1 Jun 2015 07:00
Real Good Food plc (AIM: RGD)
Pre-close Trading Update
Real Good Food plc ("Real Good Food" or "the Company") is a diversified food business, serving a number of market sectors including retail, manufacturing, wholesale, foodservice and export. The Company focuses on three main markets: cake decoration (Renshaw, Rainbow Dust Colours), food ingredients (Garrett Ingredients and R&W Scott) and premium bakery (Haydens).
Following completion of the sale of its sugar subsidiary, Napier Brown, Real Good Food is commenting on its overall financial position and the performance of its continuing businesses, prior to the release of its final results in late July.
For the continuing businesses in the financial year ending 31 March 2015, Net Sales are expected to be approximately £104 million and EBITDA in the order of £5.3 million, with continued strong performances at Renshaw and Haydens. Net Debt at the year end, prior to the disposal of Napier Brown, was £30.1 million.
The disposal of Napier Brown generated a consideration of £34 million, plus estimated working capital at completion of £7 million, resulting in a positive cash position at completion of c.£13.7 million. The Group's remaining debt comprises a deferred payment of £2.6 milllion for the Rainbow Dust Colours acquisition and loan notes of £2.8 million, while the Company retains a debt facility of £3.75 million with Lloyds Bank.
Trading of the continuing businesses has continued in a positive fashion in the early weeks of the new financial year and the Board is optimistic about the prospects for the full year.
Chairman Pieter Totté comments;
"Now that the disposal of Napier Brown has been completed, we can focus on developing our other businesses, all of which present growth opportunities. The performance of our cake decorating businesses continues to be encouraging, while Haydens is also trading strongly as it broadens its customer base. Our strong cash position will enable us to pursue capital investment plans to support our growth strategies, and we will also consider complementary acquisitions where appropriate."
1 June 2015
ENQUIRIES:
Real Good Food plc | |
Pieter Totté, Chairman | Tel: 020 3056 1516 |
Andrew Brown, Marketing Director | Tel: 020 3056 1516 |
Mike McDonough, Finance Director | Tel: 0151 706 8200 |
Shore Capital & Corporate (Nomad and Joint Broker) | Tel: 020 7408 4090 |
Stephane Auton Patrick Castle | |
Daniel Stewart and Company Plc (Joint Broker) | Tel: 020 7776 6550 |
Martin Lampshire | |
Cubitt Consulting | Tel: 07774 444162 |
Gareth David |