RGD.L Regulatory News (RGD)

12 Jul 2006 07:00

Real Good Food Company Plc (The)12 July 2006 12 July 2006 The Real Good Food Company Plc ("the Company" or "RGFC")Trading Update The Real Good Food Company Plc (AIM: RGD), the food manufacturing group inambient, chilled and frozen products, is today providing the following tradingupdate prior to entering its close period for the six months to 30 June 2006. At the time of our Annual General Meeting on 24 May 2006, we indicated thatvolumes in Napier Brown Foods, Sugar division, were approaching 2005 levels. Weare pleased to report that this trend has continued, and sales in June 2006exceeded those for the same month last year. The outlook for the remainder ofthe year is in line with our expectations; volumes are returning to historiclevels and margins are in line with our forecasts. Increased sales have comefrom new wins in the retail and delivered wholesale sectors. The Fish division, Five Star, a leading supplier of added value battered /breaded frozen fish to the foodservice sector, has had an encouraging first halfof the year with volumes and selling prices ahead of plan and some 14% abovelast year. Some of this has been due to raw material inflation but volumes are9% up. Our view remains that Five Star Fish will achieve another record yearboth in terms of revenue and profit growth. The new team at Renshaw, the Bakery Ingredients division, has made a significantimpact. Business lost in 2005 has been regained and factory efficiencies areimproving. Sales for the first half are broadly in line with 2005, afteradjusting for the closure of our nuts activity, and margins are slightly aheadof last year on a like for like basis. Plans are in place to handle theexpected second half up-lift in volumes. In the Bakery division, Hayden's Bakeries, sales volumes are 5% ahead of lastyear. Additional volumes have been secured from Marks & Spencer and new lineswith two new retail customers have been introduced in the first six months ofthe year. Progress to date has been slower than we expected in improving thecost base, but following investment we expect improvements in the second half. The Group now enters its important summer and Christmas trading periods withsettled, devolved management teams focused upon delivering profit growth in thesecond half. The Board remains confident of achieving full year expectationsand looks forward to providing a more detailed update to shareholders when itannounces its interim results in late September. Enquiries to: Pieter Totte / Lee CamfieldReal Good Food Company Plc Tel: 020 7234 0570 Duncan McCormick / Samantha RobbinsRedleaf Communications Tel: 020 7955 1410 Guy Peters / Clive BlackShore Capital Tel: 020 7408 4090 Notes to Editors: • The Real Good Company Plc is a food Group. It aims to grow both through acquisitions and organically. It acquires underperforming businesses lacking critical mass, product focus and wide ranging retail relationships, and profitable businesses lacking business focus or access to markets • It is listed on AIM (Symbol: RGD) • The Group currently comprises of: - 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; - Hayden's Bakeries: produces chilled and ambient premium patisserie and dessert products to retail grocery customers and Seriously Scrumptious supplies a similar range frozen to foodservice customers; - Renshaw: a leading manufacturer of marzipans, ready to roll icings, baking chocolate and jam, supplying major cake manufacturers, high street bakers and retailers; - Five Star Fish: a supplier of high quality, added-value, prepared frozen fish to the foodservice sector. Further information about the Group is available via its websitewww.realgoodfoodplc.com This information is provided by RNS The company news service from the London Stock Exchange