RGD.L Regulatory News (RGD)

11 Jul 2007 07:00

Real Good Food Company Plc (The)11 July 2007 Date: 11th July 2007 On behalf of: The Real Good Food Company plc ("the Company" or "RGFC") Embargoed until: 0700hrs The Real Good Food Company plc Pre-Close Statement - Confident current market expectations for full year will be met The Real Good Food Company plc (AIM: RGD), the food manufacturing group,operating in ambient and chilled sectors of the market, is today providing thefollowing trading update, prior to entering a close period, for the six monthsto 30 June 2007. Sales in Napier Brown Foods are significantly ahead of the same period lastyear, particularly within the retail and bulk industrial sectors. Increases indistribution costs and a competitive market have eroded some of this improvementin margin, however, profitability remains ahead of the same period last year.Following the increased activity in the retail sector, further capitalinvestment in packing capacity is planned for the end of the year. The outlookfor the rest of the year is consistent with market expectations. Sales in our Bakery Ingredients Division have been slow albeit in thistraditionally quiet trading period and are slightly down on last year, afteradjusting for the discontinued nut activity. The majority of this shortfallreflects a non recurring sales income in 2006 relating to our supply agreementwith Supercook, as a consequence profitability is behind last year. However,Renshaw's key trading period is the second half and in particular the last fourmonths of the year and we believe that this shortfall will be recovered over theremainder of the year. The Operations team at Renshaw has expended considerableeffort in improving the operating efficiencies at the plant and as our volumesincrease up to the busy Christmas trading period the business is expected tobenefit from these improvements. In the Bakery Division, sales volumes are ahead of last year. Despite some smallprice reductions profitability is marginally ahead of last year. The new Salesand Operations teams, formed in early May, are expected to capitalise upon thenew capacity in ----fried laminated products, which will come on stream inAugust. Initiatives are in place with a new premium retail customer and areexpected to grow volumes and profitability in line with our projections. The sale of Five Star Fish was completed on 12 June 2007 for a grossconsideration of £35m. At that point, sales and profits were ahead ofexpectations. Following the disposal of Five Star Fish, debt levels are significantly loweryear on year, leaving the Group with a clearer focus and in a more robust shape.The Board is confident that current market expectations for the full year willbe met, a more detailed update to shareholders will be provided at the Interimresults presentation in mid September. Having aided the creation of RGFC in 2003 and contributing to its developmentover the last four years, John Gibson, Group Managing Director, has decided tostep down from the Board at the end of September for personal reasons. TheBoard would like to thank John for his contribution and wishes him well for thefuture. Stephen Heslop, 48, currently managing director of our Bakery and BakingIngredients Divisions, is today appointed to the Board of RGFC and will assumeexecutive responsibilities for the Group upon John's departure. In the meantimeJohn and Stephen will work closely together to ensure a smooth transition. Stephen has worked in the food and drink industry for 22 years, includingpositions at Grand Metropolitan, RHM, Homepride Foods (Dalgety) and BeaverlacFine Foods (Hazlewoods). Stephen was appointed Managing Director of theBakery Ingredients Division at RGFC in October 2005 and subsequently appointedManaging Director of both the Bakery and Bakery Ingredients Divisions inFebruary 2007. Commenting on the directorate changes, Chairman Pieter Totte, said: "On behalf of the Board, I would like to thank John for the significantcontribution he has made since Real Good Food Group was founded four years ago.Stephen takes over the reins at an exciting stage in the Group's development -he already knows the Group extremely well and we look forward to working withhim as a member of the Board to drive the growth of the businesses." Stephen has no current directorships. Directorships in the last five years are: Golden West Foods LimitedGolden West Foods NVHeligold SA There is no other information to disclose in accordance with Schedule two (g) ofthe AIM rules Enquiries to: The Real Good Food Company plc Tel: 020 7234 0570Pieter Totte Non Executive Chairman www.realgoodfoodplc.co.ukJohn Gibson Group Managing DirectorLee Camfield Group Finance Director Redleaf Communications Tel: 020 7822 0200 Emma KaneDuncan McCormickSamantha Robbins Shore CapitalClive Black Tel: 0151 600 3701Guy Peters Tel: 020 7468 7912 Notes to Editors: • The Real Good Food Company Plc is a food Group. It aims to grow both through acquisitions and organically. • 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 is available at: www.realgoodfoodplc.com This information is provided by RNS The company news service from the London Stock Exchange