30 Nov 2010 07:00
The Real Good Food Company plc (AIM: RGD)
Trading Update
The Real Good Food Company plc ("the Group"), owns the largest independent non-refining distributor of sugar in Europe (Napier Brown), supplies bakery ingredients (Renshaw) and manufactures patisserie and desserts (Haydens Bakery)
The period since announcement of the Group's interim results on 22 September has seen a substantial improvement in the prospects for the sugar business, together with continued strong sales growth at Renshaw and further trading progress at the bakery business, Haydens.
As previously highlighted, the sugar business is in a transitional year following the EU sugar regime changes. However, having seen significant pressure on prices and margins earlier in the year, it is now seeing strong growth, as a global shortage in sugar supply has driven prices to a 30 year high.
This transformation of the market backdrop, which has been in progress since the beginning of October, will not have a major impact on overall Group results for 2010, but leaves it well positioned for 2011 and for further significant growth in future years.
Renshaw is having an exceptionally good year, with substantial sales growth in both its home and its export markets. The commercial team has been expanded to enable the business to cope with demand from the increasingly popular home baking and sugar craft sectors, online sales are being developed, and plans for the launch of a new branded product range are progressing well.
At Haydens, the new management team continues to implement the turn-around plan for this business, developing sales to its three key customers, and implementing a modernisation and expansion plan that will help achieve the full potential of this business. Sales growth remains on budget in the run-up to the all-important pre-Christmas trading period.
Pieter Totté, Executive Chairman, comments:
"Our three businesses have each made great strides during the year towards achieving our vision for their successful and profitable future growth. Dramatic changes to the world sugar market point to significant prospects at Napier Brown, Renshaw is successfully exploiting new markets while Haydens has secured the space to expand and modernise its business. We anticipate a strong Christmas trading period, are on track to meet forecasts for the current year, and look forward to significant growth in the coming year."
30 November 2010
ENQUIRIES:
The Real Good Food Company plc | Tel: 0151 706 8200 |
Pieter Totté, Chairman | |
Mike McDonough, Group Finance Director | |
Shore Capital | Tel: 020 7408 4090 |
Stephane Auton | |
College Hill | Tel: 020 7457 2020 |
Gareth David |