish to the BritishSeafood group of companies. I have admired this business for a number of yearsand feel that under our ownership the business can move to another level. It hasa very exciting future with us." -ends- Enquiries to: Pieter Totte (Chairman) Tel: 020 7234 0570Lee Camfield (Group Finance Director) Tel: 020 7335 2623The Real Good Food Company Guy Peters Tel: 020 7408 4090Shore Capital Samantha Robbins/Duncan McCormick Tel: 020 7822 0200Redleaf Communications Ltd(PR Adviser to the Company) Notes to Editors: • Real Good Food Company Plc is a food Group. It aims to grow both through acquisitions and organically. • It is listed on AIM (Symbol: RGD) • The Group currently comprises of three operation Divisions: o Sugar: incorporating Napier Brown Foods, the UK's largest independent, non-refining, distributor of sugar supplying a range of sugar and dry ingredients to the retail, foodservice and industrial sectors; o Baking Ingredients: incorporating Renshaw, a leading manufacturer of marzipans, ready to roll icings, baking chocolate and jam, supplying major cake manufacturers, high street bakers and retailers; o Bakery: incorporating Hayden's Bakeries and Seriously Scrumptious: produces chilled and ambient premium patisserie and dessert products to retail grocery customers. • Further information about the Group is available via its website: www.realgoodfoodplc.com This information is provided by RNS The company news service from the London Stock Exchange